This article throws light upon the top two categories for the classification of finance required for a business. The categories are: 1. Fixed Capital 2. Working Capital. Classification of Finance: Category # 1. Fixed Capital: Meaning and Definition of Fixed Capital: The term 'fixed capital' stands for that amount of capital which is required for long-term to create production facilities [...]
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 [...]
The over and under capitalisation situations of a company can also be ascertained by comparing the book value and real value of equity shares of the company. The book value of equity shares is calculated on the basis of net assets available for equity shareholders. It can be computed by dividing the net assets available for equity shareholders with the [...]