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Question
define leverage? explain its types, relative significance 
and their features?
 Question Submitted By :: Finance
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
leverage is used to describe the firm's ability to use
fixed cost assets to increase the return to its owners.It
is a tool for measuring Buisness Risk,Financial Risk and
Overall Risk
types of leverages are operating leverage,financial risk
and combined leverage.
 
Is This Answer Correct ?    25 Yes 5 No
Tanesha Mishra
 
Answer
# 2
A company's long term debt in relation to equity in its
capital structure. The larger the long term debt , the
higher the leverage.n there are 3 types of leverages that
are financial leverage and combined leverage and operating
leverage, financial leverage* operating leverage= cobined
leverage.
 
Is This Answer Correct ?    15 Yes 6 No
Kavukuntla Vinutha
 
 
 
Answer
# 3
Leverage is a financial term used in business. Leverage is borrowing money to make more money. Leverage is used to increase profit, which is the reward that one gets for the risk taken. 
Is This Answer Correct ?    5 Yes 1 No
M Saverin
 
Answer
# 4
leverage is the ability of the firms to use fixed charges in such a way so as to increase the return to the shareholders 
Is This Answer Correct ?    4 Yes 2 No
Sumitra.raghavan
 

 
 
 
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For more Finance Interview Questions Click Here 
 
 
 
 
 


   
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