Which of the Following Statements Is TRUE for Financial Leverage

question 83

Multiple Choice

Which of the following statements is TRUE for financial leverage?

• A) The asset turnover ratio measures financial leverage.
• B) Financial leverage always increases profitability.
• C) Financial leverage is measured in the proportion of total assets relative to total equity.
• D) The higher the debt to equity ratio, the higher the financial leverage.

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Definitions:

Patriarchal Power

A social system where men hold primary power and predominate in roles of political leadership, moral authority, and control over property.

Glass Ceiling

An invisible institutional barrier that limits professional women’s progress into the upper echelons of an organization.

Male-Dominated

Describes a field or environment where men are overwhelmingly the majority, often possessing greater authority, power, or influence than women.