Define Working Capital Research Paper Example | Topics and Well Written Essays - 250 words

Define Working Capital - Research Paper Example Creditors that supply raw materials and ask payments after a few days or weeks provide leverage to the organization and reduce its working capital requirement. On the other hand, when the company buys raw materials on cash payments, it needs more working capital to run its business. Similarly, when the company sells its finished goods on cash against delivery, the working capital requirement gets reduced; in contrast, when the company sells its goods on credit and receives payments after a few days or weeks, the firms working capital requirement gets enhanced. Therefore, to get the raw material supply on credit with delayed payments and to sell the goods on cash is the most idealistic strategy to have the minimal requirement of working capital particularly, when the firm is short of working capital funds. The management of working capital is the most crucial aspect for the success of any business and to save the company from liquidity

Negative Impact Of Outsourcing On Economy Research Paper

Negative Impact Of Outsourcing On Economy - Research Paper Example Companies contemplate on various ways in which they would reduce on the output of their money and intern saves on cost. Therefore, the main idea that comes across is outsourcing of some of their work. There is a notion that outsourcing has the ability of saving on cost of employment. The fact is that most of outsourcing companies work on a low budget their workers are not provided with benefits and most of their employees do not require overhead expenses (Olga, 2003). Moreover, cost can also be reduced if the company offering outsourcing services is from a different country. This is because of differences in economic stature, which will lead to high differences in currency value. The other reason why some companies outsource their work to experts is that they want to involve themselves on other business issues. This is due to the urge of concentration by individuals in a company (Lazarus, 2004). The experts will ensure that work is done, and the contracting company will leave everything to them as they concentrate on other things. The management will also give out work, which will not require their attention and resources, as they will have an easy time managing a company from within. On the other hand, companies involved with outsourcing can maintain their professionalism by operating on a streamlined direction of acquiring excellent technology, which could not be available in locally (Olga, 2003). Outsourcing helps in globalization of a company, as it is a cost-effective way of building branches and franchises in other countries. The manner in which outsourcing affects cost is indicated in the graph below.  is indicated  in the graph below. It is clear that outsourcing is an  event, which has gone beyond the whole  ideology  of employment and working from one position as a team (Ryan, 2004). Therefore, it would best if the paper examines some  negative  effects related to outsourcing in the education sector, society, companies, neighborhoods, and communities (Michelle, 2004). Moreover, the  paper  will also  determine  some hidden costs incurred by companies in terms of reducing cost of  productivity  and decreasing support  from customers. Effects of outsourcing According, to some business scholars such as Olga Kharif (2004) argue that companies prefer outsourcing because of low cost associated with it and they will save wages they would give to employees working from within the company. However, with  cost  of IT increasing every day, companies will realize that they sometimes use more than what they expected to use (Olga, 2003). The industry is always  competitive, and most companies prefer offshor e outsourcing. However, frustration  is drawn  back to local  employee who would be rendered jobless due to another  person  elsewhere  being given  same job. Outsourcing has also created  insecurity  in the job market as workers can lose their positions as other people can  offer  their expertise from  elsewhere  at a cheaper price (Ryan, 2004). The other  predicament  caused by outsourcing is and associated with joblessness  is increased  crime rate. People need to survive, and they would do anything to survive. Therefore, people who lose their jobs will  turn  to crime (Michelle, 2004). Crimes include cyber crimes where people hack into the