ABSTRACT
The Nigeria economy
with the first half of the century experienced quite a lot business failure.
Business failure can be defined as the inability of a particular business
enterprise to continue to function as a ‘ going concern’’. This development has
started generating anxiety by both international and local investors in
arriving at investment decision.
However, the task of identifying the root causes of corporate
collapse is what this study seeks after. This study is carried out at ensuring
a survival dosage of business in post- Harcourt through the use of accounting
profession (auditing) to appraise operational performance.
Some of the causes of business failure include mismanagement
Bribery and corruption, and poor remuneration etc. the brain behind the failure
of business in the political undertone in the management positions.
Based on the findings in the study, the following conclusion
were dawn, mismanagement, mode of appointment and selection of key officer,
poor co-ordinates management device, government inference, and privatization
and commercialization programme.
Finally, it is recommended that business should appreciated
the importance of audit as a tool evaluating performance, appointment of board
of directors and top management officers should be based on skill, should also
institute its commercialization and privatization programme in place etc.
CHAPTER ONE
1.0 INTRODUCTION
The Nigeria economy within the half of this century
experienced quite a lot of business failures. There was a rapid growth in the
number of indigenous companies collapsed with the same rapidity with which they
were established. Business failures are actually one of the most difficult and
complex concern faced by investors in the equity market or the stock exchange
market in the recent time. Even with the best of strategic co-operate planning,
business failure are still a common
occurrence. Business failure can be defined as the inability of a particular
business enterprise to continue to function as a going concern. The going
concern concept presumed that an enterprise will continue in operation for the
foreseeable future, and that there is
neither the necessity nor the intention to liquidate.
In general, it was gathered that some of the causes of
business failure includes.
Lack of capital (inadequate capitalization)
Inefficient management
Poor remuneration packages
Inadequate accounting records
Un-adequate accounting records
Lack of feasibility study report
Fraud
Given the devastating effect of business ailments, it
because necessary to undertake a
research, into the problem and failure of business life as well as making
suggestion on ways of ameliorating their adverse effects.