Crisis and Resource Allocation

Passivity of companies to change, leads them into danger. It then becomes less competitive and lose its market, until jeopardize the existence of the company. Such adverse changes in business with the tendency of further deterioration of the crisis are called businesses crisis. Analysis of the symptoms of the crisis based on the assumption that the company is a reservoir of cash, and that his goal is to successfully manage cash flow. When the tank is empty, it is considered that the company had gone bankrupt. Investigation of factors such as profitability, growth and liquidity should provide information on the depth of the crisis in which the company is located. proper reallocation of resources is achieved and the company contributes in general to creating a favorable economic environment and accelerating economic development, which are the main objectives of the economic activities of society