WGU D775 Questions with 100% Correct Answers
Risk-return trade-off Correct Answer: A principle that
guides business finance to optimize resource use.
Capital raising Correct Answer: Securing funding for
business operations and projects.
Money management activity Correct Answer: Involves
the creation, circulation, and management of money.
Common stock Correct Answer: A share of ownership in
a firm with voting rights.
Preferred stock characteristic Correct Answer: Fixed
dividends.
Purpose of bonds for issuers Correct Answer: To raise
capital without diluting ownership.
Junk bonds Correct Answer: Speculative bonds.
Options in financial derivatives Correct Answer: They
give the buyer the right, but not the obligation, to buy or
sell an asset.
,Economies of scale for funds Correct Answer: By making
large-scale investments that reduce transaction costs.
Initial public offering (IPO) Correct Answer: The first sale
of a company's stock to the public.
Secondary market activity Correct Answer: The trading
of stocks on the New York Stock Exchange.
Types of financial markets Correct Answer: Primary
markets and secondary markets.
Role of financial regulators Correct Answer: Ensuring fair
and transparent markets.
Depository institutions Correct Answer: Institutions that
accept deposits and provide loans.
Primary source of revenue for depository institutions
Correct Answer: Interest income from loans.
Rising Consumer Price Index (CPI) effect Correct Answer:
It indicates increased costs for raw materials and labor.
Return on equity goals Correct Answer: Beating their
return on equity goals for each quarter
, Environmental, social, and governance (ESG) criteria
Correct Answer: Impact of integrating ESG criteria into
investment decisions
Long-term risks Correct Answer: Seeking long-term risks to
protect stakeholders
Financial ratios for investors Correct Answer: Purpose of
using financial ratios for investors
Standardized basis for performance evaluation Correct
Answer: How financial ratios help in comparing
companies
Performance benchmarking Correct Answer: How
financial ratios aid in performance benchmarking
Profitability ratios Correct Answer: What do profitability
ratios indicate?
Current ratio Correct Answer: What does the current
ratio evaluate?
High average collection period Correct Answer: What
does a high average collection period indicate?
Risk-return trade-off Correct Answer: A principle that
guides business finance to optimize resource use.
Capital raising Correct Answer: Securing funding for
business operations and projects.
Money management activity Correct Answer: Involves
the creation, circulation, and management of money.
Common stock Correct Answer: A share of ownership in
a firm with voting rights.
Preferred stock characteristic Correct Answer: Fixed
dividends.
Purpose of bonds for issuers Correct Answer: To raise
capital without diluting ownership.
Junk bonds Correct Answer: Speculative bonds.
Options in financial derivatives Correct Answer: They
give the buyer the right, but not the obligation, to buy or
sell an asset.
,Economies of scale for funds Correct Answer: By making
large-scale investments that reduce transaction costs.
Initial public offering (IPO) Correct Answer: The first sale
of a company's stock to the public.
Secondary market activity Correct Answer: The trading
of stocks on the New York Stock Exchange.
Types of financial markets Correct Answer: Primary
markets and secondary markets.
Role of financial regulators Correct Answer: Ensuring fair
and transparent markets.
Depository institutions Correct Answer: Institutions that
accept deposits and provide loans.
Primary source of revenue for depository institutions
Correct Answer: Interest income from loans.
Rising Consumer Price Index (CPI) effect Correct Answer:
It indicates increased costs for raw materials and labor.
Return on equity goals Correct Answer: Beating their
return on equity goals for each quarter
, Environmental, social, and governance (ESG) criteria
Correct Answer: Impact of integrating ESG criteria into
investment decisions
Long-term risks Correct Answer: Seeking long-term risks to
protect stakeholders
Financial ratios for investors Correct Answer: Purpose of
using financial ratios for investors
Standardized basis for performance evaluation Correct
Answer: How financial ratios help in comparing
companies
Performance benchmarking Correct Answer: How
financial ratios aid in performance benchmarking
Profitability ratios Correct Answer: What do profitability
ratios indicate?
Current ratio Correct Answer: What does the current
ratio evaluate?
High average collection period Correct Answer: What
does a high average collection period indicate?
