When making long-term plans, any increases in ________ and ________ reflect capital structure decisions that require managers to actively raise capital.
A)current ratio, equity
B)debt, assets
C)assets, equity
D)debt, equity

Question

Quizplus · Accepted Answer

When making long-term plans, any increases in debt and equity reflect capital structure decisions that require managers to actively raise capital. Increasing debt allows a company to leverage its assets to generate higher returns, but also increases financial risk. Increasing equity provides more stable funding, but can dilute ownership and limit control. Therefore, decisions about the balance between debt and equity financing are important to consider when making long-term plans.

When Making Long-Term Plans, Any Increases in ________ and ________

When Making Long-Term Plans, Any Increases in and