Which One of the Following Describes Financial Leverage

question 121

Multiple Choice

Which one of the following describes financial leverage?

• A) To pay off all long-term debt in order to reduce interest expense
• B) To finance with equity capital
• C) To offer discounts to customers for early payment of invoices
• D) To earn more income on borrowed money than the related interest expense

---

Definitions:

Selective Serotonin Reuptake Inhibitor

A class of drugs typically used as antidepressants in the treatment of major depressive disorder, anxiety disorders, and some personality disorders by increasing serotonin levels.

Bipolar Disorder

A psychiatric disorder involving significant mood fluctuations, with periods of elevated mood (mania or hypomania) and episodes of depressive lows.

Manic Episodes

Episodes characterized by a period of abnormally elevated, expansive, or irritable mood and increased activity or energy levels, often found in bipolar disorder.

Antidepressant Drugs

Medications prescribed to alleviate symptoms of depression by balancing chemicals in the brain that affect mood and emotions.