Examlex
Identify the elements of drug courts and their effectiveness.
Financial Leverage
The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.
Operating Leverage
Operating leverage refers to the degree to which a company or project can increase operating income by increasing revenue.
Total Leverage
The combination of operating leverage (affecting operating income) and financial leverage (affecting net income), indicating total risk.
Financial Leverage
The use of borrowed funds to finance the acquisition of assets, with the expectation that the profits made will be greater than the interest payable.
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