WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 LATEST
VERSIONS (VERSION A AND B) ACTUAL EXAM
What area of finance involves deciding which assets to invest in to create wealth in
the future? - (ANSWERS)Investments
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? - (ANSWERS)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.
0/1
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? - (ANSWERS)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? - (ANSWERS)Financial planner - Professional financial planners work with
individuals to help them achieve their financial goals.
1/1
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. - (ANSWERS)Financing a goal - He has already made a decision
to purchase the car and is now deciding on financing options.
, WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 LATEST
VERSIONS (VERSION A AND B) ACTUAL EXAM
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? -
(ANSWERS)Business finance - 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? -
(ANSWERS)Finance focuses on the future, while accounting is generally backward-
looking. - finance is the management and allocation of capital with the objectives of
investing, forecasting, budgeting, saving, lending, and borrowing.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - (ANSWERS)Investments - 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? - (ANSWERS)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? - (ANSWERS)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? - (ANSWERS)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? - (ANSWERS)Making financing
, WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 LATEST
VERSIONS (VERSION A AND B) ACTUAL EXAM
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? - (ANSWERS)private equity - 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? - (ANSWERS)Making investment decisions -Understanding
how benefits weigh up against costs is the first priority before moving forward with
financing and managerial decisions.
What does the term legal describe? - (ANSWERS)An action that is in accordance
with the laws and rules set by an authority. -
Jack is a personal financial advisor. He is with a new client, and the client is asking
him what he recommends for her portfolio. Jack knows that his firm's investment
product performed well last year, but its performance changes from year to year—
some years it is better than the market, and some years it is not. Also, the fee to
invest in the product is higher than the fee to invest in a market index fund. If Jack
sells his company's investment product, the customer's loyalty to the company is
doubled. Which actions should Jack take? - (ANSWERS)Give a personal
recommendation of the company's product while explaining its performance relative
to the market over the past several years.-
Giving the recommendation to sell a product is fine, but you should never hide other
information. Sharing information about index funds and comparing your product to
others is a fair action to take for the client.
Why might a manager manipulate accounting procedures? - (ANSWERS)To make
VERSIONS (VERSION A AND B) ACTUAL EXAM
What area of finance involves deciding which assets to invest in to create wealth in
the future? - (ANSWERS)Investments
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? - (ANSWERS)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.
0/1
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? - (ANSWERS)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? - (ANSWERS)Financial planner - Professional financial planners work with
individuals to help them achieve their financial goals.
1/1
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. - (ANSWERS)Financing a goal - He has already made a decision
to purchase the car and is now deciding on financing options.
, WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 LATEST
VERSIONS (VERSION A AND B) ACTUAL EXAM
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? -
(ANSWERS)Business finance - 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? -
(ANSWERS)Finance focuses on the future, while accounting is generally backward-
looking. - finance is the management and allocation of capital with the objectives of
investing, forecasting, budgeting, saving, lending, and borrowing.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - (ANSWERS)Investments - 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? - (ANSWERS)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? - (ANSWERS)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? - (ANSWERS)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? - (ANSWERS)Making financing
, WGU D076 OBJECTIVE ASSESSMENT FINAL EXAM 2 LATEST
VERSIONS (VERSION A AND B) ACTUAL EXAM
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? - (ANSWERS)private equity - 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? - (ANSWERS)Making investment decisions -Understanding
how benefits weigh up against costs is the first priority before moving forward with
financing and managerial decisions.
What does the term legal describe? - (ANSWERS)An action that is in accordance
with the laws and rules set by an authority. -
Jack is a personal financial advisor. He is with a new client, and the client is asking
him what he recommends for her portfolio. Jack knows that his firm's investment
product performed well last year, but its performance changes from year to year—
some years it is better than the market, and some years it is not. Also, the fee to
invest in the product is higher than the fee to invest in a market index fund. If Jack
sells his company's investment product, the customer's loyalty to the company is
doubled. Which actions should Jack take? - (ANSWERS)Give a personal
recommendation of the company's product while explaining its performance relative
to the market over the past several years.-
Giving the recommendation to sell a product is fine, but you should never hide other
information. Sharing information about index funds and comparing your product to
others is a fair action to take for the client.
Why might a manager manipulate accounting procedures? - (ANSWERS)To make
