WGU D076 Questions and Correct Answers & Latest Updated
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Course
WGU D076
Institution
WGU D076
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?
o :## Business finance
What is the primary difference between finance and accounting?
o :## Finance focuses on the future, while accounting is ...
WGU D076 Questions and Correct Answers &
Latest Updated
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?
o :## Business finance
What is the primary difference between finance and accounting?
o :## 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?
o :## Investments
An area of finance that deals with investment allocation and asset pricing.
o :## Investments
An area of finance that involves organizations that accept deposits, offer investment
products, loan money, or broker financial transactions.
o :## Financial Institutions
An area of finance that involves activities used to increase shareholder wealth.
o :## Corporate Finance.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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What is the primary aim of personal finance goals?
o :## To maximize satisfaction from products purchased and services obtained
What should be the main question a firm asks when considering any investment decision?
o :## Do the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm?
o :## 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?
o :## making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance?
o :## CFO, Chief Financial Officer
What does the CFO do?
o :## 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?
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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o :## Making investment decisions
Which financial career focuses on investing capital into firms whose shares are not currently
sold on any public stock exchange?
o :## 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?
o :## Making financing decisions
What are the three most important types of securities?
o :## Treasury, Corporate, and Stocks
Why does the SEC oversee Financial Markets?
o :## To protect Investors
What are the purposes of financial markets?
o :## To provide liquidity and determine prices
In which financial market are securities such as stocks and bonds are traded after their initial
issuance?
o :## Secondary market
What kind of market primarily allows institutions to borrow and lend in the short term?
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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o :## 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?
o :## Primary market
What is a depository institution?
o :## An institution that accepts and pays interest on deposits of money, as well as extends
loans
What is the primary role of financial institutions?
o :## 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?
o :## Investment bank
Which type of financial institution deals mainly with providing for retirement through
employers?
o :## Pension fund
How do insurance companies pay policyholders when a claim is made?
o :## They use returns from stocks and bonds.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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