Business failure

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Business failure

A business that has terminated operations with a loss to creditors.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in classic literature ?
His telegraph was then, as it is to-day, a business failure. It was not earning its keep.
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.
More investment in the Insolvency Service is needed, as is reform of how rogue directors are reported, and unless the government is able to up its game, creditors - including small businesses and the taxman - will be exposed to people who are responsible for business failure after business failure.
For the UK the business insolvency rate has stayed at the relatively low level of 0.08% for the last four surveys - the first time since 2007 - suggesting a more stable trading environment and increased resilience to business failure.
Numerous business failure studies have been performed over time using traditional statistical techniques and financial ratios as input variables.
Keywords SMEs * Business failure * Reasons of failure * Symptoms of failure
"A Tale of Business Failure: A Successful Entrepreneur's Story of a Deal That Went Bad" is not your normal inspirational business tale.
It problems were also identified by 31% of respondents as the most common cause of total business failure.
Significant findings include: Construction companies have had the highest business failure rate of any other sector in the economy since 1988; Over 90% of New York construction companies employ less than 25 employees; Financially successful contractors in New York City tend to be union contractors.

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