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Chapter 17: Q 30 (page 426)

Explain how a company can fail when the

safeguards that should be in place fail.

Short Answer

Expert verified

A company has many reasons because a company consists of many things and people.

Step by step solution

01

Step 1. Definition

A safeguard is a law, rule, or measure which is used to avert someone or something from being harmed. For example, many people took second jobs as a safeguard in opposition to unemployment.

02

Step 2. Explanation

As we all know that a company consists of various peoples like directors, board of directors, managers, investors, creditors, etc. and one reason is that when the board of directors of the company lack accuracy and foresight about the decisions taken for the future of the company it may cause the failure of the firm.

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