The term capital structure denotes: ?

B. Common and Preferred Equity, as well as Long Term Borrowings and Retained Earnings.

A successful finance manager will know how to balance the rewards of lower cost of capital (Mainly borrowed funds), with the risks associated with such borrowings.

b

(b)Equity Funds, Preference Capital and Long term Debt

The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.

all kinds of sources of capital mentioned in option b

(b)Equity Funds, Preference Capital and Long term Debt,

Option B is right

b) long-term sources of funds employed in the business

(b)Equity Funds, Preference Capital and Long term Debt,

The capital structure is defined as a mix of debt and equity or any other long term sources of funds use to finance a firm's investment and operating activities.

structure gives the para-mind or directions of Financing decisions of organisation, like target Debt-equity ratio, interest coverage ratio and mode of other finances. 

(b) is correct answer

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