Describe the Small Business Failure Rate

question 101

Essay

Describe the small business failure rate. What are the primary causes of business failures, and what steps can an entrepreneur take to avoid becoming a business failure statistic?

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Definitions:

Cash Receipts

The money received by a business during a specified period, including revenue from sales, loan proceeds, and investment income.

Cash Disbursements

Outflows of cash for expenses, assets, or other types of payments.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Merchandise Inventory

The total value of all merchandise that a retailer, wholesaler, or distributor has on hand that is available for sale.