Whenever a Firm Borrows Money, It Is Using Financial Leverage

question 13

True/False

Whenever a firm borrows money, it is using financial leverage.

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Definitions:

Functional Autonomy

A principle in psychology where behaviors that were once driven by one motive become independent and are pursued for their own sake.

Cardinal Traits

Fundamental personality characteristics that dominate and shape an individual's behavior and attitudes.

Secondary Traits

The least important traits, which a person may display inconspicuously and inconsistently.

Propriate Functional Autonomy

The level of functional autonomy that relates to our values, self-image, and lifestyle.