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WGU D076 – Practice Questions and Correct Answers with Detailed Rationales and Comprehensive Course Review

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WGU D076 – Practice Questions and Correct Answers with Detailed Rationales and Comprehensive Course Review

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WGU D076
WGU D076
Study online at https://quizlet.com/_8i1v22

1. Business finance 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?

2. Finance focuses What is the primary difference between finance and accounting?
on the future,
while accounting
is generally back-
ward-looking.

3. Investments Which subspecialty of finance primarily involves deciding which assets will
create more wealth and earn positive returns?

4. Investments An area of finance that deals with investment allocation and asset pricing.

5. Financial Institu- An area of finance that involves organizations that accept deposits, offer invest-
tions ment products, loan money, or broker financial transactions.

6. Corporate Fi- An area of finance that involves activities used to increase shareholder wealth.
nance.

7. To maximize satis- What is the primary aim of personal finance goals?
faction from prod-
ucts purchased
and services ob-
tained

8. Do the benefits What should be the main question a firm asks when considering any investment
of this invest- decision?
ment outweigh
the costs?

9. To maximize own- What is the primary goal of the financial manager of a firm?
er wealth


1

, WGU D076
WGU D076
Study online at https://quizlet.com/_8i1v22

10. making invest- What are three main tasks that a financial manager of a firm does in order to
ment decisions, achieve the goal of the firm, which is to maximize shareholder wealth?
making financing
decisions, and
managing work-
ing capital.

11. CFO, Chief Finan- Who is the highest ranking officer in corporate finance?
cial Officer

12. The CFO is re- What does the CFO do?
sponsible for all
the financial deci-
sions made by the
firm. He or she
serves as the CEO's
right-hand person
in all money mat-
ters and over-
sees the financial
analysis and deci-
sion-making of the
firm.

13. Making invest- Which task does a financial manager perform when assessing the costs and
ment decisions benefits of potential projects?

14. Private equity Which financial career focuses on investing capital into firms whose shares are
not currently sold on any public stock exchange?

15. Making financing Which task does a financial manager perform when choosing to obtain a loan
decisions to purchase a piece of equipment for a new project?


2

, WGU D076
WGU D076
Study online at https://quizlet.com/_8i1v22

16. Treasury, Corpo- What are the three most important types of securities?
rate, and Stocks

17. To protect In- Why does the SEC oversee Financial Markets?
vestors

18. To provide liquid- What are the purposes of financial markets?
ity and determine
prices

19. Secondary market In which financial market are securities such as stocks and bonds are traded
after their initial issuance?

20. Money market What kind of market primarily allows institutions to borrow and lend in the short
term?

21. Primary market 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?

22. An institution that What is a depository institution?
accepts and pays
interest on de-
posits of money,
as well as extends
loans

23. To conduct finan- What is the primary role of financial institutions?
cial transactions
such as invest-
ments, loans, and
deposits

24. Investment bank

3

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