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Economic crisis refers to a financial state characterized by a down fall in the regular earnings of a business establishment thus affecting the regular financial status of the company or a country. It is a crisis because it brings with itself various adverse effects on the economy of the present and the coming situations (Unaids, 2009). Many nations have suffered this act of economic crisis yet with others undergoing the same situations at this particular time. Every business establishment in the world has once in a lifetime suffered this phenomenon of economic crisis. Economic crisis occurs in various phases and situations. It also affects the various departments and sectors that enable companies and country economies to operate as a system. It is therefore one of the crucial happenings that can affect the economy of any business establishment either making or not making a profit (Conrad, 2010).

Many economists have involved various strategies to have the problem get controlled. According to Sasidharan, 2008, the present state of economy in the world has the ability to lay strategies that will prevent further crises. Conrad, 2010 says that it is a common thing to experience ups and downs in the field of business. This is a phenomenon  but it can be put under control mainly by having parameters that will be able to foresee the coming of these crises so that measures are taken. Moreover, Howell, 1998 asserts that the present economic state in the world needs quick actions that will make sure that the problems which are undergone now are not allowed to have a repeat of themselves (Howell, 1998).

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