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- Meaning of Mid-Term Financing
- Definition of Mid-Term Financing
- Explanation of Mid-Term Financing
Some Random Terms...
Capital Structure: Structure meaning is the formation or composition of an element. Every corporation or company has a structure in the formation of the capital.
So, capital structure means the total capital fund of a company or business organization. Such capital structure consist of debenture, long-term credit, preferred stock capital, equity stock capital, various types of provisions and cash balance.
So, capital structure is the total combination of all invested amount working in the business to run the organization smoothly.
💰Some Characteristics of Capital Structure:
There are some characteristics of capital structure which are shown below...
1. It needs to consider the profitability(profit earning ability) by fixing capital structure.
2. When the capacity of repayment of debt will be achieved by the company's regular operations resorting to such capital's earning, then it can be considered as a good capital structure.
3. A company's capital structure should be adequate in a liquid position.
4. The capital structure should be flexible to adapt to the changeable circumstances in the long run.
5. The equity and debt should be in an adjusted formation for the formation of an optimum capital structure. In such a case, the capital structure should be conservatism