Financial Hardship
Situation where business has insufficient funds to meet obligations.
Real World
Wilko, the UK retailer, entered administration in 2023 after years of falling profits, rising supplier costs, and an inability to refinance its debt — a textbook case of financial hardship escalating to insolvency.
Exam Focus
Always state a specific cause and a consequence when answering 'explain' questions — cause alone scores only one mark.
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