Intro to business finance Final Exam
and Actual Detailed Answers 2025-
2026 Edition.
Finance - Answer Business activities that aim to
create value of firm
maximize resources
manage risks for greater return
Economic perspective - Answer Asset is based on the future cash flowd the asset will provide
Accounting perspective - Answer Asset refers to resources owned, managed and controlled
by an enterprise
Financial management (corporate finance) - Answer Focuses on decisions relating to HOW
MUCH and WHAT TYPE of assets to require, how to raise the capital needed and how to
maximize its value.
Capital market - Answer Refers to markets where interest rates, along with stocks abd band
prices are determined.
Banks, investments banks, stockholders, mutual funds, insurance companies and the like bring
together 'savere' who have money to invest and businesses that need capital for various
purposes
Investments - Answer Refers to decisions concerning stocks and bonds and include a number
of activities:
Security analysis
Portfolio theory
Market analysis - Answer Deals with the issue of whether stock and bond markets at any
given time are "too high", "too low" or "about right"
Collaborative learning - Answer Importance of finance
, Financial management
Capital market
Investments - Answer Nature of finance
Money - Answer A machine for doing quickly and commodiously what would be done,
though less quickly and commomdiously, without it.
Barter system (with no money)
Money greases the wheels of exchange, makes whole economy more productive
Money comes in the form of tokens (coins and paper money) that have value established by a
commonly recognized authority. - Answer Nature of money
Medium of exchange
Unit of account
Store of value
Means of deferred payment - Answer The conceptual definition of money
General acceptability (.10 to 1.00 not exceed P50.00 when used for payment. .05 not to exceed
20.00 when used for payment)
Stability of value
Portability
Cognizability
Durability (bills has a circulating life of 3 months)
and Actual Detailed Answers 2025-
2026 Edition.
Finance - Answer Business activities that aim to
create value of firm
maximize resources
manage risks for greater return
Economic perspective - Answer Asset is based on the future cash flowd the asset will provide
Accounting perspective - Answer Asset refers to resources owned, managed and controlled
by an enterprise
Financial management (corporate finance) - Answer Focuses on decisions relating to HOW
MUCH and WHAT TYPE of assets to require, how to raise the capital needed and how to
maximize its value.
Capital market - Answer Refers to markets where interest rates, along with stocks abd band
prices are determined.
Banks, investments banks, stockholders, mutual funds, insurance companies and the like bring
together 'savere' who have money to invest and businesses that need capital for various
purposes
Investments - Answer Refers to decisions concerning stocks and bonds and include a number
of activities:
Security analysis
Portfolio theory
Market analysis - Answer Deals with the issue of whether stock and bond markets at any
given time are "too high", "too low" or "about right"
Collaborative learning - Answer Importance of finance
, Financial management
Capital market
Investments - Answer Nature of finance
Money - Answer A machine for doing quickly and commodiously what would be done,
though less quickly and commomdiously, without it.
Barter system (with no money)
Money greases the wheels of exchange, makes whole economy more productive
Money comes in the form of tokens (coins and paper money) that have value established by a
commonly recognized authority. - Answer Nature of money
Medium of exchange
Unit of account
Store of value
Means of deferred payment - Answer The conceptual definition of money
General acceptability (.10 to 1.00 not exceed P50.00 when used for payment. .05 not to exceed
20.00 when used for payment)
Stability of value
Portability
Cognizability
Durability (bills has a circulating life of 3 months)
