The Difference Between Financial Structure And Capital Structure:
The following points indicate the difference between the financial structure and capital structure.
1. The Financial structure includes both long-term and short-term sources of funds while the capital structure includes only the long-term sources of funds.
2. The Financial structure means the entire liabilities side of the balance sheet while the capital structure means only the long-term liabilities of the company.
3. Financial structures consist of all sources of capital while the capital structure consist of equity, preference and retained earning capital.
4. The Financial structure will not be more important while determining the value of the firm but the capital structure It is one of the major determinations of value of the firm.
The following points indicate the difference between the financial structure and capital structure.
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1. The Financial structure includes both long-term and short-term sources of funds while the capital structure includes only the long-term sources of funds.
2. The Financial structure means the entire liabilities side of the balance sheet while the capital structure means only the long-term liabilities of the company.
3. Financial structures consist of all sources of capital while the capital structure consist of equity, preference and retained earning capital.
4. The Financial structure will not be more important while determining the value of the firm but the capital structure It is one of the major determinations of value of the firm.
The Difference Between Financial Structure And Capital Structure
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Saturday, April 08, 2017
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