Business Finance

​REVIEW

Multiple Choice

A financial manager must choose between four alternative Assets 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide earnings over a 3-year period as described below:

Asset 1: Year 1 - $21,000 ; Year 2 - $15,000 ; Year 3 - $6,000

Asset 2: Year 1 - $9,000 ; Year 2 - $15,000 ; Year 3 - $21,000

Asset 3: Year 1 - $3,000 ; Year 2 - $20,000 ; Year 3 - $19,000

Asset 4: Year 1 - $6,000 ; Year 2 - $12,000 ; Year 3 - $12,000

Which asset would the financial manager choose?

• Asset 1

• Asset 2

• Asset 3

• Asset 4

Multiple Choice

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firms profitability.

• True

• False

Multiple Choice

Wealth maximization as the goal of the firm implies enhancing the wealth of

• the Board of Directors.

• the firm's employees.

• the government.

• the firm's shareholders.

Multiple Choice

These are the factors that influence market price of the corporation's stocks which are controllable by management, EXCEPT:

• dividends

• competent management

• profitability

• macroeconomic conditions

Multiple Choice

The highest policy making body in a corporation.

• Shareholders

• Board of Directors

• Chief Executive Officer

• President

Multiple Choice

The following are among the responsibilities of VP for Administration, EXCEPT:

• Coordinating functions of finance and marketing departments.

• Providing assistance in payroll preparation, payment of vendors, and collection of receivables.

• Identifying adequate and cheap raw material suppliers.

• Assisting other departments in hiring employees.

Multiple Choice

The role of the VP for Finance is to determine the appropriate capital structure of the company.

• True

• False

Multiple Choice

This is one of the functions of a Financial Manager which include making decisions on how to fund long term investment and working capital.

• Financing

• Investing

• Operating

• Dividend policies

Multiple Choice

Intermediaries that channel the savings of individuals, businesses, and government into loans of investment.

• Private Placements

• Financial Institutions

• Public Offering

• Financial Market

Multiple Choice

The key participants in financial transactions are individuals, businesses, and government. Individuals are net ___ of funds, and businesses are net ___ of funds.

• suppliers; users

• purchasers; sellers

• users;suppliers

• users; providers

Multiple Choice

It is possible that the company has profits but its cash flow is negative.

• True

• False

Multiple Choice

The Chief Executive Officer approves the company's strategies, goals, and budgets.

• True

• False

Multiple Choice

Short term sources of funds are those that will mature in at most 12 months and the interest is generally lower as compared to that of long term sources. Hence, this would lead to a lower financing cost.

• True

• False

Multiple Choice

Dividends are paid by corporations to existing shareholders based on their shareholdings in the company as a return on their investment.

• True

• False

Multiple Choice

The primary objective of financial management is

• minimizing risk.

• maximizing profit.

• maximizing wealth.

• minimizing return.

​Business Finance
Midterm
Performance Task

By Lester Zamudio

Instructions

• Each student will be assigned one lesson to report in class.

• Some lessons will have two students assigned.

• I will provide:

  • Lesson Guide

  • Presentation File (modifiable)

• You are free to modify, enhance, and add more information to your assigned lesson.

• Be creative and make your report engaging.

Schedule of Reporting

📌 October 3 – Unit 3: Financial Planning Tools and Concepts

• 3.1 Financial Planning Process – Hamoy & Caraig

• 3.2 Budget Preparation – Toledo

• 3.3 Preparation of Projected Financial Statements – Cortez & Cagatan

• 3.4 Working Capital Management – Arizapa

📌 October 10 – Unit 4: Long-Term and Short-Term Funds

• 4.1 Sources of Funds – Yoo

• 4.2 Loan Requirements – Ramoso

• 4.3 Obligations of Borrowers – Liwanag

• 4.4 Uses of Funds – Khan

Grading Criteria for Reporting

1. Content Mastery (40%)

   • Accuracy and completeness of the lesson

   • Depth of understanding and additional information provided

2. Presentation Skills (30%)

   • Clarity, confidence, and engagement in delivery

   • Proper use of voice, tone, and body language

3. Creativity and Enhancement (20%)

   • Quality of modifications in the presentation

   • Use of visuals, examples, and real-life applications

4. Organization & Time Management (10%)

   • Logical flow of discussion

   • Adherence to allotted time