KT25: 2.3.3 Business failure

Question 1

administration

Answer 1

when the directors of a business feel forced by the threat of insolvency to hand over management control to an administrator (usually an accountant), who may try and sell the business, or perhaps close it down and sell off the assets

Question 2

Business model

Answer 2

the underlying plan of how the business is going to make profit in the long term