2.3.3. Business Failure

Question 1

Internal causes of failure

Answer 1

1.Marketing failure- difficulties understanding changed in market place or what customers looking for.
2.Financial failure- inefficient planning
3. Systems or operations failure

Question 2

External causes of business failure

Answer 2

1.Changes in technology
2.New competitors- innovation
3. Economic changes
4. Behaviour of banks-Banks fund long term investments aimed to raise competitiveness or short term finance to help working capital m.