Multiple Choice Questions on Capital structure refers to the mix of debt and equity used by a company to finance its operations F........... for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

Capital structure refers to the mix of debt and equity used by a company to finance its operations F...........

Business Studies (CUET) FINANCIAL MANAGEMENT
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    Capital structure refers to the mix of debt and equity used by a company to finance its operations. Financial strategies influence this mix and thus affect overall risk and return.
    Consists only of equity.Incorrect Answer
    Involves only short-term debt.Incorrect Answer
    Includes both debt and equity.Correct Answer
    Unrelated to financial strategies.Incorrect Answer
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    Explanation:

    Capital structure consists of both debt and equity financing.

    The mix is influenced by financial strategies that aim to balance risk and return.

    Effective capital structure decisions are crucial for achieving business objectives.

    By: Parveen Bansal
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