Leverage can enable a small business owner to magnify the potential returns expected.

Question

Quizplus · Accepted Answer

Leverage involves using borrowed capital for an investment, expecting the profits made to be greater than the interest payable. For small business owners, this can mean that even with a limited amount of their own capital, they can undertake larger projects or investments, potentially leading to higher returns than they could achieve with their own funds alone.

Leverage Can Enable a Small Business Owner to Magnify the Potential