Which of the Following Is the Correct Definition of Leverage

question 41

Multiple Choice

Which of the following is the correct definition of leverage?

• A)Leverage is the ratio of equity to debt.
• B)Leverage is the ratio of assets to debt.
• C)Leverage is the ratio of debt to assets.
• D)Leverage is the ratio of debt to equity.

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Definitions:

Restrict Competition

Legal or business strategies implemented to limit competition within a market, often scrutinized for fairness under competition law.

Void

Refers to a contract or legal agreement that lacks validity and is therefore unenforceable by law.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Unenforceable

A term used to describe a contract or clause that cannot be legally enforced or compelled in a court of law.