WGU D076 FINANCE SKILLS FOR MANAGERS
COMPLETE OBJECTIVE ASSESSMENT WITH
CORRECT ANSWERS
◉ FINANCIAL ENVIRONMENT
Suppose an individual does not eat chocolate because eating
chocolate goes against personal beliefs. Which type of standard is
this?
1. Legal
2. Moral
3. Financial
4. Ethical.
Answer: 2. Moral
◉ FINANCIAL ENVIRONMENT
Which action is based upon moral standards?
,1. Although there is no company policy regarding it, a financial
manager chooses not to accept gifts from the company's clients to
avoid creating a conflict of interest.
2. As mandated by government regulations, a financial manager files
a registration statement with the U.S. Securities and Exchange
Commission (SEC) before offering equity securities for sale.
3. As outlined in the company's policies, a financial manager hires a
third-party entity to review all annual report filings to ensure they
are compliant with applicable generally accepted accounting
principles (GAAP).
4. Since it is generally accepted in the company that no personal
information about clients should be released without written
permission, a financial manager denies the request for a third party
to access its data..
Answer: 1. Although there is no company policy regarding it, a
financial manager chooses not to accept gifts from the company's
clients to avoid creating a conflict of interest.
◉ FINANCIAL ENVIRONMENT
What should a potential bondholder (lender) do to prevent a
company (borrower) from taking on risky projects?
,1. Release managers who do not attempt to maximize immediate
shareholder value
2. Encourage manipulation of accounting procedures to optimize the
company's profit
3. Set strict covenants that the company cannot uphold if it chooses
a risky project
4. Separate owners from management so their interests do not
conflict.
Answer: 3. Set strict covenants that the company cannot uphold if it
chooses a risky project
◉ FINANCIAL ENVIRONMENT
What is the term for an individual's beliefs concerning what is and is
not acceptable to personally do?
1. Laws
2. Ethics
3. Honesty
, 4. Morals.
Answer: 4. Morals
◉ FUNDAMENTAL FINANCIAL PRINCIPALS
Which factor contributes to the inflation of the prices of goods and
services over time?
1. Increase in demand for goods and services
2. Decrease in employee demand for higher wages
3. Decrease in costs of production
4. Increase in purchasing power of goods and services.
Answer: 1. Increase in demand for goods and services
◉ FUNDAMENTAL FINANCIAL PRINCIPALS
Why can compounding interest be a good tool but also a significant
detriment?
COMPLETE OBJECTIVE ASSESSMENT WITH
CORRECT ANSWERS
◉ FINANCIAL ENVIRONMENT
Suppose an individual does not eat chocolate because eating
chocolate goes against personal beliefs. Which type of standard is
this?
1. Legal
2. Moral
3. Financial
4. Ethical.
Answer: 2. Moral
◉ FINANCIAL ENVIRONMENT
Which action is based upon moral standards?
,1. Although there is no company policy regarding it, a financial
manager chooses not to accept gifts from the company's clients to
avoid creating a conflict of interest.
2. As mandated by government regulations, a financial manager files
a registration statement with the U.S. Securities and Exchange
Commission (SEC) before offering equity securities for sale.
3. As outlined in the company's policies, a financial manager hires a
third-party entity to review all annual report filings to ensure they
are compliant with applicable generally accepted accounting
principles (GAAP).
4. Since it is generally accepted in the company that no personal
information about clients should be released without written
permission, a financial manager denies the request for a third party
to access its data..
Answer: 1. Although there is no company policy regarding it, a
financial manager chooses not to accept gifts from the company's
clients to avoid creating a conflict of interest.
◉ FINANCIAL ENVIRONMENT
What should a potential bondholder (lender) do to prevent a
company (borrower) from taking on risky projects?
,1. Release managers who do not attempt to maximize immediate
shareholder value
2. Encourage manipulation of accounting procedures to optimize the
company's profit
3. Set strict covenants that the company cannot uphold if it chooses
a risky project
4. Separate owners from management so their interests do not
conflict.
Answer: 3. Set strict covenants that the company cannot uphold if it
chooses a risky project
◉ FINANCIAL ENVIRONMENT
What is the term for an individual's beliefs concerning what is and is
not acceptable to personally do?
1. Laws
2. Ethics
3. Honesty
, 4. Morals.
Answer: 4. Morals
◉ FUNDAMENTAL FINANCIAL PRINCIPALS
Which factor contributes to the inflation of the prices of goods and
services over time?
1. Increase in demand for goods and services
2. Decrease in employee demand for higher wages
3. Decrease in costs of production
4. Increase in purchasing power of goods and services.
Answer: 1. Increase in demand for goods and services
◉ FUNDAMENTAL FINANCIAL PRINCIPALS
Why can compounding interest be a good tool but also a significant
detriment?
