leverage

Pronunciation: LEV-er-ij

noun

Difficulty: common

Definition of leverage

The strategic use of resources or influence to achieve a specific goal or advantage in a situation.

Origin of leverage

Language of origin: Middle English (via Old French and Latin)

Root word: lever

Original meaning: to raise or lift

How it evolved: Originally referring to the physical action of lifting or raising, it later evolved metaphorically to describe the ability to exert influence or power.

The word 'leverage' originates from the concept of a lever, a simple machine used to lift or move heavy objects, symbolizing the ability to exert influence or advantage disproportionately.

First known use: 1724

How to Remember leverage

Think of a lever used in physics: a small force on one end can move a great weight on the other, just as leverage enables someone to achieve significant influence with limited effort.

Synonyms for leverage

  • influence
  • advantage
  • authority
  • dominance
  • control
  • power
  • clout
  • sway

Antonyms of leverage

  • disadvantage
  • weakness
  • impotence
  • inability
  • powerlessness

leverage in a Sentence

  1. The company used its financial leverage to negotiate better terms with suppliers.
  2. She leveraged her network of contacts to secure a position at the prestigious firm.
  3. Effective leaders understand how to leverage both human and capital resources to maximize results.

leverage in Literature & Culture

Leverage is frequently used in business literature, political discussions, and self-help books to describe the strategic use of influence or resources to achieve goals.

Usage Notes

Leverage is commonly used in both literal contexts (e.g., a lever in mechanics) and figurative contexts (e.g., influence in business or negotiations). Be cautious not to confuse 'leverage' with 'leverage ratio,' which specifically pertains to finance.

Why leverage Matters for GRE & SAT

Leverage is a high-frequency word on the GRE because it is often used in passages about business, economics, and management, testing your ability to understand metaphorical and contextual meanings.

Word Family

lever (noun)
A rigid bar used to move or lift a heavy object.
leveraged (adjective)
Used or applied in a way to maximize advantage.
leveraging (verb)
The act of using resources or influence to achieve a desired result.

Did You Know?

  • The concept of leverage is rooted in mechanical principles discovered by Archimedes, who famously said, 'Give me a place to stand, and I will move the earth.'
  • In finance, leverage refers to the use of borrowed capital to increase potential returns, but it also increases the risk of loss.
  • The term is frequently used in negotiation tactics, where one party seeks to gain an advantage over another.

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