The Greater the Amount of Financial Leverage Used by a Firm

question 92

Multiple Choice

The greater the amount of financial leverage used by a firm, the greater its ____, all other things being equal.

• A) profitability
• B) liquidity
• C) risk
• D) size

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Definitions:

Muscle Contraction

The process where muscle fibers shorten or generate tension in response to nervous system signals, allowing movement of the body.

Action Potential

Electrochemical changes that take place across the axon membrane; the nerve impulse.

Complete Bone Fracture

A type of bone break where the bone is broken all the way through, with the bone ends often separated from each other.

Estrogen Replacement Therapy

A treatment used to alleviate symptoms of menopause by supplementing the body's natural estrogen levels.