Financial Leverage Increases the Expected Return and Risk of the Shareholder

question 63

True/False

Financial leverage increases the expected return and risk of the shareholder.

---

Definitions:

Consumer Traits

Characteristics or properties that consistently influence the way individuals select, purchase, and use goods and services.

Exchange Theory

A theoretical framework positing that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Sales Interaction

The process and dynamics of communication between a salesperson and a prospective or current customer, aimed at promoting or selling a product or service.

Purchase Cycle

The sequence of stages that customers go through from recognizing a need, considering a purchase, making the purchase, and post-purchase behavior.