D362 Corporate Finance Exam 2026 120 Questions – Business Structures, Capital Budgeting, Financing, Governance Guide | WGU

This document contains approximately 120 exam-style questions with verified answers for WGU D362 Corporate Finance Section 1. It covers core finance topics including business organization structures, capital budgeting, financing decisions, working capital management, and corporate governance, as presented across pages 1–22 of the document. The material provides a comprehensive and in-depth review of foundational corporate finance principles aligned with WGU coursework. It begins with business structures, comparing S-corporations and C-corporations, including key distinctions such as double taxation in C-corporations and pass-through taxation in S-corporations (pages 1–3). It also highlights advantages like limited liability and access to capital, as well as disadvantages such as regulatory complexity and taxation implications. Additionally, the guide explores corporate governance and organizational roles, including responsibilities of the board of directors (reporting to shareholders), the controller (preparing financial statements), and the treasurer (raising capital), as outlined on pages 4–5 and 15. It also addresses the role of audit committees under Sarbanes-Oxley and ethical considerations such as conflicts of interest and insider trading (pages 16–17). A significant portion of the content focuses on key financial decision-making areas. Capital budgeting decisions—such as purchasing new machinery—are explained as investments in productive assets (page 9). Financing decisions are covered in depth, including choices between debt and equity funding (page 10). The document also details working capital management, emphasizing the management of current assets and liabilities to maintain liquidity (page 10–11). The document further examines startup and growth financing strategies such as bootstrapping (funding from personal sources and family), staged funding, venture capital, and initial public offerings (IPOs), including their benefits and drawbacks (pages 7–8 and 11–12). It also discusses private equity, loan covenants, and the implications of going public, such as increased regulatory requirements and short-term performance pressure. Additional topics include stakeholder management, employee-focused initiatives (e.g., diversity and inclusion), and mechanisms to align management with shareholder interests, such as stock-based compensation (page 16). The guide also addresses external factors beyond management control, such as regulatory environments, and their impact on financial decision-making (page 18). The structured Q&A format mirrors actual WGU exam conditions, making this document highly effective for revision, concept mastery, and exam preparation. The content aligns closely with standard corporate finance textbooks such as Principles of Corporate Finance by Brealey, Myers, and Allen, commonly used in undergraduate business programs. This document is highly relevant for students enrolled in: WGU D362 Corporate Finance Business administration and finance degree programs Accounting and financial management courses MBA foundational finance courses Professional finance and business certification programs It is especially useful for WGU students, finance majors, and business professionals preparing for exams or aiming to strengthen their understanding of corporate finance concepts, decision-making frameworks, and organizational structures. Keywords: corporate finance exam, business structures, S corporation, C corporation, capital budgeting, financing decisions, working capital, corporate governance, IPO, venture capital, bootstrapping, financial management, shareholder value, board of directors, financial statements