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Business Finance – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 1: Introduction to Financial Management
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, Division of Palawan
Schools Division Superintendent:
Natividad P. Bayubay, CESO VI
Assistant Schools Division Superintendents:
Loida P. Olavario, Ph.D.
Felix M. Pamaran
Development Team of the Module
Writers: Grace C. Bundal
Content Editor: Mark G. Javillonar
Language Editor: Marianne R. Valdez
Reviewers: Eric N. Quillip
Layout Artist: Mark G. Javillonar
Management Team: Aurelia B. Marquez
Rodgie S. Demalinao
Eric N. Quillip
Printed in the Philippines by ________________________
Department of Education – MIMAROPA Region – Schools Division of Palawan
Office Address:
Telephone:
E-mail Address:
Website:
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

iii
Introductory Message
For the facilitator:
Welcome to the Business Finance – Grade 12 Modular Distance Learning (MDL) SelfLearning Module on the Introduction to Financial Management!
This module was collaboratively designed, developed and reviewed by educators from
public institution to assist you, the teacher or facilitator in helping the learners meet
the standards set by the K to 12 Curriculum Most Essential Learning Competencies
(MELCs) in the “New Normal” situation while overcoming their personal, social, and
economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills 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. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
iv
For the learner:
Welcome to the Business Finance – Grade 12 Modular Distance Learning (MDL) SelfLearning Module on the Introduction to Financial Management!
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 resource while being an active learner.
This module has the following parts and corresponding icons:
What I Need to Know
This will give you an idea of the skills or
competencies you are expected to learn in the
module.
What I Know
This part includes an activity that aims to
check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In
This is a brief drill or review to help you link
the current lesson with the previous one.
What’s New
In this portion, the new lesson will be
introduced to you in various ways; a story, a
song, a poem, a problem opener, an activity
or a situation.
What is It
This section provides a brief discussion of the
lesson. This aims to help you discover and
understand new concepts and skills.
What’s More
This comprises activities for independent
practice to solidify your understanding and
skills of the topic. You may check the answers
to the exercises using the Answer Key at the
end of the module.
What I Have Learned
This
includes
questions
or
blank
sentence/paragraph to be filled in to process
what you learned from the lesson.
What I Can Do
This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
Assessment
This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
v
Additional Activities
In this portion, another activity will be given
to you to enrich your knowledge or skill of the
lesson learned.
Answer Key
This contains answers to all activities in the
module.
At the end of this module you will also find:
References
This is a list of all sources used in developing
this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
vi
What I Need to Know
This module was designed and written with you in mind. It is here to help you master
the roles of Financial Management and familiarize financial institutions, financial
instrument, and financial market. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.
The module is divided into two lessons, namely:
•
•
Lesson 1 – explain the major role of financial management and the different
individuals involved
Lesson 2 – distinguish a financial institution from financial instrument and
financial market
After going through this module, you are expected to:
•
Lesson 1
1. determine the key positions in a corporate organization;
2. differentiate the roles of every key positions in a corporate organization;
and
3. identify the primary activities of the financial manager.
•
Lesson 2
1. define financial markets, financial institutions, and financial
instruments;
2. identify the types of Financial Markets, Financial Institutions and
Financial Instruments; and
3. differentiate a financial institution from financial instrument and
financial market.
1
What I Know
Directions: Write the letter of your answer on a separate sheet of paper.
1. Which of the following requires funds from external sources?
a. Financial markets
c. financial institutions
b. Private placement
d. all of the above
2. Which of the following is the primary goal of financial manager?
a. Minimizing risk
c. maximizing wealth
b. Maximizing risk profit
d. minimizing return
3. Wealth maximization as the goal of the firm implies enhancing the wealth of
____________________.
a. The Board of Director
c. The federal government
b. The firm’s employee
d. the firm’s stockholders
4. Which of the following the Financial Managers should consider when evaluating
decision alternatives or potential actions?
a. only risk
b. only return
c. both risk and return
d. risk, return, and the impact on share price
5. It receives premium payments that are placed in loans or investments to
accumulate funds to cover future benefits.
a. life insurance company
c. saving bank
b. commercial bank
d. credit bank
6. Which of the following is not a financial institution?
a. a pension fund
c. a commercial bank
b. a newspaper publisher
d. an insurance company
7. Which of the following most businesses sell securities in order to raise money?
a. a direct placement
c. a public offering
b. a stock exchange
d. a private placement
8. Which of the following is not a service provided by financial institutions?
a. Buying the business of customer
b. Investing customers saving in stock and bonds
c. Paying savers interest on deposited funds
d. Lending money to customers
2
9. By definition, the money market involves buying and selling of what?
a. Funds that mature in more than one year
b. Flows of funds
c. Stocks and bonds
d. Short-term funds
10. Which of the following is created by a financial relationship between suppliers
and users of short-term funds?
a. financial market
c. stock market
b. money market
d. capita market
11. Long-term debt instruments used by both government and business are known
as what?
a. bonds
c. stocks
b. equities
d. bills
12. It pertains to the money a retired private or government employees receive after
retirement.
a. life insurance company
c. savings bank
b. pension funds
d. credit bank
13. Which of the following is the type of financial intermediary that pools savings of
individuals and makes them available to business and government users?
a. Mutual fund
c. savings bank
b. Savings and loans
d. credit union
14. Which of the following major securities is traded in the capital markets?
a. stocks and bonds
b. bonds and commercial paper
c. commercial paper and treasury bills
d. treasury bills and certificates of deposit
15. The participants in financial transactions are individuals, business, and
government where individuals are considered net _____________ of funds while
businesses are net _____________ of funds.
a. Suppliers; users
c. users; suppliers
b. Purchasers; sellers
d. users; providers
3
Lesson
1
Explain the major role of
financial management and
the different individuals
involved
Every business needs finance to function. Finance is needed to establish a business
to run it to modernize it to expand or diversify. It is required for buying of assets. It
is helpful to managers and potential managers to make sensible investment and
financing decisions.
Financial Management is the efficient and effective management of funds. Since
funds are important to any business whether to start, sustain or expand operation.
What’s In
In the previous lesson, you have learned the meaning and main goal of finance.
Finance is defined of how individuals or business projects, and raise capital to fund
them. Also with the questions of how and why an individual or company acquires
the money needed.
Notes to the Teacher
Begin the lesson by letting the students do Activity No 1. Let the
students answer the given activity which will help them familiarize
roles of financial management and comparison of financial market,
financial institution, and financial instrument.
4
What’s New
Below activity will help you check how much you know about the major role of
financial management and the different individuals involved and the difference of
financial institution from financial instrument and financial market
Activity No 1: Make your time Awesome
Directions: Choose the letter of the best answer and write it on your answer sheet.
1. Which of the following BEST explains financial management?
a. The process of creating a business opportunity
b. Process of creating or seizing an idea and pursuing it regardless of the
resources currently controlled.
c. Deals with decisions to maximize the value of shareholders’ wealth.
d. The capacity for innovation, investment and expansion in new market,
products and techniques.
2. The following statements was provided by the bank to depositor, EXCEPT:
a. Gives the depositors interest on the money deposited to them.
b. Lend money to borrowers for credit
c. Investments are pooled and the funds are invested by professional managers
for a fee.
d. Serve as conduits of investors in buying and selling both government
securities and corporate bonds.
3. Which of the following is the highest policy-making body in a corporation?
a. President
c. Vice-President for Finance
b. Board of Directors
d. Vice-President for Administration
4. Which of the following characterizes the role of VP for Sales and Marketing?
a. Ensuring production meets customer demands.
b. Identifying adequate and competitively priced raw material suppliers
c. Providing assistance in payroll preparation
d. Performing market and competitor analysis
5. The following statements were the functions of Vice-President for Finance,
EXCEPT:
a. Sales and Promotion
b. Raising or providing funds
c. To make use of for the future benefits or advantages
d. The way a business or functions is controlled
5
6. It provides opportunities for big and small investors to invest in financial
instruments which they would not have considered or may have considered but
do not have the time or expertise to do it.
a. Sun Life Prosperity Philippine Stock Index Fund
b. Insular Life
c. Philippine Stock Exchange
d. COL Financial
7. Which of the following is the person who has the money and deposits it in a
savings account?
a. Borrower
c. Banker
b. Depositor
d. Millionaire
8. Which of the following is a type of security that signifies ownership in a
corporation?
a. Bond
c. Non-bank
b. Stocks
d. Bank
9. Which of the following banks cater the needs of multinational companies?
a. Commercial banks
c. Investment banks
b. Universal Banks
d. Thrift banks
10. Which of the following is an example of the long-term debt?
a. Liquidity
c. saving
b. Bond
d. funds
6
What is It
In Activity 1, you were able to give some of the key terms relative to the role of
financial management in the different individuals involved and comparison of
financial markets, financial institution and financial instruments. In this part of the
module, you will find out further about the expected role of financial management in
an organization in order to help improving the profitability of an organization.
The Role of Financial Management in the different individuals
involved.
Financial Management is the handling of all financial matters, including analysis
of financial statements, the evaluation of prospects before investment is actually
started and the raising of capital or funds from various sources.
For every growing economy the position of financial institution is always important.
This begins with the flow of money to the person who has deposited in the bank. It
is beginning with the flow of money with the individual who deposit in the bank. If
you open up bank account, your money earns an interest. The main role of the
financial institution is to act as financial intercessor means to be in the middle, to
be the go between or link between the depositors who have the money and the
borrower who need the money.
Financial Institution
Evaluation of Investment
Financial Institution
Lends Funds
Depositor
1
Borrower
Business
Project
2
3
4
Financial Institution
Pays Interest
Financial Institution
Return of Investment
The Role of Financial Institution in the Money Flow
Key Individual Roles
➢ Depositor- (has the funds) is the person who has the money and deposits it
in a savings account
➢ Borrower - (who needs the funds) is the one who needs the funds and borrow
the funds through a bank. He needs the fund to start a business project or
venture.
7
Key positions in a Corporate Organization
➢ Stockholders- it is a group that holds one or more shares.
➢ Board of Directors- is an elected group of individuals that represent
stakeholder or the highest policy- making body in a corporation.
➢ President- is a leader of a company’s executive group
➢ VP – second command in rank
VP for Marketing-performing market and competition analysis
VP for Finance- raising or providing funds
VP for Operation- formulating daily policies
VP for administration- responsible for management
VP for internal affairs- to assume the duties and responsibilities of the
President in the President’s absence
VP for external affairs-responsible for programs communications
➢ Managers- exercises managerial functions or manage the company
➢ Employees- a person employed
Role of Financial Manager
In the company the financial managers are accountable to an agency in the
company. Financial manager is mainly responsible for determining capital
structure, investment funds, financial control, financial needs and planning.
Notes to the Teacher
The brief discussion above provided enough information for the
students to do the activities on the succeeding pages. Such
activities are designed for individual preparation and lesser teacher
intervention.
8
What’s More
Activity 2: Like to watch the best
Directions: Watch a video clip about primary role of financial manager. Jot down
the primary role of financial manager from a video you’ve watched and answer the
following question.
Video Link: https://youtu.be/pOQUQHZCKIs
1.
What is the primary role of financial manager?
2.
What is the best part of being a financial manager?
3.
How do financial manager affect the firm’s overall strategy?
Rubrics for Activity 2: Like to watch the best
Indicators
Max
Scoring Details
Score
1.
Completeness: Learners responses directly
5
5 - Excellent;
answer each part of questions(s)
4 - Very Good;
3 - Good;
2.
Content: Learners response clearly show
5
2 - Fair;
and understand the lesson content
1- Needs
3.
Analysis: Learners response provides
5
Improvement
analysis to the larger concepts of the lesson.
4.
Writing skills: Learners write clearly, in
5
complete sentences, with minimal errors in
grammar and spelling
9
What I Have Learned
At this point, let us see how much you have gained from the discussions and
activities you have undergone.
Activity 3: Exit slip
Directions: complete the sentence on the Exit Slip (Fisher and Frey, 2004).
1.Write one you learned today………
2.I didn’t understand in…..
3.I enjoyed doing in…..
4.I would like to learn more about ….
5.Please explain more about ….
6.The thing that surprised me the most today was…..
10
What I Can Do
This activity will help you transfer into real-life situations the knowledge and skills
you have learned from this module.
Activity 4: Trace Its Benefits
Directions: How would you relate the role of financial managers, role of financial
market and role of investors?
Role of Investors
Role of Financial Managers
Rubrics for Activity 4: Trace Its Benefits
Indicators
Max
Score
1. Completeness: Learners responses directly
5
answer each part of questions(s)
2. Content: Learners response clearly show
and understand the lesson content
5
3. Analysis: Learners response provides
analysis to the larger concepts of the
lesson.
4. Writing skills: Learners write clearly, in
complete sentences, with minimal errors in
grammar and spelling
5
11
5
Scoring Details
5 - Excellent;
4 - Very Good;
3 - Good;
2 - Fair;
1- Needs
Improvement
Lesson
2
Distinguish a financial
institution from financial
instrument and financial
market
In many parts of the world, financial institutions play a major role in the social and
economic development programs of nations with developing or transitional
economies. Additionally, in some countries, the major financial markets and
economies would not have grown without the significant role that financial
institutions have play. It is therefore important to know the difference of financial
institution from financial instrument and financial market.
What’s In
In the previous lesson, you have learned about the meaning of financial management
and the major role of the financial management and the different individuals involved
financial management and financial managers play a crucial role in making financial
decisions and exercising control over finances in the organization.
Notes to the Teacher
Let the students answer the given activity which will help them
familiarize the difference of financial institution from financial
instrument and financial market.
12
What’s New
Below activity will help you check how much you know about the phases of economic
development and its impact to business environment.
Activity 5: JUMBO/PUZZLE WORD -SEARCH- IDENTIFY
Directions:
1. Look and Circle the PUZZLE words correctly.
2. SEARCH its meaning from the different sources such as dictionary or
books
3. IDENTIFY each word if it is FINANCIAL MARKET, INSTRUMENT OR
INSTITUTION.
R
T
U
A
P
A
R
E
C
T
C
E
U
D
U
E
H
P
U
E
I
R
C
A
P
I
T
A
L
T
N
S
E
B
O
I
D
C
T
A
O
T
O
D
O
K
L
E
A
T
E
A
R
P
I
N
E
V
N
S
I
S
L
A
E
T
D
Y
I
L
H
K
E
E
L
D
U
S
O
A
L
C
E
N
D
B
K
N
D
I
N
O
A
U
N
D
A
N
I
R
A
T
O
G
O
A
L
N
A
O
O
S
IR
E
T
M
O
O
K
B
N
B
O
N
D
M
A
R
K
E
T
S
E
N
U
P
W
E
R
T
Y
I
D
CAPITAL
BANK DEPOSIT
STOCKS
REAL STATE
INSURANCE
CREDIT UNIONS
CASH
BONDS
BOND MARKET
CENTRAL BANK
13
What is It
Financial Market
Financial Market - Organized for vendors and consumers with various types of
funds may make transactions.
Example: Stock Market-regular activities of buying and selling
Bond Market- issue new debt.
Financial institution includes banks and non- banks. These are the commercial
banks, universal banks, investment banks, investment companies, finance
companies, life and nonlife insurance companies, mutual fund companies, and
private equity firms.
➢ Commercial Banks are in particular deposit taking monetary
institutions that extend credit source to the retail and purchaser
market. They address minimum quantity of employee, single area or
small amount volume, generally now not franchised. Also lend the
money of savers/depositors to small and medium enterprises that will
pay them an interest regularly in exchange for the use of their funds.
➢ Universal Banks lend to multinational companies or companies with
global presence and their clientele are mostly the larger corporations.
Example: Allied Bank, China Bank
➢ Investment Banks are known to efficiently raise price range for massive
agencies and governments. There are two functions of Investment
banks. First is primary function that accepts deposit, making advances,
and credit creation. Second is secondary function that purchase of
bonds/shares and to give or accept money. Example: HSBC.
➢ Mutual Funds- owned by investment businesses which allow small
buyers to enjoy the benefits of making an investment in a different
portfolio of securities bought on their behalf through professional
funding manages. When mutual finances use cash from buyers to put
money into newly issued debt or fairness securities, they finance new
investment via firms.
➢ Pension Funds – financial institution or establishments that receive
payments from workers and invest the yield in their behalf.
Financial Instruments are the tools that help business daily operations, and
eventually make it grow.
When a financial instrument is issued, it gives rise to a financial asset on one
hand and a financial liability or equity instrument on the other.
14
Example of financial asset is cash.
Financial Liability is any liability that is a contractual obligation. An Equity
Instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all liabilities.
Example: Ordinary Share Capital
• These are the common examples of Debt and Equity Instruments.
➢ Debt Instrument generally has fixed returns to fixed interest rates.
Examples: Treasury Bonds usually low interest and have very low risk
and Corporate Bonds usually have higher interest rates.
➢ Equity Instruments generally have varied returns based on the
performance of the issuing company. Returns from equity instruments
come from either dividend or stock price appreciation. There are two type
of equity instrument: Preferred Stocks and common Stock
➢ Preferred Stock-if a company were to be liquidated and its assets have to
be distributed, no asset will be distributed to common stockholders have
been given.
➢ Common Stock is the real owners of the company.
Financial Institutions generally provide the Financial Instruments that you ca trade
in Financial Markets.
Notes to the Teacher
The brief discussion above provided enough information for the
students to do the activities on the succeeding pages. Such
activities are designed for individual preparation and lesser teacher
intervention.
15
What’s More
Activity 6: Think Different
Directions: Differentiate Financial Markets, Financial Institutions and Financial
Instruments by describing.
1.
FINANCIAL MARKET
2.
FINANCIAL INSTITUTION
3.
FINANCIAL INSTRUMENT
Rubrics for Activity 3: Think Different
Indicators
Max
Score
1. Completeness: Learners responses directly
5
answer each part of questions(s)
2. Content: Learners response clearly show
and understand the lesson content
5
3. Analysis: Learners response provides
analysis to the larger concepts of the
lesson.
4. Writing skills: Learners write clearly, in
complete sentences, with minimal errors in
grammar and spelling
5
16
5
Scoring Details
5 - Excellent;
4 - Very Good;
3 - Good;
2 - Fair;
1- Needs
Improvement
What I Have Learned
At this point, let us see how much you have gained from the lesson and activities
you have undergone.
Activity 7: True/False
Directions: Determine whether the below statements are true of false. Write your
answer on a separate sheet of paper.
1. The primary role of financial institution is to act as the link between the
depositors who have the money and the borrowers who need the money.
2. Financial instruments are tools help finance manager handle hiss cash, his
short-term operating requirements, and long-term business requirements.
3. Financial markets are the platform where financial instruments are offered,
bought, and sold.
4. Stocks are shares issued by government.
5. Commercial banks are mainly deposit-taking financial institutions that extend
credit to the retail and consumer market.
6. Investment banks are known to successfully raise funds for small corporations
and governments.
7. A financial institutions can be bank on non-bank,
8. Long-term debts are also available to the borrower for his business needs.
9. An example of long-term debt is a bond.
10. Money market instruments are an inexpensive way for government and
financial institutions.
17
What I Can Do
This activity will help you transfer into real-life situations the knowledge and skills
you have gained or learned from this lesson.
Activity 8: CRITICAL THINKING
Directions: Read the scenario below and answer the questions asked on a separate
sheet of paper.
Financial institutions are intermediaries that play a vital role in nation
building. They source of funds for business to engage in projects that are profitable
maximize shareholder wealth, and build communities. Is there a project you have in
mind that is worthwhile, has potential to earn profits, and will benefit your
community in the long-term? List down those projects. What financial institutions
can help you achieve your dream of a sustainable business for your shareholder or
community?
Rubrics: for Activity 4: Critical Thinking
Indicators
Max
Score
1. Completeness: Learners responses directly
5
answer each part of questions(s)
2. Content: Learners response clearly show
and understand the lesson content
5
3. Analysis: Learners response provides
analysis to the larger concepts of the
lesson.
4. Writing skills: Learners write clearly, in
complete sentences, with minimal errors in
grammar and spelling
5
18
5
Scoring Details
5 - Excellent;
4 - Very Good;
3 - Good;
2 - Fair;
1- Needs
Improvement
Assessment
Directions: Write the chosen letter on the space provided before the number.
1. The participants in financial transactions are individuals, business, and
government where individuals are considered net _____________ of funds while
businesses are net _____________ of funds.
a. Suppliers; users
c. users; suppliers
b. Purchasers; sellers
d. users; providers
2. Wealth maximization as the goal of the firm implies enhancing the wealth of
____________________.
a. The Board of Director
c. The federal government
b. The firm’s employee
d. the firm’s stockholders
3. Which of the following requires funds from external sources?
a. Financial markets
c. financial institutions
b. Private placement
d. all of the above
4. It receives premium payments that are placed in loans or investments to
accumulate funds to cover future benefits.
a. life insurance company
c. saving bank
b. commercial bank
d. credit bank
5. It pertains to the money a retired private or government employees receive after
retirement.
a. life insurance company
c. savings bank
b. pension funds
d. credit bank
6. Which of the following is the primary goal of financial manager?
a. Minimizing risk
c. maximizing wealth
b. Maximizing risk profit
d. minimizing return
7. Which of the following most businesses sell securities in order to raise money?
a. a direct placement
c. a public offering
b. a stock exchange
d. a private placement
8. Which of the following is the type of financial intermediary that pools savings of
individuals and makes them available to business and government users?
a. Mutual fund
c. savings bank
b. Savings and loans
d. credit union
19
9. By
a.
b.
c.
d.
definition, the money market involves buying and selling of what?
Funds that mature in more than one year
Flows of funds
Stocks and bonds
Short-term funds
10. Which of the following is created by a financial relationship between suppliers
and users of short-term funds?
a. financial market
c. stock market
b. money market
d. capita market
11. Which of the following is not a service provided by financial institutions?
a. Buying the business of customer
b. Investing customers saving in stock and bonds
c. Paying savers interest on deposited funds
d. Lending money to customers
12. Long-term debt instruments used by both government and business are known
as what?
a. bonds
c. stocks
b. equities
d. bills
13. Which of the following is not a financial institution?
a. a pension fund
c. a commercial bank
b. a newspaper publisher
d. an insurance company
14. Which of the following should the Financial Managers consider when evaluating
decision alternatives or potential actions?
a. only risk
b. only return
c. both risk and return
d. risk, return, and the impact on share price
15. Which of the following major securities is traded in the capital markets?
a. stocks and bonds
b. bonds and commercial paper
c. commercial paper and treasury bills
d. treasury bills and certificates of deposit
20
Additional Activities
Let us reinforce the skills/knowledge that you have gained from this lesson by doing
the next activity.
Activity 5: Mind Map
Directions: List the component of financial system; identify the types of financial
market, instrument and institution.
COMPONENTS
OF FINANCIAL
SYSTEM
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1.
2.
3.
4.
5.
6.
7.
8.
9.
A
B
D
A
B
D
C
A
Assessment
9.
10.
11.
12.
13.
14.
15.
D
B
A
A
B
C
D
22
Activity 2 and 4 Students’ answers might
vary. Refer to the Rubrics for the scoring.
Activity 3
1.TRUE
2. TRUE
Activity 1
CAPITAL-Financial Market
CREDIT UNIONS- Financial
Market
BANK DEPOSITCASH- Financial Instrument
STOCKSFinancial
Instrument
BONDSFinancial
Instrument
REAL STATEBOND MARKET-Financial
Market
INSURANCECENTRAL BANK- Financial
Institution
3. TRUE
4. FALSE
5.TRUE
6. FALSE
7. TRUE
8. TRUE
9. TRUE
10. TRUE
Activity 4
Role of Financial Managers
➢ Financial managers make financing decisions that
require funding from investors in the financial
markets.
Role of Investors
➢ Investors provide the funds that are to be used by
financial managers to finance corporate growth.
Activity 1
1. C
2. C
3. B
4. D
5. A
6. A
7. B
8. B
9. B
10. B
Activity 2
What I Know
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Students’ answers might vary.
Scoring will be based on the
Rubrics
D
D
B
C
A
B
C
A
D
B
A
B
A
D
A
Answer Key
References
Yumang, K., Pao,TPC,Benito P. Business Finance: The Phoenix Publishing House,
Inc., 2016
Teacher Guide for Senior High School, Business Finance Published by the
Commission on Higher Education, 2016
23
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Curriculum Implementation Division Office
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Telephone no. (048) 433-6392
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