Prelims Flashcards
It is sufficiency, acquisition, allocation, and utilization of funds
Finance
It concerns with a government revenue and expenditure. it talks about how the government gets the money or how does it spends
Public Finance
Types of Business Organization
Services
Trading/merchandising Manufacturing
Banking and finance
Mining
Construction
Genetic industries
Finance is derived from the latin word_ meaning to end or pay
Latin word FINER
She defines economics as a science of production and distribution of wealth
Webster
It means determining where to use funds currently available to the firm
Allocation
It means obtaining funds from the right sources at the right time
Acquisition
It means using the funds
Utilization
Oldest medium of exchange and use as barter before
Seashells
It came from the latin word “Moneta” which was a surname of a roman goddess juno Moneta
Money
An old french, it means money coins currency
Monoie
Money is Noted as…
Medium of exchange
Legal tender
Measure of value
Means of payment
Standard of value
It is the oldest form of money as domestication of animals
Cattle
A process of conversion of materials into coins
Coinage
An indian word means “color white beads” an oblong shaped clamshell strong together and used as ornaments.
Wampum
Kinds of Coinage
Free coinage or Gratticus coin
Brassage
Seigniorage
Limited Coinage
Made by chinese during tang dynasty and use in the country mongolia
Paper Money
Examples of these are credit cards debit cards cash cards and gift certificates
Plastic Money
Functions of Money
Medium of exchange
Standard of value
Means deferred payment
Store of value
Conveyance
Forms or money
Commodity money
Currency bills C
Check
Bank draft
Money order
Warehouse receipt
Characteristics of good medium of exchange
Scarcity
Divisibility
Portability
Durability
Classification of finance as to form negotiation
Direct finance
Indirect finance
Involved in direct borrowing and there is one security involve the direct security which is in this case is the promissory note
Direct finance
Involves financial intermediaries in the real sense of the word. The securities involved are indirect securities or the secondary securities
Indirect finance
Classification of finance as to user
Public finance
Private finance
It deals with revenue and expenditure of the government
Public finance
It deals with the area of general finance not classified under public finance and individual borrowing money from another individual is one of its example
Private finance
Medina divided province financed further into three categories which are…
Personal finance
Finance of non-profit organization
Business finance
It refers to finance conducted by individuals or consumers. one of its example is a father giving his son allowance
Personal finance
It involves conducted by charitable civic religious organizations among others. Everything that they do do not involves funding
Finance of non-profit organization
It’s all about saving time money or effort. It is the relationship between input and output. It is a measure of speed and cost
Efficiency
It is a measure of quality
Effectiveness
Efficiency + effectiveness =
Productivity
It engaged in rendering services such as barber shops, tailoring, massage clinics & spasz laundry shops, doctors vent planners personal trainers and others.
Service
It engaged in buying and selling merchandise. They sell shoes, furniture, sari-sari stores, appliance stores, bookstores, and others
Trading and merchandising
Are those which by raw materials and processed the same to convert them into finished products which they sell. Another firm buys wood or lumber to make furnitures, buys fabric to make ready to wear clothes, buys leathers to make shoes and bags.
Manufacturing
Firms that use money as its main object of business. Money and credit are their products banks. Lending institutions credit companies pawnshops savings and loans associations credit unions and others.
Banking and finance
It extract natural resources like oil gas gold-copper cement among others this is the reason they belong to the extractive industry.
Mining companies
This build houses building schools roads bridges and others infrastructure there similar to manufacturing assistance with materials like cement and steel.
Construction companies
Business involved in the production or multiplication and reproduction or certain species of plants and animals either brazil or for production of bioproducts like wool leather and medicine herbs
Genetic industries
Is a business unit owned and controlled by a single individual and it is the simplest business entity and the easiest to form or put up.
Sole or single proprietorship
Is an association of two or more persons who have agreed to contribute money property or industry to a common fund with the intention of dividing the profits among themselves.
Partnership
It is an artificial body or being organized in accordance with the provision of law in which ownership is divided into shares or stocks
Corporation
Our organization established by individuals called numbers to provide themselves with good and services or to purchase and dispose of the products of their labor. These individuals have voluntary join together to achieve a common goal through the cooperative created
Cooperative
Also known as financial management that focuses on the financial aspects of managerial decisions it is concerned with assessing health financial techniques are being used at different levels of a company vs the financial
Managerial finance
It is defined as a t lysing the scarce resources of the organization to maximize attainment of the organization’s goals and objectives
Management
The 8 m’s of management
Men
Money
Materials
Method
Machine
Market
Moment
Media
It is human and the most important of all resources
Men
Or capital money is only a part of capital
Money
These are items need to make a product
Materials
The way things are done
Methods
These are sources produced by technology
Machine
This refers to whom/where businesses sell their products who are in demand of a product
Market
Also known as time resource management and other employees need to learn how to manage effectively and efficiently to achieve objectives
Moment
The resources that enables business to reach their markets
Media
Finance consists of three interrelated areas these are
Managerial finance
Investment
Money and capital markets
Finance consists of three interrelated areas these are
Managerial finance
Investment
Money and capital markets
Productivity can be improved by
Increasing output with the same input
Decreasing input with same output Increasing output decreased input
Consist of labor materials and capital
Input
Besides as to where to get financial resources by cash inventories equipment and other assets did with the firm and its operation
Finance manager
The person in charge of the finance function
Director of finance
