Assume that you were going to explain good and bad uses of leverage to a person just about to buy a restaurant or other small business or to a home buyer.

| March 13, 2016

Assume that you were going to explain good and bad uses of leverage to a person just about to buy a restaurant or other small business or to a home buyer. How would you explain this concept? If they were to finance 90% of the purchase, is that too much leverage? If they bought only what they could buy for cash, are they being too conservative on use of leverage?

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