________ results from the use of fixed-cost assets or funds to magnify returns to the firm's owners.
A) Long-term debt
B) Equity
C) Leverage
D) Capital structure

Question

Quizplus · Accepted Answer

Leverage refers to the use of fixed-cost assets or funds to magnify returns to the firm's owners. Long-term debt and Equity are sources of capital used to finance a firm's operations or investments, while capital structure refers to the mix of debt and equity used to finance the firm. Therefore, the correct answer is C, leverage.

________ Results from the Use of Fixed-Cost Assets or Funds