D076 Finance Skills for Managers Exam Questions & Answers 100% Accurate

What are the three areas of finance? - ANSWER-Business finance (Also known as managerial finance, financial management and organizational finance) Investments Financial institutions What is the main difference between finance and accounting? - ANSWER-Finance is forward-looking, accounting is backward-looking What does the term "utility" mean when referring to personal finance? - ANSWER-The total satisfaction received from consuming goods and services What is the goal of business finance for a company? - ANSWER-To maximize either shareholder wealth for a publicly traded company or maximize owner wealth for a privately owned company What should be the main question a firm asks when considering any investment decison? - ANSWER-Do the benefits of this investment outweigh the costs? What are the three main tasks that a financial manager of a firm does in order to achieve the firms goals? - ANSWER-1. Make investment decisions 2. Make financing decisions 3. Manage working capital What are venture capitalists? - ANSWER-Professional managers of investment capital that invest in very young, new ventures in hopes it will reach harvest by IPO or acquisition.