What Is Capital Structure? Why Would a Company Choose to Borrow

question 64

Essay

What is capital structure? Why would a company choose to borrow money rather than issue additional stock?

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Definitions:

Ethics Officer

A role within an organization dedicated to ensuring ethical practices are followed, often responsible for developing and enforcing ethical guidelines.

Auditing

The process of reviewing and inspecting the financial records and operations of an entity to ensure accuracy and compliance with laws and regulations.

Federal Sentencing Guidelines

A set of regulations that determine the sentencing for individuals and organizations convicted of federal crimes, including provisions that reduce penalties for corporations with effective compliance programs.

Golden Rule

A moral principle that suggests treating others as one would like to be treated.