IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

capital structure

Financial Management

What is over capitalization and under capitalization? in which module are these concepts covered

Priyanka Udeshi

CA Final

★ 14K+

05-Apr-21 01:13

378

Answers (1)

Best Answer

Over Capitalisation is a situation where a firm has more capital than it needs and Under Capitalisation is a state, when its actual capitalization is lower than its proper capitalization as warranted by its earning capacity. Both are bad to the business. This topic is being recorded. Will be available soon.