2.3.3 Business Failure

• Internal Causes of Business Failure


  -Marketing failure

  -Poor management of cash flow

  -IT system failure
• External Causes of Business Failure


  -Change in technology eg. Apple v Nokia

  -Arrival of a superior competitor

  -Economic change

  -Behaviour of banks

  -Government policies
• Financial Causes of Business Failure


  -Not breaking even

  -Cash flow crisis

  -Overtrading

  -Borrowing from expensive sources