2.3.3 business failure

Question 1

what are some internal factors of business failure?

Answer 1

• poor planning
• lack of experience
• poor marketing/ advertising
• lack of skills
• poor decision making

Question 2

what are some external factors of business failure?

Answer 2

• competition
• economic factors
• market conditions
• legislation
• demographic changes

Question 3

what are some financial causes of business failure?

Answer 3

• poor management of cash flow
• lack of financial awareness
• overtrading
• inability to pay bills

Question 4

what are some non-financial causes for business failure?

Answer 4

• poor leadership skills
• bad customer experiences
• unmotivated staff
• poor IT

Question 5

what are some causes of cash flow problems?

Answer 5

• poor credit control
• unforeseen costs
• inaccurate cash flow management
• overtrading