Predicting and Preventing Corporate Failure – ACCA Advanced Performance Management (APM)

This chapter considers the reasons for companies failing, and various suggestions as to how corporate failure might be predicted.
Finally we look at possible ways in which failure might be prevented.

Corporate failure models

There are two types of corporate failure models: quantitative models, which are based largely on published financial information; and qualitative models, which are based on an internal assessment of the company concerned.