Questions and Answers 2023 2024

WGU C708 Principles of Finance V4 Pre-Assessment Questions and Answers 2023 – 2024 (Verified Answers) 1.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 2.Which activity is financial management responsible for ANS Ensuring suffi- cient financing is available 3.What is one of the main areas of the financial environment ANS Investments 4.What is a common challenge in the world of finance ANS It generally operates with a high degree of uncertainty. 1 / 2

5.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 6.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 7.What is one benefit of a sole proprietorship ANS The owner has uninterrupted control of the business.

8.What is a disadvantage of a general partnership ANS Owners' personal assets are not protected against claims of creditors.

9.What is one advantage of an LLC ANS Limited personal liability 10.What is an example of a potential principal-agent problem ANS Corporate executives buying other companies to expand their influence