q what is over-capitalisationover-capitalisation


Q. What is Over-capitalisation?

Over-capitalisation

This is the opposite of over trading. It means a company has a large volume of inventories, cash balances and trade receivables but very few trade payables. Funds tied up could be invested more profitably elsewhere and so this an effective use of working capital.

Request for Solution File

Ask an Expert for Answer!!
Financial Econometrics: q what is over-capitalisationover-capitalisation
Reference No:- TGS0353535

Expected delivery within 24 Hours