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:
What is undercapitalization?
Submitted by: AdministratorUnder capitalization is any situation which restricts the business companies to acquire the funds which they need. Under capitalization is also a state like over capitalization where the owned capital of the business is much less than the borrowed capital. It also means that the owned capital of the company is not up to the scale and its operation and business depends on the borrowed money. This also comes as a result of over-trading. Under capitalization has many factors involved with it and it is indicated by:
(i) Low proprietary Ratio
(ii) Current Ratio
(iii) High Return on Equity Capital
Submitted by: Administrator
(i) Low proprietary Ratio
(ii) Current Ratio
(iii) High Return on Equity Capital
Submitted by: Administrator
Copyright 2007-2024 by Interview Questions Answers .ORG All Rights Reserved.
https://InterviewQuestionsAnswers.ORG.
https://InterviewQuestionsAnswers.ORG.