The mixture of debt and equity used by a ﬁrm to ﬁnance its operations is called:
A) Working capital management.
B) Financial depreciation.
C) Cost analysis.
D) Capital budgeting.
E) Capital structure.

Question

Quizplus · Accepted Answer

The mixture of debt and equity used to finance a firm's operations is called its capital structure. Working capital management involves managing a firm's short-term assets and liabilities, while financial depreciation refers to the decline in the value of an asset over time. Cost analysis is the study of the costs associated with a business operation or investment, and capital budgeting is the process of identifying and evaluating potential long-term investments.

The Mixture of Debt and Equity Used by a ﬁRm