question What term refers to the practice of using financial instruments to protect against the risk of adverse price movements

What term refers to the total amount of money invested in a particular asset or portfolio?

A. Investment Amount
B. Portfolio Size
C. Asset Value
D. Capital Invested

What is the primary goal of "capital budgeting" in the context of corporate finance?

A. Minimizing costs
B. Maximizing shareholder wealth
C. Allocating funds among investments
D. Achieving market dominance

Which tax is imposed on the profits earned by an individual or business from the sale of assets such as stocks, bonds, or real estate?

A. Capital Gains Tax
B. Value Added Tax (VAT)
C. Corporate Tax
D. Income Tax

What term describes the deliberate act of arranging financial affairs to pay the least amount of tax possible?

A. Tax Compliance
B. Tax Evasion
C. Tax Planning
D. Tax Refund

Which technique involves the analysis of cash inflows and outflows to assess the financial health of a business?

A. Cash Flow Analysis
B. Decision Making
C. Profitability Analysis
D. Cost-Volume-Profit (CVP) Analysis

In the context of corporate finance, what does the term "capital restructuring" involve?

A. Modifying the mix of debt and equity
B. Adjusting financial statements
C. Changing financial goals
D. Altering dividend policies

Which tax is imposed on the income earned by an individual or business from investments in financial instruments such as stocks and bonds?

A. Corporate Tax
B. Income Tax
C. Capital Gains Tax
D. Value Added Tax (VAT)

What term refers to the process of spreading investments across different asset classes to reduce risk?

A. Diversification
B. Asset Allocation
C. Risk Management
D. Profit Maximization

What term refers to the costs associated with producing one additional unit of a product?

A. Contribution Margin
B. Variable Costs
C. Relevant Costs
D. Internal Controls

What term refers to the systematic analysis and planning of a company's financial future?

A. Financial Modeling
B. Financial Planning
C. Treasury Management
D. Corporate Governance