Unit-V
Capital and Capital Budgeting
1
, Capital
Capital means the total amount required by
the business to conduct its business
operations both in short term and long term
periods.
2
,Under Capitalization
• It means a company does not have sufficient
capital to conduct normal business operations
Over Capitalization
• It means a company have more than sufficient
capital to conduct normal business operations
3
, WORKING CAPITAL
• It means capital required to meet day-to-day
activities of the business.
4
Capital and Capital Budgeting
1
, Capital
Capital means the total amount required by
the business to conduct its business
operations both in short term and long term
periods.
2
,Under Capitalization
• It means a company does not have sufficient
capital to conduct normal business operations
Over Capitalization
• It means a company have more than sufficient
capital to conduct normal business operations
3
, WORKING CAPITAL
• It means capital required to meet day-to-day
activities of the business.
4
