Sample Thesis Paper
Lower the stock holding during recession
This is another good practice which could be adopted by the organizations in recession. Specially in the case of manufacturing companies as stocks are assets but it does not help the cause of cash flow until and unless it’s fast moving. Another reason for lower the stocks is because it’s a general understanding that during recession the consumers would not be very active in spending so the need to put such a high number of stocks would cost the organization some money. Experts believe that the organization should develop a (JIT) just in time relationship with their suppliers. This would save the extra cost which is caused by the warehouse and these funds could be utilized in the business as stock is dead money until it’s sold (Young 2009).
Increase Cash flow
The most important thing that the organization should have in times of recession is the amount of money they have in their reserves. So experts believe that organizations should try to do transaction in cash rather than on credit terms and as far as payment is concerned try to avoid it by paying the suppliers with invoices. All this depends on the business and customer base that the organization has (Young 2009).