WGU C708 FINANCE V4 PRE-ASSESSMENT 67
QUESTIONS WITH VERIFIED ANSWER 2025/2026
Ensuring sufficient financing is available - CORRECT ANSWER Which activity is
financial management responsible for?
Investments - CORRECT ANSWER What is one of the main areas of the financial
environment?
It generally operates with a high degree of uncertainty - CORRECT ANSWER What
is a common challenge in the world of finance?
The amount of debt and equity financing currently in use - CORRECT ANSWER
Which variable must be considered when a corporation's finance department is
determining the best strategy for financing a project?
Unlimited liability - CORRECT ANSWER An individual is interested in establishing a
lawn care business as a sole proprietorship. What will be a disadvantage of
choosing this business model?
The owner has uninterrupted control of the business. - CORRECT ANSWER What is
one benefit of a sole proprietorship?
Owners' personal assets are not protected against claims of creditors. - CORRECT
ANSWER What is a disadvantage of a general partnership?
, Limited personal liability - CORRECT ANSWER What is one advantage of an LLC?
Corporate executives buying other companies to expand their influence -
CORRECT ANSWER What is an example of a potential principal-agent problem?
Retail securities firm - CORRECT ANSWER An individual decides to sell corporate
bonds to another investor. Which type of financial market or institution would be
involved in this transaction?
Investment banking firm - CORRECT ANSWER A firm wants to sell new shares of
stock. Which other institution is involved in this type of transaction?
Retail bank - CORRECT ANSWER A partnership needs funds to purchase
technology equipment. It will be able to repay those funds in under a year's time.
Which organization should the partnership contact to obtain the needed funds?
Deposits - CORRECT ANSWER Which type of transactions do financial institutions
deal with?
Commercial bank - CORRECT ANSWER What is considered a financial institution?
The investment manager publishes false investment performance reports in hopes
of convincing new investors to invest money - CORRECT ANSWER Which situation
is unethical?
QUESTIONS WITH VERIFIED ANSWER 2025/2026
Ensuring sufficient financing is available - CORRECT ANSWER Which activity is
financial management responsible for?
Investments - CORRECT ANSWER What is one of the main areas of the financial
environment?
It generally operates with a high degree of uncertainty - CORRECT ANSWER What
is a common challenge in the world of finance?
The amount of debt and equity financing currently in use - CORRECT ANSWER
Which variable must be considered when a corporation's finance department is
determining the best strategy for financing a project?
Unlimited liability - CORRECT ANSWER An individual is interested in establishing a
lawn care business as a sole proprietorship. What will be a disadvantage of
choosing this business model?
The owner has uninterrupted control of the business. - CORRECT ANSWER What is
one benefit of a sole proprietorship?
Owners' personal assets are not protected against claims of creditors. - CORRECT
ANSWER What is a disadvantage of a general partnership?
, Limited personal liability - CORRECT ANSWER What is one advantage of an LLC?
Corporate executives buying other companies to expand their influence -
CORRECT ANSWER What is an example of a potential principal-agent problem?
Retail securities firm - CORRECT ANSWER An individual decides to sell corporate
bonds to another investor. Which type of financial market or institution would be
involved in this transaction?
Investment banking firm - CORRECT ANSWER A firm wants to sell new shares of
stock. Which other institution is involved in this type of transaction?
Retail bank - CORRECT ANSWER A partnership needs funds to purchase
technology equipment. It will be able to repay those funds in under a year's time.
Which organization should the partnership contact to obtain the needed funds?
Deposits - CORRECT ANSWER Which type of transactions do financial institutions
deal with?
Commercial bank - CORRECT ANSWER What is considered a financial institution?
The investment manager publishes false investment performance reports in hopes
of convincing new investors to invest money - CORRECT ANSWER Which situation
is unethical?
