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FM
Question Practice

How does a company's growth prospect influence its capital structure?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Business Studies
Business Studies - II
Financial Management
Question Bank

How does a company's growth pr...

Single Answer MCQ
Q-00092833

How does a company's growth prospect influence its capital structure?

1

Only short-term debts are preferred.

2

More equity is issued for higher growth expectations.

3

Debt financing is avoided altogether.

4

Capital structure remains unchanged regardless of growth.

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