D076 OA PREP 2025 EXAMINATION (80 Questions with
100% Correct Answers)
Finance - The study of managing and allocating funds at the personal or business level.
Accounting - The system of recording, reporting, and summarizing past financial information and
transactions.
Capital - A financial asset that can be used by a firm or individual. Examples of capital may be
machinery or cash held by a firm.
Subspecialties of Finance - 1. Business finance
2. Investments
3. Financial institutions
Business finance - An area of finance that deals with sources of funding, the capital structure of
corporations, the actions that managers take to increase the value of the firm to its owners, and the
tools and analysis used to allocate financial resources.
Capital Structure - The mixture of debt and equity used to finance a firm.
Investments - An area of finance that involves deciding which assets to invest in to create wealth in
the future.
Asset Pricing - The process of valuing assets.
Current Market Value - What someone would pay right now for an asset.
Financial Institutions - An area of finance that includes firms or organizations that exist to accept a
wide variety of deposits, to offer investment products to individuals and businesses, to provide loans,
or to broker financial transactions.
Utility - The total satisfaction received from consuming goods and services.
,Publicly Traded Firm - Firms that have issued shares to the public.
Privately Held Company - Firms that have not issued shares to the public where the ownership rights
are privately held.
What are 3 main tasks of a Financial Manager - 1. Making investment decisions
2. Making financing decisions
3. Managing working capital
Research & Development - The business function responsible for improving and developing services
and products.
Cash Management - Managing the day-to-day finance operations of a firm.
Tax Strategies - Methods used to minimize the amount of taxes a business pays.
Financial Policy Implementation - Incorporating new finance ideas within a firm.
Venture Capitalists - Professional managers of investment capital that typically invest in very young
new ventures.
Harvest - Generating cash or stock from the sales or IPO of companies in the portfolio of
investments.
Teller - An entry-level commercial bank position with the responsibility to interact with customers at
the bank's front desk or drive-through window.
Credit Analyst - A commercial bank position with the responsibility to assess the riskiness of lending
to borrowers and determining whether or not loans should be extended to potential bank clients.
Personal Banker - A commercial bank position with the responsibility to find and attract new clients.
, Trusts - An arrangement that allows a third party to hold assets on behalf of a beneficiary or
beneficiaries.
Estates - Everything that a person owns or controls, especially at death.
Wills - A legal expression of an individual's wishes concerning the deposition of his or her property
after death.
Liquidity - The ability to turn financial securities into cash easily without losing significant value.
Treasury Securities - A debt instrument (bond) that is issued by the United States government in
order to raise capital.
Revenues - The top line of the income statement. The total amount of money a business brings in
(before subtracting any costs).
Corporate Bonds - A debt instrument that is issued by a corporation in order to raise capital.
Stock - A share of ownership in a company.
Money Market - A type of financial market used for short-term assets that are held for less than one
year.
Capital Market - A type of financial market used for long-term assets that are held for greater than
one year.
Primary Market - The financial market where securities (stocks and/or bonds) are first sold.
Sydicate - A group of intermediaries that is used to oversee the issuance of stocks and/or bonds.
What are the 3 main types of financial securities? - 1. Treasury securities
2. Corporate bonds
3. Stocks
100% Correct Answers)
Finance - The study of managing and allocating funds at the personal or business level.
Accounting - The system of recording, reporting, and summarizing past financial information and
transactions.
Capital - A financial asset that can be used by a firm or individual. Examples of capital may be
machinery or cash held by a firm.
Subspecialties of Finance - 1. Business finance
2. Investments
3. Financial institutions
Business finance - An area of finance that deals with sources of funding, the capital structure of
corporations, the actions that managers take to increase the value of the firm to its owners, and the
tools and analysis used to allocate financial resources.
Capital Structure - The mixture of debt and equity used to finance a firm.
Investments - An area of finance that involves deciding which assets to invest in to create wealth in
the future.
Asset Pricing - The process of valuing assets.
Current Market Value - What someone would pay right now for an asset.
Financial Institutions - An area of finance that includes firms or organizations that exist to accept a
wide variety of deposits, to offer investment products to individuals and businesses, to provide loans,
or to broker financial transactions.
Utility - The total satisfaction received from consuming goods and services.
,Publicly Traded Firm - Firms that have issued shares to the public.
Privately Held Company - Firms that have not issued shares to the public where the ownership rights
are privately held.
What are 3 main tasks of a Financial Manager - 1. Making investment decisions
2. Making financing decisions
3. Managing working capital
Research & Development - The business function responsible for improving and developing services
and products.
Cash Management - Managing the day-to-day finance operations of a firm.
Tax Strategies - Methods used to minimize the amount of taxes a business pays.
Financial Policy Implementation - Incorporating new finance ideas within a firm.
Venture Capitalists - Professional managers of investment capital that typically invest in very young
new ventures.
Harvest - Generating cash or stock from the sales or IPO of companies in the portfolio of
investments.
Teller - An entry-level commercial bank position with the responsibility to interact with customers at
the bank's front desk or drive-through window.
Credit Analyst - A commercial bank position with the responsibility to assess the riskiness of lending
to borrowers and determining whether or not loans should be extended to potential bank clients.
Personal Banker - A commercial bank position with the responsibility to find and attract new clients.
, Trusts - An arrangement that allows a third party to hold assets on behalf of a beneficiary or
beneficiaries.
Estates - Everything that a person owns or controls, especially at death.
Wills - A legal expression of an individual's wishes concerning the deposition of his or her property
after death.
Liquidity - The ability to turn financial securities into cash easily without losing significant value.
Treasury Securities - A debt instrument (bond) that is issued by the United States government in
order to raise capital.
Revenues - The top line of the income statement. The total amount of money a business brings in
(before subtracting any costs).
Corporate Bonds - A debt instrument that is issued by a corporation in order to raise capital.
Stock - A share of ownership in a company.
Money Market - A type of financial market used for short-term assets that are held for less than one
year.
Capital Market - A type of financial market used for long-term assets that are held for greater than
one year.
Primary Market - The financial market where securities (stocks and/or bonds) are first sold.
Sydicate - A group of intermediaries that is used to oversee the issuance of stocks and/or bonds.
What are the 3 main types of financial securities? - 1. Treasury securities
2. Corporate bonds
3. Stocks
