Cash flow problems: This is the biggest problem for any business for maintain healthy capital cycle. Business runs efficiently when there is enough money and can pay to suppliers when they are in due. If the cash flow becomes inhibited then the business starts racking up debt. If this debt is not paid on time the creditor will start to ramp up pressure, then at certain point the directors may push to dissolve the business.

Lack of Accurate Accounting: For the smooth running of the business a company accountant plays a key role. If the accountant doesn’t have sufficient skills, organizational skills, expertise skills then the full company’s financial situation is all to easy to run in trouble. So the director is responsible to choose correct accountant for the company.

Lack of Leadership: Director’splaykey role in these areas, subtitles, multifaceted and demanding positions with requirements of excellence’s director should have all the knowledge of business aspects, all key staff members, and financialpositions. In many examples, the companies which have failed in mismanagement and lack of expertise of a director is become a main factor for closing thecompany.

Disagreement among the key partners: Internal disagreements can play a pivotal role in forcing company closure. For running a successful journey of business, the matter how clear vision the business partners set out is important. Manybusiness partners fallout over to take on business to which direction .and these conflicts will take a toll on business profits and at a point a simplest decision made by the partners may lead to dissolve a company.