The term "capital structure" refers to
A) the amount of current versus long-term debt on the balance sheet.
B) the amount of current versus fixed assets on the balance sheet.
C) the amount of debt versus equity on the balance sheet.
D) None of these.

Question

Quizplus · Accepted Answer

Capital structure refers to the mix or proportion of debt and equity financing used by a company to finance its operations and investments. It is the combination of debt and equity that a company uses to fund its operations and growth. Option A and B represent aspects of the balance sheet but do not capture the whole concept of capital structure. Option D is incorrect as the question is explicitly about capital structure.

The Term "Capital Structure" Refers to