The Economic Failure

For Zopounidis (1995), the economic failure refers to the absence of profitability and efficiency of the production apparatus and to the deterioration of the connection: company-products-market and by the non-contribution of the company to the reduction of the social problems such as the unemployment or an incapacity to improve the standard of living of each or the purchasing power.

The threat of exclusion from the firm of his market is conversely proportional in the powers of his ruling market or developing in the sectors to which the company belongs According to Gresse (1994), the economic failure of the company is a negative added value; this value constitutes an indicator of performance brought by the use of the factors of production. In such a situation the firm uses more resources than it produces it and is not any more capable of assuring the market price all the factors of production which contribute to the realization of its economic activity.

Van Wymeersch (1996), respect that in econo­my of the market, the remuneration offered by the firm to each of the elements of production must be sufficient to assure the continuity and the quality. According to Quintart (2001), “a positive added value represents a surplus of the production with regard to the intermediate consumption. Theoreti­cally, this surplus is not significant because it is advisable to put in perspective her: the crucial question is to know if the added value is sufficient to pay the factors of production as far as they are productive and used advisedly Ooghe and Van Wymeersch (1996), asserts that the notion of the ailing firm is defined as the one who does not any more manage to assure in a continue way her economic objectives, considering the social constraints and considering the environment