D076 – Finance Question and answers
verified to pass 2025/2026
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? - correct answer ✔Business finance
What is the primary difference between finance and accounting? - correct answer ✔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? - correct answer ✔Investments
What is the primary goal of the financial manager of a firm? - correct answer ✔To maximize owner
wealth
What should be the main question a firm asks when considering any investment decision? - correct
answer ✔Do the benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - correct answer ✔To maximize satisfaction from
products purchased and services obtained
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project? - correct answer ✔Making financing decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange? - correct answer ✔Private equity
Which task does a financial manager perform when assessing the costs and benefits of potential
projects? - correct answer ✔Making investment decisions
, What tool can you use to understand your overall personal cash flows? - correct answer ✔Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - correct answer ✔Investing in
a savings account
You want to buy a house, so 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? - correct answer
✔Financing
What area of finance involves deciding which assets to invest in to create wealth in the future? - correct
answer ✔Investments
Hannah is the financial 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? - correct answer ✔Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200 each month to
reach their goal of taking their children to visit their grandparents in Spain next summer. What is the
objective of setting such a goal? - correct answer ✔To maximize individual utility
Which professional works with individuals to help them achieve their financial goals? - correct answer
✔Financial planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car, but he is still trying
to decide how to pay for it. He has barely over $30,000 in his bank account. He can either take out an
auto loan from a bank or use a mix of cash and an auto loan. - correct answer ✔Financing a goal
verified to pass 2025/2026
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? - correct answer ✔Business finance
What is the primary difference between finance and accounting? - correct answer ✔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? - correct answer ✔Investments
What is the primary goal of the financial manager of a firm? - correct answer ✔To maximize owner
wealth
What should be the main question a firm asks when considering any investment decision? - correct
answer ✔Do the benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - correct answer ✔To maximize satisfaction from
products purchased and services obtained
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project? - correct answer ✔Making financing decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange? - correct answer ✔Private equity
Which task does a financial manager perform when assessing the costs and benefits of potential
projects? - correct answer ✔Making investment decisions
, What tool can you use to understand your overall personal cash flows? - correct answer ✔Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - correct answer ✔Investing in
a savings account
You want to buy a house, so 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? - correct answer
✔Financing
What area of finance involves deciding which assets to invest in to create wealth in the future? - correct
answer ✔Investments
Hannah is the financial 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? - correct answer ✔Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200 each month to
reach their goal of taking their children to visit their grandparents in Spain next summer. What is the
objective of setting such a goal? - correct answer ✔To maximize individual utility
Which professional works with individuals to help them achieve their financial goals? - correct answer
✔Financial planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car, but he is still trying
to decide how to pay for it. He has barely over $30,000 in his bank account. He can either take out an
auto loan from a bank or use a mix of cash and an auto loan. - correct answer ✔Financing a goal
