________ Refers to the Strategy of Using Borrowed Funds to Increase

question 167

Multiple Choice

________ refers to the strategy of using borrowed funds to increase the rate of return for stockholders.

• A) Leverage
• B) Retained earnings
• C) Factoring
• D) Pledging

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Definitions:

Pros And Cons

The advantages (pros) and disadvantages (cons) of a particular decision, situation, or system, considered when making a choice.

Consistent

Showing steady conformity to a particular pattern, standard, or set of rules over time.

Over Time

A period extending beyond the usual hours of work, often associated with additional pay; or gradually through a period.

Implicit Contract

An unwritten and unspoken agreement between individuals, often based on common norms or expectations.