The Use of Debt to Attempt to Increase the Return

question 53

Multiple Choice

The use of debt to attempt to increase the return earned on owner's equity is referred to as:

• A)debt financing.
• B)equity manipulation.
• C)leverage.
• D)return on debt.

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Definitions:

Industrializing Country

A nation in the process of moving from an agriculture-based economy to one based on the manufacturing of goods and services.

Social Movements

Organized efforts by a large group of people to achieve or prevent change in society, often aiming at social justice, policy reform, or revolution.

Collective Behavior

The actions, thoughts, and feelings of a relatively spontaneous and unstructured group of people in response to common influences or objectives.

Malthusian Theory

A principle stating that population growth tends to outpace resource growth, leading to periods of famine, disease, and conflict as natural checks on population.