BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Capital Structure covers only the long term sources of funds, whereas financial structure implies the way assets of the company are financed, i.e. it represents the whole liabilities side of the Position statement, i.e. Balance Sheet, which includes both long term and long term debt and current liabilities.

Detailed explanation-2: -Capital structure refers to the specific mix of debt and equity used to finance a company’s assets and operations. From a corporate perspective, equity represents a more expensive, permanent source of capital with greater financial flexibility.

Detailed explanation-3: -1. The term “capital structure” refers to: long-term debt, preferred stock, and common stock equity.

Detailed explanation-4: -Which of the following is not true about capital structure? The traditional approach says that a firm may attain an optimal capital structure. There is difference of opinion on the relationship between capital structure and value of the firm. Capital structure does not include short term liabilities.