WGU - Financial Management C214 Pre-Assessment (PA) with
Rationale!
Study online at https://quizlet.com/_dmazgl
1. How can a private
firm appropriately
maximize
shareholder value? 4.
2. Why are American
regu-lators focused
on inter-national
investing in a global
marketplace?
3. What is one of the
two basic types of
financial
instruments?
,By making decisions that keep the American people are interested in investing their money in
control of the business with the companies and assets from around the world. Regulators want
owners. to make sure this happens safely and fairly.
Rationale: The main idea here is Bonds
that many private companies aim
to make their owners Rationale: One of the two basic types of financial instruments is
(shareholders) richer by increasing called "bonds." Think of bonds like a kind of investment where
the company's value. To do this, you lend your money to a company or government, and in
they need to make smart decisions return, they promise to pay you back with some extra money
about things like strategy, (interest) over time. It's one way people can grow their
investments, and money money.
management. They also want to keep
control of the company in the
hands of the owners. However, they
have to balance this with running
the company eflciently and being
responsible to other people like
employees and customers. So, it's
about making money for the
owners while being ethical and
smart about it. But how they do it
can vary depending on the
company's situation and goals.
Because international investing in a
global marketplace is the concern of
American investors
Rationale: American regulators pay
attention to international investing
in the global marketplace because
it's something American investors
care about. In other words, they
are concerned about it because
, WGU - Financial Management C214 Pre-Assessment (PA) with
Rationale!
Study online at https://quizlet.com/_dmazgl
What are the likeliest Consumer prices will decrease
outcomes if a company
outsources the manufac- Rationale: Consumer prices will decrease: When a company
outsources
turing of its products to a manufacturing to a foreign country, it can often produce
goods at a
foreign lower cost. This cost savings can be passed on to consumers,
country? meaning the prices of products may go down. So, as a result,
consumers are likely to pay less for these products.
Domestic employment will decrease
Rationale: Domestic employment will decrease: When a
company moves its manufacturing abroad, it may not need
as many workers in its home country. This can lead to a
decrease in domestic employment, as there are fewer jobs
available for people in the company's home country.
5. What do the content and The assets, liabilities, and equity at a point in time
structure of a balance
sheet report? Rationale: The assets, liabilities, and equity at a point in time: A
balance sheet is like a snapshot of a company's financial
situation at a specific moment. It tells you about the things a
company owns (assets), the debts and obligations it owes
(liabilities), and the portion of the com-pany owned by its
shareholders (equity) at that exact point in time. It's like taking a
picture of the company's financial health at a particular
moment.
6. A company reported
an increase in The change will decrease cash flows from operations by $5,000.
accounts re-
ceivable of $5,000 during Rationale: When a company's accounts receivable (the money
, it's sup-
the recent period. Half of posed to receive from customers) goes up by $5,000, it
means the
this amount is company is waiting for more money. But since only half of that
expected to be amount is expected to come in during the next period, it
collected next peri- means the company won't have all of that money right away.
od. How will this So, in the "cash flows from op-
change
Rationale!
Study online at https://quizlet.com/_dmazgl
1. How can a private
firm appropriately
maximize
shareholder value? 4.
2. Why are American
regu-lators focused
on inter-national
investing in a global
marketplace?
3. What is one of the
two basic types of
financial
instruments?
,By making decisions that keep the American people are interested in investing their money in
control of the business with the companies and assets from around the world. Regulators want
owners. to make sure this happens safely and fairly.
Rationale: The main idea here is Bonds
that many private companies aim
to make their owners Rationale: One of the two basic types of financial instruments is
(shareholders) richer by increasing called "bonds." Think of bonds like a kind of investment where
the company's value. To do this, you lend your money to a company or government, and in
they need to make smart decisions return, they promise to pay you back with some extra money
about things like strategy, (interest) over time. It's one way people can grow their
investments, and money money.
management. They also want to keep
control of the company in the
hands of the owners. However, they
have to balance this with running
the company eflciently and being
responsible to other people like
employees and customers. So, it's
about making money for the
owners while being ethical and
smart about it. But how they do it
can vary depending on the
company's situation and goals.
Because international investing in a
global marketplace is the concern of
American investors
Rationale: American regulators pay
attention to international investing
in the global marketplace because
it's something American investors
care about. In other words, they
are concerned about it because
, WGU - Financial Management C214 Pre-Assessment (PA) with
Rationale!
Study online at https://quizlet.com/_dmazgl
What are the likeliest Consumer prices will decrease
outcomes if a company
outsources the manufac- Rationale: Consumer prices will decrease: When a company
outsources
turing of its products to a manufacturing to a foreign country, it can often produce
goods at a
foreign lower cost. This cost savings can be passed on to consumers,
country? meaning the prices of products may go down. So, as a result,
consumers are likely to pay less for these products.
Domestic employment will decrease
Rationale: Domestic employment will decrease: When a
company moves its manufacturing abroad, it may not need
as many workers in its home country. This can lead to a
decrease in domestic employment, as there are fewer jobs
available for people in the company's home country.
5. What do the content and The assets, liabilities, and equity at a point in time
structure of a balance
sheet report? Rationale: The assets, liabilities, and equity at a point in time: A
balance sheet is like a snapshot of a company's financial
situation at a specific moment. It tells you about the things a
company owns (assets), the debts and obligations it owes
(liabilities), and the portion of the com-pany owned by its
shareholders (equity) at that exact point in time. It's like taking a
picture of the company's financial health at a particular
moment.
6. A company reported
an increase in The change will decrease cash flows from operations by $5,000.
accounts re-
ceivable of $5,000 during Rationale: When a company's accounts receivable (the money
, it's sup-
the recent period. Half of posed to receive from customers) goes up by $5,000, it
means the
this amount is company is waiting for more money. But since only half of that
expected to be amount is expected to come in during the next period, it
collected next peri- means the company won't have all of that money right away.
od. How will this So, in the "cash flows from op-
change
