2.3.3 Business failure

Question 1

4 internal factors that lead to business failure?

Answer 1

management vision
finance
marketing
expansion

Question 2

How was management lead to BF?

Answer 2

fast changing market - strategy needs to be right to compete

Question 3

How was finance lead to BF?

Answer 3

Not having sufficient liquidity and lack of financial planning

Question 4

How was marketing lead to BF?

Answer 4

if rivals come up with better product

Question 5

How was expansion lead to BF?

Answer 5

into overseas market - not enough support or research done

Question 6

6 external factors leading to business failure?

Answer 6

market changes
competition
financial crisis 
economic factors 
exchange rates 
government regulations

Question 7

How does market changes lead to BF?

Answer 7

demand + supply may change

Question 8

How does government regulations lead to BF?

Answer 8

laws and taxes constantly changing

Question 9

How does economic factors lead to BF?

Answer 9

inflation

and survival

Question 10

How does financial crisis lead to BF?

Answer 10

finance is hard to obtain from banks

Question 11

How does competition lead to BF?

Answer 11

need to keep up with rivals

Question 12

How does exchange rates lead to BF?

Answer 12

fluctuating rates affect firms