D775
D775 Objective Assessment (Latest Update )
Introduction to Business Finance | Questions & Answers
| Grade A | 100% Correct – WGU.
Accounting - ANS Recording and reporting past financial transactions.
Finance - ANS Managing assets, liabilities, and planning for future growth.
Personal Finance - ANS Managing individual or household money (budgeting,
saving, investing).
Public Finance - ANS Government money management, including taxes,
spending, and debt.
Business Finance / Corporate Finance - ANS Managing company money,
including investments, funding, and risk.
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Capital Budgeting - ANS Deciding which projects a company should invest in.
Cost of Capital - ANS The return a company must earn to cover the cost of
funding a project.
Financial Ratios - ANS Comparisons of financial data to measure
performance.
Common Stock - ANS Ownership in a company with voting rights and
potential dividends.
Preferred Stock - ANS Ownership with fixed dividends and priority in asset
claims, usually no voting rights.
Capital Appreciation - ANS Increase in an asset's value over time.
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Bonds - ANS Loans made to companies or governments that must be repaid
with interest.
Coupon Rate - ANS The interest rate a bond pays to investors.
Maturity - ANS The date a bond's final payment is due.
Corporate Bonds - ANS Bonds issued by companies, usually higher risk and
higher return than government bonds.
Municipal Bonds - ANS Local or state government bonds, often tax-exempt.
Treasury Bonds - ANS U.S. federal government bonds, considered very low
risk.
Financial Derivatives - ANS Contracts whose value is based on another asset's
price.
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Options - ANS Contracts giving the right (not obligation) to buy/sell at a set
price before a date.
Futures - ANS Contracts requiring buying/selling at a set price on a set date.
Investment Funds - ANS Pools of money from many investors invested in a
portfolio.
Mutual Funds - ANS Investment funds priced daily based on net asset value
(NAV).
Exchange-Traded Funds (ETFs) - ANS Investment funds traded like stocks.
Hedge Funds - ANS High-risk funds for wealthy or institutional investors.
Pension Funds - ANS Retirement savings invested for long-term growth.
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