A question on undercapitalisation
Ujjawal Kumar (11 Points)
15 July 2018
how does excess trading result in undercapitalisation?
1 Replies
vaishali singh
(trainee)
(395 Points)
Replied 22 July 2018
an undercapitalized firm means an efficient firm in trade and business.more trading would create more requirement of funds and in case of lack of fund sources in capital structure would take it into undercapitalisation.
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