36. Business failure Flashcards
1
Q
Internal causes of business failure:
A
- Poor management of cash
- Overestimating sales
- Overtrading
- Poor marketing
- Poor quality
2
Q
External causes of business failure:
A
- Market confitions
- Competition
- Economic
- Exchange rates
- Interest rates
- Governement regulations
- Supplier problems
- Natural phenomena
3
Q
Administration
A
Where a failing business appoints a specialist to rescue the business or wind it up
4
Q
bushel
A
customary unit of weight or mass. Historically equal to 8 gallons (35 litres). Modern use: equal to a mass defined differently for each commodity.
5
Q
External factors
A
Factors beyond the control of businesses, which can cause collapse
6
Q
Overtrading
A
A situation where a business does not have enough cash to support its production and sales, usually because it is growing too fast
