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Undercapitalization

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Description of Undercapitalization. Explanation.


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Definition Undercapitalization. Description.

 

Undercapitalization is the situation in which a business lacks sufficient working capital to perform its normal business activities.

 

In order to avoid bankruptcy, undercapitalized corporations should be recapitalized, in other words have some of their debts forgiven and get a new injection of equity capital.


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Aman - USA Avoid small business failures "I have a hair salon and I just want to know about how I can avoid under capitalization, incompetence and inability to cope with growth. "    0



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Compare with: Recapitalization  |  Gearing Ratio  |  Debt to Equity Ratio  |  Accounts Receivable Factoring  |  Restructuring  |  Turnaround Management  |  Capitalization Ratio  |  Working Capital  |  Sale and Leaseback  |  Microfinance
 

Return to Management Hub: Change & Organization  |  Finance & Investing

 

More on Management  |  Return to Management Dictionary  | 

 

End of description Undercapitalization. An explanation.

 

 
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