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Business failure, or colloquially going out of business, refers to a company ceasing its operations following its inability to make a profit or to bring in enough revenue to cover its expenses.

Reasons

Some businesses fail early on. This can occur as a result of poor management skills, insufficient marketing, inability to compete with other similar businesses, or a lack of interest from the public in the business's offerings. As well, some firms can be sold to another owner, or merged with another firm. Some businesses may choose to shut down prior to an expected failure. Others may continue to operate until the very last day before they are forced out by a court order. Yet with some small businesses, the owner may voluntarily cease operations not due to financial constraints, but as a result of a personal decision, such a retirement.

After closing, a business may be dissolved and have its assets redistributed after filing articles of dissolution. A business that operates multiple locations may continue to operate, but close some of its selected locations that are under-performing, or in the case of a manufacturer, cease production of some of its products that are not selling well. Other failing companies may be purchased by a new owner who may be able to run the company better, or else merge with another company that will then take over its operations. Yet some businesses may be able to save themselves through bankruptcy or bankruptcy protection, thereby allowing themselves to restructure.

References

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 {{Original research|date=March 2009}}
 {{Expert-subject|business or economics|date=March 2009}}
+[[Image:Joe's store in Lake Stevens, 2009.JPG|thumb|250px|[[Joe's]] was one of the businesses to fail in 2009.]]
 '''Business failure''', or colloquially ''going out of business'', refers to a company ceasing its operations following its inability to make a [[profit (accounting)|profit]] or to bring in enough [[revenue]] to cover its expenses.
+==Reasons==
-Some businesses fail early on. This can occur as a result of poor [[management]] skills, insufficient [[marketing]], inability to compete with other similar businesses, or a lack of interest from the public in the business's offerings. As well, some firms can be sold to another owner, or merged with another firm. Some businesses may choose to shut down prior to an expected failure. Others may continue to operate until the very last day before they are forced out by a [[eviction|court order]]. Yet with some small businesses, the owner may voluntarily cease operations not due to financial constraints, but as a result of a personal decision, such a [[retirement]]. After closing, a business may be [[dissolution (law)|dissolved]] and have its assets redistributed after filing articles of dissolution.  A business that operates multiple locations may continue to operate, but close some of its selected locations that are under-performing, or in the case of a manufacturer, cease production of some of its products that are not selling well. Other failing companies may be purchased by a new owner who may be able to run the company better, or else [[merger|merge]] with another company that will then take over its operations. Yet some businesses may be able to save themselves through [[bankruptcy]] or [[bankruptcy protection]], thereby allowing themselves to restructure. Even in the above mentioned cases it is not always easy to determine the reason for business failure, and there is not just one single definition for business failure.  Many authors find the term ''failure'' to be inappropriate, and therefor use the term ''exit'' instead. Thus, a business exit is a situation where a business ceases existing due to liquidation, closure, bankruptcy, sale or transfer or even a merge.
+Some businesses fail early on. This can occur as a result of poor [[management]] skills, insufficient [[marketing]], inability to compete with other similar businesses, or a lack of interest from the public in the business's offerings. As well, some firms can be sold to another owner, or merged with another firm. Some businesses may choose to shut down prior to an expected failure. Others may continue to operate until the very last day before they are forced out by a [[eviction|court order]]. Yet with some small businesses, the owner may voluntarily cease operations not due to financial constraints, but as a result of a personal decision, such a [[retirement]].
+After closing, a business may be [[dissolution (law)|dissolved]] and have its assets redistributed after filing articles of dissolution.  A business that operates multiple locations may continue to operate, but close some of its selected locations that are under-performing, or in the case of a manufacturer, cease production of some of its products that are not selling well. Other failing companies may be purchased by a new owner who may be able to run the company better, or else [[merger|merge]] with another company that will then take over its operations. Yet some businesses may be able to save themselves through [[bankruptcy]] or [[bankruptcy protection]], thereby allowing themselves to restructure.
 ==See also==
 *[[List of business failures]]
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 {{reflist}}
 [[Category:Business terms]]
-Business ethics are very important in the work place. It is the difference between getting a regular consumer, and closing down your business due to the failure to live up to your promise.
-Well, what are business ethics? Ethics can be defined in many different ways. Basically, ethics are a system of moral principles, as of an individual. Businesses have to realize how important ethics are in the work place. There are many business schools, but it can cost up to 200,000 dollars just to learn to be ethical. These costs just for learning ethics are ridiculous. That’s why businesses feel that they need an ethics training program.
-One business that has a business ethics training program is CISCO Systems, Inc. Their program includes a series of “American Idol” type cartoons in which characters sing about common conundrums in the work place. Employees had to judge which decision was the best decision to make. In the end they saw if their choices matched the decision that was chosen by the creator. This program went on for four weeks. The manager wanted to make the program as quick and enjoyable as possible. Sure it was quick, but was it effective?
-After the program ended, the business still carried out teaching in basic PowerPoint and flip charts. Results of the program are ongoing. But it is true that you have to remember, you cannot teach people morality, but you can help them make more ethical decisions in the workplace.Of course, there were effects, negative and positive, but that is to be expected. The program cost the business time and money. Managers had to find replacement employees for the time being. However more ethical employees meant fewer problems to worry about in the work place. CISCO Systems, Inc is a very successful company today. They manufacture many different computer products. Products range from routers to firewall. They are up 34% in the stock markets. Thanks to the program, CISCO Systems, Inc. can continue their mass producing of information technology advanced equipment.Business ethics are very important in the work place. Without ethics a business could fail. Employees need to learn how to make more ethical decisions while in face of a minor or serious problem. One wrong decision can bring an entire business down. A good decision can do the complete opposite. As you see, business ethics are the thin line between failing and succeeding. It is a make or break time. Ethics are needed in the work place as much as employees are needed. For some businesses ethics are idealistic, but not realistic.Some businesses go out of business because of a lack of business ethics, too. By making an unethical decision companies are forced to file bankruptcy, and must liquidate their products.
-ByFrancis Shannon
 [[Category:Personal financial problems]]