From what I've seen, businesses often go bankrupt because of poor financial management, excessive debt, or it could be as a result of unexpected economic downturns. Give your opinion.
Why do businesses go bankrupts?
- Thread starter uptrendfinancialsignal
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- #3
To be honest, bankruptcy is caused by combination of certain factors like ineffective marketing strategies, huge competition, and lack of planning.
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- #5
I've come to realize that businesses may also go bankrupt if they fail to follow the legal requirement like the lawsuits or any kind of regulatory compliance.
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- #7
Sometimes, businesses go bankrupt when there is poor leadership decisions or when there is internal conflicts as well.
I have seen a lot of businesses go bankrupt when they fail to maintain their business model. Additionally, business would go bankrupt if it overlook cash flow management, or when they expand too quickly without having adequate resources.
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- #9
It's important to remember that when you seek professional advice and implementing a very good financial practices, it can go a long way to helping businesses avoid the risk of bankruptcy.
When businessman don't realized the reality and keep continue his blunders in business then sooner or later he bankrupt. The intelligent people observed the coming problems and close their business before reaching to that level.
