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Under-capitalization refers to any situation where a business cannot acquire the funds they need. An under-capitalized business may be one that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy, may be one that is over-exposed to risk, or may be one that is financially sound but does not have the funds required to expand to meet market demand. ==Causes of under-capitalization== Under-capitalization is often a result of improper financial planning. However, a viable business may have difficulty raising sufficient capital during an economic downturn or in a country that imposes artificial constraints on capital investment. There are several different causes of undercapitalization,〔Levinson, David (1998). ''Increase Your Cash Flow.'' San Francisco: T.B.G. Publishers〕 including: *Financing growth with short-term capital, rather than permanent capital *Failing to secure an adequate bank loan at a critical time *Failing to obtain insurance against predictable business risks *Adverse macroeconomic conditions Accountants can structure the financials in order to minimize profit, and thus taxes. As a business grows, this approach becomes counterproductive (Van Horn 2006). Frequently, a growing business will apply for a bank loan only to find their entire accounting system under review. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「undercapitalization」の詳細全文を読む スポンサード リンク
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