What is Business Finance
Content
1. What is Business Finance?
Business finance is a term that encompasses a wide range of activities and disciplines
revolving around the management of money and other valuable assets. Business finance
programs in universities familiarize students with accounting methodologies, investing strategies
and effective debt management. Small business owners must have a solid understanding of the
principles of finance to keep their companies profitable.
2. Outline of Business Finance?
The following outline is provided as an overview of and topical guide to finance:
Finance – addresses the ways in which individuals and organizations raise and allocate
monetary resources over time, taking into account the risks entailed in their projects.
3. Syllabus of Business Finance
A. Money in the Nation’s Economy
1. Money and its evolution
2. Money and its significance.
3. Money as a medium of conveyance
4. Characteristics of Good Money.
5. Kinds of Money
6. Money and the economy
B. Monetary Standards
1. Significance of Money Standards
2. Types of Money Standards
C. The Philippine Monetary System
1. The Philippine Peso
2. Par Value
3. Safeguards in Issuance of Notes and Coins
4. Central Bank Notes
5. The Philippine Mint
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Week 3 & 4
D. The Value of Money
1. Supply and Demand of Money
2. Standard of Value, Source of Value of Money
3. The Physical Volume of Trade
4. The Transaction Theory
5. The Cash-Balance Theory
6. Effects of the Monetary Instability.
7. Inflation and Deflation
8. Control of Money Supply
9. The Nature of Foreign Exchange and International Reserves.
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
BSP Inflation Report of 2010 and 2011
Week 5 & 6
E. Monetary Stability
1. Depreciation and Devaluation: Its Benefits and Detriment.
2. US Depression of 1929
3. Asia Financial Crisis 1997
4. Philippine Stock Exchange 1997- up
5. The Bangko Sentral ng Pilipinas
6. Monetary Policy
7. BSP Inflation Targeting
F. The Credit System
1. Credit in the Industrial World
2. Foundation of a System of Credit
3. Nature and Characteristics of Credit
4. Classes and Kinds of Credit
5. Consumer Credit (Credit Card)
6. Advantages and Disadvantages of Installment Buying.
7. Truth in Lending Act.
8. Different Kinds of Loans and Commercial Credits, Private and Public Credit.
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
BSP Inflation Report of 2010 and 2011.
BSP 2011 Inflation Targeting
Abstract from “The Truth in Lending Act”.
.
Week 7,8,9 & 10
G. Banking and Finance
1. History of Philippine Banking
2. History of Banking in US, Britain and World
3.. The Philippine Banking System
4. Commercial Banking
5. Unibanking
6. Savings Banking
7. Rural Banking
8. Development Banking
9. Investment Banking
10. Non-Bank Thrift Institutions
11. Government Banking Institutions
12. Offshore Banking Units
H. The Role of the Banking System in Export Development
1. Banks in Developing Countries
2. Financial Services
3. Stages of Financing
4. Letter of Credits : Procedures
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Abstract from “The Truth in Lending Act”.
Week 11 & 12
I. International Financial Institution
1. The World Bank
2. The International Monetary Fund
3. The Asian Development Bank
H. Money Laundering
1. The Anti Money Laundering Act (AMLA) of 2001
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Week 13 & 14
J. Financial Statement
1. Balance Sheet
2. Income Statements
3. Statement of Retained Earnings
4. Cash Flow Statement
K. Risk, Return and Value
1. Definition and Measurement of Return
2. Risk Management
3. Valuation, Return and Risk Consideration. Saldana, Cesar G., Financial Management in the
Phil. Setting. AFA Publications Inc., 1st Edition
Eskew, Robert K. Financial Accounting, McGrawHill 4th Edition
Week 15
L. The Investment Decision: Capital Budgeting.
1.Under conditions of Certainty
2. Treatment of Uncertainty
3. Internal Rate of Return (IRR)
4. Liquidity, Profitability and Present Value
5. Mean-Variance Methodology
6. Mean Variance Analysis
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
.
Week 16
M. The Finance Decision .
The Equity Valuation and Cost of Capital.
1. Capitalization Concept
2. Types of Dividend Valuation
3. Corporate Cost of Equity versus …Dividends Yields, Dividends Growth or Capital Growth.
4. Debt Valuation and the Cost of Capital
5. Capital Gearing and the Cost of Capital Saldana, Cesar G., Financial Management in the Phil.
Setting. AFA Publications Inc., 1st Edition
Week 17
N. The Wealth Decision
Shareholders Wealth and Value Added
1. The Concept of Economic Value Added
2. The Concept of Market Value Added
3. Profit and Cash Flow Saldana, Cesar G., Financial Management in the Phil. Setting. AFA
Publications Inc., 1st Edition
Week 18
4. Function of Private Finance Department
The activities expected from a finance department cover a wide range from basic
bookkeeping to providing information to assisting managers in making strategic
decisions. What to expect from your finance department will depend largely on factors
such as how much involvement the owner/manager has in the organization.
At the base level, your finance department will be responsible for all the day to
day transactional accounting for the business. This will include the tracking of all
transactions and the management of any government reporting. In very small ownermanaged businesses this role is often filled by a family member with accounting
experience. An outside accounting firm is usually used for annual financial statements
and returns. In larger organizations this role will extend right through to preparing the
financial statements with an external auditor engaged for assurance purposes.
The finance department is also responsible for management of the organization’s
cashflow and ensuring there are enough funds available to meet the day to day payments.
This area also encompasses the credit and collections policies for the company’s
customers, to ensure the organization is paid on time, and that there is a payment policy
for the company’s suppliers. In most organizations there will be some form of forecast
prepared on a regular basis to systematically calculate the ongoing cash needs.
5. Function of Department of Finance
The Philippines' Department of Finance (DOF) (Filipino: Kagawaran ng Pananalapi) is
the executive department of the Philippine government responsible for the formulation,
institutionalization and administration of fiscal policies, management of the financial resources
of the government, supervision of the revenue operations of all local government units, the
review, approval and management of all public sector debt, and the rationalization, privatization
and public accountability of corporations and assets owned, controlled or acquired by the
government.
6. Structure of Department Finance
The BSP's Organizational Structure
as of December 2014
Executive Management Services – the functional grouping of all units directly reporting
to the Monetary Board or to the Governor
Functional Sectors
o Monetary Stability Sector - mainly responsible for the operations/activities
related to monetary policy formulation and implementation
o Supervision and Examination Sector – mainly responsible for the regulation of
banks and other BSP-supervised financial institutions
o Resource Management Sector – mainly responsible for the management of
human, financial, and physical resources of the Bank
Security Plant Complex – responsible for the production of Philippine currency, security
documents, and commemorative medals and medallions
Business finance is a term that encompasses a wide range of activities and disciplines
revolving around the management of money and other valuable assets. Business finance
programs in universities familiarize students with accounting methodologies, investing strategies
and effective debt management. Small business owners must have a solid understanding of the
principles of finance to keep their companies profitable.
2. Outline of Business Finance?
The following outline is provided as an overview of and topical guide to finance:
Finance – addresses the ways in which individuals and organizations raise and allocate
monetary resources over time, taking into account the risks entailed in their projects.
3. Syllabus of Business Finance
A. Money in the Nation’s Economy
1. Money and its evolution
2. Money and its significance.
3. Money as a medium of conveyance
4. Characteristics of Good Money.
5. Kinds of Money
6. Money and the economy
B. Monetary Standards
1. Significance of Money Standards
2. Types of Money Standards
C. The Philippine Monetary System
1. The Philippine Peso
2. Par Value
3. Safeguards in Issuance of Notes and Coins
4. Central Bank Notes
5. The Philippine Mint
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Week 3 & 4
D. The Value of Money
1. Supply and Demand of Money
2. Standard of Value, Source of Value of Money
3. The Physical Volume of Trade
4. The Transaction Theory
5. The Cash-Balance Theory
6. Effects of the Monetary Instability.
7. Inflation and Deflation
8. Control of Money Supply
9. The Nature of Foreign Exchange and International Reserves.
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
BSP Inflation Report of 2010 and 2011
Week 5 & 6
E. Monetary Stability
1. Depreciation and Devaluation: Its Benefits and Detriment.
2. US Depression of 1929
3. Asia Financial Crisis 1997
4. Philippine Stock Exchange 1997- up
5. The Bangko Sentral ng Pilipinas
6. Monetary Policy
7. BSP Inflation Targeting
F. The Credit System
1. Credit in the Industrial World
2. Foundation of a System of Credit
3. Nature and Characteristics of Credit
4. Classes and Kinds of Credit
5. Consumer Credit (Credit Card)
6. Advantages and Disadvantages of Installment Buying.
7. Truth in Lending Act.
8. Different Kinds of Loans and Commercial Credits, Private and Public Credit.
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
BSP Inflation Report of 2010 and 2011.
BSP 2011 Inflation Targeting
Abstract from “The Truth in Lending Act”.
.
Week 7,8,9 & 10
G. Banking and Finance
1. History of Philippine Banking
2. History of Banking in US, Britain and World
3.. The Philippine Banking System
4. Commercial Banking
5. Unibanking
6. Savings Banking
7. Rural Banking
8. Development Banking
9. Investment Banking
10. Non-Bank Thrift Institutions
11. Government Banking Institutions
12. Offshore Banking Units
H. The Role of the Banking System in Export Development
1. Banks in Developing Countries
2. Financial Services
3. Stages of Financing
4. Letter of Credits : Procedures
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Abstract from “The Truth in Lending Act”.
Week 11 & 12
I. International Financial Institution
1. The World Bank
2. The International Monetary Fund
3. The Asian Development Bank
H. Money Laundering
1. The Anti Money Laundering Act (AMLA) of 2001
Miranda, Gregorio. Essentials of Money, Credit and Banking,Updated Edition 2001
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
Week 13 & 14
J. Financial Statement
1. Balance Sheet
2. Income Statements
3. Statement of Retained Earnings
4. Cash Flow Statement
K. Risk, Return and Value
1. Definition and Measurement of Return
2. Risk Management
3. Valuation, Return and Risk Consideration. Saldana, Cesar G., Financial Management in the
Phil. Setting. AFA Publications Inc., 1st Edition
Eskew, Robert K. Financial Accounting, McGrawHill 4th Edition
Week 15
L. The Investment Decision: Capital Budgeting.
1.Under conditions of Certainty
2. Treatment of Uncertainty
3. Internal Rate of Return (IRR)
4. Liquidity, Profitability and Present Value
5. Mean-Variance Methodology
6. Mean Variance Analysis
Saldana, Cesar G., Financial Management in the Phil. Setting. AFA Publications Inc., 1st Edition
.
Week 16
M. The Finance Decision .
The Equity Valuation and Cost of Capital.
1. Capitalization Concept
2. Types of Dividend Valuation
3. Corporate Cost of Equity versus …Dividends Yields, Dividends Growth or Capital Growth.
4. Debt Valuation and the Cost of Capital
5. Capital Gearing and the Cost of Capital Saldana, Cesar G., Financial Management in the Phil.
Setting. AFA Publications Inc., 1st Edition
Week 17
N. The Wealth Decision
Shareholders Wealth and Value Added
1. The Concept of Economic Value Added
2. The Concept of Market Value Added
3. Profit and Cash Flow Saldana, Cesar G., Financial Management in the Phil. Setting. AFA
Publications Inc., 1st Edition
Week 18
4. Function of Private Finance Department
The activities expected from a finance department cover a wide range from basic
bookkeeping to providing information to assisting managers in making strategic
decisions. What to expect from your finance department will depend largely on factors
such as how much involvement the owner/manager has in the organization.
At the base level, your finance department will be responsible for all the day to
day transactional accounting for the business. This will include the tracking of all
transactions and the management of any government reporting. In very small ownermanaged businesses this role is often filled by a family member with accounting
experience. An outside accounting firm is usually used for annual financial statements
and returns. In larger organizations this role will extend right through to preparing the
financial statements with an external auditor engaged for assurance purposes.
The finance department is also responsible for management of the organization’s
cashflow and ensuring there are enough funds available to meet the day to day payments.
This area also encompasses the credit and collections policies for the company’s
customers, to ensure the organization is paid on time, and that there is a payment policy
for the company’s suppliers. In most organizations there will be some form of forecast
prepared on a regular basis to systematically calculate the ongoing cash needs.
5. Function of Department of Finance
The Philippines' Department of Finance (DOF) (Filipino: Kagawaran ng Pananalapi) is
the executive department of the Philippine government responsible for the formulation,
institutionalization and administration of fiscal policies, management of the financial resources
of the government, supervision of the revenue operations of all local government units, the
review, approval and management of all public sector debt, and the rationalization, privatization
and public accountability of corporations and assets owned, controlled or acquired by the
government.
6. Structure of Department Finance
The BSP's Organizational Structure
as of December 2014
Executive Management Services – the functional grouping of all units directly reporting
to the Monetary Board or to the Governor
Functional Sectors
o Monetary Stability Sector - mainly responsible for the operations/activities
related to monetary policy formulation and implementation
o Supervision and Examination Sector – mainly responsible for the regulation of
banks and other BSP-supervised financial institutions
o Resource Management Sector – mainly responsible for the management of
human, financial, and physical resources of the Bank
Security Plant Complex – responsible for the production of Philippine currency, security
documents, and commemorative medals and medallions
