Which of the Following Is One of the Reasons for Attempting

question 3

Multiple Choice

Which of the following is one of the reasons for attempting to increase a business's financial leverage?

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

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Definitions:

Natural Selection

The process whereby organisms better adapted to their environment tend to survive and produce more offspring.

Genetic Material

Molecules within cells that carry genetic information, primarily DNA or, in some viruses, RNA.

Future Generations

The forthcoming individuals or groups of a species that will exist in the future.

Fitness

Degree of adaptation to an environment, as measured by the individual’s relative genetic contribution to future generations.