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Raising more money than profitable used causes?

32. Raising more money than profitable used causes?

  1. Capitalization
  2. Excess Share Capital
  3. Over-Capitalization
  4. Dividend

Answer: C) Over-Capitalization

Explanation:

Over-capitalization results from raising more money than can be profitably used. Over-capitalisation takes place when a company raises more money by the issue of shares and debentures than can be profitably used.

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