WGU: Business Finance-D775
Assessment Test Questions with
Correct Answers Already Graded A+
2026
1
,Time orientation of financial decision-making in business finance ANSWER >> Future
projections and planning
Use of financial ratios in business operations ANSWER >> To evaluate and improve
business performance
Primary objective of business finance ANSWER >> Maximizing shareholder value
Corporate bonds ANSWER >> Financing operations and expansions
Financial derivatives ANSWER >> Performance of underlying assets, indexes, or rates
Future as a type of financial derivative ANSWER >> A standardized contract to buy or
sell an asset at a specified future date and price
Distinguishing feature of hedge funds ANSWER >> They employ diverse strategies and
are available to sophisticated investors.
Funds achieve diversification ANSWER >> By pooling money from multiple investors to
invest in a variety of assets
Speculative bonds, or junk bonds ANSWER >> Higher risk and higher returns
Advantage of investing in exchange-traded funds (ETFs) ANSWER >> They can be
bought and sold throughout the trading day like stocks.
2
, Example of a dealer market ANSWER >> National Association of Securities Dealers
Automated Quotations (NASDAQ)
Example of an auction market ANSWER >> New York Stock Exchange
Primary function of the Securities and Exchange Commission (SEC) ANSWER >> To
regulate and oversee the securities industry
Commodity Futures Trading Commission (CFTC) ANSWER >> Overseeing futures and
options markets
Role of insurance companies in the financial system ANSWER >> Underwriting policies
to protect against risks
How insurance companies generate income ANSWER >> By collecting premiums and
investing these funds
Key characteristic of private equity raising ANSWER >> It involves securing funds from
private investors like venture capitalists.
Legal compliance in finance ANSWER >> It ensures adherence to laws and regulations.
Corporate social responsibility (CSR) ANSWER >> The obligation to contribute
positively to society
Guiding principle for business professionals in ethical dilemmas ANSWER >> Upholding
honesty, fairness, and accountability
Significance of financial ratios in assessing risk ANSWER >> They identify potential
economic hazards within the company.
3
Assessment Test Questions with
Correct Answers Already Graded A+
2026
1
,Time orientation of financial decision-making in business finance ANSWER >> Future
projections and planning
Use of financial ratios in business operations ANSWER >> To evaluate and improve
business performance
Primary objective of business finance ANSWER >> Maximizing shareholder value
Corporate bonds ANSWER >> Financing operations and expansions
Financial derivatives ANSWER >> Performance of underlying assets, indexes, or rates
Future as a type of financial derivative ANSWER >> A standardized contract to buy or
sell an asset at a specified future date and price
Distinguishing feature of hedge funds ANSWER >> They employ diverse strategies and
are available to sophisticated investors.
Funds achieve diversification ANSWER >> By pooling money from multiple investors to
invest in a variety of assets
Speculative bonds, or junk bonds ANSWER >> Higher risk and higher returns
Advantage of investing in exchange-traded funds (ETFs) ANSWER >> They can be
bought and sold throughout the trading day like stocks.
2
, Example of a dealer market ANSWER >> National Association of Securities Dealers
Automated Quotations (NASDAQ)
Example of an auction market ANSWER >> New York Stock Exchange
Primary function of the Securities and Exchange Commission (SEC) ANSWER >> To
regulate and oversee the securities industry
Commodity Futures Trading Commission (CFTC) ANSWER >> Overseeing futures and
options markets
Role of insurance companies in the financial system ANSWER >> Underwriting policies
to protect against risks
How insurance companies generate income ANSWER >> By collecting premiums and
investing these funds
Key characteristic of private equity raising ANSWER >> It involves securing funds from
private investors like venture capitalists.
Legal compliance in finance ANSWER >> It ensures adherence to laws and regulations.
Corporate social responsibility (CSR) ANSWER >> The obligation to contribute
positively to society
Guiding principle for business professionals in ethical dilemmas ANSWER >> Upholding
honesty, fairness, and accountability
Significance of financial ratios in assessing risk ANSWER >> They identify potential
economic hazards within the company.
3
