What is the term used to describe how an entity is financed?
A)Capital structure
B)Leverage
C)Shareholders' equity
D)Obligation

Question

Quizplus · Accepted Answer

Capital structure refers to the way an entity is financed, including the mix of debt and equity. Leverage refers to the amount of debt used to finance an entity. Shareholders' equity represents the portion of an entity's assets that belong to its shareholders. Obligation refers to a legal or moral responsibility to pay or do something.

What Is the Term Used to Describe How an Entity