overcapitalization Definition
- 1the situation where a company has more capital than it needs to operate effectively
- 2the act of investing too much money in a business or project
Using overcapitalization: Examples
Take a moment to familiarize yourself with how "overcapitalization" can be used in various situations through the following examples!
Example
The company's overcapitalization led to a decrease in profits.
Example
Overcapitalization can lead to a lack of flexibility and inability to respond to market changes.
Example
The project failed due to overcapitalization and poor management.
overcapitalization Synonyms and Antonyms
Synonyms for overcapitalization
- overinvestment
- excessive capitalization
- overfunding
Summary: overcapitalization in Brief
'Overcapitalization' [oh-ver-kap-i-tl-uh-zey-shuhn] refers to the situation where a company has more capital than it needs to operate effectively, or the act of investing too much money in a business or project. This can lead to a lack of flexibility and inability to respond to market changes, as well as decreased profits. An example sentence is 'The project failed due to overcapitalization and poor management.'
