(36) What is the definition of “Market Capitalization (Market Cap)” in finance?
- (a) The total value of a company’s outstanding shares of stock, calculated by multiplying the share price by the number of shares.
- (b) The total assets owned by an individual or company.
- (c) The process of selling a company’s assets.
- (d) The calculation of a company’s net income.
(37) What does the term “Economic Recession” refer to in economics?
- (a) A significant decline in economic activity characterized by a decrease in GDP, employment, and consumer spending.
- (b) The total revenue generated by a company.
- (c) The process of merging two or more companies.
- (d) The calculation of a company’s net worth.
(38) What is the definition of “Risk Management” in business?
- (a) The process of identifying, assessing, and mitigating potential risks to a company’s operations, finances, and reputation.
- (b) The total assets owned by an individual or company.
- (c) The amount of money held in a company’s bank account.
- (d) The calculation of a company’s net income.
(39) What does the term “Asset Allocation” mean in investment strategy?
- (a) The strategy of distributing investments across various asset classes, such as stocks, bonds, and cash, to optimize risk and return.
- (b) The total revenue generated by a company.
- (c) The process of merging two or more companies.
- (d) The calculation of a company’s net worth.
(40) What is the definition of “Leverage” in finance?
- (a) The use of borrowed funds or debt to amplify the potential returns or losses of an investment.
- (b) The total revenue generated by a company.
- (c) The process of merging two or more companies.
- (d) The calculation of a company’s net worth.
