In this article we will discuss about the risk and return faced while financial planning of a company. Costing and Risk: The word 'costing' relates to the ascertainment of cost of capital from different sources like equity capital, preference capital, debentures, long-term loans etc. The most crucial decision of any company is involved in the formulation of its appropriate capital [...]
After reading this article you will learn about Over-Trading:- 1. Meaning of Over-Trading 2. Causes of Over-Trading 3. Signs 4. Consequences 5. Remedies. Contents: Meaning of Over-Trading Causes of Over-Trading Signs of Over-Trading Consequences of Over-Trading Remedies for Over-Trading 1. Meaning of Over-Trading: In simple words, over-trading means, "a situation where a company does more business than what its finances [...]
After reading this article you will learn about the Under-Capitalisation:- 1. Meaning of Under-Capitalisation 2. Causes of Under-Capitalisation 3. Effects 4. Remedies. Meaning of Under-Capitalisation: In the words of Gersrtenberg, "A company may be under-capitalised when the rate of profits it is making on the total capital is exceptionally high in relation to the return enjoyed by similarly situated companies [...]