D076 module 3 Question and answers
verified to pass 2025/2026
Ethical Action - correct answer ✔is based on accepted standards of conduct
moral action - correct answer ✔based on a person's sense of right/ wrong, good/bad
legal action - correct answer ✔follows the laws and rules set by authority
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
financial managers - correct answer ✔are interested in safe but successful projects to keep their jobs
secure and compensation steady
shareholders - correct answer ✔have more incentive to take on riskier projects to increase the value of
the company's stocks and their own financial return
bondholders - correct answer ✔are more interested in projects that give them a higher chance of
getting their investment back while 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.
verified to pass 2025/2026
Ethical Action - correct answer ✔is based on accepted standards of conduct
moral action - correct answer ✔based on a person's sense of right/ wrong, good/bad
legal action - correct answer ✔follows the laws and rules set by authority
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
financial managers - correct answer ✔are interested in safe but successful projects to keep their jobs
secure and compensation steady
shareholders - correct answer ✔have more incentive to take on riskier projects to increase the value of
the company's stocks and their own financial return
bondholders - correct answer ✔are more interested in projects that give them a higher chance of
getting their investment back while 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.
