cat 2

• acid test formula

  (current assets - inventory) / liabilities
• why is the acid test ratio important

  it measures a company's ability to pay short term liabilities, without relying on inventory
• 4 internal causes of business failure

  poor marketing, poor cash flow management, poor planning, poor management, failure to innovate,
• external causes of business failure

  lack of market research, competitors, interest rate changes, technological advancements