The Term Capital Structure Describes

question 138

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.

---

Definitions:

Exclusive Franchise

A business arrangement granting a single entity the right to market a company's goods or services within a specified territory.

Deregulation

The process of reducing or eliminating government controls or restrictions on industries to promote efficiency and competition.

Industrial Regulation

Policies and rules implemented by governments to control or manage the activities, standards, and behaviors of industries and their participants.

Net Benefits

The net gain from a decision or action, calculated by subtracting the total costs from the total benefits.