2.3.3 business failure

Question 1

definition of internal factors of business failure

Answer 1

factors that a business is able to control that cause it to collapse

Question 2

definition of external factors of business failure

Answer 2

factors beyond the control of a business that cause it to collapse

Question 3

definition of financial factors of business failure

Answer 3

factors that are financial in nature e.g. overtrading, unforeseen expenditures, investing too much into fixed assets

Question 4

definition of non-financial factors of business failure

Answer 4

factors that are not financial in nature e.g. poor management, intense competition, failure to innovate