BUSINESS TURNOVER

Question 1

What is Liquidation?

Answer 1

Liquidation is a practice of closing a business.
It is the process of disposing of all assets to pay off business liabilities.
This is a common practice where business liabilities over run its assets and is unable to pay its debts.

Question 2

What are the 7 steps to business turnover?

Answer 2

1. Diagonisis - an evaluation of the situation to understand the extent of failure.
2. Intervention - a decision has to be made on the outcome of the diagnosis.
3. Stabilizing the venture - once it’s certain that a turnover is inevitable, it should be done fast.
4. Strategic analysis - focuses on the sales and positioning aspects of the venture.
5. Identification of the core issue
6. Restructure decision
7. Action

Question 3

Name the 5 restructuring principles

Answer 3

1. Management focus
2. Cost and cash
3. Focusing on the core business
4. Strategy
5. Time factor

Question 4

Options rather than turnover?

Answer 4

1. Harvesting
2. Divestment alternative, happens when you can not turnover or harvest

Question 5

What is failure in business?

Answer 5

Failure is when the goals of the entrepreneur, financial goals of the venture and the strategic goals of the venture are not fulfilled.