Final answer:
Business failures occur when events created by or in organizations do not meet the institution's goals and produce harmful outcomes. They can result from poor management, unproductive workers, tough competition, or unexpected shifts in market conditions. Despite the impact on individuals, business failures are sometimes necessary for the overall flexibility and innovation of the market-oriented system.
Step-by-step explanation:
The term that describes when events created by or in organizations fail to conform to the goals or expectations of the institution and produce unanticipated and harmful outcomes is business failure. Business failures can occur due to various reasons such as poor management, unproductive workers, tough competition, shifts in market conditions, and externalities. These failures can have consequences for the workers, managers, and the overall economic system. However, in a market-oriented system, business failures can be considered a necessary evil for maintaining flexibility and innovation.