overcapitalization

Example:The company is now overcapitalized and finds it difficult to generate a profit.

Definition:Describing a business or asset that has been assigned more capital than is reasonable or necessary.

Example:Investors should carefully assess the overcapitalization risk before investing in the company.

Definition:The risk associated with having too much capital invested in a business, which can decrease operational efficiency and increase financial instability.

Example:The overcapitalization of labor might result in increased unemployment and underutilization of human resources.

Definition:The situation where there is an excess of labor relative to the capital and other resources available to use it, leading to inefficiencies and potential job losses.