WGU C201 BUSINESS ACUMEN OBJECTIVE ASSESSMENT
2024 WITH 2 LATEST UPDATED VERSIONS (VERSION A AND
VERSION B) EACH VERSION CONTAINS COMPLETE
ACTUAL QUESTIONS AND WELL ELABORATED ANSWERS
(CORRECT VERIFIED SOLUTIONS) |GUARANTEED PASS A+
VERSION A
What is one role of a financial manager? - Answer-Analyzing
major investment decisions
Which two activities are finance activities rather than
accounting activities? - Answer-Making capital market
investments
Creating a financial plan
Which three sources should a business consider when seeking a
long-term funding source? - Answer-Venture capital
Public sale of stocks
Hedge funds
,In which type of security should a business invest its excess
cash in anticipation of paying off the current year's tax liability?
- Answer-commerical paper
Which role does the underwriter play in financing business
operations when using the capital market to sell securities to
the public? - Answer-It assumes the risk of the assessed value
of the security from the issuer.
Why should a manager use financial controls in a firm's
financial plan? - 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? - Answer-Sales
forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers? - Answer-It capped the debit
card swipe fee at 21 cents.
Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees? - Answer-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
Selling company stock because a co-worker told the employee
the company's new drug is failing in clinical trial
Which two risks does a firm face by funding the purchase of
long-term assets with short-term funding sources? - 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? - Answer-
Long-term commercial bank loan
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business? -
Answer-It can make large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank
loans.
It has a maturity that ranges between 1 and 270 days.
, What should a firm do to manage the risk of using leverage
when exploring long-term funding options? - Answer-Ensure
that earnings remain larger than interest payments
Which financial statement should an investor examine to
identify the liabilities of a firm? - 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? - Answer-Leverage
Which calculation determines a firm's return on equity? -
Answer-Net income divided by average equity
Why should companies that are conservative investors with
liquidity concerns invest their excess cash in money market
funds? - Answer-It converts easily into cash.
Which regulatory relationship within the Securities and
Exchange Commission (SEC) historically has acted to prohibit
the U.S. from adopting the International Financial Reporting
Standards (IFRS)? - Answer-FASB requires companies to comply
with GAAP that differ from IFRS
2024 WITH 2 LATEST UPDATED VERSIONS (VERSION A AND
VERSION B) EACH VERSION CONTAINS COMPLETE
ACTUAL QUESTIONS AND WELL ELABORATED ANSWERS
(CORRECT VERIFIED SOLUTIONS) |GUARANTEED PASS A+
VERSION A
What is one role of a financial manager? - Answer-Analyzing
major investment decisions
Which two activities are finance activities rather than
accounting activities? - Answer-Making capital market
investments
Creating a financial plan
Which three sources should a business consider when seeking a
long-term funding source? - Answer-Venture capital
Public sale of stocks
Hedge funds
,In which type of security should a business invest its excess
cash in anticipation of paying off the current year's tax liability?
- Answer-commerical paper
Which role does the underwriter play in financing business
operations when using the capital market to sell securities to
the public? - Answer-It assumes the risk of the assessed value
of the security from the issuer.
Why should a manager use financial controls in a firm's
financial plan? - 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? - Answer-Sales
forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers? - Answer-It capped the debit
card swipe fee at 21 cents.
Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees? - Answer-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
Selling company stock because a co-worker told the employee
the company's new drug is failing in clinical trial
Which two risks does a firm face by funding the purchase of
long-term assets with short-term funding sources? - 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? - Answer-
Long-term commercial bank loan
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business? -
Answer-It can make large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank
loans.
It has a maturity that ranges between 1 and 270 days.
, What should a firm do to manage the risk of using leverage
when exploring long-term funding options? - Answer-Ensure
that earnings remain larger than interest payments
Which financial statement should an investor examine to
identify the liabilities of a firm? - 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? - Answer-Leverage
Which calculation determines a firm's return on equity? -
Answer-Net income divided by average equity
Why should companies that are conservative investors with
liquidity concerns invest their excess cash in money market
funds? - Answer-It converts easily into cash.
Which regulatory relationship within the Securities and
Exchange Commission (SEC) historically has acted to prohibit
the U.S. from adopting the International Financial Reporting
Standards (IFRS)? - Answer-FASB requires companies to comply
with GAAP that differ from IFRS
