The two common pitfalls of poor financial control are undercapitalization and lax customer credit policies.

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Undercapitalization occurs when a company does not have enough funding to meet its financial obligations, while lax customer credit policies can result in a company extending too much credit to customers who are unlikely to pay their bills, leading to cash flow problems. These are both common pitfalls of poor financial control.

The Two Common Pitfalls of Poor Financial Control Are Undercapitalization