In the Context of Small Businesses, What Is Financial Leverage

question 31

Multiple Choice

In the context of small businesses, what is financial leverage?

• A) Making a financial claim to the profit left after all other claims against the business have been met
• B) Employing a form of debt security with a standard denomination
• C) Financing the extension of credit to customers
• D) Using fixed-charge financing to fund a business's operation

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