WGU D076 Objective Assessment Version 1
(New 2024/ 2025 Update) Finance Skills for
Managers| Questions and Verified Answers|
100% Correct| A Grade
QUESTION
A company that produces soap, shampoo, lotion, and other personal care products has recently
taken a hit due to a competitor's new product line. The company decides to reduce wages for its
labor force to save money while the company focuses on building up its reputation again, but the
company's labor force goes on strike to protest the pay cuts. What type of risk does the strike
represent?
Answer:
Idiosyncratic risk
QUESTION
What makes the expected return subjective and different from other types of returns?
Answer:
The expected return is based on expectational data and the probability of different scenarios
occurring.
QUESTION
Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator
,Answer:
Lagging indicator
QUESTION
What does the term ethical refer to?
The accepted standards of conduct that guide a person's behavior
An idea or thing used as a measure, norm, or model in comparative evaluations
One's beliefs about right and wrong, good and bad, or just and unjust
Following the laws and rules set by an authority
Answer:
The accepted standards of conduct that guide a person's behavior
QUESTION
A company's officers and board of directors are selling their stocks in the firm at higher prices
due to false accounting reports that made the stock seem more valuable than it truly was. Which
ethical issue is occurring in this situation?
Conflict between work and personal affairs
Maximizing shareholder value
Pursuing individual interest over client interests
Agency problem due to conflicting interests
Answer:
Agency problem due to conflicting interests
QUESTION
Which type of interest rate includes interest on interest in addition to interest on the principal?
, Simple interest
Compound interest
Yield to maturity
Nominal interest rate
Answer:
Compound interest
QUESTION
What is the rate at which the average price level of particular goods and services in an economy
increases over a period of time?
Opportunity cost
Inflation rate
Real rate
Nominal rate
Answer:
Inflation rate
QUESTION
1/1
You signed an apartment contract today. You are going to pay $1,500 at the beginning of each
month for the next 12 months, starting today. What type of cash flows is this contract?
A perpetuity
Uneven cash flows
An ordinary annuity
An annuity due
(New 2024/ 2025 Update) Finance Skills for
Managers| Questions and Verified Answers|
100% Correct| A Grade
QUESTION
A company that produces soap, shampoo, lotion, and other personal care products has recently
taken a hit due to a competitor's new product line. The company decides to reduce wages for its
labor force to save money while the company focuses on building up its reputation again, but the
company's labor force goes on strike to protest the pay cuts. What type of risk does the strike
represent?
Answer:
Idiosyncratic risk
QUESTION
What makes the expected return subjective and different from other types of returns?
Answer:
The expected return is based on expectational data and the probability of different scenarios
occurring.
QUESTION
Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator
,Answer:
Lagging indicator
QUESTION
What does the term ethical refer to?
The accepted standards of conduct that guide a person's behavior
An idea or thing used as a measure, norm, or model in comparative evaluations
One's beliefs about right and wrong, good and bad, or just and unjust
Following the laws and rules set by an authority
Answer:
The accepted standards of conduct that guide a person's behavior
QUESTION
A company's officers and board of directors are selling their stocks in the firm at higher prices
due to false accounting reports that made the stock seem more valuable than it truly was. Which
ethical issue is occurring in this situation?
Conflict between work and personal affairs
Maximizing shareholder value
Pursuing individual interest over client interests
Agency problem due to conflicting interests
Answer:
Agency problem due to conflicting interests
QUESTION
Which type of interest rate includes interest on interest in addition to interest on the principal?
, Simple interest
Compound interest
Yield to maturity
Nominal interest rate
Answer:
Compound interest
QUESTION
What is the rate at which the average price level of particular goods and services in an economy
increases over a period of time?
Opportunity cost
Inflation rate
Real rate
Nominal rate
Answer:
Inflation rate
QUESTION
1/1
You signed an apartment contract today. You are going to pay $1,500 at the beginning of each
month for the next 12 months, starting today. What type of cash flows is this contract?
A perpetuity
Uneven cash flows
An ordinary annuity
An annuity due
