Business Studies - 0450 CIE

Why Some (new Or Established) Businesses Fail:

Muhtasari

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.

Malengo

  1. Causes of business failure, e.g. lack of management skills, changes in the business environment, liquidity problems
  2. Why new businesses are at a greater risk of failing

Maelezo ya Somo

Not every business succeeds. Knowing the common reasons for failure helps owners avoid the same mistakes, helps banks and investors judge the risk of lending, and helps you in the exam, where data-response questions often describe a struggling firm and ask you to explain why it is in trouble. The causes below recur again and again across the whole syllabus.

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Tathmini ya Somo

Hongera kwa kukamilisha somo la Why Some (new Or Established) Businesses Fail:. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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

Inapatikana kwenye programu ya Green Bridge

Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.

Maelezo kamili ya masomo yenye michoro
Msaidizi wa kujifunza wa AI
Soma bila mtandao, wakati wowote, mahali popote
Inapatikana kwa Android, Windows, macOS, na Linux

Inapatikana kwenye programu ya Green Bridge

Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.

Maelezo kamili ya masomo yenye michoro
Msaidizi wa kujifunza wa AI
Soma bila mtandao, wakati wowote, mahali popote
Inapatikana kwa Android, Windows, macOS, na Linux

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