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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Definitions:

Language

A system of communication used by a particular country or community, composed of spoken or written symbols.

Species

A community of similar life forms that are capable of reproducing or swapping genetic information.

Genus

A term in logic and philosophy that refers to a general class that encompasses multiple specific instances, or species, sharing common characteristics.

Species

A distinct group in biological taxonomy that shares common attributes and can breed to produce fertile offspring.