Business Studies - 0450 CIE

Why Some (new Or Established) Businesses Fail:

Akopọ

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.

Awọn Afojusun

  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

Akọ̀wé Ẹ̀kọ́

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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Ìdánwò Ẹ̀kọ́

Oriire fun ipari ẹkọ lori Why Some (new Or Established) Businesses Fail:. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.

Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.

Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.

  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

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

Ṣe Adaṣe Awọn Ibeere Idanwo Adaṣe

Ṣe o fẹ ṣe adaṣe awọn ibeere idanwo adaṣe nipa Why Some (new Or Established) Businesses Fail:? Ṣe igbasilẹ ohun elo Green Bridge CBT lati wọle si awọn ibeere idanwo adaṣe ati awọn ayẹwo adaṣe kikun fun koko-ọrọ yii.

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