Finance Skills for Managers - D076 Question and answers
correctly solved 2025/2026
In which way is accounting different from finance? Accounting is
backward
looking, while finance is
focused on the
future.
1. What is the main question that both individuals and Will the benefits of
the ac-
companies must consider when making financial deci- tion outweigh
the costs?
sions to reach a goal?
2. A financial manager at a company is trying to Making financing deci-
deter- mine whether to issue new stocks or sions
new bonds to cover the costs of a project the
company is doing the next year.
Which main task in business finance is this
situation an example of?
3. How can investing help a person reach personal finan- It provides
access to po-
cial goals? 6. How does an
investment
institution,
such as a
4. A sign company is planning to have an initial mutual fund,
public offering (IPO). In which type of market will facilitate
its stock first be sold to the public? the
circulation
5. Which type of economic indicator changes
of money in
after the economy changes and helps identify
the econo-
trends in the long term?
my?
,al revenue or increas- es in value to help meet goals faster.
ary market providing individuals
and firms access to
finan- cial markets to
buy or sell financial
ging indicator
securities
, Finance Skills for Managers - D076
Which type of economic indicator is used by
govern- ments and policymakers to
implement or alter policies in an effort to Leading indicator
avoid or minimize the effects of an economic
downturn?
7. Suppose an individual does not eat chocolate because Moral
eating chocolate goes against his personal
beliefs. Which type of standard is this?
8. Which action is based upon moral standards? Although there is no com-
pany policy regarding
it, a financial manager
chooses not to accept
gifts from the
company's clients to
en- sure that she does
not cre- ate a conflict
of interest.
9. What should a potential bondholder Set strict covenants
(lender) do to prevent a company that the company
(borrower) from taking on risky projects? cannot up- hold if it
chooses a risky
project
10. What is the term for an individual's beliefs concerning Morals
what is and is not acceptable to personally do?
11. Which factor contributes to the inflation of Increase in demand
the prices of goods and services over time? for goods and
services
12. Why can compounding interest be a good tool but also Compounding
interest can
correctly solved 2025/2026
In which way is accounting different from finance? Accounting is
backward
looking, while finance is
focused on the
future.
1. What is the main question that both individuals and Will the benefits of
the ac-
companies must consider when making financial deci- tion outweigh
the costs?
sions to reach a goal?
2. A financial manager at a company is trying to Making financing deci-
deter- mine whether to issue new stocks or sions
new bonds to cover the costs of a project the
company is doing the next year.
Which main task in business finance is this
situation an example of?
3. How can investing help a person reach personal finan- It provides
access to po-
cial goals? 6. How does an
investment
institution,
such as a
4. A sign company is planning to have an initial mutual fund,
public offering (IPO). In which type of market will facilitate
its stock first be sold to the public? the
circulation
5. Which type of economic indicator changes
of money in
after the economy changes and helps identify
the econo-
trends in the long term?
my?
,al revenue or increas- es in value to help meet goals faster.
ary market providing individuals
and firms access to
finan- cial markets to
buy or sell financial
ging indicator
securities
, Finance Skills for Managers - D076
Which type of economic indicator is used by
govern- ments and policymakers to
implement or alter policies in an effort to Leading indicator
avoid or minimize the effects of an economic
downturn?
7. Suppose an individual does not eat chocolate because Moral
eating chocolate goes against his personal
beliefs. Which type of standard is this?
8. Which action is based upon moral standards? Although there is no com-
pany policy regarding
it, a financial manager
chooses not to accept
gifts from the
company's clients to
en- sure that she does
not cre- ate a conflict
of interest.
9. What should a potential bondholder Set strict covenants
(lender) do to prevent a company that the company
(borrower) from taking on risky projects? cannot up- hold if it
chooses a risky
project
10. What is the term for an individual's beliefs concerning Morals
what is and is not acceptable to personally do?
11. Which factor contributes to the inflation of Increase in demand
the prices of goods and services over time? for goods and
services
12. Why can compounding interest be a good tool but also Compounding
interest can
