Final answer:
A business can fail due to poor management, unproductive workers, tough competition, and shifts in market demand and supply.
Step-by-step explanation:
A business can fail for various reasons, including poor management, unproductive workers, and tough competition from domestic or foreign companies. Additionally, unexpected shifts in market demand and supply can lead to falling prices for outputs or rising prices for inputs, which can negatively impact a business's profitability.
It is important to note that while business failures can be challenging for the individuals involved, they can be seen as a necessary aspect of a market-oriented system. Business exits provide a mechanism for satisfying customer needs, keeping costs low, and fostering innovation.