answersLogoWhite

0


Best Answer

Misallocation of funds is the worst of all the wrongs that the management might commit. Misallocation means faulty allocation. Wrong project choice is a total waste of all resources and efforts. It does not contribute to the organizational goals. Even it enlarges to the risk to which the whole organization is exposed. Profitability falls, liquidity dries up, solvency vanishes, mismatch in assets and liabilities creeps in. Eventually the organization goes sick. It is the social liability and it affects adversely all the stake holders in the organization.

Over allocation or under allocation are the other forms of misallocation of funds having lots of dangers as well. Over allocation leads to wastage and ideal capacity whereas under allocation brings less returns on investment and gives opportunities to the competitors.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the dangers of misallocation of funds?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What are the most common types of investment fund by Brightbridge Wealth Management?

money-market funds balanced funds index funds pure bond funds bond/income funds tax-free bond funds junk/high-yield bond funds pure stock funds aggressive growth funds growth funds sector funds small cap stock funds mid cap, large cap international funds


What are some of the dangers of credit cards?

the dangers of credit cards?


Name different categories of funds?

Some fund categories are: * Equity funds * Debt funds * Hedge funds * Fund of funds etc...


How many types of mutual funds?

In India, there are at least 18 types of Mutual Funds that are available for investment. They are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Equity Technology Funds (IT) 8. Arbitrage Funds 9. Equity Index Funds 10. Balanced Funds 11. Monthly Income Plans 12. Debt Funds 13. Liquid Funds 14. Income Funds 15. GILT Funds 16. Gold ETFs 17. Fund of Funds - Equity Oriented 18. Fund of Funds - Debt Oriented


How many types of funds in markets?

Currently in India, they are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Equity Technology Funds (IT) 8. Arbitrage Funds 9. Equity Index Funds 10. Balanced Funds 11. Monthly Income Plans 12. Debt Funds 13. Liquid Funds 14. Income Funds 15. GILT Funds 16. Gold ETFs 17. Fund of Funds - Equity Oriented 18. Fund of Funds - Debt Oriented

Related questions

What are some dangers of investing in money market mutual funds?

Money invested in money market mutual funds may not earn enough to keep up with the level of inflation. They are not usually government insured which means there is an element of risk.


What are the dangers of silicon?

There are no dangers!!


Are snakes dangers to humans?

some of them dangers


How do fund of funds classify?

Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...


What types of functions are available at american funds?

American Funds offer a wide array of mutual funds. They offer growth funds, growth-and-income funds, equity-income funds, balanced funds, bond funds, tax-exempt bond funds, money market funds, and target date funds.


What is the dangers of the tunra biome?

the tundra biome dangers


What are dangers to grasslands?

Dangers could potentially be fires


What are the dangers of overeating?

the dangers of overeating are diabetes, hypertesion.


What are the dangers of running away?

what are the dangers of running away


What are the dangers and hazards in the alps?

What are the dangers in the rockie mountains?


What are the dangers in Denmark?

the dangers in denmark are ki guage


Why might a government intervene in the market economy?

Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.