FNSINC514 - Case Study Questions (Daisy Valley) v1
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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
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Use the learner material provided in your online student portal as well as research
materials such as books, internet, magazines, workplace documentation etc. to
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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
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© 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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