Undercapitalization

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Undercapitalization
Undercapitalization refers to any situation where a business owner cannot acquire the funds they need. Usually, this refers to a business that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy.
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Campbell R. Harvey's Hypertextual Finance DictionaryDownload this dictionary
Undercapitalization
Insufficient capital in a business to carry out its normal functions.

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