The Use of Increasing Amounts of Combined Leverage ____ the Risk

question 31

Multiple Choice

The use of increasing amounts of combined leverage ____ the risk of financial distress.

• A) decreases
• B) increases
• C) has no effect on
• D) creates diversity in

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Definitions:

Big Businesses

Large-scale, established companies that have substantial influence in the market and economy.

Strict Liability

Liability regardless of fault. In tort law, strict liability may be imposed on defendants in cases involving abnormally dangerous activities, dangerous animals, or defective products.

Sellers

Individuals or entities that offer goods or services in exchange for compensation.

Goods

Tangible personal property that includes a wide range of objects such as appliances, furniture, electronics, and more.