The Greater the Amount of Financial Leverage Used by a Firm

question 92

Multiple Choice

The greater the amount of financial leverage used by a firm, the greater its ____, all other things being equal.

• A) profitability
• B) liquidity
• C) risk
• D) size

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Definitions:

Statement

A Statement is an instruction that a programming language can execute, typically expressing some action to be carried out.

Original Element

Refers to the initial or unchanged data or object in a context where alterations might be applied.

Pointer

A variable that stores the memory address of another variable, allowing for indirect access to that variable.

Array Element

An individual value or item stored in an array, accessible by an index representing its position within the array.