Financial Leverage Refers To

question 279

Multiple Choice

Financial leverage refers to:

• A) The proportion of debt used in a firm's capital structure.
• B) The ratio of retained earnings to shareholders' equity.
• C) The ratio of paid-in surplus to shareholders' equity.
• D) The ratio of cost-of-goods-sold to total sales.
• E) The amount of receivables present in the firm's asset structure.

---

Definitions:

Account Management

The ongoing process of managing the relationship between a business and its clients to maximize long-term satisfaction and value.

Salesforce Organizing

The process of structuring and managing a salesforce to efficiently achieve sales targets and goals.

Sales Plan Formulation

The process of defining strategies, tactics, sales targets, and actions to achieve the sales goals of a business.

Postpurchase Evaluation

The assessment by consumers of their level of satisfaction or dissatisfaction with a product after they have bought and used it.