WGU D362 TEST PAPER QUESTIONS AND
SOLUTIONS 2026 100% CORRECT.
⫸ A person wants to start a coffee shop. Initial funding came from the
entrepreneur, but more funds are required to open the coffee shop.
The entrepreneur receives the remaining seed money from friends and
family.
Which capitalization strategy did the entrepreneur use?
Yield capitalization
Bootstrapping
Direct capitalization
Venture capital Answer: Correct:Bootstrapping happens when an
entrepreneur invests money, but also gets additional funds from
friends, family, or credit card loans.
⫸ Which strategy refers to the process of making multiple payments
across time to allow an opportunity to reassess performance at each
point?
Staged funding
Syndication
Yield capitalization
Bootstrapping Answer: This strategy refers to providing seed funding
so a prototype can be built and tested. Based on the prototype's
success, additional funds may be provided.
, ⫸ Which capitalization strategy would a company use if it needed
large sums of capital, or if an entrepreneur is ready to sell some or all
its investment?
Staged funding
Strategic buyer
Initial Public Offering (IPO)
Syndication Answer: A company can offer its first sale of common
stock in the market to raise large sums of capital.
⫸ The Chief Financial Officer (CFO) of a toy company is
considering purchasing a new piece of machinery to make
manufacturing one of its toy lines more efficient and sustainable.
Which type of decision does this scenario involve?
Working capital management decisions
Capital structure decisions
Capital budgeting decisions
Financing decisions Answer: The decision-making process through
which the firm purchases productive assets is called capital budgeting,
and it is one of the most important decision processes in a firm.
⫸ A café decided to purchase a new industrial oven to efficiently and
effectively meet the increasing demand of its baked goods. The Chief
Financial Officer (CFO) is in the process of determining how to pay
SOLUTIONS 2026 100% CORRECT.
⫸ A person wants to start a coffee shop. Initial funding came from the
entrepreneur, but more funds are required to open the coffee shop.
The entrepreneur receives the remaining seed money from friends and
family.
Which capitalization strategy did the entrepreneur use?
Yield capitalization
Bootstrapping
Direct capitalization
Venture capital Answer: Correct:Bootstrapping happens when an
entrepreneur invests money, but also gets additional funds from
friends, family, or credit card loans.
⫸ Which strategy refers to the process of making multiple payments
across time to allow an opportunity to reassess performance at each
point?
Staged funding
Syndication
Yield capitalization
Bootstrapping Answer: This strategy refers to providing seed funding
so a prototype can be built and tested. Based on the prototype's
success, additional funds may be provided.
, ⫸ Which capitalization strategy would a company use if it needed
large sums of capital, or if an entrepreneur is ready to sell some or all
its investment?
Staged funding
Strategic buyer
Initial Public Offering (IPO)
Syndication Answer: A company can offer its first sale of common
stock in the market to raise large sums of capital.
⫸ The Chief Financial Officer (CFO) of a toy company is
considering purchasing a new piece of machinery to make
manufacturing one of its toy lines more efficient and sustainable.
Which type of decision does this scenario involve?
Working capital management decisions
Capital structure decisions
Capital budgeting decisions
Financing decisions Answer: The decision-making process through
which the firm purchases productive assets is called capital budgeting,
and it is one of the most important decision processes in a firm.
⫸ A café decided to purchase a new industrial oven to efficiently and
effectively meet the increasing demand of its baked goods. The Chief
Financial Officer (CFO) is in the process of determining how to pay
