Business bankruptcy and liquidation and ways it could be avoided.

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The business terms insolvency , liquidation , and bankruptcy actually have no difference to some individuals and company , because they simply means the inability for an individual or a company or possibly a business commercial organisation and firm to pay a debt or to lose it current and fixed assets possibly as a result of wrong business funds allocation or not being able to engage in the frequent checking and analyzation of the business accounting books of for proper decision making at due time . It is never a prospect or a goal for a business owner to see his business establishments to go bankrupt , liquidated , or insolvent . So having in mind that business liquidation and insolvency is actually not a good thing for businesses , so if I may ask what then are the ways these negative repercussions could be avoided .

First and foremost , you must be ever ready and able to pay your business debts immediately when they are due , because accumulated business debts is one of the things that have made most businesses today to go bankrupt and insolvent . Secondly you must make sure to practice the act of giving good and proper business decisions and one of the way to make benefiting decisions towards your business is by effectively and accurately practicing the business activity of bookkeeping . It is important that all the figures and numbers recorded in the business books of account must be accurately and visibly written or printed , so that at the end of the week , year , or month , they could be evaluated and analyzed , so as to know the business profits and losses . And also to know areas the business have improved and other areas the need to work on .