The Main Risks in the Finance and Investment Process Include

question 18

Multiple Choice

The main risks in the finance and investment process include all of the following,EXCEPT:

• A)Completeness of debt.
• B)Occurrence of interest expense.
• C)Valuation of financial instruments.
• D)Presentation and disclosure of intercorporate investments.

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Definitions:

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net gain or loss.

Contribution Margin Ratio

A financial metric indicating how much of each sales dollar contributes to fixed costs and profit after variable costs are covered.

Target Pre-tax Income

The income goal set by a company before any taxes are applied.

Contribution Margin Per Unit

The difference between the selling price per unit and the variable cost per unit.