The term financial leverage can be seen as being comparable to the base word-lever; a certain level of debt can amplify the "lifting" power of a business.

Question

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The term "leverage" is used in finance to describe the use of debt to amplify the potential returns or risks of an investment. Just as a lever can amplify the force applied to lift an object, financial leverage can amplify the potential gains (or losses) of a business.

The Term Financial Leverage Can Be Seen as Being Comparable