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
Do you provide assignment help on Miller and Modigliani Model? Do you have experts in this topic? I have an assignment and it is tough to solve me. Please suggest me if you can giv

Treasury Notes or T-notes are the securities issued with maturities of more than one year and but not more than 10 years. All these securities are coupon securiti

Floating Rate Notes (FRNs): When interest rates are high and the general outlook is either stable or indicating the possibility of a downward trend in return, then an investor

your firm is considering its household products division. you identify John Lewis as a firm with comparable investments. suppose J.L. equity has a market capitalization of 150 bill

Advantages to the Investors: The warrant acts as a sweetener and ensures a better subscription to the NCDs, especially for companies with good track record. NCDs with warran

Movements in working capital The year-end balances of trade, inventories and other receivables and payables are taken for current year-end as well as last year-end statement

Organizational Cost Drivers It is the cost consequences that result from managerial choices concerning the company of activities as well as the involvement of persons inside an

Q. Scope of the content of the finance function? 1) Estimating of the finance requirement: the first task of a finance manager is to estimate and short terms and long terms fin

1 In the process of considering two job offers, Jill Saunders wants to determine which position would have the higher monetary value. Job 1 has a salary of $42,500 with $4,800 of n

What are some of the primary advantages when a corporation has operations in countries other than its home country?  What are some of the risks? Foreign operations may decrease a