Overtrading is when the business is trading at a level that cannot sustain profitability.

Name: Overtrading is when the business is trading at a level that cannot sustain profitability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Overtrading refers to a situation where a business expands its operations or takes on orders at a pace that exceeds its financial and operational capacity, often leading to cash flow problems, rather than directly to unsustainable profitability.

Overtrading Is When the Business Is Trading at a Level