Theme 2 Topic 14 - Business Failure

Question 1

What are four internal causes for business failure?

Answer 1

Poor cash flow management, Lack of effective market research, Lack of skills needed to run a business, Difficulties establishing a customer base

Question 2

What are four external causes for business failure?

Answer 2

The actions of bigger competitors, Changes in economy, Rising costs of raw materials/rent/energy, Government regulations