36 Business failure Flashcards
1
Q
Define business failure
A
business failure can be due to internal causes which may be controllable and external causes which may not be controlled.
2
Q
Define overtrading
A
overtrading is a situation where a business does not have enough cash to support its production and sales, usually because it is growing too fast.
3
Q
State internal causes
A
- poor inventory control
- poor quality
- poor marketing
- poor quality control
- poor management of cash
- overestimating sales
- overtrading
4
Q
State external causes
A
- market conditions
- competition
- economic
- exchange rates
- interest rates
- government regulations
- supplier problems
- natural phenomenas
