Insolvency: how to avoid it / Ismail Set

Insolvency, is a situation where a debtor is unable to meet his liabilities as and when due. Much has been said about it and as why it is still happening. Insolvency does not happen overnight, and that is what so interesting about it. Data obtained for this research were gathered through secondary data and interviews conducted with the partner and relevant staffs of an audit firm. Through the interviews conducted and data gathered from books and other secondary data, it was found that the blamed of insolvency was put on the management the most, though other internal factors do contribute to the situation. External factors such as recession and inflation do hit such business. Internal factors are controllable but external factors are beyond control.