Use of Leverage Always Increases the Amount of Business Risk

question 29

True/False

Use of leverage always increases the amount of business risk.

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Definitions:

Intent

The determination to perform a particular act or to act in a particular manner for a specific reason.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of an arrangement.

Offeror

The party in contract negotiations who presents a proposal or offer to enter into an agreement, awaiting acceptance by the offeree.

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A loyalty program by PepsiCo where consumers collect points from product purchases that can be exchanged for rewards.