Examlex
Which of the following statements is correct?
Financial Leverage
The use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the profits will be greater than the interest payable.
Tax Deductible
Refers to certain expenses that can be subtracted from income to reduce the total taxable income.
Capital Gains
Profit earned from the sale of assets like stocks or real estate, where the sale price exceeds the purchase price.
Ordinary Income
Income earned from standard operations of a business or through wages, as opposed to capital gains or investment income.
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