D076 – Finance Skills for Managers OA QUESTIONS AND ANSWERS MARKED IN YELLOW 2025 Western Governors University

D076 – Finance Skills for Managers OA QUESTIONS AND ANSWERS MARKED IN YELLOW 2025 Western Governors University 1) 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? • Investments • Real estate • Business Finance • Financial institutions 2) What is the primary difference between finance and accounting? • Finance provides financial data to decision-makers, and accounting involves making decisions using that data. • Finance focuses on the future, while accounting is generally backward-looking. • Accounting focuses on the future, while finance is generally backward-looking. • Accounting involves investing and forecasting, while finance summarizes a company’s financial information. 3) Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? • Capital structure • Financial institutions • Accounting • Investments 4) What is the primary goal of the financial manager of a firm? • To maximize the manager’s utility • To maximize owner wealth • To minimize the costs of the firm • To minimize the asset holdings of the firm 5) What should be the main question a firm asks when considering any investment decision? • What is the best investment in the stock market? • Will this investment help the company reduce costs? • Do the benefits of this investment outweigh the costs?