Final answer:
Borders bookstore is a modern example of a business that failed due to cash problems, particularly during the 2008-2009 recession. Historical events like the Stock Market Crash of 1929 also caused numerous banks and businesses to fail because of cash flow issues.
Step-by-step explanation:
An example of a business that failed because of cash problems is Borders, which was unable to recover from the 2008-2009 economic recession. The Stock Market Crash of 1929 is another historical example that led to a cascade of bank failures and businesses collapsing due to cash liquidity issues.
The inability of banks and businesses to manage cash flow during market downturns or periods of intense customer withdrawals, known as 'runs on the bank', often triggers a financial collapse.