WGU D076 FINANCE SKILLS FOR
MANAGERS COMPREHENSIVE EXAM
STUDY GUIDE WITH COMPLETE
SOLUTIONS
●● UNIT 2
What is the main objective of personal financial goals?
1. To maximize stock investments
2. To maximize owner wealth
3. To maximize charity donations
4. To maximize individual utility
Answer: 4. To maximize individual utility
Correct! You set goals and act to increase your satisfaction or happiness
by taking care of necessities and achieving priorities.
●● UNIT 2
,Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds?
1. Deciding on accounting standards
2. Making financing decisions
3. Managing working capital
4. Making investing decisions
Answer: 2. Making financing decisions
Correct! Once investment decisions are made, a financial manager
considers different possibilities of financing sources for the investments.
This may include issuing new stocks and bonds.
●● UNIT 2
Why is understanding the definition of finance important in managing
personal finances?
1. It helps individuals act ethically with regard to finances.
2. It helps individuals understand legal issues related to finance.
,3. It helps individuals compare the costs and benefits of an action to
determine whether to take that action.
4. It allows individuals to find an investment with the highest return
possible.
Answer: 3. It helps individuals compare the costs and benefits of an
action to determine whether to take that action.
Correct! Any financial decision should make sense in terms of its costs
and benefits.
●● UNIT 2
In which type of market would a company issue bonds or stocks for the
first time?
1. Dealer market
2. Money market
3. Secondary market
4. Primary market
, Answer: 4. Primary market
Correct! This is the purpose of a primary market.
●● UNIT 2
Which type of financial institution is a mutual fund?
1. Federal institution
2. Contractual institution
3. Depository institution
4. Investment institution
Answer: 4. Investment institution
Correct! Investment institutions provide individuals and firms access to
financial markets.
●● UNIT 2
Which financial institution specializes in managing and administering
retirement funds?
MANAGERS COMPREHENSIVE EXAM
STUDY GUIDE WITH COMPLETE
SOLUTIONS
●● UNIT 2
What is the main objective of personal financial goals?
1. To maximize stock investments
2. To maximize owner wealth
3. To maximize charity donations
4. To maximize individual utility
Answer: 4. To maximize individual utility
Correct! You set goals and act to increase your satisfaction or happiness
by taking care of necessities and achieving priorities.
●● UNIT 2
,Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds?
1. Deciding on accounting standards
2. Making financing decisions
3. Managing working capital
4. Making investing decisions
Answer: 2. Making financing decisions
Correct! Once investment decisions are made, a financial manager
considers different possibilities of financing sources for the investments.
This may include issuing new stocks and bonds.
●● UNIT 2
Why is understanding the definition of finance important in managing
personal finances?
1. It helps individuals act ethically with regard to finances.
2. It helps individuals understand legal issues related to finance.
,3. It helps individuals compare the costs and benefits of an action to
determine whether to take that action.
4. It allows individuals to find an investment with the highest return
possible.
Answer: 3. It helps individuals compare the costs and benefits of an
action to determine whether to take that action.
Correct! Any financial decision should make sense in terms of its costs
and benefits.
●● UNIT 2
In which type of market would a company issue bonds or stocks for the
first time?
1. Dealer market
2. Money market
3. Secondary market
4. Primary market
, Answer: 4. Primary market
Correct! This is the purpose of a primary market.
●● UNIT 2
Which type of financial institution is a mutual fund?
1. Federal institution
2. Contractual institution
3. Depository institution
4. Investment institution
Answer: 4. Investment institution
Correct! Investment institutions provide individuals and firms access to
financial markets.
●● UNIT 2
Which financial institution specializes in managing and administering
retirement funds?
