lOMoAR cPSD| 61371432
WGU D775 Intro to Business Finance: Key concepts and
Applications | Verified study set with complete solutions |
A+ Graded | 2026 Updates | 100% correct
What to expect from the course:
1. Go over how financial ratios are used to manage a business
- Understand 5 major types of ratios and what factors of the firm they measure to help manage
businesses - Define key ratios
- use and understand finance jargon
2. Learn how to evaluate projects to determine which ones will create value for your firm
- learn the time value of money and the intuition behind it
- apply time value of money to the concept of capital budgeting
- 3 main methods companies use to decide which project to invest in
3. How to finance the projects that have been chosen
- 2 primary sources of financing for companies—debt and equity
- both have costs to the company and how the goal is to pick the source that will create the
lowest cost for financing which will maximize the value of the company
OA Percentages per Topic
- Describes Systems, Structure, Roles, and Impact in Business – 29%
- Uses of Financial Ratios to Manage a Business – 36%
- Applies Time Value of Money Concepts to Business – 20%- Describes Capital Budgeting –
16%
Tips:
- The formulas will be provided on the OA so don’t stress about memorizing them
- Know the ratios and how they work like the back of your hand
- Know the different types of markets
- Know the difference between compounding v. discounting
Section 1: Identifies systems, Structure, Roles, and Impact on Business
Lesson 1 – What is Finance?
, lOMoAR cPSD| 61371432
Accounting v. Finance
Accounting Finance
Focuses on systematic recording, reporting, Concerned with the management of assets
and analysis of financial transactions and liabilities as well as the planning and
strategizing for future growth and stability
Accountants ensure that financial statements Financial professionals aim to optimize the
are accurate and comply with established use of financial resources to achieve the org’s
standards and regulations objectives, balancing risk, and return to
enhance value
Emphasizes historical data which offers a Focuses on leveraging the information for
detailed view of a company’s financial effective resource management and future
performance and position over specific planning
periods
Provides necessary information to perform Interprets the data; activities include:
financial analysis investment analysis, risk management, capital
raising, and budgeting
Ensures transparency and compliance in Focuses on leveraging the information for
financial reporting effective resource management and future
planning
, lOMoAR cPSD| 61371432
Three Types of Finance:
Personal finance – the management of individual or household financial activities
- includes: budgeting, saving, investing, and planning for major life events (i.e.
education,retirement, and purchasing property)
Public finance – the management of a government’s revenues, expenditures, and debt through
various government and quasi government institutions
- includes: tax collection, government spending, budgeting, and public debt
issuance
Business finance – the management of the financial activities and strategies of companies
- includes: capital investment decisions, financing methods, dividend policies, and
risk management
, lOMoAR cPSD| 61371432
Business finance is the area of the business in which:
1. Financial measures are used to help management make decisions (ratio analysis)
2. Financial analysts use mathematical models to select what projects to invest in (capital
budgeting)
3. Financial analysts use the cost of capital to determine whether these projects should be
financed with debt or equity and which type of each
Three roles of business finance:
1. Using financial ratios to manage the business
2. Applying skills with time value of money to determine which projects to invest in
3. Controlling the risk associated with projects by computing the cost of capital to determine
howto fund the chosen projects
WGU D775 Intro to Business Finance: Key concepts and
Applications | Verified study set with complete solutions |
A+ Graded | 2026 Updates | 100% correct
What to expect from the course:
1. Go over how financial ratios are used to manage a business
- Understand 5 major types of ratios and what factors of the firm they measure to help manage
businesses - Define key ratios
- use and understand finance jargon
2. Learn how to evaluate projects to determine which ones will create value for your firm
- learn the time value of money and the intuition behind it
- apply time value of money to the concept of capital budgeting
- 3 main methods companies use to decide which project to invest in
3. How to finance the projects that have been chosen
- 2 primary sources of financing for companies—debt and equity
- both have costs to the company and how the goal is to pick the source that will create the
lowest cost for financing which will maximize the value of the company
OA Percentages per Topic
- Describes Systems, Structure, Roles, and Impact in Business – 29%
- Uses of Financial Ratios to Manage a Business – 36%
- Applies Time Value of Money Concepts to Business – 20%- Describes Capital Budgeting –
16%
Tips:
- The formulas will be provided on the OA so don’t stress about memorizing them
- Know the ratios and how they work like the back of your hand
- Know the different types of markets
- Know the difference between compounding v. discounting
Section 1: Identifies systems, Structure, Roles, and Impact on Business
Lesson 1 – What is Finance?
, lOMoAR cPSD| 61371432
Accounting v. Finance
Accounting Finance
Focuses on systematic recording, reporting, Concerned with the management of assets
and analysis of financial transactions and liabilities as well as the planning and
strategizing for future growth and stability
Accountants ensure that financial statements Financial professionals aim to optimize the
are accurate and comply with established use of financial resources to achieve the org’s
standards and regulations objectives, balancing risk, and return to
enhance value
Emphasizes historical data which offers a Focuses on leveraging the information for
detailed view of a company’s financial effective resource management and future
performance and position over specific planning
periods
Provides necessary information to perform Interprets the data; activities include:
financial analysis investment analysis, risk management, capital
raising, and budgeting
Ensures transparency and compliance in Focuses on leveraging the information for
financial reporting effective resource management and future
planning
, lOMoAR cPSD| 61371432
Three Types of Finance:
Personal finance – the management of individual or household financial activities
- includes: budgeting, saving, investing, and planning for major life events (i.e.
education,retirement, and purchasing property)
Public finance – the management of a government’s revenues, expenditures, and debt through
various government and quasi government institutions
- includes: tax collection, government spending, budgeting, and public debt
issuance
Business finance – the management of the financial activities and strategies of companies
- includes: capital investment decisions, financing methods, dividend policies, and
risk management
, lOMoAR cPSD| 61371432
Business finance is the area of the business in which:
1. Financial measures are used to help management make decisions (ratio analysis)
2. Financial analysts use mathematical models to select what projects to invest in (capital
budgeting)
3. Financial analysts use the cost of capital to determine whether these projects should be
financed with debt or equity and which type of each
Three roles of business finance:
1. Using financial ratios to manage the business
2. Applying skills with time value of money to determine which projects to invest in
3. Controlling the risk associated with projects by computing the cost of capital to determine
howto fund the chosen projects
