Common factors influencing capital structure
Write down the common factors influencing capital structure?
Expert
The common factors which are influencing the capital structure are illustrated below :- 1) Company constitution : In companies capital structure is extremely significant as many companies treat it as a dissimilar entity. Private companies considers control factor as significant whereas public company finds cost factor more significant. 2) Company characteristics : Characteristic of the company that explain its infrastructure as age, size and credit plays pivotal role in deciding the capital structure. Slighter or newly started companies depend more on equity capital as they can do limited bargaining. Large companies or having good credit companies are in the place to get funds from the source of their selection. 3) Stability of Earnings : Fluctuations takes place if the earnings and sales of the company are not secure enough over an era of time. Stable company can get the risk. 4) Attitude of the Management : Attitude performs a significant role as if the attitude is conventional then control factor gets the significance and if it is liberal then cost factor gets significant.
Economic efficiency is present while the: (w) economic system is a pure socialist system. (x) resources obtainable are slightly wasted. (y) value of output is maximized, specified restricted resources. (z) utilization of resources is minimized. <
When, in a perfectly competitive industry, where the market price facing a firm is above its average total cost on the output here marginal revenue equivalents marginal cost, in that
Adam Smith and the “typical liberal” economists who followed within his footsteps viewed persistent monopolization and market power as: (1) ineffective and best regulated through government. (2) crucial in finding the rate of technological
Briefly describe the meaning of Modigliani- Miller (M and M) approach?
What are the determinants of demand?
In heterodox economics, what implications does technical change and vintage technology contain for the cost structure of the business enterprise?
What are economic resources? What are the major functions of the entrepreneur?
Elucidate: Competition and the “Invisible Hand”?
Double coincidence of wants: This means that one person's wishing to buy and sell should coincide with another person’s wish to buy and sell.
18,76,764
1936307 Asked
3,689
Active Tutors
1448319
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!