Business failure

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Business failure

A business that has terminated operations with a loss to creditors.

Business Failure

A situation in which a company or other business ceases operations because it is unable to generate sufficient revenue to cover its expenses. For example, if a company is unable to service debt it may file for bankruptcy and stop operating. Business failure is relatively common in the first year or so of operations because the owner is unable to compete for any number of reasons.
References in classic literature ?
His telegraph was then, as it is to-day, a business failure.
Raised in unrivalled prosperity, we inherit an economy that is still the world's strongest, but is weakened by business failures, stagnant wages, increasing inequality, and deep divisions among OUR OWN people.
THE business failure rate on Teesside is among the lowest in the country, according to a report published today.
The BDO report says: "A combination of factors including a weakening world economy, tougher international competition, high oil prices and decline in production are predicted to increase business failure rates in the manufacturing sector to 1,994 in 2008 from 1,887 in 2007.
Max Firth, managing director of Business Information Services at Experian UK & Ireland said: "With business failure rates and financial strength fluctuating across different regions and sectors, it is especially important that any organisation extending credit to or relying on other businesses for goods and services is able to understand the level of risk associated with their commercial partners.
Neil Munroe, Equifax's external affairs director, says he's not surprise by the huge annual jump in business failure rates: "At the beginning of last year we were only just starting to see the impact of the credit crunch and certainly the word 'recession' had not yet been uttered.
Yorkshire was the bestperforming region in the UK - while there were also big falls in business failure rates for Scotland, the South West, the North East and London.
Deteriorating economic conditions and changing attitudes me an a previous history of business failure is not automatically a black mark against an entrepreneur obtaining funding for a new business, according to the region's investment specialists.
AS economic turmoil continues to cause soaring levels of business failure across almost all industries, the region's digital sector could be set to weather the storm.
In this section we report the results of tests investigating the association between the implementation of the Tax Reform Act of 1986 and business failure momentum.
It could be that in lighter retail and leisure businesses there are more females at the top and the business failure rate in these sectors is higher.
Irving Grousbeck, a consulting professor of management at Stanford University Business School, explains it another way: "Blaming lack of capital for business failure is like saying a lot of people die of old age, when in most cases, people die of some disease.

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