Business failures occur when a company is unable to meet its financial obligations, leading to bankruptcy or closure. This can happen for various reasons, including poor management decisions, lack of market demand, or insufficient funding. When a business fails, it often results in job losses and can negatively impact the local economy. The consequences of business failures can extend beyond the company itself. Creditors may lose money, and investors can face significant financial losses. Additionally, failed businesses can lead to a loss of consumer trust in the market, affecting other businesses and entrepreneurs trying to succeed in the same industry.