D076 BUS 2040 Finance Skills for Managers OA (Qns & Ans) 2025 - WGUD076 BUS 2040 Finance Skills for Managers OA (Qns & Ans) 2025 - WGUD076 BUS 2040 Finance Skills for Managers OA (Qns & Ans) 2025 - WGU
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
,1. What is the primary goal of financial management in a
corporation?
A. Maximizing shareholder wealth
B. Maximizing profits
C. Reducing costs
D. Increasing market share
Correct ANS: A. Maximizing shareholder wealth
Rationale: The primary financial goal in a corporation is to
maximize shareholder wealth, typically reflected in the
company’s stock price.
2. When evaluating a potential investment, which of the following
cash flow analysis methods considers the time value of money?
A. Payback Period
B. Net Present Value (NPV)
C. Accounting Rate of Return
D. Operating Cash Flow
, Correct ANS: B. Net Present Value (NPV)
Rationale: NPV considers the time value of money by
discounting future cash flows back to their present value.
3. Which of the following risk management techniques involves
spreading exposure across different financial instruments to
reduce risk?
A. Hedging
B. Diversification
C. Insurance
D. Speculation
Correct ANS: B. Diversification
Rationale: Diversification involves spreading investments
across various financial instruments to minimize risk.
4. Which financial instrument gives the holder the right, but not
the obligation, to buy or sell a stock at a predetermined price
before a specific date?
A. Future
B. Option
C. Swap
Correct ANS: B. Option
Rationale: Options provide the right to buy or sell an asset at
a pre-determined price on or before a certain date, but this isn’t an
obligation.
5. The Capital Asset Pricing Model (CAPM) is used to:
A. Calculate a firm’s average cost of capital
B. Estimate the cost of equity capital
C. Predict future stock prices
D. Assess dividend policy
Correct ANS: B. Estimate the cost of equity capital
Rationale: CAPM estimates the cost of equity, which reflects
the risk-return relationship of an asset.
Fill-in-the-Blank Questions:
6. ________ is the concept that a dollar today is worth more than
a dollar in the future due to its earning potential.
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