Examlex
Which of the following terms refers to a tornado-like event that forms over water?
Financial Leverage
The use of borrowed funds (debt) to amplify returns from an investment, which can increase the potential for profit as well as loss.
Variable Cost Ratio
The proportion of variable costs to total sales, indicating how variable costs change with sales levels.
Bond Issue
The process by which a borrower issues bonds to raise funds from investors willing to lend them money for a certain period.
Operating Leverage (DOL)
Operating leverage measures how revenue growth translates into growth in operating income. It is a measure of how sensitive the operating income is to the change in revenues.
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