Business Studies, asked by HarshitaNirwan1606, 3 months ago

danger of over capitalisation is limitation of which source of finance​

Answers

Answered by Anonymous
1

Answer:

Hope this helps you

Explanation:

Over- capitalisation marked by low earning capacity destroys the reputation and goodwill of the company with deterrent effect on its prospects of business. (ii) Difficulty in raising additional funds: It causes decline in share values which brings down the credit- standing and financial reputation of the company.

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