Introduction to Finance & Financial Management – Lecture Review

These flashcards cover the key definitions, organizational structures, government agencies, and core areas of study introduced in the Week 2–3 Business Finance lecture.

How is FINANCE broadly defined in the lecture?

As both a science and an art that correctly applies economic and accounting concepts to manage, allocate, and utilize financial resources, investments, and expenditures.

What are the four main branches under PRIVATE FINANCE mentioned?

Personal Finance, Business Finance, Financial Management, and Capital Markets / Financial Investment (all within the private domain).

What is the primary focus of PUBLIC FINANCE?

Allocating government income from taxation or borrowings and managing government expenditures according to approved budgets.

Which government department formulates fiscal policy and leads revenue generation in the Philippines?

The Department of Finance (DOF).

Name two key agencies under the supervision of the Philippine Department of Finance.

Examples include the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

What does the Department of Budget and Management (DBM) oversee?

The sound and efficient use of government resources to meet national socio-economic and political development goals.

In a private organization, who elects the Board of Directors?

The shareholders or owners.

Who typically appoints the President or CEO in a corporation?

The Board of Directors.

List the typical C-suite (VP) functional areas highlighted under a CEO in the lecture.

Finance, Marketing, Production/Operations, and Administration/Human Resources.

According to the lecture, what are the five hierarchical levels of finance roles inside an organization?

Vice President, Director, Manager, Supervisor, and Associate.

What career opportunities can a finance student pursue within a corporate setting (give two examples)?

Examples include Financial Analyst and Treasury Manager (others could be Controller, Investment Officer, etc.).

What does FINANCIAL MANAGEMENT concentrate on?

Capital budgeting or investment decisions concerning asset acquisition and the related financing schemes.

What does CAPITAL MARKETS study?

The roles and functions of financial institutions that provide funds to private and public borrowers.

What topics fall under the INVESTMENT area of finance?

Valuation and pricing of stocks and bonds, portfolio analysis, market analysis, and investor behavior.

Differentiate between PRIVATE and PUBLIC finance in one sentence.

Private finance manages resources of individuals and non-government entities following internal policies, while public finance allocates government revenues and expenditures based on national and local budgets.