C om pare F in a ncia l a nd O pera tio na l L eve ra ge. W ha t is F in a ncia l a nd O pera tio na l L eve ra ge? W ha t is th e d iffe re nce b etw een th e tw o a nd w ha t a re th e ...

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C om pare F in a ncia l a nd O pera tio na l L eve ra ge. W ha t is F in a ncia l a nd O pera tio na l L eve ra ge? W ha t is th e d iffe re nce
b etw een th e tw o a nd w ha t a re th e a ffe cts o fn o rg aniz a tio na l p erfo rm ance w he n d epend in g o n th e se ty p es o f L eve ra ge.
F in a ncia l le ve ra ge c a n b e a g ood th in g fo r a c o m pany o r it c a n a ls o b e a b ad th in g . T he e xa ct d efin itio n is th e d egre e to
w hic h a n in ve sto r o r b usin e ss u tili z e s b orro w ed m one y. “ If a c o m pany h a s a h ig h fin a ncia l le ve ra ge th e y m ay b e a t r is k o f
b ankru p tc y if th e y...
S olu tio n
F in a ncia l le ve ra ge c a n b e a g ood th in g fo r a c o m pany o r it c a n a ls o b e a b ad th in g . T he e xa ct d efin itio n is th e d egre e to
w hic h a n in ve sto r o r b usin e ss u tili