16. Explain one reason why a business might fail. [3]

[Aleezay Naseem]

Kn: limited knowledge of the market business operating in
An: without adequate market knowledge business will lack planning and will fail to find strategies to expand their customer base
An+ not being proactive can lead to further problems for businesses such as low revenue or business failure

[Syed Ammar Ali]

[Kn] Poor Management may lead to a business failure
[An] which means less engagement in the business or decreased productivity will lead to failure in the business
[An+] Less productivity will lead to a decrease in efficiency which will decrease the quality of product leading to decrease loyal customers

[zainabsahar]

(Kn) poor planning in joint ventures/projects
(An) A business may end accidentally overestimating its capabilities regarding activity and how it manages it. The business may be unable to handle operations efficiently and therefore have too many costs and overall inefficiency.
(An+) Hence the business may fail due to poor planning.

[IsmailMansur21]

[KN]: A business might fail due to high level of competition.
[AN]: The competitors may be experienced in the market and have gained access to economies of scale, which would enable them to sell at lower costs.
[AN+]: The customers would choose to buy from other businesses which have lower price, and this business would go into failure.

[Hamna Zia]

[KN]Poor financial management.
[AN] Insufficient cash flow management can lead to a situation where a business can not meet its short-term financial obligations, such as paying suppliers or employees etc.
[AN+]This can lead to damaged relationships with suppliers and employees, missed opportunities, and even bankruptcy.

[alihyderawan302]

KN.Lack of knowledge of the market
an; as the market will be dynamic some business might not have the knowledge when the market becomes dynamic
an+hence by this the sales might decrease as the business might sell outdated products as a result there will be no revenue generated

[Rehan_Gill]

[KN] A business might fail due to lack of management
[AN] it leads towards employees demotivation which will result in high labor turnover
[AN+] Business will start to face problems due to high labor turnover and the Business might collapse