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

Question

Quizplus · Accepted Answer

A capital structure refers to the way a company finances its operations and growth through a combination of debt and equity. Option C represents a capital structure with 20 percent debt and 80 percent equity. Options A and B do not represent a capital structure as they only provide information about the composition of assets or liabilities. Option D is incorrect as one of the options represents a capital structure.

Which of the Following Is an Example of a Capital