The mix of debt and equity by which a corporation is ﬁnanced refers to the ﬁrm's:
A) Cash management.
B) Capital structure.
C) Capital budgeting.
D) Working capital management.
E) Leverage management.

Question

Quizplus · Accepted Answer

The mix of debt and equity by which a corporation is financed is known as its capital structure. Cash management refers to the management of a company's cash flow, capital budgeting refers to the decision-making process of allocating a company's financial resources to invest in long-term projects, working capital management refers to the management of a company's short-term assets and liabilities, and leverage management refers to the management of a company's debt in relation to its equity.

The Mix of Debt and Equity by Which a Corporation