The Term Capital Structure Describes

question 67

Multiple Choice

The term capital structure describes:

• A) The mixture of debt and equity a firm uses to finance its operations.
• B) The mixture of long-term investments a firm has made.
• C) The mix of preferred stock and common stock that makes up the equity account of a firm.
• D) The firm's short-term assets and short-term liabilities.
• E) The mixture of short-term liabilities a firm uses to finance its short-term assets.

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Definitions:

Futures Price

The agreed-upon price for a financial instrument or commodity to be delivered and paid for at a future date.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage or used in culinary dishes and as a commodity traded on futures markets.

Futures Contracts

Standardized legal agreements to buy or sell a financial instrument or physical commodity at a predetermined future date and price.

Profit (Loss)

The financial gain or loss resulting from revenue generated minus the expenses of operating the business.