Business Failure
When a business is unable to continue trading, typically because it cannot pay its debts (insolvency) or because it is n...
Real World
Wilko, the UK homeware retailer, collapsed in August 2023 after failing to secure emergency funding, leaving 12,000 jobs at risk — largely due to poor cash flow management and rising costs.
Exam Focus
Distinguish between insolvency (cannot pay debts) and poor profitability — examiners expect precise use of financial terminology when explaining failure causes.
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