WGU C214 QUESTIONS WITH CORRECT ANSWERS 2025

WGU C214 QUESTIONS WITH CORRECT
ANSWERS 2025
CorporateQFinanceQ-QCORRECTQANSWERQ-focusesQonQfinancialQdecisionQmakingQbyQaQfirmsQmanagement



InvestmentsQ-QCORRECTQANSWERQ-variousQtypesQofQfinancialQinstrumentsQ(stocks,Qbonds,Qetc)



BankingQorQFinancialQInstitutionsQ-QCORRECTQANSWERQ-
makeQmoneyQbyQpayingQdepositorsQaQsmallerQinterestQrateQthanQtheQinterestQrateQchargedQtoQborrowers



TreasuryQSecuritiesQ-QCORRECTQANSWERQ-generallyQbondsQthatQareQissuedQbyQtheQUSQgovernment



CorporateQBondsQ-QCORRECTQANSWERQ-firmsQborrowingQfromQtheQpublic



StocksQ-QCORRECTQANSWERQ-aQshareQofQownershipQinQaQcompany



PrimaryQfinancialQmarketsQ-QCORRECTQANSWERQ-marketsQwhereQsecuritiesQareQfirstQissued



SyndicateQ-QCORRECTQANSWERQ-
aQgroupQthatQisQtemporarilyQformedQtoQhandleQaQbondQorQstockQissue:QgenerallyQlargeQinvestmentQbankQo
rQinstitutionalQinvestors



UnderwriterQ-QCORRECTQANSWERQ-
responsibleQforQdeterminingQtheQvalueQofQtheQsecurity;QmayQpurchaseQallQtheQsecuritiesQ&QthenQresaleQto
Qinvestors




CompetitiveQsaleQ-QCORRECTQANSWERQ-
underwritersQsubmitQbidsQofferingQhighestQprice/lowestQinterestQrate;QunderwriterQresalesQaQslightlyQhigh
erQprice



NegotiatedQsaleQ-QCORRECTQANSWERQ-underwritersQsubmitQbids,QgoQthruQinterviewQtoQbeQselected

,SecondaryQfinancialQmarketsQ-QCORRECTQANSWERQ-
whereQsecuritiesQareQtradedQafterQtheQinitialQofferingQ(stockQmarket)



AuctionQmarketQ-QCORRECTQANSWERQ-
hasQaQphysicalQlocationQ&QpricesQareQdeterminedQbyQtheQhighestQpriceQanQinvestorQisQwillingQtoQpayQ(New
QYorkQStockQExchange)




DealerQmarketQ-QCORRECTQANSWERQ-noQphysicalQlocation-
QsecuritiesQareQboughtQ&QsoldQthruQaQnetworkQofQdealersQthatQtradeQforQthemselves;QmultiQdealersQperQst

ockQ(NASDAQ)



RoleQofQfinancialQmarketsQ-QCORRECTQANSWERQ-
theyQreduceQtheQcostQofQborrowingQfromQtheQpublicQorQsellingQownershipQtoQtheQpublic



RoleQofQSpecialistQ(NYSE)QorQDealersQ-QCORRECTQANSWERQ-
provideQliquidityQforQaQfairQ&QorderlyQmarket;QmayQincreaseQtheQspreadQtoQdoQsoQ(chargeQaQlowerQpriceQt
oQsellerQandQaQhigherQpriceQtoQbuyer)



FinancialQmarketQliquidityQ-QCORRECTQANSWERQ-
theQeaseQofQtradingQinQtheQmarketQ(highQfrquencyQtraders)



MarketQordersQ-QCORRECTQANSWERQ-
timeQsensitive;QsalesQatQcurrentQbidQprice/buysQatQcurrentQaskingQpriceQwhenQorderQisQplaced-
immediately



LimitedQordersQ-QCORRECTQANSWERQ-
priceQsensitive;QsellQoccursQwhenQpriceQofQstockQmatchesQorderQprice



RoleQofQpriceQ-QCORRECTQANSWERQ-
convetQinformationQtoQconsumers;QaffectQincentivesQ&affectQtheQdistributionQofQincome



DollarQReturnsQ-QCORRECTQANSWERQ-PtQ-QPt-1Q+QCFtQ(Pt=QsoldQprice,QPt-1=boughtQprice,QCFt=cashQflow-
couponsQforQbonds/dividiansQforQstocks)

, PercentageQReturnsQ-QCORRECTQANSWERQ-PtQ-QPt-1/Pt-1Q+QCFt/Pt-1QxQ100Q(1.2)

(figureQforQdollarQreturnQandQdivideQintoQboughtQprice)
Q




GoalQofQcompany/firmQ-QCORRECTQANSWERQ-toQmaximizeQshareholderQvalueQorQmaximizeQprofit



AgencyQcostsQ-QCORRECTQANSWERQ-
costsQthatQareQincurredQwhenQmanagementQdoesn'tQactQinQtheQbestQinterestsQofQshareholders



ProfitQmaximizarionQ-QCORRECTQANSWERQ-theQpotentialQeffectQofQfocusingQsoleyQonQprofits



AccountingQ-QCORRECTQANSWERQ-isQbackward-lookingQandQriskQfree



FinanceQ-QCORRECTQANSWERQ-isQforward-lookingQandQinvolesQmassiveQuncertainty



IncomeQStatementQ-QCORRECTQANSWERQ-showQresultsQofQoperationQoverQtime;QrevenuesQ-
QexpensesQ=QnetQincome




BalanceQSheetQ-QCORRECTQANSWERQ-
aQ"snapQshot"QofQaQfirm'sQassestsQ&QfinancingQatQaQpaticularQpointQinQtime;QAssets=QLiabilitiesQ+QOwner'sQ
Equity



StatementQofQCashQFlowsQ-QCORRECTQANSWERQ-tracksQallQcashQinQandQoutQofQtheQfirm



CashQAccountingQ-QCORRECTQANSWERQ-cashQinQ=revenue;QcashQout=expense



AccrualQAccountingQ-QCORRECTQANSWERQ-
revenuesQareQrecognizedQwhenQtheQearningsQprocessQisQcomplete;QexpensesQareQ"matched"QtoQrecongize
dQrevenues



Cash-basedQincomeQ-QCORRECTQANSWERQ-anQinformalQmetricQbasedQonQcashQinQ&QcashQoutQofQtheQfirm