A. 
Differentiate the capital structure and financial structure
🅰CAPITAL STRUCTURE
The capital structure is the ratio of the corporate debt to the owner’s equity. The capital structure shows how a company is dealing with its debt, asset, equity. It was more simple and less information compared to the financial structure, and mainly to investigate the relationship between debt, equity, asset, and how much the risk and benefit it would bring to a company, what is the ratio or leverage that is most suitable for the company. The Capital structure usually includes only the long term sources of the funds but not the short-term funds such as the long term borrowings, liabilities, equity such as the common stock, special stock and so on. After the forming, the capital structure is less elastic compared with the financial structure. Besides that, the capital structure is more useful to determine and judge the value of the firm too. In overall view, the capital structure will also include inside the financial structure.
After that, the financial structure refers to how all the assets and all sources of capital of the company are obtained. The financial structure was a structure of the balance sheet and it was more complex than the capital structure and have more information inside it such as the revenue, operating income, total assets, total equity, net income, and so on. Inside the financial structure will include both long-term sourcing of funds and also the short-term sourcing of funds. The financial structure is trying to find out the best combination and balance between all of the company’s equity and liabilities including long and short term in order to maximize the shareholder wealth. However, financial structure is not too effective and important while needed to determine and judge the value of the firm.
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