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The Impact Of Credit Management On The Profitability Of A Manufacturing Firm
[A CASE STUDY OF UNILEVER PLC ABA, NIGERIA]
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1.6 SIGNIFICANCE OF THE STUDY
This
research work will be of great significance to the staff of Unilever
Nigeria Plc. It will go a long way in enlightening them on the concept
of credit management accounting as well as the best strategies to be
adopted to monitor debts. This research work will as well be of benefit
to students and researchers because it would widen their scope from the
information contained in this research work and lastly, it will
also be of help to the entire nation by also enlightening them on the
importance of managing debt and finding the best possible measures in
settling debts as at when due.
1.7 SCOPE OF THE STUDY
This
research work on the impact of credit management on the profitability of
a manufacturing firm is focused on Unilever Nigeria Plc. Aba State.
1.8 LIMITATIONS OF THE STUDY
In
the course of this research work, the researcher encountered some
bureaucratic problems which are very peculiar to Nigeria firms. These
factors are as follows:
1. Time: The time specified for submission
for this research work was obviously too short and as such, was unable
to go about Unilever Nigeria Plc thoroughly in carrying out this
research.
2. Lack of knowledgeable and sincere personnels: Some of
the officials employed in most manufacturing firms including that of
Unilever Nigeria Plc has no knowledge on the ways of ensuring that
credit management works effectively and they are also not approachable
because they place themselves on a very high esteem and even
when I was opportune to interview them, there were lots of shortcomings
from the basis such as deliberate distortion of facts and amongst
others.
3. Lack of Facilities: Research facilities such as
transportation make research easy and interesting. But it is often noted
that Nigeria has a poor transportation system which greatly affected me
in conducting this research.
1.9 DEFINITION OF TERMS
For easy comprehension of this research work, the writer intends to define the following terms:
1. Accounts Receivable:
This is the total sum which is being owed to Unilever Nig Plc by its customers at any particular accounting period.
2. Bad debts:
They
are losses which are incurred by Unilever Nig Plc when some of its
customers fail to pay part or all the money being owed to the firm.
3. Trade credit:
Is
any amount for goods and or resources which remain unpaid at the time
of purchase of such goods or services but which is deferred for future
use.
4. Liquidity:
This is used to describe the assets of firms which are easily convertible to cash.
5. Solvency:
We
use this term to express a firm’s liabilities or obligations as they
fall due or simply put a state of being able to pay debts as they fall
due.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThe aim of this research work is to appraise “The impact of credit management on the profitability of a manufacturing firm focused on Unilever Nigeria Plc Abaâ€. This is because; trade credit is a short term source of finance and sometimes take the form of bills payable. The statement problem of this research banks about the poor level of credit management and also the problems which the firms encounter as a result of high-rate of bad debts. The objective of this research stud ... Continue reading---
