Leverage Can Magnify Returns to the Stockholders but Also Increase

question 27

True/False

Leverage can magnify returns to the stockholders but also increase potential losses to the stockholders.

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Definitions:

Norms

The unwritten rules or expectations that govern the behavior of members within a society or group, guiding what is considered acceptable or customary.

Institutional Racism

"The manipulation of social institutions to give preferences and advantages to Whites and at the same time restrict the choices, rights, mobility, and access of people of color."

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Institutional Racism

A system of policies and practices entrenched in established institutions, which result in the unfair disadvantage to individuals or groups based on race.