Overcapitalization is a situation in which company
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in your company that we will get to it but if we do the work for a long shot in your company
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Overcapitalization is a situation in company has left more debts than assets.
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- Overcapitalisation occurs when the price or the value of an asset is higher than the real value. It puts constraints on the return to investments. Such as in capital goods.
- The company that is highly capitalized has to pay higher interest and dividend payment that will take away the profits. This may not be sustainable in the long term and may lead the company to bankruptcy.
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- brainly.in/question/12037993 answered by makrand3.
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