A Firm That Has High Interest Payments Relative to Other

question 76

Multiple Choice

A firm that has high interest payments relative to other companies is said to have

• A) a poor finance department.
• B) a high degree of financial leveraging.
• C) no financial leveraging.
• D) a high degree of operating leverage.

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Definitions:

Organizational Problems

Issues or barriers that impede a company's progress towards its goals, which can arise from internal inefficiencies, external pressures, or a combination of both.

High Degree Of Imagination

A significant capability for creativity, innovation, and the formation of unique ideas or concepts beyond the ordinary.

Integrity

The quality of being honest and having strong moral principles, or moral uprightness, maintaining consistency in actions, values, methods, and outcomes.

External Locus Of Control

The belief that one's life events are largely influenced by external forces or fate rather than one's own efforts or actions.