Financial Leverage

question 96

Multiple Choice

Financial leverage

• A)may increase the return to the common shareholders.
• B)uses lower cost borrowed funds and earns a higher rate of return on those funds than their cost.
• C)requires the common shareholders to take on more risk in their investment.
• D)all of the above
• E)none of the above

Acknowledge the impact of legal advice on business decision-making and where to source credible legal counsel.

Understand the process and significance of intellectual property protection for businesses.

Recognize the financing implications of choosing different types of business entities.

Understand the employment law considerations relevant to business size and structure.

---

Definitions:

Electronic Mail

A method of exchanging messages digitally through the internet or other computer networks.

Communication Means

Various methods or systems used to convey information or messages from one person or entity to another.

Binding Contract

An agreement legally recognized and enforceable by law.

Essential Terms

Key conditions or terms in a contract that are crucial to the agreement’s operation and must be clearly defined and agreed upon by all parties involved.