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Questions and Answers
True or false: Capitalization refers to the process of determining the quantum of funds that a firm needs to run its business?
True or false: Capitalization refers to the process of determining the quantum of funds that a firm needs to run its business?
True (A)
True or false: Capitalization includes reserve and surplus?
True or false: Capitalization includes reserve and surplus?
False (B)
True or false: Over capitalization occurs when a company has more capital than actually required and the funds are not properly used?
True or false: Over capitalization occurs when a company has more capital than actually required and the funds are not properly used?
True (A)
True or false: Under capitalization occurs when a company's actual capitalization is higher than the capitalization as warranted by its earning capacity?
True or false: Under capitalization occurs when a company's actual capitalization is higher than the capitalization as warranted by its earning capacity?
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True or false: Watered capitalization is another term for under capitalization?
True or false: Watered capitalization is another term for under capitalization?
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