INTRODUCTION TO BUSINESS
FINANCE QUESTIONS AND
ANSWERS.
FINANCE - Answer - The science and art of the correct application of money
- It is also a process of management
- System and structure
Private and Public - Answer the 2 divisions in Finance
Financial Management, Capital Market, and Financial Investments - Answer These are the 3
branches of Business Finance under the Private Sector
Financial Management - Answer = Capital Budgeting
- "What Kinds of Assets?"
- "What type of Financing Schemes?"
Capital Market - Answer ¨Area of finance that studies different financial institutions and their
function that aids both private and public borrowers of funds.
Financial Investment - Answer = Focuses on INVESTMENTS
- stocks and bonds
¨It focuses on business decision about the value and price of stocks and bonds, portfolio
analysis, market analysis, security analysis, and behavior of the investors.
Public Finance - Answer Also known as FISCAL ADMINISTRATION
The allocation of GOVERNMENT income generated from either taxation or borrowings and the
government expenditure based on the approved national and local appropriation budget.
Private Finance - Answer ¨It is the management of financial resources of private individual,
non-governmental organizations, and private organizations in accordance with the prescribed
financial policy and priority of the person or business organization
FINANCE QUESTIONS AND
ANSWERS.
FINANCE - Answer - The science and art of the correct application of money
- It is also a process of management
- System and structure
Private and Public - Answer the 2 divisions in Finance
Financial Management, Capital Market, and Financial Investments - Answer These are the 3
branches of Business Finance under the Private Sector
Financial Management - Answer = Capital Budgeting
- "What Kinds of Assets?"
- "What type of Financing Schemes?"
Capital Market - Answer ¨Area of finance that studies different financial institutions and their
function that aids both private and public borrowers of funds.
Financial Investment - Answer = Focuses on INVESTMENTS
- stocks and bonds
¨It focuses on business decision about the value and price of stocks and bonds, portfolio
analysis, market analysis, security analysis, and behavior of the investors.
Public Finance - Answer Also known as FISCAL ADMINISTRATION
The allocation of GOVERNMENT income generated from either taxation or borrowings and the
government expenditure based on the approved national and local appropriation budget.
Private Finance - Answer ¨It is the management of financial resources of private individual,
non-governmental organizations, and private organizations in accordance with the prescribed
financial policy and priority of the person or business organization
