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WGU C777 OBJECTIVE ASSESSMENT 2 LATEST VERSIONS 2025/2026
(VERSION A AND B) COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||WGU C777 OBJECTIVE ASSESSMENT EXAM PREPARATION
Risk of Covenant - ......ANSWER........By setting a strict covenant, there is a risk that the
company may not meet its obligation, which would deter the company from taking on risky
projects.
Project Assessment - ......ANSWER........The company's assessment of the project
indicates that the company may experience several years of loss until the project becomes
profitable.
Loan Repayment Risk - ......ANSWER........This means that the company might lose its
ability to pay back the loan and the interest on the mortgage.
Bank's Protective Action - ......ANSWER........What action might the bank take to protect its
interest?
Services Offered by Financial Institutions - ......ANSWER........Accepting a wide variety of
deposits, offering investment products, providing loans, and brokering financial
transactions.
Types of Financial Institutions - ......ANSWER........Financial institutions such as banks,
insurance companies, and mutual fund companies provide these services.
Objective of Personal Financial Goals - ......ANSWER........To maximize individual utility -
You set goals and act to increase your satisfaction or happiness by taking care of
necessities and achieving priorities.
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Financial Manager's Task - ......ANSWER........Making investing decisions - Making
investment decisions does not involve the issuance of new stocks and bonds.
Primary Market - ......ANSWER........This is the purpose of a primary market.
Investment Institution - ......ANSWER........Investment institutions provide individuals and
firms access to financial markets.
Mutual Fund - ......ANSWER........Which type of financial institution is a mutual fund?
Pension Funds - ......ANSWER........Pension funds specialize in managing and
administering retirement funds.
Lagging Indicator - ......ANSWER........CPI usually changes after the economy as a whole
changes.
Definition of Ethical - ......ANSWER........Ethical refers to the accepted standards of
conduct that guide a person's behavior.
Agency Problem - ......ANSWER........Agency problem due to conflicting interests -
Accounting manipulation by management in pursuit of higher stock-related compensation
is an example of an agency problem.
Ethical Issue in Agency Problem - ......ANSWER........Which ethical issue is occurring in this
situation?
Annual Percentage Rate (APR) - ......ANSWER........The APR is the annual interest rate that
is charged for borrowing money or that is earned through investment, and it is calculated
on an annual basis.
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Hurdle Rate - ......ANSWER........It is the minimum rate that a firm must surpass to accept a
project.
Inflation Rate - ......ANSWER........The rate at which the average price level of a basket of
goods and services in an economy increases.
Risk-Free Rate - ......ANSWER........What does the risk-free rate indicate?
Understanding Finance - ......ANSWER........It helps individuals compare the costs and
benefits of an action to determine whether to take that action.
Financial Decision Making - ......ANSWER........Any financial decision should make sense in
terms of its costs and benefits.
Risk-free rate - ......ANSWER........Includes inflation and opportunity cost.
Annuity - ......ANSWER........The fixed amount of $100 given every month is an annuity.
Present value - ......ANSWER........The $30,000 is invested before any cash flows, so it is a
relative past cash flow.
Expected return - ......ANSWER........Based on expectational data and the probability of
different scenarios occurring.
Idiosyncratic risk - ......ANSWER........Idiosyncratic risk is the same as firm-specific risk.
WGU C777 OBJECTIVE ASSESSMENT 2 LATEST VERSIONS 2025/2026
(VERSION A AND B) COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+||WGU C777 OBJECTIVE ASSESSMENT EXAM PREPARATION
Risk of Covenant - ......ANSWER........By setting a strict covenant, there is a risk that the
company may not meet its obligation, which would deter the company from taking on risky
projects.
Project Assessment - ......ANSWER........The company's assessment of the project
indicates that the company may experience several years of loss until the project becomes
profitable.
Loan Repayment Risk - ......ANSWER........This means that the company might lose its
ability to pay back the loan and the interest on the mortgage.
Bank's Protective Action - ......ANSWER........What action might the bank take to protect its
interest?
Services Offered by Financial Institutions - ......ANSWER........Accepting a wide variety of
deposits, offering investment products, providing loans, and brokering financial
transactions.
Types of Financial Institutions - ......ANSWER........Financial institutions such as banks,
insurance companies, and mutual fund companies provide these services.
Objective of Personal Financial Goals - ......ANSWER........To maximize individual utility -
You set goals and act to increase your satisfaction or happiness by taking care of
necessities and achieving priorities.
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Financial Manager's Task - ......ANSWER........Making investing decisions - Making
investment decisions does not involve the issuance of new stocks and bonds.
Primary Market - ......ANSWER........This is the purpose of a primary market.
Investment Institution - ......ANSWER........Investment institutions provide individuals and
firms access to financial markets.
Mutual Fund - ......ANSWER........Which type of financial institution is a mutual fund?
Pension Funds - ......ANSWER........Pension funds specialize in managing and
administering retirement funds.
Lagging Indicator - ......ANSWER........CPI usually changes after the economy as a whole
changes.
Definition of Ethical - ......ANSWER........Ethical refers to the accepted standards of
conduct that guide a person's behavior.
Agency Problem - ......ANSWER........Agency problem due to conflicting interests -
Accounting manipulation by management in pursuit of higher stock-related compensation
is an example of an agency problem.
Ethical Issue in Agency Problem - ......ANSWER........Which ethical issue is occurring in this
situation?
Annual Percentage Rate (APR) - ......ANSWER........The APR is the annual interest rate that
is charged for borrowing money or that is earned through investment, and it is calculated
on an annual basis.
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Hurdle Rate - ......ANSWER........It is the minimum rate that a firm must surpass to accept a
project.
Inflation Rate - ......ANSWER........The rate at which the average price level of a basket of
goods and services in an economy increases.
Risk-Free Rate - ......ANSWER........What does the risk-free rate indicate?
Understanding Finance - ......ANSWER........It helps individuals compare the costs and
benefits of an action to determine whether to take that action.
Financial Decision Making - ......ANSWER........Any financial decision should make sense in
terms of its costs and benefits.
Risk-free rate - ......ANSWER........Includes inflation and opportunity cost.
Annuity - ......ANSWER........The fixed amount of $100 given every month is an annuity.
Present value - ......ANSWER........The $30,000 is invested before any cash flows, so it is a
relative past cash flow.
Expected return - ......ANSWER........Based on expectational data and the probability of
different scenarios occurring.
Idiosyncratic risk - ......ANSWER........Idiosyncratic risk is the same as firm-specific risk.
