A Company That Is Leveraged Is One That

question 106

Multiple Choice

A company that is leveraged is one that

• A) has high earnings per share.
• B) contains debt financing.
• C) contains equity financing.
• D) has a high current ratio.

---

Definitions:

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities aiming to generate profits through providing goods or services.

Distorted

Altered from a natural, normal, or original shape, size, or condition, resulting in a misrepresentation of reality or truth.

Stagnates

The state or process of ceasing to flow, move, or develop; often used in reference to water, projects, or personal growth.

Depression

A common but serious mood disorder that affects how you feel, think, and handle daily activities.