WGU D076 FINANCIAL SKILLS FOR MANANGER LATEST
UPDATED VERSION 2025 ACTUAL FINAL EXAM WITH WELL
ELLABORATED QUESTIONS AND CORRECT VERIFIED ANSWERS
ALREADY GRADED A+
What is a reasonable alternative to keeping an emergency stash of cash?
ANSWER-Investing in a savings account
Investing in a readily withdrawable account that still earns some interest is a value-preserving
alternative.
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?
ANSWER-Business finance is the area of finance that deals with uses and sources of funding to increase
the value of the firm.
What is the primary difference between finance and accounting?
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?
ANSWER-Investments is the area of finance that seeks to create wealth in the future by deciding where
to allocate money.
,What is the primary goal of the financial manager of a firm?
ANSWER-To maximize owner wealth.
The financial manager should make decisions based on the primary goal of maximizing owner wealth.
What should be the main question a firm asks when considering any investment decision?
ANSWER-Do the benefits of this investment outweigh the costs?
For any investment, you should expect to receive a benefit worth at least as much as the initial cost.
What is the primary aim of personal finance goals?
ANSWER-To maximize satisfaction from products purchased and services obtained. The objective of
personal financial goals is to maximize one's utility.
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project?
ANSWER-Making financing decisions.
The manager is deciding where to get the funds to support a new project, which means the manager is
making a financing decision.
,Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange?
ANSWER-Private equity deals with investments in firms that are privately held and whose ownership is
not yet bought or sold on any public stock exchange.
Which task does a financial manager perform when assessing the costs and benefits of potential
projects?
ANSWER-Making investment decisions
Managing working capital means overseeing day-to-day operations and cash flows.
What tool can you use to understand your overall personal cash flows?
ANSWER-Budgeting helps you to understand your income and expenses and to analyze your cash flows.
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?
ANSWER-Financing
Part of the personal finance process is figuring out how to finance your goals in a way that is within your
means
What area of finance involves deciding which assets to invest in to create wealth in the future?
ANSWER-Investments
, Investments are an area of finance that involves deciding which assets to invest in to create wealth in
the future.
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?
ANSWER-Making a financing decision
Since the project has already been approved, Hannah is trying to find a way to finance the investment
and considering its capital structure.
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?
ANSWER-To maximize individual utility
While everyone has different personal financial goals, the objectives of such goals is to maximize
individual utility
Which professional works with individuals to help them achieve their financial goals?
ANSWER-Financial planner
Professional financial planners work with individuals to help them achieve their financial goals.
UPDATED VERSION 2025 ACTUAL FINAL EXAM WITH WELL
ELLABORATED QUESTIONS AND CORRECT VERIFIED ANSWERS
ALREADY GRADED A+
What is a reasonable alternative to keeping an emergency stash of cash?
ANSWER-Investing in a savings account
Investing in a readily withdrawable account that still earns some interest is a value-preserving
alternative.
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?
ANSWER-Business finance is the area of finance that deals with uses and sources of funding to increase
the value of the firm.
What is the primary difference between finance and accounting?
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?
ANSWER-Investments is the area of finance that seeks to create wealth in the future by deciding where
to allocate money.
,What is the primary goal of the financial manager of a firm?
ANSWER-To maximize owner wealth.
The financial manager should make decisions based on the primary goal of maximizing owner wealth.
What should be the main question a firm asks when considering any investment decision?
ANSWER-Do the benefits of this investment outweigh the costs?
For any investment, you should expect to receive a benefit worth at least as much as the initial cost.
What is the primary aim of personal finance goals?
ANSWER-To maximize satisfaction from products purchased and services obtained. The objective of
personal financial goals is to maximize one's utility.
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project?
ANSWER-Making financing decisions.
The manager is deciding where to get the funds to support a new project, which means the manager is
making a financing decision.
,Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange?
ANSWER-Private equity deals with investments in firms that are privately held and whose ownership is
not yet bought or sold on any public stock exchange.
Which task does a financial manager perform when assessing the costs and benefits of potential
projects?
ANSWER-Making investment decisions
Managing working capital means overseeing day-to-day operations and cash flows.
What tool can you use to understand your overall personal cash flows?
ANSWER-Budgeting helps you to understand your income and expenses and to analyze your cash flows.
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?
ANSWER-Financing
Part of the personal finance process is figuring out how to finance your goals in a way that is within your
means
What area of finance involves deciding which assets to invest in to create wealth in the future?
ANSWER-Investments
, Investments are an area of finance that involves deciding which assets to invest in to create wealth in
the future.
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?
ANSWER-Making a financing decision
Since the project has already been approved, Hannah is trying to find a way to finance the investment
and considering its capital structure.
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?
ANSWER-To maximize individual utility
While everyone has different personal financial goals, the objectives of such goals is to maximize
individual utility
Which professional works with individuals to help them achieve their financial goals?
ANSWER-Financial planner
Professional financial planners work with individuals to help them achieve their financial goals.
