D076 Finance Skills for Managers Exam Questions & Answers 100% Accurate

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? - ANSWER-Business finance What is the primary difference between finance and accounting? - ANSWER-Finance focuses on the future, while accounting is generally backward-looking. Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? - ANSWER-Investments What is the primary goal of the financial manager of a firm? - ANSWER-To maximize owner wealth What should be the main question a firm asks when considering any investment decision? - ANSWER-Do the benefits of this investment outweigh the costs? What is the primary aim of personal finance goals? - ANSWER-To maximize satisfaction from products purchased and services obtained Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of equipment for a new project? - ANSWER-Making financing decisions Which financial career focuses on investing capital into firms whose shares are not currently sold on any public stock exchange? - ANSWER-Private equity Which task does a financial manager perform when assessing the costs and benefits of potential projects? - ANSWER-Making investment decisions