1
WGU D775
WGU D775 | Business Finance Exam
Section 1 | Questions & Answers| Grade
A| 100% Correct | (2025/ 2026 Update)
Three Roles of Business Finance - ANS ✓1. Using financial ratios to manage the business
2. Applying skills with time value of money to determine which projects to invest in
3. Controlling the risk associated with projects by computing the cost of capital to
determine how to fund the chosen projects
What is business finance? - ANS ✓The use of financial measures to help management
make decisions
What does capital budgeting in business finance involve? - ANS ✓Evaluating potential
investment projects
What is the role of financial ratios in business finance? - ANS ✓To analyze and interpret
business performance
What is another term for business finance? - ANS ✓Corporate finance
WGU D775
, 2
WGU D775
Which is a characteristic of business finance? - ANS ✓Strategic future planning
One of three roles of business finance that involves computing financial measures:
_______ analysis - ANS ✓Ratio Analysis
While accounting is focused on historical data, finance is focused on _____________
financial outcomes and projections. - ANS ✓Future
The process of recording, summarizing, and reporting financial transactions to provide
transparency and compliance in financial statements: - ANS ✓Accounting
The area of finance that helps manage individual and household financial activities: -
ANS ✓Personal
One of the three roles of business finance: controlling ___________ associated with projects
by determining how to fund them. - ANS ✓Risk
One of the 3 roles of business finance that involves applying skills with time value of
money to determine which projects to invest in: __________ budgeting - ANS ✓Capital
WGU D775
, 3
WGU D775
The management of assets, liabilities, and financial planning to optimize the use of
resources for business growth and stability. - ANS ✓Finance
The area of finance that focuses on the management of a company's financial activities
and strategies. - ANS ✓Business Finance
The area of finance that involves managing a governments revenues, expenditures, and
debt. - ANS ✓Public Financing
Central _________ issue currency and set monetary policy in the United States. - ANS
✓Banks
Most common type of stock - ANS ✓Common stock
Common stock - ANS ✓A type of security that represents ownership in a corporation,
granting shareholders voting rights and a claim on a portion of the company's profits
through dividends.
WGU D775
WGU D775
WGU D775 | Business Finance Exam
Section 1 | Questions & Answers| Grade
A| 100% Correct | (2025/ 2026 Update)
Three Roles of Business Finance - ANS ✓1. Using financial ratios to manage the business
2. Applying skills with time value of money to determine which projects to invest in
3. Controlling the risk associated with projects by computing the cost of capital to
determine how to fund the chosen projects
What is business finance? - ANS ✓The use of financial measures to help management
make decisions
What does capital budgeting in business finance involve? - ANS ✓Evaluating potential
investment projects
What is the role of financial ratios in business finance? - ANS ✓To analyze and interpret
business performance
What is another term for business finance? - ANS ✓Corporate finance
WGU D775
, 2
WGU D775
Which is a characteristic of business finance? - ANS ✓Strategic future planning
One of three roles of business finance that involves computing financial measures:
_______ analysis - ANS ✓Ratio Analysis
While accounting is focused on historical data, finance is focused on _____________
financial outcomes and projections. - ANS ✓Future
The process of recording, summarizing, and reporting financial transactions to provide
transparency and compliance in financial statements: - ANS ✓Accounting
The area of finance that helps manage individual and household financial activities: -
ANS ✓Personal
One of the three roles of business finance: controlling ___________ associated with projects
by determining how to fund them. - ANS ✓Risk
One of the 3 roles of business finance that involves applying skills with time value of
money to determine which projects to invest in: __________ budgeting - ANS ✓Capital
WGU D775
, 3
WGU D775
The management of assets, liabilities, and financial planning to optimize the use of
resources for business growth and stability. - ANS ✓Finance
The area of finance that focuses on the management of a company's financial activities
and strategies. - ANS ✓Business Finance
The area of finance that involves managing a governments revenues, expenditures, and
debt. - ANS ✓Public Financing
Central _________ issue currency and set monetary policy in the United States. - ANS
✓Banks
Most common type of stock - ANS ✓Common stock
Common stock - ANS ✓A type of security that represents ownership in a corporation,
granting shareholders voting rights and a claim on a portion of the company's profits
through dividends.
WGU D775
