How Good Companies Fail?

Business starts and incur lot of initial and unavoidable expenses, it gets back that money drop by drop through sales but while the money is not returned, there has been more expenses and this cycle continues until either stellar sales cover every penny or slow sales are not enough and company collapses.

Korea's Daewoo Group in late 80s was extensively expanding without cash in hand and they showed high un earned profits but could not handle cash shortfalls and despite being one of the biggest conglomerate, it collapsed.