Capital Structure Decisions Include Which of the Following

question 231

Multiple Choice

Capital structure decisions include which of the following?

• A) Determining the number of shares of stock to issue.
• B) Determining whether the firm should purchase or lease some equipment.
• C) Allocating funds to the various divisions within the firm.
• D) Evaluating the size of inventory to be kept on hand.
• E) Evaluating the customer credit policy.

---

Definitions:

Selling and Administrative Budget

This is a detailed plan that outlines the expected expenses related to selling the products and managing the business operations.

Cash Budget

An estimation of cash inflows and outflows for a business over a specific period, used for managing the company's cash flow.

Production Budget

An estimate of the total number of units that must be produced in a given period to meet expected sales and inventory levels.

Sales Budget

A detailed schedule showing expected sales expressed in both dollars and units.