When a company uses more of loans than equity to finance its business, the company is said to be
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Correct Answer: Option C
Explanation:
A company is said to be highly geared when it relies heavily on borrowed funds or debt compared with shareholders' equity to finance its operations. A high level of gearing means that debt represents a relatively large proportion of the company's financing.
A company is said to be highly geared when it relies heavily on borrowed funds or debt compared with shareholders' equity to finance its operations. A high level of gearing means that debt represents a relatively large proportion of the company's financing.