The Use of Borrowed Funds to Increase the Return on Owner's

question 98

Multiple Choice

The use of borrowed funds to increase the return on owner's equity is called

• A) financial planning.
• B) investment management.
• C) management leverage.
• D) financial leverage.
• E) return on leverage.

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Definitions:

Experiential Perspective

An approach focusing on individual experience as central to understanding human behavior and interactions.

Extensive Problem Solving

A consumer decision-making process used in situations involving high involvement and significant differences among brands.

Automatic Purchase

Buying decisions made with little conscious thought, often because of habit or brand loyalty.

Automaticity

The ability to perform actions without conscious thought or intention, achieved through repeated practice and learning.