Undercapitalization

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What is Undercapitalization? Meaning.

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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	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 co (...)

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