Which of the Following Is True

question 12

Multiple Choice

Which of the following is true

• A) Netting always leads to a reduction in a company's exposure to a counterparty
• B) Netting always leads to a company's exposure to a counterparty either staying the same or going down
• C) Netting always increases a company's exposure to a counterparty
• D) Netting can increase or reduce the exposure

---

Definitions:

Residual Income

The amount of income that remains after all personal debts and expenses have been paid.

Minimum Acceptable

The lowest level or standard that is satisfactory or allowable.

Income From Operations

Represents the profit from a company's core business operations, excluding deductions of interest and taxes.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.