Capital structure management helps to safeguard your ongoing business operations, to ensure flexible access to capital markets and to secure adequate funding at a competitive rate. You have to decide the right combination of capital based on certain principles and available source of funds to maximize returns.

1) Cost Principle 2) Risk Principle 3) Control Principle 4) Flexibility Principle 5) Timing Principle

Capital structure is a term which is referred to be the mix of sources from which the long term funds are required for business purposes which are raised to improve the capital of the company. To fund an organization plan this capital structure is required which is the combination of debt and equity. The management ensures the capital structure accesses which are needed to fund future growth and enhance financial performance. **The principles of capital structure management which are essentially required are as follows:-** 1) Cost Principle 2) Risk Principle 3) Control Principle 4) Flexibility Principle 5) Timing Principle