Activity 1: JP MORGAN CHASE: Financial Partnerships in Action

1
FM 1000 -BUSINESS FINANCE

Activity 1
In this, you are given one case study with follow-up questions and additional 5 essay questions regarding the
topic you had last week. You are to submit the answers of your activity, October 20,2020 (until 10:00 pm).
Your answers are to be encoded on a short bond paper, 1 inch margin on all sides, with your name on the left
upper part. Limit your answers in 3-5 sentences, Times New Roman, 12. Upload your papers our google
classroom.
CASE STUDY
JP MORGAN CHASE: Financial Partnerships in Action
For consumers, there are checking accounts, mortgages, and auto loans. Businesses are offered investment
banking services and enterprise start-up loans. For governments, there is tax collection and payment processing.
JPMorgan Chase, one of the world’s largest financial services companies, serves individuals, business and
governments.
This global organization, with offices in more than 50 countries, had its beginnings in 1799. In recent years,
JPMorgan Chase expanded by buying several other banks and financial institutions. These purchases included
Chemical Bank, Manufacturers Hanover, Bank One, First Chicago, and National Bank of Detroit. As the
company grew, it offered more services.
For consumers, the company offers a wide variety of banking services. In addition to traditional savings and
checking accounts, JPMorgan Chase provides personal investment assistance, credit cards, insurance advice,
and various types of loans. Buying a home, purchasing a car, or financing a college education are all available
through JPMorgan Chase.
Investment banking is an important service offered to major companies. Serving as an investment manager,
JPMorgan Chase assists corporations with issuing stocks and bonds to raise needed capital. This service allows
companies to expand their operations, buy new equipment and market new products. When serving as an
investment banker, JPMorgan Chase earns fees and commissions.
While JPMorgan Chase serves the needs of big corporations, small businesses are also important customers.
“Chase Online” helps smaller companies to manage accounts, obtain loans and plan employee benefits. Also
available to small business owners are insurance services and assistance with planning retirement for their
employees.
The company’s international activities include global banking and foreign investments. JPMorgan Chase can
obtain global banking and foreign investments. JPMorgan Chase can obtain foreign currencies for its customers
through an international network of banks.
JPMorgan Chase also contributes to charity. Each year, over $140 million is donated to non-proﬁt organizations
in the U.S. and around the world. In addition, more than $3 billion of community development lending helps
with housing and business start-ups in lower income areas.
Use the case of JPMorgan Chase, to answer the following questions:
1. What are the benefits and concerns associated with a company buying other companies that become part
of its organization?
2. Which services of JPMorgan Chase might you consider using to assist you with your personal financial
planning activities?
Rhema Joy A. Langcao, CPA, MSAc
1
FM 1000 -BUSINESS FINANCE
3. Describe various sources and uses of funds for JPMorgan Chase.
4. What are the possible government regulations that may affect the business activities of JPMorgan
Chase?
5. JPMorgan Chase has asked you to
a. Identify an area of concern for the company.
b. Suggest actions that might be taken to address this concern.
Essay Questions:
1. Inflation rates can be deceptive. Many people face hidden inflation since the cost of necessities (food,
gas, health care), on which they spend most of their money, may rise at a higher rate than non-essential
items which could be dropping in price. Explain how the reported inflation rate could be much lower
than the actual cost-of-living increases experienced by consumers.
2. Assessing risk in various financial decision situations is important. Describe what is meant by the
following types of risk:
a. Inflation risk
b. Liquidity risk
c. Business failure risk
d. Global risk
3. What relationship exists between liquidity and the rate of return on an investment?
4. What actions might a person take to avoid using a check-cashing outlet or pawnshop?
5. Consumers pay some taxes directly, such as sales tax and income tax. What are some examples of
indirect taxes you might pay?
Rhema Joy A. Langcao, CPA, MSAc

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FM 1000 -BUSINESS FINANCE

Rhema Joy A. Langcao, CPA, MSAc

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