Synopsis All business decisions are basically activated to achieve the goals of profitability, liquidity and growth. But these goals are not always mutually compatible and growing business, in particular, faces the problem of overtrading as their financial resources do not always expand in tune with their physical output. Growth is essential but the danger is that over—vigorous growth may bring financial distress if the company fails to generate sufficient cash flow in time. The woeful presence of such a problem has been experienced by many famous corporate bodies. Rolls-Royce Ltd. Also faced the problem of overtrading while launching a bug unsuccessful project. As a matter of fact, however, overtrading in any corporate business is not desirable as it spreads the germs of financial illness. Various aspects of overtrading in corporate business have been analysed in this book.