Objectives Of/Need For Business Reorganisation
(1) To remove deficiencies in the existing organizational structure.
(2) To make the business unit strong, stable and economically viable by adjusting its activities as per the env changes.
(3) To make the business unit financially sound and profitable. In addition, to avoid or reduce losses of the business unit and thereby to provide greater security to creditors.
(4) To ensure survival, stability and prosperity of business.
(5) To improve overall performance/efficiency of an organisation and to ensure optimum utilization of resources available with the enterprise.
(6) To simplify the capital structure and facilitate future financing.
(7) To reduce floating debt and fixed charges.
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