Meaning Of Capital Structure The term “capital structure” refers to the proportion of the firm’s total capital allocated to various long-term sources of finance. Long-term financing comes primarily from the following sources: Proprietors Funds include equity capital, preference capital, reserves and surpluses (ie, retained earnings), and Borrowed Funds include long-term debts such as bank loans, … Read more
Every person has some wants and desires that he cannot fulfill alone, so he joins an organized group to fulfill his desires. But any organized group will only be successful when there is someone to handle or manage it, called a “manager.” We can say that characteristics of management is an important factor in helping … Read more
The qualities of an optimum or sound capital structure should have the following characteristics : A sound capital structure typically has several key features that enable a company to operate and grow sustainably over the long term. Here are some of the most important features: Qualities of Sound or Optimum Capital Structure Simplicity The capital … Read more