3rd UNIT TEST NOTES

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PHYSICAL SCIENCE

Lesson 1

Physical Science – studies non-living systems

Cosmology – a branch of astronomy that involves the origin and evolution of the universe, from
the Big Bang to today and on into the future

 3 cosmic stages:
1. Big bang nucleosynthesis – formed the light elements (H, He, and Li)
2. Stellar formation and evolution – formed the elements heavier than Be to Fe
3. Stellar explosion or Supernova – formed the elements heavier than Fe

Big Bang Theory

− explains how the elements were initially formed the formation of different elements
involved many nuclear reactions, including fusion, fission, and radioactive decay
− part of its proof is the amounts of H and He we have in the universe today

Matter – composed of varying combinations of any of the 118 elements identified to be present
in the universe, including earth

1. solid
2. liquid
3. gas

Atoms – the building blocks of matter

1. proton
2. neutron
3. electron

Nuclear reactions – are process in which a nucleus either combines with another nucleus
(through nuclear fusion) or splits into smaller nuclei (through nuclear fission)

Radioactivity – processes involve the emission of energetic particles or an atom

Superscript – atomic mass (a)

Subscript – atomic number (z)

 Radioactive particles:
 Electron – negative charge
 Proton – positive charge
 Neutron – no charge
 Alpha particle – high-speed particle consisting of 2 protons and 2 neutrons
 Beta particle – high-speed energy electron
 Gamma ray – high-energy stream of protons
 Positron – positive-charged electron
 Common type of nuclear reactions:
Lesson 2

YEAR AUTHOR
Asserted that all things are composed of four
450 BC Empedocles
primal: earth, air, fire, and water
Proposed that all matter is made up of very
400 BC Democritus small particles called atoms, which cannot be
divided into smaller units
Proposed that all matter was continuous and
80-320 BC Aristotle can be further divided infinitely into smaller
pieces
1799 Joseph Proust Proposed law of definite proportions
Formulated the atomic theory and proposed
1808 John Joseph Dalton
the law of multiple proportions
Arranged the known elements in a periodic
1869 Dmity Mendeleev
table based on their atomic mass
Observed that radioactivity causes some
1890s Antoine Becquerel & Marie Curie
atoms to break down spontaneously
1895 Wilheim Rontgen Discovered x-rays
1897 John Joseph Thompson Discovered electrons
Proposed an atomic model that shows
Neis Bohr electrons move in concentric orbits around
1913
the nucleus
Henry Gwyn Jeffreys Moseley Used x-rays spectra to study atomic structure
1919 Ernest Rutherford Discovered protons
1932 James Chadwick Discovered neutrons
Suggested the plum pudding model of the
1904 John Joseph Thompson atom (negative electrons dispersed in a
positive structure)
Found that the charge of an electron is equal
1908-1917 Robert Milikan
to C
1910-1911 Ernest Rutherford Observed that atoms are mostly empty space

Law of multiple proportions – when two elements combine to form more than one compound,
the different masses of the element that combines with a fixed mass of the other element are a
ratio of small whole numbers

Lesson 3

Singularity – a point in space and/or a moment in time where the universe was infinitely hot
and dense

Inflation – is a theory of exponential expansion of space in the early universe

Nucleosynthesis – is the process that creates new atomic nuclei from pre-existing nucleons,
primarily protons and neutrons

Atomic number (z) – indicates the number of protons in an atom

Neutral atom, proton=electrons

Atomic mass (a) – is equal to the sum of the number of protons and neutrons
BUSINESS FINANCE

Lesson 1

 Area of finance:
 Financial management
 Capital market
 Investment

Financial management – applying management concepts to budgeting, forecasting, managing,

and controlling a company’s financial resources to achieve its objective

 Budgeting
 Managing
 Forecasting
 Supervising
 Firm’s financial resources to:
 Maximize the profit
 3 essential components:
1. reducing the cost of finance
2. ensuring sufficient funds
3. utilizing funds appropriately

Financial Manager – plays role in the company’s goal, policies and success

Investing decision – financial managers determine the amount of short-term and long-term
investments made with the available cash

 short-term investment – related to working capital management, affecting liquidity and

investing
 long-term investment – involve capital planning, such as purchasing property or
machinery

Financing decision – involves decisions that ensure the availability of money as and when
required

Dividend policy decision – a company’s BOD, with the guidance and recommendation of a
financial manager, will decide if the company will pay dividend or not

 Functions of fm:
 Evaluating capital requirement – the finance manager evaluates capital
requirements to optimize a company’s revenue
 Evaluating capital constitution – can be determined after gauging capital
requirements
 Determining the source of capital – sourcing funds is the most significant risk
in financial management, so the finance manager considers each source’s
relative merits and demerits
 Taking investment decisions – financial managers will decide on relevant
projects and investment opportunities for the company to provide safe and
lucrative returns
 Managing surplus money – in the event of a company’s net gains, a financial
manager manages excess funds by declaring dividends to investors after
establishing the dividend and bonus rate, the company’s goals for diversification,
innovation, or market expansion
 Managing liquidity – a finance manager balances liquidity and reflowing funds
in the business.
 Financial control – monitoring and controlling financing activities is vital to
financial management. It is possible to accomplish financial control using cost
and profit control, ratio analysis, and financial forecasting methods
Lesson 2

Financial system

− encompassing the instruments, institutions, markets and rules governing the conduct of
trade that expedite the routing of funds from buyers to sellers and savers to lenders
− is composed of banking institutions and nonbank financial intermediaries, including
commercial banks, specialized government banks, thrift banks, and rural banks

The Obras Pias

− first credit institution in the Philippines

− started by Father Juan Fernandez de Leon in 1754-1820

Banco Español-Filipino de Isabela II

− the first Philippine bank in 1851

− also known as Bank of the Philippine Islands
− the oldest standing bank in the Philippines and in the whole of Southeast Asia
− established on August 1, 1851, named after the mother of the Spanish King Alfonso XII
 Functions of financial system:
 Credit – is supplied by the financial system to 3 types of borrowers: consumers,
business, government
 Payments – takes the form if currency, checking accounting, and various
transactions media
 Money creation – (money) artificially created by the financial system through the
services of supplying credit and providing a mechanism of making payments
 Savings – this made through the means of accepting deposits and loan
agreements with the use of various financial instruments
 Components of financial system:
 Financial instruments
 Financial sector
o Financial markets – a mechanism by which savings in one sector of the
economy
o Financial institution – an organization which funds in the form of money
or claims in money area assembled and transferred from individuals with
surplus funds to other individuals and firms needing extra funds
 Rules governing the conduct of trade
 4 sectors of economy:
1. Household
2. Firms
3. Government
4. Foreigners

Surplus spending units (SSU) – the lenders are those whose revenue exceeded their
expenditures providing enough reason

Deficit spending units (DSU) – the borrowers have expenditures exceeding their revenue

Direct finance – lending by ultimate borrowers with no intermediary

Indirect finance – are called financial intermediation

 Kinds of financial intermediation:

 Denomination intermediation – the intermediation performed by financial
intermediaries where large-denomination claims in the form of loans and
securities are accepted from borrowings
 Default risk intermediation – the intermediation performed by the financial
intermediary where risky claims in the form of loans and security are accepted
against borrowing customers while simultaneously issuing relatively safe financial
instruments to savers to attract their funds
 Maturity intermediation – the practice of borrowing comparatively short-term
funds from savers and making long-term loans to borrowers who require a
lengthy commitment of funds
 Information intermediation – the process by which financial intermediaries
substitute their skill in the marketplace for that of savers who frequently have
neither the timer nor the access to relevant information about market condition
and investment opportunities
 Categories of financial intermediaries:
 Depository intermediaries – they are called as such because the sources of
their loanable funds (secondary securities) consist of deposits received from
business, household, and government
 Contractual intermediaries – this type enter into the contract with their
customers to promote savings and/or financial protection against loss of life or
property
 Secondary intermediaries – they depend heavily on their financial
intermediaries like commercial banks for loanable funds
 Investment intermediaries – offers the public securities that can be held
indefinitely as a long-term investment and which can be sold quickly when
customer needs his funds returned investments intermediaries

Banks – are financial institutions that provide a range of services to individuals, businesses,
and governments

 Principles of banking business:

 Acceptance of deposit
 Lending and credit
 Payment services
 Interest and process
 Safety and security
 Types of banks:
 Government banks – these banks are owned or controlled by the government
and often have specific mandates related to promoting certain sectors or public
interest
 Universal banks – offer a wide range of banking and financial services,
including commercial banking, investment banking, and trust services
 Commercial banks – primarily provide services to businesses, individuals, and
institutions
 Thrift banks – focus on retail banking services, offering savings, and time
deposits, consumer loans, housing loans, and other retail financial products
 Rural banks – these banks serve rural areas and often cater to agricultural and
community needs
 Cooperative banks – are owned by their members, who may be farmers,
cooperative, or other community organizations
PE