Previously debt can be talked of when group of societies economic position suffer efficiency. It was the only time measure of the organization or individual economic position. At the dawn of the modern economic life, it has been observed that one can be debtor and get stands to meet his current liabilities provided it is well manager.
This research work delves into the business meaning of debt, analyzing its management in business organization. The fruit of its efficient management in an organization. The research did not relent in their effort to point out where and why the impact of debt is felt mostly in business life. It has found that the debt exist through the life of the time of a business organization from the initial capital outlay, in the time of further expansion in daily transaction of either with the supplier or the cessation or liquidation.
A close look at the Nigerian Bottling company plc Enugu, Coca-cola the research has employed both primary and secondary sources of data. Primary surces involves oral interview, the use of practical or personal observation from sources documents.
While secondary sources on the other hand are the data sources from published textbooks, journals, national dailies. Observation also reveals that one can be a debtor as well as a creditor.
A good financial manager can source fund by debt invest it and to make a profit before the maturity of debt. To do this, some speculative factor can be considered and handled so that balance or breakeven of the risk and return can be sought for and a fairly equilibrium is met.
In contemporary business setting, debt is seemingly inevitable. Sometimes it emanates from short fund convenience with the prevailing trade terms. Debt does not occur only when money is borrowed. It equally occurs when there is exchange of goods or services with a deserved payment. So each time goods or services are exchanged with a deferent of its financial obligation, there is incidence of debt.
A good business may not always write to finances the commencement of his business from his personal savings. If he does, so many things may happen. Either that the business is under financed or the business is foregone, likewise a business firm for one version or the other may not finance through equity aware only. The management may wish to source the fund through debt. Even after the commencement, the firm may further need extra funds for expansion or for speculative purposes. Hence, this project work looks into the analysis of debt in a dual perspective:
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