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    Business A-Level

    Capital Structure and Gearing

    What Capital Structure and Gearing means in Business A-Level, as defined for Pearson Edexcel.

    Definition of Capital Structure and Gearing

    The analysis of a firm's ratio of debt to equity and how this affects the business's ability to withstand economic volatility and its attractiveness to future investors.
    Pearson Edexcel · Raising finance

    Topics that use Capital Structure and Gearing

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    Using Capital Structure and Gearing in the exam

    Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.

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