Asked by
Marcus Tan Jun Wei
on Dec 07, 2024Verified
Borrowing money
A) creates leverage.
B) increases equity.
C) decreases risk.
D) reduces liquidity.
Leverage
The use of borrowed funds to increase one's investment capacity and potentially enhance the rate of return, also referring to influencing factors or the ability to influence outcomes.
Borrowing Money
The act of obtaining funds from lenders under the agreement to repay with interest within a specified timeframe.
Increases Equity
An action or event that raises the value of an owner's shares in a company or property.
- Investigate the influence of monetary decisions on a corporation's risk profile, liquidity status, and leverage ratios.
Verified Answer
DL
Learning Objectives
- Investigate the influence of monetary decisions on a corporation's risk profile, liquidity status, and leverage ratios.