Resume is a financial statement reflects the financial activities of the company's business. There are four basic elements that are part of the financial statements. These elements are the balance sheet, income statement, retained earnings statement, and statement of cash flows. A balance sheet reporting net equity business, assets and liabilities. Income statement outlining the costs to business', revenues and profits over the period of time.
Preserved income statement documenting variability in business' retained earnings over a period of time. Cash flow statement reveals the business operations', investment, finance and cash flow. All the elements of a financial statement used to assess the profitability of financial and business activity. A financial statement is positive or negative can determine whether a company is strong or weak financial position.The function of financial statements is to reflect the financial weakness or strength of the business. Internally, it is used by a business to make decisions in finance such as hire new employees or layoffs. When they look financially struggling businesses to cut costs and fastest way to cut costs is to eliminate employees. Now the struggling economy, employees are considered as an expensive liability, and business and government are trying to reduce their liability as much as they can. When the recession began in 2007, more than 8,000,000 Americans lost their job. According to the government, people are losing jobs, cut 700,000 jobs in trunks only 25 companies. According to the National Bureau of Economic Research, a mass layoff occurs when at least 50 initial claims for unemployment insurance filed against the establishment for a period of 5 consecutive weeks.
During the recent recession, employers took 3059 mass layoff actions in February 2009 involving 326,392 workers. During the same period, the unemployment rate will rise to 10.0 percent.The auto industry felt the pain of recession. U.S. auto sales fell from an average of 16 million per year in 2009 2005-11000000. General Motors hit particularly hard, this constraint to cut tens of thousands of workers. Biggest layoffs came in February 2009, when the company releases 50,000 people, nearly 20% of its workforce. During the credit crisis of 2008, Citigroup was forced to cut 50,000 jobs as part of plans to knock down is charged to 20%. Banks reeling from subprime mortgage losses persuaded its stock dropped from $ 35 to below $ 4 less than a year. Circuit City slowly succumb to pricing pressures and competition from both competitors Best Buy and Walmart. It starts with aggressive layoffs in 2007 and ultimately closed its doors in 2009, bringing total layoffs of more than 40,000 after the closing of the financial statements 567 stores.
A business is directly related to how well a company is performing and if they are in a position to hire new employees or layoffs. Another alternative for companies to cut costs is to send more jobs overseas where wages are lower and where the rules are much simpler. Today, most large companies only want to have many U.S. workers are really needed. In a world where labor is globalized, some companies out large sums of money for American workers when they can keep paying lower wages to workers in other countries. In the past, a person can go to college, get a good paying job with a company for 30 years and retire with a nice pension. Unfortunately for the current generation, the company does not have the same loyalty, when the company reached a financial hurdles, one of the easiest and fastest way to cut costs is to eliminate employees.