Leverage Refers to the Use of Borrowed Funds to Increase

question 195

True/False

Leverage refers to the use of borrowed funds to increase a firm's rate of return.

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Definitions:

Associate

To connect or link in one's mind; to relate one idea or concept with another.

Drive Theories

A group of theories in psychology that suggest humans are motivated by biological drives to achieve certain needs such as hunger or thirst.

Incentive Theories

Psychological models which suggest behavior is motivated by a desire for rewards and avoidance of punishments.

External Stimuli

Elements in the environment that influence behavior or responses, such as light, noise, or temperature.