Interview Questions Answers.ORG
Interviewer And Interviewee Guide
Interviews
Quizzes
Home
Quizzes
Interviews Finance and Accounts Interviews:Accounting And FinanceAccounting ReportsAccounting TypesAuditor InternalBalance Sheet Bank ClerkBank ReconciliationBank TellerBasic AccountingBasic Financial ManagementBudgetaryBudgetary ControlCapital MarketCapital RationingCapital StructureCapitalizationCashierCorporate FinanceCost AccountancyCost ElementDepreciation Double Entry System ExpendituresFinanceFinance GeneralFinancial AccountingFinancial AdvisorFinancial AnalysisFinancial StatementsLedgerManager FinanceMarginal CostingMaterial Cost MBA Finance PayrollProfit And LossSupervisoryUniform CostingWorking Capital Management
Copyright © 2018. All Rights Reserved
Capitalization Interview Question:
Explain what are the indications of existence of undercapitalization in a company?
Submitted by: AdministratorUndercapitalization is when the actual capitalization is lower than its proper capitalization as it is given by its earning capacity. Undercapitalization is indicated by the condition above and when the rate of earning is very high in effect to the returns which other companies get which are in the same industry as others. This is also indicated when a company does not have sufficient capital to conduct normal business operations and they have to pay the people from whom they have taken. When a company doesn't generate enough cash flow to access the forms then it is said to be undercapitalized.
Submitted by: Administrator
Submitted by: Administrator
Copyright 2007-2024 by Interview Questions Answers .ORG All Rights Reserved.
https://InterviewQuestionsAnswers.ORG.
https://InterviewQuestionsAnswers.ORG.