Economics · Capital Structure
Consider the following statements regarding the conceptual differences between financial structure and capital structure in financial management: Statement 1: Financial structure refers to the complete financing mix of an enterprise, encompassing the totality of both long-term capital and short-term sources of funds. Statement 2: Capital structure is a more comprehensive term than financial structure because it includes all items on the right-hand side of the balance sheet, such as current liabilities and short-term bank credit.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 is false, but Statement 2 is true.
- 2Both statements are false.
- 3Both statements are true.
- 4Statement 1 is true, but Statement 2 is false.✓
Correct answer
Statement 1 is true, but Statement 2 is false.
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