WGU D076 Finance Skills for Managers Latest Updated Already Passed

What is a reasonable alternative to keeping an emergency stash of cash?

Investing in a savings account

Investing in a readily withdrawable account that still earns some interest is a value-preserving

alternative.

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?

Business finance is the area of finance that deals with uses and sources of funding to increase the

value of the firm.

What is the primary difference between finance and accounting?

Finance focuses on the future, while accounting is generally backward-looking.

Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns?

Investments is the area of finance that seeks to create wealth in the future by deciding where to

allocate money.

What is the primary goal of the financial manager of a firm?

To maximize owner wealth.

The financial manager should make decisions based on the primary goal of maximizing owner

wealth.

What should be the main question a firm asks when considering any investment decision?

Do the benefits of this investment outweigh the costs?

For any investment, you should expect to receive a benefit worth at least as much as the initial

cost.