What are the major causes of business failure?

Jump to Solution
Category:

What are the major causes of business failure?

0
0

What are the major causes of business failure?

Explanation & AnswerSolution by a verified expert

Explanation

Economic and financial factors or a combination of both factors cause a decline in the present value of future cash flows, leading to business failures. The economic factors include industry trends, company-specific problems, changes in consumer preferences, and technology change. The financial factors include a high percentage of debt in the capital structure or changes in interest rates.

Verified Answer

Business failure occurs due to a decline in the present value of future cash flows caused by economic and financial factors or a combination of both factors.

Purchase this answer to view it. $5
Login/Sign up for free, load your wallet instantly using PayPal or cards and purchase this solution to view it.

Looking for the solution to this or another homework question?

If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.