What is the meaning of over-capitalisation, Financial Management

What is the meaning of Over-capitalisation

It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though very few trade payables. Funds tied up could be invested profitably.

 

Posted Date: 8/31/2013 6:08:45 AM | Location : United States







Related Discussions:- What is the meaning of over-capitalisation, Assignment Help, Ask Question on What is the meaning of over-capitalisation, Get Answer, Expert's Help, What is the meaning of over-capitalisation Discussions

Write discussion on What is the meaning of over-capitalisation
Your posts are moderated
Related Questions
Functions of Financial Management Traditional function of financial management has been limiting the role of finance toraising and administrating of funds required by the compa

Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

Federal Agency Securities are those securities issued by federally related institutions and those issued by Government-Sponsored Enterprises (GSE). Securities iss

Types of Mortgages 1. Traditional Mortgages 2. Non -  Traditional Mortgages 3.  Graduated-Payment Mortgages (GPMs) 4.  Pledged-Account Mortg

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha

Geographical Classification of Mutual Funds : Nations' boundaries provide territorial restrictions on the sale and purchase of mutual fund units or shares as is the case in com

How do tax considerations affect the cost of debt and the cost of equity? As interest on debt is tax deductible to the issuing firm, as much higher the tax rate the lower the aft

Chu Chu Train Systems is expected to pay a $3.25 annual dividend (D1 = $3.25), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently s

Will you please define the working capital and Calculation of working capital? I need urgent help in my assignment. help me!

Q. What do you mean by Time value of money ? The concept of TVM refers to the fact that the money received today is different in its worth from the money receivable at some oth