WGU D076 ACTUAL EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT)
/A+ GRADE ASSURED
Which area of finance deals with sources of funding and the capital structure of corporations and
seeks to increase the value of a firm to its owners? ✔✔Business finance
What is the primary difference between finance and accounting? ✔✔Finance focuses on the
future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create more wealth
and earn positive returns? ✔✔Investments
An area of finance that deals with investment allocation and asset pricing. ✔✔Investments
An area of finance that involves organizations that accept deposits, offer investment products,
loan money, or broker financial transactions. ✔✔Financial Institutions
An area of finance that involves activities used to increase shareholder wealth. ✔✔Corporate
Finance.
,What is the primary aim of personal finance goals? ✔✔To maximize satisfaction from products
purchased and services obtained
What should be the main question a firm asks when considering any investment decision?
✔✔Do the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? ✔✔To maximize owner wealth
What are three main tasks that a financial manager of a firm does in order to achieve the goal of
the firm, which is to maximize shareholder wealth? ✔✔making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? ✔✔CFO, Chief Financial Officer
What does the CFO do? ✔✔The CFO is responsible for all the financial decisions made by the
firm. He or she serves as the CEO's right-hand person in all money matters and oversees the
financial analysis and decision-making of the firm.
,Which task does a financial manager perform when assessing the costs and benefits of potential
projects? ✔✔Making investment decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold
on any public stock exchange? ✔✔Private equity
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece
of equipment for a new project? ✔✔Making financing decisions
What are the three most important types of securities? ✔✔Treasury, Corporate, and Stocks
Why does the SEC oversee Financial Markets? ✔✔To protect Investors
What are the purposes of financial markets? ✔✔To provide liquidity and determine prices
In which financial market are securities such as stocks and bonds are traded after their initial
issuance? ✔✔Secondary market
, What kind of market primarily allows institutions to borrow and lend in the short term?
✔✔Money market
A local start-up company just hit its five-year anniversary and is planning an initial public
offering sometime this year. In order to issue public stock, which market will the company use?
✔✔Primary market
What is a depository institution? ✔✔An institution that accepts and pays interest on deposits of
money, as well as extends loans
What is the primary role of financial institutions? ✔✔To conduct financial transactions such as
investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which financial
institution can help them do this? ✔✔Investment bank
Which type of financial institution deals mainly with providing for retirement through
employers? ✔✔Pension fund
DETAILED VERIFIED ANSWERS (100% CORRECT)
/A+ GRADE ASSURED
Which area of finance deals with sources of funding and the capital structure of corporations and
seeks to increase the value of a firm to its owners? ✔✔Business finance
What is the primary difference between finance and accounting? ✔✔Finance focuses on the
future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create more wealth
and earn positive returns? ✔✔Investments
An area of finance that deals with investment allocation and asset pricing. ✔✔Investments
An area of finance that involves organizations that accept deposits, offer investment products,
loan money, or broker financial transactions. ✔✔Financial Institutions
An area of finance that involves activities used to increase shareholder wealth. ✔✔Corporate
Finance.
,What is the primary aim of personal finance goals? ✔✔To maximize satisfaction from products
purchased and services obtained
What should be the main question a firm asks when considering any investment decision?
✔✔Do the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? ✔✔To maximize owner wealth
What are three main tasks that a financial manager of a firm does in order to achieve the goal of
the firm, which is to maximize shareholder wealth? ✔✔making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? ✔✔CFO, Chief Financial Officer
What does the CFO do? ✔✔The CFO is responsible for all the financial decisions made by the
firm. He or she serves as the CEO's right-hand person in all money matters and oversees the
financial analysis and decision-making of the firm.
,Which task does a financial manager perform when assessing the costs and benefits of potential
projects? ✔✔Making investment decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold
on any public stock exchange? ✔✔Private equity
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece
of equipment for a new project? ✔✔Making financing decisions
What are the three most important types of securities? ✔✔Treasury, Corporate, and Stocks
Why does the SEC oversee Financial Markets? ✔✔To protect Investors
What are the purposes of financial markets? ✔✔To provide liquidity and determine prices
In which financial market are securities such as stocks and bonds are traded after their initial
issuance? ✔✔Secondary market
, What kind of market primarily allows institutions to borrow and lend in the short term?
✔✔Money market
A local start-up company just hit its five-year anniversary and is planning an initial public
offering sometime this year. In order to issue public stock, which market will the company use?
✔✔Primary market
What is a depository institution? ✔✔An institution that accepts and pays interest on deposits of
money, as well as extends loans
What is the primary role of financial institutions? ✔✔To conduct financial transactions such as
investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which financial
institution can help them do this? ✔✔Investment bank
Which type of financial institution deals mainly with providing for retirement through
employers? ✔✔Pension fund
