FNSINC514 - Case Study Questions (Daisy Valley) v1

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Feb 20, 2024

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FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1) Case Study #1 (Daisy Valley) – Case Study Questions Case Study #1 Questions (Daisy Valley) Scenario Instructions Page 1 of 10 © Real Estate Academy Australia Version 1.0 – July 2022 RTO 32426
FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1) Case Study #1 (Daisy Valley) – Case Study Questions What you need to do: Answer the questions below by writing in the space provided. You are required to answer all questions correctly. If correct, you will see ‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of your learner portal next to the assessment name. The assessor will provide feedback and a Record of Results in the assessment task once graded. You will be required to resubmit your work for any ‘Not Satisfactory’ assessment tasks. What you will need: Use the learner material provided in your online student portal as well as research materials such as books, internet, magazines, workplace documentation etc. to assist you in gaining the knowledge required to answer the questions. Remember that the assessment task is self-paced and open book. You can use whichever resources you have to answer the questions. What you need to submit: Your answers to these questions. How to Submit your Assessment: Upload your completed document into your learner portal following the instructions provided within the assessment task. You can drag and drop the file into the window or use the add file icon in the top left of the submission window and select the file your wish to upload by using the browse/choose file option. Click on “ finish attempt ” to submit it for grading. Page 2 of 10 © Real Estate Academy Australia Version 1.0 – July 2022 RTO 32426
FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1) Case Study #1 (Daisy Valley) – Case Study Questions Scenario 1 – Daisy Valley Daisy Valley is a famous Australian Thoroughbred breeding farm. Many grand champions all over the world were born thanks to their stud services. They have decided to add some new blood to their stock and carefully selected a broodmare with a great temperament, top pedigree, and amazing racing traits. However, the owners of the promising stallion chosen do not allow artificial insemination and require the broodmare to be brought to the stallion for ‘in-hand’ breeding, under restricted conditions using a highly supervised and controlled process. They are in Kentucky, America, and it has been agreed that the broodmare will fly a month before her estimated cycle and that all monitoring will be performed by the stallion farm’s team of experts until a successful mating is achieved. All aspects of the project have been thoroughly considered and an amazing presentation was performed by the Daisy Valley owners themselves, to secure the funding needed for this exceptional project to succeed. They have a strong financial position, with no issue to service the loan repayments, not to mention the waiting list of registered buyers and breeders who have been waiting for new blood to arrive in Australia. The security offered against the credit facility is acceptable to the lender and the business plan realised by the accountant shows that Daisy Valley’s Net Profit could double in the next five years as a result of the breeding plan. The owners are to pay for the broodmare transportation, which costs a total of $77,000 in Business Class, with all the premium options selected. They require a credit facility to cover the Skylight Racing Costs (quote provided below). Daisy Valley managers mentioned that they will be open to add the lender as one of their main sponsors, if the funding is accepted, which would be a great way to increase the lender’s public visibility at prestigious events. Based on the supporting documentation and the information you hold, complete the activities below. These activities will assess your ability to Apply ethical frameworks and principles to make and act upon decisions. Page 3 of 10 © Real Estate Academy Australia Version 1.0 – July 2022 RTO 32426
FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1) Case Study #1 (Daisy Valley) – Case Study Questions Question 1 Analyse the context of the situation highlighted in this case study. a) Explain why this scenario has a chance of causing an ethical issue for the lenders considered. Lenders may face ethical issues in this scenario because it involves animal testing and experimentation on animals. There are some organizations that oppose animal testing because it causes suffering to the animals b) What purpose, values, and ethics a lender is likely to demonstrate if it refuses to be part of Daisy Valley’s project? Choosing not to participate in Daisy Valley's project represents a lender's goals, values, and ethics as follows: They may not want to support and get involved in animal experiments. They may also demonstrate their ethics by avoiding animal experiments and promoting animal welfare. Some clients choose a bank that shares similar values to their own to enhance their ethical side even more. They Want to Protect their reputation, by avoiding any relationship with companies that violate ethical standards, to avoid legal repercussions and any negative publicity that might result from a connection to an unethical breeder. c) If a lender declines to consider a credit application regarding Daisy Valley’s project, what impact would this decision have on clients and potential new clients if it was publicised? (Positive, negative, neutral…). Please detail your answer. Daisy Valley's business may suffer if its credit application is rejected and publicised. In such a situation, Daisy Valley's reputation would likely be damaged, as potential new clients would believe they are unable to obtain funding for their project. Potential new clients may also be discouraged from applying for financing with Daisy Page 4 of 10 © Real Estate Academy Australia Version 1.0 – July 2022 RTO 32426
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