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Human Inadequacies in Corporate Failures: A Case Study
Authors: Dr. Abha Mohan * & Dr. Vinay Mohan**
Number of views: 349
The present study differs from general Corporate Failure studies surmising that organizations fail, due their inability to repay their debt and interest obligations, i.e. lack of sufficient cash flows from operating activities. Empirical studies are based on Balance Sheet data which is historical in nature, reflecting the position that has already occurred. These reflect the “effect”, not the “cause”. In fact, managerial actions can precipitate/ obviate corporate failure. A corporate can falter, or ultimately fail, due to Internal and/or External reasons. Internal causes arise due to disorder in the corporate's various areas like production, planning, marketing, finance and personnel. These can be controlled provided the corporate management is efficient and effective.