Net Operating Exposure

question 35

Multiple Choice

Net operating exposure

• A) is the gross finance exposure minus gross operating exposure.
• B) is the difference between the parent company and its subsidiaries exposures.
• C) is static in nature regardless of the macro-environment.
• D) is the net result of all cash outflows and inflows by currency.

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Definitions:

Gross Wages

Gross Wages refer to the total amount of compensation earned by an employee before any deductions or taxes are taken out.

Net Wages

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.

Allowance or Exemption

A reduction in the amount of income that is subject to tax, or a legal deduction from reported income to reduce taxable income.

Nontaxable

Income or transactions that are not subject to taxation by government authorities.