An economic assessment of the viability of a business, it means that a firm is either not earning what is expected (i.e. it has a below normal rate of return) or is not meeting its obligations. It is not synonymous with bankruptcy because bankruptcy is more of a formal and legal definition. A failing company is not necessarily a bankrupt company and vice-versa.
Failure is the state or condition of not meeting a desirable or intended objective, and may be viewed as the opposite of success. The criteria for failure depends on context, and may be relative to a particular observer or belief system. One person might consider a failure what another person considers a success, particularly in cases of direct competition or a zero-sum game. Similarly, the degree of success or failure in a situation may be differently viewed by distinct observers or participants, such that a situation that one considers to be a failure, another might consider to be a success, a qualified success or a neutral situation.
It may also be difficult or impossible to ascertain whether a situation meets criteria for failure or success due to ambiguous or ill-defined definition of those criteria. Finding useful and effective criteria, or heuristics, to judge the success or failure of a situation may itself be a significant task.
English
Etymology
From Anglo-Norman failer, from Old French faillir (“to fail”).
Pronunciation
- (UK) IPA(key): /ˈfeɪ.ljə/
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