Business Studies, asked by adamlhoujiem96, 1 year ago

Can you please tell me atleast 5 difference between capitalization and capital structure in short

Answers

Answered by Madeeha23
1
Capitalist

1. It is a quantitative aspect of an enterprise's financial planning.

2. It refers to the total amount of sencurities issued by a firm.





Capital structure

1. It is concerned with the quanlitative aspect.

2. It refers to the types of securities and their proportionate amounts which makes up capitalisation. A firm can issue three types of securities. They are Debentures, Equality shares and Preference shares. The capital structure of an enterprise refers to the decision about the proportion of thesesecurities.

Some people include even the proportional of short-term debt in capital stucture. They refer to the capital structure as financial structure.
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