Here are reasons why there is financial instability. It could be mismanagement and fraud incompetent or fraudulent management practices, such as embezzlement, misappropriation of funds, or accounting irregularities. It is important to note that the act could also lead to bankruptcy. It is not good for the business owner to do fraudulent activities like overpricing to innocent buyers or releasing goods in inaccurate measurement or weight. This leads to a failed trust and respect. The customers will gradually leave the business center.
Unstable finances in business
- Thread starter Starmix
- Start date
Mismanagement is usually an issue when it comes to reasons why there is financial instability. A business could have thousands of dollars to its name, but once there is mismanagement, it can easily and quickly destroy the business.
- Thread starter
- #3
If a business doesn't gain that means the owner failed to plan. Right planning is one way to establish financial stability. Instability of finances also happens if there's mismanagement of the business, a business owner wasteful.
In some countries corruption and nepotism leads to business losses. For example powerful government employees are falsely claiming that their girlfriends who do not want to open their own bank account, own the bank account, business of a older single woman who the government employees hate, criminally defame. This persecution of liar top government employees is causing losses.
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- #6
There will be unstable finances if the business owner does not dedicate his life to his business. A business needs care, it also needs innovation and inventory to know the strengths and weaknesses of the business.
