What Is Meant by Leverage

question 10

Multiple Choice

What is meant by leverage?

• A) It is the ability of a business to borrow from banks.
• B) It refers to the use of debt to enable higher returns to shareholders.
• C) It refers to the credit-worthiness of borrowers whom the bank extends loans to.
• D) It is the practice of re-investing shareholders' funds in the business.

---

Definitions:

Design Patent

A form of legal protection granted to the ornamental design of a functional item, providing an exclusive right to the design's use.

Intellectual Property Law

The area of law that deals with protecting the rights of creators of original works, including inventions, designs, and artistic works.

Royalties

are payments made to the owners of intellectual property, like patents, copyrights, trademarks, or natural resources, for the right to use their assets.

Copyright Protection

Legal rights granted to authors and creators over their original works, preventing unauthorized copying, distribution, or adaptation.