Capital Structure means how the assets are financed in an organization. Capital Structure is a component of the financial structure and it is in different Proportions of the various long terms sources of finance. Capital structure decision is that decision area where the decision regarding sources of long term procurement of funds is taken. Long term funds are also known as capital in financial management which can be broadly categorized into owned capital and borrowed capital. It is related with making the formalize of the sources of funds in a proper way which is in relative magnitude and proportion, various determinants need to be considered before a decision about a particular capital structure is taken.

KEYWORDS:  Capital Structure, Financial Management, Long Term Funds, Financial Structure.