Finance Skills for Managers - D076 Questions and Answers A

Finance Skills for Managers - D076
Questions and Answers 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? ✔✔Business finance
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
What is the primary goal of the financial manager of a firm? ✔✔To maximize 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?
What is the primary aim of personal finance goals? ✔✔To maximize from products
purchased and services obtained