WGU C214 Finance Management PVCC updated Exam Questions With Complete Solutions

How can a private firm appropriately maximize shareholder value? - ANSWER-By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? - ANSWER-Because international investing in a global marketplace is the concern of American investors What is one of the two basic types of financial instruments? - ANSWER-Bonds What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign country? Choose 2 - ANSWER-Consumer prices will decrease., Domestic employment will decrease. Which two effects does the unbundling and offshoring of production have on employment when the global value chain is taken into consideration? - ANSWER-Unbundling and offshoring allows firms to offer intermediate and final goods at lower prices, thus increasing employment. Unbundling and offshoring decreases costs, which results in expansion of sales and higher employment What is true about the content and structure of a balance sheet? - ANSWER-It reports the assets, liabilities, and equity at a point in time A company reported an increase in accounts receivable of $5,000 during the recent period. Half of this amount is expected to be collected next period. How will this change in accounts receivable affect the cash flows from the operating activities section? - ANSWER-The change will decrease cash flows from operations by $5,000