Written with graceful simplicity, The Big Wave won the Childrenâs Book Award of the Child Study Association of America when it was first released. This ebook features an illustrated biography of Pearl S. Buck including rare images from the authorâs estate. Read on Scribd mobile: iPhone, iPad and Android.
Well, the âadvantageâ of increased financial leverage is a potentially higher return on equity. The disadvantage, on the other hand, is that the business is now riskier as it is financed with more debt (when revenue falls for unexpected reasons, there's now a whole lot of interest that still has to be paid).
Difference. The main difference is in the type of leveraged used. Operating leverage uses tools available in the day-to-day business activities to boost returns by shifting the balance between variable costs and fixed costs.Financial leverage uses leverage outside of the main business through the use of debt to increase returns.ifference. The main difference is in the type of leveraged used. Operating leverage uses tools available in the day-to-day business activities to boost returns by shifting the balance between variable costs and fixed costs.