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CBM 3 AND 113 > Lesson 1 > Flashcards

Lesson 1 Flashcards

1
Q

It refers to the basis of funding for a specific financial
transaction.

A

Finance

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2
Q

It refers to the use of money and credit in
business.

A

Business Finance

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3
Q

It deals with decisions that all business
firms formulate concerning cash flows, including both inflows and outflows.

A

Managerial Finance

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4
Q

It involves employee relations and personnel
decisions, strategic planning, and the overall operations of the
business.

A

Management

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5
Q

It is the management of money and
other valuables that can easily be converted into cash.

A

Financial Management

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6
Q

It refers to functions provided by
organizations that deal with the management of money.

A

Financial Services

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7
Q

It is an entity involved in the business of engaging
with financial and monetary transactions such as deposits, loans, investments, and currency exchange

A

Financial Institution.

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8
Q

It is a trading floor wherein trading of financial
securities, which include stocks and bonds, and precious metals and
derivatives occur at low transaction costs.

A

Financial Markets

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9
Q

It refers to the process of financing funds for profit or monetary
gains.

A

Investment.

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10
Q

It deals with standards and values, with questions of what is right and what is good, what one should to do and not to do, and what is a worthy person or life

A

Ethics.

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11
Q

It is the study of proper business policies and practices
regarding theoretically controversial subjects, including corporate governance, insider trading, bribery, discrimination, corporate social
responsibility, and fiduciary responsibilities.

A

Business Ethics.

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12
Q

It is the full disclosure of data and an account of
an organization’s financial condition, performance, ownership and authority, relationship with shareholders and commitment to business ethics and
morals.

A

Corporate Governance.

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13
Q

is a network of financial
institutions/intermediaries, financial markets,
financial instruments and financial services to
facilitate the transfer of funds.

A

Financial System

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14
Q

The system also consists of lender-savers, and the
ultimate users of funds such as borrower-spenders.

A

Financial System

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15
Q

Funds that flow through financial intermediaries. These institutions were pooling saver funds then invest (or lending) those funds through others that need them.

A

Indirect Finance

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16
Q

Funds that flow directly from lenders to borrowers with the assistance of institutions that provide brokerage services. These borrowers/investors can raise funds directly from lenders in financial markets.

A

Direct Finance

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17
Q

households
business firms
government
foreginers

A

lenders-savers and borrower spenders

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18
Q

combines the services of a
commercial bank and an investment bank,
providing all services from within one entity

A

Universal Banks

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19
Q

is a type of financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

A

Commercial Banks

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20
Q

Top 10 Universal Banks in the Phils.
(based on total assets as of March 2023)

A
  1. BDO Unibank – 3.92T
  2. Land Bank of the Philippines- 3.12T
  3. Bank of the Philippine Islands- 2.66T
  4. Metropolitan Bank and Trust Company- 2.62T
  5. China Banking Corporation – 1.36T
  6. Rizal Commercial Banking Corporation – 1.19T
  7. Philippine National Bank – 1.15T
  8. Development Bank of the Philippines- 975.84B
  9. Union Bank of the Philippines- 968.65B
  10. Security Banking Corporation- 873.96B
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21
Q

List of Commercial Banks in the Phils

A
  1. Asia United Bank Corp.
  2. Bangkok Bank Public Co. Ltd.
  3. Bank of America, N.A.
  4. Bank of China Ltd. – Manila
  5. Bank of Commerce
  6. Bank of Tokyo-Mitsubishi UFJ, Ltd.
  7. BDO Private Bank, Inc.
  8. Chinatrust (Phils.) Commercial Bank Corp.
  9. Citibank, N.A.
    10.JP Morgan Chase Bank, N.A.
    11.Korea Exchange Bank
    12.Maybank Philippines, Inc.
    13.Mega International Commercial Bank Co., Ltd.
    14.Philippine Bank of Communications
    15.Philippine Veterans Bank
    16.Robinsons Bank Corp.
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22
Q

focuses on basic banking services
and are usually community-focused institutions,
smaller than retail and commercial banks.

A

Thrift Banks

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23
Q

under the rules, regulation and
supervision of the BSP, continuously provide credit
and other banking services to farmers, fisher folks
and rural business people to improve the quality of
life in the countryside.

A

Rural Banks

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24
Q

these are completely
government-owned institutions established mainly
to provide medium and long-term credits to the
industrial, agricultural and real estate sectors of the
economy.

A

Specialized Gov’t Banks

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25
Top Thrift Banks or Savings Bank in the Phils. (Based on Total Assets as of March 31, 2023)
1 Philippine Savings Bank (PS Bank) 254.29B 2 Philippine Business Bank 135.63B 3 China Bank Savings 132.68B 4 City Savings 131.92B 5 Bank of Makati 49.75B 6 Sterling Bank 40.18B 7 Producers Savings Bank 31.01B 8 BPI Direct Banko 27.26B 9 First Consolidated 24.85B 10 UCPB Savings 15.92B
26
Top 10 Rural Banks in the Phils. (As of March 31, 2023)
1 BDO Network Bank 91.72B 2 East West Rural Bank 29.14B 3 Card Bank 23.35B 4 Seabank Philippines 13.28B 5 Guagua Rural Bank 7.76B 6 Cebuana Lhuillier 6.53B 7 Card MRI Rizal Bank 6.28B 8 Agribusiness Rural Bank 4.94B 9 BOF Inc. Rural Bank 4.80B 10 FicoBank 4.68B
27
What are the specialized Government Banks
1. Lank Bank of the Philippines 2. Development Bank of the Philippines 3. Al Amanah Islamic Investment Bank of the Phils.
28
was created as a government bank in 1916, but it started getting privatized in 1989 when its stocks were listed in the stock exchange.
Philippine National Bank (PNB)
29
In 1996,_____________ became a private bank when the government’s ownership was reduced to 46%
Philippine National Bank (PNB)
30
In 1999, a group led by _________ acquired 35% of the bank and increased its ownership to 69.32% in 2000. It further increased its ownership to 77.43% in 2005.
Lucio Tan
31
In ______, the government sold all its remaining shares in PNB to the public.
2007
32
Financial Intermediaries "Non-Banks"
 Investment Houses  Financing Companies  Securities Dealers/Brokers Investment Companies  Lending Investor  Pawnshops  Gov’t Non-Bank FI  Venture Capital Corporations  Mutual Building & Loan Assn  Non-stock Savings & Loans
33
is a financial institution that does not have a full banking license and cannot accept deposits from the public.
non-bank financial institution (NBFI)
34
Forms of Business Organizations
Sole proprietorship Partnership Corporation
35
is the simplest business form and is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
Sole proprietorship
36
is defined as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Partnership
37
is a legal entity that is separate and distinct from its owners. It enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.
Corporation
38
Sole Proprietorship Advantages
Advantages Easiest to start Least regulated Single owner keeps all the profits Taxed once as personal income
39
Sole Proprietorship Disadvantages
Disadvantages Limited to life of owner Equity capital limited to owner’s personal wealth Unlimited liability Difficult to sell ownership interest
40
Partnership Advantages
Advantages Two or more owners More capital available Relatively easy to start Income taxed once as personal income
40
Partnership Disadvantages
Disadvantages  Partnership dissolves when one partner dies or wishes to sell  Difficult to transfer ownership  Unlimited liability - General partnership - Limited partnership
41
is a business arrangement by which two or more individuals agree to share in all assets, profits, financial and legal liabilities of a jointly- owned business structure. In fact, any partner may be sued for the entirety of a partnership's business debts.
general partnership
42
is a form of partnership in which some of the partners contribute only financially and are liable only to the extent of the amount of money that they have invested. In a__________- structure, limited partners are shielded to the extent of their investment.
limited partnership
43
Corporation Advantages
Advantages  Limited liability  Unlimited life  Separation of ownership and management  Transfer of ownership is easy  Easier to raise capital
44
Corporation disadvantages
Disadvantages  Separation of ownership and management  Double taxation (income taxed at the corporate rate and then dividends taxed at personal rate)
45
examines the rational justification for our moral judgments; it studies what is morally right or wrong, just or unjust.
Ethics
46
reflects on human beings and their interaction with nature and with other humans, on freedom, on responsibility and on justice.
Ethics
47
is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities
Business ethics
48
Twelve(12) Principles of Business Ethics
 Honesty  Integrity  Keeping your promises  Loyalty  Fairness  Caring  Respect  Obeying the Law  Excellence  Being a Leader  Morale  Accountability
49
is the system of rules, practices, and processes by which a firm is directed and controlled (an art).
corporate governance
50
essentially involves balancing the interests of a company's many stakeholders.
corporate governance
50
Theories Governing Corporate Governance
1. Agency theory 2. Stewardship theory
51
is a principle that is used to explain and resolve issues in the relationship between business principals and their agents.
Agency theory
52
Three conditions to operate relationship (agency theory)
* The agent has the freedom to choose between various course of actions * Actions of agent influence their own growth as well as the principals * Difficult for the principal to observe the actions of the agent as information is not enough
53
Facts of Agency Theory
* The supplier of finance needs a return on their investment * Principal needs assurance that agent does not steal the investment * Principal needs to control the agent
54
 Problems with agency theory
* Utility maximizer (agent will not act in the best interest of the principal * Unequal sharing of information * Element of risk (judge performance based on annual reports )
55
is a theory that managers, left on their own, will act as responsible stewards of the assets they control.
Stewardship theory
56
* Assumes that managers are basically trustworthy and attach significant value to their own personal reputations.
Stewardship theory
57
* Built on premise that directors will fulfill their duties towards the shareholders.
Stewardship theory
58
* Assumes that humans are good and directors are trustworthy.
Stewardship theory
59
Urban Bank President Commits _______-
Suicide
60
may include environmental concerns, where a company believes it should operate with as little impact as possible on the earth.
Stewardship models
61
Customers also like to feel like they’re part of something, and may stay with a stewardship-driven business even if its price for goods or services is higher.
Effects On Clients
62
A solid sense of stewardship improves company morale when the workers feel they’re part of something bigger.
Effects On Employees
63
you do it because it’s enjoyable and interesting.
Intrinsic Motivation
64
you do it because of an outside incentive or pressure to do it, such as a reward (reward-driven behavior) or deadline.
Extrinsic Motivation
65
2 types of motivation
Intrinsic Motivation Extrinsic Motivation
66
2 tpes of effects
Effects On Clients Effects On Employees

CBM 3 AND 113 (9 decks)

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