In the Context of Financial Controls, Which of the Following

question 130

Multiple Choice

In the context of financial controls, which of the following best describes leverage?

• A) It is the ability to operate at minimum cost.
• B) It is the ability to earn revenues greater than costs.
• C) It is the ability to earn more in returns than the cost of debt.
• D) It is the ability to meet short-term obligations.
• E) It is the ability to generate cash to pay bills.

---

Definitions:

Employee Stock Ownership Plan

A program that gives employees the opportunity to buy shares in the company they work for, often at a discounted price.

Company's Stock

Represents ownership shares in a corporation, giving holders a claim on parts of the company's assets and earnings.

Minimum Percentage

The lowest allowable or required fraction or rate of a quantity, often set as a standard or threshold.

Assets

Resources owned by a company, regarded as having value and available to meet debts, commitments, or legacies.