Why Some (new Or Established) Businesses Fail:
Bayani Gaba-gaba
Starting a business is exciting, but the figures are sobering: in some countries more than half of all new businesses close within five years. Even long-established firms can disappear when they run out of cash or fail to keep up with change. Understanding why businesses fail is one of the most practical things you can learn, because the same lessons show owners how to survive.
In this lesson you will work through the main causes of business failure, from poor management and cash shortages to changes in the business environment, and then see clearly why brand-new businesses carry the greatest risk of all. By the end you should be able to diagnose why a business in a case study is struggling and suggest how it could reduce the danger.
Manufura
- Causes of business failure, e.g. lack of management skills, changes in the business environment, liquidity problems
- Why new businesses are at a greater risk of failing
Takardar Darasi
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Nazarin Darasi
Barka da kammala darasi akan Why Some (new Or Established) Businesses Fail:. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.
Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.
Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.
- Which of these is a liquidity problem? A. the business makes a small profit B. the business cannot pay its suppliers because it has no cash C. the business has too many customers D. the business owns a new factory Answer: B
- New businesses are at greater risk of failing mainly because they: A. always sell luxury goods B. lack experience, finance and a track record C. pay no taxes D. have too many managers Answer: B
- A firm grows too quickly, cannot manage all its new branches and collapses. This is failure through: A. privatisation B. over-expansion C. market research D. delegation Answer: B
- Which is most likely to cause an established business to fail? A. keeping good records B. a major change in technology it ignores C. training its staff D. forecasting cash flow Answer: B
- A profitable business runs out of cash to pay wages. The immediate cause of failure is: A. high profit B. lack of liquidity C. low taxes D. strong demand Answer: B
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