Business failure(2.3.3) Flashcards
(5 cards)
1
Q
What is business failure?
A
when a business is unable to continue its operations due to inability to make profit or cover expenses
2
Q
What are internal factors?
A
inside of a business they are in control
3
Q
What are external factors?
A
outside of a business they are not in control
4
Q
Internal business failures
A
cash flow problems
ineffective marketing strategies
inefficiency akin to high production costs
failure to innovate
5
Q
External business failures
A
changes in legislation
consumer taste begin to differ
increased competition within the market
economic conditions
