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WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM NEWEST
VERSION -2025/2026- 100+ QUESTIONS AND VERIFIED
ANSWERS 100% CORRECT GUARANTEED SUCCESS
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 - The manager is deciding where to get the funds to
support a new project, which means the manager is making a financing decision
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange?
private equity - Private equity deals with investments in firms that are privately
held and whose ownership is not yet bought or sold on any public stock exchange
Which task does a financial manager perform when assessing the costs and
benefits of potential projects?
Making investment decisions -Understanding how benefits weigh up against costs
is the first priority before moving forward with financing and managerial
decisions.
Why might a manager manipulate accounting procedures?
To make the company's performance look good -
A manager might manipulate accounting procedures to inflate the earnings of a
company, which would optimize bonuses and stock-price-related benefits for
management.
Which situation is an example of an agency problem?
Managers follow their own interests instead of the owners' interest. - An agency
problem occurs when the agent (a manager) does not act in the best interest of
the owners.
, 2
Maria and Mateo are setting financial goals. They decide that they need to save
$200 each month to reach their goal of taking their children to visit their
grandparents in Spain next summer. What is the objective of setting such a goal?
To maximize individual utility -While everyone has different personal financial
goals, the objectives of such goals is to maximize individual utility.
Which professional works with individuals to help them achieve their financial
goals?
Financial planner - Professional financial planners work with individuals to help
them achieve their financial goals.
1/1
Omar is about to purchase a new car for $30,000. He knows he wants to buy the
car, but he is still trying to decide how to pay for it. He has barely over $30,000 in
his bank account. He can either take out an auto loan from a bank or use a mix of
cash and an auto loan.
Financing a goal - He has already made a decision to purchase the car and is now
deciding on financing options.
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 - Business finance is the area of finance that deals with uses and
sources of funding to increase the value of the firm.
What is the primary difference between finance and accounting?
Finance focuses on the future, while accounting is generally backward-looking. -
finance is the management and allocation of capital with the objectives of
investing, forecasting, budgeting, saving, lending, and borrowing.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns?
Investments - investments is the area of finance that seeks to create wealth in the
future by deciding where to allocate money
, 3
What is the primary goal of the financial manager of a firm?
To maximize owner wealth - The financial manager should make decisions based
on the primary goal of maximizing owner wealth.
What should be the main question a firm asks when considering any investment
decision?
Do the benefits of this investment outweigh the costs? - For any investment, you
should expect to receive a benefit worth at least as much as the initial cost.
What is the primary aim of personal finance goals?
maximize satisfaction from products purchased and services obtained- the
objective of personal financial goals is to maximize one's utility.
What does the term legal describe?
An action that is in accordance with the laws and rules set by an authority. -
Jack is a personal financial advisor. He is with a new client, and the client is asking
him what he recommends for her portfolio. Jack knows that his firm's investment
product performed well last year, but its performance changes from year to
year—some years it is better than the market, and some years it is not. Also, the
fee to invest in the product is higher than the fee to invest in a market index fund.
If Jack sells his company's investment product, the customer's loyalty to the
company is doubled. Which actions should Jack take?
Give a personal recommendation of the company's product while explaining its
performance relative to the market over the past several years.-
Giving the recommendation to sell a product is fine, but you should never hide
other information. Sharing information about index funds and comparing your
product to others is a fair action to take for the client.
A company is trying to finance a project with a mortgage loan from a bank. The
company's assessment of the project indicates that the company may experience
several years of loss until the project becomes profitable. This means that the
WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM NEWEST
VERSION -2025/2026- 100+ QUESTIONS AND VERIFIED
ANSWERS 100% CORRECT GUARANTEED SUCCESS
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 - The manager is deciding where to get the funds to
support a new project, which means the manager is making a financing decision
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange?
private equity - Private equity deals with investments in firms that are privately
held and whose ownership is not yet bought or sold on any public stock exchange
Which task does a financial manager perform when assessing the costs and
benefits of potential projects?
Making investment decisions -Understanding how benefits weigh up against costs
is the first priority before moving forward with financing and managerial
decisions.
Why might a manager manipulate accounting procedures?
To make the company's performance look good -
A manager might manipulate accounting procedures to inflate the earnings of a
company, which would optimize bonuses and stock-price-related benefits for
management.
Which situation is an example of an agency problem?
Managers follow their own interests instead of the owners' interest. - An agency
problem occurs when the agent (a manager) does not act in the best interest of
the owners.
, 2
Maria and Mateo are setting financial goals. They decide that they need to save
$200 each month to reach their goal of taking their children to visit their
grandparents in Spain next summer. What is the objective of setting such a goal?
To maximize individual utility -While everyone has different personal financial
goals, the objectives of such goals is to maximize individual utility.
Which professional works with individuals to help them achieve their financial
goals?
Financial planner - Professional financial planners work with individuals to help
them achieve their financial goals.
1/1
Omar is about to purchase a new car for $30,000. He knows he wants to buy the
car, but he is still trying to decide how to pay for it. He has barely over $30,000 in
his bank account. He can either take out an auto loan from a bank or use a mix of
cash and an auto loan.
Financing a goal - He has already made a decision to purchase the car and is now
deciding on financing options.
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 - Business finance is the area of finance that deals with uses and
sources of funding to increase the value of the firm.
What is the primary difference between finance and accounting?
Finance focuses on the future, while accounting is generally backward-looking. -
finance is the management and allocation of capital with the objectives of
investing, forecasting, budgeting, saving, lending, and borrowing.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns?
Investments - investments is the area of finance that seeks to create wealth in the
future by deciding where to allocate money
, 3
What is the primary goal of the financial manager of a firm?
To maximize owner wealth - The financial manager should make decisions based
on the primary goal of maximizing owner wealth.
What should be the main question a firm asks when considering any investment
decision?
Do the benefits of this investment outweigh the costs? - For any investment, you
should expect to receive a benefit worth at least as much as the initial cost.
What is the primary aim of personal finance goals?
maximize satisfaction from products purchased and services obtained- the
objective of personal financial goals is to maximize one's utility.
What does the term legal describe?
An action that is in accordance with the laws and rules set by an authority. -
Jack is a personal financial advisor. He is with a new client, and the client is asking
him what he recommends for her portfolio. Jack knows that his firm's investment
product performed well last year, but its performance changes from year to
year—some years it is better than the market, and some years it is not. Also, the
fee to invest in the product is higher than the fee to invest in a market index fund.
If Jack sells his company's investment product, the customer's loyalty to the
company is doubled. Which actions should Jack take?
Give a personal recommendation of the company's product while explaining its
performance relative to the market over the past several years.-
Giving the recommendation to sell a product is fine, but you should never hide
other information. Sharing information about index funds and comparing your
product to others is a fair action to take for the client.
A company is trying to finance a project with a mortgage loan from a bank. The
company's assessment of the project indicates that the company may experience
several years of loss until the project becomes profitable. This means that the
