Consider the below mentioned statements: 1. A company is considered to be overcapitalised when its actual capitalisation is lower than the proper capitalisation as warranted by the earning capacity 2. Both over-capitalisation and under-capitalisation are detrimental to the interests of the society. State True or False:

Consider the below mentioned statements: 1. A company is considered to

1.	Consider the below mentioned statements: 1. A company is considered to be overcapitalised when its actual capitalisation is lower than the proper capitalisation as warranted by the earning capacity 2. Both over-capitalisation and under-capitalisation are detrimental to the interests of the society. State True or False:
A.	1-True, 2-True
B.	1-False, 2-True
C.	1-False, 2-False
D.	1-True, 2-False
Answer» C. 1-False, 2-False