2. Crystal Jycel L.

Beron Allowance
A. Monthly Money- 12,000php

Apartment- 3500php

Grocery&Water-2000php

Wifi-500php

Others/Shopee- 1000php

Daily Allowance-5000php

B. 5000/30days=167php

Meal and Snacks- 100/ day

C. Savings/Emergency-67php [Allowance Left]

D. In case I might ran out of money for my daily expenses, I will borrow money from my savings
and will deduct it on my next monthly allowance.
3. Definition if terms: research on the definition of the following terms:

A. Finance

- can be defined as the science and art of managing money.

- Finance consist of concepts to help you organize your decision making process and
quantitative models to help you evaluate alternatives.
- At the personal level, finance is concerned with individuals’ decisions about how much of
their earnings they spend, how much they save, how much they invest their savings.
- In a business context, finance involves the same types of decisions: how firms raise
money from investors, how firms invest money in an attempt to earn profit, and how they
decide whether to reinvest profits in the business or distribute them back to investors.

B. Budgeting

- A budget that is planned or forecast of the anticipated results of a business for a

specified period.
- A process through which corporations spend ridiculous amount of time and effort
compiling semi-random numbers into a spreadsheet then use it for command and control
leadership.
- Budgeting is also coordinating the combined intelligence of an entire organization into a
plan of action based on the past performance and governed by rational judgements of
factors that will influence the course of business in the future.

C. Investments

- Investment is the study of the process of committing funds to one or more assets(the
sacrifice of certain present value for possibly uncertain future value).
- An investment is the current commitment of money or other resources in the expectation
of reaping future benefits.

D. Sources of funds

- Refers to the origin of the particular funds or any other monetary instrument which are
the subject of the transaction between a Financial Institution and the customer.
Alternatively, another definition of SOF is the origin and means of transfer of monies that
are accepted for the account.

E. Forms of organization
Meaning of Business Organisation
Business organisation is defined as an entity which is structured for the purpose of carrying on the
commercial system of enterprise. The organisation is governed under principles and laws governing
contract and exchange of goods and services.
 
Business enterprises generally take one of these three forms:  

 Proprietorship
  Partnership 
 LLP
 
Proprietorship
In the proprietorship form one person is responsible for the entire operation as his own personal property
is entrusted in it. This is usually managed on a day-to-day basis. Majority of the businesses we see
around us are of this category. 
 
Partnership
The second form is Partnership, this needs 2-50 members to pursue the business. Law and accounting
firms, brokerage houses and other advertising agencies are of this form. The business id formed by the
partners themselves, their share of profit varies with individual investment invested in the partnership.
 
Limited Liability Partnership
The third form, which is the LLP form, is a very popular form of business for its inherited advantages from
the partnership and company form of business. The company is legally separated from the individuals
who work here in this organization. They might be the shareholders or the employees who come in legal
contract and thus can be sued and be sued by the company. The big industries and commercial
organizations are limited-liability companies. 
 
Choice of Forms of Business Organization
The four-prior types of business organization are:

A. Sole Proprietorship
B. Partnership
C. Corporation
D. Limited Liability Company
 
1. Sole Proprietorship
The simple and common type of business found is this form of business ownership. Sole
Proprietorship is a business which is owned and managed by a single individual for his own
benefit and gain. The existence of this business depends upon the single owner, the business’s
success and profit depends upon the owner. The business comes to an end after the incapacity
or death of the owner. All the assets and liability of the firm is the sole responsibility of the owner
himself/herself. Even the capital is their personal investment. The profit gained by the owner is
accounted to the owner’s account and so does any loss. It is the owner’s unlimited responsibility
for every transaction. 

2. Partnership 
There are two types of partnership:
General Partnership and Limited Partnership. Normally, both the owners invest their money,
property and workforce in this business. They both are liable for the business debts. Also,
partnerships do not require a formal agreement to start their business. The business agreement
can be verbal or even be implied between the two partners. While Limited Liability Partnership or
LLP requires a formal agreement between the partners. They also are liable to certify with the
state. 

3. Corporation

These are the separate entities from the individuals or the members working here and are
considered as a legal person. The profits generated by a corporation are taxed under “personal
income” of the company. The income distributed to the shareholders are the dividends or the
profits that are taxed as the personal income of the owners. With certain advantages the
corporate structure does face disadvantages as well. The corporate structure faces double
taxation which is one of the complexities of tax structure in this form of business. 
 4. Limited Liability Company (LLC)
LLC provides the owners with limited liability also providing some of the income advantages of a
partnership. Precisely to point, the advantages of partnerships and corporations are mixed in an
LLC. LLC is a very popular form for its advantages. 

Thus, all these were the forms of business organisations, from these an individual chooses one to
suit his venture and interest.
-

F. Role of financial management

- Financial Management means planning, organizing, directing and controlling the

financial activities such as procurement and utilizing of funds of the enterprise. It means
applying general management principles to financial resources of the enterprise.

- Financial Management concerns the financial acquisition, financing and management of

assets with some overall goal in mind.