Coursera Fundamentals Of Finance Quiz Answers — Week 1

Alex was thrilled to have applied the concepts from Week 1 of the Coursera course to her own lemonade stand. She felt more confident in her understanding of finance and was excited to continue learning.

Alex's goal was to sell lemonade to thirsty customers at the local park on a sunny Saturday. She had $100 in initial capital, which she used to buy lemons, sugar, cups, and a pitcher. She planned to sell lemonade for $1 per cup. coursera fundamentals of finance quiz answers week 1

As Alex considered her lemonade stand, she thought about the $100 she invested initially. She realized that if she had put that money in a savings account, it would have earned interest over time. This concept is known as the . Alex understood that a dollar today is worth more than a dollar in the future, because she could invest it and earn interest. Alex was thrilled to have applied the concepts

On the day of the big sale, Alex set up her lemonade stand near a busy street. She noticed that some people were willing to pay more for lemonade than others. This was an example of a , where buyers and sellers interact to determine prices. Alex was a seller, and her customers were buyers. The price of lemonade was determined by supply and demand. She had $100 in initial capital, which she

As Alex thought about her lemonade stand, she realized that her primary goal was to . She wanted to sell as much lemonade as possible to make the most money. This aligned with the course material, which stated that the primary goal of a firm is to maximize shareholder wealth.

As Alex started to track her expenses and revenues, she realized that she needed to understand the difference between finance and accounting. was concerned with making decisions about how to invest her money and manage risk, while accounting was focused on recording and reporting her financial transactions. Alex knew she needed to keep track of her sales and expenses (accounting) to make informed decisions about her business (finance).