WGU C708 Unit 2 Questions and
Answers Rated A
What do financial managers do? ✔✔prepare financial statements, business activity reports, and
forecasts
monitor financial details to ensure that legal requirements are met
supervise employees who do financial reporting and budgeting
review company financial reports and seek ways to reduce costs
analyze market trends to find opportunities for expansion or for acquiring other companies
help management make financial and investment decisions
Important Skills for Financial Managers ✔✔Analytical skills, Communication, Attention to detail,
Math skills, Organizational skills.
principal-agent problem ✔✔difficulties in motivating one party (the "agent"), to act on behalf of
another (the "principal").
Agency Costs ✔✔the costs of the conflict of interest between stockholders and management
shareholders/stockholders ✔✔those having title to one or more shares of stock in a corporation;
combined, they represent ownership of the corporation
bondholder ✔✔the firm's creditors
9 major financial institutions ✔✔Central Banks, Retail and Commercial Banks, Internet Banks,
Credit Unions, Savings and Loan Associations, Investment Banks and Companies, Brokerage
Firms, Insurance Companies, Mortgage Companies
Answers Rated A
What do financial managers do? ✔✔prepare financial statements, business activity reports, and
forecasts
monitor financial details to ensure that legal requirements are met
supervise employees who do financial reporting and budgeting
review company financial reports and seek ways to reduce costs
analyze market trends to find opportunities for expansion or for acquiring other companies
help management make financial and investment decisions
Important Skills for Financial Managers ✔✔Analytical skills, Communication, Attention to detail,
Math skills, Organizational skills.
principal-agent problem ✔✔difficulties in motivating one party (the "agent"), to act on behalf of
another (the "principal").
Agency Costs ✔✔the costs of the conflict of interest between stockholders and management
shareholders/stockholders ✔✔those having title to one or more shares of stock in a corporation;
combined, they represent ownership of the corporation
bondholder ✔✔the firm's creditors
9 major financial institutions ✔✔Central Banks, Retail and Commercial Banks, Internet Banks,
Credit Unions, Savings and Loan Associations, Investment Banks and Companies, Brokerage
Firms, Insurance Companies, Mortgage Companies
