A REACTION PAPER

IN FINANCE 11

BASIC FINANCE

SUBMITTED TO:

DR. RUBY D. DIMAS

SUMITTED BY:

JACQUELINE D. SEPTIMO

BSHRM III
Why we study this subject which is the BASIC FINANCE? Is will be a part of our career

someday as hoteliers and restaurateurs? The answer for the second question is a big yes but why?

Because as future hoteliers and restaurateurs we must knowledge in managing money.

According to Webster, finance may be defined as a noun, means management of money, the

monetary support for an enterprise, or the money resources a government, company or person.

And as a verb, finance means to provide capital for a person or enterprise.

In these subjects, it consists of eleven chapters. As a whole I prefer the chapter 2. The

introduction to finance because in this chapter, it caught my attention because in the first meeting

of our classes this is the first lesson we tackle. From the definition of the finance, I've learned

that the word finance is not only concerning in money but as a whole it is defined as the efficient

acquisition, allocations and utilization of funds. There's a three names who viewed finance. It is

Shetty et all (1995), viewed finance as the operational or practical side of economics, the

practical science of the production and distribution. Saldana (1997), state that finance is the

efficient allocation of scarce resources. Added, as a discipline concerned with identifying,

evaluating and managing sources and use of cash in order to increase the value of the enterprise

to its present owner. And last. Medina (2007), as the study of the acquisition and investment of

cash for the purpose of enhancing value and wealth. There's a function entails which is first

allocation of available funds, second, acquisitions of needed funds and lastly, utilization of funds

to achieve set goals.

There's a two classification of finance, first one is as a form of negotiations, under this there's a

two the direct and indirect finance, and second as a form of user, under this the public and

private finance. Finance in the business world. Business is any lawful economic activity that
involves rendering services, buying and selling goods. Then the types of business organization.

As to nature or purpose under this, we have seven in the services, trading or merchandizing,

manufacturing, banking and finance, mining and extractive industries, construction companies

and genetic industries. There are a different insurance companies, the life and non-life insurance

companies. And the as to ownership, it’s have only two, the sole or single proprietorship and

partnership.

After this chapter, I have learned that there's such a things that you've consider in handling or

managing funds or money as a business man or an entrepreneur. Finance is not only concerned

in money or amount of it but of course how you handle and manage it well.