ABM Grade 12 Modules and activities! 2022-2023

Business Finance part2

1. Explain the major role of financial management and the different individuals involved.
> Financial management is the handling or all financial matters, inncluding analysis
of financial statements, the evaluation of prospects before investment is actually
started and the raising of capital or funds from various sources.

The different individuals involved:

Depositor - (has the funds) is the person who has the money and deposits it in a savings account.
Borrower - (who needs the funds) is the one who needs the funds and borrow the funds through a bank. He needs the fund to start a business project or venture.

2. Is business finance is relevance in your strand? Why?

Business finance is the process of managing an organization's money. The purpose of business finance is also to ensure that a business has adequate operating funds and that it is spending and investing its money carefully, wisely, and effectively. Business finance is relevance to our strand which is ABM because the strand would focus on the basic concepts of financial management, business management, corporate operations, and all things that are accounted for. It's very important to learn those things for future purposes because ABM strand are subjected to any business or corporate related courses or jobs.

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Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Financial markets facilitate the interaction between those who need capital with those who have capital to invest.

Capital market, stock market, Bond market

Ang halimbawa ng financial market is kung gusto mong magbenta or bumili ng capital, investment at stocks, doon ka pupunta sa financial market.

Pwede ka ring makipag exchange ng currency ng money sa financial market. Ang financial market din ang nag papacilitate ng interaction sa pagitan ng mga taong may capital na handang mag invest sa mga taong walang capital sa negosyo.

Some examples of financial markets and their roles include the stock market, the bond market, forex, commodities, and the real estate market, among several others.

Financial markets can also be broken down into capital markets, money markets, primary vs. secondary markets, and listed vs. OTC markets.

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