"Went broke" is a colloquial term used to describe a situation when an individual, organization, or business loses all of their financial resources and is unable to meet their financial obligations. It is often associated with insolvency, bankruptcy, or financial ruin.
When someone "went broke," it signifies a significant financial collapse or failure where their expenses outweighed their income, resulting in a depletion of their assets and leaving them with insufficient funds to sustain their operations or meet their financial commitments. It indicates a state of financial distress or failure that can lead to severe consequences, such as the inability to pay debts, declining creditworthiness, or even legal proceedings.
This phrase is commonly used to describe both personal and business situations. In a personal context, an individual might go broke due to excessive spending, unemployment, poor financial management, or unexpected financial crises like medical expenses or the loss of a significant source of income. In a business context, going broke often describes the inability to generate enough revenue to cover operating costs, excessive debts, mismanagement, economic downturns, or changes in market conditions.
In summary, going broke refers to a state of financial collapse or insolvency where an individual, organization, or business has lost all their financial resources and is unable to meet financial obligations. It signifies a significant deterioration of financial health and often leads to severe consequences such as bankruptcy or legal actions.
