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Explain ten warning signs that would indicate the possibility of an entrepreneur becoming bankrupt

Explain ten warning signs that would indicate the possibility of an entrepreneur becoming bankrupt

Answers

Martin
Warning signs that would indicate the possibility of an entrepreneur becoming bankrupt.

i. Delay to pay creditors on due time

ii. Change in credit policy, from credit to cash on delivery.

iii. Key personnel leave the company.

iv. Selling fixed assets to pay creditors

v. Customers are given large discounts, to enhance payments because of poor cash flow

vi. Contracts are accepted below standard amounts to generate cash.

vii. Materials to meet orders are lacking

viii. Payroll taxes are not paid. :

ix. Customers’' complaints regarding service and product quality increase.

x. Suppliers demand payment in cash.
marto answered the question on January 29, 2019 at 11:54

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