The use of fixed-cost financing sources is referred to as the use of ____.
A) operating leverage
B) a leveraged buyout
C) financial leverage
D) combined leverage

Question

Quizplus · Accepted Answer

The use of fixed-cost financing sources is referred to as financial leverage. Operating leverage refers to the use of fixed operating costs in a company's cost structure, while a leveraged buyout is a type of acquisition that uses a significant amount of debt to finance the purchase. Combined leverage refers to the use of both operating and financial leverage in a company's capital structure.

The Use of Fixed-Cost Financing Sources Is Referred to as the Use