________ Refers to the Strategy of Using Borrowed Funds to Increase

question 167

Multiple Choice

________ refers to the strategy of using borrowed funds to increase the rate of return for stockholders.

• A) Leverage
• B) Retained earnings
• C) Factoring
• D) Pledging

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Definitions:

Corporation Assets

The tangible and intangible assets owned by a corporation, including real estate, equipment, intellectual property, and financial investments.

Voluntary Assumption

The act of willingly taking on duties, responsibilities, or liabilities, often without coercion or obligation.

Risk

The possibility of loss or damage arising from a specific action or event.

Defence

Legal arguments and evidence presented to counter a claim or accusation in a court of law.