Question and answer
Question not found
Ask a question
Not a good answer? Get an answer now. (Free)
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
compare and contrast the pros and cons of over capitalization and under capitalization
Weegy: The main advantages/ merits of under-capitalization are -(i) Creation of secret reserves, (ii) Higher rate of dividend, [ (iii) Rapid increase in the prices of shares in the stock exchange; (iv) Symptom of economic prosperity of the company; (v) Increase in the rate of profits of the company; and (vi) Shares can be sold easily. The evils of under capitalization are- (i) Wide fluctuation in the prices of shares etc., (ii) Increase in competition, (iii) Increase in speculative activities, (iv) Increase in opportunities for manipulation by management, (v) Industrial relations tend to be strained, (vi) Dissatisfaction amongst consumers, they feel they are being exploited by the company, (vii) Increase in the tax burden of the company, (viii) Increased Government interference etc. The main advantages or merits of overcapitalization are: Increase in the competitive power of the company. Easy expansion of the company's activities. Morale of the management is raised. Risk-taking capacity is increased. No fear of shortage of capital. Power to face depression period is increased. The Disadvantages of over capitalization depends of the view of stakeholders and these are the following Form Company's Point View: (i) It reduces the earning capacity of the company; (ii) Reputation and goodwill of the company is adversely affected, i.e., reduced; (iii) Company takes resort to unfair practices; (iv) Manipulation of accounts etc. ] (More)
Question
Expert Answered
Asked 3/5/2012 1:44:13 AM
0 Answers/Comments
25,621,320 questions answered
Popular Conversations
Which of these muscle cell types contracts the ...
Weegy: Cardiac muscle is one of three major types of muscle, the others being skeletal and smooth muscle. These three ...
6/26/2016 10:44:47 PM| 2 Answers
The Joint Information System is:
6/26/2016 3:25:16 AM| 1 Answers
Solve for x. 4x + 3
Weegy: 4x + 3 User: 2x+8=6
6/26/2016 7:34:11 AM| 1 Answers
Weegy Stuff
S
P
L
Points 871 [Total 1532] Ratings 2 Comments 851 Invitations 0 Offline
S
Points 344 [Total 705] Ratings 2 Comments 324 Invitations 0 Offline
S
L
P
P
P
Points 156 [Total 3699] Ratings 0 Comments 156 Invitations 0 Offline
S
Points 135 [Total 416] Ratings 0 Comments 135 Invitations 0 Offline
S
Points 127 [Total 179] Ratings 0 Comments 127 Invitations 0 Offline
S
P
1
Points 107 [Total 852] Ratings 3 Comments 57 Invitations 2 Offline
S
L
Points 77 [Total 4197] Ratings 0 Comments 77 Invitations 0 Online
S
Points 76 [Total 151] Ratings 0 Comments 76 Invitations 0 Offline
S
Points 40 [Total 50] Ratings 1 Comments 30 Invitations 0 Offline
S
Points 32 [Total 139] Ratings 0 Comments 32 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.