Use of Excess Leverage Can Result from Growth Outstripping the Company's

question 17

True/False

Use of excess leverage can result from growth outstripping the company's internal financing capabilities. The company then relies increasingly on short-term notes until a cash flow problem develops.

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Definitions:

Experimental Method

A systematic and scientific approach to research in which the researcher manipulates one variable to measure its effect on another variable.

Cause And Effect

A relationship where one event (the cause) makes another event happen (the effect).

Conclusions

Statements or judgments that are formed after considering the relevant facts or evidence.

Confounded Variables

External factors in an experiment that might affect the outcome, making it difficult to determine if the results are due to the independent variable being tested.