WGU D076 Objective Assessment (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A
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WGU D076 Objective Assessment
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WGU D076 Objective Assessment
WGU D076 Objective Assessment (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A
About a year ago, the short-term Treasury bill...
WGU D076 Objective Assessment (Latest 2024/ 2025 Update)
Finance Skills for Managers| Questions and Verified Answers|
100% Correct| Grade A
About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasury note had 2.54%
interest. This week, the 1-year Treasury bill has an interest rate of 3.13%, while the 10-year Treasury note has an
interest rate of 2.28%. What does this information indicate about the future economy?
Correct Answer:
It may indicate an economic downturn.
Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust?
Correct Answer:
Moral
What characterizes an ethical action?
Correct Answer:
An ethical action is based on accepted standards of conduct.
Lucas is a financial advisor working for Bullzai, Inc. He is faced with a dilemma. Bullzai has started changing its
practices in order to increase profit. As a financial advisor, he is now supposed to suggest to clients to invest in
portfolios that will not do as well as the portfolios that Bullzai is invested in. This is an accepted practice done
by other businesses in the industry, and it complies with all standards set by the government. However, Lucas
knows that this practice is not in his clients' best interest. What type of dilemma is Lucas facing?
Correct Answer:
Moral
Which type of error would result in a set repercussion or penalty given by the government?
Correct Answer:
Legal
Nora is an investment manager, which means that she is paid to invest other people's money. To meet her goal
for the month, she is seeking to invest money from clients in an investment that is risky but potentially has a
higher return. What about this situation represents an ethical dilemma?
Correct Answer:
Nora is considering investing in a risky asset just to meet her monthly goal.
What are the effects of attempting to maximize shareholder value for a business in an unethical way?
Correct Answer:
It often leads to decreased shareholder value for the business.
Endothon Company has decided to move its production from the United States to a foreign country. Which
situation below would constitute an un- ethical action by the company?
,Correct Answer:
Saving money by paying inadequate wages to workers overseas
Why would bondholders set bond contracts that are very strict to deter the company from taking on risky
projects?
Correct Answer:
Bondholders are primarily interested in making sure they will be paid back.
, Which kind of projects are bondholders interested in?
Correct Answer:
Safe projects with a higher chance of providing sufficient compensation
Which scenario is an example of an agency problem?
Correct Answer:
A manager purchases a company car and allocates it as a company expense.
How can agency costs be mitigated?
Correct Answer:
Aligning managers' interests with shareholders' interests
What is the third step in finding a solution to an ethical dilemma?
Correct Answer:
Consider all stakeholders involved
What does the term legal describe?
Correct Answer:
An action that is in accordance with the laws and rules set by an authority.
Jack is a personal financial advisor. He is with a new client, and the client is asking him what he recommends
for her portfolio. Jack knows that his firm's investment product performed well last year, but its performance
changes from year to year—some years it is better than the market, and some years it is not. Also, the fee to
invest in the product is higher than the fee to invest in a market index fund. If Jack sells his company's
investment product, the customer's loyalty to the company is doubled. Which actions should Jack take?
Correct Answer:
Give a personal recommendation of the company's product while explaining its performance relative to the
market over the past several years.
Why might a manager manipulate accounting procedures?
Correct Answer:
To make the company's performance look good
Which situation is an example of an agency problem?
Correct Answer:
Managers follow their own interests instead of the owners' interest.
A company is trying to finance a project with a mortgage loan from a bank. The company's assessment of the
project indicates that the company may experience several years of loss until the project becomes profitable.
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