The ________ of a company is the mix of equity, debt, and internally generated funds it uses to finance its activities.

Question

Quizplus · Accepted Answer

Capital structure refers to the specific combination of equity, debt, and internally generated funds that a company uses to finance its activities. It is an important strategic decision for management as it can impact the company's cost of capital, risk profile, and overall financial performance. The other options (A, C, D) are not commonly used terms in finance and do not accurately describe the concept of capital structure.

The ________ of a Company Is the Mix of Equity