Q. Consider the below mentioned statements: 1. A company is considered to be overcapitalised when its actual capitalisation is lower than the proper capitalisation as warranted by the earning capacity 2. Both over-capitalisation and under-capitalisation are detrimental to the interests of the society. State True or False: (Solved)

1. 1-True, 2-True

2. 1-False, 2-True

3. 1-False, 2-False

4. 1-True, 2-False

  • b. 1-False, 2-True
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