Definition
Capital Structure is the mix of debt and equity financing used by a company to fund its operations. It shows up in the paperwork: ownership, rights, and what happens when things change. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Capital Structure?” The useful answer is concrete: mix of debt and equity financing used by a company to fund its operations. A slide title is not an answer.
Common mistake
Using Capital Structure as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Capital
Financial resources available for investment in business operations and growth.
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Capital Appreciation
Increase in the value of an investment over time, excluding dividends or interest.
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Capital Budgeting
Process of evaluating and selecting long-term investment projects for a company.
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Capital Cost
Cost of funds used to finance a business, including debt and equity expenses.
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