Why Do We Use Leverage If It Increases the Risk

question 63

Essay

Why do we use leverage if it increases the risk of a firm?

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Definitions:

Poverty Threshold

The essential level of earnings required to live a decent life in a certain country.

Wage Earner's

Individuals whose income is derived primarily from their employment salary or wages.

Family Composition

The makeup or structure of a family, including the number of members, their relationships to each other, and their roles within the family unit.

Mean Household Income

The average income per household within a specified geographic location, calculated by dividing the total income of all households by the number of households.