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Explain the differences between a multilevel network and a pyramid scheme.
Operating Leverage
A gauge of the relationship between sales growth and the growth of operational earnings, showing the mix of fixed and variable costs within a business.
Financial Leverage
The use of borrowed funds to finance investments, aiming to increase the potential return to equity holders.
Business Risk
The exposure a company or investor faces from uncertainties that may impact its operations and profitability.
Financial Risk
The possibility of losing money or financial assets due to factors affecting financial markets, investment decisions, or company performance.
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