WGU D076 OBJECTIVE ASSESSMENT
AND PRE ASSESSMENT FINAL EXAM
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
An area of finance that deals with investment allocation and asset pricing. - correct answer
✔Investments
An area of finance that involves organizations that accept deposits, offer investment products, loan
money, or broker financial transactions. - correct answer ✔Financial Institutions
An area of finance that involves activities used to increase shareholder wealth. - correct answer
✔Corporate Finance.
What is the primary aim of personal finance goals? - correct answer ✔To maximize satisfaction from
products purchased and services obtained
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 goal of the financial manager of a firm? - correct answer ✔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? - correct answer ✔making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - correct answer ✔CFO, Chief Financial Officer
What does the CFO do? - correct answer ✔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? - correct answer ✔Making investment 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 choosing to obtain a loan to purchase a piece of
equipment for a new project? - correct answer ✔Making financing decisions
What are the three most important types of securities? - correct answer ✔Treasury, Corporate, and
Stocks
Why does the SEC oversee Financial Markets? - correct answer ✔To protect Investors
, What are the purposes of financial markets? - correct answer ✔To provide liquidity and determine
prices
In which financial market are securities such as stocks and bonds are traded after their initial issuance? -
correct answer ✔Secondary market
What kind of market primarily allows institutions to borrow and lend in the short term? - correct
answer ✔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? - correct answer
✔Primary market
What is a depository institution? - correct answer ✔An institution that accepts and pays interest on
deposits of money, as well as extends loans
What is the primary role of financial institutions? - correct answer ✔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? - correct answer ✔Investment bank
Which type of financial institution deals mainly with providing for retirement through employers? -
correct answer ✔Pension fund
How do insurance companies pay policyholders when a claim is made? - correct answer ✔They use
returns from stocks and bonds.
Which financial institution ensures that a nation's economy remains healthy by controlling the amount
of money circulating in the economy? - correct answer ✔Central bank
AND PRE ASSESSMENT FINAL EXAM
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
An area of finance that deals with investment allocation and asset pricing. - correct answer
✔Investments
An area of finance that involves organizations that accept deposits, offer investment products, loan
money, or broker financial transactions. - correct answer ✔Financial Institutions
An area of finance that involves activities used to increase shareholder wealth. - correct answer
✔Corporate Finance.
What is the primary aim of personal finance goals? - correct answer ✔To maximize satisfaction from
products purchased and services obtained
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 goal of the financial manager of a firm? - correct answer ✔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? - correct answer ✔making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - correct answer ✔CFO, Chief Financial Officer
What does the CFO do? - correct answer ✔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? - correct answer ✔Making investment 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 choosing to obtain a loan to purchase a piece of
equipment for a new project? - correct answer ✔Making financing decisions
What are the three most important types of securities? - correct answer ✔Treasury, Corporate, and
Stocks
Why does the SEC oversee Financial Markets? - correct answer ✔To protect Investors
, What are the purposes of financial markets? - correct answer ✔To provide liquidity and determine
prices
In which financial market are securities such as stocks and bonds are traded after their initial issuance? -
correct answer ✔Secondary market
What kind of market primarily allows institutions to borrow and lend in the short term? - correct
answer ✔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? - correct answer
✔Primary market
What is a depository institution? - correct answer ✔An institution that accepts and pays interest on
deposits of money, as well as extends loans
What is the primary role of financial institutions? - correct answer ✔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? - correct answer ✔Investment bank
Which type of financial institution deals mainly with providing for retirement through employers? -
correct answer ✔Pension fund
How do insurance companies pay policyholders when a claim is made? - correct answer ✔They use
returns from stocks and bonds.
Which financial institution ensures that a nation's economy remains healthy by controlling the amount
of money circulating in the economy? - correct answer ✔Central bank
