The form of business failure that is attributable to the owner dying or simply choosing to discontinue operations is known as

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The form of business failure that is attributable to the owner dying or simply choosing to discontinue operations is known as discontinuance. Bankruptcy refers to a situation where a business is unable to meet its financial obligations and seeks court protection. Losses to creditors occur when a business defaults on its debt obligations and is unable to pay back its creditors in full. Avoidance of losses to creditors refers to actions taken by owners to protect their personal assets from being seized by creditors in the event of bankruptcy. Failure of opportunity cost refers to the loss of potential profits that could have been earned if a different course of action had been taken.

The Form of Business Failure That Is Attributable to the Owner