The two primary factors management considers in determining the business's capital structure is level of risk and the rate of return.

Question

Quizplus · Accepted Answer

Capital structure decisions are primarily driven by the level of risk associated with different sources of funding and the expected rate of return from them. Other factors such as tax implications, flexibility, and control may also be considered, but risk and return are most important.

The Two Primary Factors Management Considers in Determining the Business's