The Main Disadvantage of Financial Leverage Is That

question 47

Multiple Choice

The main disadvantage of financial leverage is that:

• A) it increases the taxes of firms that use it.
• B) it requires owners to invest more of their own money.
• C) it reduces the financial return to stockholders' investment when times are bad.
• D) it protects firms from predatory lending practices by financial institutions.

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Definitions:

E-learning

The use of electronic technologies to access educational curriculum outside of a traditional classroom, typically on the internet.

Adaptive Behaviour

The ability of an individual to modify their actions, responses, and strategies in response to new or changing environments to effectively meet goals or challenges.

Task Analysis

The process of breaking down a task into its component parts to understand the skills, knowledge, and processes involved in its completion.

Needs Analysis

The process of identifying and evaluating the needs or gaps within an organization or among individuals to determine the required training interventions.