The financial management activity that determines the proper mix of debt and equity is ________.
A)capital structure
B)long-term financing
C)capital budgeting
D)working capital management

Question

Quizplus · Accepted Answer

Capital structure refers to the combination of debt and equity that a company uses to finance its operations and investments. It is an important financial management activity as it determines the cost of capital for the business and the risk associated with its financing decisions. Long-term financing, capital budgeting, and working capital management are also important financial management activities, but they do not specifically focus on determining the proper mix of debt and equity.

The Financial Management Activity That Determines the Proper Mix of Debt