D076 Unit 2 financial management test

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? - Agency problem due to conflicting interests How can agency problems be reduced through corporate control? - Executive compensation In which type of market would a company issue bonds or stocks for the first time? - Primary market Personal income is which type of economic indicator? - Coincident What are financial managers doing if they evaluate whether it is worth spending money on research and development for a new product? - Making an investment decision What are the main services offered by financial institutions? - Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions What does the term ethical refer to? - The accepted standards of conduct that guide a person's behavior