going concern

USAGE SUMMARY

"going concern" is a correct and usable phrase in written English.
It typically refers to a business or organization that is operating at a profit and is expected to continue operating in the future. For example, "The company has been a reliable going concern for the past twenty years."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

50 human-written examples

But it is still a going concern.

The New Yorker

But Acromas is still regarded as a viable going concern.

The Guardian - Business

He said he thought One.Tel could remain a going concern.

The New York Times

But in strong hands, G.M. could be a going concern.

The New York Times

Money is a going concern for many of these giddy heads.

The New Yorker

Tells about the men who have made a going concern reproducing the Hitchcock chair.

The New Yorker

Human-verified similar examples from authoritative sources

Similar Expressions

10 human-written examples

5. (C) Maintenance of the itemizers is an on-going concern.

The Guardian

Both safety management works place requirements on the vessel operators and crew to actively manage safety as an on-going concern.

Reliability Engineering & System Safety

The optimal use of human resources to provide quality and equitable health care is an on-going concern globally [ 1].

Human Resources for Health

Strategic turnaround initiatives for which only one of these two conditions holds and operating turnaround initiatives appear to function as going-concern risk factors as they are associated with a higher likelihood that a going-concern opinion will be issued.

Accounting, Organizations and Society

Unfortunately a buyer could only be found for 20 stores on a going-concern basis".

The Guardian - Business

Expert writing Tips

Best practice

When using "going concern", ensure that the context clearly indicates the entity's ability to sustain operations in the foreseeable future. Avoid using it when there are significant doubts about the entity's viability.

Common error

Don't assume a company is a "going concern" solely based on current profitability. Consider factors like debt, market trends, and potential disruptions to ensure true long-term sustainability.

Linguistic Context

The phrase "going concern" functions primarily as a noun phrase. According to Ludwig AI, it describes a business or organization expected to continue operating profitably in the future. It's used to assess the financial health and stability of an entity.

Expression frequency: Very common

Frequent in

News & Media

57%

Science

23%

Formal & Business

20%

Less common in

Encyclopedias

0%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

The phrase "going concern" signifies a business or organization that is currently operational, profitable, and expected to remain so in the foreseeable future. Ludwig AI confirms its consistent usage across various domains, particularly in finance and accounting. As evidenced by Ludwig's examples, it's crucial to evaluate various factors, and not merely profitability when determining if a company truly qualifies as a "going concern". While alternatives such as "viable business" and "sustainable enterprise" exist, "going concern" maintains its position as the standard term in formal business contexts.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

viable business

Replaces 'concern' with 'business', focusing on the operational aspect and potential for success.

sustainable enterprise

Emphasizes the long-term stability and capacity of the business to endure.

flourishing business

Highlights the success and positive growth of the business.

profitable operation

Focuses specifically on the financial success and revenue generation of the entity.

active business

Highlights that business is currently operational.

solvent company

Indicates the business's ability to pay its debts and remain financially stable.

ongoing venture

Replaces 'concern' with 'venture', suggesting an element of risk and innovation.

operational entity

Focuses on the functional aspect of the business as a working unit.

continuing operation

Highlights the uninterrupted nature of the business's activities.

existing establishment

Emphasizes the established presence and current existence of the business.

FAQs

How is the phrase "going concern" used in accounting?

In accounting, "going concern" refers to the assumption that a business will continue to operate for the foreseeable future, influencing how assets and liabilities are valued. If there's doubt about this assumption, auditors may issue a "going concern opinion".

What does it mean for a business to be considered a "going concern"?

For a business to be a "going concern", it must be able to meet its financial obligations and continue operating for at least the next 12 months. This indicates stability and solvency, essential for investor confidence and continued operations.

What happens if a company is not considered a "going concern"?

If a company is not considered a "going concern", it may face difficulties in securing financing, experience a decline in investor confidence, and potentially be forced into liquidation or bankruptcy. This impacts financial reporting and overall business strategy.

Are there alternatives to saying "going concern"?

Yes, depending on the context, you can use phrases like "viable business", "sustainable enterprise", or "profitable operation" to convey a similar meaning.