Risk Assessment May Be

question 185

Multiple Choice

Risk assessment may be:

• A) Quantitative only
• B) Qualitative only
• C) Both A&B
• D) Qualitative in general and quantitative in specific

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross income.

Residual Income

The income that remains after subtracting all required costs of capital from operating income.

Average Operating Assets

The average value of the assets used in the normal operation of a business to generate revenue, calculated typically over a fiscal year.

Net Operating Income

A measure of a company's profitability by subtracting operating expenses from its operating revenues.