WGU C214 Financial Management Overview Concept Quiz Answers

WGU C214 Financial Management Overview Concept Quiz Answers
1. The goal of the corporation is to:
a. Maximize profits
b. Maximize market share
c. Maximize stock price
d. Minimize risk
2. Risk premium is best described as
a. Return on risky securities
b. Compensation for risk-taking
c. Return on stocks
d. Expected return on securities
3. What is the relationship between risk and required return?
a. The two are independent
b. Higher required return causes lower risk
c. Higher risk causes higher required return
d. None of the above
4. The value of money depends upon
a. The timing of the receipt
b.The certainty of receipt
c. The size of the receipt
d. All of the above
5. What is the purpose of the SEC 10-K filing requirement?
a. Promote transparency and efficiency
b. Prevent insider trading
c. Regulate sales practices
d. Prevent monopolies