Business Failure

Another name for a business not having enough funds

• Business Loan

• Financial Accounting

• Undercapitalisation

• Liquidation

Which of the following is a type of business failure

• Voluntary Cessation

• Partnership

• Bankruptcy Order

• Realisation

When a business is forced to stop trading by creditors

• Bankruptcy

• Voluntary Cessation

• Liquidation

• Involuntary Cessation

Is when a business is declared unable to pay their debts

• Voluntary Administration

• Bankruptcy

• Voluntary Cessation

• Business Closure

The process of converting a business's assets into cash

• Realisation

• Voluntary Administration

• Bankruptcy order

• Cessation

Is the process of bringing a business to an end and distributing its assets to claimants.

• Realisation

• Cessation

• Liquidation

• Administration

An independent administrator is appointed to operate a business in the hope of trading out of its present financial problems

• Bankruptcy

• Voluntary Cessation

• Liquidation

• Voluntary Administration

When a business fails to prepare a business plan or modify an existing plan.

• Lack of Management Expertise

• Lack of Marketing

• Lack of Asset Management

• Lack of Sufficient Funds

Lack of Management Expertise is evident when the business

• Spends too much money on marketing

• Fails to prepare a business plan

• Employs too many workers

• Does not spend enough time in the business

Only businesses who sell products can fail.

• True

• False