WGU D076 Objective Assessment V2 (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A

WGU D076 Objective Assessment V2 (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A Q: 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? Answer: It may indicate an economic downturn. Q: Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust? Answer: Moral Q: What characterizes an ethical action? Answer: An ethical action is based on accepted standards of conduct. Q: 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? Answer: Moral Q: Which type of error would result in a set repercussion or penalty given by the government? Answer: Legal Q: 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? Answer: Nora is considering investing in a risky asset just to meet her monthly goal. Q: What are the effects of attempting to maximize shareholder value for a business in an unethical way? Answer: It often leads to decreased shareholder value for the business. Q: 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? Answer: Saving money by paying inadequate wages to workers overseas Q: Why would bondholders set bond contracts that are very strict to deter the company from taking on risky projects? Answer: Bondholders are primarily interested in making sure they will be paid back. Q: Which kind of projects are bondholders interested in? Answer: Safe projects with a higher chance of providing sufficient compensation Q: Which scenario is an example of an agency problem? Answer: A manager purchases a company car and allocates it as a company expense. Q: How can agency costs be mitigated? Answer: Aligning managers' interests with shareholders' interests Q: What is the third step in finding a solution to an ethical dilemma? Answer: Consider all stakeholders involved Q: What does the term legal describe? Answer: An action that is in accordance with the laws and rules set by an authority. Q: 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