Management should tailor the use of leverage to meet the company's own risk-taking desires.

Question

Quizplus · Accepted Answer

This statement is true. The level of leverage a company uses should be determined by its risk appetite and overall financial goals. A more conservative company may choose to use less leverage, while a more aggressive company may be willing to take on more debt to finance growth opportunities. It is important for management to carefully consider the potential risks and rewards of using leverage and make decisions accordingly.

Management Should Tailor the Use of Leverage to Meet the Company's