IGCSE, A Level Business Student Forum

Posted: **Mon Nov 06, 2023 9:46 pm**

(KN) Cash Flow Constraints
(AN) Liquidity issues can result in cash flow constraints, making it challenging for a business to meet its short-term obligations such as paying suppliers, employees, and covering operational expenses.
(AN+) Insufficient cash flow can lead to financial distress, hinder growth initiatives, and ultimately result in business failure.

(KN) Overextension of Resources
(AN) Over-expansion can strain a business's resources, including capital, manpower, and infrastructure. This can lead to operational inefficiencies
(AN+) Proper resource planning and phased expansion strategies are essential to manage resources effectively and prevent overextension.

Posted: **Mon Nov 06, 2023 10:29 pm**

Kn] uncertain quality
[An]when a business experience shortage of cash and cant fulfill its expenses it may effect the quality of the product .
[An+] which will leads to reduction in customer satisfaction and loyalty hence deteriorate brande image

[Kn]cant adapt the changes in the demand more rapidly
[An] due to shortage of cash business is unable to adapt the changes more swiftly which will lower the consumer base as people have converted it self to the new trend
[An+] hence deteriorating brand image as there product will be outdated

Posted: **Wed Nov 08, 2023 5:08 pm**

Abbas17 wrote: ↑Mon Nov 06, 2023 9:46 pm (KN) Cash Flow Constraints
(AN) Liquidity issues can result in cash flow constraints, making it challenging for a business to meet its short-term obligations such as paying suppliers, employees, and covering operational expenses.
(AN+) Insufficient cash flow can lead to financial distress, hinder growth initiatives, and ultimately result in business failure.

(KN) Overextension of Resources
(AN) Over-expansion can strain a business's resources, including capital, manpower, and infrastructure. This can lead to operational inefficiencies
(AN+) Proper resource planning and phased expansion strategies are essential to manage resources effectively and prevent overextension.

please stop copying, im begging u

Posted: **Sun Nov 12, 2023 9:55 pm**

[KN]Inability to Cover Operating Expenses
[AN] it may struggle to pay day-to-day operational expenses, such as rent
[AN+] This can disrupt normal business operations and lead to a decline in product or service quality

[KN]mismanagement
[AN]Rapid expansion can strain the management team's ability to oversee and control the business
[AN+] leading to poor decision making

IGCSE, A Level Business Student Forum

27 Analyse how liquidity issues & over expansion can lead towards a business failure. [6]

Re: 27 Analyse how liquidity issues & over expansion can lead towards a business failure. [6]

Re: 27 Analyse how liquidity issues & over expansion can lead towards a business failure. [6]

Re: 27 Analyse how liquidity issues & over expansion can lead towards a business failure. [6]

Re: 27 Analyse how liquidity issues & over expansion can lead towards a business failure. [6]