Financial Leverage Deals with

question 11

Multiple Choice

Financial leverage deals with

• A) the relationship of fixed and variable costs.
• B) the relationship of debt and equity in the capital structure.
• C) the entire income statement.
• D) the entire balance sheet.

---

Definitions:

Neutral Explanation

An unbiased and impartial description or clarification of facts or concepts.

Previous Layoff

A past event in which employees were dismissed from their jobs due to economic downturns, restructuring, or other business reasons.

Self-Pity

The indulgence in one’s own sorrows or misfortunes, often with a negative impact on one’s mental well-being and perspective.

You-Attitude

A style of communicating that looks at things from the audience’s point of view, emphasizes what the audience wants to know, respects the audience’s intelligence, and protects the audience’s ego. Using you generally increases you-attitude in positive situations. In negative situations or conflict, avoid you since that word will attack the audience.