studies the allocation of resources , studies money and its management

focuses on the decisions made by both individuals and in insititutional investors as they choose securities for their investment portfolios.

obtaining the funds from the right source at the right time.

utilization of the acquired and allocated funds to finance operations

this is concerned with the institutional aspects of the discipline of finance. The creation of financial assets, the securities markets and financial institutions and regulation.

refers to decisions made within the firm regarding the acquisition and use of

funds. To determine how to invest money to achieve such goals as home purchase, retirement, financial stability and sustainability, budgeting and so forth.

The sources and the assets that a firm owns are often summarized in a financial statement called

All investments are made because the individual or management anticipates earning a return.

What is earned on an investment; the sum of income and capital gains generated by an investment?

What is the possibility of loss; the uncertainty that the anticipated return may not be achieved?

occurs when you borrow funds in return for agreeing to pay fixed payments such as interest and repay the principal after a period of time.

In Financial Leverage, what type of financing are we using?

All organizations, be they profit or non profit, need financing

defined as utilizing the scarce resources of the organization to maximize attainment of the organization's goals and objectives.

The human resources; the most important of all resources.

Sometimes referred to as capital, although in accounting, money is only a part of capital.

Items needed to make a product.

The way things are done which in the present time has been tremendously

improved with technology

The resource produced by technology which has been replacing people in

some, if not, most companies.

Refers to whom or where businesses sell their products; not only a place;

people and organizations who are in demand of their product are also their markets.

A resource that needs to be managed effectively and efficiently. On time

and decisive in the business.

The resource that enables business to reach their markets.

selecting financial goals, developing financial policies and designing the finance organization.

preparing plans to attain set goals, preparing forecasts and budgets, and comparing actual performance with budgets to determine variances and determine actions needed to correct said variances.

evaluating results of operation and financial condition, investment options, and other finance-related activities to determine feasibility and profitability.

was derived from from Latin word moneta, surname of the Roman goddess Juno.

refers to a mint or a place for coining money.

It is something generally accepted as a medium of exchange, a measure of value or a means of payment.

It widely acceptable in exchange for goods and services.

recognized by law as means to settle a public or private debt or meet a

financial obligation including tax payments contracts and legal fines or damages.

It enables the values of different goods and services to be compared.

It acts as a way to facilitate payments or transfer of financial resources.

Allows economic entities to set uniform prices for goods and services.

agreed upon worth for a transaction in the country's medium of exchange.

it makes something valuable and over abundance makes it worthless. it is rare or hard to find this is based on the basic econonmic law of supply and demand. The harder a thing is to find, the more the thing becomes. This is the reason why precious metals, especially gold and silver, deemed a good choice as a medium of exchange. However limited supply makes these metals impractical or too expensive

It is another feature that enables one to suit the medium of exchange to the kind of transaction, big or small. Small units apply to small transactions and big units apply to big transactions. It refers to the quality of being broken down into smaller units. the property of malleability of metals makes them desirable for coinage because they can be melted and form into different shapes and sizes and different denominations.

An ease in handling or carrying makes one thing desirable as a medium of exchange. This allows people to bring it with them anywhere where they go to enter into transaction.

A piece of metal is easier to carry than a carobao. Paper money is more portable than metals or even coins.

It means long lasting. Metal is almost indestructible that is why it became a medium of exchange for a long time. There are countries nowadays that use paper polymer money in place of paper money. Plastic is more durable than paper. Philippine Coins are made of metals while paper bills are composed of 80% cotton and 20% abacca.

studies the allocation of resources , studies money and its management

The use of money to facilitate the transfer of goods and services and settle obligations has made money the basic medium of exchange.

Money is our measuring stick to measure the value or worth of something. Goods, services, assets, liabilities, and net worth ( equity or capital ) are all measured in terms of money. Money measures the relative worth of goods and services. In short, money is the common denominator, the basis for comparison.

The excess of income over expenses is usually saved. Our savings, usually in the form of money, is stored either in the bank or at home for future use that is the idea of store of value. The value needed in the future is stored. When we make investments in the form of stocks, bonds, or other securities and fixed assets like land, or excess money is stored in these assets. In case we need money in the future, we can sell them and produce the money we need.

As legal tender, money is acceptable in payment of debts or liabilities. If payment is to be made in the future, money becomes means of deferred payment. It means postponed or held for future use. So long as prices remain stable, the amount owed is what is paid, and the creditor is able to buy the same amount of goods and services. However, when prices rise, the amount owed will be able to buy less (creditor lose) ; when prices go down, the amount owed will be able to buy more (creditors gain).

It refers to the means of transport or transfer.

In law (which finance uses), It means the process of or the documents effecting the transfer property from one owner to another. The said document is the money because it facilitates transfer of ownership, while the process is the transfer of title or ownership.

invented printing and the use of paper money during the Tang Dynasty ( 618-906 AD).

the second country to begin using paper money in the 11th century.

issued the first paper money in Europe in the 17th century.

is actual cash made of super- resistant polymer film ( instead of paper).

the first country to develop and use polymer notes in general circulation in 1988.

It is the hard plastic cards used in everyday exchange transactions in place of actual bank notes

It has his own value other than using it as money. It has his own intrinsic value.

It is generally used by businesses and persons in conducting business, as well as

personal transactions.

the drawer or writer of the check.

the bank which is order to pay the payee.

the one to whom the check is to be paid.

issued by persons to be drawn against their own current/checking account in the bank.

a check issued by companies/businesses. It is drawn on the issuer’s bank checking or current account. It is used for business transactions.

it is issued by the bank against its own account ensuring availability of funds. It is purchased with a free from a bank that issues the check. It can be signed by the bank cashier or any other bank official.

it is issued by the bank certifying that the account of the person issuing it has available funds (just like any ordinary personal check). The bank certifies the availability of fund by earmarking the corresponding amount on the check which will only be used to pay the check itself.

it is a fixed amount check which is preprinted, allowing the signatory of the financial institution who is selling the traveller’s check to make an unconditional payment to whoever has the traveler’s check in his possession.

the company issuing or producing the traveler’s check.

the financial institution who sells the traveler’s check.

the person buying the traveler’s check and will use it as a form of money

the seller of goods or services to be paid with the traveler’s check.

Is issued by banks against their own account

Ensure availability of funds without any need to on the character of the person insuring the check. Prevalent in the UK and US.

Refers to the instrument issued generally by the post office of a country ordering a sum of money to be paid to the payee indicated on the instrument itself. This under R.A. 7354, an Act Creating the Philippine Postal Corporation under Art. ll, Sec 6.

It covers all warehouses, whether public or private, bonded or not . A document of title to goods

A proof of the possession or control of the goods

Authorizing or purporting to authorize the possessor of the documents to transfer or receive, either by endorsement or by delivery goods represented by such document.