Capitalization questions and answers

Capitalization is a term which has different meanings in both financial and accounting context….
The two main theories which are involved with the amount of capitalization are as follows:-…
Capitalization of a company neither should be low or high. It should be suitably available at the time of need…
Under capitalization is any situation which restricts the business companies to acquire the funds which they need. …
Company - It has a big impact on the company because of low profits the companies reputation is harmed….
There are different sorts of remedies available for over capitalization which are as follows:-…
The under capitalization in this one effect the company to bring the greater reputation for them and with greater earning their market shares also increases….
Undercapitalization is when the actual capitalization is lower than its proper capitalization as it is given by its earning capacity….
Remedies are the solutions which are available for the companies to overcome the problem of undercapitalization this can be done by using two factors. These factors are as follows…
Watered stock/capital is that stock which is issued with a value much higher than the value of assets which a company ow…
Overcapitalization is a state where earnings are not sufficient to justify the fair return on the amount of share capital which …
Watered capital is called so because the flow of money can be seen at the time of promotional events only…
Capitalization is a collection of share capital, loans, reserves and debentures…