Business Finance Senior High School Self-Learning Module 1 PDF

Business SENIOR HIGH Finance SCHOOL Self-Learning Finance, Financial Management, Module and its Activities 1 Quarter 3 Business...

Business SENIOR HIGH Finance SCHOOL Self-Learning Finance, Financial Management, Module and its Activities 1 Quarter 3 Business Finance - 12 Quarter 3 – Module 1: Finance, Financial Management, and its Activities First Edition, 2020 Republic Act 8293, Section 176 states that no copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education - Schools Division of Pasig City Development Team of the Self-Learning Module Writer: Wilma G. Ostan Editor (Content/Language): Dennis T. Alex / Edna D. Camarao Reviewer : Edna D. Camarao and Dennis T. Alex Illustrator: Layout Artist: Management Team: Ma. Evalou Concepcion A. Agustin OIC-Schools Division Superintendent Carolina T. Rivera, Ed. D. OIC-Assistant Schools Division Superintendent Victor M. Javena, Ed. D. Chief - School Governance and Operations Division Manuel A. Laguerta, Ed. D. Chief- Curriculum Implementation Division Education Program Supervisors Librada L. Agon EdD (EPP/TLE/TVL/TVE) Liza A. Alvarez (Science/STEM/SSP) Bernard R. Balitao (AP/HUMSS) Joselito E. Calios (English/SPFL/GAS) Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports) Wilma Q. Del Rosario (LRMS/ADM) Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang) Perlita M. Ignacio PhD (EsP) Dulce O. Santos PhD (Kindergarten/MTB-MLE) Teresita P. Tagulao EdD (Mathematics/ABM) Printed in the Philippines by Department of Education – Schools Division of Pasig City Business SENIOR HIGH Finance SCHOOL Self-Learning Module 1 Quarter 3 Finance, Financial Management, and its Activities Introductory Message For the Facilitator: Welcome to the Business Finance Self-Learning Module on Finance, Financial Management, and its Activities! This Self-Learning Module was collaboratively designed, developed and reviewed by educators from the Schools Division Office of Pasig City headed by its Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A. Agustin, in partnership with the City Government of Pasig through its mayor, Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K to 12 Curriculum using the Most Essential Learning Competencies (MELC) in developing this instructional resource. This learning material hopes to engage the learners in guided and independent learning activities at their own pace and time. Further, this also aims to help learners acquire the needed 21st century skills especially the 5 Cs, namely: Communication, Collaboration, Creativity, Critical Thinking, and Character while taking into consideration their needs and circumstances. In addition to the material in the main text, you will also see this box in the body of the module: Notes to the Teacher This contains helpful tips or strategies that will help you in guiding the learners. As a facilitator you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Moreover, you are expected to encourage and assist the learners as they do the tasks included in the module.  For the Learner: Welcome to the Business Finance Self-Learning Module on Finance, Financial Management, and its Activities! This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning material while being an active learner. This module has the following parts and corresponding icons: Expectation - This points to the set of knowledge and skills that you will learn after completing the module. Pretest - This measures your prior knowledge about the lesson at hand. Recap - This part of the module provides a review of concepts and skills that you already know about a previous lesson. Lesson - This section discusses the topic in the module. Activities - This is a set of activities that you need to perform. Wrap-Up - This section summarizes the concepts and application of the lesson. Valuing - This part integrates a desirable moral value in the lesson. Posttest - This measures how much you have learned from the entire module.  EXPECTATIONS At the end of the lesson, you are able to define finance, financial management, and its divisions and activities. PRETEST DIRECTIONS: Read and decide whether the following are Capital or Financing decisions. Write your answer on the space provided. ____________ 1. Red Mobile Company installed additional cell sites in the provinces. ____________ 2. Trinoma decides to borrow a loan from a bank to upgrade its facilities. ____________3. Nikon decides to spend its cash in developing a new camera technology. ____________ 4. Unilever Corporation issues new shares of stocks to have enough cash for plant expansion. ____________ 5. Pharex buys a license to produce and sell a new pill that will cure impotency. RECAP Do you still remember your lessons in Fundamentals of Accounting? How about in Organization and Management? What can you say about Applied Economics? All those subjects are related to Finance.  LESSON Finance in Everyday Life People confront the financial crisis and need to tackle financial risks daily. As it is important to manage risks in business, it is equally important to manage risks in life as wells. Finance. It studies how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets. It is also about money and its management. Financial Management. It involves financial planning, asset management, and fundraising decision to enhance the value of businesses. Deals with decisions that are supposed to maximize the value of shareholders’ wealth. (Cayanan) - These decisions will ultimately affect the market’s perception of the company and influence the share price. - The goal of financial management is to maximize the value of shares of stocks. Financial Management Divisions Treasurer Controller Managing the firm’s cash. For cost accounting, Takes care about the external financial accounting, and tax factors of the firm. record keeping activities. Takes Activities: the internal factors of the firm. 1. acquiring assets Activities: 2. selling stocks 1. economic appraisal 3. insurance matters 2. protection of assets 4. credit and collection 3. evaluation of company 5. determination of employees objective and policies benefits 4. interpretation of the results of operation 5. budgeting  Financial Managers are responsible for the financial health of an organization. They produce financial reports direct investment activities and develop strategies and plans for the long term financial goals of their organization. Managers of a corporation are responsible for making the decisions for the company that would lead towards shareholders’ wealth maximization. Competent managers may have any of the following attributes: 1) visionary 2) decisive 3) people-oriented 4) inspiring 5) innovative 6) respected 7) experienced/seasoned manager ACTIVITIES DIRECTIONS. Analyze the situation and answer the questions on a separate sheet of paper. Situation William and Wendy went to UST together for their college education. After graduation, they were hired by a medium size corporation that wants to bring in new financial managers. William took up Business Administration – Major in Financial Management while Wendy obtained a B.S. Accountancy degree and is now a CPA. Questions: 1. Who is more suited to become a treasurer? Why? 2. How about a controller? Explain your answer.  WRAP-UP What is your understanding of finance? How do you describe a Financial Manager? What are the divisions of Financial Management that help in making the company successful? VALUING What is the significance of understanding Finance? Do you think every individual should know about finance and financial management? Explain your answer. How important are the decisions of a financial manager in running a company? Do you think having a Financial Manager will help a company grow? Why or why not?  POSTTEST DIRECTIONS: Read the questions and encircle your answer. 1 It involves the management of financial resources available to the organization. To operate a business needs of variety of assets either tangible or intangibles. A. Finance B. Economics C. Management D. Business finance 2. It is not enough to have cash and other resources today. Such resources without this if not managed properly can be wiped out. A. Marketing management B. Financial instrument C. Financial market D. Financial management 3. The primary goal of the financial manager is? A. Minimizing risk B. Maximizing wealth C. Maximizing profit D. Minimizing return 4. The wealth of the owners of a corporation is represented by. A. Share value B. Profits C. Earnings per share D. Cash flow 5. Which one is the function of the controller? A. Interpretation of result of operations. B. Banking and foreign exchange problem C. Determination of employee’s benefits D. None of the above  KEY TO CORRECTION result and budgeting. financial statement interpretation of concerns the controller because it 5. Capital 2. Wendy as a A 5. stocks, etc. A 4. 4. Financing acquiring assets, C 3. 3. Financing in external which is D 2. 2. Financing treasurer works more A 1. 1. Capital William – because Pretest Exercises: Posttest REFERENCES Alminar-Mutya, Ruby F. (2015). Basic Business Finance. Manila, Philippines: National Book Store. Domingo, James Cristopher D. (2013). Business Finance. Manila, Philippines: GIC Enterprise & Co. Inc. Business Finance Teachers Guide https://simple.wikipedia.org/wiki/Finance