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Undercapitalization |
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Description of Undercapitalization. Explanation. |
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.
Compare with: Recapitalization | Gearing Ratio | Debt to Equity Ratio | Accounts Receivable Factoring | Restructuring | Turnaround Management | Capitalization Ratio | Working Capital | Sale and Leaseback |
| Return to Management Hub: Change & Organization | Finance & Investing
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End of description Undercapitalization. An explanation. |
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