Whenever a firm goes into debt, it is using financial leverage.

Name: Whenever a firm goes into debt, it is using financial leverage.
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Financial leverage refers to the use of borrowed funds, such as loans or bonds, to increase the potential return on investment. When a firm takes on debt, it is using financial leverage to potentially increase profits, but it also increases the risk for the firm if they are unable to repay the debt.

Whenever a Firm Goes into Debt, It Is Using Financial