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WGU D076 Quiz Bank (Latest Update) Finance Skills for Managers| Questions and Verified ANSWERs| 100% ANSWER| Grade A Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners?
ANSWER: Business finance
ANSWER: Business finance focuses on funding, capital
structure, and maximizing firm value.
What is the primary difference between finance and accounting?
ANSWER: Finance focuses on the future, while accounting is
generally backward-looking.
ANSWER: Finance plans future resource use, while accounting
records past transactions.
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Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns?
ANSWER: Investments
ANSWER: Investments focus on asset allocation for wealth
creation.
What is the primary goal of the financial manager of a firm?
ANSWER: To maximize owner wealth
ANSWER: Financial managers prioritize decisions enhancing
shareholder value.
What should be the main question a firm asks when considering any investment decision?
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ANSWER: Do the benefits of this investment outweigh the
costs?
ANSWER: Cost-benefit analysis drives investment decisions.
What is the primary aim of personal finance goals?
ANSWER: To maximize satisfaction from products purchased
and services obtained
ANSWER: Personal finance seeks to optimize individual utility.
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of equipment for a new project?
ANSWER: Making financing decisions
ANSWER: Securing funds via a loan is a financing decision.
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Which financial career focuses on investing capital into firms whose shares are not currently sold on any public stock exchange?
ANSWER: Private equity
ANSWER: Private equity invests in non-publicly traded
companies.
Which task does a financial manager perform when assessing the costs and benefits of potential projects?
ANSWER: Making investment decisions
ANSWER: Evaluating project viability is an investment
decision.