Financial leverage allows Verizon wireless to use their balance sheet to expand their business and increase their profits… … This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Financial Leverage (Verizon wireless)" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.