A Firm's Capital Structure Refers to the

question 60

Multiple Choice

A firm's capital structure refers to the

• A)division of a firm's assets into current and fixed assets.
• B)amount shareholders have invested into the firm.
• C)types of fixed assets owned by the firm.
• D)mix of debt and equity used to finance the firm's assets.
• E)amount of cash and cash equivalents held by a firm.

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Definitions:

Opportunity Cost

The cost of the next best alternative that is foregone when making a decision.

Rival

An individual or entity competing against others for the same objective or for superiority in the same field.

International Product Life Cycle

A theory describing how a product matures and sales change over time across international markets, often leading to global production and distribution changes.

Decline Phase

A stage in the life cycle of a product, market, or industry characterized by a decrease in sales, profitability, and consumer interest.