Homemade Leverage Is

question 22

Multiple Choice

Homemade leverage is:

• A) the incurrence of debt by a corporation in order to pay dividends to shareholders.
• B) the exclusive use of debt to fund a corporate expansion project.
• C) the borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage.
• D) best defined as an increase in a firm's debt-equity ratio.
• E) the term used to describe the capital structure of a levered firm.
• F) None of the above.

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Definitions:

Task-oriented Leaders

Leaders who focus primarily on the completion of tasks and objectives rather than on the personal needs of team members.

Situational Favourableness

The extent to which a particular situation is perceived as beneficial, opportune, or advantageous.

Situational Favourableness

The degree to which a particular situation or environment is advantageous or beneficial to the goals of a person or group.

Leadership Orientation

Relates to an individual's or organization's approach and style in leading others, encompassing aspects like decision-making processes and value on relationship-building.