question What term refers to the process of evaluating and selecting investment projects that will maximize a company s value

Operating Income is calculated as:

A. Revenue - Cost of Goods Sold
B. Net Income / Revenue
C. Gross Margin - Operating Expenses
D. Total Expenses - Net Income

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

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

What type of costs are relevant for decision-making and can be avoided if a particular course of action is taken?

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

What term is used to describe the risk associated with the potential for loss due to disruptions in the supply chain?

A. Supply Chain Risk
B. Operational Risk
C. Credit Risk
D. Market Risk

Which method of inventory valuation assumes that the newest inventory is used first?

A. LIFO
B. Decision Making
C. Standard Costing
D. Variance Analysis

What term refers to the risk associated with the potential for harm to the environment and natural resources?

A. Environmental Risk Management
B. Technology Risk
C. Compliance Risk
D. Decision Risk

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 does ROA stand for in financial analysis?

A. Return on Assets
B. Return on Equity
C. Return on Efficiency
D. Return on Investment

What financial tool assesses a company's ability to cover its interest expenses with its operating income?

A. Interest Coverage Ratio
B. Profit Maximization
C. Financial Ratios
D. Debt Service Coverage Ratio

What does the term "Cost of Equity" represent in financial management?

A. The cost of obtaining debt
B. The cost of obtaining equity
C. The total cost of financing
D. The total expenses of the company