undercapitalization
A situation in which a company does not have enough cash available to carry on its business.
Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances
Category: Business Cash Flow Problems & Bankruptcy
Category: Business, LLCs & Corporations → Business Tax & Deductions
Category: Personal Finance & Retirement → Taxes → Tax Audits

Nolo’s Plain-English Law Dictionary. . 2009.

Look at other dictionaries:

  • Undercapitalization — refers to any situation where a business cannot acquire the funds they need. An undercapitalized 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… …   Wikipedia

  • undercapitalization — undercapitalized un‧der‧cap‧i‧tal‧ized [ˌʌndəˈkæptl aɪzd ǁ ər ] also undercapitalised adjective FINANCE if a company is undercapitalized, it has less capital than it needs in order to operate effectively and grow: • If you set up a store and you …   Financial and business terms

  • Undercapitalization — When a company does not have sufficient capital to conduct normal business operations and pay creditors. This can occur when the company is not generating enough cash flow or is unable to access forms of financing such as debt or equity. If a… …   Investment dictionary

  • undercapitalization — See undercapitalize. * * * …   Universalium

  • undercapitalization — noun Insufficient capitalization See Also: overcapitalization …   Wiktionary

  • undercapitalization —   sottocapitalizzazione   Quando il capitale aziendale disponibile è insufficiente al mantenimento delle condizioni di equilibrio e sviluppo dell impresa …   Glossario di economia e finanza

  • undercapitalization — The state of a company that does not have sufficient capital or reserves for the size of its operations. For example, this may be due to the company growing too quickly. Although such a company may be making profits it may be unable to convert… …   Accounting dictionary

  • undercapitalization — The state of a company that does not have sufficient capital or reserves for the size of its operations. For example, this may be due to the company growing too quickly. Although such a company may be making profits it may be unable to convert… …   Big dictionary of business and management

  • undercapitalization —    A situation in which a company does not have enough cash available to carry on its business …   Business law dictionary

  • undercapitalization — A term used in reference to a business which does not have enough cash or capital to effectively carry on the business. See also thin capitalization …   Black's law dictionary

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