Financial managers at Sasha Deal Electronics have always had a conservative attitude toward long-term financing. In particular, they are interested in keeping risk to a minimum. This philosophy suggests that managers at Sasha Deal consider the extensive use of leverage an attractive financial strategy.

Question

Quizplus · Accepted Answer

The statement contradicts itself. A conservative attitude towards long-term financing suggests that managers would be hesitant to use extensive leverage as it would increase risk. Therefore, the statement is false.

Financial Managers at Sasha Deal Electronics Have Always Had a Conservative