WGU D775 INTRODUCTION TO BUSINESS
FINANCE FINAL EXAM SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
◉ Use of financial ratios in business operations . Answer: To evaluate
and improve business performance
◉ Primary objective of business finance . Answer: Maximizing
shareholder value
◉ Corporate bonds . Answer: Financing operations and expansions
◉ Financial derivatives . Answer: Performance of underlying assets,
indexes, or rates
◉ Future as a type of financial derivative . Answer: A standardized
contract to buy or sell an asset at a specified future date and price
◉ Distinguishing feature of hedge funds . Answer: They employ diverse
strategies and are available to sophisticated investors.
,◉ Funds achieve diversification . Answer: By pooling money from
multiple investors to invest in a variety of assets
◉ Speculative bonds, or junk bonds . Answer: Higher risk and higher
returns
◉ Advantage of investing in exchange-traded funds (ETFs) . Answer:
They can be bought and sold throughout the trading day like stocks.
◉ Example of a dealer market . Answer: National Association of
Securities Dealers Automated Quotations (NASDAQ)
◉ Example of an auction market . Answer: New York Stock Exchange
◉ Primary function of the Securities and Exchange Commission (SEC)
. Answer: To regulate and oversee the securities industry
◉ Commodity Futures Trading Commission (CFTC) . Answer:
Overseeing futures and options markets
◉ Role of insurance companies in the financial system . Answer:
Underwriting policies to protect against risks
, ◉ How insurance companies generate income . Answer: By collecting
premiums and investing these funds
◉ Key characteristic of private equity raising . Answer: It involves
securing funds from private investors like venture capitalists.
◉ Legal compliance in finance . Answer: It ensures adherence to laws
and regulations.
◉ Corporate social responsibility (CSR) . Answer: The obligation to
contribute positively to society
◉ Guiding principle for business professionals in ethical dilemmas .
Answer: Upholding honesty, fairness, and accountability
◉ Significance of financial ratios in assessing risk . Answer: They
identify potential economic hazards within the company.
◉ Use of financial ratios for decision-making by investors . Answer: To
assess the potential return on investment
◉ Key purpose of financial ratios in investment analysis . Answer: To
evaluate the company's profitability and growth prospects
FINANCE FINAL EXAM SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
◉ Use of financial ratios in business operations . Answer: To evaluate
and improve business performance
◉ Primary objective of business finance . Answer: Maximizing
shareholder value
◉ Corporate bonds . Answer: Financing operations and expansions
◉ Financial derivatives . Answer: Performance of underlying assets,
indexes, or rates
◉ Future as a type of financial derivative . Answer: A standardized
contract to buy or sell an asset at a specified future date and price
◉ Distinguishing feature of hedge funds . Answer: They employ diverse
strategies and are available to sophisticated investors.
,◉ Funds achieve diversification . Answer: By pooling money from
multiple investors to invest in a variety of assets
◉ Speculative bonds, or junk bonds . Answer: Higher risk and higher
returns
◉ Advantage of investing in exchange-traded funds (ETFs) . Answer:
They can be bought and sold throughout the trading day like stocks.
◉ Example of a dealer market . Answer: National Association of
Securities Dealers Automated Quotations (NASDAQ)
◉ Example of an auction market . Answer: New York Stock Exchange
◉ Primary function of the Securities and Exchange Commission (SEC)
. Answer: To regulate and oversee the securities industry
◉ Commodity Futures Trading Commission (CFTC) . Answer:
Overseeing futures and options markets
◉ Role of insurance companies in the financial system . Answer:
Underwriting policies to protect against risks
, ◉ How insurance companies generate income . Answer: By collecting
premiums and investing these funds
◉ Key characteristic of private equity raising . Answer: It involves
securing funds from private investors like venture capitalists.
◉ Legal compliance in finance . Answer: It ensures adherence to laws
and regulations.
◉ Corporate social responsibility (CSR) . Answer: The obligation to
contribute positively to society
◉ Guiding principle for business professionals in ethical dilemmas .
Answer: Upholding honesty, fairness, and accountability
◉ Significance of financial ratios in assessing risk . Answer: They
identify potential economic hazards within the company.
◉ Use of financial ratios for decision-making by investors . Answer: To
assess the potential return on investment
◉ Key purpose of financial ratios in investment analysis . Answer: To
evaluate the company's profitability and growth prospects
