WGU C201 Business Acumen Exam |
180+ Questions and Answers | Rated
and Graded A+ | Latest 2024
What is one role of a financial manage?
- Correct Answer - Analyzing major investment decisions
Which two activities are finance activities rather than accounting
activities? Choose 2 answers
- Correct Answer - Making capital market investments, creating a
financial plan
Which three sources should a business consider when seeking a
long-term source? Choose 3 answers
- Correct Answer - Hedge funds, Venture capital, public sale of
stocks
In which type of security should a business invest its excess cash
in anticipation of paying off the current year's tax liability?
,- Correct Answer - Commercial paper
Which role does the underwriter play in financing business
operations when using the capital market to sell securities to the
public?
- Correct Answer - It insures the value of the security to the
investor
Why should a manager use financial controls in a firm's financial
plan?
- Correct Answer - to determine the accuracy of forecasted
revenues, costs, and expenses
What does a CFO use in financial planning to determine the
expected level of revenue for future periods?
- Correct Answer - Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers?
- Correct Answer - capped the debit card fee at 21 cents
,Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees? Choose 2 answers
- Correct Answer - Selling company stock because a co-worker
told the employee the company's new drug is failing in clinical
trial, buying stock in the public company for which the employee
works based on a conversation the employee overheard at a
cocktail party between two of the company's executives.
Which two risks does a firm face by funding the purchase of long-
term assets with short-term funding sources?
- Correct Answer - Volatility of interest rates, frequent renewals
Which funding source should a firm use if it wishes to secure
long-term financing while retaining all of its equity?
- Correct Answer - private equity fund
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business?
, - Correct Answer - It has a maturity that ranges between 1 and
270 days, it carries interest rates that are 1 to 2 percent less than
bank loans, it can make large amounts of money available
What should a firm do to manage the risk of using leverage when
exploring long-term funding options?
- Correct Answer - Ensure that earnings remain larger than
interests payments
Which financial statement should an investor examine to identify
the liabilities of a firm?
- Correct Answer - The balance sheet
A company wishes to determine if it should fund a project with
bonds or equity. Which business concept would it most likely use
to assist in the decision?
- Correct Answer - leverage
Which calculation determines a firm's return on equity?
- Correct Answer - net income divided by average equity
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