BUSINESS FINANCE-SENIOR HIGH SCHOOL

1. UNDERSTANDING
FINANCE
BUSINESS FINANCE

2. finance

3. At the end of the lesson, the
learners are expected to:
 define finance.
 identify the different areas of finance.
 categorize the persons involved in a business
organization through organizational chart; and
 state the qualifications of a finance officer
through acrostic

4. WHAT IS FINANCE?
Finance as the management of
money, banking, investments, and
credit. –American Heritage Desk
Dictionary
Science of management of money and
other assets.
MONEY

5. Finance is both a science and an
art of correct application of the
economic and accounting
concepts and principles that
define the system, structure,
and process of management,
allocation, and utilization of
financial resources, investments,
and expenditures.

6. Economics
Accounting
Finance
Concerned with the
utilization of scarce
resources to satisfy human
needs and wants
Art of recording business
transactions and deals with
the preparation of financial
statements.

7. AREAS OF FINANCE
Finance is broadly classified into two:
Private finance
-business finance
-personal finance
Public finance

8. AREAS OF FINANCE
Business finance is further subdivided
into:
Financial management
Capital market
Financial investment

9. FINANCE
Private
Finance
Personal
Finance
Business
Finance
Financial
Management
Capital
Market
Financial
Investments
Public
Finance
Private Finance is the
management of financial
resources of private
individuals, non governmental
organizations, and private
organization.
Public Finance is the
allocation of government
income generated from
either taxation or
borrowings and the
government expenditure.
Personal Finance income is
allocated based on the
individuals personal needs.
Business Finance focuses
on the handling and
management of financial
resources of a business
organization.
Financial Management
focuses on capital
budgeting decision or
investment decision.
Capital Market studies the
different financial
institutions and their
functions to both private
and public borrowings.
Financial Investments
includes business decisions
about the value and price
of stocks, bonds, portfolio
analysis, market analysis
and the likes.

10. FINANCE IN A
BUSINESS ORGANIZATION
Functional Divisions
Production and operation division
General administrative or human
resource division
Finance division
Marketing division

11. BOARD OF
DIRECTORS
Chief Executive
Officer/President
Product and
Operation
Division
General
Administrative
Division
Finance Division
Accounting
Department
Finance or
Treasury
Department
Marketing
Division

12. FUNCTIONS OF A FINANCE OFFICER
The finance officer is heavily engaged in
making decisions for the business to
attain its objectives.
OPERATIONG DECISIONS
INVESTING DECISIONS
FINANCING DECISIONS

13. Financial
Decisions of
the CFO
Operating
Decisions
Investing
Decisions
Financing
Decisions
 Credit and Collection
 Level of Inventory
 Granting of Discounts
 Budgeting
 Payment and Control of
Operating Expenditure
 Daily Operating Decisions
 Non Current asset
acquisition
 Investment Portfolio
 Pricing Decision of stocks
and bonds
 Discounted Cash Flow
analysis in capital
budgeting
 Equity Financing
 Debt Financing
 Cost of Capital and
borrowing
 Short term and long term
borrowings
 Interest rate

14. QUALIFICATIONS OF A
FINANCE OFFICER
Possesses sound knowledge of
accounting and economic concepts and
principles
Has profound understanding of
operation science, statistics, and
marketing research

15. QUALIFICATIONS OF A
FINANCE OFFICER
Has gained technical experience in
finance and provided professional
judgement
Has good communication skills in both
oral and written forms

16. QUALIFICATIONS OF A
FINANCE OFFICER
Has impressive relationship with
banks and other financial institutions
Has outstanding relationship within
the business and among other
functional areas

17. QUALIFICATIONS OF A
FINANCE OFFICER
Ethically and morally upright and
socially responsible.