WGU D076 FINANCE SKILLS FOR MANAGERS
QUESTIONS AND CORRECT ANSWERS
◉ Finance focuses on the future, while accounting is generally
backward-looking.
Answer: What is the primary difference between finance and
accounting?
◉ Investments
Answer: Which subspecialty of finance primarily involves deciding
which assets will create more wealth and earn positive returns?
◉ Investments
Answer: An area of finance that deals with investment allocation and
asset pricing.
◉ Financial Institutions
Answer: An area of finance that involves organizations that accept
deposits, offer investment products, loan money, or broker financial
transactions.
◉ Corporate Finance.
,Answer: An area of finance that involves activities used to increase
shareholder wealth.
◉ To maximize satisfaction from products purchased and services
obtained
Answer: What is the primary aim of personal finance goals?
◉ Do the benefits of this investment outweigh the costs?
Answer: What should be the main question a firm asks when
considering any investment decision?
◉ To maximize owner wealth
Answer: What is the primary goal of the financial manager of a firm?
◉ making investment decisions,
making financing decisions, and
managing working capital.
Answer: 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?
◉ CFO, Chief Financial Officer
Answer: Who is the highest ranking officer in corporate finance?
,◉ 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.
Answer: What does the CFO do?
◉ Making investment decisions
Answer: Which task does a financial manager perform when
assessing the costs and benefits of potential projects?
◉ Private equity
Answer: Which financial career focuses on investing capital into
firms whose shares are not currently sold on any public stock
exchange?
◉ Making financing decisions
Answer: Which task does a financial manager perform when
choosing to obtain a loan to purchase a piece of equipment for a new
project?
◉ Treasury, Corporate, and Stocks
Answer: What are the three most important types of securities?
, ◉ To protect Investors
Answer: Why does the SEC oversee Financial Markets?
◉ To provide liquidity and determine prices
Answer: What are the purposes of financial markets?
◉ Secondary market
Answer: In which financial market are securities such as stocks and
bonds are traded after their initial issuance?
◉ Money market
Answer: What kind of market primarily allows institutions to
borrow and lend in the short term?
◉ Primary market
Answer: 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?
◉ An institution that accepts and pays interest on deposits of money,
as well as extends loans
Answer: What is a depository institution?
QUESTIONS AND CORRECT ANSWERS
◉ Finance focuses on the future, while accounting is generally
backward-looking.
Answer: What is the primary difference between finance and
accounting?
◉ Investments
Answer: Which subspecialty of finance primarily involves deciding
which assets will create more wealth and earn positive returns?
◉ Investments
Answer: An area of finance that deals with investment allocation and
asset pricing.
◉ Financial Institutions
Answer: An area of finance that involves organizations that accept
deposits, offer investment products, loan money, or broker financial
transactions.
◉ Corporate Finance.
,Answer: An area of finance that involves activities used to increase
shareholder wealth.
◉ To maximize satisfaction from products purchased and services
obtained
Answer: What is the primary aim of personal finance goals?
◉ Do the benefits of this investment outweigh the costs?
Answer: What should be the main question a firm asks when
considering any investment decision?
◉ To maximize owner wealth
Answer: What is the primary goal of the financial manager of a firm?
◉ making investment decisions,
making financing decisions, and
managing working capital.
Answer: 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?
◉ CFO, Chief Financial Officer
Answer: Who is the highest ranking officer in corporate finance?
,◉ 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.
Answer: What does the CFO do?
◉ Making investment decisions
Answer: Which task does a financial manager perform when
assessing the costs and benefits of potential projects?
◉ Private equity
Answer: Which financial career focuses on investing capital into
firms whose shares are not currently sold on any public stock
exchange?
◉ Making financing decisions
Answer: Which task does a financial manager perform when
choosing to obtain a loan to purchase a piece of equipment for a new
project?
◉ Treasury, Corporate, and Stocks
Answer: What are the three most important types of securities?
, ◉ To protect Investors
Answer: Why does the SEC oversee Financial Markets?
◉ To provide liquidity and determine prices
Answer: What are the purposes of financial markets?
◉ Secondary market
Answer: In which financial market are securities such as stocks and
bonds are traded after their initial issuance?
◉ Money market
Answer: What kind of market primarily allows institutions to
borrow and lend in the short term?
◉ Primary market
Answer: 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?
◉ An institution that accepts and pays interest on deposits of money,
as well as extends loans
Answer: What is a depository institution?
