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In a firm with no long-term debt, the question of capital structure is irrelevant. 1)True 2) False

Budgeting Financial Management
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Question added by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)
Date Posted: 2014/01/30
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Virendra Rathore
by Virendra Rathore , Senior Executive Accounts , Impetus Infotech India Private Limited

False.

Reason :-  Capital Restructuring in general term means reallocating the sources of finance in respose to new business scenario. This can also be done for short term finance. So in my personal opinion capital structuring is applicable even if company does not have any long term finance.

 

 

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