WGU D076 OBJECTIVE ASSESSMENT FINANCE SKILLS FOR MANAGERS ACTUAL
FINAL EXAM | WITH COMPLETE QUESTIONS AND ANSWERS | 2025/206 LATEST
UPDATED | 100 % RATED AND VERIFIED SOLUTIONS | GET AN A+
1. What is the primary goal of the financial manager of a firm?: To maximize
owner wealth
2. What should be the main question a firm asks when considering any
investment decision?: Do the benefits of this investment outweigh the costs?
3. What is the primary aim of personal finance goals?: To maximize
satisfaction from products purchased and services obtained
4. Which task does a financial manager perform when choosing to obtain a
loan to purchase a piece of equipment for a new project?: Making financing
decisions
5. Which financial career focuses on investing capital into firms whose
shares are not currently sold on any public stock exchange?: Private equity
6. Which task does a financial manager perform when assessing the costs
and benefits of potential projects?: Making investment decisions
,7. What tool can you use to understand your overall personal cash flows?:
Budgeting
8. What is a reasonable alternative to keeping an emergency stash of cash?:
Investing in a savings account
9. 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?: Financing
10. What area of finance involves deciding which assets to invest in to create
wealth in the future?: Investments
11. 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?: Making a financing decision
,12. 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?: To maximize individual utility
13. Which professional works with individuals to help them achieve their
financial goals?: Financial planner
14 Omar is about to purchase a new car for $30,000. He knows he wants to
buy the car, but he is still trying to decide how to pay for it. He has barely over
$30,000 in his bank account. He can either take out an auto loan from a bank
or use a mix of cash and an auto loan.
In this scenario, what is Omar doing?: Financing a goal
15. What are the purposes of financial markets?: To provide liquidity and
determine prices
16. In which financial market are securities such as stocks and bonds are
traded after their initial issuance?: Secondary market
, 17. What kind of market primarily allows institutions to borrow and lend in
the short term?: Money market
18. 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?: Primary market
19. What is the primary role of financial institutions?: To conduct financial
transactions such as investments, loans, and deposits
20. What is a depository institution?: An institution that accepts and pays
interest on deposits of money, as well as extends loans
21. Which financial institution ensures that a nation's economy remains
healthy by controlling the amount of money circulating in the economy?:
Central bank 22. How do insurance companies pay policyholders when a
claim is made?: They use returns from stocks and bonds.
23. Which type of financial institution deals mainly with providing for
retirement through employers?: Pension fund
24. A large corporation is looking to merge with another large corporation.
FINAL EXAM | WITH COMPLETE QUESTIONS AND ANSWERS | 2025/206 LATEST
UPDATED | 100 % RATED AND VERIFIED SOLUTIONS | GET AN A+
1. What is the primary goal of the financial manager of a firm?: To maximize
owner wealth
2. What should be the main question a firm asks when considering any
investment decision?: Do the benefits of this investment outweigh the costs?
3. What is the primary aim of personal finance goals?: To maximize
satisfaction from products purchased and services obtained
4. Which task does a financial manager perform when choosing to obtain a
loan to purchase a piece of equipment for a new project?: Making financing
decisions
5. Which financial career focuses on investing capital into firms whose
shares are not currently sold on any public stock exchange?: Private equity
6. Which task does a financial manager perform when assessing the costs
and benefits of potential projects?: Making investment decisions
,7. What tool can you use to understand your overall personal cash flows?:
Budgeting
8. What is a reasonable alternative to keeping an emergency stash of cash?:
Investing in a savings account
9. 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?: Financing
10. What area of finance involves deciding which assets to invest in to create
wealth in the future?: Investments
11. 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?: Making a financing decision
,12. 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?: To maximize individual utility
13. Which professional works with individuals to help them achieve their
financial goals?: Financial planner
14 Omar is about to purchase a new car for $30,000. He knows he wants to
buy the car, but he is still trying to decide how to pay for it. He has barely over
$30,000 in his bank account. He can either take out an auto loan from a bank
or use a mix of cash and an auto loan.
In this scenario, what is Omar doing?: Financing a goal
15. What are the purposes of financial markets?: To provide liquidity and
determine prices
16. In which financial market are securities such as stocks and bonds are
traded after their initial issuance?: Secondary market
, 17. What kind of market primarily allows institutions to borrow and lend in
the short term?: Money market
18. 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?: Primary market
19. What is the primary role of financial institutions?: To conduct financial
transactions such as investments, loans, and deposits
20. What is a depository institution?: An institution that accepts and pays
interest on deposits of money, as well as extends loans
21. Which financial institution ensures that a nation's economy remains
healthy by controlling the amount of money circulating in the economy?:
Central bank 22. How do insurance companies pay policyholders when a
claim is made?: They use returns from stocks and bonds.
23. Which type of financial institution deals mainly with providing for
retirement through employers?: Pension fund
24. A large corporation is looking to merge with another large corporation.
