DANCEST 805 Lecture Notes - Lecture 14: Business Valuation, Disruptive Innovation, Gambling
Document Summary
Exit routes: when the number of start-ups in ceases the number of businesses ceasing to trade does as well, the younger and smaller the business the more likely to cease trading. Going concern: sell the assets or the entire business as one that functions without the threat of liquidation for the foreseeable future. Voluntary liquidation: liquidation of a business as a natural way of bringing the business to its end. Reasons for business failures: external and internal influences interact, only in combination they lead to failure. Paradox: the asset of the entrepreneurial character can become a liability in certain circumstances. The economy: smes have to cope with an ever-changing market, the economy is the major external influence on closure. Luck: e. g. loss of a major customer, gambler"s ruin: entrepreneur as the roulette-wheel gambler bets resources on the outcome of each business decision they make, stresses luck as the key determinant of the outcome together with resource levels.
