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Kawsor Ahmed posted an Question
February 09, 2021 • 04:54 am 30 points
  • UGC NET
  • Commerce

37. statement-i : capital structure refers to composition of long-term funds. statement-ii: these include equity share capital, preference share capital, debent

37. Statement-I : Capital structure refers to composition of long-term funds. Statement-II: These include equity share capital, preference share capital, debentures, all debts and all reserve A) Both Statements I and I are correct. B) Statement I is correct but Statement I is incorrect. C) Statement I is incorrect but Statement II is corect. P) Both statements are incorrect.

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  • Rucha rajesh shingvekar

    Capital structure refers to the proportion of long-term debt and equity in the total capital of a company. On the other hand, financial structure refers to the net worth or owners' equity and all liabilities (long-term as well as short-term).

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    Kawsor ahmed

    Statement I might be right because all funds are long term

    eduncle-logo-app

    Capital structure refers to the proportion of long-term debt and equity in the total capital of a company. On the other hand, financial structure refers to the net worth or owners' equity and all liabilities (long-term as well as short-term).

    eduncle-logo-app

    so both the statements are wrong.

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    Ronak kumari upadhyay

    Dear student mark as best answer if u r satisfied with it so that other students can take it as the right answers too.

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    Ronak kumari upadhyay best-answer

    Dear student answer is D Capital structure refers but to composition of long term funds that include debts, share capital and preference share capital, Capital structure doesn't include all reserves. Hence, the first and second statement is incorrect.

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