Week 5 chapter 13-15 questions Assignment Example | Topics and Well Written Essays - 500 words

Week 5 chapter 13-15 questions - Assignment Example The origins of this concept is traced by to 1845 when journalist John OSullivan first used the United States Magazine, and Democratic Review, where he expressed the need to annex Texas to ensure the expansion of the American territorial boundaries. At the time, the journalist was reportedly protesting that England and France were meddling too much in the American affairs, something that he did not like. The term then grew in popularity and became a political word after that (Brands et al., 2012). The 1850s Compromise was the legislations that were proposed to help resolve the dispute that arose regarding slavery and the territorial boundaries just after the Mexican-American war. Some of the key provisions of the Compromise include the proposal that California be admitted as a free state to the Union. The second provision was that the part of Mexican that had not seceded be subdivided into two territories namely Utah and New Mexico and that these territories be free of slavery. Thirdly, the Compromise proposed complete abolition of the slave trade in the District of Colombia. Fourthly, the Compromise contained the Fugitive Slave Act, which required all Americans to assist the slaves that had returned. Lastly, the Compromise had a provision requiring Texas to give up parts of the western land which it had earlier claimed and received approximately $10 billion to help settle the national debt (Brands et al., 2012). Following the case of Dred Scott v. Sandford in which Scott sued for his freedom after the Missouri Compromise had prohibited slavery, Justice Taney ruled against Scott arguing that not American regardless of whether slave or free could be an American citizen. In fact, the judge continued to argue that Scott could still not have won even if he were to be a legal plaintiff. This ruling favored the sectionalism in the sense that it meant that slavery would still be practices in Missouri despite having been outlawed by the Compromise (Brands et al.,

Political Equality Essay Example | Topics and Well Written Essays - 1500 words

Political Equality - Essay Example Hence, it is a citizen right irrespective of his or her origin, gender, race, political persuasion or opinion to exercise what according to the constitution is a mandatory. This implies a person based on what he or she feels towards a certain issue should express oneself freely but within the guidelines set by his or her states’ constitution (Neyer, 2012). In addition, political equality implies every person bears â€Å"equality under the law† (Bond & Smith, 2010, p. 8). This means any regime ought to demand adherence to all set laws from its respective citizens without any impartiality based on either status or identity (Bond & Smith, 2010). This also applies in arbitrating justice where any wrongdoer should face fair judgment without any bigotry. Case study Contemporary evidence of political equality is evident in Guatemala where the regime not only ensures effective mechanisms meant to promote ethnic mobilization but also women to participate in politics (Vogt, 2011) . Ethnic mobilization in this case refers to the† ethnicization† of the former marginalized groups in Latin America, which did not have any say in influencing any political process or action there earlier but lived in passivity of what other mainstream groups already implemented. However, this norm by inferior ethnic groups continuously experiencing political marginalization has ceased to exist where many of them since 1970s up to date have explicitly emerged to the limelight of political arena to claim equal treatment (Vogt, 2011). Equal treatment or say in this case implies enjoying same land rights, bilingual education/culture and even self-determination in their respective territories without any form of coercion from the state or influential people (Vogt, 2011). Latin America and especially Guatemala to have this attainment has taken persistent civil disobedience by varied movements in the region, which up to date they are still active prompting the female gender to take part in politics (â€Å"UN Women†). This is due to the elimination of numerous barriers in form of segregation and low opinion of the female gender especially while showing interests of venturing in politics. The evidence of political equality in Guatemala in terms of political participation was evident in 2011 whereby 51% of all voters comprised the female gender besides recording high number of women candidates vying for varied posts contrary to other past years (â€Å"UN Women†). Consequently, prompting UN Women claim the time for the female gender to determine the shape of Guatemala’s politics has already come. However, this overwhelming emergency of women in politics during then up to date was through UN Women’s efforts by training candidates especially from small ethnic groups, which due to their earlier inferiority experienced marginalization (â€Å"UN Women†). Training initiatives mainly provided by UN Women focuses creating awareness concerning the essence of voting by indigenous women and increasing their political presence. This is because they will not only claim their fundamental rights but also develop others by imparting them with the right political

Evaluation and comparison of PepsiCo and the Coca-cola company

Evaluation and comparison of PepsiCo and the Coca-cola company Today Pepsi is a huge international and multibillion dollar soft-drink and snack food company second only to Coca Cola. It is hardly what Caleb Bradley had in mind when he created a soft drink formula in his North Carolina pharmacy store in 1898. In its early days Bradley sold only the syrup needed to make the Pepsi drink. Today we have countless choices of drinks and snacks all under the Pepsi name. Caleb Bradley patented his formula in 1902 and started making and selling it out of his pharmacy. He had great success with it, and production increased almost exponentially. During World War I sugar began to be rationed and prices rose over 500%. Caleb had no choice but to declare bankruptcy and sell his business to Roy C. Megargel, and investment banker, in 1928. But Megargel had very little luck with the company as well and in 1931, just three years later declares bankruptcy himself. A company by the name of Loft Inc. purchases most of the Pepsi shares and becomes a major shareholder of the corporation. After reorganizing, Pepsi begins to advertise on a massive scale. With the depression in full swing at the time Pepsi begins to sell 12 oz bottles of its product for just 5 cents compared to its competitor selling 6 oz bottle at the same price. It becomes known as the poor mans drink. It began to aggressively look to the international market, especially in Canada and Mexico. In 1934 Pepsi was finally able to open its first distribution center in an international market, Canada. From that point on the drink and the name had nowhere to go but up. New products were added to its list such as Diet Pepsi, Pepsi Free, etc. In 1965 Pepsi joined forces with a large snake food industry know as Frito Lay. Thanks to this merger the company was able to make for the first time $1 billion in sales, its first but certainly not its last. Pepsi also become purchasing fast food restaurants such as Taco Bell, Kentucky Fried Chicken and Pizza Hut. But in 1997 it spun off these fast food chains into another company. Today Pepsi make over $40 billion a year and this number is increasing every year. The brand name alone is worth over $12 billion which puts it in the top 20 most valuable names in the world. There seems to be no stopping this giant in the soft drink industry, but every company has a rival and Pepsi has some very powerful ones. PepsiCo and The Coca Cola Company Performance Ratio Comparisons: PepsiCo Inc Fiscal Year 2009 Profitability Growth Cash Flow Financial Health Efficiency Ratios Ratio Comparisons: The Coca Cola Company Ratio Comparisons Profitability Growth Cash Flow Financial Health Efficiency Ratios Stock Charts: PepsiCo Inc 3 month stock chart 6 month stock chart 1 year stock chart Stock Charts: The Coca Cola Company 3 month stock chart 6 month stock chart 1 year stock chart Stock Prices: PepsiCo Inc Stock Prices: The Coca Cola Company Development: PepsiCo Inc Product Add more than 200 product variations a year to keep up with changes in consumer taste New Age beverages SoBe No Fear (energy drink) SoBe Synergy (targeted to school-aged children) SoBe Fuerte (Hispanic market) Propel Fitness Water Obesity concerns Low-carb Doritos, Cheetos, and Tostitos Health concerns Natural and organic chips Hispanic markets Popular brands from a Mexican subsidiary (Sabritones Chile and Lime puffed wheat snacks) Culture Pepsi Refresh Project Pepsi is awarding grants from $5,000 to $250,000 to consumer-generated ideas that will make a positive impact in the world. The program launched on January 13, 2010 and will award more than $20 million in 2010 to move communities forward. Aug 27, 2010 CVS Pharmacy and Boundless Playgrounds Join the Refresh Challenge to Support Children of All Abilities Current Developments Aug. 4, 2010 PepsiCo announces company is investing USD $3 million over next three years to create Agricultural Development Center of Peru (CEDAP), which will develop new varieties of potatoes and other tubers and roots. This is meant to develop new and healthier products and to encourage commercial cultivation of these species in ways that preserve biodiversity Aug 16, 2010 PepsiCo announces plan to invest USD $250 million in Vietnam over next three years. New investment includes increasing manufacturing capacity, adding marketplace equipment, further strengthening brands, and broadening companys product portfolio via innovation Market Differentiation Strategy Industry-leading Nutrition Goals Reduce the average saturated fat per serving in key global food brands in key markets by 15% by 2020 Reduce the average added sugar per serving in key global beverage brands in key markets by 25% by 2020 Reduce the average sodium serving in key global food brands in key markets by 25% by 2020 Increase whole grains, fruits and vegetables, nuts, seeds, and low-fat dairy in its product portfolio Environmental Goals Provide access to safe water to three million people in developing countries by the end of 2015 Reduce packaging weight by 350 million pounds by 2012 Work to eliminate all solid waste to landfills from PepsiCos production facilities Commit to an absolute reduction in greenhouse gas emissions across global operations Future Pepsico hopes to revive Quaker with new products Pepsi plans to cut sodium by one-fourth in key brands in five years, and cut sugar per serving in drinks by 25 percent in the next 10 years. Development: The Coca Cola Company Product Calorie concerns 2006 Enviga, negative calorie green tea drink 2007 Glaceau (Vitamin Water) 2009 90-calorie mini can (7.5 fl oz) Culture Live Positively Cokes project to help make a positive difference in the world through sustainability with focuses on climate protection, balanced living, education, and community Give It Back Recycling Program Coca Cola is asking for its consumers to return the cans and plastic bottles of Coke they buy in order to make backpacks, t-shirts, rugs, etc. Aug 24, 2010 Coca-Cola workers strike in Bellevue Sept 1, 2010 Strike announced at Edmonton Coca Cola factory Current Developments Sept 7, 2010 Coca Cola Enterprises plans to sell its North American business to Coca Cola Co in the fourth quarter Aug 30, 2010 Coca-Cola West (Japan) to buy vegetable juice maker Qsai for $421 million Coca Cola Freestyle A touch screen soda fountain with over 100 different Coca-Cola beverage products and custom flavors. Market Differentiation Strategy Future Coca Cola drinks in Japan made from Kale, a nutrition but not very tasty vegetable, may turn up in stores Coca Cola buys major Russian juice producer Nidan Company Comparison In PepsiCos 2009 Annual Report to shareholders, it identifies a plethora of competitors. Notable competitors include Dr. Pepper Snapple Group, Inc., Nestlà ©, and Kellogg. However, no rivalry is longer or larger than the one between PepsiCo and Coca-Cola. Not only are these two the first and second largest food and beverage companies in the world, these two have a vested interest in keeping the competition alive. In this industry, where margins and market share determine profitability, marketing plays a vital role in bringing in creating new loyal customers and maintaining the old ones. And both of these companies have benefited from the marketing of the other. Product Comparison Its easy to compare these two companies given the similarity in their products. Both have well-known brands for soda, sports drinks, juices, and water. They both also see the benefit in vertically integrating their supply chain. While PepsiCo chose to purchase its two largest bottlers, The Coca-Cola Company has continued to hold a large share in their bottling companies. These companies compete on a product by product basis as is detailed in the chart below. It is important to note that one key line is not included, popular snacks. PepsiCo has acquired a multitude of brand named snack companies including Frito-Lay while Coca-Cola while having over 3,000 different beverages sells only that, beverages. This has helped PepsiCo diversify and increase its sales and market compared to Coca-Cola. PepsiCo The Coca-Cola Company Bottling Acquired Pepsi Bottling Group and PepsiAmericas Owns 34% share of Coca-Cola Enterprises and 32% share of Coca-Cola FEMSA Soda Pepsi, Mountain Dew, and Mug Coca-Cola, Fanta, and Sprite Sports Drink Gatorade Powerade Orange Juice Tropicana Minute Maid Water Aquafina Dasani and Evian Size and Profitability Comparison As much as PepsiCo tries to compete on the same grounds as The Coca-Cola Company, for the time being Coca-Cola is still the leader in many ways financially. For one, PepsiCo is significantly smaller than The Coca-Cola Company. In 2009, PepsiCos Market Capitalization was only 80% of Coca-Colas. Furthermore, the Coca-Cola Company has continued to sell more efficiently than PepsiCo. In 2009, all of Coca-Colas profit ratios were significantly greater than PepsiCos. Perhaps this is partially explained by the greater number of employees PepsiCo employees. PepsiCo is winning out on top line growth however, with more than $10B in sales last year alone. PepsiCo The Coca-Cola Company Stock Ticker PEP KO Headquarters Purchase, NY Atlanta, GA 2009 Number of Employees 203,000 92,800 2009 Market Capitalization $103 B $130 B 2009 Sales $43.2 B $31.0 B 2009 Gross Profit Margin 53.5% 64.2% 2009 Operating Margin 18.6% 26.6% 2009 Net Profit Margin 13.8% 22% Investment Comparison At first glance, PepsiCo and Coca-Cola may seem like they are about equal when it comes to what stockholders are looking at. Shareholders want a maximum return on their investment either through an increased stock price or dividends. Given that PepsiCo and Coca-Cola are both seen as value stocks by most investors, the amount they provide in dividends is of significant importance. Given PepsiCos higher Dividends per Share in this category regardless of how small is worth noting. (2009) PepsiCo The Coca-Cola Company Dividends per Share $1.77 $1.64 EPS $3.86 $3.18 P/E 16.61 17.66 Qualitative Comparison But a company is more than just its numbers. A companys qualitative features like its core values and growth plans for the future are of equal importance. Both PepsiCo and Coca-Cola are interested in expressing a commitment to health, but they do it in significantly different ways. PepsiCos interest in health is centered around sustainability. They highlight their three commitments to human, environmental, and talent sustainability whereas Coca-Cola takes a more human centric view on health. It is specifically trying to promote a healthy lifestyle through education, nutrition information, and exercise. Both are trying to fight the obesity epidemic and offer healthier choices, but their ways vary. The Decision to Invest Industry Analysis Before deciding whether or not to invest in PepsiCo, one must investigate if now is the time to investigate in its industry. The difficulty in studying PepsiCos industry is that it falls into a couple of industries. The Business Company Resource Center returned eight possible industries, but the most salient one and the one PepsiCo aligns most with is the Bottled Canned Soft Drinks Industry. The good news for PepsiCo is that the soft drinks industry is now and is projected to remain extremely concentrated. PepsiCo, along with Coca-Cola, are either the cause or effect of this trend and have helped lead the United States to be the number producer and consumer of soft drinks. But this market is heavily saturated, and the regions projected to be able to offer the most growth in the next decade are the Asian and South America markets. By targeting these groups and catering to their cultural expectations, significant returns can still be made. The biggest challenge for the industry going forward is addressing the growing concern that soft drinks are causing an obesity epidemic. By offering healthier alternatives, or perceived healthier alternatives such as diet colas, juices, and bottled water, this can be overcome. The significant investment that Pepsi has made in its campaign to promote a healthier lifestyle will also not go unnoticed. The number one ingredient in soft drinks may become more difficult to obtain. The supply of water, the largest ingredient in almost all of Pepsis products, could become more strained as pollution and droughts continue to plague the resource. Developing a plan to share and conserve this resource and addressing all the growing concerns over its supply will be important for Pepsi. Management Analysis No company can be successful long term without the right management team. PepsiCos committed CEO has been with the company for almost two decades in a variety of strategic and operational leadership positions. She has a firm understanding of the industry as well the growth strategy that she has been implementing for years. Perhaps more important than what PepsiCos leadership is known for, is what they arent known for. No member has gained public attention for unethical financial decisions or misdoings. What else should be included here? Expert Opinions February 20, 2008 While many companies saw business decline in the fourth quarter, PepsiCo met expectations even after investing heavily abroad for growth. It posted a 17% gain in revenue and an 11% increase in operating profit as core brands came through. The company had double-digit growth in snacks and drinks in emerging markets. (article from 2008) http://articles.moneycentral.msn.com/Investing/CompanyFocus/WhyPepsiCoStockIsABuyNow.aspx April 14, 2010 Coke or Pepsi: Which stock to buy? The ability to leverage sales across a wider variety of products will be a powerful driver for PepsiCo here and overseas. This is referring to PepsiCo and snack items http://articles.moneycentral.msn.com/learn-how-to-invest/coke-or-pepsi-which-stock-to-buy.aspx Summary

The Meaning of Smoke :: Smoke Essays

The Meaning of Smoke Sometimes people feel that things are better left unsaid. Such is the case in Chris Avellone's, smoke, which tells the story of two friends who have a good relationship until one speaks the truth that both had been hiding. The smoke in the essay can be looked at as a veil that is concealing the true feelings of the two characters. The setting, which is in a smoke filled bar, can be looked at as a secret hide away that the two friends go to. It is when Kyle starts to bring what is really going on that the conflict starts. When the story starts, the two friends are at a bar playing darts and drinking beer. When Kyle start smoking a cigarette it is then that Dave starts to open up and let the audience know that the two friends have not seen each other in a while. He also starts to describe his friend physically paying special attention to his eyes. Throughout the story Kyle is very vague when answering Dave's questions about his new relationship. Finally he asks his friend if his girl knows about what was going on between the two of them. Dave tries a first to shrug the conversation off but it is at this point that smoke the cigarette is giving off is starting to make sense. "Smoke curled from his nostrils out onto the table, like some kinda dragon" (Avellone, 3). Throughout the entire story the smoke seemed to make Dave feel more comfortable. It seemed as if the presence of the smoke made him telling the story and him even being around Kyle okay. With the smoke curling from his friends nose the reader is able to get a picture that the smoke is starting to clear. It is only when the smoke seems to be clearing in his eyes, revealing both his and Kyle's true feelings that he started to get uneasy. At this point he attacks his friend and calls him all kinds of vulgar names. He says that he cannot see much because of the smoke and that at that point, "Kyle just faded out into the smoke in Shoop's" (Avellone, 3). We can see here that he knows he has lost his friend to the smoke, which is a representation of his repressed feelings. From his descriptions of Kyle as well as his annoyance at the relationship he is in, the reader knows that Dave is in love with his friend, but the smoke made it all right because no one could really see what was really going on.

Report on Lease Financing

[pic] [pic] Course code: F-201 Course title: Financial accounting -2 Submitted to: Tahmina Akter Lecturer Department of Finance University of Dhaka Submitted by: Name | | | |Roll | | | |Section | | | |Md. Mostafa Kamal | | | |16-058 | | | |B | | | |Md. Sakib Bin Abdul Hannan | | | |16-096 | | | |B | | | |Md. Mehdi Hasan | | | |16-112 | | | |B | | | |Parvaj Mosaraf | | | |16-140 | | | |B | | | |Belal Hossain | | | |15-132 | | | |B | | | BBA 16th Batch Department of Finance University of Dhaka Date of Submission: 26-05-2011 Letter of Transmittal Date: 26th May, 2011. To Tahmina Akter Lecturer Department of Finance University of Dhaka Subject: Submission of report â€Å"A Report on Lease Financing†. Dear Madam, We are pleased to submit the report you have assigned to us. The report paper was to prepare the term paper on the course named â€Å"Financial Accounting-2† Course # F –201, as a part of our academic activities. This is the report on â€Å"A Report on Lease Financing†. The report reviews that how leasing company leases equipment. And we have focused a specific lease agreement of United Leasing Company with Delta Pharma Limited to have the real experience. We tried our best to prepare this report a fault free, but it is not possible. We hope that you will take any mistake with kind consideration. Thank you. Sincerely Mostafa Kamal (On behalf of the group-) Contents Acknowledgement This report entitled â€Å"A Report on Lease Financing† is submitted as the requirement of a part of the study of â€Å"Financial Accounting-2† in the BBA program conducted by Department of Finance, University of Dhaka. To prepare this report an intensive study was made covering various terminologies with the help of books named â€Å"Intermediate Accounting by Donald E. Kieso and Weygandt†. At first we want to pay our gratitude to all mighty Allah for preparing the report successfully. We are extremely grateful to our honorable course teacher Tahmina Akter, lecturer, Department of Finance, University of Dhaka for her painstaking guidance, suggestion and all type of support & supervision to prepare this report. She continuously reminded us for the preparation of this report paper and finally gave a out-line to write down the paper spending her valuable time. Without her untiring efforts, completion of this report paper would have been impossible. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript. Executive Summary Lease financing is the most important issue that determines the direction of financial behavior in an organization, a financial level of effort, and the organization’s level of persistence in the face of obstacles of other types of financing. Now-a-days lease financing is the most emphasized topic to any challenging institution or organization to develop their financial resources as well as profit maximization or maximization of owner’s equity. Lease financing is so central to management because it explains why it is better for the organization to gather financially solvency by lease financing. By lease financing an organization can reach its specific destination. If an organization has effective lease financing efficiency it can survive & develop quickly than others. At first an organization considers lease financing and other financing cooperatively with one another then it takes decision to apply lease financing or other financing whichever is best. If other financing is the best than the lease financing then it will be selected, not lease financing. So from this comment it will be clear that lease financing must be selected it is not necessary. So which is the best is considerable matter. Background of the Report As a Part of Financial Accounting-2 course, we have prepared this report. Our course teacher, Tahmina Akter, instructed us to prepare a report on â€Å"Lease Financing†. We have made a detailed and critical analysis on the topic-All the five members of our group provided their sincerity and serious effort to prepare this term paper and the term paper submitted today – 26th May, 2011. Objective of the Report The main objective of our term paper is to show the lease agreement of a leasing company. We have study about advantage of leasing, various features of leasing but while preparing this report we have understood how leasing is important for company. Methodology and sources of information The term paper is written by using secondary resources. To prepare this term paper I have taken the help of numerous books, computer lab of business faculty of university of Dhaka. In this term paper I sorted information shortly and to collect information we went to computer lab and central library of Dhaka University. Besides I have also collected information through numerous sources such as The Daily Star and other daily news papers, journals etc. INTRODUCTION A lease is a contract whereby the owner of an asset (the lessor) grants to another party (the lessee) the exclusive right to use the asset in return for the payment of rent. Lease financing in Bangladesh means financing according to the methods of lease in Bangladesh. Sometimes it is more acceptable than others financing. Actually it is more profitable in some special sectors where other financing will be less profitable than lease financing. Most of us are familiar with lease of apartments, cars, and telephones. Bangladesh is a developing country, so lease financing is not very easy to apply here. In spite of these problems there are many sectors where lease financing is strictly applied. The key difference between a finance lease and an operating lease is whether the lessor (the legal owner who rents out the assets) or lessee (who uses the asset) takes on the risks of ownership of the leased assets. The classification of a lease (as an operating or finance lease) also affects how it is reported in the accounts. The classification of large transactions, such as sale and leasebacks of property, may have a significant effect on the accounts and on measures of financial stability such as gearing. However, it is worth remembering that an improvement in financial gearing may be offset by a worsening of operational gearing and vice-versa. Leasing: A lease is a contractual agreement between two parties establishing an arrangement for the use of an asset in return for periodic payments by the user. In a lease arrangement: ? The lessor is the asset owner, who receives the periodic payments. ? The lease makes the payments to the lessor in return for using the asset. Types of leases: All leases can be categorized broadly as either operating or financial leases. In turn, financial leases can be categorized into specific types. We will discuss the various types of leases below. Operating leases: An operating lease is a short-term, cancelable lease. A simple example of an operating or service lease is a lease for telephone service. Financial leases: A financial lease is typically a long term, no cancelable lease- the opposite of an operating lease. At the termination of the lease contract, the lessee often can either renew the lease or purchase the asset. Features of operating leases: 1. The lease is cancelable by the leasee prior to its expiration. 2. The lessor provides service, maintenance, and insurance. 3. The sum of all the lease payments by the lesee does not necessarily fully provide for the recovery of the asset’s cost. Features of financial leases: 1. The lease is not cancelable by the lessee prior to its expiration date. 2. The lessee is typically responsible for service, maintenance, and insurance for the asset. 3. The asset is fully amortized over the life of the lease. Financial leases can be divided into two basic forms: 1. Direct lease: In the straightforward arrangement, the firm leases an asset it did not previously own. The firm simultaneously signs the lease agreement with the lessor and orders the equipment from the manufacturer. The lessor pays for the equipment, which is sent to the firm. The firm makes lease payments to the lessor based on a lease agreement worked out by the two parties. If the direct lease is from the manufacturer, then the manufacturer and the lessor are one and the same. 2. Sale and leaseback: In this arrangement the firm sells an asset it currently owns and then leases the same asset from the buyer. Lease payments are set to return the full purchase price plus a rate of return deemed reasonable. The advantage to the lessee is that it allows the firm to continue using the asset while providing cash that can be used elsewhere. It has become increasingly more common in recent years for companies to lease equipment. Each leasing agreement needs to be read through carefully to understand the terms and conditions within said lease. Typically a lease can run anywhere from one to five years. Most equipment necessary in commercial businesses today, including technical equipment, can be leased. Some leases provide an option to then purchase the equipment at substantially less money when at the end of the term of the lease. By leasing equipment, if structured properly, you can maintain your credit availability, as the lease debt does not have to be considered a direct liability on your financial statements. This is advantageous, as it does not limit your ability to borrow from lending sources. Advantages of lease financing: ? It offers fixed rate financing; you pay at the same rate monthly. ? Leasing is inflation friendly. As the costs go up over five years, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther. (In addition, the lease is not connected to the success of the business. Therefore, no matter how well the business does, the lease rate never changes. ) ? There is less upfront cash outlay; you do not need to make large cash payments for the purchase of needed equipment. ? Leasing better utilizes equipment; you lease and pay for equipment only for the time you need it. ? There is typically an option to buy equipment at end of lease term. ? You can keep upgrading; as new equipment becomes available you can upgrade to the latest models each time your lease ends. ? Typically, it is easier to obtain lease financing than loans from commercial lenders. ? It offers potential tax benefits depending on how the lease is structured. One of the reasons for the popularity of leasing is the steady stream of new and improved technology. By the end of a calendar year, much of your technology will be deemed â€Å"dinosaurs. The cost of continually buying new equipment to meet changing and growing business needs can be difficult for most small businesses. For this reason leasing is very advantageous. Leasing can also help you enhance your status to the lending community by improving your debt-to-equity and earnings-to-fixed assets ratios. There are a variety of ways in which a lease can be structured. This provides greater flexibility so that the lease is structured to best accommodate the individual cash flow requirements of a specific business. For example, you may have balloon payments, step up or step down payments, deferred payments or even seasonal payments. The actual advantages of leasing: The most important reason for leasing remains the tax reason. This advantage exists because firms are in different tax brackets, allowing a firm that can not take full advantage of a potential tax shield to shift such a shield to another firm. If the lease payments are set at proper rate, the firm that does the transferring can benefit, as can the lessor. Although someone has to lose, that someone will be the IRS. Disadvantages of lease financing: Leasing is a preferred means of financing for certain businesses. However it is not for everyone. The type of industry and type of equipment required also need to be considered. Tax implications also need to be compared between leasing and purchasing equipment. You have an obligation to continue making payments. Typically, leases may not be terminated before the original term is completed. Therefore, the renter is responsible for paying off the lease. This can pose a major financial problem for the owners of a business experiences a downturn. ? You have no equity until you decide to purchase the equip ment at the end of the lease term, at which point the equipment has depreciated significantly. ? Although you are not the owner, you are still responsible for maintaining the equipment as specified by the terms of the lease. Failure to do so can prove costly. A lease involving a third party that lends the lessor part of the funds ecessary to purchase the asset to be leased. 1. Equipment manufacturers: Durable-goods manufacturers often establish subsidiary leasing or credit companies. One of the main reasons that manufacturing companies provides lease financing is to encourage the use of their product. 2. Financial institutions: Banks, bank holding companies, and life insurance companies. These institutions are heavily involved in long-term financial leases. From their standpoint, leases are merely a secured lending. 3. Independent leasing companies: This provides much of the direct leasing. The financing effect: It is a form of borrowing. The contractual agreement on the lease payme nts is no cancelable. Therefore as other types of debt, failure to make the lease payments can result in bankruptcy. Both lessors and lessees generally, and correctly, view a financial lease as a form of borrowing. Leasing is similar to debt; it has an impact on the amount of borrowing a firm can do. Generally, the more a firm leases, the less it can borrow. This debt displacement is an implicit cost of leasing. The tax effect: For tax purposes, the lease is entitled to a full deduction of all qualified lease payments. Therefore, like other forms of borrowing, the government subsidizes the cost of leasing. The reporting effects: Leasing used to be referred to as off-balance sheet financing. Under rior accounting practices, because the firm did not own the asset, neither the asset nor the companion lease liability had to appear in the body of the balance sheet. A footnote reference, often a very terse one, was sufficient. The superficial effect was to understate the firm’s indebtedness position. Les see reporting: The capitalized value of capital leases and their companion liabilities are put in the body of the lessee’s balance sheet. These capitalized values are the present value of the lease payments. Thus the present value of the lease payments appears on the right-hand side of the balance sheet as a liability and on the left-hand side as an asset. [pic] ULC was established in 1989 as a public limited company, to cater the investment needs of our economy. ULC provides lease financing facilities to all market segments of customers, Small & Medium Enterprises, Commercial Houses, Large Corporate organizations. Under Lease financing They provide; ? Industrial machinery and motor vehicles at concessionary term. ? Machinery and Furniture for Hospital use. ? Truck or Bus for Transportation. ? Equipment or Furniture for Official use. Delta Pharma Limited (DELTA PHARMA) has been propelling steadily towards its goal (Better Care†¦ Better Cure†¦ ) since its launch on November 21, 2004. It is a public limited company. Vission The vision is to reach a level of excellence in pharmaceuticals through a sustained effort to quality assurance and to achieve a global standard through the indoctrination of a culture of excellence. Mission Our mission is to benefit people and improve their quality of life through our quality products. As a generic company, our growth is closely knitted to the satisfaction of our customers. We would like to ensure customer satisfaction through providing quality medicine at affordable cost, launching new molecules & expediting export to all possible avenues. We are committed to achieving our goal through skilled, creative, and motivated employees. ULC agrees to lease a drug manufacturing machine to Delta pharma company on January 1, 2010. ULC has added following information in the contract: 1. The lease agreement is noncancellable in nature with 6 years time period. 2. There will be no renewable option after lease term. 3. The cost of the machine was tk. 245000 and the fair value of the machine at January 1, 2010 is tk. 245000. 4. Machine will be reverted to the leesor at the end of this term at which time the machine will have scrape value worth tk. 43622 which is ungurrenteed. 5. Delta Pharma will bear the responsibility all executive cost. 6. ULC requires equal rental payment annually beginning January 1, 2010. 7. Collectability of the lease payment is reasonably predictable. There are no uncertainties surrounding the amount of costs yet to be incurred by the ULC. Required calculation by ULC Rental payment calculation Fair market value of the leased asset to lesor tk. 245000 Less: Present of the ungurenteed residual value tk. 24623. 31 (43622X. 56447) Amount to be received through lease payment tk. 220376. 69 Six periodic lease payment (tk. 220376. 69/4. 79079) tk. 46000 United Leasing Company (Lessor) Lease Amortization Schedule Date |Annual lease payment plus |Interest on lease |Recovery of lease |Lease receivable | | |URV |receivable |receivable | | |1-1-10 | | | |245000 | |1-1-10 |46000 | |46000 |199000 | |1-1-11 |46000 |19900 |26100 |172900 | |1-1-12 |46000 |17290 |28710 |144190 | |1-1-13 |46000 |14419 |31581 |112609 | |1-1-14 |46000 |11261 |34739 |77870 | |1-1-15 |46000 |7787 |38213 |39657 | |1-1-15 |43622 |3965 |39657 |0 | Journal entries for ULC Journal entries given by the United Lea sing Company for the first two years: Date |Journal |Amount(tk) | |1-1-10 |Lease receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. Dr |245000 | | |Equipment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Cr |245000 | |1-1-10 |Cash†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |46000 | | |Lease Receivable†¦Ã¢â‚¬ ¦ Cr |46000 | |12-31-10 |Interest Receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |19900 | | |Interest Revenue. †¦.. Cr |19900 | |1-1-11 |Cash†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Dr |46000 | | |Lease Receivable †¦Ã¢â‚¬ ¦Cr |26100 | | |Interest Receivable†¦. Cr |19900 | |12-31-11 |Interest Receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |17290 | | |Interest Revenu†¦Ã¢â‚¬ ¦. †¦. Cr |17290 | Findings Analyzing this report we have come to terms: 1. Lease plays an important role for business. 2. Easy for business to get lease. 3. Lease agreement may contain less restrictive provisions than other debt agreement. 4. Business finds leasing cheaper than other forms of financing. 5. Business does not report an asset or liability for the lease agreement for financial reporting purposes. 6. It is a contractual agreement. 7. It may be cancellable or no cancellable. 8. Leasing provides business an opportunity to transfer tax benefit to another party. The leasing market is becoming more competitive because of the new leasing companies are entering the market. However, There are still leasing companies are doing well. The political stability and overall economic development is an essential precondition of the smooth growth of this sector. If we can ensure these two preconditions, the leasing sector of Bangladesh would be able to perform a strong role in our industrial development. If we disuses more and more about lease financing, and if we try to spread it among our general public about its advantages, we will go clearly ahead. It is very favorable to apply lease financing in Bangladesh. From above discussion, it is clear that, in many sectors lease financing is better than other financing. If we know about lease financing properly, we can use or we can avail all the advantages of lease financing where other financing is not favorable for us. 1. Brigham, E. F. and M. C. Ehrhardt. 2001. Financial management: Theory and practice. 10th Edition. Singapore. South- Western. 2. Bhole, L. M. 1992. Financial Institutions and Markets: structure, growth and Innovations. 2nd Edition. New Delhi. Tata- McGraw-Hill Publishing Company. Evaluation of students’ performance; 3. Horne, J. C. 1999. Financial Management and Policy. [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] ———————– Bibliography 05 06 07 07 07 08 09 11 13 18 21 22 22 1. Acknowledgement 2. Executive Summary Background of the report Objective of the report Methodology and sources of information 3. Introduction 4. Lease Financing 5. Advantage and disadvantage of leasing 6. Sources of lease financing 7. A lease contract 8. Findings 9. Conclusion 10. Bibliography TOPIC PAGES A Report on Lease Financing Conclusion The effects of leasing on the firm: A Lease contract of United Leasing company with Delta Pharma Limited Sources of lease financing: Leveraged lease: Advantages and Disadvantages of Lease Financing for Businesses Lease Financing [pic] (Lessee) [pic] (Lessor)

Law for Manager Essay

The partnership act 1890 governs the relationship of the persons and the outside world. And in respect of dissolution; if there is no partnership agreement, the partnership act set out the rights and duties of the partners. Such rights and duties (by act or agreement) may be varies by the consent of all partners. (S 19). ‘The relation which subsists between persons carrying on a business in common with a view to profit. ’ Under S24 (5) ‘in common’ means every partner has a say in the firm. The members are only liable for their subscription unless the partnership agreement says otherwise. Saywell V Rope [1979] the wives are not in the partnership as no evidence suggested. ‘Person’ includes a corporation as well as individuals. Companies can enter partnership. ‘With a view to profit’ means certain organisations are excluded. E. g. club or society has no view to profit. Pitreavie Golf Club V Penman [1934] creditor sue under partnership, held, Club’s motivation was to allow member to play not share in profit. ‘Business’ included every trade, occupation and profession. Keith Spicer Ltd V Mansell [1970] Claimant sue the partnership for debt owned, held, there were no partnership so claim failed. Because def carrying on business with no view to profit. It is important to determine whether a partnership exists. For tax reason. When acting in the course of business, the company will bind the other partners to outsiders. S. 24 right to share in profit, management, duties and faith since the arrangement is uberrimae fidei. S. 35 dissolution. If not acting in good faith then the court can dissolve the partnership. S. 28 duty to disclose, bond to render true account of all things affecting the partnership to any partners or their legal representatives. Law V Law [1905] – After the sales agreement there is a partnership asset that was not hidden from the account. But W had lost the right to avoid the contract as he takes the money while knowing disclosure had not made. Held: the agreement to sell shares is avoidable. The contract may be verbally, written or in deed. Basic: A partnership is not a company since it is not incorporated; therefore it has no legal personality separate from its members. Partnership may be implied by conduct where a ‘person holds himself out’ as being a partner. Then he will be liable for the debt incurred S. 4 Under the Rules of the Supreme Court 1965, the partners may be sued in the firm’s name. In KHAN & OTHERS V MIAH & OTHERS [2000] HL confirmed that partnership begins at the point of agreement, not the point when the trading starts. S. 5 each partner is an agent for the firm, has the power to bind the firm by his conduct. The partner is agent as far as he’s acting on the firm’s ordinary activities. Mercantile Credit Co V Garrod [1962] – G was sleeping partner and partnership agreement prohibited the sale of cars which P did. Held: G was bound by contract by virtue of S. making the contract was the doing of an ‘act for carrying on in the usual way business kind carried on by the firm. ’ S 29 (1) every partner must account to the firm for any benefit made by him from any transaction concerning the partnership, it property, name or business connection. Bentley V Craven [1853] C brought products at low price but sell them to the firm at wholesale rate. Held: C can’t retain the profit from these transaction and profit need to hand to the firms. C had used partnership asset, his position to make profit. No person may be introducing as a partner without the consent of all partners. Consent is implied by the other partner when they sign the article. Any different concerning the running of the business, it must be resolved by a majority vote of the partners. If a fundamental change is proposed, requires consent of all partners. S. 9 every partner is liable jointly with the other partner for all debts and obligation of the firm. The civil liability Act 1978 provided that judgement recovered against any person liable jointly with another, shall not be an action brought against the other. Business name. The firm’s name can’t be used to fraudulently imply that the business is identical with another business. A person’s business suffers in the same name/similar name may bring a ‘passing off’ action and obtain an injunction stopping the defendant. ANNABEL’S (BERKELEY SQUARE) Ltd . VG. SCHOEK[1972] S. 30 If any partner without the consent of the others, carries on business of the same nature as and competing with that of the firm, he must account for and pay over all profits made in that business. In the absence of any agreement to the contrary, a partner can carrying a non-competing business which does not involve the use of the firm’s property. Croft V Day [1843] Mr Day uses the same trade name as the other in the same street. Held: the injunction was granted preventing the new firm from trading under the name Day and Martin, the intention of the new firm was to deceive the public. Under S. 34 it is a c riminal offence for a partnership to use the word ‘limited or ‘ltd’ in its name. Partnership agreement terms: Name of partners; Date on the start and end of the partnership; How profit and loss being shared; How much may each partner draw monthly; At which bank the partner maintain its account; Principal asset; Submission of disputes to arbitration; The partnership is based on agreement and they are free to alter them. S. 9 say the decision may be made unanimously; a partnership can’t be formed for an illegal purpose. Types of partnership: 1) General partner takes active role in the daily management and has share in the loss and profit. 2) Sleeping partner contributes capital, take share in profit and liable for debt. But he does not take part in daily management. 3) A partner by holding out is not a true partner in the firm. He’s liable for financial obligation of the firm. MARTYN V GRAY [1863] Under S. 14 a person can become liable for debt if he by word or conduct represent or other to represent that he’s a partner. E. g. his name on the firm’ letter. ) Salaried partner is an employee becomes ‘holding out’, he received salary and bonus depends on the profit. The 1890 Act does not deal with them. 4) LLP is a member under the LLP Act 2000. Change of partners. The death of the partner may dissolve the partnership, but the agreement should allow the partnership continue between the other partners. On the death of the partner, the estate is not liable for debts incu rred after his death, even if the creditor was unaware of his death. S 17 (1) New partners are not liable for debts before they joint the partnership. The right to sue a new partner may be acquired by novation. Where an agreement between the creditor; the new agreement and the old firm is made, and the original contract is therefore discharged, and the new firm is accepting the liability for the debt. Byrne V Reid [1902] the claimant can introduce his son as partner when they are 21, held, other partner could not refuse because this is layout in the partnership agreement. The retirement of a partner: S. 17(2) He may be discharged from any existing liability by agreement (novation) between him, the firm and the creditors. Creditors are not force to accept novation and may still regard the retiring partner as liable for debt. The retiring partner can get compensation from the other partner. Under S. 36, the retiring partner will be liable for debt if: 1)To person dealt before his retirement unless given written notice that he’s no longer a partner or 2)To person who had no previous dealing with the firm before but know the composition before retirement. Unless the retirement person has given notice or had advertised in the London Gazette. Such notice is effective without consent. Liability for wrongs: 1)S 10 provides that any wrongful act or omission of any partner acting in the course of the business or with authority of co-partners. Any loss or injury is caused to person which is not a partner. The firm is liable to the same extent as the partner committing the wrong. This liability is jointly and several. 2) In HAMLYN V HOUSTON & Co [1905] a firm was liable to compensate a claimant where one of the partners had bribed a clerk employed by the claimant in order to obtain information about a rival’s business. 3) The firm will be vicariously liable for the torts committed by its employees in the course of their employment. 4) Lloyd V Grace, Smith & Co [1912]. Advantages of partnership: Uphold of capital, being responsible, share expertise, share resources, share profit and flexibility. Disadvantages of partnership: Conflict, jointly and severally liability, sharing debt/loss. Differences: 1) A company is a type of corporation, registered under company legislation. Company act 2006. The members of the company may have limited liability. The company’s debt belongs to the company not the shareholders, even if the company is insolvent. 2) A partnership is ‘the relationship which subsists between persons carrying a business with a view to profit. ’ S 1 Partnership act 1890. It’s an unincorporated association, having no separate legal personality from the partners. It may have firm’s name but not corporate status. Partners are responsible for the acts of the firm. Partners have unlimited liability and responsible for partnership’s debt. 3) LLP is registered at the companies’ house and received a certificate of incorporation. LLP is corporate bodies having separate personality from their members. LLP is personally liable to the third party for wrongful acts and might be liable in the insolvency. They are tax as partnership, flexible, trading disclose, accounting and filing similar to the company. They can also lend and raise floating charge. Perpetual succession 1) A company has perpetual succession; it is not affected by the death of the shareholders or change ownership of its shares. It continues to exist until it wound up by court/its members. 2) A partnership may be terminated on the death, retirement, bankruptcy or insanity of a partner. 3) LLP is incorporated, so not affected by the death etc. of a partner. His share may be inherited but the beneficiary will not be able to take part in management, only share in profit. A company has separate legal personality from its members. Salomon V Salomon & Co [1897], Lee V Lee’s air farm Ltd [1961], Macaura V Northern Insurance [1925], Cox V Coulsons [1916] – An actor shoot an audience in accident and claimant sue for damage in the partnership of the theatre (def) and theatrical company. Held: def is not in partnership with the actors company so not liable, neither of them are agent. Corporate veil can be lifted where there’s evidence of fraud/illegality. Gilford Motor Co V Horne [1933], Daimler Co Ltd V Continental Tyre Co [1916] (War time), Chandler V Cape Plc. Civil law-compensation; Criminal law –retribution/punishment. Lift corporate veil to target parent company; but difficult, usually subsidiary. Ownership; Separate ownership and management in a company; Small company has ownership and management in the hands of CEO; in a partnership there’s unity of ownership and control. All partners have right to management. Accounts; Company accounts have to be laid before the general meeting, published and audited. They are open to public inspection; Partnership accounts are not subject to public inspection and no need audited; LLP account need auditor’s report and have be sent annually to company’s house and to each member. Tax liability; Corporation tax paid on company’s profit, income tax by shareholders on dividend; Income tax is paid by partners as self-employed; LLP are tax as partnership. Shares. 1) Shares in listed companies re freely transferable. Private companies may impose restriction on transferring oh shares. Company can issue shares of different class with right attached to the shares. 2) A partners share is not freely transferable. New partner can be introduced with consent of all partners. In the absence of agreement, all partners have equal rights regarding the firm’s affairs and shares in capital, profit and losses. 3) a member of LLP may leave by agreement or by given notice. (S. 43 of the 2000 act) The firm is not dissolving on the departure of the member so no shares in the LLP’s assets. Unless agreement provides otherwise. Formalities: 1) To form a company requires registration to be complied with payment of fees. During lifetime of the company there are administrative formalities to be complied. Certain information (change of article/special resolution) need to submit to registrar. Information about a company’s affairs is readily available at company’s house or company’s registered office.  This also applies to LLP. 2) The formation of partnership has no legal requirement to be complied. But the business names act 1985 applies the partnership being based on agreement between the partners. No requirement for partnership except those affecting the business. E. g. registration for VAT, return of profit from HMRC. The public has no right to access material concerning partnership affairs. 3) LLP required submitting an annual return and accounts to companies’ house and keeping accounts in accordance with company legislation and daily records disclosing the financial position of the firm. The veil of incorporation, it was established in Salomon that a registered company is a legal person separate from its members. This principle may be referred to as ‘the veil of incorporation’. In general the law will not go behind the separate personality of the company to its members. Restated by Lightman J in Acatos and Hutcheson Plc V Watson [1995]. Principle of separate identity should be upheld unless there was a specific statutory provision or some other contractual term or common law principle to the contrary. Therefore, when the company is incorporated the veil of incorporation comes down, giving the company a separate legal personality from its members. Fraudulent trading, S. 213 of the insolvency act 1986: 1) If it appears that ‘any business of the company has been carried on with intent to defraud creditors of the company or of any other person, or for any fraudulent. 2) Purpose ‘it may order that ‘any persons who were knowingly parties to the carrying on of the business in the manner above mentioned are to be liable to make contributions to the company’s assets as the court thinks proper. 3) S. 993 CA 2006 Criminal offences of fraudulent trading. 3) High standard of proof. S213 of the IA 1986 provides that if in the winding up of a company it appears that the business has been carried on with the intent to defraud creditors or for any fraudulent purpose, the court, on the application of the liquidator, may declare that any persons who were knowingly parties to the fraudulent trading shall make such contributions to the company’s assets as the court thinks fit. ) S214 of the IA 1986 provides that where the liquidator of a company can show that D prior to liquidation, knew or ought to have known that there was no reasonable prospect that the company could avoid insolvent liquidation, and did not take steps to minimise the loss to creditors, the court may require D to make personal contribution to the company’s assets. Does not have to be dishonest, unreasonable behaviour or negligence. Reproduce Marketing Consortium Ltd [1989] Company become insolvent Ds directors were not dishonest but failed to take action. Held: the directors know that liquidation will occur, but fail to minimise loss during the disposal of assets. 5) S216 of the IA 1986 provides a criminal offence is committed. Directors or shadow directors during the 12 months prior to the company’s insolvent liquidation who concerns himself during the next 5 yrs in the formation or management of the business with a name similar to the earlier company. S 217 imposes personal liability on such a person for the debts and liabilities of the second company. Ricketts V AD Valorem Factors [2003]. ) Under S15 of the Company directors disqualification Act 1986, a person who has been disqualified continue acting in the management of a company will b e liable for the debts of the company contracted during that period. He can be guilty of a criminal offence under S13. Lifting the veil 1) Disqualified director. S. 15 of the company directors disqualification Act 1986, where disqualified from being a directors in contravention of disqualification. D liable for all debts of the company which were incurred when he was so acting. The same applies to the person who knowingly acts on the instructions of a disqualified person. ) S. 122(1) of the Insolvency Act 1986 petition to wind up a company on the grounds above. That it would be just and equitable to do so. For instance the court might look into why the company was formed. 3) Company name: S349 companies act 1985. E. g. directors or secretary issues or signs on behalf of the company, a bill of exchange or order for goods under the company’s name incorrectly stated; they are liable if the company defaults. 4) Penrose V Martyr [1858]-a company’s secretary accepts a ‘bill’ drawn on the company’s name on which the name was incorrectly written. The company defaulted. Held: The secretary was personally liable. 5) Trading certificate. Where no certificate has been obtained to enable a public company to commence trading, the directors commit a criminal offence and are personally liable to indemnify the other party for loss if the company defaults. However, failure to obtain the certificate does not affect the validity of any contract. Judgement. It is difficult to be precise about the circumstances when a judge will be prepared to lift the veil of incorporation. In Wolfson V Strathclyde Regional Council [1978] the COA laid down the principal that it is only permissible for a court to lift the veil where ‘special circumstances exist indicating that the company is a mere facade concealing the true facts. Gilford Motor Company Ltd V Horne [1933], Jones V Lipman [1962], DHN Ltd V Strathclyde RC [1978], Adams V Cape Industries Plc and Another [1991]. Judges lift veil to reveal fraud, sharp practice, oppression and illegality. Judge have lifted the veil in the: 1) Alien enemies. During war time, where a company is control by enemy aliens contract will be unenforceable by the company. A company registered in the UK may be an alien enemy if those in control to its affairs are alien enemies. Daimler Co. Ltd V Continental tyre and Rubber Co Ltd [1916]. 2) Where company is formed to enable persons to evade existing liability there’s abuse of company law. Gilford Motor Co Ltd Horne [1933] an ex employee was personally bound by a valid restraint of trade from approaching his former firm’s customers. He set up new company to solicit customers of his previous employer. Held: The Company was a mere sham to cloak the wrong doings of the director and the court grant the injunction against the new company as well as against him. ) Lord Denning as prepared to life the veil in Wallerstiner V Moir [1974] there was fraud surrounding the making of a loan to director. The company of which he was a director made a loan to another company which was his ‘puppet’, so the loan should be treated as made to him. 4) Interest of justice. Creasey V Breachwood Motors Ltd [1993] an employee successfully claimed unfair dismissal against a company to whom all the assets of the original company, owned by the same individuals, had been transferred. However, the corporate veil can only be pierced if there is some evidence of impropriety or fraud. 5) Conflict viewpoint. In Creasey V Breachwood Motors Ltd [1994] the judge said ‘the power of the court to lift the corporate veil exists. The authorities provide little guidance as to the circumstances in which this power is to be exercised. ’ However, in Williams V Natural Life Health Foods Ltd [1998] the HOL took the view that the corporate veil was sacrosanct and should only be lifted in the most exceptional circumstances. ) In Trustor AB V Smallbon [2001] the def, a managing director had transferred substantial sums to another company. The Chancery Division was prepared to pierce the veil and recognise the receipt by that company as that of the individual in control, because it was used as a device or facade to conceal the true fact. However, in the absence of impropriety or fraud the courts will not pierce the veil. 7) Corporate manslaughter. Gross negligence manslaug hter- is the veil lifted here? Is the veil lifted in case where corporate manslaughter is established?

Emerging Trends - Antibiotics essays

Emerging Trends - Antibiotics essays Throughout history, the human race has sought to cure diseases. Many methods have been attempted, some good and some bad. But, by far, nothing compares to the wonder drug: antibiotics. History repeats itself. Because of this fact, the history of bacterial infections and antibiotics is important. The term antibiotics are derived from the Greek words anti and bios, which mean against life. Antibiotics are derived from living organisms, usually bacteria or molds that kill microorganisms or inhibit their growth (Antibiotics, encarta). The use of molds to help cure infections has been used for thousands of years. The medical records from Egypt, Mesopotamia, and China note this fact. Some of these records date back to 1500 BC. Crude plant extracts, as well as, cheese mold was used for topical treatments for infections (Antibiotics, encarta). William Roberts observed, in 1874, a form of bacteria immunity. He noticed that the mold Penicillium glaucum was immune to bacteria infection. A few years later, Louis Pasteur and Jules Francois Joubert noted that anthrax bacilli failed to grow if cultures became contaminated with airborne molds (Antibiotics, encarta). However, Sir Alexander Fleming made, by far, the biggest antibiotic discovery in 1928. He discovered the first true antibiotic, penicillin. Here is how the story goes. Fleming was not the tidiest of workers. He had left a Petri dish open on his bench. It was already loaded with staphylococci (staph). Spores of fungal mould (Penicillium notatum) floated in through an open window and settled on a plate. A little time later it was covered, but for some unknown reason not put into the incubator. Fleming promptly went off on a holiday leaving it on the bench. On his return Fleming found the plate and noticed that the bacteria had not grown as they would have under normal summer conditions even outside the incubator and so, Fleming deduced they had been inhibited or killed. Later he showed...

Political Equality Essays - Egalitarianism, Social Inequality

Political Equality Essays - Egalitarianism, Social Inequality Political Equality The beginnings of political equality were dim. America was just beginning to set up a political system when ideas of equality began to arise. Questions concerning citizenship, rights, and civil liberties made plans for the American political system seem overwhelmingly complicated. The idea of political equality itself was a theory of very limited scope a foundation rather than a structure. Different convictions as to the obligations of government were buried in it from the beginning, and no clear original intent could be extracted. (Pole 45) But the founders of this country were sure that America would be a nation composed of values and equal rights. There was some debate over the idea of how the states were to be represented. Interestingly enough, the idea of equality, on a political scale, was only implied by the Constitution, rather than outwardly stated. The principle of equality of political individuals, which translates into that of one man, one vote and ultimately into one person, one vote in approximately equal electoral divisions, was implicit in the Constitution of the United States, rather than being expressly declared by it. (Pole 47) One vote per person: this created some controversy, but was later accepted as the most equal method of voting. During the creation of the Constitution, there were many disputes and disagreements regarding various methods for creating equality among American citizens, but overall, the Federal Constitution did more than any other instrument to define political equality as a fundamental principle of American government. (Pole 50) The structure of the Constitution was perhaps as meaningful to the ideal of equality than the words themselves. The political thought surrounding the Constitution converged on this principle; nothing in the text led in any other direction. In this sense the Constitution may be said to have contained provisions pertained more explicitly to the expression of these implicit values. (Pole 63) The use of language, clauses, and any other implications the document might entail, make the Constitution itself a symbol of equality. The words decree it, but the document stands for it. The question about different types of equality came about in South Carolina when a committee joined to discuss this matter. They thought that equal rights would rightly produce unequal results, which could be represented by a comparison of the lower and upper classes. Equality, its members declared, was the natural condition of man, the basis of his moral excellence and political happiness, not the amount of money one had. (Pole 154) This group reasoned that the upper-class would be given more rights and advantages because of their social status... that political equality did not coincide with equality of opportunity. They thought that because the upper-class had more money, therefore they had more political weight. And, likewise, the lower-class would not have as much pull on the American political system. It was an argument that would have profound resonance in the very different context of American Reconstruction, when equality of political rights for the freedmen (together with e quality before the law) became, for a time, the key to all others. (Pole 155) Another event that helped shape equality in Americas political system began with a land crash in 1819. This event devastated many peoples hopes for ever owning any significant amount of property in life. American economics were in an uproar, yet people did not question the foundations of the country... on which they could very well have blamed the entire incident. Americans just hoped for the best as the economy gradually recovered. The effects of this event were outstanding. Workers organized into political sects and rallied not to let this unfortunate occurrence happen in the future. They made laws protecting themselves and their families and used the American political system to maintain what little they had left in the aftermath of this disaster. Political equality has been part of America ever since the founders of this country created the Constitution. It has come a long way since the 18th century, and probably still has a long way to go. America has achieved political equality, however, there are some aspects of that idea that can be improved upon, and yet others that will remain a constant reminder of

Age Constraints on Second-Language Acquisition

Age Constraints on Second-Language Acquisition Introduction: The main topic of this study is to see if the age in which a child immigrates to America has any affect on their relationship with English. The authors tested native Korean speakers, all of whom moved to the United States at various ages on their understanding of English syntax and phonology. They were testing them to see if the critical period hypothesis stands. The critical period hypothesis rests on the belief that as a person matures, their brain begins to become lessÂÂ   plastic, and as the brain loses neural plasticity, it also loses its second language learning ability.ÂÂ   (Scovel, 1988; Patkowski, 1980, 1990). However, others believe that second language learning ability is related to how often the second language is actually implemented into conversations (Oyama, 1979; Flege, 1987, 1988, 1995, 1998b; Bialystok, 1997). The authors are trying to see which of these two theories are valid; the maturational theory or the interactive theory. While bot h theories have yielded supporting evidence, there is not enough data to know which theory is more valid. Also, it is difficult to test the critical period theory because there can be multiple factors contributing to why a child is unable to acquire language past a certain age. The authors hypothesis is that age of arrival does have an affect on the relationship they will have with English as their second language. Methods: The authors tested 240 native Korean speakers. All of these people had immigrated to America between the ages of 1 and 3, and had lived in America for at least 8 years. Their age at the time of testing ranged from 17 to 47 years old. There were also 24 native English speakers in the study, and their ages ranged from 20-45. They used the discontinuity theory for this study. The discontinuity theory is the idea that development occurs in a series of distinct stages rather than gradually in a continuous process. The participants were split into 10 groups based o n their age of arrival to the United States. Most of the participants completed high school in the United States, and many also went on to higher education in the US as well. Participants were tested on an individual basis by bilingual Korean-English research assistants in an hour and a half study session. The participants were asked to repeat English sentences that were later examined by 22.05 kHz where they were normalized for peak intensity. They were thenÂÂ   judged by native English speakers for degree of foreign accent by having them rate the sentences on a scale 1-9 from strong foreign accent to no accent. Now to test their morphosyntax, the participants were asked to take a 144 item grammaticality judgement test. In the test, they had a recording of a man speaking both grammatical and ungrammatical sentences, and the participants had to judge which were grammatical, and which were not. These were the two methods used to test if age of arrival had any effect on the relat ionship of learning English as a second language. Discussion: The aim of this study was to see if the age in which a person moved to the United States had any impact on their relationship with learning English as a second language. In the study, the authors tested 240 Native Korean speakers to see if their age of arrival affected the way they learned English as their second language. They were tested on their phonology by examining their accent for degree of foreign accent as well as their understanding of English morphology by having the participants take a 144 item grammaticality judgment test. The results showed that age of arrival had more of an impact on the participants morphosyntactic understanding compared to their phonological understanding. Based off the data, we could conclude that age of arrival definitely affects a persons relationship with learning English as a second language. This finding definitely supports the idea that a critical period exists when it comes to learning a second language. One problem with the study is that it does not explain why morphosyntactic understanding was affected more than phonological understanding. There could be a number of reasons contributing to this, and it is still unknown exactly why this is the case. I think that this study really helped to prove that there is a correlation between the age of arrival and ability to pick up a second language. However, more research needs to be conducted in order to understand exactly what factors are causing difficulties to arise in being able to learn a second language after a certain age. Also, more research could be done to find out exactly what age it is that second language learning ability starts to decrease. References: Flege, J. E., Yeni-Komshian, G. H., & Liu, S. (1999). Age Constraints on Second-Language Acquisition. Journal of Memory and Language , 41, 78-104

Space Analysis Essay Example | Topics and Well Written Essays - 1750 words

Space Analysis - Essay Example Here, most of the people are unknown to each other and they are related on the basis of their category (Minton, 2012). The case study here is based on Sulzer-Areal in Winterthur, Switzerland. The main focus of the study is to understand how the free area meant for iron and steel factory complex has been converted into public space (King, 2011). The old industrial area of Sulzer-Areal (Fig 1) is located in the center of Winterthur, Switzerland. In the year 1834, it was first built by the Sulzer brothers and the area is spread over twenty hectares till Zurich road and railway. The industrial area reflects the golden days of mechanical engineering in Switzerland. In 1980, a law was passed to expel the heavy industries out of the main city area of Winterthur and from then on, lots of suggestion has been proposed for Sulzer-Areal. The place was much into a state of transition from 1990 and in 1992, the idea of complete demolition of the area was rejected. The owner of the space, Sulzer Immobilien AG group, proposed a very high budget and international project called the ‘Megalou’ for the complete restructuring of Sulzer-Areal (King, 2011). But due to recession, the entire project lost its luster and was left with no tenants and investors. The situation demanded a rethinking, as the operation of the space was not possible because of the huge investment required. So, it was decided to make some superficial changes in the existing buildings and convert it into a public space that will help to rebuild the area in the future. The industrial buildings were slowly transformed into districts. Now the area is a mix of educational institutes, residential complexes, workplaces and leisure. Thus, the area now has a whole new and exciting charm as a public space (King, 2011). The entire study of the Sulzer-Areal case study has been done by keeping in focus certain points that will help the reader understand how the entire

Middle East Conflict Resolution and the Arab Spring Essay

Middle East Conflict Resolution and the Arab Spring - Essay Example The region has shown higher economic growth from 1965 to 1985. However, due to several conflicts and wars prevailed in the region, its economic growth and development has drastically fallen. The conflicts in the Middle East region have been a never ending process from centuries. The recent conflicts in the region have significantly affected its economic progression as compared to others. One of the major conflicts, which took place in the recent past few years, is the Syrian Civil war. More importantly, there always have been conflicts amid the two Islamic groups of the region, including Sinai and Shia (Soliman, 2013; Wilson, 2012). The conflicts among the two Islamic groups have resulted into devastating economic and social loss from decades. Similarly, in last decade, a devastating war in Iraq can be witnessed, wherein millions of people have been affected. Moreover, as a result of certain issues including corruption and terrorist attack among others, there has been extreme downfall in the developmental procedure of the economy of the region. This certainly resulted into discouraging the conduct of business efficiently in the region. Thus, the people of the region in order to bring back the economy on track, protested with the conduct of certain revolutionary activities against the government. One of such significant revolutionary acts can be ascertained as the Arab Spring. The activities involved in the revolt included riots, tremendous civil disobedience, self immolation and strikes that disrupted the normal functionalities of the region (Soliman, 2013; Wilson, 2012). Contextually, the prime intent of this essay is to discuss and analyze one of the significant issues i.e. â€Å"Middle East Conflict Resolution and the Arab Spring† with prime focus on determining its impact on modern businesses. In this similar context, various

Supreme Court Cases in Education Essay Example | Topics and Well Written Essays - 500 words

Supreme Court Cases in Education - Essay Example Linda Carol Brown was an eight year old girl who was denied the privilege of attending the Sumner Elementary School, because she was black. Linda Brown had to walk six blocks, over a switch track, just to catch a bus, although the Sumner Elementary School was a mere seven blocks away. Her father, Reverend Oliver Brown, was a well respected Christian minister. He peacefully approached the principal of the all-white school and calmly asked if his daughter could attend. Linda Brown and her father were immediately denied the right to attend the school. At this point, Reverend Brown sought the assistance of the National Association for the Advancement of Colored People (NAACP) (Dudley, 2004). The NAACP was an organization that was born in 1909. Its goal was to grant all minorities the rights of equal voting, schooling, and housing. It pounced on the opportunity to have a legal battle with the white dominated public schools of America. For years, the NAACP had attempted to stop this sinister way of life through court cases. Until Brown v. Board, the many attempts had proved unsuccessful. The head of the NAACP, Thurgood Marshall, figured that with Linda Carol Brown, they had the greatest possible chance of winning the court case and upsetting the former case, Plessy v. Ferguson. On February 28, 1951, Linda Brown, her father and the NAACP filed their lawsuit against the Board of Education of Topeka, Kansas (Barlow, 2004). A grand jury decided to hear their case but their plea for the overturning of Plessy .v. Ferguson was quickly dismissed. Since the case was being held in Kansas, a southern state, the jury was mostly composed of white male, landowners who still believed that African Americans were inferior humans. This was the reason that the court decided to reject the proposed idea of integrated school districts. Because of appeals, the case kept advancing from court to court,

What Led to the Loss of Many lives During the Waco Siege Research Paper

What Led to the Loss of Many lives During the Waco Siege - Research Paper Example The result of the 51-day siege resulted in the deaths of more than 80 people including 4 ATF agents. The 4 agents died due to gunfire exchange with the members of the Cult on the first day of the raid. The agents of the Bureau of Alcohol, Tobacco and Firearms had waited until the last day of the expiry of the warrant issued by a Texas judge on the Mount Carmel establishment. Surviving members of the Koresh organization have always blamed the ATF and the federal officials for the handling of the situation. The justice department, which came under fire after the events have always pointed the finger at the Branch Davidian’s and their suicidal attempts for the massacre.... The report suggests that Koresh had wives who were in teen years and the raid was carried out in order to save the young children. Evidence also suggests that Koresh punished the children in the compound and told them it was a privilege for them to have sex with him. Food was also withheld from children who went against his orders. The assumption by the department according to the report does not indicate if the abuse continued even during the 51-day siege, in which the Justice department authorized the use of CS gas in order to stop the siege. However, Tausch (33) argues that the real reason for the raid as indicated by the warrant was to confiscate the weapons held by the Branch Davidian’s because of failing to pay a small fee. Tausch further argues that the reason unearthed by the justice department after the raid were fabricated to show that the ATF, the FBI and the Justice Department were right to invade the private Christian commune (72). Reavis (1o7), supports Tausch ar gument that the ATF and the justice department are to blame for the loss of the many lives at Waco. He argues that the ATF and the local police unit were much disorganized and no one was in total command during the raid on the first day. He argues that the loss of 4 officers and 16 others who were hurt could have been avoided if there was good communications. He further argues that Koresh was intimidated by the ATF and the other agents involved in the raid because they came guns blazing. Reavis also argues that the ATF did not walk to the doors of the Koresh establishment to serve him the warrant but instead, they went for a firefight. This prompted Koresh to fight back. In addition to this, the FBI who took over the running of the mission after the first day, kept communication with Koresh

The Difference Between Efficiency And Effectiveness Essay

The Difference Between Efficiency And Effectiveness - Essay Example Performance is usually a measure of whether a target has been reached or not. In the case of effectiveness, performance is enhanced as it measures the degree to which an organization meets its target objectives, while efficiency measures that which are used in the achievement of the objectives. In both instances, there is no measure of performance and hence none is more important in such a perspective. Performance is mainly attributed towards the result rather than the process used in realizing the results. In an instance in which minimal resources are used and no objective is met then the performance is reduced, and additionally, if the target is not met regardless of the effectiveness of the process, the performance is low. One aspect of significant importance in both instances is that organizations, managers can improve both simultaneously. Managers usually work towards attaining certain goals for profitability while at the same working on minimizing the associated resources such as time and costs. It is evident that a manager can improve both efficiency and effectiveness simultaneously. In the current business world, numerous ethical issues are experienced ranging from simple to complex issues. One of the greatest issues is that of inversion of privacy, a contribution of technology and communication, which has become an integral part of organizations towards achieving their objectives. In order to understand an ethical issue, it is best to find out the moral obligation behind it.  

An Approach to Productive Feedback for Teachers Essay

An Approach to Productive Feedback for Teachers - Essay Example First and foremost, Krissia Martinez started her article by presenting the struggle that teachers face, of which after an observation, became a required part of their evaluation systems in many states and districts. The author believes that there is a relationship between feedback and conversations, potentially the related coaching and teacher’s performance evaluations. In addition, the author believes that the relationship makes teachers weary and anxious, feeling threatened during classroom observations. Of course, anyone could feel the same if the observations are based on a certain area with no clear protocols, useful feedback or coaching ways with no helpful information and professional support (Martinez, 1). Also, Krissia Martinez explained the reasons that make teachers struggle during classroom observations. Then, she provides strategies to enhance the post-observation feedback conversation by The Carnegie Foundation, which is the key point of her article. The various strategies include an individual starting a conversation with a positive statement; good listening skills, addressing teacher’s concerns, co-developing next steps, and sequencing the conversation into a predictable format (Martinez,

The Difference Between Efficiency And Effectiveness Essay

The Difference Between Efficiency And Effectiveness - Essay Example Performance is usually a measure of whether a target has been reached or not. In the case of effectiveness, performance is enhanced as it measures the degree to which an organization meets its target objectives, while efficiency measures that which are used in the achievement of the objectives. In both instances, there is no measure of performance and hence none is more important in such a perspective. Performance is mainly attributed towards the result rather than the process used in realizing the results. In an instance in which minimal resources are used and no objective is met then the performance is reduced, and additionally, if the target is not met regardless of the effectiveness of the process, the performance is low. One aspect of significant importance in both instances is that organizations, managers can improve both simultaneously. Managers usually work towards attaining certain goals for profitability while at the same working on minimizing the associated resources such as time and costs. It is evident that a manager can improve both efficiency and effectiveness simultaneously. In the current business world, numerous ethical issues are experienced ranging from simple to complex issues. One of the greatest issues is that of inversion of privacy, a contribution of technology and communication, which has become an integral part of organizations towards achieving their objectives. In order to understand an ethical issue, it is best to find out the moral obligation behind it.  

Animal Farm, Snowball Essay Example for Free

Animal Farm, Snowball Essay He led a revolution, became a scapegoat, and was exiled from his home lane. This person was Leon Trotsky, a Russian Marxist revolutionary. In the novel Animal Farm, Trotsky came out through a pig named Snowball. Throughout the novel, Trotsky is brought up more and more through snowball. Leon Trotsky is represented through Snowball by the many life events they had in common. Snowball was chased away from the farm and became an exile by Napoleons trained dogs. In Trotsky’s life, he too became an exile from his home. He sent away and banned from returning. In addition, Napoleon claimed that all the ideas that had come from Snowball were actually all his own creations. â€Å"One of them all but closed his jaws on Snowballs tail, but Snowball whisked it free just in time. Then he put on an extra spurt†¦ slipped through a hole†¦ and was seen no more†(68). This is a quote from the scene where Snowball becomes banned from the farm. After Snowball takes charge over the farm for some time, his comrade, Napoleon comes to despise him. Snowball and Napoleon never agree on anything. Napoleon did not want the animals to side with Snowball, he always argued against Snowballs ideas and was never friendly towards him. What also went on was Napoleon, showing his hatred for Snowball, examined the layouts Snowball had made for the windmill and urinated over the plans. Napoleon showed his disgust by urinating on something that was important to Snowball. â€Å"†¦looked closely at every detail of the plans†¦ then suddenly he [Napoleon] lifted his leg, urinated over the plans, and walked away†¦Ã¢â‚¬ (65). Obviously the action that Napoleon just committed shows hatred for Snowball. After Snowball was gone from the farm, he became a scapegoat for Napoleon. It was suddenly Snowballs fault that the windmill had collapsed. Napoleon needed a reason for it to have fallen, and who better to blame than Snowball, that way the animals would want revenge by building a stronger one; exactly what Napoleon wanted. In addition, it was announced that Snowball had been sneaking onto the farm to steal corn, break eggs and what not. Whatever bad thing that occurred was automatically put on Snowball by Napoleon. â€Å"Whenever anything went wrong it became usual to attribute it to Snowball†(88). With hardly ever any proof, Snowball was always the scapegoat. In conclusion, it is obvious how Snowball went through the events of Leon Trotsky’s life. From having his ideas stolen to becoming a scapegoat, he led the life of a famous revolutionary leader, though it wasn’t a very good life, he made a big impact on all of his comrades and will never be forgotten.

Total Quality Management in Higher Education

Total Quality Management in Higher Education Total Quality Management (TQM) has become a frequently used term in discussions concerning quality. TQM is considered to be an important management philosophy, which supports the organizations in their efforts to obtain satisfied customers. However, there exist extensive numbers of examples of failed or badly performed implementation processes of TQM. This is a problematic phenomenon, which negatively affects organizations, irrespective of size, in their development towards excellence and ultimately survival in a competitive environment. Furthermore, diversity among researchers exists regarding the actual benefits of TQM. Total Quality Management (TQM) has been adopted by many organizations worldwide, its implementation in non-profit organizations, such as higher education institutions, presents more challenges and difficulties than those encountered in business organizations. A critical step in TQM implementation is the process of customer identification. In addition to customer identification, there are other issues such as leadership, cultural, and organizational issues that tend to create difficulties for TQM implementation in higher education. In this article it has been tried to bring out a clear status of higher education and emergent needs to enhance the quality of higher education. Globalization of higher educational services has become an area of key focus for many countries. In order to fuel the socio-economic development of the country, higher education is playing a more active role in our country and this requires a paradigm shift in terms of governance and service delivery. These issues along with the role of students from a quality perspective and performance measure for higher education in Pakistan are discussed, and suggestions are made for their resolution. Higher education institutions must become more innovative leading to quality institutions of knowledge production and dissemination. Realizing the importance of higher education, a lot of innovative experiments are being done to improve the performance of this sector. Application of TQM concepts is one of such measures, which will go a long way in revolutionizing the higher education system. The paper attempts to theoretically conceptualize TQM in higher education. BACKGROUND TQM is, compared to other concepts such as quality control or quality assurance, wider since it embraces the whole organization instead of focusing on parts of the product or service. TQM has been acknowledged as an important subject in management theory and practice and has become a frequently used term in discussions concerning quality. The use of TQM among many western organizations has been relatively high during the 1990s, but there exists a diversity of opinion among researchers regarding the actual benefits of TQM. Research results that claim that there exists positive effect on performance can be found in e.g., Allen and Kilmann, for instance, express a more pessimistic view regarding the benefit of TQM investments [3]. INTRODUCTION The application of Deming quality management principles in educational institutions throughout the world as a successful paradigm for school restructuring and reengineering has been widely documented [9]. Multiple positive effects of TQM on increased student achievement tests and teacher made tests, increased student self-esteem, increased teacher morale, and increased parent and community involvement in the institute. Profound knowledge consists of appreciation for a system, knowledge about variation, theory of knowledge, and psychology. Hence, one of the purposes of this article is to study the implementation of TQM in Pakistans higher education. TQM is a management philosophy adopted from industry which has been applied to higher education in many countries throughout the world. TQM, also referred to as continuous quality improvement, is not without controversy and is far from being universally accepted in education. TQM philosophy entails forming quality improvement teams which investigate problems, suggest solutions, and realize quality improvement. TQM strives for continuous quality improvement in organizations. The popularity of TQM, some institutions and companies has found it difficult to implement this program successfully. An examination of the literature suggests that only one-third to one-half of organizations have observed significant improvements through TQM programs [10,11]. This lack of significant success is often not a failure of the TQM concept, but a failure to pay sufficient attention to the cultural and structural variables that influence TQM. Unlike other programs, TQM involves changing the way people interact and work in institutions. As such, it is a context-dependent program, the success of which depends to a large extent on cultural and structural factors. Hence, another purpose of this critical study is to identify the cultural and structural issues involved in implementation of TQM in Pakistans higher education. TQM in the classroom has been successful. The historic role of teacher, lecturer and provider of knowledge has been replaced with a new role: teacher as mentor, facilitator and classroom manager. The goal is no longer simply to impart knowledge to students; teachers and students must design and deploy education together. If students are active participants in the classroom, it is more likely that true learning is really taking place. The study of the Literature suggests to accomplish collaborative learning with technology, new metaphors for teaching e.g. teaching as choreography or teaching as maneuvering must emerge as teachers focus more on structuring the learning and social environment to encourage active participation and group self-reliance in completing team work [2]. The importance of education for the development of excellence, expertise and knowledge leading to overall development in economy cannot be undermined. This has necessitated a sound strategy for the development of higher education in almost all countries of the world. Establishing leadership and educational governance quality in the world is possible only when we have a developed system of higher education in which efficiency and effectiveness remains the sole criterion to evaluate educational, instructional quality and institutional performance. The system of higher education is found efficacious in making available to the society a dedicated, committed, devoted and professionally sound team of legislatures to decide the future of any nation. This is possible only when the principles of quality management are inculcated in the system of education. Total Quality Management (TQM) is inevitably common factor that will shape the strategies of higher educational institutions in their attempt to satisfy various stakeholders including students, parents, industry and society as a whole. The paper is also a theoretical attempt to explain the application of TQM in education. It deals with issues pertaining quality in higher education and moves on to identify variables influencing quality of higher education. Based on the discussed research dimensions and overall purposes, this article focuses mainly on the four concepts TQM, Implementation, Institutional Culture and Change, and Institutional overall performance. Although the aim of this article does not include a formal analysis of these concepts, a general discussion will be held in order to outline the overarching research area within present research. RESULTS AND DISCUSSIONS Total Quality Management Dale, describe TQM as an umbrella of concepts and ideas in various contexts related to the quality field [6]. Furthermore, TQM is described as the mutual cooperation of everyone in an organization and associated business processes, in order to produce products and services which meet, and hopefully exceed the needs and expectations of customers. Oakland describes TQM as an approach to improve competitiveness, efficiency and flexibility for a whole organization [20]. TQM may be defined as an evolving system, consisting of practices, tools, trainings, and methodologies for managing organizations in a rapid evolutionary context. According to the authors, the system provides customer satisfaction and improves the performance of organizations by e.g. eliminating product defects and speeding service delivery. As the definitions of TQM vary, so does the interpretation of the fundamental constituents. Many authors within the TQM area consider values to be elemental for the concept. However, the number of values, as well as the formulation, differs slightly between different authors. For example, the Malcolm Baldrige National Quality Award is based on eleven core values and concepts [19]. Furthermore, Sila Ebrahimpour found in their extensive theoretical investigation that the following factors were the most frequently addressed within TQM definitions: (A) Customer focus and satisfaction. (B) Employee training. (C) Leadership and top management commitment. (D) Teamwork. (E) Employee involvement. (F) Continuous improvement and innovation. (G) Quality information and performance measurements. Still, there is a base of values, which seems to be common to most authors, consisting of the six values illustrated in Figure-1 [25]. TQM As A System Some authors have suggested a system approach to the concept of TQM, see e.g. Hellsten Klefsjo, declare that TQM not only consists of values, such as process focus, customer focus or people commitment [13]. The values are supported by techniques, such as process management, customer focused planning, or target-oriented groups, and tools, such as control charts, the quality house or Ishikawa diagrams, see Figure-1. The choice of TQM core values is supported by the findings of Sila Ebrahimpour [25]. Aim: Increase external and internal customer satisfaction with a reduced amount of resources TECHNIQUES Quality Circles Policy Development Self-Assessment Process Management Benchmarking Employee Development Quality Function Deployment TOOLS Ishikawa Diagram Design Matrix ISO 9000 Tree Diagram Control Chats Criteria of MBNQA Process Maps VALUES Top Management Commitment Focus on Processes Improve Continuously Base Decisions on Facts Focus on Customers Let everybody be Committed Figure-1: TQM seen as a continuously evolving management system consisting of values, techniques, and tools. The discussion held by Hellsten Klefsjà ¶ implies that TQM can be defined as a management system that consists of three units, which means a network of dependent units with a joint goal. The three units are the core values, techniques and tools. The goal of TQM is, according to Hellsten Klefsjo, increased customer satisfaction with a reduced amount of resources [13]. This implies that TQM is relevant in all fields of our society, not only in companies but also in health care, educational institutions, defense authorities. Interpretation of the Core Values A strategy for TQM in an organization must be built on the managements continuous commitment to questions concerning quality. According to Bergman and Klefsjà ¶, the management must establish a quality policy and support quality activities economically, morally and by managing resources [4]. But management should also set a good example by actively taking part in the practical work. Successful work towards TQM must be built with the managements continuous involvement as a basis. The core values are important parts of this work. However, the use of core values for managing an organizational change and cultural development is not unquestioned. According to my point view the management can stimulate the individual values by managing resources, supporting quality activities and by systematically working with techniques and tools that support the core values. Top Management Commitment Working with TQM and keeping up the quality improvements demands total commitment of the management [1,5,22]. The management must initiate planning for implementation and participate in the work including evaluation of processes and results. All senior leaders in the organization must create a customer orientation and set clear and visible quality values. The importance of the role of senior managers as advocates, teachers and leaders cannot be overstated. These leaders must serve as role models throughout the organization, thus reinforcing the quality values at all levels in the organization by choosing and applying appropriate techniques and tools. Focus on Customers A central core value in TQM is that all products and processes should always have a customer focus. Quality should be valued by the customers and should always be put in relation to their needs and expectations [20]. This signifies that quality is a relative concept, which, among other things, is set by the market competition. The organizations need to be dedicated to satisfying customers. To focus on the customer means, therefore, that one tries to find out the customers needs and values by conducting market analyses and then trying to fulfill the market expectations while systematically developing and implementing the services. Focusing on the customer does not only apply to the external customers. Every employee has customers within the organization, internal customers, and in order to do a good job their needs also have to be fulfilled. Base Decisions on Facts An important core value in TQM is to make decisions based on facts that are well founded and to not allow random factors to be of decisive importance. This calls attention to the importance of knowledge regarding variation and ability to handle and control variation. The improvement program called Six Sigma, with origins from Motorola in the 1980s, is one approach for considering variation within organizations. The different measurements required to obtain multiple facts can be classified as measurements of customer satisfaction including employee satisfaction, measurements of market position, development process and operating measurements. When the organization receives the described information it is in a position to quickly determine how well it is performing, compare its performance to that of competing or benchmarked organizations, and decide the action that is now convenient. Focus on Processes Much of the work within an organization can be looked upon as a process, which means a repetitive sequence of activities [4]. The goal of the process is to produce services, which should satisfy the customer. The corollary of focusing on processes is that the focus is not on results. Instead the result is the dependent variable. The result comes from whatever process is followed; process drives result. The process generates data that indicates how well the process is satisfying its customers. The process orientation and focus has become even more focused on in the currently dominating improvement program Six Sigma. Continuous Improvement It is not enough for an organization to do better than it did previously. The external demands an organization faces are continuously increasing. Consequently, an organization needs to continually try to improve the quality of its services/products and processes. The continuous improvement of the process leads to customer satisfaction, which results in an external quality improvement. The Deming cycle, or the PDCA-cycle, is a model for process analysis and improvement and serves as a symbol for continuous improvement. The PDCA-cycle consists of the four phases; plan, do, check and act [8]. Everybodys Commitment If the organizations quality strategy should be successful, all of the organizations employees should be engaged in the work of satisfying the customer with a continuously improved quality. Everybodys commitment means that continuous improvement should be practiced everywhere in the processes and that the involvement of all employees at every level should be facilitated. The work is based on the skills and participation of every employee and his or her understanding of what is required. Educating and training all employees provides the knowledge needed on the mission, vision, direction, and strategy of the organization as well as the skills they need to secure quality improvement and resolve problems. Maturity Levels of TQM If we consider TQM as a management system that can be implemented in an organization, we must be able to form an opinion of different levels of adoption to the system. Lascelles Dale describe six different levels of TQM adoption (or lack of it), which they have termed: Uncommitted Drifters Tool-pushers Improvers Award winners World class Figure-2: Levels of TQM adoption. (Lascelles Dale, 1991.) These levels are not necessarily the stages through which organizations pass on their TQM journey; they are characteristics and behaviors which organizations display in relation to TQM (Dale, 1999). The levels described by Lascelles Dale are intended to support organizations in identifying their weaknesses and addressing them, as a part of the continual challenge of continuous improvement throughout the organization [17]. As discussed by Lascelles Dale one level of TQM adoption are quality award winners [17]. Quality awards have been established over the last decades in order to stimulate TQM work and by appointing award recipients honor them for good work. This is used as inspiration for others. Many organizations choose to work towards TQM by means of the award criteria, for instance, by taking part in a quality award process. The types of quality awards extend from international, national, regional, branch-wise and in-company quality awards. An example of an international quality award is the European Quality Award, which was developed in order to sustain business excellence efforts among organizations within a European context. TQM and Organizational Performance Organizational performance is possibly the most widely used dependent variable in organizational research today. However, at the same time it remains one of the most vague and loosely defined constructs. Performance is a multifaceted concept, which can be measured at a organization or system level. While companys performance has its standardized indicators, it is more difficult to select for performance indicators of a system of organization and people. Previous research regarding TQM and performance has covered both soft and hard performance measurements, where hard measurements as accounting variables are in majority. However, one may argue whether financial figures are better at measuring the consequences of yesterdays decisions than they are at indicating tomorrows performance. The importance of soft performance measurements, as the organizations intangible and intellectual aspects, cannot be neglected. Activities may, at times, lead to favorable outcomes on one performance dimension and unfavorable outcomes on another performance dimension. Considering TQM, with its relatively extensive focus on intangible and intellectual aspects, one may argue that a study aiming at linking TQM to performance should include soft measurements. As McAdam Bannister maintain both hard and soft measures of performance are needed within the TQM framework [18]. Logically, the choice of performance measurements relies on the actual interest in what to examine. Furthermore, studying performance development in the context of TQM implementation necessitates a study of the impact of historical management decisions. Consequently, theoretical issues regarding performance and TQM investment will be the point of departure in the forthcoming discussion. One approach to study the relationship between TQM implementation and performance development is to compare quality award recipients with different control companies. However, sometime there was no significant difference between the quality award recipients and control companies during the implementation period. Another approach is to investigate the development of the share price on the stock market for quality award recipients. Implementation and Organizational Change The common standard dictionary definition of the term implementation is plainly to put into effect according to some definite plan or procedure. Based on that definition, implementation can be considered as a deliberate and sequential set of activities directed toward putting a strategy or policy into effect, making it occur. As a consequence one could view implementation as a process of interaction between the settings of goals and actions geared to achieve them. This means that implementation also can be considered as a form of organizational change. The above descriptions discuss implementation as a set of activities or a process. When considering TQM implementation, a definition that implies that implementation is a process of activities seems most suitable. This is due to the fact that the subject in this case, i.e. TQM, is, according to the definition, a thorough management system that includes all parts of the organization, and consequently is a process of activities needed. There must be a starting point when implementing. If no action is started, implementation cannot take place. There must also be an endpoint. Implementation cannot succeed or fail without a goal against which to judge it. Failure to implement may result either from overestimation of what can be accomplished or from underestimation of ability to implement. What Initiates the Change Process The ability for change and renewal is important and necessary in order for the organizations to maintain their long-term efficiency. A condition in this respect is that the change and renewal process brings improvements. Improvements demand changes but all changes do not bring improvements. An important aspect that affects the nature of the change process is the question concerning what factors initiated the change process. In addition to four main causes for strategic change namely environment, business relationships, technology, and people. TQM Implementation in the Organizational Development Context To implement a management system, such as TQM, requires an extensive organizational change, provided that the organization does not unconsciously work according to the system. Organizational Development includes TQM, the Excellence movement, culture management and business process reengineering. As a result, these change initiatives have tended to borrow fragments of the Organizational Development approach. This has had both positive and negative consequences. On the positive side, it has made aspects of Organizational Development more widely known. On the negative side it has tended to misunderstand and misapply much of the underpinning theory, methodology and intervention practices of Organizational Development. This has, according to Grieves, often resulted in radical authoritarianism or radical democratized programmed approaches, rather than culturally democratic or pluralistic approaches to change [12]. The Change Process TQM Related Recommendations and Strategies There has been much written concerning implementation of TQM. The books and articles extend from very tangible and detailed descriptions, e.g. Deming, Juran, NIST, [7,14,19]. The theory describes both obstacles for working towards TQM and several strategies for implementing the concept in an organization. The recognition of quality as a strategic issue in business planning is critical for a successful TQM implementation. TQM implementation should be clearly aligned with the organizations strategic priorities and goals and be planned properly [3,15,24]. The planned implementation appears to incorporate many initiatives that address soft aspects, such as team work, employee involvement and culture. Failure of TQM implementation is, according to some authors, not due to flaws in TQM principles but in inadequate systems for executing TQM properly, implying the importance of tangible aspects. However, Saad Siha maintain that the reasons for failure in implementing TQM are mainly due to h ow it is implemented, i.e. the implementation phase [23]. While TQM principles appear obvious, many organizations have found them very difficult to execute, reportedly due to the fact that the implementation is cumbersome, time-consuming, and frequently lacking focus. Some of the resistance to TQM may be understood as typical resistance to any change. This may be more severe if the organization is successful, if there is a particularly deep-seated culture, if there has been a great deal of change already, or if the change lacks legitimacy, education and communication. A well-defined implementation structure and clear resource allocation are therefore essential. Implementation of TQM is a complex process since all employees, starting with top management, need to accept a fundamental organizational change [18,24]. The issue of management commitment is stated as a critical factor for successful TQM implementation [1,20]. The management is not only obliged to be committed in order to change the organization towards TQM, it is also imperative that the management ensures that the employees are permeated with the same quality commitment and managers therefore need to focus on and work with the intangible aspects to a large extent. TQM applications across developed countries reveal that the tangible aspects, such as technology, structure and strategy, have a relatively small impact on TQM effectiveness compared to the largely hidden and intangible aspects such as values, attitudes and perceptions. The use of teamwork during the quality development process is therefore of major importance. Senior managers may begin the task of process alignment by series distinct but clearly overlapping steps. This recommended path develops a self-reinforcing cycle of commitment, communication, and culture change. The order of the steps is important because some of the activities will be inappropriate if started too early. In the introduction of total quality for managing change, timing can be critical. Organizational Structural and Cultural Impacts on TQM Implementation The impacts of the companys culture and structure on TQM implementation is examined through seven building blocks of TQM: management leadership, employee involvement, responsibility for quality at source, elective teamwork and coordination, focus on customer, benchmarking and continuous improvement [9,14]. Management leadership: In companies with control-oriented cultures and mechanistic structures, managements role is to plan, organize, direct and control employees. This does not match the TQM concept, which suggests that management should lead and create a vision rather than plan, empower rather than direct, and partner and delegate rather than organize and control. TQM philosophy directs management to create a vision that incorporates quality as integral to the business, and to establish policies, practices and structures consistent with that vision [9, 14]. Employee involvement: Since TQM de-emphasizes status distinctions and empowers employees to make decisions and use their own intelligence [9], It is less likely to succeed in organizations with control-oriented cultures and mechanistic structures that centralize decision-making authority in managerial hands. Organizations with flexibility-oriented cultures and organic structures, in contrast, show a better fit with TQM practices such as employee involvement, empowerment, teamwork and coordination across functional areas. Responsibility for quality at source: TQM implementation requires employees to identify and diagnose quality problems and take corrective action without going through the management hierarchy [9]. This should be easier to implement in organizations that decentralize decision-making, empower employees and provide employee training in quality control techniques, than in organizations that centralize decision-making and focus on vertical controls. Elective teamwork and coordination: TQM emphasizes horizontal coordination based on flow of work processes across functional areas [9]. Organizations with flexibility-oriented cultures and organic structures have existing horizontal coordination and communication networks, and should be more successful at implementing TQM compared to the organizations with control-oriented cultures and mechanistic structures that have mainly vertical coordination and control channels. Focus on customer: Organizations with control-oriented cultures and mechanistic structures have an internal focus and pay less attention to the organizations interdependence with the environment. This does not match the TQM philosophy of obtaining customer feedback, meeting and exceeding the needs of external as well as internal customers, and blurring boundaries between the organization, suppliers and customers [9]. Benchmarking: The TQM concept of benchmarking industry best practices is more likely to be successful in organizations with flexibility-oriented cultures and organic structures that consider themselves interdependent with other entities in the environment, and less likely to succeed in organizations with control-oriented cultures and mechanistic structures that largely ignore what is happening outside their boundaries. Continuous improvement: Organizations with control-oriented cultures and mechanistic structures focus on permanence, since it increases expectedness which, in turn, increases control. This does not match the TQM emphasis on change and learning through strategies such as benchmarking, employee training, cross-functional teams and experimentation. The `kaizen philosophy of small and continuous improvements finds a better match in organizations with flexibility-oriented cultures and organic structures. Challenges In TQM Implementation In Higher Educational Institutions: The main focus of the article is to identify and deliberate the critical issues and considerations of TQM implementation in the area of higher education. Critical issues in implementing TQM in higher education include leadership, customer identification, cultural and organizational transformation. Unlike business organizations, chancellors and departmental heads of higher educational institution do not enjoy ultimate authority in hiring and firing of personnel, process of allocation of resources and distribution of responsibilities and authorities. Lack of necessary authority makes it difficult to deploy their concepts, opinions, values and goals through layers of higher education institutions. Deep rooted traditions dating back to centuries, a rigid departmental model, inter departmental competition for resources, lack of market focus are the cultural and organizational reasons that makes it difficult to tune in with TQM transformation. Ambiguity in customer identification also crea tes hurdles in TQM implementation. While most administrators tend to perceive students as customers of faculty in classrooms, many faculty staff resent this metaphor as being too commercial. Without a well-defined customer and a customer focus, quality efforts may be easily diffused. Owlia and Aspinwall concludes that customer orientation is a more problematic principle of TQM when applied to universities because of special nature of many academics whose motivation to work is often independent of market issues [21]. The effectiveness of leadership is adversely affected by individualism among academic staff and due to absence of team working. Impact of TQM in higher education is small due to organizational inert