Which of the Following Is a Reason for Not Increasing

question 62

Multiple Choice

Which of the following is a reason for not increasing a business's financial leverage?

• A) It can have a positive impact on the business's return on equity.
• B) The business can be grown with someone else's money.
• C) The interest on debt has a deductible nature.
• D) It may lead to an inability to pay the interest on the debt.
• E) It decreases a business's overall risk.

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Definitions:

Twin Studies

Research methods that compare the similarity between monozygotic (identical) and dizygotic (fraternal) twins to understand genetic and environmental influences.

Adoption Studies

Research designs in psychology that compare adopted individuals to their adoptive and biological families to examine genetic and environmental influences on behavior.

Brenda Milner

A neuropsychologist whose research on memory and the brain has significantly impacted the understanding of cognitive functions and memory loss.

Biological Bases

Pertains to the underlying physical and genetic structures and processes that influence behavior, thought, and emotion.