Leverage Can Enable a Small Business Owner to Magnify the Potential

question 78

True/False

Leverage can enable a small business owner to magnify the potential returns expected.

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Definitions:

401(k) Plan

A retirement savings plan sponsored by an employer that allows workers to save and invest a portion of their paycheck before taxes are taken out.

Conventional IRA

Likely meant to be "Traditional IRA," which is an individual retirement account that offers tax-deferred growth and potential tax-deductible contributions.

Excise Tax

A tax on the sale or use of specific products or transactions, often included in the price of goods such as gasoline, alcohol, and tobacco.

Roth IRA

A retirement savings account allowing for tax-free growth and tax-free withdrawals in retirement.