Introduction and Financial/Capital Structure

Question 1

Describe the components of a firms financial structure.

Answer 1

All elements of liabilities (current and non-current) and owners’ equity of a firm constitute its Financial Structure

Question 2

What are “Financing Options”?

Answer 2

The alternative ways that funding may be obtained to carry out capital projects and other undertakings of an entity.

Question 3

Describe the components of a firm’s capital structure.

Answer 3

All elements of long-term debt and owners’ equity.

Question 4

Which is more inclusive, capital structure or financial structure?

Answer 4

Financial Structure, which includes current and non-current liabilities, as well s owners’ equity. Capital Structure does not include current liabilities, only long-term debt and owners’ equity.