Module 1

Question 1

 Is usually related to money. According to The American Heritage Desk Dictionary defines finance as the management of money, banking, investments and credit.

Answer 1

Finance

Question 2

why is finance a science?

Answer 2

The use of factual information in the financial decisions and activities

Question 3

why is finance an art?

Answer 3

financial practices do not remain static but become adaptive to the changes in the business environment.

Question 4

 Finance used to be considered an integral part of

Answer 4

economics

Question 5

is concerned with the efficient utilization of scarce resources to satisfy human needs and wants.

Answer 5

Economics

Question 6

Areas of finance

Answer 6

private finance
public finance

Question 7

Is the management of financial resources of private individuals, non-government organizations, and private organizations in accordance with the prescribed financial policy and priority of the person or business organization.

Answer 7

private finance

Question 8

Is the allocation of government income generated from either taxation or borrowings and the government expenditures based on the approved national and local appropriation or budget.

Answer 8

public finance

Question 9

Private finance is subdivided into two:

Answer 9

Personal finance
Business finance

Question 10

It is directed towards the management of personal resources of an individual.

Answer 10

Personal finance

Question 11

is allocated on the individual’s personal needs such as household expenses, education, hospitalization, and acquisition of personal and real properties.

Answer 11

Income

Question 12

Is an area of finance that focuses on the handling and management of financial resources of a business organization.

Answer 12

Business finance

Question 13

Major divisions of business finance

Answer 13

Financial management
Financial investment
Capital market

Question 14

Focusing on capital budgeting decision or investment decision on the acquisition of assets and its corresponding financing scheme.

Answer 14

financial management

Question 15

Is an asset that you put money into with the hope that it will grow into larger sum of money.

Answer 15

Financial investment

Question 16

Is an area of business finance that studies the different financial institutions and their functions that provide assistance to both and private borrowers of funds.

Answer 16

Capital market

Question 17

four functional divisions are involved in business organization

Answer 17

1. Production and operation divisions
2. General administrative or human resource division
3. Finance division
4. Marketing division

Question 18

handles the marketing, production and operation, and human resource function.

Answer 18

operating division

Question 19

The finance division is headed by the

Answer 19

chief finance officer

Question 20

elect the Board of Directors (BOD).

Answer 20

Shareholders

Question 21

is the highest policy making body in a
corporation. The board’s primary responsibility is to ensure that the corporation
is operating to serve the best interest of the stockholders.

Answer 21

Board of Directors

Question 22

responsibilities of the board of directors:

Answer 22

a. Setting policies on investments, capital structure and dividend policies.
b. Approving company’s strategies, goals and budgets.
c. Appointing and removing members of the top management including the
president.
d. Determining top management’s compensation.
e. Approving the information and other disclosures reported in the financial
statements (Cayanan, 2015)

Question 23

b. Performing all areas of management: planning, organizing, staffing, directing
and controlling.

Answer 23

President (Chief Executive Officer)

Question 24

Conducts or directs research that will allow the company identify new
marketing opportunities, e.g. variants of the existing products/services
already offered in the market.

Answer 24

VP for Marketing

Question 25

Ensures production meets customer demands.

Answer 25

VP for Production

Question 26

Assists other departments in hiring employees.

Answer 26

VP for Administration

Question 27

is someone who determines the appropriate capital structure of the company.

Answer 27

VP for Finance/Financial Manager

Question 28

4 types Vice presidents of a business organization

Answer 28

VP for marketing VP for production VP for administration VP for finance

Question 29

refers to how much of your total assets financed by debt and how much is financed by equity.

Answer 29

Capital structure

Question 30

Expected to be the shock observer of the budgetary requests and requirements of other functional units of the business.

Answer 30

Finance Officer

Question 31

What are the functions of Financial Manager?

Answer 31

1. Operating decision 2. Investing Decision 3. Financing decision 4. Dividend Policies

Question 32

Are financial decisions affecting the routine operating activities of a business.

Answer 32

1. Operating decision

Question 33

 Deals with choosing small and large projects with several investment opportunities.

Answer 33

2. Investing Decision

Question 34

 Deals with raising or acquiring of funds from outside source and not from the ordinary results of the business operation

Answer 34

3. Financing decision

Question 35

is part of profits that are available for distribution, to equity shareholders.

Answer 35

 Dividend

Question 36

The Finance manager must decide whether the firm, should distribute all the profits or retain them or distribute a portion and retain the balance.

Answer 36

4. Dividend Policies

Question 37

Qualification of a finance officer

Answer 37

1. Knowledge about Accounting and economics Principles 2. Familiar with the operations of the other functional areas 3. Technically equipped in Finance with professional Judgement 4. With Good Communication 5. With Favorable Relationship with Financial Institutions 6.With Harmonious Relationship with Other units 7. Ethically and Socially Responsible