Final answer:
An inspector may close an establishment when operating it becomes less financially viable than closure, such as when revenues do not cover fixed costs or when damage and deterioration lead to excessive repair costs.
Step-by-step explanation:
An inspector may close an establishment when it is determined that continuing to operate would lead to losses that exceed the shut-down costs, or when operating is no longer sustainable. This can happen due to a variety of operational, economic, or external factors such as market downturns, regulatory changes, structural damage, or catastrophic events. For instance, if a firm faces high fixed costs and the revenue cannot cover these costs, it might make more financial sense for the firm to cease operations temporarily or permanently.
Another example could be an establishment that has experienced significant deterioration or damage, as the 'Condition Statistics' imply, such as deterioration noted 18 years after completion or an impact from a bomb. The cost of repairs might be so substantial that it outweighs the benefits of staying open, prompting closure. Both examples reflect situations where the financial or practical viability of keeping the establishment operational is compromised.