D076 OA EXAM 2025/2026 (Success Guranteed)
Which area of finance deals with sources of funding and the capital structure of corporations and
seeks to increase the value of a firm to its owners? - Business finance
What is the primary difference between finance and accounting? - Finance focuses on the future,
while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create more wealth and
earn positive returns? - Investments
What is the primary goal of the financial manager of a firm? - To maximize owner wealth
What should be the main question a firm asks when considering any investment decision? - Do the
benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - To maximize satisfaction from products
purchased and services obtained
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project? - Making financing decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold on
any public stock exchange? - Private equity
Which task does a financial manager perform when assessing the costs and benefits of potential
projects? - Making investment decisions
What tool can you use to understand your overall personal cash flows? - Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - Investing in a savings
account
You want to buy a house, so you obtain a mortgage for which you can afford the monthly payments.
What process have you engaged in as part of your financial decision-making? - Financing
, What area of finance involves deciding which assets to invest in to create wealth in the future? -
Investments
Hannah is the financial manager of a firm. A project that she has recommended has been approved
and will cost $5 million. Since the company does not have enough cash on reserve, Hannah must
figure out how to raise enough money to start the project. She can choose whether to issue new
bonds, new stocks, a mortgage loan, or some combination of those options. What task is Hannah
performing in this scenario? - Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200 each month to
reach their goal of taking their children to visit their grandparents in Spain next summer. What is the
objective of setting such a goal? - To maximize individual utility
Which professional works with individuals to help them achieve their financial goals? - Financial
planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car, but he is still
trying to decide how to pay for it. He has barely over $30,000 in his bank account. He can either take
out an auto loan from a bank or use a mix of cash and an auto loan. - Financing a goal
Which area of finance involves deciding which assets to invest in to create wealth in the future? -
Investments
What is the main goal of a firm? - To maximize owner wealth
What are financial managers doing if they evaluate whether it is worth spending money on research
and development for a new product? - Making an investment decision
Which type of financial market is where securities such as stocks and bonds are traded after their
initial issuance? - The secondary financial market
What type of financial institution is an insurance company? - Contractual
Which financial institution invests funds contributed by a company to provide retirement funds for
the company's employees? - Pension fund
Which area of finance deals with sources of funding and the capital structure of corporations and
seeks to increase the value of a firm to its owners? - Business finance
What is the primary difference between finance and accounting? - Finance focuses on the future,
while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create more wealth and
earn positive returns? - Investments
What is the primary goal of the financial manager of a firm? - To maximize owner wealth
What should be the main question a firm asks when considering any investment decision? - Do the
benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - To maximize satisfaction from products
purchased and services obtained
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project? - Making financing decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold on
any public stock exchange? - Private equity
Which task does a financial manager perform when assessing the costs and benefits of potential
projects? - Making investment decisions
What tool can you use to understand your overall personal cash flows? - Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - Investing in a savings
account
You want to buy a house, so you obtain a mortgage for which you can afford the monthly payments.
What process have you engaged in as part of your financial decision-making? - Financing
, What area of finance involves deciding which assets to invest in to create wealth in the future? -
Investments
Hannah is the financial manager of a firm. A project that she has recommended has been approved
and will cost $5 million. Since the company does not have enough cash on reserve, Hannah must
figure out how to raise enough money to start the project. She can choose whether to issue new
bonds, new stocks, a mortgage loan, or some combination of those options. What task is Hannah
performing in this scenario? - Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200 each month to
reach their goal of taking their children to visit their grandparents in Spain next summer. What is the
objective of setting such a goal? - To maximize individual utility
Which professional works with individuals to help them achieve their financial goals? - Financial
planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car, but he is still
trying to decide how to pay for it. He has barely over $30,000 in his bank account. He can either take
out an auto loan from a bank or use a mix of cash and an auto loan. - Financing a goal
Which area of finance involves deciding which assets to invest in to create wealth in the future? -
Investments
What is the main goal of a firm? - To maximize owner wealth
What are financial managers doing if they evaluate whether it is worth spending money on research
and development for a new product? - Making an investment decision
Which type of financial market is where securities such as stocks and bonds are traded after their
initial issuance? - The secondary financial market
What type of financial institution is an insurance company? - Contractual
Which financial institution invests funds contributed by a company to provide retirement funds for
the company's employees? - Pension fund
