What are the causes of bankruptcy in business

[Deleted member 28873]

lack of profitability is the primary reason for most bankruptcies, many underlying factors can inhibit a company's ability to make profit and lead to bankruptcy.small businesses vary greatly in terms of the types of products and services they provide, but all companies need to make sales and bring in revenue to survive. When companies are not profitable for extended periods, owners may be forced to go into bankruptcy to exit the market or reorganize the business. While lack of profitability is the primary reason for most bankruptcies, many underlying factors can inhibit a company's ability to make profit and lead to bankruptcy.

 

[Khezo]

You need a business plan in every business for you to be able to monitor your business and make the business to as you want it to your business plan has to be very effective if your business plan is faulty or your spending is more small tiny capital or return profit then your company is going to fall into bankruptcy that's the major cause of businesses going bankrupt.to avoid this you just have to make sure you have good plans for the business

 

[IamDozzy]

Failure to break even is one of the major causes of bankruptcy in business. Once a business cannot meet its business needs and does not have enough money to stay afloat, the business would be declared bankrupt and a new investor would buy out the business. Constant loss occurrence are some of the causes of business bankruptcy. Also if the business owner or manager cannot coordinate the resources of the business properly, it can result in the business going bankrupt.

 

[btaliat]

Lack of proper plan is usually one of the major causes of bankruptcy in business. When we fail to plan ahead to know what the company really needs and what the company wants, we may end up spending beyond our limits. Besides, diving into many ventures at a time without proper monitoring or reach of these ventures can also cause bankruptcy. And lastly, hiring too many staff than what the company can afford to pay.