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OverLord2011 [107]
3 years ago
11

The use of debt is called A. financial leverage. B. production leverage. C. operating leverage. D. total asset turnover risk. E.

business risk. Reset Selection
Business
2 answers:
IRISSAK [1]3 years ago
8 0

Answer:

A- Financial leverage

Explanation:

The use of debt is called FINANCIAL LEVERAGE because it involve the use of debt or borrowed money rather than equity when an asset is purchased with the hope that the profit gain after deducting tax from the equity holder transaction will be higher than the borrowing cost.

Financial leverage is based on the used of borrowed money or debt to acquire an additional assets which will cause the returns on the owner's cash investment to be amplified.

The return on equity is increased through leverage leading to the excess amount of the financial leverage to increases the risk of failure, since it will becomes more difficult to repay back the debt or borrowed money.

Financial leverage is measured as the ratio of total debt to total assets meaning the greater the amount of debt , the greater the financial leverage.

Ksenya-84 [330]3 years ago
4 0

Answer:

A. financial leverage.

Explanation:

Financial leverage refers to the use of debt in order to buy more assets. This is measured by comparing the ratio of total debt to total assets. This means that, as the proportion of debt to assets increases, so does the amount of financial leverage. As a very large amount of debt can be hard to pay, an excessive amount of financial leverage can greatly increase the risk of failure.

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The commercial farms have not offered assistance to the nearby subsistence farmers.

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4 0
1 year ago
What is the main challenge of career planning in changing times?
White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

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5 0
3 years ago
A disadvantage of adding a salad bar to a school lunch menu would be ?
bearhunter [10]
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
5 0
3 years ago
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As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six
Yanka [14]

Answer:

Break-even units = 66.67 units

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>

<em>The break-even point is calculated as </em>

<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 15- (1+3+0.50) = 10.5

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So the units requited to achieve break-even point:

Break-even point =  700/10.5

                            = 66.67 units

4 0
3 years ago
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