Which of the Following Is a Key Determinant of Financial

question 102

Multiple Choice

Which of the following is a key determinant of financial leverage?

• A) Level of debt.
• B) Technology.
• C) Labor costs.
• D) Amount of fixed assets used by the firm.
• E) Variable cost of goods sold.

---

Definitions:

Passive Activity

An activity in which the person involved does not actively participate or exert control, often used in reference to certain types of income for tax purposes.

Sensing

A process of receiving and responding to stimuli or input from the environment, often involving the detection of physical changes.

Nonverbal Cues

Forms of communication without words, such as facial expressions, gestures, and body language.

Interpreting

The act of explaining or providing the meaning of something, such as a word, text, or action, often in a different language.