While Too Little a Financial Leverage Figure Represents Overly Conservative

question 91

True/False

While too little a financial leverage figure represents overly conservative management,too high a figure represents high risk.

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Definitions:

Inductive

A method of reasoning in which general conclusions are drawn from specific instances or observations.

Sound Argument

An argument that is both valid (correctly structured) and has all true premises, leading to a true conclusion.

Deductive Argument

An argument that claims its conclusion necessarily follows from the premises.

Inductive Argument

An argument that only claims that its conclusion probably follows from the premise.