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Financial structure refers to the balance between all of the company’s liabilities and its equities.It thus concerns the entire “LIABILITIES+EQUITIES” side of the balance sheet.
Financial structure is the mixture that directly affects the the risk and value of the business.
Financial structure refers to the balance between all of the company’s liabilities and its equities. It thus concerns the entire “Liabilities+Equities” side of the balance sheet. Capital structure, by contrast, includes equities and only the long-term liabilities.
Financial structure differs from capital structure in that capital structure account for long term debt and equity only.
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