question Which type of risk is associated with the potential for loss due to the failure of internal processes or systems

What is the term for the costs that do not vary with changes in production volume or activity levels?

A. Variable Costs
B. Fixed Costs
C. Relevant Costs
D. Internal Controls

What financial technique evaluates the potential impact of various scenarios on a company's financial performance?

A. Hedging
B. Financial Forecasting
C. Risk Management
D. Financial Analysis

What is the practice of governments influencing their currency's value to gain a trade advantage in International Finance?

A. Currency Manipulation
B. Capital Mobility
C. Sovereign Debt
D. Exchange Rate Mechanisms

Which technique evaluates the profitability of an investment by analyzing its expected cash inflows and outflows over time?

A. Financial Analysis
B. Time Value of Money
C. Capital Budgeting
D. Profit Maximization

The formula for the Debt Ratio is:

A. Total Debt / Total Assets
B. Total Assets / Total Liabilities
C. Total Equity / Total Assets
D. Total Liabilities / Total Equity

Which analysis technique helps evaluate the impact of changes in sales volume on profits?

A. Cost-Volume-Profit (CVP) Analysis
B. Profitability Analysis
C. Break-Even Point
D. Budgeting

What is the term for the legal reduction of tax liability by reducing the taxable income through various allowable expenses?

A. Tax Credits
B. Tax Exemptions
C. Tax Deductions
D. Tax Liability

What is the cost of obtaining funds for a business, including both debt and equity?

A. Budgeting
B. Cost of Capital
C. Capital Structure
D. Cash Flow Management

Which financial decision involves determining the structure and composition of a company's long-term debt and equity?

A. Financing Decisions
B. Dividend Policy
C. Capital Structure
D. Risk Management

What is the process of systematically identifying potential risks that could affect an organization's objectives?

A. Risk Assessment
B. Risk Identification
C. Risk Mitigation
D. Risk Control