Definition of "undercapitalized"
  1. Refers to a situation where a business does not have sufficient funds to carry out its operations efficiently
How to use "undercapitalized" in a sentence
  1. Many startups fail within the first year because they are undercapitalized and cannot sustain their operations.
  2. The New Venture was undercapitalized; hence, they struggled to expand and meet the demands of their growing customer base.
  3. To avoid being undercapitalized, it's crucial for businesses to have an accurate projection of their initial costs and revenues.

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