BUS523 Quantitative Analysis for Decision Making
Unit 4 Discussion
Unit 4 DB: Financial vs. Operational Leverage
Cash required for growth can come from financial leverage and/or operational leverage. Select one type of leverage (financial or operational) to explain why this type of leverage would be preferred over the other. As you think about this question, take a look at Amazon’s profitability, especially the early years—tremendous growth with little profit.
Del Ray, J. & Molla, R. (2017, April 27). Amazon just turned a profit for the eighth straight quarter. Vox.
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