WGU D076 OBJECTIVE ASSESSMENT FINANCE SKILLS FOR MANAGERS NEWEST 2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

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WGU D076 OBJECTIVE ASSESSMENT FINANCE

SKILLS FOR MANAGERS NEWEST 2024 ACTUAL

EXAM 300 QUESTIONS AND CORRECT

DETAILED ANSWERS (VERIFIED ANSWERS)

|ALREADY GRADED A+

Which task does a financial manager perform when assessing

the costs and benefits of potential projects? - ANSWERMaking investment decisions -Understanding how benefits

weigh up against costs is the first priority before moving

forward with financing and managerial decisions.

What does the term legal describe? - ANSWER- An action that

is in accordance with the laws and rules set by an authority. -

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 it is not. Also,

the fee to invest in the product is higher than the fee to invest in

a market index fund. If Jack sells his company's investment

product, the customer's loyalty to the company is doubled.

Which actions should Jack take? - ANSWER- Give a personal

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recommendation of the company's product while explaining its

performance relative to the market over the past several years.-

Giving the recommendation to sell a product is fine, but you

should never hide other information. Sharing information about

index funds and comparing your product to others is a fair action

to take for the client.

Why might a manager manipulate accounting procedures? -

ANSWER- To make the company's performance look good -

A manager might manipulate accounting procedures to inflate

the earnings of a company, which would optimize bonuses and

stock-price-related benefits for management.

Which situation is an example of an agency problem? -

ANSWER- Managers follow their own interests instead of the

owners' interest. - An agency problem occurs when the agent (a

manager) does not act in the best interest of the owners.

A company is trying to finance a project with a mortgage loan

from a bank. The company's assessment of the project indicates

that the company may experience several years of loss until the

project becomes profitable. This means that the company might

lose its ability to pay back the loan and the interest on the

mortgage. What action might the bank take to protect its

interest? - ANSWER- Set a strict covenant that the company

cannot easily achieve. - By setting a strict covenant, there is a

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risk that the company may not meet its obligation, which would

deter the company from taking on risky projects.

What are the main services offered by financial institutions? -

ANSWER- Accepting a wide variety of deposits, offering

investment products, providing loans, and brokering financial

transactions -Financial institutions such as banks, insurance

companies, and mutual fund companies provide these services.

What is the main objective of personal financial goals? -

ANSWER- To maximize individual utility -You set goals and

act to increase your satisfaction or happiness by taking care of

necessities and achieving priorities.

Which task does the financial manager of a firm perform that

involves the issuance of new stocks and bonds? - ANSWERMaking investing decisions -Making investment decisions does

not involve the issuance of new stocks and bonds.

Why is understanding the definition of finance important in

managing personal finances? - ANSWER- It helps individuals

compare the costs and benefits of an action to determine whether

to take that action. -Any financial decision should make sense in

terms of its costs and benefits.

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In which type of market would a company issue bonds or stocks

for the first time? - ANSWER- Primary market -This is the

purpose of a primary market.

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Which type of financial institution is a mutual fund? -

ANSWER- Investment institution - Investment institutions

provide individuals and firms access to financial markets.

Which financial institution specializes in managing and

administering retirement funds? - ANSWER- Pension funds -

Pension funds specialize in retirement funds.

Which type of economic indicator is the consumer price index? -

ANSWER- Lagging indicator - CPI usually changes after the

economy as a whole changes.

What does the term ethical refer to? - ANSWER- The accepted

standards of conduct that guide a person's behavior -Ethical

refers to the accepted standards of conduct that guide a person's

behavior.

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