Which of the following is an example of a capital structure?
A) 15% current assets and 85% fixed assets
B) 10% current liabilities and 90% long-term debt
C) 20% debt and 80% equity
D) None of these.

Question

Quizplus · Accepted Answer

A capital structure refers to the way a company finances its operations through a mix of equity and debt. Option C shows a capital structure of 20% debt and 80% equity, which is a common mix for many companies. Options A and B are not complete capital structures as they only show the composition of assets and liabilities without considering equity, while option D is not a valid choice.

Which of the Following Is an Example of a Capital