MODULE 1

Question 1

Setting policies on investments, capital structure and dividend policies

Question 2

Approving company’s strategies, goals and budgets.

Question 3

c. Appointing and removing members of the top management including the president.

Question 4

d. Determining top management’s compensation.

Question 5

Approving the information and other disclosures reported in the financial statements (Cayanan, 2015)

Question 6

Approving the information and other disclosures reported in the financial statements. Overseeing the operations of a company and ensuring that the strategies as approved by the board are implemented as planned.

Question 6

Performing all areas of management: planning, organizing, staffing, directing and controlling. c. Representing the company in professional, social, and civic activities.

Question 7

Formulating marketing strategies and plans. Directing and coordinating company sales.

Question 7

d. Conducting or directing research that will allow the company identify new marketing opportunities, e.g. variants of the existing products/services already offered in the market.

Question 7

b. Performing market and competitor analysis.

Question 8

c. Analyzing and evaluating the effectiveness and cost of marketing methods applied.

Question 9

c. Coming up with a production plan that maximizes the utilization of the company’s production facilities.

Question 9

b. Identifying production technology/process that minimizes production cost and make the company cost competitive.

Question 10

Ensuring production meets customer demands.

Question 11

e. Promoting good relationships with customers and distributors. (Cayanan, 2015)

Question 12

d. Identifying adequate and cheap raw material suppliers. (Cayanan, 2015)

Question 12

Coordinating the functions of administration, finance, and marketing departments.

Question 13

b. Assisting other departments in hiring employees.

Question 14

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

Question 15

d. Determining the location and the maximum amount of office space needed by the company. Identifying means, processes, or systems that will minimize the operating costs of the company. (Cayanan, 2015)

Question 16

include making decisions as to how to finance long-term investments and working capital-which deals with the day-to-day operations of the company.

Question 17

deal with the daily operations of the company especially on how to finance working capital accounts such as accounts receivable and inventories.

Question 18

To minimize the probability of failure, long-term investments have supported by a capital budgeting analysis

Question 19

part of profits that are available for distribution, to equity shareholders. The Finance manager must decide whether the firm should distribute all the profits or retain them or distribute a portion and retain the balance.

Question 20

are companies in the financial sector that provide a broad range of business and services including banking, insurance, and investment management.

Question 21

use the deposited funds to provide commercial loans to firms and personal loans to individuals, and purchase debt securities issued by firms or government agencies.

Question 22

pool these payments and invest the proceeds in various securities until the funds needed to pay off claims by policyholders. Because they often own large blocks of a firm’s stocks or bonds, they frequently attempt to influence the management of the firm to improve the firm’s performance, and ultimately, the performance of the securities they own.

Question 23

owned by investment companies that enable small investors to enjoy the benefits of investing in a diversified portfolio of securities purchased on their behalf by professional investment managers. When mutual funds use money from investors to invest in newly issued debt or equity securities, they finance new investment by firms. Conversely, when they invest in debt or equity securities already held by investors, they are transferring ownership of the securities among investors.

Question 23

Financial institutions that receive payments from employees and invest the proceeds on their behalf. Other financial institutions include pension funds like Government Service Insurance System (GSIS) and Social Security System (SSS), unit investment trust fund (UITF), investment banks, and credit unions, among others

Question 23

is a real or a virtual document representing a legal agreement involving some sort of monetary value. These can be debt securities like corporate bonds or equity like shares of stock. When a financial instrument issued, it gives rise to a financial asset on one hand and a financial liability or equity instrument on the other.