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.
Topics that use Capital Structure and Gearing
- Raising finance (Pearson Edexcel A-Level)
Related terms
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.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Business A-Level terms7 days Premium · Then free forever · No card, no charge