The Higher the Debt Ratio,the More the Financial Leverage a Firm

question 83

True/False

The higher the debt ratio,the more the financial leverage a firm has and thus,the greater will be its risk and return.

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Definitions:

Sublimation

A defense mechanism in psychoanalytic theory where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Repression

A defense mechanism where unpleasant thoughts, desires, or experiences are excluded from conscious awareness.

Libido

The energy of the sexual drive as a component of the life instinct.

Life Instinct

, in psychoanalytic theory, represents the drive for survival, propagation, love, and creativity.