Capital Structure and Capital Flexibility
Capital must exhibit a capacity for agile and flexible combination, and re-combination to keep revenue flows refreshed and current. Likewise, capital structure must support fast, flexible, and unconstrained decision making. Understanding capital through the lens of Austrian economics can benefit your business.
Problem To Solve: What factors should be considered when building a business' capital structure?
How To Use This Tool
Entrepreneurs designing a firm’s capital structure should view their choices through the twin lenses of ownership and control. Debt and equity are the basic choices as building blocks of capital structure. Entrepreneurs must also consider human factors, especially the number of people in the capital structure. Entrepreneurs designing a firm’s capital structure should view their choices through the twin lenses of ownership and control. Debt and equity are the basic choices as building blocks of capital structure. Entrepreneurs must also consider human factors, especially the number of people in the capital structure.