Quiz on Causes of Business Failure

What is one primary reason why businesses fail?

• High employee turnover

• Poor planning and lack of objectives

• Excessive marketing

• Strong competition

Which factor can lead to liquidity problems in a business?

• Strong brand loyalty

• Effective marketing strategies

• Poor management of cash flow

• High customer satisfaction

What is a common issue for new business owners?

• Overly detailed business plans

• Strong competition

• Lack of management skills and experience

• Excessive funding

Why is investing in new technologies important for businesses?

• To increase employee satisfaction

• To reduce operational costs

• To expand the workforce

• To compete in price, design, and quality

What can be a consequence of poor marketing?

• Reduced business earnings

• Higher customer engagement

• Improved brand recognition

• Increased sales

How does globalization affect businesses?

• Increases access to wider markets

• Limits business opportunities

• Decreases product quality

• Reduces competition

What is a critical aspect of a business location?

• It should be in a rural area

• It should have high rent

• It should be close to the market

• It should be far from competitors

What economic influences can lead to business failure?

• Strong economic growth

• Increased consumer spending

• High unemployment and taxation

• Low interest rates

What is essential for new businesses to identify market potential?

• Large product inventory

• Strong social media presence

• Market research

• High advertising budgets

What can happen if a business does not manage cash flow effectively?

• Liquidity problems

• Expansion opportunities

• Higher customer satisfaction

• Increased profits