👉 Overcapitalisation refers to an excessive reliance on external capital, such as debt or equity, without adequate internal resources and management capability. This can lead to a high level of risk and potentially poor performance. In business and finance terms, it involves using more money than is necessary for the purpose of production or operation, which can result in higher costs, slower growth, and reduced profitability. Overcapitalisation can also be seen as an ethical issue, as it may undermine the value of a company's assets
