Other causes of business bankruptcy and liquidation, aside from for poor business bookkeeping.

[TOZZIBLINKZ]

We are all familiar with the fact that if business whether it is in large-scale or small-scale does not practice the business activity of bookkeeping such business is more likely consider to go bankrupt and liquidate one time or the other . But is that the only thing that lead to business liquidation and bankruptcy , absolutely not , there are other factors that could make a business goal liquidated or bankrupt even though the business practice bookkeeping that is why it is advised for a business owner to always be alert and smart why carrying out business activities . A business owner is advised not to regulate even the smallest sign of his business negativity , because such sign could accumulate and as time goes on could become unattainable and irreparable .

Factors like unforeseen disaster like criminal attack in the business organisation could make a business lose its assets and funds , thereby going bankrupt and liquidating . That is why it is advised for a business to be high securely based so as to protect its assets and properties from crime indulgers . Lack of key hardworking and industrious business employees and staffs , is considered to be another factor that could lead a business into the path of bankruptcy and liquidation . it is advised to make your employees stay motivated and ready to handle any assigned tasks and duties that is been assigned to them so as to reach and accomplish business goals and objectives . As an employers you must make sure to employ the best employees , and in the course of employment do not only be concerned about their CV's rather focus on their ability to work and also their creativity to handle matters .

 

[Jasz]

There are many causes of business bankruptcy and liquidation, aside from for poor business bookkeeping.

These include:

-Fraudulent activity. This is when the owner of a company is doing something illegal with the business, such as selling drugs or laundering money.

-Poor management. This is when the owners or management of a company are making poor decisions and mismanaging resources, which usually results in poor sales, overspending, and more.

-Lack of sales. When a business has trouble selling its products or services, it can't make enough money to pay its bills or buy more inventory.

-Inability to manage cash flow. This is when the business doesn't have enough money coming in at any given time to pay its bills and other expenses like rent or payroll without going into debt.

-Changes in technology that make your product obsolete or less effective than competitors' products (for example: Kodak & digital cameras).

 

[Abigael]

This is very true. So many other things can cause bankruptcy apart from poor bookkeeping. Emergencies are so real when it comes to businesses. They come in form of natural disasters, attack by robbers or the death of the business owner. That is why it is very important that a business is well insured so as to get help when such emergencies occur.

Another thing that could lead to bankruptcy is the availability of incompetent employees. Especially those who deal with finances. When finances are not spent well in a business, it could go bankrupt soon. It is important for businesses to hire very competent accountants and other employees.

Business could also go bankrupt due to conflicts among business owners. Especially if the business is family owned. You will see that so many of those family businesses go bankrupt when they start quarreling about things concerning the business. Even if the business is not family owned, any conflicts in the top tier members of the business is not good.

Lastly, competition can ruin a business. It is so hard to strive through competition when the other business has come up with strategies that seem much more attractive to the buyer. The business will just end up loosing many customers.