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Activity 1.3 Instruction: Think and create your own bank company name and describe the function of Finance Manager or describe the Financial Management of your bank. MT. TRAIL COOP BANK (Bank name)and stocks issued by various business and governmental units. F 10. Credit unions are the largest type of financial intermediary handling individual savings. Additional Activities Direction: Summarize the roles of individual/ position (Organizational structure) involve in the decision making of the company. 12Additional Activities Direction: Write and explain the 6 steps in Financial Planning process for your own Business (Choose any business).The role of the VP for Finance/Financial Manager is to determine the appropriate capital structure of the company. Capital structure refers to how much of your total assets financed by debt and how much is financed by equity. To be able to acquire assets, our funds must have come somewhere. If it has bought using cash from our pockets, it has financed by equity. On the other hand. if we used money from our borrowings, the asset bought has financed by debt. What are the functions of Financial Managers ? 1. Financing decisions- include making decisions as to how to finance long-term investments and working capital-which deals with the day-to-day operations of the company. 2. Investing Decisions To minimize the probability of failure, long-term investments have supported by a capital budgeting analysis. 3. Operating Decisions - deal with the daily operations of the company especially on how to finance working capital accounts such as accounts receivable and inventories. 5ting 4. Dividend Policies - Dividend is a part of profits that are available for distribution, to equity shareholders. The Finance manager must decide whether the firm should distribute all the profits or retain them or distribute a portion and retain the balance. OVERVIEW OF THE FINANCIAL SYSTEM SAVERS Financial Users of Funds Intermediaries (Borrowers/Investors) Households -Individuals -Banks -Households Corporations/Companies -Insurance Companies -Individuals Government Agencies -Stock Exchange -Corporations/Companies -Stock brokerage firms -Government Agencies -Mutual Funds The financial system links the savers and the users of funds. Savings can come from households, individuals, companies, government agencies, or any other entity whose cash inflows are greater than their cash outflows. The financial system through financial intermediaries provides a mechanism by which these savings can be channeled to users of funds, borrowers, and investors. Some of the financial instruments issued by users of funds such as the shares of stocks and corporate bonds of publicly listed companies and the debt securities issued by the National Government has traded. Differentiate the Financial instruments, financial institutions and financial markets