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.

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Definitions:

Sequential Number

A number that follows a specific sequence, typically incremented by one, used for ordering or identification.

Field

An individual piece of data or attribute in a record, typically represented in a column in databases and spreadsheets.

Status Bar

A graphical control element at the bottom of a window that shows information about the current state of the application or document.

Database Object

A structured data or a collection of data stored in a database.