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Over-trading and under-trading are facets of over and under-capitalization. Over trading is a curse to the business.
Over-trading :
A company which is under-capitalized will try to do too much with the limited amount of capital which it has. For example it may not maintain proper stock of stock. Also it may not extend much credit to customers and may insist only on cash basis sales. It may also not pay the creditors on time. One can detect cases of overtrading by computing the current ratio and the various turnover ratios. The current ratio is likely to be very low and turn over ratios are likely to be very higher than normally in the industry concerned.
Under-trading :
Under-trading is the reverse of over-trading. It means keeping funds idle and not using them properly. This is due to the under employment of assets of the business, leading to the fall of sales and results in financial crises. This makes the business unable to meet its commitments and ultimately leads to forced liquidation. The symptoms in this case would be a very high current ratio and very low turnover ratio. Under-trading is an aspect of over-capitalization and leads to low profit.
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What is commodity trading or exchange?
commodity trading is the trading of primary products on exchange. spot trading and future trading of comodities are done to take advantage of difference between current and future prices.
Why did napoleon begin trading?
he bagan trading eggs.
What is the trading behavior of the market?
trading behavior is noisiness
What does commodity trading entail?
Commodity trading entails a broad spectrum of work. Commodity trading is the trading of raw materials or finished products for the good of two sectors, or countries.
When was Zokwang Trading created?
Zokwang Trading was created in 1974.
What is trading over-the counter?
The opposite of under the counter trading
What is over the counter trading?
The opposite of under the counter trading
What is over the counter?
The opposite of under the counter trading
What is the difference between over trading and over capitalisation?
Over-trading and under-trading are facets of over and under-capitalization Over trading is a curse to the business.Over Trading :A company which is under-capitalized will try to do too much with the limited amount of capital which it has. For example it may not maintain proper stock of stock. Also it may not extend much credit to customers and may insist only on cash basis sales. It may also not pay the creditors on time. One can detect cases of overtrading by computing the current ratio and the various turnover ratios. The current ratio is likely to be very low and turn over ratios are likely to be very higher than normally in the industry concerned.Under Trading:Under-trading is the reverse of over-trading. It means keeping funds idle and not using them properly. This is due to the under employment of assets of the business, leading to the fall of sales and results in financial crises. This makes the business unable to meet its commitments and ultimately leads to forced liquidation. The symptoms in this case would be a very high current ratio and very low turnover ratio. Under-trading is an aspect of over-capitalization and leads to low profit.
Two trading partners of Canada under the NAFTA agreement?
The USA and Mexico are Canada's trading partners under the NAFTA agreement.
What are some companies that offer futures trading brokers?
With over 23 years of service Cannon Trading is a leader in Futures Trading. Cannon Trading was one of the first company's to offer online trading. Cannon Trading offers 24 hour support and welcome clients for all over the world.
How did the Phoenician trading stations develop into colonies?
Carthage became rich and independent, and established its own trading stations. Under Carthage's Barca family, it broke the normal pattern of simply having a trading station by taking over territory and establishing territorial claims, which effectively became colonies.
What Australian laws apply to pastry chefs?
Check under health department regulations and fair trading. Check under health department regulations and fair trading.
What do we call the process of trading goods over the internet?
Trading online is known as e-commerce.
What is over trading and under trading in working capital management?
Over trading in working capital management occurs when a company relies too heavily on short-term financing to fund its operations, leading to excessive levels of working capital and potential financial risk. Under trading, on the other hand, happens when a company has insufficient working capital to support its day-to-day operations, which can lead to liquidity issues and impact the company's ability to meet its short-term obligations. Finding the right balance in managing working capital is crucial for a company's financial health and sustainability.
Over-the-counter trading is associated with which of these?
NASDAQ
What are the categories of operations under E-Commerce?
E-commerce is the trading and selling that happens over the internet. These include business to business, consumer to consumer, and business to consumer.
