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WGU Financial-Management Exam Dumps - Actual Questions Answers

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WGU Financial-Management Questions Answers

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Financial-Management Questions and Answers

Question # 1

What is the purpose of the Sarbanes–Oxley Act requirement for the board of directors to effectively represent shareholders?

A.

To ensure the board’s financial gain

B.

To increase stock prices

C.

To manage daily operations

D.

To represent shareholders’ interests in good faith

Question # 2

Alliah Company produces vaccines at its pharmaceutical facility near a river. It is considering expanding its operations by building a second facility next to the first. The company holds a public hearing to discuss an extra investment it will make to minimize pollution and keep the river clean and thriving for the native wildlife.

How does this effort support the overall goal of the firm?

A.

Alliah Company is seeking to focus initially on maximizing value to the shareholders—or owners—of the firm, and the extra costs to prevent pollution will increase the immediate earnings available for owners.

B.

Alliah Company is focusing on consumers first and foremost to create the greatest value for the company. Reducing this pollution will directly improve the quality of products the company creates.

C.

Alliah Company is considering the long-term impact on shareholder value and the company's social responsibility to all stakeholders—including the environment and local community.

D.

Alliah Company is ensuring this action will reduce immediate costs to maximize employee engagement and earnings—because the ultimate goal of a company is employee-oriented.

Question # 3

What is the bid-ask spread?

A.

The range between the highest and lowest stock prices in a day

B.

The current market price of a stock less its initial public offering listing price

C.

The commission charged by brokers for each transaction

D.

The difference between the price at which a specialist buys and sells a stock

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