Advertisement Remove all ads

What is Meant by Capital Structure? - Business Studies

Short Note

What is meant by capital structure?

Advertisement Remove all ads

Solution

Capital structure is the proportion of debt and equity used for financing business operations. It represents the proportion of debt capital and equity capital in the capital structure. It is not easy to define the best capital structure for a firm. It should increase the value of the equity share or maximize the wealth of the equity shareholders.

`"Capital Structure"="Dept"/"Equity"`

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Class 12 Business Studies Part 2 - Business Finance and Marketing
Chapter 1 Financial Management
Very Short Answer | Q 1 | Page 253
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×