CAIE IGCSE Business Studies 1.3.4 business success and failure
Practise success-and-failure questions by applying risk factors to the case and choosing the most important factor with reasons.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Explain failure risks such as poor planning, weak finance or lack of management experience.
- Apply competition, demand or working-capital points to the named start-up situation.
- Justify the most important success or failure factor after comparing case evidence.
1.3.4—Why some businesses succeed and others fail question 1
WFH produces hats and sells them to a mass market. It holds a high level of inventory. The Managing Director is concerned about the liquidity of the business and has been analysing WFH's financial statements. An extract is shown in Table 2.1. The Managing Director thinks that the business might fail. Other stakeholder groups might also be interested in WFH's financial statements.
Table 2.1
Identify two possible causes of business failure.
Cause 1:
Cause 2:
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