Net exposed assets equal ______.
A) assets less liabilities
B) exposed assets less exposed liabilities
C) shareholders' equity
D) More than one of the above
E) None of the above

Question

Quizplus · Accepted Answer

Net exposed assets refer to the total assets that are exposed to risk or vulnerability, and therefore, need protection. These assets are calculated by deducting the exposed liabilities from the exposed assets. Therefore, option B, exposed assets less exposed liabilities, is the best choice. Option A is the calculation of total assets less liabilities, which does not specifically measure the assets vulnerable to risk. Option C only represents the shareholder's equity and not necessarily the total assets exposed to risk. Option D is not relevant as only option B is the correct answer. Similarly, option E is also incorrect as the correct answer is option B.

Net Exposed Assets Equal ______