undercapitalization


Also found in: Financial, Wikipedia.
Related to undercapitalization: overcapitalization

un·der·cap·i·tal·i·za·tion

 (ŭn′dər-kăp′ĭ-tə-lĭ-zā′shən)
n.
The condition of lacking sufficient capital to perform normal business operations.
References in periodicals archive ?
The General Meeting reviewed the development of the banking activity and the investments needed to implement the restructuring plan, while at the same time meeting the recommendations of ratings agency Standard & Poor's that has always expressed reservations about the undercapitalization of BH, he further said.
A cornucopia of factorsthe high cost of food and labor, undercapitalization, and what the Cornell Hotel & Restaurant Administration Quarterly calls "organizational adolescence," or growing painsmakes enduring success unlikely.
Both Henry, a construction industry veteran, and Boynton knew that a lot of pub ventures floundered due to undercapitalization, but they leveraged support through a multi-faceted approach of presales and crowdfunding, which led to a community loan for creating jobs.
Having the candidate start out underfunded One of the leading causes of franchise failure is undercapitalization or insufficient funding.
Undercapitalization is a top reason for business failure.
Despite the warning signs, many claims professionals were known for pushing the use of ELNY annuities to save money, even as ELNY's undercapitalization became too obvious to ignore.
Yet, despite the fact that African-Americans have occupied the theatrical landscape for more than 200 years, professionals of color still suffer from under-representation and undercapitalization.
There is a negative and significant relationship between the quality of financial reporting and undercapitalization.
They considered that risks to the banking sector are manageable, but encouraged the authorities to promptly address the undercapitalization of a few banks and to monitor closely non-performing loans.
Risks to the banking sector are manageable, although the undercapitalization of vulnerable banks needs to be addressed.
Among the things she teaches is that 50 percent of small businesses fail within the first seven years, and one of the reasons for that is undercapitalization.
Following her Jackson Hole speech, the IMF staff let it be known that the degree of undercapitalization in the European banks was of the order of 200 billion [euro], or around double the amount to which the Europeans were then prepared to own up.