Management Accounting Short Note-'Industrial sickness and its causes'

Industrial sickness is defined as"an industrial company which has, at the end of any financial year, accumulated losses equal to, or exceeding, its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year".

Internal causes for sickness:

1) Lack of finance; 

2) Bad production policies; 

3) Marketing and Sickness; 

4) Inappropriate personnel management; 

5) Ineffective Corporate management

External causes for sickness:
1) Personnel Constraint; 

2) Marketing Constraint; 

3) Production Constraint; 

4) Finance Constraint;