Bersaba, Jessabel Rosas

Business Finance

Review Questions:
1. Why is earning profit considered as only one of the objectives of the business?
You establish a business to earn profit and make your business much bigger and
successful. If your business is not profitable, it will lead to bankruptcy. It will just waste
your time and money. You need to earn profit to continuously operate and make the
business a success.
2. Define Business Finance. Explain each of its function.
In our module, Business Finance is defined as the one who is concerned with
making decisions about which investments the business should make and how best to
finance those investments. It has been classified into three; the long-term finance is an
investment 3 years or more. Example, you borrow money from the bank in a form of
long-term loans and you will pay that after 3 years or more. The second one is Medium
Term Finance, you will pay the borrowed money within 1-3 years. The last one is the
Short Term Finance, example of these are bank overdrafts, commercial paper, advances
from customers and etc. which are funds that are payable in a shorter period of time
(below one year).
3. Who is the finance manager in a business entity? What are his primary activities?
The finance manager is the one who is responsible in the financial health of the
business. He’s the one who’s making the financial report which are very important in
determining the profit of the business within a period of time. His primary activity is
making financial decisions.
4. Enumerate the functions of the controller and the treasurer.
The functions of the controller are; planning for control which includes
budgeting, reporting and interpreting results of operations and systems installations,
evaluation of objectives, policies, and procedures and consulting with all segments of
management regarding the same, tax administration and government reporting,
protection of assets and lastly economic appraisal. On the other hand, the treasurer
determines the financial requirements and procurement of funds, and foreign exchange
problems, investor relations, corporate investment, credit and collections, insurance
and lastly employee’s benefits.
 5. What is the role of the vice-president for finance in an organization?
The vice-president is the one who receives the financial report from the finance
manager.