Questions and Answers 2023 2024

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WGU C708 Principles of Finance V4 Pre-Assessment Questions and Answers 2023 – 2024 (Verified Answers)

• The credit manager for a company is responsible for setting the company's

credit policy regarding availability and limits for customers.

What is one of the additional responsibilities of this credit manager ANS Collect- ing past-due accounts

• Which activity is financial management responsible for ANS Ensuring

suffi- cient financing is available

• What is one of the main areas of the financial environment ANS

Investments

• What is a common challenge in the world of finance ANS It generally

operates with a high degree of uncertainty.

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• Which variable must be considered when a corporation's finance depart-

ment is determining the best strategy for financing a project ANS The amount of debt and equity financing currently in use

• An individual is interested in establishing a lawn care business as a sole

proprietorship.

What will be a disadvantage of choosing this business model ANS Unlimited liability

• What is one benefit of a sole proprietorship ANS The owner has

uninterrupted control of the business.

• What is a disadvantage of a general partnership ANS Owners' personal

assets are not protected against claims of creditors.

• What is one advantage of an LLC ANS Limited personal liability

• What is an example of a potential principal-agent problem ANS

Corporate executives buying other companies to expand their influence

• An individual decides to sell corporate bonds to another investor.

Which type of financial market or institution would be involved in this trans-

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