________ is the degree to which a firm or individual utilizes borrowed money to make money.
A)Variable leverage
B)Fixed leverage
C)Operating leverage
D)Financial leverage

Question

Quizplus · Accepted Answer

Financial leverage refers to the extent to which a company uses borrowed funds (debt) to finance its operations and investments. By doing so, the company increases its potential returns on investment, but also increases the risk of financial distress if its earnings are not sufficient to cover the interest and principal payments on the debt.

________ Is the Degree to Which a Firm or Individual