$1)$ Apple holds about $$50$ billion in cash. Large cash holdings are generally understood as

$($a$)$ an insurance policy for uncertain times

$($b$)$ a war chest $($aka $$dry powder$,$ readily available cash$)$ for making acquisitions

$($c$)$ an indicator of the absence of investment opportunities

$($d$)$ all of these

$2)$ Increased leverage allows companies to control more assets and increase their ROE. What $$s bad about leverage?

$($a$)$ It reduces productivity, which can decrease overall ROE

$($b$)$ Leverage$-$based profits are cash$-$based and are ignored by finance

$($c$)$ There is nothing bad about leverage. Using other people$$s money is a good way to increase the value of the company.

$($d$)$ Leverage multiplies losses, too, as it increases a company$$s risk

$3)$ What types of companies are more likely to have high leverage?

$($a$)$ Companies with high growth opportunities in new industries

$($b$)$ Companies with low profitability

$($c$)$ Technology companies

$($d$)$ Companies in stable, predictable industries with reliable cash flows