The amount of debt and equity used by a firm to finance its operations is called the
Firm's:
A)debt ratio
B)working capital ratio
C)capital structure
D)financial position
E)cash position

Question

Quizplus · Accepted Answer

Capital structure refers to the combination of debt and equity that a firm uses to finance its operations. The amount of debt and equity used can affect the firm's risk, profitability, and overall financial stability. Therefore, capital structure is an important decision for a firm to make, and it can impact the company's long-term success.

The Amount of Debt and Equity Used by a Firm