The more debt used, the greater the leverage a company employs on behalf of its owners.
<h3>
What is financial leverage?</h3>
Financial leverage exists as the usage of borrowed money (debt) to finance the purchase of assets with the anticipation that the income or capital gain from the new asset will surpass the cost of borrowing.
<h3>What is financial leverage example?</h3>
An example of financial leverage use contains utilizing debt to buy a house, borrowing money from the bank to begin a store, and bonds issued by companies.
Debt exists as an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another group, the creditor. Debt stands for deferred payment, or sequence of payments, which distinguishes it from an immediate purchase.
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Answer:
Horizontal Management
Explanation:
Horizontal management is an organization structure in which there are very few managers, in this type of management authority is given to the employees. This makes the employees to have a sense of empowerment because they can make vital decisions without the approval of a manager.
In horizontal management, decision making happens rapidly with little or no bureaucracy. These companies tend to have a limited amount of projects on which they work, which benefits from the unstructured, open environment since the entire team communicates and share essential information on where the project is and where it is heading to.
