Financial Structure

Financial Structure Distinguished from capital structure of a company which includes only long – term debt and equity, the financial structure of a company is revealed on the right – hand (liabilities side of a company’s balance sheet, which includes all the items which finance the assets (left – hand side of the balance sheet): current liabilities, long – tem liabilities, and shareholders’ equity. The financial structure I influenced by the growth and stability of sales, market competitions, the quantum of profits, the attitude of the short – term lenders, and eh efficiency of the company’s management. The financial structure helps take LEVERAGE decisions.

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