Question

Q.6 Justify the following statements.
1. The firm has multiple choices of sources of financing.
2. There are various factors affecting the requirement of fixed cap
3. Fixed capital stays in the business almost permanently..
4. Capital structure is composed of owned funds and borrowed fu
5. There are various factors affecting the requirement of working​

Answer 1

Answer:

The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.

Answer 2

Explanation:

The firm has multiple choices of sources of financing.