(ACE FOR 2024/2025 EXAM REVIEW) WGU Business Acumen C201 - ch17, Exam Review Questions, graded A+

WGU Business Acumen C201 - ch17, Exam Review Questions, graded A+ Financial managers - -Executives who develop and implement their firm's financial plan and determine the most appropriate sources and uses of funds. They are among the most vital people on the corporate payroll. Risk-return trade-off - -Financial managers strive to maximize the wealth of their firm's shareholders by striking the optimal balance between risk and return. Financial plan - -A document that specifies the funds needed by a firm for a given period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds. Short-term assets - -Consists of cash and assets that can be, or are expected to be, converted into cash within a year. The major current assets are cash, marketable securities, accounts receivable, and inventory. Capital investment analysis - -Entails long-lived assets that are expected to produce economic benefits for more than one year. Managing international assets - -Today, firms often have assets worldwide. Managing international assets creates several challenges for the financial manager, one of the most important of which is the problem of exchange rates. Sources of funds - -There are two sources of funds: debt and equity. Debt capital consists of funds obtained through borrowing. Equity capital consist