Business Studies, asked by Jjjjjjjjjj6284, 1 year ago

What is capital structure in business studies?

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Answered by annuharvanvi
2
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✔️Capital structure :

Capital Structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets.  The structure is typically expressed as a debt-to-equity or debt-to-capital ratio.

Debt and equity capital are used to fund a business’ operations, capital expenditures, acquisitions, and other investments. There are tradeoffs firms have to make when they decide whether to raise debt or equity and managers will balance the two try and find the optimal capital structure

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Answered by Anonymous
1

Answer:

Capital Structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets.  The structure is typically expressed as a debt-to-equity or debt-to-capital ratio.

Explanation:

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