Financial Leverage Primarily Affects the _________ While Operating Leverage Primarily

question 18

Multiple Choice

Financial leverage primarily affects the _________ while operating leverage primarily affects the __________.

• A) left-hand side of the balance sheet; the right-hand side of the balance sheet
• B) right-hand side of the balance sheet; the upper part of the income statement
• C) lower part of the income statement; the right-hand side of the balance sheet
• D) the upper part of the income statement; the left-hand side of the balance sheet

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Definitions:

Competition

Competition in business refers to the rivalry among companies operating in the same industry for market share, customers, and profits by offering better products, prices, or services.

Supply Chain

The linked set of companies that perform or support the delivery of a company’s goods or services to customers.

Logistics

That part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.

Flow of Money

The movement of money between individuals, businesses, and governments, influencing economic activity and financial stability.