Business Studies, asked by jainrishab106, 9 months ago

Difference between over capitalisation and under capitalisation in financial management

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Answered by Anonymous
3

Over-capitalisation involves a great-strain on the financial resources of a company whereas under-capitalisation implies high rate of earnings on its shares. 2. The remedial procedure of over-capitalisation is more difficult and expensive as compared to the remedial procedure of under-capitalisation.

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