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What Is Meant By Business Failure?

      

What Is Meant By Business Failure?

  

Answers


Faith
When a business fails most people say it is broke or it has gone bankrupt. However, these statements may mean several things so we may say a business fails when:-
(a) The firm goes out of business.
(b) The firm closes down. Here owners shut down their business willingly.
(c) The firm fails to meet its obligations:
i. Pay salaries
ii. Pay debts
iii. Pay expenses
iv. Make profits
These failures will be shown by the following:-
• High operating costs
• Falling profits
• Increasing debts
• High employee turnover
• Unserviced equipment
• Falling stocks
Titany answered the question on October 26, 2021 at 13:09


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