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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
operateswith a high degree of uncertainty.
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- Which variable must be considered when a corporation’s finance department is determining the best strategy for financing a project ANS The
amount ofdebt 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
Unlimitedliability - What is one benefit of a sole proprietorship ANS The owner has
uninterruptedcontrol of the business. - What is a disadvantage of a general partnership ANS Owners’ personal
assetsare 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
Corporateexecutives 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