Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability ...

For example, with a public company, there are two management levels that create the corporate structure: the board of directors, led by the chair of the board, and the management team, led by the CEO.

For example, if a company has $100 million in assets and $40 million in debt, its debt ratio would be 40%. When evaluating capital structure, context is everything.