A $450,000 house can be purchased with a $90,000 down payment using the principle of

a. borrowed funds.
b. leveraging.
c. partial financing.
d. home equity.

Answer: b. leveraging.

Business

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Mini-Case Question. The percentage cost of goods sold by Sparks Inc. is 40%. The percentage cost of goods sold by its three largest competitors is 30%, 30%, and 20%. What is the cost advantage index of Sparks Inc.?

A) 80 B) 120 C) 43 D) 150 E) 62

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