nicole0727 nicole0727
  • 11-12-2019
  • Business
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What’s undercapitalization?

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stoneman467
stoneman467 stoneman467
  • 11-12-2019

Answer:Under-capitalization refers to any situation where a business cannot acquire the funds they need. An under-capitalized business may be one that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy, may be one that is over-exposed to risk, or may be one that is financially sound but does not have the funds required to expand to meet market demand.

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