Which term is used to describe the use of debt in a firm's capital structure?
A)debt loading
B)discounting
C)liquidity boosting
D)financial leverage

Question

Quizplus · Accepted Answer

Financial leverage is the term that describes the use of debt in a firm's capital structure. It refers to the practice of borrowing funds to increase the potential return on investment for shareholders. It can be a useful tool for companies to finance growth and expansion, but it also increases the risk of financial distress in the event of economic downturns or other challenges.

Which Term Is Used to Describe the Use of Debt