School Capas High School Grade level 12

Daily Lesson Log Teacher Group 1 Learning Area Business Finance

Date Quarter 1st

Day 1 Day 2 Day 3 Day 4

I. OBJECTIVES The learners will be able to: The learners will be able to The learners will be able to:
1. Have an appreciation of 1. Understand the key 1. Prepare a diagram illustrating how the Financial System works.
what the overall objective positions in a corporate 2. Define Financial Markets, Financial Institutions and Financial
of management should be. organization and identify Instruments.
2. Describe the goals of the the roles of each. Identify the types of Financial Markets, Financial Institutions and
firm and explain why 2. Identify the primary Financial Instruments.
maximizing the value of activities of the financial
the firm is an appropriate manager.
goal for a business. 3. Appreciate the functions of
3. Identify factors that a financial manager.
influence the change in
market price.
The learners demonstrate an understanding of the definition of finance, the activities of the financial manager, and the financial institutions and
A. Content Standards
markets.
The learners will be able to:
a. Describe who are
responsible for financial
management within an
organization.
The learners will be able to define b. Describe the primary The learners will be able to describe the role of financial institutions and
B.Performance Standards
finance. activities of the financial markets.
manager.
c. Describe how the financial
manager helps in achieving
the goal of the
organization.
C.Learning Competencies/Objectives The learners shall be able to The learners shall be able to: The learners shall be able to:
Write the LC code for each explain the major role of financial 1. Explain the major role of 1. Distinguish a financial institution from financial instrument and
management and the different financial management and financial market. (ABM_BF12-IIIa-2)
individuals involved. (ABM_BF12- the different individuals 2. Enumerate the varied financial institutions and their
IIIa-1) involved. (ABM_BF12-IIIa- corresponding services. (ABM_BF12-IIIa-3)
1) 3. Compare and contrast the varied financial instruments.
2. Explain the flow of funds (ABM_BF12-IIIa-4)
 within an organization –
through and from the
Explain the flow of funds within an organization – through and from the
enterprise—and the role of
enterprise—and the role of the financial manager. (ABM_BF12-IIIa-5)
the financial manager.
(ABM_BF12-IIIa-5)
Roles and Functions of Financial Types of Financial Markets, Financial Institutions and Financial
II. CONTENT Define finance
Manager Instruments.
III. LEARNING RESOURCES
A. References
1. Teacher’s Guide pages pages 1 – 9 pages 10 – 18 pages 19 - 27
2. Learner’s Materials pages
3. Textbook pages
4. Additional Materials from
Learning Resource (LR) portal
B. Other Learning resources Laptop, board notes Laptop, board notes Laptop, board notes
IV. PROCEDURES
A. Reviewing previous lesson or Finance in Everyday Life Discussion of Homework Savings and Shortages
presenting the new lesson Present a scenario in everyday life Ask at least five learners to share in Recall from the previous discussions that one of the functions of a
(the life of a high school student). class the result of their interview financial manager is financing and investing of funds. Pick a random
Ask the learners how much with a Chief Financial Officer (CFO) learner and present a scenario that during his/her management of
allowance they are given to and or Vice-President for Finance. money, some cash will unused. Ask him/her what he/she would do with
how often do they receive it (daily, Write on the board the roles and that cash.
weekly, etc.). Continue discussing functions that the students
the activities done in a day from identified from their interview. • Ask your learners if they are going to save their money, where would
getting to school, to attending flag Take note of functions that are not they keep it.
ceremony, classroom discussions, roles of a Financial Manager but
lunch breaks, end of classes, are roles of other managerial
occasional meriendas or going out positions. Discuss that these
with friends and playing computer functions are done by people in
games, going back home and going the company who are holding
back out to a nearby store to buy other managerial positions. A
AutoLoad because they realized Financial Manager is part of a
that they can’t end the day without management team whose ultimate
texting their crush. Ask learners goal is to maximize shareholders
how many have savings out of the wealth.
allowance they get from their
parents. End the story by
identifying the expenses they
incurred (i.e. tricycle fare, lunch,
merienda, computer games) and
letting them recognize the value of
 savings and possibly investing at a
young age.
Finance decision is how the
B.Establishing a purpose for the lesson Explain the roles and functions of Identify the types of financial markets, financial institutions, and financial
learners manage their allowance
financial manager. instruments.
daily.
1. Finance as the science and
art of managing money. Discuss and explain:
2. Budgeting is the act of  Financial Markets – organized forums in which the suppliers and
estimating revenue (in the users of various types of funds can make transactions directly
Illustrate the Corporate
form of their allowance)  Financial Institutions – intermediaries that channel the savings of
Organization (on page 11)
and expenses over a period individuals, businesses, and governments into loans or
1. Shareholders
of time (in this case, on a investments.
C.Presenting examples/instances of the 2. Board of Directors
daily basis).  Private Placements - the sale of a new security directly to an
new lesson. 3. President (CEO)
3. Sources of funds investor or group of investors.
4. VP for Marketing
a. Ask from parents  Public Offering - The sale of either bonds or stocks to the general
5. VP for Production
b. Borrow from a friend public.
6. VP for Administration
c. Fund raising activities Financial Instruments – is a real or a virtual document representing a
d. Pawnshops legal agreement involving some sort-of monetary value. These can be
e. 5/6 debt securities like corporate bonds or equity like shares of stock.
f. Banks
D. Discussing new concepts and Ask the learners who among them Share the following quotes from Identify common examples of Debt and Equity Instruments.
practicing skills #1 want to own their own business the Chief Financial Officers (CFOs) Debt Instruments generally have fixed returns due to fixed interest rates.
(get a raise of hands). Ask them of the respective corporations: Examples:
what type of business organization 1. Unilever: “Finance plays a •Treasury Bonds and Treasury Bills are issued by the Philippine
is owned by one person who critical role across every government. These bonds and bills have usually low interest rates and
operates it for his or her own aspect of our business. We have very low risk of default since the government assures that these will
profit. enable the business to turn be paid.
Forms of business organizations: our ambition and strategy •Corporate Bonds are issued by publicly listed companies. These bonds
1. Sole Proprietorship - A business into sustainable, consistent usually have higher interest rates than Treasury bonds.
owned by one person and and superior performance”
operated for his or her own profit. - Jean-Marc Huët Equity Instruments generally have varied returns based on the
2. Partnership - A business owned (Unilever) performance of the issuing company.
by two or more people and 2. Jollibee: “It’s very exciting Types of equity instruments: •Preferred Stock has priority over a
operated for profit. because you are not just common stock in terms of claims over the assets of a company.
3. Corporation – An entity created thinking of today but what •Holders of Common Stock on the other hand are the real owners of the
by law owned by shareholders. the company will need in company. If the company’s growth is spurring, the common stockholders
the future” - Ysmael V. will benefit on the growth.
Ask the learners if they recall how Baysa (Morales, 2013)
they can be shareholders of a 3. Globe Telecom:
corporation “Yesterday’s solutions are
 Corporations may either be never adequate for the
 future” - Albert De
Larrazabal (Klobucher,
2015)
4. SM Corporation: “Now, we
don’t go out because we
privately owned or publicly
need funds. We go out
owned.
because it’s an
Wealth Maximization – overall
opportunity.” – Jose T. Sio
objective of the shareholders.
(Montealegre, 2015)
Let the learners reflect on the
quotes cited and mention how
critical and dynamic working in the
finance field is.
E.Discussing new concepts and Factors that influence market price Functions of a Financial Manager Primary Market - Financial market in which securities are initially issued;
practicing skills #2 Controllable by Management 1. Financing – to determine the only market in which the issuer is directly involved in the transaction.
Uncontrollable External Factors the appropriate capital Public offering - The sale of either bonds or stocks to the general public.
• profitability structure of the company Private placement - The sale of a new security directly to an investor or
• having a good liquidity and and to raise funds from group of investors.
reasonable leverage position debt and equity. Secondary market - Financial market in which preowned securities (those
• dividends 2. Investing that are not new issues) are traded.
• competent management which 1. Investing Money market - A financial relationship created between suppliers and
affects the company’s operating • Short term users of short-term funds.
efficiency investments: Capital market - A market that enables suppliers and users of long-term
• coming up with corporate plans 1. Plan for expected funds to make transactions.
that improve the business excess in cash using
prospects of the company Financial Planning Financial Institutions
tools such as Identify examples of financial institutions:
Uncontrollable External Factors budgeting and Commercial Banks - Individuals deposit funds at commercial banks,
• macroeconomic conditions forecasting which use the deposited funds to provide commercial loans to firms and
• political stability 2. Choose which type personal loans to individuals, and purchase debt securities issued by
• prospects of the industry where of investment should it firms or government agencies.
the company operates invest in that would Insurance Companies - Individuals purchase insurance (life, property and
• general market sentiment secure the best profits casualty, and health) protection with insurance premiums.
• flow of foreign funds invested in • Long term Mutual Funds - Mutual funds are owned by investment companies which
the Philippine stock market investments: Prepare a enable small investors to enjoy the benefits of investing in a diversified
capital budgeting portfolio of securities purchased on their behalf by professional
Discuss how each factor influences analysis to determine if investment managers. Pension Funds - Financial institutions that receive
market price the long term payments from employees and invest the proceeds on their behalf.
Profitability investment will be Other financial institutions include pension funds like Government
• Profit is a measure of the profitable Service Insurance System (GSIS) and Social Security System (SSS), unit
financial performance of a 3. Operating investment trust fund (UITF), investment banks, and credit unions,
 company for a period of time.
(Income Statements and Cash Flow
Statements of companies A, B and
C on page 7).

Role of Financial Management

Ask the learners, given the factors
that influence market price, how
will the company ensure that such
B. Operating - determine among others.
objectives will be achieved?
how to finance working
 Financial management
capital accounts such as Role of Financial Managers
deals with decisions that
accounts receivable and  Financial managers make financing decisions that require funding
are supposed to maximize
inventories (short term vs. from investors in the financial markets.
the value of shareholders’
long term) Role of Financial Markets
wealth. These decisions
4. Dividend Policies  The financial markets provide a forum in which firms can issue
will ultimately affect the
Dividend Policies - These securities to obtain the funds that they need and in which
markets perception of the
determine when the investors can purchase securities to invest their funds.
company and influence the
company should declare Role of Investors
share price.
cash dividends. Investors provide the funds that are to be used by financial managers to
 The goal of financial
finance corporate growth
management is to
maximize the value of
shares of stocks.
 Managers of a corporation
are responsible for making
the decisions for the
company that would lead
towards shareholders’
wealth maximization
F. Developing mastery
(Leads to Formative Assessment 3)
G. Finding practical applications of Financing decisions in their daily
concept and skills in daily living allowance.
H. Making generalizations and Finance is concerned with Financial manager has its vital roles Financial managers make financing decisions that require funding from
abstractions about the lesson decisions about: and functions in the entire investors in the financial markets, financial institutions and financial
organizations. It emphasizes each instruments.
a. How much of their position is working for the interest
earnings they spend of the person above them
b. How much they save
or how much they
 need

c. How they invest their

savings

d. How they raise

additional funds they
need

Ask the learners the following:

Integration of Learning
1. Aside from the factors
Ask the learners the following:
mentioned during class,
1. Explain why shareholder
what other factors can
wealth maximization
influence the investor’s
I. Evaluating Learning should be the overriding Short Quiz on Financial Institutions, Markets, and Instrument on pages 27
perception on the
objective of management. – 32.
company’s performance
2. What other positions can
which would ultimately
you think of that are
affect share price?
related to financial
2. Why is the study of finance
management?
important to you?
Go to a businessman in your
locality. Ask who is in charge of the
finances of the business. Interview
J. Additional activities for application or the “Chief Financial Officer (“CFO”)
remediation or the Vice-President for Finance”
and ask them to report about their
roles and functions within the
organization.

V. REMARKS

VI. REFLECTION

A. No of learners who earned 80% in

the evaluation
B. No. learners who require additional
activities for remediation who scored
below 80%

C. Did the remedial lessons work? No.

of learners who have caught up with
the lesson

D. No. of learner who continue to

require remediation.

E.Which of my teaching strategies

worked well? Why did these work?

F. What difficulties did I encounter

which my principal or supervisor can
help me solve?

G. What innovation or localized

materials did I used/discovered which
I wish to share with other teachers?

Prepared by:

GROUP 1 Class D Members: Candy B. Cabatbat

Binero E. Dayao
Ma. Cristina C. Dominguez
Anne G. Dungca
Justine Allen M. Pineda
Raulito P. Ramos
Helen B. Tanglao