Business Finance

Lesson 1:
Activity 1:
A. Finance - a term for matters regarding the management, creation, and study of money
and investments.
B. Financial Management - strategic planning, organizing, directing, and controlling of
financial undertakings in an organization or an institute.
C. a senior executive responsible for managing the financial actions of a company.
Activity 2:
Is Financial Management important?
Financial management is surely important for all of the people. If we have a good
Financial management plan then you will spend on what is necessary, save
money for your future and make proper investments. Financial management helps in
knowing which expense to handle first and which one later.
Activity 3:
1. Explain why shareholder wealth maximization should be the overriding
objective of management.
The particular reason for this is the shareholders wealth maximization goal states
that management should seek to maximize the present value of the expected future
returns to the owners of the firm.
2. What other positions can you think of that are related to financial
management?
Activity 4:
Business finance can help entrepreneurs purchase land, capital assets and
other assets without much difficulty and can focus solely on commencing the operations
of the business.

Lesson 2:
Activity 1:
A. Financial management - a practice of handling a company’s finances in a
way that allows it to be successful and compliant with regulations.
B. Private placement -
C. Public offering -
Activity 2:
Is Financial Management important?
Financial management is surely important for all of the people. If we have a good
Financial management plan then you will spend on what is necessary, save
money for your future and make proper investments. Financial management helps in
knowing which expense to handle first and which one later.
Activity 3:
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
Lesson 3:
Activity 1:
A. Accounting - A systematic and comprehensive recording of financial transactions
pertaining to a business.
B. Income Statement - a summary of the revenue and expenses of a business entity
for a specific period of time, such as a month or a year.
C. Cash Flow Statement - reports a company’s cash inflow and outflows for a period
Activity 2:
What is Accounting?
the process of recording financial transactions pertaining to a business. The
accounting process includes summarizing, analyzing, and reporting these transactions
to oversight agencies, regulators, and tax collection entities.
Activity 3:
Lesson 4:
Lesson 5:
Activity 1:
A. The charging interest rate r based on a principal P over T number of years
B. The interest in the first compounding period is added on the principal,
which will then be the basis for the interest to be computed for the next
period.
Activity 2: Not just to understand the difference and similarities between simple interest
and compound interest. But to know also what’s the importance of these.
Lesson 6:
Activity 1:
A. An investment is essentially an asset that is created with the intention of allowing
money to grow.
B. Stocks (Equity)
Bank deposits
Bonds
Mutual funds
Unit investment trust fund
Currencies
Commodities
Real estate
Insurance
Activity 2:
Why do we need to invest?
Investing ensures present and future financial security. It allows you to grow your
wealth and at the same time generate inflation-beating returns. You also benefit from
the power of compounding.
Activity 3: