THE PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

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THE PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In Nigeria, the first and prime objective of any business in the private sector is to make profit but the uncertainty interest today’s economic environment. Threatens the survival of every business and makes sound liquidity and cash retention the vocal point for the management rather than the achievement of maximum profitability in experience of past few years had shown that no business or industry larger or small in Nigeria Today could claim to enjoy immunity from the financial, the threats to economic survival that had development recession. Shrinking government revenue from domestic taxation and oil acute shortage of foreign exchange removal of petroleum subsidy and the creeping-devaluation of the Nigeria currency in view of above situation, management attention should therefore be focused on the management principles & techniques that can help the business to survive within the uncertain economic environment?

1.2 STATEMENT OF THE PROBLEM

In recent years, the rate of business liquidates and winded up has increased tremendously. In Nigeria, the last ten years witnessed winding up of banks & other multipurpose firms. These recent change has be unfortunate development has created lack of trust on the side of the investors. Investors had lost millions of Naira in these liquidated businesses. Furthermore foreign investors have turned their back of Nigeria economy owing to fear of business Falian these led to acute unemployment low productivity & non payment of dividends to the share holders to this end a study towards solving this problems is indeed a welcome development.

1.3 OBJECTIVE OF THE STUDY

The purpose of this study is to carryout research on the problems in management of recessionary economy of Nigeria the study with three for be guided by the following objectives.

1. To determine the problems of a recessed economy

2. To determine how these problems effect the management of business in a recessed economy.

3. To proffer a solution to solve the problems of management in a recessed economy.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this research work is for its out come to throw more light on the management of a recessionary economy. The outcome will hope fully help to recommend solutions to those problems I also hope that this work will be of great relevance to other researchers of the same field.

1.4 DEFINITION OF TERMS

1. Economy:- A given environment of business and other activities.

2. Management:- It is the are of doing things through and with people.

3. Budgeting:- To on how money & other items should be bought & spent.

4. Accounting:- The process of showing how financial obligations were carried out.

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