Leverage Increases the Potential Return to a Firm's Shareholders,but Also

question 37

True/False

Leverage increases the potential return to a firm's shareholders,but also reduces the risk of their investment because shareholders have contributed less capital.

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Definitions:

Law Merchant

Rules developed by the merchant guilds and the source of common law relating to negotiable instruments such as cheques and promissory notes.

War-Crimes Trials

Legal proceedings conducted to prosecute individuals accused of violating laws and customs of war.

Natural Law

A philosophical theory that posits the existence of a set of laws of nature that are inherent and universal.

Legal Positivism

A school of thought in law that holds that the validity of a law is not related to its morality but on its sources and promulgation.