The term "capital structure" refers to:

Question

Quizplus · Accepted Answer

Capital structure refers to the way in which a firm finances its operations and growth through a combination of equity (shares) and debt (loans or bonds). It includes decisions about the proportion of equity and debt used, as well as the specific types of debt (short-term vs. long-term, convertible vs. non-convertible, etc.) and equity (common shares vs. preferred shares, etc.) that are issued. In summary, capital structure is the mix of debt and equity that a company uses to finance its operations and investments.

The Term "Capital Structure" Refers To