03.06.09 Cessation of a Business student

03.06.09 Cessation of a Business student - CESSATION OF A...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CESSATION OF A BUSINESS 1. Cessation refers to the closure of a business on a permanent basis 2. Cessation can be: a. Voluntary, meaning ceasing to operate of its own accord. When the owner chooses to close due to lack of  profit or increased debt OR b. Involuntary, meaning creditors force the business to cease trading i.e. people to whom the business owes  money 3. Reasons why businesses fail include: a. Undercapitalisation – this occurs when there is a lack of sufficient funds to operate a business normally b. Lack of management experience – when a business fails to prepare a business plan or modify and existing  plan as the environment changes 4. Possibilities for the cessation of a business. Sole Trader or Partnership a. Bankruptcy is a declaration that a person or business is unable to pay its debts. This can be voluntary. b.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/11/2009 for the course BUSINESS - taught by Professor - during the Summer '09 term at École Normale Supérieure.

Page1 / 2

03.06.09 Cessation of a Business student - CESSATION OF A...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online