Considerations on the financial structure of the company
Cornelia Niţu
Abstract
Open-access reader
Cornelia Niţu
Abstract
Open-access reader
The basic objective of the financial function of the company is the continuous increase of the company’s value, so that there can be achieved a maximization of its value in comparison with the assets structure they form. The financial structure of the company is one of the most important problems of the financial management. It represents the support of the company’s development strategy. Many specialists in financial management have tried to define the concept differently, but the essence is the same; the financial structure represents the proportions in which a company resorts to the activity financing through equity capitals or loaned capitals.
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The basic objective of the financial function of the company is the continuous increase of the company’s value, so that there can be achieved a maximization of its value in comparison with the assets structure they form. The financial structure of the company is one of the most important problems of the financial management. It represents the support of the company’s development strategy. Many specialists in financial management have tried to define the concept differently, but the essence is the same; the financial structure represents the proportions in which a company resorts to the activity financing through equity capitals or loaned capitals.
Key concepts: Financial structure, Finance, Business, Equity (law), Capital structure, Value (mathematics), Maximization, Financial management