ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

Detailed explanation-2: -Generally, investors will lose all of their money, unless a small portion of their investment is redeemed through the sale of any company assets.

Detailed explanation-3: -According to a U.S. Bank study, 82 percent of business failures are due to poor cash flow management, or poor understanding of how cash flow contributes to business. Cash flow is critical, because it’s the lifeblood of your business.

Detailed explanation-4: -The difference between business success and failure is the way in which owners plan, organize, manage and monitor their businesses, as well as how they handle the risks they face. Sometimes that means you have to search for solutions to those problems that you will most definitely encounter.