Capital Structure Refers to How the Firm Finances Its Operations

question 54

Multiple Choice

Capital structure refers to how the firm finances its operations and growth through a combination of ________.

• A)equity types
• B)security types
• C)types of earnings
• D)types of debt

---

Definitions:

Performance Measure

A quantitative indicator used to evaluate the effectiveness or success of an organization, employee, or process in achieving objectives.

Company As Whole

Refers to considering an organization in its entirety, often in the context of evaluating overall performance or strategy.

Return On Investment

A financial ratio that calculates the profitability of an investment by dividing net profit by the initial cost of the investment.

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investment and non-operational assets.