D076 – Finance QUESTIONS AND ANSWERS | 2025/2026
Which area of finance deals Business finance
with sources 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 Finance focuses on the future, while accounting is generally backward-
between finance and looking.
accounting?
Which subspecialty of Investments
finance primarily involves
deciding which assets will
create more wealth and earn
positive returns?
What is the primary goal of the To maximize owner wealth
financial manager of a firm?
What should be the main Do the benefits of this investment outweigh the costs?
question a firm asks when
considering any investment
decision?
What is the primary aim of To maximize satisfaction from products purchased and services
personal finance goals? obtained
Which task does a financial Making financing decisions
manager perform when
choosing to obtain a loan to
purchase a piece of
equipment for a new
project?
Which financial career focuses Private equity
on investing capital into firms
whose shares are not
currently sold on any public
stock exchange?
, Which task does a financial Making investment decisions
manager perform when
assessing the costs and
benefits of potential
projects?
What tool can you use to Budgeting
understand your overall
personal cash flows?
What is a reasonable Investing in a savings account
alternative to keeping an
emergency stash of cash?
You want to buy a house, so Financing
you obtain a mortgage for
which you can afford the
monthly payments. What
process have you engaged in
as part of your financial
decision-making?
What area of finance Investments
involves deciding which
assets to invest in to create
wealth in the future?
Hannah is the financial Making a financing decision
manager of a firm. A project
that she has recommended
has been approved and will
cost $5 million.
Since the company does not
have enough cash on reserve,
Hannah must figure out how
to raise enough money to
start the project. She can
choose whether to issue new
bonds, new stocks, a mortgage
loan, or some combination of
those options.
What task is Hannah
performing in this scenario?
Maria and Mateo are setting To maximize individual utility
financial goals. They decide
that they need to save $200
each month to reach their
Which area of finance deals Business finance
with sources 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 Finance focuses on the future, while accounting is generally backward-
between finance and looking.
accounting?
Which subspecialty of Investments
finance primarily involves
deciding which assets will
create more wealth and earn
positive returns?
What is the primary goal of the To maximize owner wealth
financial manager of a firm?
What should be the main Do the benefits of this investment outweigh the costs?
question a firm asks when
considering any investment
decision?
What is the primary aim of To maximize satisfaction from products purchased and services
personal finance goals? obtained
Which task does a financial Making financing decisions
manager perform when
choosing to obtain a loan to
purchase a piece of
equipment for a new
project?
Which financial career focuses Private equity
on investing capital into firms
whose shares are not
currently sold on any public
stock exchange?
, Which task does a financial Making investment decisions
manager perform when
assessing the costs and
benefits of potential
projects?
What tool can you use to Budgeting
understand your overall
personal cash flows?
What is a reasonable Investing in a savings account
alternative to keeping an
emergency stash of cash?
You want to buy a house, so Financing
you obtain a mortgage for
which you can afford the
monthly payments. What
process have you engaged in
as part of your financial
decision-making?
What area of finance Investments
involves deciding which
assets to invest in to create
wealth in the future?
Hannah is the financial Making a financing decision
manager of a firm. A project
that she has recommended
has been approved and will
cost $5 million.
Since the company does not
have enough cash on reserve,
Hannah must figure out how
to raise enough money to
start the project. She can
choose whether to issue new
bonds, new stocks, a mortgage
loan, or some combination of
those options.
What task is Hannah
performing in this scenario?
Maria and Mateo are setting To maximize individual utility
financial goals. They decide
that they need to save $200
each month to reach their
