Business Failures Essay Example | Topics and Well Written Essays - 250 words

Business Failures - Essay Example This does not necessarily means that the organization needs to keep the money locked up in bank or in hand. Instead the organization should invest the money in assets and investment options that can be easily converted into case when required. For example the company can invest the money in a bank’s saving account to earn returns on this amount of money (Whittington, 2012, p.631). Another issue that organization may fail in relation to financial management is overestimation and underestimation of budgeted revenues as well as expenses that the business may incur in future. In order to ensure that the company continues to operate successfully and the company has the required financial resources to pay off its loan, the company should indulge in underestimation of the sales of the company (Etzel, 2007, p.175). In order to estimate the sales the company can conduct interviews with the customers regarding their intention to purchase the goods and services and how often they may do so (Jenster, 2009,