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Q: How does leverage help an organization?
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Why is Financial leverage important to financial management?

Financial leverage is important to financial management because it will give an advantage. It allows the organization or entity to have more security.


What are the importance of operating leverage?

help to judge risk in the firm


What is the purpose of leverage within an organization?

There are many types of leverage in an organization. - It could mean to leverage your financing; This means that you put in "some" of your own money into the organization and then borrow the rest from a bank or investors or? This allows you to grow bigger or faster than you would be able to on your own. It also increases the risk associated with your business. If you do not structure it properly or if your income is not sufficient to meet the financial obligations created by leveraging your business you can get into financial trouble. - It could mean to leverage yourself; This means you are going to hire people to do some of the jobs you normally do so that you can get more done. Most business is built around solving a problem and being able to make a profit from charging people to solve that problem. If you do a great job, demand will grow for your product or service beyond what you are able to handle by yourself so you need to leverage yourself or your time by adding employees. One of the keys to going from a successful small company to a successful large company is your ability to solve a problem for many more people "profitably". You can also leverage yourself by developing systems to help you with the work. A website can help you find and educate your clients about your offering, give them some preliminary information and guide them to a point of wanting to buy from you, all without you talking to them. There are many other forms of leverage in an organization. You need to be more clear in your definition if you want a more specific answer that is not listed above..


Why is the value and contribution of leadership to the success and competitive positioning of business organizations?

Leaders will make decisions for the organization that will create more revenue. Many business decisions developed by leaders will also help create a competitive advantage because they have the ability to leverage the knowledge they know about their competitors.


What is the impact of financial leverage on stockholders?

Financial leverage makes no impact on stockholders as any stockholder who prefers the proposed capital structure (ie leverage) can simply create it using homemade leverage. Note: financial leverage refers to the extent to which a firm relies on debt. Homemade leverage is the use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed

Related questions

Why is Financial leverage important to financial management?

Financial leverage is important to financial management because it will give an advantage. It allows the organization or entity to have more security.


The type of control that is imposed on workers within the organization by the shared values and standards of behavior for workers within that organization is known as?

Bureaucratic conteol


What is knowledge in the context of organization?

Knowledge in the context of organization refers to the expertise, information, and skills held by individuals and groups within the organization. This knowledge is often tacit, embedded in processes, systems, and relationships, and plays a critical role in decision-making, problem-solving, and innovation within the organization. Effective knowledge management practices can help organizations leverage this knowledge for improved performance and competitiveness.


Why does the sling on a trebuchet help it launch a projectile farther?

leverage


What are the importance of operating leverage?

help to judge risk in the firm


How can leverage be used to increase an organization's profitabililty?

Leverage, in the sense of this question, is borrowing money to help your business growth by buying new machinery, buying another business, etc. Leverage won't directly increase your business's profitability, it can be used to buy more than you can currently afford with cash reserves. If the new purchase will pay back the lender who gave you the money to purchase it, plus pay the costs of having it, with money left over then you have increased your profitability. If you changed the question to: 'How can borrowed money be used to increase an organization's profitability?' then you can see my point more clearly.


What is the purpose of leverage within an organization?

There are many types of leverage in an organization. - It could mean to leverage your financing; This means that you put in "some" of your own money into the organization and then borrow the rest from a bank or investors or? This allows you to grow bigger or faster than you would be able to on your own. It also increases the risk associated with your business. If you do not structure it properly or if your income is not sufficient to meet the financial obligations created by leveraging your business you can get into financial trouble. - It could mean to leverage yourself; This means you are going to hire people to do some of the jobs you normally do so that you can get more done. Most business is built around solving a problem and being able to make a profit from charging people to solve that problem. If you do a great job, demand will grow for your product or service beyond what you are able to handle by yourself so you need to leverage yourself or your time by adding employees. One of the keys to going from a successful small company to a successful large company is your ability to solve a problem for many more people "profitably". You can also leverage yourself by developing systems to help you with the work. A website can help you find and educate your clients about your offering, give them some preliminary information and guide them to a point of wanting to buy from you, all without you talking to them. There are many other forms of leverage in an organization. You need to be more clear in your definition if you want a more specific answer that is not listed above..


What is combined leverage?

Combined leverage is the combined result of operating leverage and financial leverage.


What is foreclosure help?

Foreclosure help is advice and help you can get from an organization or service that will help you through a foreclosure or help you stop a foreclosure. Foreclosure Help and Hope is an organization that can help.


Which two concepts explain how the body moves?

Force and leverage help to explain how the body works. Force helps the body to move in space as it acts against the air around it. Leverage helps the body stay upright.


What is national organization?

please help me to the question what is national organization ?


Why is the value and contribution of leadership to the success and competitive positioning of business organizations?

Leaders will make decisions for the organization that will create more revenue. Many business decisions developed by leaders will also help create a competitive advantage because they have the ability to leverage the knowledge they know about their competitors.