Merton Truck Co

Case Analysis: Merton Truck Company Linear programming techniques can be used to not only determine the best production mix, but also to provide clues and data suggesting ways to improve profits. In 1988, Merton Truck Company was searching for ways to increase profits and ultimately its poor financial performance. Options being considered included changing their product mix by either removing or adding a product line, or renting capacity. In the following pages, the product mix and capacity options considered by Merton are evaluated, other factors and alternatives are discussed, and final recommendations are provided. Product Mix Based on the financials in 1988, Merton’s president suspected that discontinuing their Model 101 would result in stronger financial performance. With unit costs of $40,205 (including fixed overhead) and a sales price of $39,000, each sale of Model 101 resulted in a $1,205 loss. However, the president did not consider that fixed overhead (OH) was being allocated across all units, and the discontinuation of Model 101 would increase the overhead applied to Model 102. In reality, the $8. M in monthly fixed overhead exists regardless of the product mix and does not need to be allocated on a per unit basis to determine overall profit or financial performance. Therefore, fixed overhead was not considered until the end of each evaluation. In order to evaluate any alternative, we need to compare to current profit. Utilizing the data from Tables B and C to obtain production costs per unit as well as fixed overhead, Merton is currently making a profit of $1. 9M (Exhibit 1A). Since it was the specific request of the president, the impact of discontinuing Model 101 was evaluated. The first step was to determine the capacity of producing only Model 102, which is as follows based on Table A: Engine Assembly4,000 hours / 2 hours per unit = 2,000 units Metal Stamping6,000 hours / 2 hours per unit = 3,000 units Model 102 Assembly4,500 hours / 3 hours per unit = 1,500 units The resulting capacity of 1,500 units is the same as the current production level, so it was suspected immediately that discontinuing Model 101 would likely have a negative result. Without an increase in sales, discontinuing Model 101 would only result in increasing the fixed costs for Model 102 without increasing the revenue. As seen in Exhibit 1B, this would indeed result in a $1. 1M monthly loss for Merton. This is a phenomenon known as the death spiral, when the discontinuation of a seemingly unprofitable product causes otherwise profitable products to become unprofitable. Merton should continue to use that extra capacity to produce Model 101 to generate additional revenue and help absorb costs. The impact of making only Model 101was evaluated by determining the capacity using Table A: Engine Assembly4,000 hours / 1 hour per unit = 4,000 units Metal Stamping6,000 hours / 2 hours per unit = 3,000 units Model 101 Assembly5,000 hours / 2 hours per unit = 2,500 units As shown in Exhibit 1C, producing 2,500 units of Model 101 results in a $1. 1M loss. However, since the bottleneck is the Model 101 Assembly, additional capacity remains to produce Model 102 units: Engine Assembly1,500 hours remaining / 2 hours per unit = 750 units Metal Stamping1,000 hours remaining / 2 hours per unit = 500 units Model 102 Assembly4,500 hours / 3 hours per unit = 1,500 units Exhibit 1D shows that producing 500 units of Model 102 results in a $1. 4M profit; however, Merton is still better off in its current situation. In the current analysis, it is assumed that Model 102 Assembly cannot be used for Model 101, a logical assumptionsince Merton specifies the department where Model 103 will be made. However, if Model 102 Assembly can be used for Model 101, the bottleneck then becomes Metal Stamping at 3,000 units x $3,000 CM = $9. 0M – $8. 6M = $0. 4M profit. In a similar fashion, the ability to use Model 101 Assembly for Model 102 would also drastically change the impact of discontinuing Model 101. The bottleneck for producing only Model 102 would then become Engine Assembly at 2,000 units x $5,000 CM = $10. 0M – $8. 6M = $1. M profit. So far an improved product mix has not been identified, so linear programming was used to identify the production mix that would maximize profits using the following objective function: To maximize c1x1 +c2x2 Where: x1 = Number of Model 101 trucks to produce x2 = Number of Model 102 trucks to produce c1 = Contribution margin of Model 101 (excluding fixed costs) c2 = Contribution margin of Model 102 (excluding fixed costs) The contribution margins (CMs) were calculated in Exhibit 1 as: c1 = $3,000 c2 = $5,000 Subject to Constraints: Engine Assemblyx1 + 2Ãâ€"2 ? 4000 Metal Stamping2x1 + 2Ãâ€"2 ? 000 Model 101 Assembly2x1 ? 5000 Model 102 Assembly3x2 ? 4500 Negativityx1,x2 ? 0 Each constraint was graphed as a line by setting each variable to zero, and then determining which side of the line satisfied the equation by plugging in points (such as the origin). Once the relevant range of all the constraints was determined, the extreme points were clearly identified. The extreme points corresponding to the non-negativity, Model 102 Assembly, and Model 101 Assembly constraints were easy to identify, and the rest was determined by simultaneously solving the equations of intersecting lines. Exhibit 2 shows the graph, including the values in USD obtained when the extreme points are plugged into the equation. Many of the values were in accordance with expectations as they corresponded to the earlier analyses. The optimal product mix was identified as 2000 units of Model 101 and 1000 units of Model 102, which would generate $11. 0M – $8. 6M fixed costs = $2. 4M profit. The same result was obtained when the analysis was done in Excel Solver (see attached Exhibit 3, Model 101 & 102 Solver Results). The binding constraints seen in Exhibit 4 are no longer the Model Assemblies s seen with earlier combinations, but are now the Engine Assembly and Metal Stamping departments. The optimal product mix for Merton given their current product mix and constraints has been determined, but Merton is also considering the addition of a new Model 103. The values for contribution margin (CM) are given as well as the portion of departmental capacity required to produce 103. Based on the capacity information, it was determined that Model 103 would require 0. 8 hours of Engine Assembly, 1. 5 hours of Metal Stamping, and 1 hour of Model 101 Assembly per truck. The constraints and objective function were modified with these new values and run in Excel’s Solver, which determined that Model 103 should not be produced (Exhibit 5). Exhibit 6 provides a sensitivity report indicating a reduced cost of -$350, meaning that the CM of Model 103 would need to increase by $350 before it would make sense for Merton to begin producing Model 103. Capacity Options Given the capacity limitations seen thus far, it is a fair conclusion that increasing capacity may present an opportunity. In the optimal solution, there are limitations in both Engine Assembly and Metal Stamping. If one or both of these was increased, this could have a strong positive impact on profit. By referring to the sensitivity report for the optimal solution found in Exhibit 7, we see that Engine Assembly and Metal Stamping have shadow prices of $2,000 and $500 respectively, which means that an increase in one unit of capacity would result in the corresponding increase in profit. If Merton can rent capacity for less than the shadow price for either department, it should. Note that for each, this is only true for 500 units before the scenario would require reevaluation (see the allowable increase in Exhibit 7). Also, only one variable or department can be increased. If both are modified, the shadow prices may no longer hold true. Merton also has the option of increasing engine capacity by 2,000 hours using overtime. This would also result in a 50% increase in direct labor or: Model 101$4,000 current from Table B x 1. 5 = $6,000 (reducing CM by $2,000) Model 102$4,500 current from Table B x 1. 5 = $6,750 (reducing CM by $2,250) In the overtime tab (Exhibit 8), we add two additional variables epresentative of overtime production o1 and o2, including an additional constraint representing the maximum of 2000 hours. As seen in Exhibit 8, Solver has determined that overtime should be utilized to produce 250 additional units of Model 102. However, fixed OH has not been included in the calculations until afterwards as it does not impact the optimal solution, only the net profit. In this case however, the fixed overhead increases by $0. 75M to $9. 35M if overtime is utilized. Therefore, the $9. 35M is subtracted from this result and compared to our previous optimal solution net profit of $2. M. This was done in Exhibit 8, resulting in a net profit of less than $2. 4M. Therefore, Merton should not assemble engines on overtime under these conditions. Other Factors, Alternatives and Considerations Merton’s president would like to impose a marketing mix constraint requiring Merton to produce at least three times as many units of Model 101 as units of Model 102. By adding this constraint to the analysis in Exhibit 9, the marketing mix moves to producing 2,250 units of Model 101 and 750 units Model 102, and a net profit of $1. M . The marketing constraint hinders the potential total net profit by $500,000 because at optimal production levels, Merton will be able to produce a total net profit of $2. 4M. There are several other options th at Merton did not consider. Renting capacity from an outside supplier was one alternative, but a similar option would be to simply outsource (at a rate less than the shadow prices discussed earlier). It is also mentioned that at present, demand is great enough that the company is selling everything it produces. How much greater than supply is the demand? If it is much greater, Merton should consider raising its prices to reduce demand. If demand is expected to continue, Merton should also evaluate the ROI of investing in capital and permanently increasing capacity as an alternative to renting or outsourcing capacity. Merton should also consider the impact that learning curves and technology may have on their production process. As the Model 101 and 102 life cycle continues, the company should see a reduction in time and costs associated ith every aspect of the truck manufacturing process as a result of learning curves. It can be reasonably estimated that labor hours per vehicle will be reduced due to learning curves (which result from staff experience and familiarity with the production process), and that Merton will therefore be able to increase the total volume of vehicles produced. Technology could also play an important role in reducing the time and costs needed to produce the vehicles, so it is important that Merton maintain a watchful eye on new production methods and machinery. Investments in technologies can reduce the firm's fixed overhead costs and increase profits and improve productivity. In addition, technologies can help reduce the costs of designing, developing, and manufacturing a product which can help the firm to improve product quality and to charge a higher price. Conclusion Merton’s president was absolutely correct in his supposition that the company could improve its financial performance by changing their product mix, though wrong in his initial thoughts on which actions to take. The value of linear programming techniques in evaluating possible solutions is clear, particularly in that it quickly provides clues of other options to consider (such as adding additional Engine Assembly Capacity). Based on the information provided here, further recommendations for Merton would be to (1) immediately change the production mix to 2000 Model 101s and 1000 Model 102s, (2) evaluate anticipated demand and the impact of a capital investment to increase capacity, and (3) seek quotes for capacity rental or outsourcing Engine Assembly.

Miller, Kant, and Aristotle on fostering relationship between Great grandpa and his grandson Essay

Making moral decisions can be difficult sometimes and it is not easy to reach a certain conclusion. Philosophical decisions are much more complex and take time to evlaute decisions in life. Rather, the reasoning behind a moral decision is much more intricate, requiring a medley of sources to arrive at a decision. Take, for example, a situation in which a father has to decide whether or not to foster a relationship between his three year old son and his son’s dying great grandfather. Is the son having a relationship with his great grandfather worth risking the pain his son would have to endure due to his great grandfather’s death? Or, would the pain be too scarring and ruin the life of such a young mind? To help resolve his dilemma, the father might turn to the philosophical giants: Mill, Kant, and Aristotle. Mill would agree to foster the relationship. However, to arrive at this decision, certain assumptions were made. Mill would advise to foster the relationship if the great grandfather would live a couple more years. Mill’s basis for moral decision making rests on whether the sum of all pleasures outweighs the sum of all pains. Thus, in order for Mill to agree to foster the relationship, it must be stated that the relationship between the great grandfather and the son is a good healthy relationship and that the death does not cause any permanent or enduring psychological damage on neither the son, nor the father, nor the great grandfather. After all, Mill’s theory demands that one take into account the sum of all the pleasures and all the pains. Also, the son might also gain the power to deal with death with this relationship. Mill would then consider good results from this relationship. Therefore, if everyone receives more pleasure from the relationship between the great grandfather and the son than pain (even after death) then Mill would advise to foster the relationship. Kant, on the other hand, discards the notion of consequences. Kant’s advice in this situation is harder to decipher because his theory is based on internalization and motivation. Kant would agree to foster the relationship if the father’s motivation for the relationship is purely the relationship in itself. In other words, it requires that the father be treating the great grandfather as an end rather than as a means. If the father wants to foster the relationship merely because he feels it might result in a larger endowment for his son, then Kant would no longer advice fostering the relationship. Furthermore, Kant might support fostering a relationship if the father’s decision to not foster a relationship was to avoid the pain of death. The inverse is also true. Kant might advice asking the great grandfather (not the three year old son, for he is too young to reason) whether he would like a relationship with his great grandson. Then, the father would be treating him as an end, not as a means. It is also important to take into consideration whether it is a father’s duty to foster a relationship between a great grandfather and his son. Kant’s advice only holds assuming that both the great grandfather and son are generally good and the relationship that would form between them is also good. In summation, Kant’s theory bases itself on internal motivation. As he himself stated, oftentimes, the layers are too difficult to peel to arrive at the true motivation. Aristotle would advise fostering some relationship with the father (this would be the virtuous mean). Aristotle would argue that not fostering a relationship and fostering too much of a relationship would be two extremes. Aristotle advises that one must find a mean in between the two extremes and that is the right relationship. Moreover, Aristotle believes that morality can be learned through observation. Therefore, a three year old child would have much to gain from the experience of an 84 year-old great grandfather. This relationship might help the son reach his human purpose, or excellence. Once again, Aristotle would only advise any relationship if the relationship is good and both the great grandfather and the son enjoy it. Perhaps a better approach to arriving at a decision requires a combination of both Kant’s and Aristotle’s philosophy. The decision continues to run on the assumption, of course, that both the great grandfather and the son are good people and that a good and healthy relationship would thus form. The decision to foster a relationship must first be decided based on the motivation. In other words, a relationship should only be fostered if the father wants a relationship only because of the relationship and not as a means of achieving a greater good. However, fostering too much of a relationship might force unnecessary pains. Thus, a mean of some relationship should be followed. For example, a relationship of one hour on the weekends might be beneficial. For, once a relationship would form, it would not be strong enough to completely devastate any party involved.

Discuss how society viewed the ideas of love and marriage in the early 1800’s Essay

Jane Austen was born in 1775 and spent most of her life in the countryside in a village called Steventon, Hampshire. She was the daughter of a clergyman, Reverend George Austen and her mother was called Cassandra Austen. She had a brief education starting at the age of seven and ending at eleven, when she settled at home. Like women in Austen’s society, she had little education due to the beliefs at the time; the only education she would have received would likely have been to up her social status, through marriage. She wrote â€Å"Pride and Prejudice† to portray society’s views of love and marriage to the reader and to shoe that marriages take place for different reasons. We see throughout the novel the excessive number of marriages and courtships that take place. The opening sentence â€Å"It’s a truth universally acknowledged, that a single man in the possession of a good fortune must be in want of a wife† introduces the theme of love, marriage and money in an ironic way. The irony is contained in the fact that marriage is meant to be about love and happiness but clearly revolves around wealth and social standing. In the novel we see two established marriages take place; The Bennet’s and the Gardiner’s. Throughout the novel four other marriages take place; Lydia and Mr Wickham, Charlotte Lucas and Mr Collins, Elizabeth and Darcy and Jane and Mr Bingley. The marriage between Mr Collins and Charlotte Lucas is purely based on financial and social security not love or appearance, It was extremely common fro women in Austens era to marry and save themselves from spinsterhood and social security and to gain, the above mentioned, financial and social security. In this type of marriage Austen illustrates that women who submit themselves are largely willing to suffer emotional distress in silence. â€Å"†¦ Mr Collins to be sure neither sensible nor agreeable; his society was irksome and his attachment to her must be imaginary. But still he would be a husband†¦Ã¢â‚¬  This reflects the social beliefs of, at least, the middle classes at the time. Evidently all that Charlotte wants out of life is a comfortable home and enough wealth to sustain this. † I’m not a romantic girl you know. I never was, I only ask for a comfortable home †¦Ã¢â‚¬ . The use of the word â€Å"only† emphasises the fact that Charlotte wants this and nothing else. The consequences of her not marring well would be to severely limit her options i.e. she would have to become a governess or an old maid for a wealthy couple, but this would not support her once she had reached an age at which, she could no longer work. When Charlotte Married Mr Collins she seemed happy in their relationship, even though its not based on love :- she has all that she wants out of marriage. She does however ignore her husbands silliness and does not have any bad words to say about him. † When Mr Collins said anything of which his wife might reasonably, which certainly was not unseldom†¦ once of twice she could discern a faint blush; but in general Charlotte wisely did not hear†. From this we gather that the orthodoxy of society has been embedded in her behaviour. She possibly perceives that she is happy because society deems that now she is married she should be happy. The marriage of Mr and Mrs Bennet was a stereotypical marriage of the time. The marriage was based on initial beauty and physical attraction plus the fact that they where matched financially. The family life, was also typical of the 1800’s, they had five daughters, and Mrs Bennets aim in life was to marry her daughters of in as quick a time as possible, this compares with Charlottes views of marriage as a step up the social ladder. â€Å"†¦A single man of large fortune; four or five thousand a year. What a fine thing for our girls!† Showing that she is considering the monetary aspects of a possible marriage. â€Å"†¦It is very likely that he may fall in love with one of them, and therefore you must visit him as soon as he comes† Mrs Bennet mentions fleetingly but without conviction, she is mostly interested in trying to marry of at least one of her 5 daughters. Mr Bennet however constantly mocks his wife. We are made aware of this in their first dialogue † Do you not want to know who has taken it?† cried his wife impatiently. † You want to tell me, and I have no objection to hear it†. This is a perfect example of Mr Bennets sarcasm and unconcerned attitude towards his wife and their family affairs. Mr Bennet is the complete opposite to Mrs Bennet in the way in which he thinks, about the new gentleman in town for example † How so? How can it affect them?† Mrs Bennet is immensely annoyed by this but does not possess enough wit to retort. For Mr Bennet this mockery of his wife seems his way of dealing with being stuck in a loveless marriage. In Jane’s era divorce was not an option, people had no choice, they were devoted to that one person fro life. The Bennet’s estate is entitled to the nearest male heir which, was common practice at the time, leading to very limited options for the daughters in the family. The marriage between Lydia and Mr Wickham was mainly for desire and attraction even though they were not financially matched. This itself was frowned upon by society and exacerbated by the fact that their courtship was very short, unorthodox and kept a secret. Marriage of their type shows the results of not following society’s rules. Society viewed this as dishonesty and because of this their reputation would be severely tarnished. â€Å"That the loss of virtue in a female is irretrievable†¦ and that she cannot be too much guarded in her behaviour towards the understanding of the other sex†. Lydia’s damaged reputation would also affect her families reputation, unless they disown her. † she has no money, no connection, nothing that can tempt him she is lost forever†. The word no emphasises the fact that she has absolutely nothing and no-one. For Wickham, on the other hand, the slight on his reputation is less so, although still noticeable; â€Å"†¦ She was a surprise- all astonishment that Wickham should marry a girl whom it was impossible he could marry for money; and how Lydia could ever have attached him, had appeared incomprehensible†. Here we see that what would have been scorn when aimed a Lydia is mere surprise when directed at Wickham, this is due to the fact that in Jane Austens era the gentleman naturally had a higher social standing; just because of their sex. The Gardiner’s, along with the Bennet’s are the established marriages of the novel; but unlike the Bennet’s the Gardiner’s are a sensible, lively and intelligent couple who love each other and work well together. They always agree † in talking over their route the evening before, Mrs Gardiner expressed an inclination to see the place again. Mr Gardiner declared his willingness†. Jane Austen here is being an omniscient narrator . The Gardiner’s are in a harmonious relationship, a marriage that creates a positive image towards its readers. They are described as a † sensible-gentle like man† and an â€Å"amiable intelligent women† who are encouraging role models fro the Bennet children due to the poor quality of Mr and Mrs Bennet’s marriage. As we can see this is an example of one of the rare happy marriage of the time. In general people strove towards this, but most did not find it due to the fact that society dictated that once married you were in love. Jane and Mr Bingley engage in a courtship that occupies the central place in the novel. They first meet at Meryton and enjoy an immediate mutual attraction. They are spoken of as potential couple throughout the book, long before anyone imagines Darcy and Elizabeth might marry. Their marriage was one for physical attraction and love, Jane is the most handsome of the five Bennet daughters who looked for a man who is sensible, humorous and lively. † Is he married or single?† this shows an automatic interest in young wealthy men. Women in the early 1800’s married mainly for wealth and social status however this marriage illustrates that that is not always the case. Bingley’ love for Jane is strengthened by her beauty and the love between is equal. Jane’s idea of marriage is to find someone who loves her and respects her as much as she does him. The marriage between Jane and Mr Bingley set ‘s a standard for the rest of the Bennet daughters, † It was moreover, such a promising thing for her younger daughters, as Jane’s marrying so greatly must throw them in the way of rich men†. Here their marriage is reflecting society’s views of love and marriage as if a member of the family is married into a family of a higher status, then the rest of the daughters would be regarded as more eligible to be associated with higher status, wealthy, respectable men. The word greatly show that Mrs Bennet believes that Jane had chosen accurately and it displays society’s beliefs as to what constituted a very good match for Jane. Elizabeth is an intelligent and spirited women who passes a keen wit and enjoys studying people’s characters; on the other hand Fitzwilliam Darcy is a wealthy, proud man with a generous, thoughtful nature beneath his somewhat stiff demeanour. Elizabeth’s pride makes her misjudge Darcy on the basis of poor social standing blinds him, for a time, to her many virtues. Darcy and Elizabeth’s realization of a mutual and tender love seems to imply that Austin views love as something independent of these social forces, as something that can be captured if only an individual is able to escape the warping effects of hierarchical society. † In vain have I struggled. It will not do. My feelings will not be repressed. You must allow me to tell you how ardently I admire and love you†. Here he speaks well however, there are other feelings besides those of the heart to be detailed. The narrator relates Elizabeth’s point of view of events more often then Darcy’s, so Elizabeth often seems a more sympathetic figure. The reader eventually realises however, that Darcy is her ideal match. Intelligent and forthright, he too has a tendency to judge too hastily and harshly, and his high birth and wealth make him overly proud and overly conscious of his social status. When he proposes to her, for instance, he dwells more on how unsuitable a match she is than on her charms, beauty, or anything else complimentary, â€Å"not handsome enough†. Here Darcy is reflecting society’s views of love and marriage because many people married for higher social status and financial status rather than for love and beauty. Pride and prejudice is a love story but does not reflect the romantic side. It gives the reader a sense of all the different kinds of relationships, none of them are the same. It shows that the ideal couple is difficult to find, the established marriages in the book being The Bennet’s and the Gardiner’s.

Will the XM25 replace the M203 Grenade launchers Essay

Will the XM25 replace the M203 Grenade launchers - Essay Example The military denies the rumors, but perhaps it might be better to consider the criteria of reliability, durability and affordability of both systems to prove that the XM-25 grenade launcher will not replace the M203. The reliable old M203 Grenade Launcher has proven itself in just about every corner of the world. Over twenty countries friendly to the United States employ the M203, or a variant thereof. Manufactured by Colt, the M203 has seen combat with the US from the humid jungles of Viet Nam right on through to the present day in the Middle Eastern deserts, along with its newer counterpart, the M203A1 (for the M4). The launcher has proven extremely reliable in all manners of weather conditions and weigh in at light 3 pounds. On the other hand, the XM25 Counter Defilade Target Engagement System shows its reliability in its characteristics. It is currently being manufactured by German arms giant Heckler and Koch, in partnership with the US based Alliant Tech Systems (ATK). The weapo n does indeed resemble something futuristic and at fourteen pounds with rounds it is much heavier than the M203. Yet the modern advances of the launcher are incredible. For one thing it has an interchangeable magazine that holds up to four rounds, so single shot is no longer an obstacle. For another, instead of the old-fashioned quadrant sights on previous grenade launchers, the XM25 is fitted with a thermal sight device resembling a scope, with night capabilities. The M203 has showed its durability since it replaced the M79, which was a stand-alone weapon and the grenade launcher was its singular purpose. Recognizing that the grenadier was vulnerable during a firefight, the US Army developed the M203. Its â€Å"over and under† style fit under the standard M16 rifle (and later under the newer M4), therefore giving the soldier the ability to fire grenades at a range of up to 350 meters and still having the small arms capability and reassurance offered by the M16. The grenadier ’s rate of fire for the launcher was hampered only by his own ability to load the weapon, as it fires one round at the time. Its large bore makes cleaning relatively easy and the unit armorer can do most maintenance on the weapon, including disassembly and removal. Eight different forty millimeter grenade types have been developed for the launcher. 1 However it is what the sights are fitted into that makes the XM25 so durable and has the Army gushing as to its valuable assistance in the GWOT. The Target Acquisition Fire Control System (TAFCS) allows the operator to send the round down range with radio controlled precision. For example, grenadier can take out an enemy firing from inside a window, adjusting the range so that the grenade can go through the frame, explode, and still maintain the integrity of the building. The XM25 uses a 25 millimeter grenade system that even includes a thermobaric grenade specific for use in caves, particularly useful in Afghanistan and the laun cher is accurate at ranges of up to 700 meters. Finally, the cost of the M203 is very affordable in comparison to the XM-25. The M203 is only $1800.00 dollars. If combat tests work out with the division, the Army plans to buy 12,500 units of the XM25 in 2012, one for each squad. At over $30 thousand a copy the XM25 is expensive, as are the rounds at $25 apiece. The cost almost doubles from one to the other. This alone is a serious increase in budget cost, and can be a huge dilemma for the economy. Even after all the aforementioned, the XM25 will not replace the M203. Although the 101st grenadiers are so impressed with it they often carry no extra weaponry. Indeed, both weapons will

Healthcare Factors that Differentiate the Status of Health in a Essay

Healthcare Factors that Differentiate the Status of Health in a Population - Essay Example Social factors include the resources that improve the living standard of a human being. However, it can be concluded that availability of health sources are dependent on the social factors that enable a person to avail all the resources necessary for having a healthy lifestyle. Such resources include proper healthy food, medicines, prompt healthcare facilities and other necessary basic amenities of life. In case of Texas, majority of people are left unprivileged due to inadequate health resources and low health insurance coverage due to poor socio-economic structure of most people in Texas. As a result, it has been observed that every year 2500 Texans die due to inadequate health facilities, lack of proper food and unavailability of medicines (Code Red Texas, 2012). To ensure good health status in the state of Texas, it is highly important for the state and social welfare organizations to ensure economic stability and awareness regarding health in the area. The state government shoul d take imperative steps to determine all the social factors that are contributing in poor health outcomes. As a result, the government should formulate a plan to enhance and improve the life standard of the people in Texas. This can only be achieved by funding and investing in economic activities, offering better employment opportunities to the people and instilling sense of social responsibility in the minds of people. References US Department of Health and Human Services (2012) Healthy People 2020 retrieved from http://www.healthypeople.gov/2020/about/QoLWBabout.aspx Lomas, J. (1998). Social capital and health: implications for public health and epidemiology. Social Science & Medicine, 47(9), 1181-1188. Code Red Texas (2012) Code Red; the critical condition of health in Texas 2012. Retrieved from http://www.coderedtexas.org/files/Code-Red-2012.pdf #Health Literacy Health literacy provides an important platform for handling health related issues for people with low income and low l iteracy rate (Marmot et al, 2006). Health decisions according to Marmot, (2007) are established basing on appropriate standards as required in accordance with existing health policies. Healthcare decisions are therefore valid and valuably relevant especially when considering proper use of newer technologies (US Department of Health and Human Services, 2012). The core substance defined according to societal needs is based on unique health actions. I have analyzed HRSA to study the health communication and the use of technology in health and how it benefits different people. The website (HRSA) provides coherent and in-depth information on each and every disease and other health related issues. It targets the audience within the US and also provides assistance to people living outside of the US through emails and online support. For people unfamiliar with English, it provides all the details in Spanish as a second language. Visuals have been applied and have offered a better level of a ttaining the required information. The use of pictures provides better understanding even to the non healthcare readers to acquire the first hand knowledge and the concept. It could have been more understandable for them if the pictures contain further information regarding a specific disease. The readability ratio on the

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Last Healthcare using Excel - Statistics Project Example The law of diminishing marginal utility refers to the state that when an individual increases the consumption of a commodity and at the same time keeping the consumption of other products constant, there is a decrease in the in the marginal utility that the individual originates from consuming each extra unit of that commodity (Zubair & Habibah, 2011). The consumer surplus refers to the economic measure of a consumer satisfaction that is calculated by evaluating the difference between what the consumers are ready and able to pay for a good or service virtual to its market price (Zubair & Habibah, 2011). The case of a consumer surplus will probably occur when the consumer is ready and able to pay more for a given product or service than the current market price. The producer surplus refers to the economic measure of the difference between the value that a producer of a commodity receives and the least amount that the individual would be willing and able to accept for the commodity (Zubair & Habibah, 2011). Therefore, the surplus or difference is the benefit that the producer receives for selling the commodity in the market. When the number of producers increase in a market, the supply will automatically decline due to the excess suppliers who are will and able to supply goods and services. The price of supply will also fall. Advancement in technology will create a rise in supply because relevant information on where to supply next will be easy to know. An increase in technology leads to an increase in supply. This is a non-price

Part II Dream vs. Reality Get Rich Quick Schemes Essay

Part II Dream vs. Reality Get Rich Quick Schemes - Essay Example No matter what is said or done by advocates or opponents of gambling in all its various forms, it is an activity that is practiced, or tacitly endorsed, by a substantially majority of Americans." This statement, as have been proposals for legalization, has been ignored. These proposals have been rejected and, to data, casino gambling is only legal in a handful of states. Legal prohibitions against gambling have contributed to the emergence of an underground, illegal gambling sector which is not only flourishing but, continually expanding. Estimates place the total gambles illegally wagered over the past year at $48 billion. Apart from this meaning that states are losing an important, and major, source of revenues, there is a more disturbing implication. Within the parameters of an underground, black market gambling industry, the activity is unsupervised with the consequence being the participation of underage youth and the proliferation of no limits' gambling which both sustains gambling addictions and often leads to financial ruin. Through the legalization of gambling, implying the movement of an underground activity to the open, not only will states benefit from a wealthy source of revenue but the supervision of the activity by law enforcement will lead to stricter adherence to both age and ga

English Myal by Erna Brodber Essay Example | Topics and Well Written Essays - 750 words

English Myal by Erna Brodber - Essay Example Selwyn Langley, a husband of Ella, is a cruel and aggressive man who causes great emotional and psychological sufferings to Ella. The other characters are Mass Cyprus, Mass Levi, Reverend Simpson, Ole African, Anita and Miss Gatha. All of them are engaged in crimes and spiritual violence as victims or aggressors. The remarkable feature of the novel is that it is based on mixed chronological frames and double telling. Crimes have changed consciousness and personality of Ella and Anita who have to fight with spiritual 'rapists' (Mass Levi, Dan,, Selwyn). Spirituality and subconsciousness are used as frames of the beyond which is close to us but which cannot be seen by common people. Spiritual traditions and zombification force the main heroes to look for new ways and methods to change their life. Fighting with prejudices and stereotypes, Erna Brodber unveils that traditional knowledge limits understanding of the self and the world, and starts to seek for another source of her spiritual development. The most impressive theme is that some characters can steal human spirit. Atmosphere of mysticism covers the protagonists creating a feeling of secrecy and spiritual burden. "Spirit thief...taking away these people's spirit" (18). Growth and metamorphosis are the unifying themes in the novel out of which the fully reconstituted spiritual knowledge and power of beliefs emerges. To some extent, spiritual practices and their acceptance or rejection, determine the level of heroes evolution and transformations affecting their spiritual develop ment. The culture of the main characters is destroyed by spiritual monitoring and interference. Timeless presence and power of mind show that people depend upon their own fears and terrors. The theft of spirit symbolizes that people are surrounded by unknown world they try to master and subdue, but in reality they are caught by their own prejudices and superstitions which prevent them to experience the world around. On the one hand, this zombification support factitious world created by Ella and other people, but on the on the hand these beliefs symbolize narrowness of human mind and knowledge about the universe. It supports spiritual nature of Ella and represents a determinant factor of her personal development. It is possible to compare spirit with the matrix of consciousness where everything is predetermined and cannot be changed. Erna Brodber proposes a blend of native religions and Christianity. She shows that objective world is revealed to us in religion and common sense presupposes a principle or set of principles which is not itself part of this world of facts; human experience is not of a chaotic manifold but rather an awareness by an enduring subject of a unified world of objects This enables Erna Brodber to say that the manifold of experience cannot be provided independently of the mind, because only minds or consciousness can make relationships, and this is just what objectivity means. The self is indispensable to the world which it knows and thus the objectivity of the world cannot be explained naturalistically. She calls the process of self-understanding: "awakened consciousness of these new people" (110). In the novel, Erna Brodber describes a unique interpretation of God and its role in our life. It is possible to say that God embodies universal love and worship. Erna Brodber ends

Operations management, Enterprenuaship and SMEs Assignment

Operations management, Enterprenuaship and SMEs - Assignment Example Identifying the strong points that a country can lift up its economy status is vital and extremely challenging to a government in terms of how it may choose to invest. Globally, it has been proven that apart from the multinational companies that are being brought up, the small and medium enterprises (SMEs) are also effective in terms of lifting a up a country economy wise. For a country to grow in a fast track investments multinational companies should be effected but also to the SMEs that have proven effective globally. Global Entrepreneurship Entrepreneurship has proved to be current global trend in terms of the attempts to uplift economy status by most countries in the world. Clearly, entrepreneurship drives innovation and growth. For a country to have a healthy economy, the level of entrepreneurship should be high (Mwenda, 2002, 68). To boost the level of entrepreneurship is significant in both developed and the developing countries in the world, the growth of the micro-finance i ndustry is a clear example of a service whose principles were formed in the light of development ideas. Micro finance industry as an idea came about in the understanding that small-scale entrepreneurs wer kept from development due to the lack of capital. For entrepreneurship to occur there should be a better mode through which citizens of a certain country can get capital. Though entrepreneurship should be a venture of investment in any country, in developing countries, entrepreneurship is not out of choice but as simple as lack of job opportunities amongst the citizens of these countries. This can be seen in the sub-Saharan African countries such as Zambia and Rwanda. In these countries, 70% of the entrepreneurs have started small-scale businesses because they lack jobs (Freese, 2000, 25). It is estimated that SMEs contribute about 25-35% of worlds manufactured direct exports (OECD, 1997, 3). Small and Medium Enterprises (SMEs) Globally In most countries of the world, small-scale b usinesses are the driving power of the economy; this is evident mostly in the developing counties where the small-scale enterprises are established due to lack of job opportunities. In developed countries, the impact of SMEs can also be felt when it comes to how the business is conducted globally (ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, 2011, 20). The economy of the United States of America suffered a great recession and ways were devised that enabled the country get back on its foot. The strategies that were put in place by various authorities were majorly entrepreneurial, by this; the United States government ensured that the country utilized all its power and connections in terms as far as entrepreneurship goes. The United States government encouraged private investment in the Malaysia as one of the strategies to boost its economy. Malaysia has a strong economy having the third largest economy in South East Asia behind Thailand and Indonesia. Malaysia global posit ion stands at 29 with estimated gross domestic product of $492.4 billion per capita in 2009. This move by the United States proved effective as the GDP of the united state grew by 1.8% in the year 2010 (international business publications USA, 2012). Small and medium sized enterprise also form the backbone of Europe’

Managing for the future Essay Example | Topics and Well Written Essays - 5000 words

Managing for the future - Essay Example During the time of the eminent economist, concepts such as ethical decision making, corporate social responsibility (CSR) were at the budding stage, hence, most of the economists including Milton Friedman ignored the role of social responsibility for business. Over the last few decades, the importance of ethics has been increased among corporate world. Modern research scholars such as Jain (2009) and Tett (2009) criticised the immaturity in terms of ethical understanding among business leaders as the root cause behind the global crisis. The concepts like corporate social responsibility (CSR) is pretty much new for companies in emerging market and as a result, many of them are still struggling with implementation of a holistic CSR framework which can ensure social well being and environment sustainability. Visser (2010) and Velasquez (2000) argued that concept of corporate governance is generally misunderstood by business leaders because they believe that corporate governance is all a bout structure which is not correct. In such context, modern research scholars such as Waller and Conaway (2011) pointed out three important future challenges for organizations such as, 1-deploying CSR activities in comprehensive manner in most of its business verticals, 2-taking the strong leadership role by expanding business in cross cultural and country manner and 3- managing crisis in efficient manner in order to ensure smooth flow of operation. Issaksson and Jorgensen (2010) argued that companies need to work closely with their stakeholders in order to balance the environment sustainability activities and profit pooling activities. According to these research scholars, the profit-greedy mentality of organizations cannot help it to achieve sustainable growth because modern organization has to consider the effect of its operation in external environment. Du, Bhattacharya and Sen (2010) defined CSR as a commitment from corporate to ensure well being of social members and help the society to achieve inclusive growth. It is evident from the above mentioned definition that it is responsibility of companies to improve social life of people by using internal resources and good practices. Waddock (2008) even argued that companies can enhance their brand image by engaging in CSR activities which can help the company to fulfil ethical, social and environmental requirements. The researcher has selected Starbucks in order to understand how the above mentioned three factors such as CSR, globalization and crisis and catastrophe management can impact business environment of the company. After analyzing the business environment and its previous challenges for Starbucks, the study will predict future business path for the company. At first, the researcher will try to understand the business matrix of Starbucks. Starbucks-Business Matrix and Capabilities Starbucks Corporation was founded by Jerry Baldwin, Gordon Bowker and Zev Siegl during the year 1971 and the company is headquartered Seattle, Washington, U.S (Starbucks, 2012). Till date, Starbucks has established more than

Gay Rights Essay Essay Example for Free

Gay Rights Essay Essay Aubri Lutz La/Lit Per. 4 Miss Gibbs 10/22/01 Should Homosexual Clubs Be Allowed On College Campus? Do you plan on attending college? College offers a plethora of opportunities to those who choose to attend. There is horseback riding club, chess club and even Pokemon club these days. However, if a person hopes to join a club based on his or her sexual preference, think again. They are not allowed on public school campuses. It is a good idea that homosexual clubs and organizations be censored. They are offensive and inappropriate. If people try to ban clubs in college based on homosexual preference, they will be closing out many other clubs to come. For example, according to the Bible study groups, The banning of homosexual clubs is a good idea, but not a logical one. It is a step backwards for our bible study clubs, it will only cause them to lash out and close down our groups, too (www.family.org). For every club out there based on sexual preference there are one hundred clubs that focus on bible study. Since bible study clubs are just as controversial as homosexual ones, they are worried that if the banning of those clubs happens, they will be next. To empower school officials to close down and ban clubs based on homosexual preference is a marvelous thought, but it empowers them to shut down appropriate clubs like the bible study groups. In addition, the Lesbian Gay Bisexual and Transgendered group, also the LGBT has said that, Any club/organization or school discrimination against homosexual clubs and organizations will lose funding, travel funds, meeting place and right to have a club on campus immediately (www.leaderu.com//marco). This is a comfort to the clubs of homosexuals because their rights on campuses are protected. Conversely, it is a discomfort to the clubs who do not support their ideas and ways of thinking because now they are forced to at least pretend to be supportive of those clubs. This is not sensitive to the idea that this may bring about even more tensions between organizations because of the forced pretend support. So, the organizations trying to rid college campuses of the clubs based on sexual preference need to stop and think about what other clubs they could be doing damage to first. Student-led pro homosexual groups, called gay alliances, are an on-growing  disturbance and are inappropriate to have in school. For example, gay extremists are pressuring the Trustees board to oppose other minority clubs since theirs are currently being targeted. They are threatening to, take matters into their own hands if no one steps into do anything about this. This is a dilemma because one clubs being targeted is no excuse for them to be able to discriminate against others. After all, they are upset at being discriminated against. By continuing to single out groups unlike them, they are only welcoming more upon themselves. In addition, students attending Iowa Colleges who are offended by homosexual clubs and their behaviors, have voiced their comments and been completely disregarded. One student went to the board of education and stated that, clubs that promote and praise homosexuality make me feel uncomfortable as a student in this college (www.leaderu.com/marco). His comment was totally disregarded and never brought up again. That is disturbing because the only voices being heard are those which belong to the gay groups and that is not fair. It is also a problem because students who are paying for school are not being listened to and need to be in a time of controversy like this one. People need to think long and hard about whether or not they want their college kids subjected to homosexual clubs and/or organizations. The Lesbian Gay Bisexual and Transgendered group is a rapidly growing group across the country. They are fighting for the rights of Lesbians Gays Bisexuals and Trangendered people. For example, the LGBT have voiced their opinions loud and clear, We are just like everyone else and deserve clubs to prove it. The struggle of the LGBT has moved to center stage since 1994, they are fighting for their individual rights on campus as well as in the classroom. Lesbian Gay Bisexual and Transgendered group have caused quite a stir on college campuses and that is affecting all other students learning. They need to quit. The affect it is having on bi-stander students is neither fair nor appropriate. Furthermore, We are no different than all the other student who wander this campus. Said by James Anderson, a student in Colorado. Another students first question was, Then why do you need your own club on campus? Its the LGBT population saying things like that that get other students confused. Students who do not attend homosexual clubs are forced to watch rallies in the union about things they dont  completely understand and that is not fair to them. People who choose to attend college do not need to be subjected to this whole ordeal, it should be fought somewhere besides school campuses. Clubs that applaud sexual preference and behavior are unnecessary on public school campuses. These sexual preference based organizations only cause strife and confusion for students. Since these clubs are only applicable to a small minority population of students, they are hard to support and condone; this causes tense situations.

Intermarriage - opposition Essay Example for Free

Intermarriage opposition Essay Marshall Sklare was able to articulate the fears of many older Jews and he wrote: Intermarriage (and its sociodemographic consequences) can no longer be treated as marginal when it is the result of a deep-rooted sociopolitical ideology and value structure and a function of lifestyle, residential pattern and educational and occupational structure The intermarriage issue has become central to the internal struggles of American Jewry (1982, p. 37). Aside from the fact that the older generation seemed to be in a perpetual survival mode of existence, keeping to themselves to continue Jewish values and traditions, there is a deeper reason why many are opposed to the idea of exogamy. Steven Bayme explains that the rise of intermarriage is a threat because it can only mean the, â€Å" decline of Jewish commitment, a weakness in Jewish identity, a failure of Jewish education and the Jewish family to bring about the commitment to Jewish continuity † (2002, p. 226). If this is true then it will just reveal the error of their ways. This is because suppressing the symptoms will not make the sickness go away. If the symptom for impiety and the shortcomings of a flawed educational system is the high rate of intermarriage then opposing exogamy will not change the fact that there is problem with Judaism. Traditionalists made their opinions known; that they do not agree to intermarriages but this seems to be an idea suited for past generations who cannot see the possibility of compromise in the land of the heathen. A popular 1950s joke regarding this matter was an accurate depiction of how parents felt about their children marrying non-Jews. The following dialog is between a young Jewish soldier coming home from the Korean War and his mother. Before the young man left Korea he calls his mother to inform her about the good news (Shapiro, year, p. 233). Son: I have survived the war without being wounded. Mother: That is good. Son: I am bringing home a Korean wife Mother: That is also good. Son: We dont have a place to live. Mother: Thats okay. You can stay in my apartment. Son: But you live in a one-bedroom apartment. Mother: Thats no problem. After I put the phone down I am going to jump out of the window, and you will have the entire apartment to yourself. According to Bayme, when it dawned upon the Jewish community that intermarriage is snowballing into something that can overwhelm them, the reaction was radical and aimed at the jugular to forcibly stop the perceived madness and he adds: When the first news of the growth of intermarriage occurred, communal leaders responded with agony and handwriting. Virtually all Jewish organizations passed resolutions and statements signaling opposition to intermarriage. Conferences were held about what we can do in the face of this tidal wave (2002, p. 226). Calvin Goldsheider pointed out that even as late as the 20th century the reaction was fairly dramatic. Opposition to the marriage was made plain by, â€Å" Jewish mourning rituals of sitting shiva or reciting kaddish † (2004, p. 29). It must have been a disconcerting sight for a son to see his parents lamenting his decision to take a bride not from his people. Rising Tide But it seems that no matter what type of measures was put in place to discourage interfaith marriages; more and more Jews chose to be joined with a non-Jew. It is therefore understandable that others may conclude rebellion to the norms and traditions of Judaism as the number one culprit. But more and more studies claim the contrary. In fact Shapiro remarked the traditional scape goat for the high rate of intermarriage no longer applies. Marshall Sklare, a noted sociologist on American Jewry, warned that, â€Å" attributing intermarriage among Jews to self-hatred, cowardice in the face of anti-Semitism, or social climbing misread its etiology because marriages with Gentiles increased while anti-Semitism was dwindling and many of the social traditional status distinctions were being swept away† (as qtd. in Shapiro, 1992, p. 235). Bayme supports the finding of Shapiro and Sklare and was very practical in his approach for he said that differences in religion are not a significant consideration to young couples of today. Bayme also added that American society values romantic love more than it values differences in religious beliefs. And to top all that Jews are contending with an unexpected external force, â€Å" 87 percent of Americans welcome marriage to a Jew † a rather surprising revelation considering what the Jews had to endure for centuries (2002, 226). Now if the reasons for the rising rate of interfaith marriages can be explained in terms of love, openness, acceptance and the realization that every human being is created equal in the sight of God then what kind of community will dare go against universally accepted principles? More so, what kind of community will have the resolve to continually fight for exogamy in the face of a â€Å"love† assault? Surely, only a few can resist the advances of a determined lover and that may well be the number one reason why this crisis – at least in the eyes of Jewish elders – could not be contained. Resolution Marshall Sklare minced no words in asserting that there are only two definitive actions that can be used to settle the issue: 1. Change the social structure and value orientation of the American Jewish community; or 2.accommodate and accept the intermarried (1982, p. 37). Since option no. 1 is clearly unacceptable then the Jewish people are only left with one choice and it is to go out and welcome the non-Jew spouse into Jewish life. This is a view espoused by Calvin Goldscheider who believes that it is a blessing in disguise and contrary to antiquated and popular opinion the high rate of intermarriage will ensure the survival of the Jewish race both in numbers and in cultural distinctiveness. A seemingly incompatible set of ideas considering the nature of Jewish life. Goldscheider summarizes his argument into the following statements: The key indicators of an ethnic communitys strength, however, are not who marries whom, but the activities that their grandchildren engage in. A groups continuity depends on the ethnic and religious commitments of the family. Focusing on families and the ethnic commitments of the young redirects questions about assimilation away from biology and marriage and toward economic activities, cultural obligations and how parents pass on traditions to their children. In this regard, the American Jewish community is surviving, maybe even thriving† (2003, p. 282). Goldscheider arrived at the aforementioned conclusion as a consequence of the following research findings: ? The decline of the American Jewish community is a product of exaggeration and sensationalization of the facts; ? Interfaith marriages were assumed to result in complete and immediate conversion of the Jewish partner into non-Jewish religion, practices, and customs;? the terms used to define modern day Jews were biased towards the already assumed conclusion that there is a significant decline in their numbers; ? The numbers did not add up considering that there is a significant number of non-Jewish spouses who convert to Judaism, or informally integrate into the community and follow Jewish customs and traditions; and ? previous studies did not account the fact that in many intermarriages the intermarried couples decided that their children will grow up as Jews or at least encourage them to practice Jewish customs and traditions.

Non-Audit Services (NAS) Impact on Auditor Quality

Non-Audit Services (NAS) Impact on Auditor Quality The provision of Non-Audit Services (NAS) by auditors to their audit clients reduces total costs, increases technical competence and motivates more intense competition. However, the recent corporate collapses in the US, Australia and elsewhere, was surprising our attention. The issue of Enron arouses great concerns on corporate governance revealing the audit independence problem when CPAs provide audit and NAS for the same clients. In the view of the fact, now a days because of NAS, the audit practice is questionable, whereas third parties believe that without independence, there is no value for accounting and auditing practices (Salehi, M., 2009). Therefore, regulatory has been drawn to the issues of auditor provided NAS and audit quality. In fact, these services do not necessarily damage auditor independence or the quality of NAS. Because of that, this paper contributes to seen the impact of NAS on auditor quality. INTRODUCTION OF NON-AUDIT SERVICES Traditionally, audits have provided Certified Public Accountant (CPA) firms with a large percentage of their overall revenues. However, for many years consulting services constituted a relatively minor portion of the firms revenues. In recent years, firms have expanded the scope of services they offer to audit and other clients such as NAS. Today NAS provided more than 50 percent (%) or more of the total revenues earned by the CPA firms. As Accounting Today in USA (2001, April) states, the income of accounting firms in 2000 showed that the proportion of international and national assurance service was 35%, whereas that of tax advisory service and management advisory service accounted for 21% and 44% respectively. It shows that management advisory service has become the source of total income of accounting firms. NAS generally refer to the services above or beyond the related audit services or services other than traditional CPA work. Many scholars in their studies use different terms for some relevant issues, namely Management Advisory Services (MAS) and Management Consulting Service (MCS). According to Purcell and Lifison (2003), NAS as traditional CPA works including assurance, investment assurance, commerce registration and accounting affairs, tax advisory service, management advisory service, finance and investment advisory service, public offering, mergers and acquisitions services, information technology advisory service and others. However, there are three basic principles of the prohibition of specified NAS is predicated: An auditor cannot function in the role of management; An auditor cannot audit its own work; and An auditor cannot serve in an advocacy role for its client. Most of the firms growth comes from NAS that CPAs provide for their clients when dealing with auditing affairs (Purcell and Lifison, 2003). So, what the motivation and attraction in provision of NAS to companies? Firth (1997a) contends that companies usually entrust outside consultants/firms for service in the following situation: One-off assignments Urgent problems Expert techniques Arbitrating initial disputes Seeking advise Decrease the risk overall management The economic causes for offering NAS include; Growth opportunities Personnel attraction and retention Meeting clients needs Risk diversification opportunities The Sarbanes-Oxley Act 2002 states that NAS provided to a client should not be more than 5% of the total auditors remuneration; otherwise, the client must obtain pre-approval from its audit committee, as non-audit fees paid in excess of this percentage would deem the auditor as not being independent. In Malaysia, under Malaysian Institute of Accountant (MIA) suggests that audit firms should not accept any appointment if they are also providing NAS to a client; whereby the provision of NAS would create a significant threat to their professional independence, integrity and objectivity. Effective June 1, 2001, Bursa Malaysia (previously known as Kuala Lumpur Stock Exchange or KLSE) requires all listed companies to disclose non-audit fees in their annual reports. This is to protect shareholders interests and to increase corporate transparency. Consistent with the practices in other Commonwealth countries such as Australia and the United Kingdom (UK), which also have made it a requirement that non-audit fees of listed companies to be disclosed in the annual report. THE ISSUES OF NON-AUDIT SERVICES The main question/issue that arises when auditors provide or could provide both audit and NAS is whether the auditors are able to conduct their audits impartially, without being concerned about losing or failing to gain additional services, and the subsequent economic implications for the audit firm (Lee, 1993). Auditors seek to provide NAS because of the considerable economies of scope that ensue, i.e. cost savings that arise when both types of service are provided by the same firm. However, the result from several researchers show that the joint provision of audit and non-audit services gives rise to economic rents, which create incentives for audit firms to compromise their objectivity, e.g., waive audit adjustments, to retain audit clients (Palmrose 1986; Simunic 1984). For disclosure of NAS, investors should have enough information to enable them to evaluate the independence of a companys auditors. The proposed rules would bring the benefits of sunlight to the auditor independence area by requiring companies to disclose in their annual proxy statements certain information about, among other things, the NAS provided by their auditors and the participation of leased personnel in performing the companys annual audit. Generally a company required to disclose the fee paid for each NAS performed by its auditor and the fee charged for the annual audit. An exception to these general disclosure requirements is that issuers would not have to describe a NAS, nor disclose the fee for that service. In NAS and its independence, England and Australia have asked companies to publish audit and NAS fee in their annual financial report. According to Dopuch et al (2003) found that disclosure of NAS reduced the accuracy of investors beliefs of auditors independence in fact when independence in appearance was inconsistent with independence in fact. THE EFFECT OF NON-AUDIT SERVICES The dramatic increase in the nature, number, and monetary value of NAS that accounting firms provide to audit clients seen may affect their independence. Accordingly, the proposals specify certain NAS that, if provided by an accounting firm to an audit client, impair an auditors independence. Sami and Zhang (2003) investigated the effect of non-audit services on the backdrop of SECs revised rule that stressed perceived audit independence. They suggested that investors perceive that NAS impair auditors independence. According to Defond et.al. (2000) regulators are concerned about two effects of NAS. One is a fear that NAS fees make auditors financially dependent on their clients, and hence less willing to stand up to management pressure for fear of losing their business. The other is that the consulting nature of many NAS put auditors in managerial role. From the SEC regulations mandating fee disclosures (SEC, 2000), Auditors services relationship raises two types of independence concerns. First, more the auditor has at stake in its dealing with the audit client, particularly when the NAS relationship has the potential to generate significant revenues on top of the audit relationship. Second, certain types of NAS, when provided by the auditor, create inherent conflicts that are incompatible with objectivity. While, according to Firth (1997b), synergy would occur between auditor and auditee when an accounting firm provides audit and NAS simultaneously and consequently it would influence independe nce of auditor. Simunic (1984) indicates that CPA providing NAS would decrease the possibility for presenting the true financial statements and would influence the users of the statements on the recognition of CPA independence. It would further affect audit quality, the reliability of financial statements and the judgment of decision-making. How NAS Can Affect Auditor Independence? The dramatic expansion of NAS may fundamentally alter the relationships between auditors and their audit clients in two principal ways. First, as auditing becomes an ever-smaller portion of a firms business with its audit clients, auditors become increasingly vulnerable to economic pressures from audit clients. Large non-audit engagements may make it harder for auditors to be objective when examining their clients financial statements. Under any circumstances, it can be difficult for an auditor to make a judgment that works against the audit clients interest. Where making that judgment may imperil a range of service engagements of the firm, of which the audit is a fairly small part, it may be unrealistic to expect that an auditor can ignore completely what the firm stands to lose by the auditors action. Second, certain NAS, by their very nature, raise independence issues. Providing certain NAS to an audit client can lead an audit firm to have a mutual or conflicting interest with the client, audit its own work, advocate a position for the client, or function as an employee or management of the client. However, not all NAS pose the same risk to independence. Only these specific NAS that impair independence, namely: Bookkeeping or other services related to the audit clients accounting records or financial statements of the company. The prohibited services are: (a) Maintaining or preparing the companys accounting records; (b) Preparing the financial statements or the information that forms the basis of the financial statements that are required by the company and; (c) Preparing or originating source data underlying the companys financial statements. Design and implementation of financial information systems that aggregate source data or generate information that is significant to the financial statements taken as a whole, unless it is reasonable to conclude that the results of these services will not be subject to audit procedures during the audit of the companys financial statements. This rule does not preclude the external auditors from working on hardware or software systems that are unrelated to the companys financial statements or accounting records. Appraisal or valuation services, fairness opinions or contribution-in-kind reports or other opinions or reports in which the external auditors provide an opinion on the adequacy of consideration in a transaction, unless it is reasonable to conclude that the results of these services will not be subject to audit procedures during the audit of the companys financial statements. This rule does not prohibit the external auditors firm from providing such services for non-financial reporting purposes (e.g., transfer pricing studies, cost segregation studies and other tax-only valuations). Actuarial services involving amounts recorded in the financial statements and related accounts for the company where it is reasonably likely that the results of these services will be subject to audit procedures during an audit of the companys financial statements. This prohibition extends to providing the company with any actuarially-oriented advisory service involving the determination of amounts recorded in the financial statements and related accounts for the company other than assisting the company in understanding the methods, models, assumptions and inputs used in computing an amount. Internal audit outsourcing services relating to the internal accounting controls, financial systems or financial statements of the company. This prohibition on outsourcing does not preclude the external auditors from providing attest services related to internal controls, evaluating the companys internal controls during the audit or making recommendations for improvements to the controls, or management from engaging the external auditors to perform agreed-upon procedures engagements related to the companys internal controls. Management functions. This rule prohibits the external auditors from acting, temporarily or permanently, as a director, officer or employee of the company or performing any decision making, supervisory or monitoring function for the company. However, the external auditors may assess the effectiveness of the companys internal controls and recommend improvements in the design and implementation of internal controls and risk management controls. Human resources functions. The external auditors may not seek out prospective candidates for managerial, executive or director positions, act as negotiator on the companys behalf such as determining position, compensation or fringe benefits or other conditions of employment or undertake reference checks of prospective candidates. The external auditors may also not engage in psychological testing or other formal testing or evaluation or recommend or advise the company to hire a specific candidate for a specific job. Broker or dealer, investment adviser, or investment banking services. The external auditors are prohibited from serving as promoter or underwriter, making investment decisions on behalf of the company or otherwise having discretionary authority over the companys investments, or executing a transaction to buy or sell an investment of the company, or having custody of assets of the company. Legal services that could be provided only by someone licensed, admitted or otherwise qualified to practice law in the jurisdiction in which the service is provided. Expert services in an advocacy capacity unrelated to the audit. This precludes engagements that are intended to result in the external audit firms specialized knowledge, experience and expertise being used to support the audit clients positions in adversarial proceedings. This prohibits the external auditors from providing expert opinions or other services to the company or a legal representative of the company for the purpose of advocating the companys interests in litigation, or regulatory or administrative investigations or proceedings. This rule does not however preclude the company from engaging the external auditors to perform internal investigations or fact-finding engagements including forensic work and using the results of this work in subsequently initiated proceedings or investigations. Any other service that the Audit Committee determines is impermissible. According to Zulkarnain (2006), in Malaysia, scholars reported that only a small number of the shareholders and auditors that participated in their study believed that NAS provision increased their confidence in auditor independence. On the other hand, Teoh and Lim (1996) found that the provision of NAS was ranked as the second most important factor that undermines auditor independence. Arrunada (1999) pointed out that joint provision of audit and NAS would reduce overall costs, raises the technical quality of auditing, enhance competition and need not prejudice auditor independence or the quality of NAS, which would ultimately increase auditor independence (Goldman and Barlev, 1974). Based on the standard organization analysis, Arrunada (1999) showed that cost savings gained from the joint provision of audit and NAS will be transferred to customers as a decrease in price in both markets, and also that the provision of NAS would result in an increase in client- and firm-specific assets, where firm-specific assets would always have a positive effect on independence. This argument is supported by Grout et al. (1994), who argued that permitting auditors to perform joint services would reduce auditors dependence on a single client and encourage them to diversify as a consequence. Opponents to the joint provision of audit and NAS claimed that auditors would not perform their audit services objectively and that joint provision would impair perceived independence because ultimately they would be auditing their own work or acting as management (SEC, 2001), and managements power over the auditor could be increased due to auditors reliance on fees received (Canning and Gwilliam, 1999). Thus, it may influence their mental attitude, impartiality and objectivity, and independence of thought and action (Flint, 1988). The year 2002 had seen the biggest corporate collapses in the United States history that have raised lots of questions regarding auditors independence. For example, Arthur Andersen, being the auditor of the three biggest bankruptcies, Enron, WorldCom and Global Crossing, was heavily criticized for the collapses. It is said that Andersen was purportedly stressing more on non-audit services (NAS) than the audit itself. Auditing profession as a whole has been badly blamed for the collapses and changes were being proposed to ensure that audit firms reduce their over-reliance on NAS (The Star, 2002). As a result, to ensure the independence of auditors and to protect the interest of investors, the accounting profession in most countries has come up with a code of ethics as a guidelines for auditors competency and independence. In Malaysia, under MIA rules that become effective January 15, 2002, professional independence is considered impaired if total fees arising from provision of NAS to a client is 20% or more of the audit firms total annual fees received for two or more consecutive years. Before 2001, the regulators in Malaysia emphasized only on the disclosure of audit fees in the companies annual reports, as required by the Companies Act 1965. Several studies have examined whether the provision of non-audit services impairs audit quality. However, the previous studies report seems conflict in the results depending on the proxy of audit quality used. Teoh and Lim (1996) found that the disclosure on non-audit fees would influence and impair audit independence. A survey done by Gul and Teoh (1986) in Malaysia, suggests that the provision of NAS reduces public confidence in auditors independence. The auditor can be interpreted to compromise its independence if the provision of NAS is significantly tied to the issuance of clean audit opinion. Wines (1994) found that the auditors of those companies that received clean reports over the period derived a significantly higher proportion of their remuneration from NAS fees than the auditors of companies that received at least one audit qualification. This finding suggests that auditors are less likely to give qualified reports to clients financial statements when high levels of NAS f ees are involved. Firth (2002) found that companies that have relatively high consultancy fees are more likely to receive a clean audit opinion due to the non-audit work clearing up problem areas at the client company; or it might be due to high consultancy fees, thus impairing auditor independence. Ayoib, Rohami and Nor (2006) suggests that non-Big Five auditors are less independent when issuing audit reports for NAS purchased companies. This is also consistent with the preposition that large auditors are more independent than smaller auditors (DeAngelo, 1981). The results imply that audit opinion is dependent on the amount of NAS fee. It could be argued that small auditors could not resist against management pressure when issuing qualified opinion. Frankel, Johnson and Nelson (2002) suggest that their results provide evidence that auditor independence is compromised when clients pay high nonaudit fees relative to total fees. Securities and Exchange Commissions (SEC) concern about the growth of nonaudit fees relative to audit fees during the 1990s (e.g., see Levitt 2000). The SECs concern that the growth in the provision of nonaudit services compromises audit firm independence is based on the premise that the provision of nonaudit services increases the fees paid to the audit firm thereby increasing the economic dependence of the audit firm on the client. Based on the use of discretionary accruals and earnings benchmarks as proxies for biased financial reporting, Hollis, Ryan and Brian (2003) find evidence supporting the claim that auditors violate their independence as the result of clients paying high fees or having high fee ratios. DeAngelo (1981) models that as the economic bond between the audit firm and client increases the audit firms dependence on the client increases. Nonaudit fees further increase the client auditor bond by increasing the portion of audit firm wealth derived from a client (Simunic 1984; Beck et al. 1988). Nonaudit fees can also threaten independence when clients use them as contingent fees. Magee and Tseng (1990) note that while contingent fees are explicitly prohibited by audit standards, clients can create contingent fees by withholding profitable nonaudit services when the auditor does not allow the client to report its preferred financial condition. Costs and Benefits of Restricting Certain Non-Audit Services (proposals by SEC) There is increasing concern that the growth of NAS provided to audit clients affects the independence of auditors. If investors lose confidence in auditors ability or willingness to provide an unbiased and impartial examination of companies financial statements, then investors trust in the reliability of publicly available financial information, and in the integrity of the securities markets, may be damaged. Currently, accounting firms may not provide certain services to their audit clients without impairing their independence. The Securities Exchange and Commission (SEC) proposals extend and clarify those restrictions that should be used to evaluate the effect of NAS on an auditors independence and by designating certain NAS that if performed by an auditor for an SEC registrant that is an audit client, impair the auditors independence. The SECs proposals on the provision of NAS may affect to: 1. Benefits (a) Investors. For the reasons explained above, the SEC believes that the proposals will enhance auditor independence and thereby enhance the reliability and credibility of financial statements of public companies. SEC expect these benefits to inure primarily to investors who, if the proposals are adopted, should be able to review public companies financial statements with greater assurance that reliance on the statements will lead to more informed investment decisions. (b) Public Accounting Firms. SEC anticipates that the proposals will confer two primary benefits on public accounting firms: The proposals should clarify what NAS may be provided to an audit client without jeopardizing auditor independence. The proposals could improve competition in the market for the provision of NAS by public accounting firms. Because the restrictions on providing NAS to an audit client would apply equally to all accounting firms, the overall impact of the proposed restrictions may be to re-distribute the restricted NAS among the public accounting firms. 2. Costs SEC proposals on NAS may impose costs on issuers and public accounting firms. (a) Issuers. The proposed amendments have the effect of restricting issuers from purchasing certain NAS from their auditors. (b) Public Accounting Firms. Some public accounting firms provide a wide variety of services both to audit and non-audit clients. Our scope of services proposals is likely to affect these firms in several ways. The primary cost for these firms is that they individually may lose one source of revenue because they will no longer be able to sell certain NAS to their audit clients. CONCLUSION In conclusion, evidence suggests that although auditors have market based incentives to remain independent, auditor independence may be threaten when an auditor provide NAS to their clients and is reasonable that the NAS actually impair independence and quality of auditor. Hillison and Kennelley (1988) had recommended three additional alternatives to a total prohibition of NAS provision to audit clients: Offer NAS to non-audit clients only, Prohibit certain types of NAS, or Permit all types of NAS with full disclosure requirements. However, some professional and academic seen it seemed not much enough to protect auditor independence and It would further affect auditor quality. Thus, national and international professions should be redefined accounting and auditing regulation as well as scanted new regulation regarding to NAS and giving clear picture about that services to auditors as well as investors and heavy penalties, to whom overriding these regulation.

Comparing Power and Freedom in Invisible Man and Notes From Underground

Comparing Power and Freedom in Invisible Man and Notes From Underground      Ã‚  Ã‚   The quest for power is an endless one for humanity.   Countless tales of greed, strife, and triumph stem from this common ambition.   Similarly, men universally seek freedom, a privilege entitling an individual to make independent decisions and express personal opinion.   Exploration of the connection between these two abstract concepts remains a topic of interest, especially in the works of Ralph Ellison's Invisible Man and Fyodor Dostoevsky's Notes From Underground.   Two distinct definitions of "power" exist: one deals with societally defined power, generally represented by wealth, leadership, and authority over the lives of others.   The other defines a power within oneself, in which an individual gains a true picture of his human condition and relationship to society.   In Invisible Man, the protagonist enters a Negro college, only to be expelled to New York.   He then begins a career with the Brotherhood, a group to promote civil rights and support bl acks. The narrator of Notes From Underground outlines a series of autobiographical recalled events that comprise the background for his philosophy concerning the human condition and freedom.   Both Invisible Man and Underground Man, in their direct conflicts with power inequality, illustrate the universal human conflict in the pursuit of power.   In each protagonist, heightened awareness of their human condition onsets a retreat underground to compile notes on the nature of power and freedom.   Both conclude that freedom arises as a result of self-awareness and of ability to both recognize and accept a powerlessness of self amidst oppressive societal power.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Invisible Man's first major encounter ... ...on.html Bakhtin, Mikhail. Problems of Dostoevsky's Poetics. Ed. and trans. Caryl Emerson. Introd. by Wayne C. Booth. Theory and History of Literature. Minneapolis: U. of Minnesota Pr., 1984. Dostoevsky, Fyodor. Notes from Underground: A New Translation, Backgrounds and Sources, Responses, Criticism. Norton Critical Edition. New York: Norton, 1989. Ellison, Ralph. Invisible Man. New York: Vintage Books, 1952. Fabre, Michel. "In Ralph Ellison's Precious Words." Unpublished Manuscript. 1996. Accessed 30 November 2001. http://www.igc.org/dissent/archive/ Ellison/early.html Howe, Irving. "Review of: Ralph Ellison's Invisible Man" Pub. The Nation. 10 May 1952. 30 November 1999. http://www.english.upenn.edu/~afilreis/50s/howe-on-ellison.html. O'Meally, Robert, ed. New Essays on Invisible Man. Cambridge; New York: Cambridge University Press, 1988.

Free Catch-22 Essays: The Character of Yossarian :: Catch-22

The Character of Yossarian in Catch-22 The main character in Catch-22, which was written by Joseph Heller in 1960, was Captain John Yossarian, a bombardier in the 256th Squadron of the U.S. Army Air Force during WWII. Yossarian's commanding officer, Colonel Cathcart, wanted a promotion so badly that he kept raising the number of missions the men in his squadron were required to fight. Yossarian resented this very much, but he couldn't do anything about it because a bureaucratic trap, known as catch-22, said that the men did not have the right to go home after they completed forty missions (the number of missions the Army demands they fly) because they had to obey their commanding officers. Yossarian was controlled by the higher authority like the doctors restrained Joe. The whole novel was basically about how Yossarian tried to fight catch-22. Yossarian can be seen as an anti-hero. Many of his actions could be considered immoral or cowardly. For example, in the hospital, he forged and tampered with letters he censored. Whenever he was overwhelmed by the horrors of war and by memories of his friends' deaths, he created symptoms that got him admitted to hospitals. He also made repeated attempts to be judged as certifiably insane so that he could be discharged. In the end, Yossarian deserted the Army and fled to Sweden, the only place he knew to be safe and sane. However, Yossarian also possessed traits we would expect to find in a hero. He was intelligent. For example, he knew enough about world literature to identify himself with heroic loners from all kinds of classics. He had few illusions, unlike Pip and Henry. For example, in cadet training, Clevinger thought Lieutenant Scheisskopf really wanted suggestions, but Yossarian knew Scheisskopf didn't mean it. He was respected, admired, and liked by others. For example, Dobbs would not carry out his plot to kill Colonel Cathcart unless Yossarian approved. Milo admired Yossarian and asked him for business advice. The chaplain also liked Yossarian enough no to speak up when he recognized a "Washington Irving" forgery as Yossarian's. In many ways, Yossarian was also a very moral person. For example, he turned down the hero deal (his irritated commanding officers offered to send him home as a hero if he would praise them publicly). He did not sleep with a woman unless he was in love with her, unlike Odysseus who was unfaithful to his wife in order to save him and his men.

Music on the Internet and Copyright Infringement :: Web Music Industry Essays

Abstract Millions of users worldwide use online file swapping services, in order to download free music. Record companies, needless to say, are not very happy about this, neither are many musicians. This paper presents the historical and legal background of this subject. Then, it discusses the morality of such free music services, based on two major ethical theories: consequentialism and contractianism. Introduction The Audio Home Recording Act (AHRA) [1], states: â€Å"No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings.† The above indicates that individuals can make copies of music recordings for personal noncommercial use and cannot be sued for copyright infringement [2]. In 21st century terms, it can be argued that downloading MP3 files containing music for personal use is not illegal. Napster lawyers thought so too. This argument was used by Napster’s lawyers as one of the two lines of defense at the lawsuit filed against Napster by The Record Industry Association of America (the RIAA) [3]. Unfortunately for Napster, the judge ruling was in favor of the RIAA, and eventually it brought Napster down. Napster was a pioneer in the area of file swapping over the Internet. The Napster web site made available the software necessary for the Peer-to-Peer (P2P) file transfer to work. People used it primarily for copying MP3 music files, thus avoiding the need to actually purchase recorded music. Napster quickly became a very popular web site with a 15 million registered users in less than a year, according to company sources. However, Napster’s remarkable success was not at its best interest. It had drawn the attention of the Record Industry, and raised its concerns of Copyright infringement in large volumes. Barely a year after its launch, it was sued by the RIAA, which represents major recording companies such as Universal Music, BMG, Sony Music, Warner Music Group, and EMI. The RIAA claimed that by allowing users to swap music recordings for free, Napster’s service violated Copyright laws. Eventually, the judge ruled against Napster, and, failing to complete the sale deal with Bertelsmann AG, it had to shut down its operations and liquidate its assets [3].

Construction Management Essay

a. (1) Stanley’s focus is on maximizing profits. This is the correct goal because the goal of anyfirm, and therefore its financial manager, should be to maximize its value and by extensionthe wealth of the shareholders. (2) There is potential for an agency problem if Stanley decides to go ahead and invest in thesoftware developer. This investment will cause a temporary decrease in the earnings per share (EPS) of the firm which will mean fewer earnings at the present time for thestakeholders. This may be a problem if the goal of the shareholders is to gain moneysooner than later. However, it the goal of the shareholders is simply to maximize wealth,there may not be an agency problem since the goal of the financial manager, Stanley, is the same as the shareholders’. b. Since there is no preferred stock; Earnings available for common stockholders= Net Profit After Taxes No of shares of common stock outstanding = 50 000 EPS = NPAT/ no. of shares of common stock outstanding EPS show a steady increase over the past five years indicating that Stanley is achieving hisgoal of maximizing profits. c. Operating Cash Flow (OCF) for 2012OCF = {Earnings Before Interest and TaxesÃâ€"(1– Tax rate)} + Depreciation OCF = {EBIT Ãâ€" (1– T)} + Depreciation = {$89 000 Ãâ€" (1 – 0.20)} + $11 000 = $82 200 Free Cash Flow (FCF) for 2012 FCF = OCF1– Net Fixed Assets Investments – Net Current Assets Investment FCF = OCF – NFAI – NCAI NFAI = Change in net fixed assets + Depreciation= ($132 000– $128 000) + $11000 = $15 000 NCAI = Chance in current assets – Change in (Accounts Payable + Accruals) = ($421 000 – $62 000) – {($136 000 + $27 000) – ($126 000 + $25 000)}=$47 000 FCF = $82 200 – $15 000 – $47 000 = $20 200 Both the operating cash flow and the free cash flow are positive indicating that Stanley wasable to generate adequate cash flow to cover both operating expenses and investments inassets. There was also $20 200 left over to pay to investors. a. (1) Upon what financial goal does Stanley seem to be focusing? Is it the correct goal? Why or why not? Stanley seems to be focusing on profit maximization, in another word the EPS performance. It is not the correct goal, as profits do not necessarily result in cash flows available to the stockholders, only when earnings increases are accompanied by increased future cash flows would a higher stock price be expected, therefore the stockholders’ wealth would be maximized. (2) Could a potential agency problem exist in this firm? Explain. There is a potential agency problem exist in this firm. First of all, he owns only 40% of the firm, but he manages actively all aspects of its activities and the other stockholders are not active in management of the firm, so he is an agent of the other owners. Secondly he is reluctant to take more than moderate risk, which might jeopardize his goal of profit maximization and reduce his personal wealth, so there is a conflict between owner wealth maximization and his personal goals. Scri Bd: (a) Upon what financial goal does Stanley seem to be focusing? Is it the correct goal? Why or Why not? The financial goal that Stanley seems to be focusing on is maximizing the profitability of Track Software Inc. which is apparent in years 1997 to 2003 increases in net profit from ($50,000) to $48,000 respectively. His financial goal of profit maximization was also evident in his hesitance to hire a software developer because this would result in a salary cash outflow of $80,000 per year and lower the Earnings Per Share(EPS) in years to come. Par:(1)Stanley is focusing on maximizing profit, as shown by the increase in net profits over theperiod1997 to 2003. His dilemma about adding the software designer, which would depress earnings for the near term, also demonstrates his emphasis on this goal .Maximizing wealth should be the correct goal for a financial manager. Wealth maximization takes a long-term perspective and also considers risk and cash flows .Profits maximization does not integrate these three factors (cash flow, timing, risk) in the decision process (2) An agency problem exists when managers place personal goals ahead of corporate goals. Since Stanley owns 40% of the outstanding equity, it is unlikely that an agency problem would arise at Track Software A. Maximization of shareholder wealth, which means maximization of share price,should be theprimary goal of the firm. Unlike profit maximization, this goalconsiders timing, cash flows, andrisk. It also reflects the worth of the owners’investment in the firm at any time. It is the value theycan realize should theydecide to sell their shares. B. Yes, there appears to be an agency problem. Although compensation for management is tied toprofits, it is not directly linked to share price. In addition,management’s actions with regard topollution controls suggest a  profitmaximization focus, which would maximize their earnings,rather than an attemptto maximize share price Eco Plastics Company ECO Plastics Established in 2000, ECO Plastics Ltd is the UK’s leading and highest quality plastic bottle recycler producing plastics for soft drinks and milk bottles. Challenge In March 2011, the company signed a ten-year joint venture deal, a first in the UK drinks manufacturing industry, to supply the global enterprise with high quality food-grade recycled material (rPET). In order to achieve Coca-Cola’s target of including 25% rPET in all plastic packaging within Great Britain by 2012, ECO Plastics needed to expand their premises. Jonathan Short, Managing Director of ECO Plastics Ltd said, â€Å"We were thrilled to sign the joint venture deal with a company of the calibre of Coca-Cola and begin the next important step for our business. All we needed to do was secure the additional capital required to expand our premises and fund our operations.† Solution ECO Plastics approached a number of finance providers but found that due to the economic climate, lending was restricted. â€Å"It was difficult at first to find the financial backing we needed to expand our business and meet the needs of our exciting venture with Coca-Cola,† said Mr. Short. â€Å"We approached Close Brothers and discussed a structured finance solution, tailored to meet our specific business requirements. The deal was primarily a leasing contract, secured against our existing assets which incorporated invoice finance to fund our operations during the expansion.† Result The combined asset-based financial platform of  £18million provided by Close Brothers Invoice Finance and Close Brothers Leasing supported the construction and operation of the expansion to ECO Plastics’ processing plant, which completed in 2012. â€Å"Without Close Brothers, we would have been unable to fulfil our agreement with Coca-Cola which would have not only been devastating to our business, but to the industry as a whole,† said Mr. Short. â€Å"Working with Close Brothers has afforded us with the opportunity to expand our business and realise our true growth potential as we continue to  work toward becoming the world-leader in sustainable packaging.†