The mix between debt and owners fund is known as:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Capital structure
Capital structure refers to the mix or proportion of debt and owners’ funds (equity) used to finance a company’s operations and growth. It shows how a firm balances borrowed funds and shareholders’ investment to achieve an optimal financing arrangement that minimizes cost and risk.
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Financial Decision is a broad term for decisions related to finance, one category of which is the capital structure decision.
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Working capital is the difference between a company's current assets and current liabilities (used for day-to-day operations).
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Fixed capital refers to funds invested in long-term assets like land, buildings, and machinery.