State the term- overtradingovertrading takes place when a, Ask an Expert

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State the term- Overtrading

Overtrading takes place when a company has insufficient finance for working capital to support its level of trading. The company is growing rapidly and is trying to take on more business which its financial resources permit i.e. it's "under-capitalised".

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9580527

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