capital structure

Cards (5)

  • capital structure - represents finance provided to a business to enable it to operate over the long term
  • equity - amounts invested by owners of the business
  • reasons for business to have higher debt
    • profits & cash flow are strong so debt can be repaid rapidly
  • reasons for business to have higher equity
    • doesn’t want to risk paying interest/repayments
  • Debt - finance provided by external body