11 - Business failure

Question 1

external reasons for business failure

Answer 1

competition
legilsation
market conditions
ecenomic conditions

Question 2

internal reasons for business failure

Answer 2

poor planning
cash flow issues
lack of skills
marketing

Question 3

causes of cash flow problems

Answer 3

overtrading
allowing too much trade credit
poor cash flow managment
unforseen costs

Question 4

external factors for failure: comepititon

Answer 4

a new comepititors or overcorwded market can lead to shortages in demand

Question 5

external factors for failure: legilsation

Answer 5

can mean increased costs

Question 6

external factors for failure: market conditions

Answer 6

fro example changes in consumer tates or comodity price

Question 7

internal factors of business failure: poor planning

Answer 7

poor marketing or cash flow problems ect

Question 8

internal factors of business failure: lack of skills

Answer 8

such as technical skills of financial managment, leadership ect