Name: Santos, Colene Anne R.

Section: 12 ABM B Mapagkumbaba

What I Know
1. C
2. C
3. C
4. D
5. C
What’s In

SHAREHOLDERS

elects OWNERS

BOARD OF DIRECTORS

appoints MANAGERS

SANTOS

PRESIDENT (CEO)

VP FOR VP FOR VP FOR

VP FOR FINANCE
MARKETING PRODUCTION ADMINISTRATION

My position in the company is President or CEO. As a president, the possible duties and
obligations that I need to accomplish are overseeing the operations of a company and ensuring
that the strategies as approved by the board are implemented as planned, performing all areas of
management such as planning, organizing, staffing, directing, and controlling, and representing
the company in professional, social, and civic activities.

What’s New
1. Give at least three important reasons why the board of directors is the highest policy-making
body in a corporation.
The board of directors acts on behalf of the shareholders of the company, making overall
policy decisions and providing oversight. The importance as to why the board of directors is the
highest policy-making body in a corporation are because they are responsible for financial
control, responsible for other crucial obligations which help to maintain the efficient running of
the corporation, and the board of directors serve as a guide in order to avoid the risks that the
company wants to take. With great board of directors, an entity can have people who are totally
focused on what it takes to be successful.
2. In your own opinion, how is a director elected in the board of directors?
Since the board of directors is under the shareholders, in my opinion, a director is elected
based upon the votes of the shareholders in general meeting or through a proxy statement. This is
also the same when a director can be removed from their own position.
3. Based on your own idea, identify four important roles of a financial manager and explain each
function briefly.
Based on my own idea, the four important roles of a financial manager are investing (way
to spend money), financial planning, financing (growing money), and protecting finances.
Investing functions as the financial manager’s way or how to spend money whether it is short-
term or long-term investment. Financial planning serves as a monetary scheme and idea to sort
out the finances of the company. Financing functions to grow money and how the financial
manager plans to expand the finances. Lastly, protecting finances functions as to protect an
entity’s money from any risk that can be avoided.

What’s More
Discuss briefly the rules of each position identified. Write your answer on the space
provided for each item.
1. Shareholders A shareholder (also known as a
stockholder) is a person or entity (including a
company) legally holding one or more shares
in the public or private company's share
capital. Shareholders can be referred to as
corporate members. They are in the topmost
hierarchy wherein they elect and appoint the
board of directors.
2. Board of Directors A board of directors is a body of people
chosen to represent shareholders. The board is
a regulatory body that usually meets to set
policies for corporate management and
oversight at regular intervals. There must be a
 board of directors for any public corporation.
3. President (CEO) The primary duties of a president or
CEO include making important corporate
decisions, overseeing a company's overall
activities and capital, and serving as the key
contact point between the board of directors
(the board) and corporate.
4. VP for Marketing The vice president for marketing’s
responsibility is to create and execute a
coherent marketing strategy to raise
awareness of the brand. Setting immediate
and long-term internal team priorities.
Designing and updating the budget of the
Marketing department.
5. VP for Production The development and manufacture of
all goods produced by that organization is
managed and organized by a vice president of
production plans. The Production VP shall
correspond with both internal and external
parties and shall normally be handled by two
or three senior producers or executive
producers.
6. VP for Administration The vice president for administration
lead, direct and tutor administrative workers
in their duties and responsibilities. Integrate
and manage the administrative, finance,
advertising and marketing departments' roles.
Develop new methods to boost the
administrative staff 's efficiency.
7. VP for Finance A vice president of finance is
responsible for managing the financial reports
of the company and forecasting potential
financial investments and plans. The role of
VP of finance is similar to that of Chief
Financial Officer (CFO) and the positions are
merged into one position in smaller firms.

What I Have Learned

1. Explain why shareholder wealth maximization should be the overriding objective of
management.
The shareholder wealth maximization objective notes that management should aim to
maximize the present value of the company's shareholders' projected future returns. The
shareholder wealth maximization should be the overriding objective of the management because
shareholders wealth maximization is linked to the concept of building value in a company.
Shareholders’ wealth, with increasing sales, are adding more economic value to the business and
the share price can increase assuming that markets are productive and are correctly measuring a
company's performance at creating value. It is considered that shareholders is one of several
stakeholders these days who should be happy and successful when running a business and trying
to generate value. Good governance also allows them to ensure that the interests of other
stakeholders, such as creditors, consumers, vendors, regulators, and relationships, are properly
handled.
2. What other positions can you think of that are related to financial management?
Having adequate knowledge about financial management may pursue career path in
various corporate and business companies. The other positions I can think of that are related to
financial management are roles such as bank teller, accounting clerk, payroll partner, finance
officer, financial consultant, financial analyst, and investment analyst that can be applied for.

What I Can Do
1. How do you think the stock market react to this place of news?
First off, the stock market refers to the set of markets and exchanges where the
acquisition, sale and issuance of shares of publicly traded companies takes place on a regular
basis. The stock market will react accordingly, it will increase as well. People or investors who
bought Puregold stocks before the earning surge will earn a lot if they sell it to other investors
that is according to how many stocks they have. Generally, good earnings cause the stock price
to go up (and vice versa). Stock prices tend to rise when earnings results exceed market
expectations while disappointing earnings results tend to lower share prices. Based on market
expectations, stock prices move. Thus, this is how the stock market react on the place of news of
the Puregold earning surge last 2014.
2. What do you think will happen to Puregold’s stock price after this announcement?
Since Puregold’s earnings drastically surged, its stock price increased as well. The term
stock price refers to the current price traded on the market for a share of the stock. When its
shares are released, a publicly traded company is given a price, an assignment of its value that
ideally represents the value of the company itself. In relation to a variety of different factors,
including shifts within the economy as a whole, changes within markets, political events,
conflict, and environmental changes, the price of a stock will go up and down.

Assessment
1. D 3. B
2. A 4. B
5. B

6. D
7. D
8. A
9. C
10. C