Differentiate between Capital structure and financial structure.

CPA-Financial-Management-Section-3 Revision kit

Capital structure and financial structure
Capital structure is the proportion of each source of finance in a firm based on a long-term sources of capital (long term debt, preference share capital plus equity).

Financial structure is the proportion of each source of finance in a firm based on both long-term and short-term sources of capital (entire left hand side of the balance sheet).

(Visited 156 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published. Required fields are marked *