Leverage enables a company to earn a higher return using debt than without debt.

Name: Leverage enables a company to earn a higher return using debt than without debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Leverage allows a company to increase their profits by borrowing money at a lower cost than the return on their investments. However, it also increases the company's risk as they have to pay back the debt regardless of the success or failure of their investments.

Leverage Enables a Company to Earn a Higher Return Using