MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Capital Structure is called ____
A
Quantitative aspect
B
Qualitative aspect
C
Both (a) and (b)
D
None of these
Explanation: 

Detailed explanation-1: -Capital Structure = Equity Capital + Preference Share Capital + Debt Capital. hence, it is the Quantitative aspect of finance planning of a business.

Detailed explanation-2: -Capital structure is a broad term and it deals with qualitative aspect of finance. While capitalization is a narrow term and it deals with the quantitative aspect.

Detailed explanation-3: -It is concerned with the qualitative aspect of the financial planning of an enterprise since it deals with the proportion among the different types of securities.

Detailed explanation-4: -Introduction. 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-5: -In finance, capitalization is a quantitative assessment of a firm’s capital structure. Here it can refer to the book value cost of capital, which is the sum of a company’s long-term debt, stock, and retained earnings. The alternative to the book value is the market value or market capitalization.

There is 1 question to complete.