What is a common consequence for a company that can no longer operate effectively?

A company that can no longer operate effectively often faces significant challenges in maintaining its viability in the marketplace. The primary common consequence of this scenario is closure or dissolution of the company. When a business struggles to meet its operational needs, fails to maintain profitability, or cannot adapt to changing market conditions, it may reach a point where continuing operations is no longer feasible.

In such cases, organizational resources may become depleted, and ongoing financial losses could precipitate bankruptcy or the cessation of business activities entirely. Closure or dissolution involves winding up the company's affairs, settling debts, and liquidating assets, ultimately leading to the company's end.

While options like acquisition by a competitor or debt restructuring might occur in some instances, they are not as direct a consequence of an inability to operate effectively. Improved management performance, meanwhile, would generally imply a turnaround or successful operational strategy rather than an outcome of ineffective operation.