Name: _____________________________________________ Score: ____________

Grade Level and Section: _____________________________ Date: _____________

MIDTERM EXAMINATION IN BUSINESS FINANCE

Name/Give the term of the following given definition below.
1) ________________ defined as the science and art of managing money.
2) ________________ the act of estimating revenue and expenses over a period of time
3) ________________ a measure of the financial performance of a company for a period of
time.
4) ________________ deals with decisions that are supposed to maximize the value of
shareholders’ wealth
5) ________________ the highest policy making body in a corporation
6) ________________ include making decisions on how to fund long term investments and
working capital which deals with the day to day operations of the company
7) ________________ sources are those that will be payable in at most 12 months
8) ________________ are the amounts owed to suppliers for the inventories they delivered
or services they provided
9) ________________ sources, on the other hand, mature in longer periods.
10) ________________ are paid by corporations to existing shareholders based on their
shareholdings in the company as a return on their investment.
11) ________________ organized forums in which the suppliers and users of various types of
funds can make transactions
12) ________________ intermediaries that channel the savings of individuals, businesses, and
governments into loans or investments
13) ________________ the sale of a new security directly to an investor or group of investors.
14) _______________ The sale of either bonds or stocks to the general public.
15) _______________ is a real or a virtual document representing a legal agreement involving
some sort-of monetary value
16) ________________ generally have fixed returns due to fixed interest rates.
17) ________________ are issued by the Philippine government. These bonds and bills have
usually low interest rates and have very low risk of default since the government assures
that these will be paid
18) ________________ are issued by publicly listed companies. These bonds usually have
higher interest rates than Treasury bonds
19) ________________ generally have varied returns based on the performance of the issuing
company. Returns from equity instruments come from either dividends or stock price
appreciation.
20) ________________ has priority over a common stock in terms of claims over the assets of
a company
21) _______________ Holders of ____________ on the other hand are the real owners of the
company.
22) The sale of previously owned securities takes place in ____________________.
23) ______________________________ is both a primary and secondary market
24) ______________________ are a venue wherein securities with short-term maturities (1
year or less) are sold.
25) ____________________On the other hand, securities with longer-term maturities are sold
in_____________.
26) Individuals deposit funds at ________________, which use the deposited funds to provide
commercial loans to firms and personal loans to individuals, and purchase debt securities
issued by firms or government agencies.
27) ___________________Individuals purchase insurance (life, property and casualty, and
 health) protection with insurance premiums.
28) __________________ are owned by investment companies which enable small investors to
enjoy the benefits of investing in a diversified portfolio of securities purchased on their
behalf by professional investment managers.
29) _________________ Financial institutions that receive payments from employees and
invest the proceeds on their behalf
30) __________________ include pension funds like Government Service Insurance System
(GSIS) and Social Security System (SSS), unit investment trust fund (UITF), investment
banks, and credit unions, among others.

Explain the financial system