Business Failure

• what is business failure?

  the inability of a business to continue to operate due to financial or non financial factors
• what is overtrading?

  when a business does not have enough cash to support its production and sales as they produced lots of goods and have not sold enough to get the money back.
• what are internal causes of business failure?

  • failing to understand the market
  • poor planning
  • poor desicion making
  • badly organised
  • bad idea of product
  • overtrading
• what are external causes of business failure?

  • economic enviroment
  • laws
  • political enviroment
  • changing social trends
  • demographic changes
• what are financial causes of business failure?

  • poor management of cash flow
  • inadequate or inappropriate financing
• what are non-financial causes of business failure?

  • lack of management control
  • significant external shocks