Negative working capital


 

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Negative working capital

Occurs when current liabilities exceed current assets, which can lead to bankruptcy.



Negative working capital

Similar Matches

Negative cash flow

Negative cash flow

Occurs when spending in a business is greater than earnings.


Negative externality

Negative externality

A harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality).


N Negative Amortization

N Negative Amortization

A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.


Negative covenant

Negative covenant

A bond covenant that limits or prohibits certain actions unless the bondholders agree.


Negative income tax

Negative income tax

A proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level.


Further Suggestions

Negative yield curve
negative equity
Negative convexity
Negative list
Negative duration
Negative amortization
Negative NPV tie in project
Negative pledge clause


 
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