A Firm's Financial Leverage Is a Direct Function of the Ratio

question 56

True/False

A firm's financial leverage is a direct function of the ratio of net income to sales.

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Definitions:

Minor Term

The term in a syllogism that is the subject of the conclusion.

Syllogism

a form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion logically drawn from them.

Chemical Compound

A substance consisting of two or more different elements bonded together in a fixed proportion.

Mood

The order of the standard forms that make up the premises and conclusion of a categorical syllogism.