3/31/25, 9:28 WGU D076 |
AM
WGU D076 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (292)
Which area of finance deals with sources Business finance
of funding and the capital structure
of
corporations and seeks to increase the
value of a firm to its owners?
What is the primary difference between Finance focuses on the future, while accounting is generally backward-looking.
finance and accounting?
Which subspecialty of finance Investments
primarily involves deciding which assets
will create more wealth and earn
positive returns?
An area of finance that deals with Investments
investment allocation and asset pricing.
An area of finance that involves Financial Institutions
organizations that accept deposits, offer
investment products, loan money, or
broker financial transactions.
An area of finance that involves Corporate Finance.
activities used to increase shareholder
wealth.
What is the primary aim of To maximize satisfaction from products purchased and services obtained
personal finance goals?
What should be the main question a firm Do the benefits of this investment outweigh the costs?
asks when considering any investment
decision?
What is the primary goal of the financial To maximize owner wealth
manager of a firm?
1/
8
, 3/31/25, 9:28 WGU D076 |
AM
What are three main tasks that a financial making investment decisions,
manager of a firm does in order to making financing decisions, and
achieve the goal of the firm, which is managing working capital.
to maximize shareholder wealth?
Who is the highest ranking officer in CFO, Chief Financial Officer
corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she
What does the CFO do? 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 Making investment decisions
perform when assessing the costs and
benefits of potential projects?
Which financial career focuses on Private equity
investing capital into firms whose shares
are not currently sold on any public stock
exchange?
Which task does a financial manager Making financing decisions
perform when choosing to obtain a loan
to purchase a piece of equipment for
a new project?
What are the three most important Treasury, Corporate, and Stocks
types of securities?
Why does the SEC oversee Financial To protect Investors
Markets?
What are the purposes of financial To provide liquidity and determine prices
markets?
In which financial market are securities Secondary market
such as stocks and bonds are traded after
their initial issuance?
What kind of market primarily allows Money market
institutions to borrow and lend in
the short term?
A local start-up company just hit its five- Primary market
year anniversary and is planning an initial
public offering sometime this year. In
order to issue public stock, which
market will the company use?
An institution that accepts and pays interest on deposits of money, as well as
What is a depository institution?
extends loans
What is the primary role of financial To conduct financial transactions such as investments, loans, and deposits
institutions?
A large corporation is looking to merge Investment bank
with another large corporation. Which
financial institution can help them do this?
Which type of financial institution deals Pension fund
mainly with providing for retirement
through employers?
How do insurance companies pay They use returns from stocks and bonds.
policyholders when a claim is made?
2/
8
AM
WGU D076 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (292)
Which area of finance deals with sources Business finance
of funding and the capital structure
of
corporations and seeks to increase the
value of a firm to its owners?
What is the primary difference between Finance focuses on the future, while accounting is generally backward-looking.
finance and accounting?
Which subspecialty of finance Investments
primarily involves deciding which assets
will create more wealth and earn
positive returns?
An area of finance that deals with Investments
investment allocation and asset pricing.
An area of finance that involves Financial Institutions
organizations that accept deposits, offer
investment products, loan money, or
broker financial transactions.
An area of finance that involves Corporate Finance.
activities used to increase shareholder
wealth.
What is the primary aim of To maximize satisfaction from products purchased and services obtained
personal finance goals?
What should be the main question a firm Do the benefits of this investment outweigh the costs?
asks when considering any investment
decision?
What is the primary goal of the financial To maximize owner wealth
manager of a firm?
1/
8
, 3/31/25, 9:28 WGU D076 |
AM
What are three main tasks that a financial making investment decisions,
manager of a firm does in order to making financing decisions, and
achieve the goal of the firm, which is managing working capital.
to maximize shareholder wealth?
Who is the highest ranking officer in CFO, Chief Financial Officer
corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she
What does the CFO do? 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 Making investment decisions
perform when assessing the costs and
benefits of potential projects?
Which financial career focuses on Private equity
investing capital into firms whose shares
are not currently sold on any public stock
exchange?
Which task does a financial manager Making financing decisions
perform when choosing to obtain a loan
to purchase a piece of equipment for
a new project?
What are the three most important Treasury, Corporate, and Stocks
types of securities?
Why does the SEC oversee Financial To protect Investors
Markets?
What are the purposes of financial To provide liquidity and determine prices
markets?
In which financial market are securities Secondary market
such as stocks and bonds are traded after
their initial issuance?
What kind of market primarily allows Money market
institutions to borrow and lend in
the short term?
A local start-up company just hit its five- Primary market
year anniversary and is planning an initial
public offering sometime this year. In
order to issue public stock, which
market will the company use?
An institution that accepts and pays interest on deposits of money, as well as
What is a depository institution?
extends loans
What is the primary role of financial To conduct financial transactions such as investments, loans, and deposits
institutions?
A large corporation is looking to merge Investment bank
with another large corporation. Which
financial institution can help them do this?
Which type of financial institution deals Pension fund
mainly with providing for retirement
through employers?
How do insurance companies pay They use returns from stocks and bonds.
policyholders when a claim is made?
2/
8
