Using Borrowed Money to Increase the Rate of Return on Ordinary

question 227

True/False

Using borrowed money to increase the rate of return on ordinary shareholders' equity is called "trading on the equity."

---

Definitions:

Self-Monitoring

The tendency to regulate behavior to meet the demands of social situations.

Minimize Mistakes

The process or effort to reduce the number or severity of errors in a particular activity or process.

Romantic Ideals

Elevated and often unrealistic expectations about romantic relationships, emphasizing passion, commitment, and emotional intimacy.

High Self-Esteem

A positive evaluation of oneself and one's abilities, often reflecting confidence and satisfaction in various aspects of life.