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Which of the following may be a component of a company's capital structure?

I. Long-term debt
II. Short-term debt
III. Equity

A. I and II
B. I and III
C. II and III
D. I, II, and III


Sagot :

Final answer:

A company's capital structure comprises long-term debt, short-term debt, and equity, which are vital in financing its operations.


Explanation:

Capital structure refers to the way a company finances its operations by using different sources of funds. Components of a company's capital structure include long-term debt, short-term debt, and equity. Long-term debt involves borrowing money for an extended period, while short-term debt involves shorter repayment periods. Equity represents ownership in the company, where shareholders have a stake in the business.


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