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4. Define business failure SolutionAnswersBusiness failure .pdf

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4. Define business failure Solution Answers Business failure refers to closure or cessation of business activity that results in a loss to its creditors. Firm that stops working due to lack of sales or profit, or retirement or deathof its principal without leaving any liailities is not classified as a failure. In other words, it is a situation in which a company or other business ceases operations because it is unable to generate sufficent revenue to cover its expenses. For example, if a company is unable to service debt it may file for bankruptcy andstop operating. Business failure is relatively common in the first year or so of operations because the owner is unable to compete for any number of reasons. Some of the common reasons business fail are as follow :-.

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4. Define business failure Solution Answers Business failure refers to closure or cessation of business activity that results in a loss to its creditors. Firm that stops working due to lack of sales or profit, or retirement or deathof its principal without leaving any liailities is not classified as a failure. In other words, it is a situation in which a company or other business ceases operations because it is unable to generate sufficent revenue to cover its expenses. For example, if a company is unable to service debt it may file for bankruptcy andstop operating. Business failure is relatively common in the first year or so of operations because the owner is unable to compete for any number of reasons. Some of the common reasons business fail are as follow :-

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  • 1. 4. Define business failure Solution Answers Business failure refers to closure or cessation of business activity that results in a loss to its creditors. Firm that stops working due to lack of sales or profit, or retirement or deathof its principal without leaving any liailities is not classified as a failure. In other words, it is a situation in which a company or other business ceases operations because it is unable to generate sufficent revenue to cover its expenses. For example, if a company is unable to service debt it may file for bankruptcy andstop operating. Business failure is relatively common in the first year or so of operations because the owner is unable to compete for any number of reasons. Some of the common reasons business fail are as follow :-