question What is the term for the amount of money a company earns from each unit sold after covering variable costs

What is the process of converting one currency into another for trading and investment purposes in International Finance?

A. Forex Trading
B. Global Capital Flows
C. Currency Exchange Rates
D. Economic Globalization

What is the process of protecting against potential losses due to changes in currency exchange rates in International Finance?

A. Currency Exchange Mechanisms
B. Capital Controls
C. Hedging Strategies
D. Exchange Rate Integration

The Net Margin is calculated as:

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

What financial tool assesses a company's ability to meet its short-term obligations using its total current assets?

A. Current Ratio
B. Quick Ratio
C. Return on Equity
D. Debt Ratio

What term refers to the use of debt to increase the return on equity?

A. Cost of Capital
B. Leverage
C. Capital Structure
D. Financial Modeling

What financial metric measures the percentage of profit a company generates from its shareholders' equity?

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

In financial management, what decision involves determining the optimal level of debt for a company?

A. Capital Budgeting
B. Profit Maximization
C. Capital Structure
D. Working Capital Management

What does the term "Hedging" mean in financial management?

A. Diversifying investments
B. Reducing exposure to financial risk
C. Maximizing profits
D. Asset Management

What is the term for the practice of spreading investments across different assets to reduce risk?

A. Hedging
B. Diversification
C. Break-Even Analysis
D. Profit Maximization

What refers to the agreements between countries to limit the flow of capital across borders in International Finance?

A. Capital Mobility
B. Currency Exchange Mechanisms
C. Balance of Payments
D. Capital Controls