WGU D362 ACTUAL EXAM PAPER 2026
QUESTIONS WITH FULL SOLUTION GRADED
A+.
⫸ SCO. Answer: Secondary offering, the sale of shares by a company
that has already gone public.
⫸ External auditor. Answer: An independent party that evaluates the
financial statements of a company.
⫸ Internal auditor. Answer: An employee of the company who
evaluates its internal controls and processes.
⫸ Compliance officer. Answer: An individual responsible for
ensuring that a company complies with external regulations and
internal policies.
⫸ Venture capitalists. Answer: Individuals or firms that help new
businesses get started and provide much of their early-stage financing.
⫸ Angel investors. Answer: Individuals who provide capital for
startups, often in exchange for convertible debt or ownership equity.
, ⫸ Venture capital firms. Answer: Firms that manage pooled funds
from many investors to invest in startups and small businesses.
⫸ Seasoned public offering. Answer: The sale of securities to the
public by a firm that already has publicly traded securities
outstanding.
⫸ Preliminary prospectus. Answer: Initial registration statement filed
with the SEC by a company preparing to issue securities in the public
market.
⫸ Firm commitment underwriting. Answer: Underwriting agreement
in which the underwriter purchases securities for a specified price and
resells them.
⫸ Best effort underwriting. Answer: Underwriter does not agree to
purchase the securities at a particular price but promises to only make
'best effort' to sell as much of the issue as possible.
⫸ General cash offer. Answer: A sale of debt or equity, open to all
investors, by a company that has previously sold stock to the public.
⫸ Competitive sales. Answer: Sales where multiple underwriters bid
and the issuer selects the best offer.
⫸ Negotiated sales. Answer: Sales where the issuer directly chooses
an underwriter and negotiates the terms.
QUESTIONS WITH FULL SOLUTION GRADED
A+.
⫸ SCO. Answer: Secondary offering, the sale of shares by a company
that has already gone public.
⫸ External auditor. Answer: An independent party that evaluates the
financial statements of a company.
⫸ Internal auditor. Answer: An employee of the company who
evaluates its internal controls and processes.
⫸ Compliance officer. Answer: An individual responsible for
ensuring that a company complies with external regulations and
internal policies.
⫸ Venture capitalists. Answer: Individuals or firms that help new
businesses get started and provide much of their early-stage financing.
⫸ Angel investors. Answer: Individuals who provide capital for
startups, often in exchange for convertible debt or ownership equity.
, ⫸ Venture capital firms. Answer: Firms that manage pooled funds
from many investors to invest in startups and small businesses.
⫸ Seasoned public offering. Answer: The sale of securities to the
public by a firm that already has publicly traded securities
outstanding.
⫸ Preliminary prospectus. Answer: Initial registration statement filed
with the SEC by a company preparing to issue securities in the public
market.
⫸ Firm commitment underwriting. Answer: Underwriting agreement
in which the underwriter purchases securities for a specified price and
resells them.
⫸ Best effort underwriting. Answer: Underwriter does not agree to
purchase the securities at a particular price but promises to only make
'best effort' to sell as much of the issue as possible.
⫸ General cash offer. Answer: A sale of debt or equity, open to all
investors, by a company that has previously sold stock to the public.
⫸ Competitive sales. Answer: Sales where multiple underwriters bid
and the issuer selects the best offer.
⫸ Negotiated sales. Answer: Sales where the issuer directly chooses
an underwriter and negotiates the terms.
