What are the causes of business bankruptcy?

[Suba]

Bankruptcy can not only happen to small companies that have just been established but can also happen to large companies that have been operating for a long time. No businessman wants to go bankrupt, so business people not only think about business plans but also need to study the factors that cause businesses to go bankrupt, so that business people can prevent this by taking efficient steps according to the factors that cause bankruptcy. So in your opinion, what are the factors that can cause a business to go bankrupt?

 

[King Belieal]

For an established business, the major reason why it would ever go bankrupt is that it has been financially mismanaged. And with that, the leaders of the business would have to answer questions.

 

[Suba]

Many factors can cause a business to go bankrupt, one of which is poor management, managerial or decision makers are incompetent or are not experts in their field resulting in ineffectiveness in preparing plans, strategies, etc.

 

[Starmix]

One factor is misusing the proceeds from the busines. The business owner might have used the money from the sales for his personal or family needs without returning back the money, so the capital will be used up.

 

[Suba]

One factor is misusing the proceeds from the busines. The business owner might have used the money from the sales for his personal or family needs without returning back the money, so the capital will be used up.

Withdrawal of private money also often occurs in individual businesses, this means that business people are not smart in managing business finances. Even though they can make big profits, capital will always decrease.

 

[magnus2022]

Nothing kills a business like poor management and financial mismanagement. Another factor that can make a business to be bankrupt is poor sales. These are three things that can likely make a business to go bankrupt.

 

[Augusta]

When a business runs out of funds to manage or continue a business it would definitely ends in bankruptcy which would collapse the business