WGU C214 OA FINANCIAL MANAGEMENT
RETAKE EXAM | LATEST QUESTIONS AND
ANSWERS | (2025/2026) UPDATE |
(VERIFIED) 100% CORRECT
1. What does the Foreign Corrupt Practices Act (FCPA)
forbid companies to do?
A. Make political contributions in foreign countries
B. Pay foreign government officials to gain business advantages
C. Avoid reporting overseas revenue
D. Invest in foreign subsidiaries
✅ Correct Answer: B
Rationale:
The Foreign Corrupt Practices Act (FCPA) makes it illegal for U.S.
companies and individuals to bribe foreign government officials to obtain
or retain business. Its purpose is to promote ethical business practices
and transparency in international markets. The Act also includes
accounting provisions requiring accurate financial records. Violations can
result in severe civil and criminal penalties.
2. What are the two basic types of financial instruments?
A. Stocks and options
B. Bonds and derivatives
C. Stocks and bonds
D. Mutual funds and ETFs
✅ Correct Answer: C
, Rationale:
Stocks and bonds are the two fundamental financial instruments used by
firms to raise capital. Stocks represent ownership in a company, while
bonds represent debt obligations. These instruments form the foundation
of financial markets and are essential to corporate financing decisions.
Most other instruments are derived from or structured around these two
basics.
3. What are secondary markets?
A. Markets where securities are issued for the first time
B. Markets where governments issue bonds
C. Markets where securities are traded after issuance
D. Markets used only by institutional investors
✅ Correct Answer: C
Rationale:
Secondary markets are markets where investors buy and sell securities
that have already been issued. Examples include stock exchanges such as
the NYSE and NASDAQ. These markets provide liquidity, allowing investors
to convert investments into cash. Secondary markets do not provide new
capital to issuing firms but are vital for market efficiency.
4. What do cash flows from operating activities report?
A. Cash from issuing stock and debt
B. Cash generated from day-to-day business operations
C. Cash used to purchase long-term assets
D. Cash changes caused by inflation
✅ Correct Answer: B
Rationale:
Cash flows from operating activities measure the cash generated or used
by a firm’s core business operations. This includes revenue from sales and
RETAKE EXAM | LATEST QUESTIONS AND
ANSWERS | (2025/2026) UPDATE |
(VERIFIED) 100% CORRECT
1. What does the Foreign Corrupt Practices Act (FCPA)
forbid companies to do?
A. Make political contributions in foreign countries
B. Pay foreign government officials to gain business advantages
C. Avoid reporting overseas revenue
D. Invest in foreign subsidiaries
✅ Correct Answer: B
Rationale:
The Foreign Corrupt Practices Act (FCPA) makes it illegal for U.S.
companies and individuals to bribe foreign government officials to obtain
or retain business. Its purpose is to promote ethical business practices
and transparency in international markets. The Act also includes
accounting provisions requiring accurate financial records. Violations can
result in severe civil and criminal penalties.
2. What are the two basic types of financial instruments?
A. Stocks and options
B. Bonds and derivatives
C. Stocks and bonds
D. Mutual funds and ETFs
✅ Correct Answer: C
, Rationale:
Stocks and bonds are the two fundamental financial instruments used by
firms to raise capital. Stocks represent ownership in a company, while
bonds represent debt obligations. These instruments form the foundation
of financial markets and are essential to corporate financing decisions.
Most other instruments are derived from or structured around these two
basics.
3. What are secondary markets?
A. Markets where securities are issued for the first time
B. Markets where governments issue bonds
C. Markets where securities are traded after issuance
D. Markets used only by institutional investors
✅ Correct Answer: C
Rationale:
Secondary markets are markets where investors buy and sell securities
that have already been issued. Examples include stock exchanges such as
the NYSE and NASDAQ. These markets provide liquidity, allowing investors
to convert investments into cash. Secondary markets do not provide new
capital to issuing firms but are vital for market efficiency.
4. What do cash flows from operating activities report?
A. Cash from issuing stock and debt
B. Cash generated from day-to-day business operations
C. Cash used to purchase long-term assets
D. Cash changes caused by inflation
✅ Correct Answer: B
Rationale:
Cash flows from operating activities measure the cash generated or used
by a firm’s core business operations. This includes revenue from sales and
