Question
What is business failure?

Answer

Business failure refers to a firm or business enterprise ceases its operations due to inability to make a profit or to bring in sufficient revenue to cover its expenses. The hidden and open reason for tbusiness failure is failure of the firm to generate adequate cash flow o meet its expenses.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

On the basis of duration, classify the sources of finance.
Explain in brief the factors which are responsible for 90% of the business failures.
One of primary activity is related with distribution of goods. Which one is it?
Give four names of supportive agencies who extend financial support, expertise and training to the Entrepreneurs.
Answer each of these questions in about one hundred and fifty words:
Explain the importance of Stock Exchange from the viewpoint of society.
Rohit is working on designing of a unique face mask which would not only filter the air inhaled but also send alert messages on the registered mobile number if the user is in a zone of high pollution. This idea is germinated because of the interest and curiosity of Rohit as he is always interested in finding out the specific current problems and their solutions. Before launching his idea he also analysed the pros and cons of the product. Now he has to complete two more steps of an important process.
Identify the process. Explain the steps to be completed by Rohit in the process identified.
Divij has opened a restaurant which serves Chinese food. His fixed expenses per month are ₹ 20,000. During the month of August, his total sales revenue was also ₹ 20,000. Divij thinks that he has achieved the break-even level. Is he correct in his approach?
'Everyone wins something' is the highlight of which method of negotiation? Explain the method in brief.
Why capital markets are the most O important source of raising finance for the entrepreneurs?
What is financial management? What is the main objective of financial management?