What are the causes of bankruptcy in business

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Deleted member 28873

Guest
Plagiarism warning
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.
 

Setfragil

Member
The most causes of bankruptcy of a business is mostly caused by lack of discipline. When a business manager is not well discipline in managing a business it will likely go bankrupt. A business can go bankruptcy if the manager is not a good planner or as a poor business planning skills and when there are so many debtors the owing the business, it can run the business down in no time.
 

Shigobad2020

Active member
The first causes of bankruptcy in business is when the business is not gaining from the business ( not yielding any profit) , second one is where there is misnanagement of fund i.e when money meant for business is been diverted to something else, and if they now borrowed and cannot later pay, the business will go bankruptcy.
 

Samuel72

Verified member
According to my point of view as a well experienced business man I will say bankrupt can be caused by reckless spending, it can also be caused by lack of risk management and also not having a good idea about the business that you are venturing into, this can easily cost bankrupt in your business in as much as you really want to go into a business you need to learn well and also employ a good experience stuff that can help you manage your organisation very well
 

Josemendez

Verified member
When it comes to bankruptcy in business , there are many factors that contribute to it . Having a business plan is not enough if there is no good financial strategy to back up the plan .
Also , eating from the profit when the business is still struggling can be discouraging.
 

Succjay

New member
It is very necessary to draw a business plan before venturing into business. The area of finance is very necessary to be looked into because when once there is a mistake there the company starts running at loss, if there is no good management it leads to business bankruptcy.
 

Adetayo100

Active member
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, another reason for bankruptcy is that companies or businesses tend to overspend on there resources which leads to excessive borrowing and not able to pay back.
 

Augusta

VIP Contributor
Bankruptcy for me that with mismanagement of funds, when once this sets in, then the bank is on a verge of going bankrupt. This might be done either by the top officers or even the junior staff. But the fact remains that one will someone would have tempered with the money of the banka
 

Snazzy001

Member
bankruptcy in business is influenced by many factors and these factors are not far-fetched from addiction related factors .sometimes lack of planning and setting of priorities automatically can bring your business down and when you do lack the knowledge to manage business .
 

Hena101

Active member
Looking into this question we we will realized that there are many reasons for bankruptcy in any business we engaged or established. But the primary or real reason for bankruptcy in any business if i may say is lack of proper planning because whatever you didn't properly plan it is bound to fail. And this is what most of people in businesses don't take time to plan a head and this lead to the reason many are closed
 

Hena101

Active member
Looking into this question we we will realized that there are many reasons for bankruptcy in any business we engaged or established. But the primary or real reason for bankruptcy in any business if i may say is lack of proper planning because whatever you didn't properly plan it is bound to fail. And this is what most of people in businesses don't take time to plan a head and this lead to the reason many are closed
 

Doradorwa

Opportunity seeker
When there is no proper market survey then believe me there are much increased chances of bankruptcy... Some business are seasonal... They are not everyday market or business... Not cutting down of coat sometimes can also be a factor to consider plus spending from your business money on yourself without a proper way to refund it.
 

Haypril

Active member
Every business has a tendency of been bankrupt or closed down if the necessary criteria are not meet. And again, there are always a bad time in businesses that seems like the profit made is going back to the business itself. Other factors that might end up a business been bankrupt is when there is no better plan.
 
D

Deleted member 27126

Guest
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.
It's about companies spending more and saving less, automatically bankruptcy is close by the door. Savings is very important
 

springtech

Active member
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.
Every business is prone to bankruptcy, if business is not done as it should be. Business should not be mixed with pleasure.
Business is business, pleasure is pleasure , relationship is relationship. Business should not be mixed with any of these.
 

Chibson

VIP Contributor
There are so many things that causes bankruptcy business. it is very important that anyone who wants to go into any business should have a proper plan and also a back-up plan in case things goes wrong in the future. One of the major causes of bankruptcy in business is lack of proper plan and lack of financial backup.
 

marcusfe

Active member
The major cause of bankruptcy in business is lack of financial management. I wonder how someone who cannot manage the least amount in his hand is doing in business. Business requires a vast knowledge in business management. Many people just know that people are setting up business but never ask how and go ahead to start their own. Such a business in a matter of time may likely collapse.
 
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