Questions and Answers
What is the consequence of overcapitalization in a company?
Inefficient use of resources
Which scenario best describes balanced capitalization?
A manufacturing company carefully assessing its capital needs
What is undercapitalization in a company?
Insufficient capital to meet operational needs
Which best describes equity capital?
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What is debt capital in a company?
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In terms of capital gearing, what does it mean to be highly geared?
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What is the primary issue with overcapitalization?
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How does undercapitalization impact a company's operations?
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'Balanced Capitalization' is achieved when:
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'Debt-Equity ratio' refers to:
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