MANAGEMENT

Detailed explanation-1: -Capital structure refers to the way that a business is financed-the mix of debt and equity that allows a business to keep the doors open and the shelves stocked.

Detailed explanation-2: -Capital structure is the mix of debt and equity on a company’s balance sheet. It shows how much of a company is financed by creditors and owners, and also provides insights into the company’s cost of capital-how much the capital in the business is costing the owners.

Detailed explanation-3: -Capital Structure is a combination of financial instruments like equity shares, preference shares, long-term loans, debentures, bonds or retained earnings that a business uses to raise funds for its operations.

Detailed explanation-4: -The different types of funds that are raised by a firm include preference shares, equity shares, retained earnings, long-term loans etc.

Detailed explanation-5: -The term “capital structure” refers to: long-term debt, preferred stock, and common stock equity.