GENETICS ASSISGNMENT (GENOGRAM) Essay Example | Topics and Well Written Essays - 500 words

GENETICS ASSISGNMENT (GENOGRAM) - Essay Example Below is a three-generation genogram showing age, death, marriage, illness, abuses, and divorce status of the family. Genes, made of DNA bases, are the blueprint of inheritance (Skirton et al., 2005). Each individual has thousands of genes, with each individual inheriting a replica of the gene from their parents. The organization of genes is along string-like edifices called chromosomes and each individual receives 2-sets of 23 chromosomes one from their father and one from their mother (Tranin & Jenkins, 2003). Apparently, John has inherited the alcoholic habit from his father and Lois has inherited asthma from her father who had it as a recessive trait that developed from Lois’ paternal grandmother. A comprehensive DNA screening can be done to ascertain the exact level of alcoholism in John and maneuver on techniques of circumventing further alcoholism in the family (Jenkins & Lea, 2005). Additionally, John, Lois, and Rick can be subjected to patient education program where John will be taught on how to avoid alcohol, Lois on how to handle her asthmatic condition, and Rick on how to avoid becoming alcoholic or ascertain whether he is likely to be alcoholic in the future. John and Lois should learn on how to manage their situations rather than blaming their families for their medical conditions. However, it is ostensible that if the second generation (father in particular) had been subjected into programs that would enable them to effectively handle his conditions, the risks of asthma and alcoholism would have significantly been reduced in the third generation. Additionally, genetic testing for innate genetic variants should be performed to determine genetic risks for the third generations (Rick, Lois and John) progeny, diagnose the symptoms in John and Lois, and shed light on the appropriate treatment for John and Lois’s condition. Gene products, DNA, or chromosomes

Richard Hamilton Artist Analysis

Richard Hamilton Artist Analysis   Shae Eakright   Clipping images from American magazines, Richard Hamilton creates an image of a home that challenges viewers to acknowledge the materialistic thoughts that consumed their minds. As a photomontage, Just What Is It That Makes Todays Homes So Different, So Appealing?, contains several images cut from different sources and appears to be inspired however much by the style and medium of the Dada Movement. The economy in Britain at the time Hamilton created this piece was suffering from the war. The British people were left with few consumer indulgences. As a result of this, the British people appreciated the advancements in technology and the mass amounts of consumerism found in America. Richard Hamilton is just one of the many British artists who embraced and admired American culture, using it in his art to depict on of the themes of the Pop Art Movement. First it is important to note the setting that is illustrated in this image. It is clear that the figures are placed in a home. By looking into each of the objects, we can deduct that it is probably a living room. Hamilton has added several features to this work of art that help viewers identify it as a living room, and multiple consumer products that were growing in popularity at the time. There is a couch in the lower right hand corner as well as a couple lounging chairs found around the room. One of the chairs has a newspaper laying open draped over the armrest. A coffee table is placed in front of the couch and supports a teacup and coaster, a napkin, what appears to be a pastry, and a couple books. Next to the couch and the coffee table is a television with a bowl on fruit sitting on top of it. The TV is on and showing either a show or an ad with a beautiful woman, wearing a pearl necklace, talking on the phone. A side table sets next to the chair in the center of the image and holds a lamp and a decorative plant. A couple other decorative plants are placed in the room in other areas as well. An area rug with an unusual pattern fills much of the floor. There is a staircase leading up to a door on the left of the image. On the staircase is a woman using a Hoover vacuum cleaner. Framed photos and posters hang on the wall. Besides the woman on the staircase there are two main figures that occupy the room. Hamilton also made sure to add some features and items that wouldnt be found in the typical living room to make viewers question the automatic assumption that this is a living room. To start, the living room is not sheltered by a ceiling or roof; instead there is an opening that shows an enlarged image of the earth in space. The unusual rug covering the living room floor is actually an distant view of people covering a beach. Besides the lack of a ceiling, there are several other small details that stand out, making this an unusual interpretation of a living room. There is a tape recorder sitting in the middle of the living room floor. A canned ham rests on the coffee table, acting almost like a vase or decorative sculpture. The Ford logo covers the larger than normal lampshade that is near the center of the image. Instead of art or pictures of family members, the framed photos on the wall are a large comic book poster and a traditional nineteenth century portrait. The comic book pos ter is titled young Romance and shows an idealized woman standing static with a man holding each of her arms and another man standing behind the two of them. The large window on the side of the wall containing the door opens up to reveal a theater. The vacuum being used reaches from the floor level to the top of the staircase and has an arrow pointing to a spot roughly half the length of the hose that states, ordinary cleaners reach only this far. The two main figures in the image are out of place for the environment they are place in. The man positioned slightly off-center is standing in a body builder pose and looking directly at the viewers. He is wearing only his underwear and is holding a giant Tootsie Pop. The Tootsie Pop has the word POP printed on it in big letters; possibly referencing the art movement that this piece is associated with. The sucker appears to be pointing in the direction of the female figure that is seated on the couch. The woman is only wearing a lampshade on her head and couple small pieces of fabric barely covering her breasts. She is situated in a suggestive pose that appears to be very uncomfortable for relaxing on the couch. Hamilton provides viewers with a work of art that includes several topics such as male and female stereotypes, consumerism, mass media, and new developments in technology.

native son :: essays research papers

Native Son by Richard Wright is a novel written about a black boy trying to grow up in a white man's world. Bigger, the main character is growing up in a typical black neighborhood. He is the only man of the house so he must help his mother support them. In this novel it is important to understand that Bigger is prone to violence. In every tough situation he gets stuck in he refers to a violent action. This can be seen by the way he treats his friends and family. Richard Nathaniel Wright was born on September 4, 1908 on a Mississippi plantation. During Wright's childhood he was often hungry. This allowed Wright to write passionately and eloquently about the meaning of suffering in the lives of oppressed and exploited people because that suffering was an integral part of his own life. The Communist Party had been the only one to take a deep interest in Wright's life and had at one time offered to teach him to write. Richard Wright died on November 28, 1960, at the age of 52 in Paris. I feel that Max had the most influence on Bigger. Max helped Bigger realize what he had done wrong and how that not all white people were out to get the black man. At times Bigger felt that Max was only trying to hurt him but I think that deep down inside, Bigger knew Max was only there to help him. Max looked out for Bigger's best wishes. Max knew that if Bigger had testified the lawyers would have pounded him with questions and made him seem more guilty that he already was. I also think that it showed Bigger that Max cared about him and showed Bigger that he was going to help him though the trial. Max showed not only the court, but the nation as a whole, that there is no way that Bigger can receive a fair trial. Bigger and Max both know this. I also think that Bigger knows he is going to die Max is the only one trying to help him. Max is trying to do the impossible. That is make a black man innocent in a white man's court. Max not only had a major influence on Bigger, but he was one of the only people that cared about him and did not judge him by the color of his skin.

Emmett Till

Makayla Richards Mrs. Bonham Literature 101 5 March 2013 Emmett Till Research Paper Three Major Points: Lynching, Mississippi Trial, 1955 Thesis Statement: The murder of Emmitt Till was a murder that changed America The Emmett Till Case, 1955 Chilling Circumstances The story surrounding the death of Emmett Till provides chilling insight into the racism that dominated the South in the 1950s. Emmett was a fourteen-year-old Chicago native visiting his relatives in Mississippi.While out with his cousins and friends on the night of August 24, 1955 he allegedly whistled at a white woman in the grocery store owned by her husband. Stories vary as to what Till actually said or did. According to the woman Till grabbed her and made rude remarks. Some witnesses claimed that he only whistled at her. Still others assured that he made no problems at all, that he whistled continuously to control a speech defect. A Brutal Murder Roy Bryant considered his wife's life ruined by the incident. Several ni ghts after the episode, Bryant, his half brother J. W.Milam, and possibly others kidnapped Emmett from his relatives' house in the middle of the night. The two men beat him severely and, apparently saw that he had a picture of a white woman in his wallet, they shot Emmett and threw him in a nearby river. Several days later the body was found, and Bryant and Milam were charged with murder. A Surprise Verdict Mississippi politicians and newspapers condemned the murderers and promised justice. However, Mississippians became more defensive as the weeks passed. The Press attacked them with harsh judgment of racial violence in the South.The highly publicized trial of the two men was charged with racial tension. African-American politicians and reporters from the North were treated horribly and were segregated in the courtroom. The prosecution was poorly prepared, and the substance of the defense was the shocking claim that Till was not actually dead. The Killers Tell the Truth The truth o f what happened that night became public knowledge several months after the trial. William Bradford Huie, an Alabama journalist in Mississippi to report on the aftermath of the case, offered Bryant and Milam money to tell their story.Since the two could no longer be prosecuted for a crime of which they had already been accused of, they gladly told for a fee of how they had beaten and killed young Emmett Till. Huie reported what the killers told him in the January 24, 1956 issue of  Look magazine. Now publicly exposed as murderers, Bryant and Milam were shunned by the community, and both moved elsewhere within a year. Emmett Till in death became a saint for the civil rights movement, a symbol of the racial hatred African-Americans who had yet to overcome the situation.Citations: MLA Citation â€Å"Emmett Till†. Anti Essays. 23 Mar. 2013 APA Citation Emmett Till. Anti Essays. Retrieved March 23, 2013, from the World Wide Web: Source Citation:  Ã¢â‚¬Å"The Emmitt Till Case, 1 955. †Ã‚  Discovering U. S. History. Gale Research, 1997. Reproduced in Discovering Collection. Farmington Hills, Mich. : Gale Group. October, 2001. Stephen J. Whitfield,  A Death in the Delta: The Story of Emmett Till  (New York: Free Press, 1988). Source Database:  Discovering U. S. History

Employment and Flag Question

List ONLY Southeast b. List each school separately, spelling out the complete and full name of all institutions c. List only your highest education Incorrect d. None of these The correct answer is: List each school separately, spelling out the complete and full name of all institutions Question 4 Hag question When listing items in the Experience section of your resume you should: a. Only list the experiences you liked b. List items in reverse chronological order, beginning with your most recent experience Correct c. List items in chronological order, beginning with the first experience you had d.Only list experiences which were a minimum of one year in length The correct answer is: List items in reverse chronological order, beginning with your most recent experience Question 5 If need to send in my resume immediately, is it okay to send it without checking for errors? True False Correct The correct answer is ‘False'. Question 6 Job Task items within my Experience section should have the following characteristics: a. Displayed in a bullet point format b. Each begin with a strong action verb c. Each are relevant to the position you're seeking d. All of the above Correct The correct answer is: All of the aboveQuestion 7 Your resume serves as a guide to your personality, goals, skill sets, and experience. A resume can determine whether you'll get an interview or not. Your resume needs to have the following: (select the best answer) a. Relevant personal data such as name and contact information. B. Work history (include internships, part-time work, etc. ) c. Educational background. Question 8 How should I list my responsibilities in my work history? A. Write down everything did in a brief paragraph under the position b. Use brief bullets to list the things I did that meet the requirements for the job I'm applying for c. E action verbs to describe my experience d. B & C Correct The correct answer is: B & C Question 9 The Experience section of your resume should : a. Be truthful b. Include complete employer names c. State specific position titles Question 10 Why should I avoid using resume templates? A. They can be difficult to personalize and may not upload correctly to employer job sites b. They do not appear professional c. They only allow the user to utilize one font style d. All of the above Incorrect The correct answer is: They can be difficult to personalize and may not upload correctly to employer job sites Question 11Should always submit the same resume for each position I apply for? A. Yes, because it contains my entire work history. B. No, because my resume will consistently be updated and should be adjusted to the different positions I apply for. Correct c. Yes, because it is easier to do it that way. D. None of the above The correct answer is: No, because my resume will consistently be updated and should be adjusted to the different positions I apply for. Question 12 speak several foreign languages. Should I list them on my res ume? A. I should always list any foreign languages know and provide my level of proficiency for each .

Sadomasochism essays

Sadomasochism essays Sex plays a major role in today's society. It seems that all forms of media use sex to help sell their products. From television, radio, music, and advertisements, to video games, the Internet, and even art and pictures, sex rules our society. In addition, many newspapers have recognized the attractiveness of sexual aggression as crime news, and therefore as prime news, lately. Some of these sexual acts are said to promote criminal behavior subconsciously among certain individuals. As rape and sexual assault became a more serious social problem in the 80's, this prime news story helped many papers to sell more copies in the competitive news market, while creating an impression of responsive and responsible reporting. In the 90's, sexual acts started to become more relaxed and doors were opening to the public eye. The public was soon seeing variations of sexual activities that seemed to be a little dark and mysterious to the everyday normal human being. Now in the year 2000 and the years to come, some sexual acts might in fact become normal to our everyday living. Everywhere you look nowadays sex is there slapping you in the face, however sexual activities have changed dramatically from that of the past. In this day and age, sex is a much more talked about topic then it used to be. With all this openness about sex, we have also seen a rise in some of the not so popular sexual activities. However, let's face it, the perpetuation of life all falls down to one act, the act of sex. There are many different meanings to sex. Sexual intercourse can be exercised through intercourse as a means of procreation, emotionally or for the simple pleasure of the act itself. However, sex can also be performed with different techniques or variations. Sadomasochism is just one of these variations of techniques that a person can use to reach their sexual peak. Sadomasochism is a term that combines two words, Sadism and Masochism. Sadis...

Introduction to accountant Essays

Introduction to accountant Essays Introduction to accountant Essay Introduction to accountant Essay Task-1 Acknowledgement: I would like to be grateful to my teacher for helping me out in this assignment. Introduction: For this assignment my aim to give advice to someone who is unsure about what is required and cannot see the purpose of maintaining accounting records. Basically, this person is one who does not understand the value of Account and its purpose. What is an accounting? An account is to be defined as the skills or practice of maintaining accounts and preparing reports. And the purpose is to aid financial control and Management of a business. Book keeping: Book keeping is the process of recording in books of account or on computers the financial effects of business transactions. In bookkeeping, an accountant keeps a comprehensive record of how much your business owes creditors and how much is owed to you. The records of these transactions also indicate how much you have invested in equipment and inventory. Why Accounting? There are many reasons to keep accounts in business, which consists these certain points: * To record * To monitor * To control * To manage * To measure * To inform The main features of Accounting * Recording Transaction * Monitoring activity and Controlling the business * Helping the management of the business * Informing the various stakeholders * Controlling the purse string * Planning for the feature * Comparing with past performance * Analysis and evaluation Recording Transaction- Recording transactions includes documenting revenues (by invoices or sales receipts), and entering purchases (in the account payable account) and expenditures (in the check register). Using Office Accounting, the small business owner can move beyond daily recording to higher level accounting tasks, such as recording sales orders, tracking prospective customers, and projecting sales opportunities and cash flow. Monitoring activity and controlling the business All business need to know how they are performing throughout the year. If sales suddenly start to fall this trend needs to be quickly identified and remedial action taken. Business will also need to track how much they are spending on running the business. If these costs are steadily raising it is likely that profits will start to fall. Helping the management of the business Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis in making informed business decisions that would allow them to be better equipped in their management and control functions. Analysis and evaluation It is possible to evaluate the performance of the company, make comparison with competitors and keep a record of the firms progress over periods of time. Financial Documents * An invoice- a document sent with goods sold on trade credit, informing the purchaser that the payment is due on a certain date. * A cash receipt- a proof of purchase given when something is paid in cash. * A credit note- a document issued to a purchaser when they have overpaid ,allowing credit on future payments * Proof of delivery-proof the items have been delivered and received at a certain destination. Financial transaction * Sales goods or services to customers * Debtors-customers who owe the business money for goods or services received on credits * Purchases- goods or services bought with the sole idea of resale * Creditors-the people or businesses that the business has purchased goods from on credit * Purchase of fixed assets-items that help the business to become more efficient * Expenses- items that need to be bought in order for the business to function Book of Account In order to record all of the above financial transactions a business will break its accounts books into four sections: a. The sales ledgers contains the personal accounts of all the debtors (customers) who have received or services and have yet to play for them. b. The purchase ledger contains the personal accounts of all the creditors-people the business has bought goods from and whom they will pay at a later date. c. The general ledger keeps a record of the monetary value of sales, purchases, sales returns and purchase returns. It contains the accounts which record the amount of money that has been spent on the expenses of the business. The other main account that is held within the general ledger is the cash book. This is the account that records all the money that has come in and gone out of the business. d. The journal records extraordinary items such as the start-up capital of a business and the purchase of a fixed assists. These are then posted to the general ledger in their own accounts. It is also used to record the correction of errors made in the double entry accounting. People who involved in Accounting Accountants- Accountants are responsibilities for supplying and using financial information. They are employed by businesses specialising in accountancy, or by a large firms which have their own financial department. They use the transactions recorded by these groups to produce final account. Clerks- Billing and posting clerks and machine operators, commonly called billing clerks, compile records of charges for services rendered or goods sold, calculate and record the amounts of these services and goods, and prepare invoices to be mailed to customers. Billing clerks review purchase orders, sales tickets, hospital records, or charge slips to calculate the total amount due from a customer. They must take into account any applicable discounts, special rates, or credit terms. A billing clerk for a trucking company often needs to consult a rate book to determine shipping costs of machine parts, for example. A hospitals billing clerk may need to contact an insurance company to determine what items will be reimbursed and for how much. Auditing Another function of these specialists is Auditing. Businesses which produce their own final accounts must by law have them checked for authenticity by an independent firm of accountants. This audit is performed annually. Legal Requirements Public limited companies are regulation by Companies Act 1985 and 1989 concerning the preparation and publication of financial statements. Companies are required to submit a copy of their account s annually to companies House. Companies with a turnover greater then à ¯Ã‚ ¿Ã‚ ½60,000 are also required to have their accounts independently audited. Consequences of not keeping financial records There are also negative consequences to a business if financial information to be inaccurate. These include: * Criminal action * Cash flow problems from a high fax bill or criminal action * Shareholders losing confidence and investing elsewhere * Bad public image * Change to management structure Purposes and Considerations of Ratios and Ratio Analysis:- Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Ratio analysis is primarily used to compare a companys financial figures over a period of time, a method sometimes called trend analysis. Through trend analysis, can be identify trends, good and bad, and adjust the business practices accordingly. Can also see how ratios stack up against other businesses, both in and out of the business. Task-2 In task two my aim to explain the different between Capital expenditure and revenue expenditure; Capital income and revenue income Capital Expenditure are expenditures creating future benefits. Capital expenditure are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset. Included in such amounts is spending on: * acquiring fixed assets bringing them into business * legal costs of buying buildings * carriage inwards on machinery bought * Any other cost needed to make a fixed asset ready for use. There two types Asset. They are: 1. Fixed asset 2. Current asset Fixed asset: Fixed assets, as opposed to current asset are those assets with a remaining useful life of over a year. Following the accruals principal, these assets are shown on the balance sheet but their value is depreciated, and treated as an expense in the P ; L account for each year of their life. There are two types of fixed assets: * Tangible fixed assets * Intangible fixed assets Tangible fixed assets include physical assets such as land and buildings and equipment. Long term financial investments are also considered tangible. Current asset: Current assets are those assets that are expected to be used (sold or consumed) within a year, unlike fixed assets. Revenue expenditure -The day-to-day running costs of a business (staff wages, purchase of trading stock, rent of business premises, and so on) are referred to as revenue expenditure * Premises cost e.g. rent, heating, and land and lighting etc. * Administrative costs e.g. telephone charges, postage, stationery, printing * Staff cost e.g. salaries, wages, training, staff insurance, pensions * Selling and distribution costs e.g. carriage on sales, marketing * Finance costs e.g. bank charges, loan and mortgage interest * Purchase of stock e.g. cash and credit transaction Capital income Any income resulting from the sale of capital investment assets. * Sole trader a person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business. * Loans- A fixed sum of money borrowed from a bank for a clearly defined period of time. The loan may be repaid in one lump sum, or by instalments * Shares Shares is a term referred to the units of ownership interest provided to the stockholder or owner of a company. The term is often used in connection with the number of units issued to an owner of Common Stock or Preferred Stock. There is two types of shareholders: 1. Preference shares: Shares with a fixed dividend. The holders of preference shares are entitled to their dividend before ordinary shareholders and rank above ordinary shareholders should the company be wound up. Preference shares are share capital but not equity share capital. 2. Ordinary shares: Shares which are the risk capital of the business, also known as equity. The holders are part owners of the company and are entitled to share in any profits made. * Mortgages A contract between a borrower and a lender where the lender guarantees payments until the debt is repaid. * Partners A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested Liability: An amount owed; an obligation of a company or entity that settled in the future by transfer of assets, provision of services, or assignment of future economic benefit, it is the result of a past transaction. Liabilities are reported on a balance sheet and are usually divided into two categories: Current liabilities these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables etc. Long-term liabilities these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties. Formula: ASSEST=CAPITAL+LIABILTIES Fixed assets + current asset Example: Assets =à ¯Ã‚ ¿Ã‚ ½ 25000 Capital=? Liabilities= à ¯Ã‚ ¿Ã‚ ½38000 Capital = Assets liabilities = à ¯Ã‚ ¿Ã‚ ½ 25000-à ¯Ã‚ ¿Ã‚ ½38000 = à ¯Ã‚ ¿Ã‚ ½212000 Revenue Income Revenue income is the income of a business which is derived from the normal trading activities of that business. Income is mainly derived from sale of the businesss product or service but other incomer can be derived from rent receivable, interest on investments etc. * Rent received: means when you rent your property and received capital for lend your property. This is one of the revenue incomes. * Commission received: commission is another type of income for selling a product. For example sale assistant selling a car, will received a percentage of actual amount of which the car sold. * Sales (cash and credit transaction): with currency sales you will received a receipt, which is a legal documents and credit sale is when you give credit to consumer. Gross profit: Gross profit is a basic measure of the profitability of the business and it shows the return a business can make from making and selling its products. Gross Profit = Revenue Cost of Goods. Net profit: Net profit is gross profit minus other, overhead costs. These costs are indirect costs of production such as bills, transportation, wages, interest payments etc. Net profit =Gross Profit Expenses Task 6 In this task my aim to explain her component parts (section) of a trading and profit and loss account and balance sheet. * Purpose and use of trading profit and loss account and balance sheet 1) Purpose and use of trading account The trading account shows the gross profit (or loss) that the company has made. Profit is the money made by the business and equals income minus expenses. 2) Profit and loss account The profit and loss account is an extension of the trading account. The profit and loss account shows the net profit (or loss) made. The Trading account and profit and loss account are often combined as one trading and profit and loss account so that both the gross and net profit can be displayed in the same set of accounts. The purpose of the profit and loss account is to: a. Show whether a business has made a PROFIT or LOSS over a financial year. b. Describe how the profit or loss arose e.g. categorizing costs between cost of sales and operating costs. 3) Purpose and use of balance sheet The Balance Sheet is a statement showing the assets, liabilities and owners capital of a business at a particular moment in time, for example the year end. The purpose of a Balance Sheet is to report the financial position of a company at a certain point in time. Balance Sheet analysis also provides management with insights into income trends, debt standing and long-term financial consistency, all of which are crucial towards planning and execution of vital business policies. Balance sheet also functions as an indicator to the amount of debt that can be lent to the organization. * The cost of goods sold section of the trading account The price of buying or making an item held for resale after being adjusted by beginning and ending inventory balances Formula: Opening Stock + Purchases + Carriage Inwards Purchases Return Closing Stock = Cost Of Sales Example: Opening stock = à ¯Ã‚ ¿Ã‚ ½8,550 Purchases = à ¯Ã‚ ¿Ã‚ ½345,700 Carriage Inwards = à ¯Ã‚ ¿Ã‚ ½328,160 Purchases return = à ¯Ã‚ ¿Ã‚ ½3,420 Closing stock = à ¯Ã‚ ¿Ã‚ ½23,850 Cost of sales =? Opening Stock + Purchases + Carriage Inwards Purchases Return Closing Stock = Cost Of Sales = à ¯Ã‚ ¿Ã‚ ½8,550 + à ¯Ã‚ ¿Ã‚ ½345,700 + à ¯Ã‚ ¿Ã‚ ½328,160 à ¯Ã‚ ¿Ã‚ ½3,420 à ¯Ã‚ ¿Ã‚ ½23,850 = à ¯Ã‚ ¿Ã‚ ½328,160 * The calculation of Gross profit Gross profit is the amount of profit available after deducting from sales the direct (variable) costs of labour and materials, plus the applicable costs of the factory overheads applied to the production of goods and services. Formula: Net Turnover Cost of Sales = Gross Profit + Commission Received + Discount Received + Rent Received * An explanation of the kinds of income such as: Discount received; rent received; commission received that should be added to gross profit Discount Received means this discount is received from your creditors or suppliers at the time of the settlement of their account Commission Received is another type of revenue income, a payment made to an intermediary, often calculated as a percentage of the value of goods or services provided. Commission is most often paid to sales staff, brokers, or agents. Rent Received means a person renting his/her property gets money from the person(s) renting the property, this could also be called revenue income. These three incomes reduce the cost of sales so, thats why they are added to Gross Profit. * The Overheads/ Expenses section in the profit and loss account Expenses mean an outgoing payment made by a business or individual. Here is a list of examples of expenses in a business: wages/ salaries, insurance, rent and rates, electricity and heating, carriage outwards, water, depreciations, telephone bills, administration cost, petrol, bad debts, discount allowed, sundry expenses, general repairs, advertising and interest on loans. * The calculation of net profit The Net Profit- This is calculated in the Profit and Loss Account and is what remains after all other costs used up in the period have been deducted from the Gross Profit. Net profit =Gross Profit Expenses Trail Balance sheet Cafà ¯Ã‚ ¿Ã‚ ½ Bleau DR CR Purchase à ¯Ã‚ ¿Ã‚ ½30,000 Sales à ¯Ã‚ ¿Ã‚ ½74,640 Salaries à ¯Ã‚ ¿Ã‚ ½25,000 Capital à ¯Ã‚ ¿Ã‚ ½55,000 Electricity and Gas à ¯Ã‚ ¿Ã‚ ½2,000 Bank Loan à ¯Ã‚ ¿Ã‚ ½5,000 Opening Stock à ¯Ã‚ ¿Ã‚ ½3,500 Creditors à ¯Ã‚ ¿Ã‚ ½3,360 Premises à ¯Ã‚ ¿Ã‚ ½42,000 Equipments à ¯Ã‚ ¿Ã‚ ½10,000 Vehicles à ¯Ã‚ ¿Ã‚ ½4,500 Debtors à ¯Ã‚ ¿Ã‚ ½2,400 Drawing à ¯Ã‚ ¿Ã‚ ½12,000 Cash/Bank à ¯Ã‚ ¿Ã‚ ½4,700 Rent or Rates à ¯Ã‚ ¿Ã‚ ½1,900 Total à ¯Ã‚ ¿Ã‚ ½138,000 Total à ¯Ã‚ ¿Ã‚ ½138,000 DR = CR Trail Balance sheet Jane Water DR CR Purchasing à ¯Ã‚ ¿Ã‚ ½322,000 Sales à ¯Ã‚ ¿Ã‚ ½375,000 Opening stock à ¯Ã‚ ¿Ã‚ ½90,000 Capital à ¯Ã‚ ¿Ã‚ ½178,000 Wages and Salaries à ¯Ã‚ ¿Ã‚ ½30,000 Creditors à ¯Ã‚ ¿Ã‚ ½7,000 Rates à ¯Ã‚ ¿Ã‚ ½6,000 Telephone à ¯Ã‚ ¿Ã‚ ½1,200 Drawings à ¯Ã‚ ¿Ã‚ ½18,000 Bank à ¯Ã‚ ¿Ã‚ ½3,000 Van à ¯Ã‚ ¿Ã‚ ½30,000 Shop fittings à ¯Ã‚ ¿Ã‚ ½50,000 Debtors à ¯Ã‚ ¿Ã‚ ½9,800 Total à ¯Ã‚ ¿Ã‚ ½560,000 Total à ¯Ã‚ ¿Ã‚ ½560,000 DR = CR Cafà ¯Ã‚ ¿Ã‚ ½ Blue Trading Profit and Loss Account year entering 31st Dec 2006 Cafà ¯Ã‚ ¿Ã‚ ½ Blue à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½74,640 Less Cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½3,500 Purchases à ¯Ã‚ ¿Ã‚ ½30,000 Cost of sales à ¯Ã‚ ¿Ã‚ ½33,500 Gross Profit à ¯Ã‚ ¿Ã‚ ½41,140 Less Indirect Cost Rent or rates à ¯Ã‚ ¿Ã‚ ½1,900 Salaries à ¯Ã‚ ¿Ã‚ ½25,000 Electricity gas à ¯Ã‚ ¿Ã‚ ½2,000 à ¯Ã‚ ¿Ã‚ ½28,900 Net profits à ¯Ã‚ ¿Ã‚ ½12240 Looking at trading Profit and Loss of Cafà ¯Ã‚ ¿Ã‚ ½ Bleu, the Cafà ¯Ã‚ ¿Ã‚ ½ made Net profit which is à ¯Ã‚ ¿Ã‚ ½12240.As far as my opinion I think it is a successful business because this business made positive result so far. They could make more profit however; they may consider Salaries which is bit high. Also they may consider keeping their sales more competitive to their purchase. Jane Water Trading Profit and Loss Account year entering 31st Dec 2006 Jane Winter à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales à ¯Ã‚ ¿Ã‚ ½375,000 Less cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½90,000 Purchases à ¯Ã‚ ¿Ã‚ ½322,000 Cost of sales à ¯Ã‚ ¿Ã‚ ½412,000 Net Loss -à ¯Ã‚ ¿Ã‚ ½37,000 Less Indirect Cost Rate à ¯Ã‚ ¿Ã‚ ½6,000 Telephone à ¯Ã‚ ¿Ã‚ ½1,200 Wages and Salaries à ¯Ã‚ ¿Ã‚ ½30,000 à ¯Ã‚ ¿Ã‚ ½-37,200 Net Loss -à ¯Ã‚ ¿Ã‚ ½74,200 Looking at trading Profit and Loss of Jin Winter, I think it is a not a successful business because of negative result which is net Loss à ¯Ã‚ ¿Ã‚ ½-74200 so far. In my opinion if the business results continue end up with the negative result, business may shut down within days or months. Z man production Ltd Trading, Profit and Loss account for year ending 31st December 2006 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½810,000 Sales return à ¯Ã‚ ¿Ã‚ ½18,900 Net turn over à ¯Ã‚ ¿Ã‚ ½791,100 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½21,800 Purchase à ¯Ã‚ ¿Ã‚ ½553,550 Carriage in à ¯Ã‚ ¿Ã‚ ½5,400 Purchase Return (-) 914650 Closing Return (-) 17560 Cost of sale à ¯Ã‚ ¿Ã‚ ½548,540 Gross profit à ¯Ã‚ ¿Ã‚ ½246,060 Commission received à ¯Ã‚ ¿Ã‚ ½3,500 Discount received à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½249,560 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½75,900 Rent à ¯Ã‚ ¿Ã‚ ½7,540 Sundry expenses à ¯Ã‚ ¿Ã‚ ½6,545 Electricity/gas à ¯Ã‚ ¿Ã‚ ½4,700 Vehicles à ¯Ã‚ ¿Ã‚ ½6,540 Petrol à ¯Ã‚ ¿Ã‚ ½22,455 Advertising à ¯Ã‚ ¿Ã‚ ½7,590 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,410 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Equipments à ¯Ã‚ ¿Ã‚ ½5,400 Carriage out à ¯Ã‚ ¿Ã‚ ½7,580 General repair à ¯Ã‚ ¿Ã‚ ½5,400 Bad Debt à ¯Ã‚ ¿Ã‚ ½5,500 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 à ¯Ã‚ ¿Ã‚ ½179,360 Net Profit à ¯Ã‚ ¿Ã‚ ½70,200 Analysis of Trading, profit and loss Account of Z man Production Looking at trading, Profit and Loss of z man Production Ltd Company, its a successful company. However the company could make more profit by considering the following: Sales They could sell more by reducing their product cost or raise their product cost in certain amount. The company should beware that it may effect on customer, if they rise too much. Purchase They could consider purchasing fewer products or goods because in view of their amount of sales, purchase is higher. Petrol The Company spend far more money on petrol; however they should aim to spend less amount of money on their petrol cost to raise their profit. Wages Wages is one of the things which company could consider about it. Wages are bit higher then it should be. For example instead of à ¯Ã‚ ¿Ã‚ ½75900, if wages were à ¯Ã‚ ¿Ã‚ ½ 50000, then they could save à ¯Ã‚ ¿Ã‚ ½25000. Timberlake Wholesalers Ltd Trading, Profit and Loss account of Timberlake Wholesalers Ltd, year ending 31st Dec 2004 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sale à ¯Ã‚ ¿Ã‚ ½250,000 Sales return à ¯Ã‚ ¿Ã‚ ½5,400 Net turn over à ¯Ã‚ ¿Ã‚ ½244,600 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½12,350 Purchase à ¯Ã‚ ¿Ã‚ ½156,000 Purchase Return (-) 7200 Closing Return (-) 16300 Cost of sale à ¯Ã‚ ¿Ã‚ ½144,850 Gross profit à ¯Ã‚ ¿Ã‚ ½99,750 Discount received à ¯Ã‚ ¿Ã‚ ½2,500 à ¯Ã‚ ¿Ã‚ ½102,250 Less expenses Salaries à ¯Ã‚ ¿Ã‚ ½46,000 Rent and Rates à ¯Ã‚ ¿Ã‚ ½2,000 Electricity/gas à ¯Ã‚ ¿Ã‚ ½3,000 Sundry expenses à ¯Ã‚ ¿Ã‚ ½4,700 Discount allowed à ¯Ã‚ ¿Ã‚ ½3,700 à ¯Ã‚ ¿Ã‚ ½59,400 Net Profit à ¯Ã‚ ¿Ã‚ ½42,850 Looking at Trading, Profit and Loss of Timberlake Wholesalers Ltd Company, its a successful company. The company made profit à ¯Ã‚ ¿Ã‚ ½42,850, which is good proves that its a fairly successful company; however if the company have five or six shareholders means every shareholder would get less profit between them, but if the company have one share holder that would be alright. They could make more profit by considering selling more product or goods and increase their products prices. By making product or goods prices high would collapse in their business, so they should beware of it. They also may beware of the competitors when they are making price high for their products or goods. For my opinion they should consider make price high because their amount of their purchases. Again looking at the companys less expenses the salaries are too high comparing to their net profit. They may consider employing less employee or less salaries to increase profit and they can cut down their electricity/gas bills apparently its bit high. The amount of rant and rates are ok because they are not elevated. Task 7 In this task my aim to explain my friends each of the element of a balance sheet: * Fixed assets * Intangible assets * Current assets * Current liabilities * Working capital * Long term liabilities * Net assets * Capital employed * A description of how to tell if the accounts balance. * Fixed assets are those that will be used within the business and have a life expectancy of more than one year. * Intangible assets is an asset that lacks physical substance and usually has a high degree of uncertainty concerning their future benefits, and they are unable to be touched (they are not physical objects). Patens, copyrights franchises, and goodwill are all examples of intangible assets. * Current assets can be turned quickly into cash and are considered to be the life blood of a business. * Current liabilities is the debts of the business which must be repaid within one year. These usually consist of creditors- suppliers that have sold goods or services to the business on credit. * Working capital is calculated by taking current liabilities away from current assets. It represents the amount of money that a business has available to spend after meeting all its immediate debts. A negative figure here could indicate that the business may be facing liquidly problems. * Long term liabilities consist of the business debts which will be paid over a period of longer than one year. They will include bank loans which have been taken out over a number of years. * Net assets are the total value of the assets less current liabilities. * Capital employed is the value of money that has been left in the business after net profit has been added and drawing deducted. The Capital employed of one the year becomes the opening capital of the next year. * A description of how to tell if the accounts balance If net assets are equal to capital employed in the end of balance sheet, then the account is balance. If not then the balance sheet would probably wrong or trading, profit and loss account which done previously, would been calculated mistakenly. à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Fixed Assets Premises 100,000 Equipment 30000 Vehicles 21500 151,500 Current Assets Cash 125 Debtors 23850 Stock 16300 40275 Less current Liabilities Bank overdraft 851 Creditors 12041 VAT 3475 16367 Net current assets 23908 Total asset less current Liabilities 175408 Creditor: Amount falling due to after One Year Long term Loan 33000 Net Assets 142408 Financed by: Capital 110000 Net Profit 42850 152850 Less Drawing 10442 Capital Employed 142408 The balance sheet of Timberlake Wholesalers For Year Ended 31st Dec 04 Balance sheet of Z man Production LTD, year ended 31st march 2003 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Premises à ¯Ã‚ ¿Ã‚ ½100,000 à ¯Ã‚ ¿Ã‚ ½100,000 Equipment à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½2,500 à ¯Ã‚ ¿Ã‚ ½22,500 Machinery à ¯Ã‚ ¿Ã‚ ½30,000 à ¯Ã‚ ¿Ã‚ ½6,000 à ¯Ã‚ ¿Ã‚ ½24,000 Vehicles à ¯Ã‚ ¿Ã‚ ½15,000 à ¯Ã‚ ¿Ã‚ ½1,500 à ¯Ã‚ ¿Ã‚ ½13,500 Fixture/Fittings à ¯Ã‚ ¿Ã‚ ½10,000 à ¯Ã‚ ¿Ã‚ ½1,000 à ¯Ã‚ ¿Ã‚ ½9,000 à ¯Ã‚ ¿Ã‚ ½169,000 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½2,000 Debtors à ¯Ã‚ ¿Ã‚ ½10,000 Cash in hand à ¯Ã‚ ¿Ã‚ ½250 Bank Balance à ¯Ã‚ ¿Ã‚ ½2,000 Petty Cash à ¯Ã‚ ¿Ã‚ ½100 à ¯Ã‚ ¿Ã‚ ½14,350 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½5,000 Overdraft à ¯Ã‚ ¿Ã‚ ½3,000 V.A.T à ¯Ã‚ ¿Ã‚ ½1,500 -à ¯Ã‚ ¿Ã‚ ½9,500 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½4,850 Less Long-time liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½25,000 Mortgage à ¯Ã‚ ¿Ã‚ ½10,000 -à ¯Ã‚ ¿Ã‚ ½35,000 Net Assets à ¯Ã‚ ¿Ã‚ ½138,850 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½144,350 Net Profit à ¯Ã‚ ¿Ã‚ ½12,000 Drawings -à ¯Ã‚ ¿Ã‚ ½18,000 Closing Capital à ¯Ã‚ ¿Ã‚ ½138,850 Balance sheet of A-Z Engineering Supplies, year ended 31st march 2003 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Premises à ¯Ã‚ ¿Ã‚ ½50,000 Motor Vehicles à ¯Ã‚ ¿Ã‚ ½14,560 à ¯Ã‚ ¿Ã‚ ½64,560 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½14,905 Debtors à ¯Ã‚ ¿Ã‚ ½6,500 petty cash à ¯Ã‚ ¿Ã‚ ½56 à ¯Ã‚ ¿Ã‚ ½21,461 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½4,590 Overdraft à ¯Ã‚ ¿Ã‚ ½3,400 à ¯Ã‚ ¿Ã‚ ½7,990 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½13,471 Less Long-time liabilities: Mortgage à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½25,000 Net Assets à ¯Ã‚ ¿Ã‚ ½53,031 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½42,571 Net Profit à ¯Ã‚ ¿Ã‚ ½23,460 Drawings à ¯Ã‚ ¿Ã‚ ½13,000 Closing Capital à ¯Ã‚ ¿Ã‚ ½53,031 J.Mitchell Ltd Trading, Profit and Loss account for year ending 31st dec 2006 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales return à ¯Ã‚ ¿Ã‚ ½810,000 Sales return à ¯Ã‚ ¿Ã‚ ½18,900 Net turn over à ¯Ã‚ ¿Ã‚ ½791,100 Less cost of sales Opening stock à ¯Ã‚ ¿Ã‚ ½21,800 Purchase à ¯Ã‚ ¿Ã‚ ½553,550 Carriage in à ¯Ã‚ ¿Ã‚ ½5,400 Purchase Return (-) 914650 Closing stock (-) 17560 Cost of sale à ¯Ã‚ ¿Ã‚ ½548,540 Gross profit à ¯Ã‚ ¿Ã‚ ½246,060 Commission Received à ¯Ã‚ ¿Ã‚ ½3,500 Discount Received à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½253,060 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½75,900 Rent à ¯Ã‚ ¿Ã‚ ½7,540 Sundry expenses à ¯Ã‚ ¿Ã‚ ½6,545 Electricity/gas à ¯Ã‚ ¿Ã‚ ½4,700 Vehicles à ¯Ã‚ ¿Ã‚ ½6,540 Petrol à ¯Ã‚ ¿Ã‚ ½22,455 Advertising à ¯Ã‚ ¿Ã‚ ½7,590 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,410 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Equipments à ¯Ã‚ ¿Ã‚ ½5,400 Carriage out à ¯Ã‚ ¿Ã‚ ½7,580 General repair à ¯Ã‚ ¿Ã‚ ½5,400 Bad Debt à ¯Ã‚ ¿Ã‚ ½5,500 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 à ¯Ã‚ ¿Ã‚ ½179,360 Net Profit à ¯Ã‚ ¿Ã‚ ½73,700 J.Mitchell Ltd Trading, Profit and Loss account for year ending 31st dec 2007 à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½Ãƒ ¯Ã‚ ¿Ã‚ ½ Sales return à ¯Ã‚ ¿Ã‚ ½935,460 Sales return à ¯Ã‚ ¿Ã‚ ½15,490 Net turn over à ¯Ã‚ ¿Ã‚ ½919,970 Less cost of sale Opening stock à ¯Ã‚ ¿Ã‚ ½17,560 Purchase à ¯Ã‚ ¿Ã‚ ½584,650 Carriage in à ¯Ã‚ ¿Ã‚ ½3,285 Purchase Return à ¯Ã‚ ¿Ã‚ ½15,470 Closing stock à ¯Ã‚ ¿Ã‚ ½14,365 Cost of sale à ¯Ã‚ ¿Ã‚ ½575,660 Gross profit à ¯Ã‚ ¿Ã‚ ½344,310 Discount Received à ¯Ã‚ ¿Ã‚ ½1,360 rent Received à ¯Ã‚ ¿Ã‚ ½3,255 à ¯Ã‚ ¿Ã‚ ½348,925 Less expenses Wages à ¯Ã‚ ¿Ã‚ ½95,655 Rent à ¯Ã‚ ¿Ã‚ ½7,655 General repairs à ¯Ã‚ ¿Ã‚ ½6,595 Carriage out à ¯Ã‚ ¿Ã‚ ½6,420 Sundry expenses à ¯Ã‚ ¿Ã‚ ½4,350 Electricity/gas à ¯Ã‚ ¿Ã‚ ½5,125 Advertising à ¯Ã‚ ¿Ã‚ ½8,100 Petrol à ¯Ã‚ ¿Ã‚ ½25,460 Discount allowed à ¯Ã‚ ¿Ã‚ ½5,150 Insurance à ¯Ã‚ ¿Ã‚ ½7,900 Telephone à ¯Ã‚ ¿Ã‚ ½1,435 Stationary à ¯Ã‚ ¿Ã‚ ½896 Bad Debt à ¯Ã‚ ¿Ã‚ ½8,555 Interest on Loan à ¯Ã‚ ¿Ã‚ ½5,500 Vehicles à ¯Ã‚ ¿Ã‚ ½3,000 Equipment à ¯Ã‚ ¿Ã‚ ½5,400 à ¯Ã‚ ¿Ã‚ ½197,196 Net Profit à ¯Ã‚ ¿Ã‚ ½151,729 Balance sheet of J- Mitchell, year ended 31st march 2006 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Fixtures and Fittings à ¯Ã‚ ¿Ã‚ ½25,000 à ¯Ã‚ ¿Ã‚ ½1,500 à ¯Ã‚ ¿Ã‚ ½23,500 Vehicles à ¯Ã‚ ¿Ã‚ ½65,400 à ¯Ã‚ ¿Ã‚ ½6,540 à ¯Ã‚ ¿Ã‚ ½58,860 Equipment à ¯Ã‚ ¿Ã‚ ½54,000 à ¯Ã‚ ¿Ã‚ ½5,400 à ¯Ã‚ ¿Ã‚ ½48,600 à ¯Ã‚ ¿Ã‚ ½130,960 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½17,560 Debtors à ¯Ã‚ ¿Ã‚ ½22,650 Cash-in -Hand à ¯Ã‚ ¿Ã‚ ½500 Bank à ¯Ã‚ ¿Ã‚ ½3,000 à ¯Ã‚ ¿Ã‚ ½43,710 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½30,000 VAT à ¯Ã‚ ¿Ã‚ ½3,000 Bank overdraft à ¯Ã‚ ¿Ã‚ ½3,000 à ¯Ã‚ ¿Ã‚ ½36,000 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½7,710 Less Long term liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½25,000 Net Assets à ¯Ã‚ ¿Ã‚ ½113,670 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½39,970 Net Profit à ¯Ã‚ ¿Ã‚ ½73,700 Closing Capital à ¯Ã‚ ¿Ã‚ ½113,670 Balance sheet of J- Mitchell, year ended 31st march 2007 At cost Depn 2 Date NBV à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ à ¯Ã‚ ¿Ã‚ ½ Fixed Assets: Fixtures and Fittings à ¯Ã‚ ¿Ã‚ ½50,000 à ¯Ã‚ ¿Ã‚ ½3,500 à ¯Ã‚ ¿Ã‚ ½46,500 Vehicles à ¯Ã‚ ¿Ã‚ ½60,000 à ¯Ã‚ ¿Ã‚ ½13,080 à ¯Ã‚ ¿Ã‚ ½46,920 Equipment à ¯Ã‚ ¿Ã‚ ½54,914 à ¯Ã‚ ¿Ã‚ ½10,800 à ¯Ã‚ ¿Ã‚ ½44,114 Machinery à ¯Ã‚ ¿Ã‚ ½60,000 à ¯Ã‚ ¿Ã‚ ½10,000 à ¯Ã‚ ¿Ã‚ ½50,000 à ¯Ã‚ ¿Ã‚ ½187,534 Current Assets: Closing Stock à ¯Ã‚ ¿Ã‚ ½14,365 Debtors à ¯Ã‚ ¿Ã‚ ½50,000 Cash-in -Hand à ¯Ã‚ ¿Ã‚ ½32,759 Bank à ¯Ã‚ ¿Ã‚ ½41,741 à ¯Ã‚ ¿Ã‚ ½138,865 Current Liabilities: Creditors à ¯Ã‚ ¿Ã‚ ½33,000 VAT à ¯Ã‚ ¿Ã‚ ½4,000 Bank overdraft à ¯Ã‚ ¿Ã‚ ½4,000 à ¯Ã‚ ¿Ã‚ ½41,000 Net Current Assets: à ¯Ã‚ ¿Ã‚ ½97,865 Less Long term liabilities: Bank Loan à ¯Ã‚ ¿Ã‚ ½20,000 Net Assets à ¯Ã‚ ¿Ã‚ ½265,399 Financed by: Opening Capital à ¯Ã‚ ¿Ã‚ ½113,670 Net Profit à ¯Ã‚ ¿Ã‚ ½151,729 Closing Capital à ¯Ã‚ ¿Ã‚ ½265,399 Task-8 For this task I will need to have access to some past and present final accounts. As part of my report to my friend, I will need to perform ratio analysis to measure the: Profitability ratio Liquidity ratio and Efficiency of her business in order to help her understand her financial situation. J. Mitchell Ltd 2006 Profitable ratio Gross profit margin 246060 x 100 791100 x 1 24606000 791100 31.1 Profit margin 73700 x 100 791100 x 1 7370000 791100 9.3 Return on Capital Employed 73700 x 100 113670 x 1 7370000 113670 64.8 Liquidity ratio Current Assets 43,710 Current Liabilities 36,000 1.2 : 1 Current Assets Stock 43710 -17560 Current Liabilities 36000 61270 36000 1.7:1 Asset Utilisation Debtors x 365 1) Credit sales 22650 X 365 791100 8267250 791100 10 DAYS 2) Creditors x 365 Credit purchases 30000 X 365 553550 10950000 553550 20 DAYS 3) Average stock = Opening Stock + Closing Stock 2 Average stock = 21800 + 17560 2 19680 Average Stock x 365 Cost of sales 19680 x 365 548540 13 DAYS J. Mitchell Ltd 2007 Profitable ratio Gross profit margin 344310 x 100 919970 x 1 34431000 919970 37.4 Profit margin 151729 x 100 919970 x 1 15172900 919970 16.5 Return on Capital Employed 151729 x 100 265399 x 1 151729 265399 0.6 Liquidity ratio Current Assets à ¯Ã‚ ¿Ã‚ ½138,865 Current Liabilities à ¯Ã‚ ¿Ã‚ ½41,000 3.4 :1 Current Assets Stock 138865 -14365 Current Liabilities 41000 153230 36000 4.3:1 Asset Utilisation Debtors x 365 1) Credit sales 50000 X 365 919970 18250000 919970 20 DAYS 2) Creditors x 365 Credit purchases 33000 X 365 584650 12045000 584650 20 DAYS 3) Average stock = Opening Stock + Closing Stock 2 Average stock = 17560 + 14365 2 15963 Average Stock x 365 Cost of sales 15963 x 365 575660 10 DAYS Task-9 In this task I will be using suitable ratios from the previous task analysis the performance of the business which is J -Mitchell. A ratio: Is the mathematical relationship between two quantities in the form of a fraction or percentage. There also relationships that can be measured in time periods and one 2 one situations. Ratio analysis: is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. The analysis is used to provide indicators of past performance in terms of critical success factors of a business. This assistance in decision-making reduces reliance on guesswork and intuition and establishes a basis for sound judgement. Purposes and Considerations of Ratios and Ratio Analysis:- Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability, liquidity, financial structure, reordering, leverage, and interest coverage. Although ratios report mostly on past performances, they can be predictive too, and provide lead indications of potential problem areas. Ratio analysis is primarily used to compare a companys financial figures over a period of time, a method sometimes called trend analysis. Through trend analysis, can be identify trends, good and bad, and adjust the business practices accordingly. Can also see how ratios stack up against other businesses, both in and out of the business. Significance of Using Ratios the significance of a ratio can only truly be appreciated when: 1. It is compared with other ratios in the same set of financial statements. 2. It is compared with the same ratio in previous financial statements (trend analysis). 3. It is compared with a standard of performance (industry average). Such a standard may be either the ratio which represents the typical performance of the trade or industry, or the ratio which represents the target set by management as desirable for the business. Profitability Ratios Closely linked with income ratios are profitability ratios, which shed light upon the overall effectiveness of management regarding the returns generated on sales and investment. Gross Profit Margin-The gross profit margin ratio tells us the profit a business makes on its cost of sales, or cost of goods sold. It is a very simple idea and it tells us how much gross profit per à ¯Ã‚ ¿Ã‚ ½1 of turnover our business is earning. Net Profit Margin- The profit margin tells you how much profit a company makes for every à ¯Ã‚ ¿Ã‚ ½1 it generates in revenue. Return on Capital Employed- ratio also indicates whether the company is earning sufficient revenues and profits in order to make the best use of its capital assets. It is expressed in the form of a percentage, and the higher the percentage, the better Liquidity Ratios While liquidity ratios are most helpful for short-term creditors/suppliers and bankers, they are also important to financial managers who must meet obligations to suppliers of credit and various government agencies. A complete liquidity ratio analysis can help uncover weaknesses in the financial position of your business. Working Capital Ratio-This ratio indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Assets utilisation- Assets utilisation is measured how effectively you manage and control the current aspects of your business. Stock turnover ratio the stock turnover ratio shows how many times over the business has sold the value of its stocks during the year. The result of this ratio gives the number of days that on average money is tied up in stocks. The longer this is, obviously the worse this is for the business as the money is not available to be used elsewhere. Debtors collection periods ratio- The debtors collection shows how days on average debtors take for pay for good sold to them by the business. The average collection period measures the quality of debtors since it indicates the speed of their collection. * The shorter the average collection period, the better the quality of debtors, as a short collection period implies the prompt payment by debtors. * The average collection period should be compared against the firms credit terms and policy to judge its credit and collection efficiency. * An excessively long collection period implies a very liberal and inefficient credit and collection performance. * The delay in collection of cash impairs the firms liquidity. On the other hand, too low a collection period is not necessarily favourable, rather it may indicate a very restrictive credit and collection policy which may curtail sales and hence adversely affect profit. Creditors payment periods ratio- is collection is opposite to the debtors collection. This ration shows the speed the take to pay the creditors. J-Mitchell Ltd Company Ratio Analysis year 2006 and 2007 Profitability Ratios Gross Profit Margin After looking at J-Mitchell LTD company, I can assure that the company did well good because In year 2006 the gross profit margin was 31.1% and in year 2007 the gross profit margin is 37.4%.Comparing to year 2006 and 2007, its look like company doing well because gross profit were raised in 2007 by more then 5%.Meanwhile y in year 2006 the net turnover was à ¯Ã‚ ¿Ã‚ ½791100 and in year 2007 the net turnover is à ¯Ã‚ ¿Ã‚ ½919970, which is healthy position for company. Profit Margin- looking back at j- Mitchell Ltd 2006, I can say that the company havent done well in year 2006 which is 9.3% and as well as 2007 which is 16.5% comparing to gross profit margin. Although In 2007 J- Mitchell Ltd company did well then they did in year 2006.However it could be raise more by looking back to trading, profit and loss account in year 2007.there are certain things that could be improved for example Bad Debt. To save from bad debt the company should check the reference, past bank statement before they lend money to other peoples, so it can be checked whether they can repay the money on time. Also In year 2007 J-Mitchell company had too high expenses for example petrol in year 2006 J-Mitchell they spent à ¯Ã‚ ¿Ã‚ ½22455 and in year 2007 they spent à ¯Ã‚ ¿Ã‚ ½25460.If J- Mitchell Ltd company wants improve their gross profit they may have to consider reduce their petrol expenses as well as other expenses for example-wages, bad debt etc. Overall I think in year 2007 J-Mitchell Ltd Company did well compare to year 2006 and in the future the company could be successful if they keep their expenses low for example wages, petrol, insurance etc. Return on capital employed- In 2006 J-Mitchell Ltd company were very good position which was 64.8% unlikely in year 2007 their revenue 0.6% which is not healthy for company or shareholders. This is an unusual because they havent kept good record of their transaction. I think the figure I have received are not accurate and also Ive received only two years account information. So I am not sure whether the business would do good or bad unless I have received more past accounting information. Liquidity ratio Working Capital Ratio in year 2007, the working capital ratio looks reasonable healthy; current assets are nearly three times as much as current liabilities (3.4:1), so the firm should not have too much difficulty meeting debts that need to be paid in the short times .Whereas in year 2006, the working capital ratio also looked reasonable because the current assets was nearly twice times as much as current liabilities (1.5:1).In 2007, the business has too much current assets, which is too good for company . Liquid capital ratio- the liquid capital ratio also shows a good picture. Even with stocks taken out of the current assets the firm still have sufficient liquid assets to cover its bills, so it seems to be in a liquid position. In year 2006 the liquid capital ratio was (1.7:1) and year 2007 the liquid capital ratio is (4.3:1) which healthy for company. Assets utilisation Stock turnover ratio -Looking at J-Mitchell Ltd Company 2006, every 13 days to sell stock seems not long time but this is a manufacturing company and short turnover periods are not rare. Comparing to year 2007, year 2007 was good because in year 2007 every 10 days to sell stock which is quite short time. That means if the company carry on like this they may end up with more profits. Debtors collection periods ratio Debtors collection periods of J-Mitchell LTD company is good enough however; Debtors are not taking long times to pay their bills in year 2007 then year 2006.In year 2006 debtors took 13 days to pay their bills but in year 2007 debtors took 20 days to pay their bills. Usually debtors gets 30 days to pay back but in this company debtors havent took the much long time to pay their bills. Creditors collection ratio in year 2006 and year 2007, an average of 20 days to pay bills suggests that the company has either negotiated good credit terms with suppliers or is struggling to pay bills.

Biography of Juan Ponce de León, Conquistador

Biography of Juan Ponce de Leà ³n, Conquistador Juan Ponce de Leà ³n (1460 or 1474–1521) was a Spanish conquistador and explorer who was most active in the Caribbean in the early part of the 16th century. His name is usually associated with the exploration of Puerto Rico and Florida, where, according to popular legend, he searched for the legendary Fountain of Youth. He was wounded in an Indian attack in Florida in 1521 and died in Cuba shortly thereafter. Fast Facts: Juan Ponce de Leà ³n Known For: Exploring the Caribbean and discovering FloridaBorn: 1460 or 1474 in Santervs de Campos, SpainDied: July 1521 in Havana, CubaSpouse: LenoraChildren: Juana, Isabel, Maria, Luis (some sources say three children) Early Life and Arrival in America Ponce de Leà ³n was born in the Spanish village of Santervs de Campos in the current-day province of Valladolid. Historical sources generally agree that he had several blood ties to an influential aristocracy, but his parents are unknown. His date of arrival in the New World isnt certain: Many historical sources place him on Columbus second voyage (1493), while others claim that he first arrived with Spaniard Nicols de Ovandos fleet in 1502. He could have been on both and gone back to Spain in between. In any event, he arrived in the Americas no later than 1502. Farmer and Landowner Ponce de Leà ³n was on the Island of Hispaniola in 1504 when native Indians attacked a Spanish settlement. Ovando, by then  the governor of Hispaniola, sent a force in reprisal that included Ponce de Leà ³n as an officer. The natives were brutally crushed. He must have impressed Ovando because he was awarded a choice piece of land that came with a number of natives to work it, as was the custom at the time. Ponce de Leà ³n made the most of this plantation, turning it into productive farmland and raising vegetables and animals including pigs, cattle, and horses. Food was in short supply for all the expeditions and exploration taking place, so he prospered. He married a woman named Leonor, an innkeeper’s daughter, and founded a town called Salvaleà ³n de Higà ¼ey, now in the Dominican Republic, near his plantation. His house still stands and is open for tours. Puerto Rico At that time, nearby Puerto Rico was called San Juan Bautista. Ponce de Leà ³n made a clandestine visit to the nearby island sometime in 1506, probably following rumors of gold. While there, he built a few cane structures at a site that would later become the town of Caparra and, even later, an archaeological site. In mid-1508, Ponce de Leà ³n asked for and received royal permission to explore and colonize San Juan Bautista. He set out in August, making his first official voyage to the island in one ship with about 50 men. He returned to the site of Caparra and began setting up a settlement. Disputes and Difficulties Ponce de Leà ³n was appointed governor of San Juan Bautista the next year, but he quickly ran into trouble with his settlement following the arrival of Diego Columbus. Christopher Columbus son was made governor of San Juan Bautista, Hispaniola, and the other lands his father had found in the New World. Diego Columbus wasnt happy that Ponce de Leà ³n had been given royal permission to explore and settle San Juan Bautista. Ponce de Leà ³ns governorship was later validated by King Ferdinand of Spain, but in 1511, a Spanish court found in favor of Columbus. Ponce de Leà ³n had many friends, and Columbus couldnt get rid of him completely, but it was apparent that Columbus was going to win the legal battle for San Juan Bautista. Ponce de Leà ³n began looking for other places to settle. Florida He asked for and was granted royal permission to explore for lands to the northwest. Anything he found would be his, as Christopher Columbus had never gone there. He was looking for Bimini, a land vaguely described by the Taà ­no natives as a wealthy land to the northwest. On March 3, 1513, Ponce de Leà ³n set out from San Juan Bautista with three ships and about 65 men. They sailed northwest and on April 2 discovered what they took for a large island. Because it was the Easter season (known as Pascua Florida, roughly Easter flowers, in Spanish) and because of the flowers on the land, Ponce de Leà ³n named it Florida. The location of their first landfall is unknown. The expedition explored much of the coast of Florida and several of the islands between Florida and Puerto Rico, such as the Florida Keys, Turks and Caicos, and the Bahamas. They also discovered the Gulf Stream. The small fleet returned to San Juan Bautista on Oct. 19. King Ferdinand Ponce de Leà ³n found that his position in San Juan Bautista had weakened in his absence. Marauding Carib Indians had attacked Caparra and Ponce de Leà ³n’s family had narrowly escaped with their lives. Diego Columbus used this as an excuse to enslave any natives, a policy that Ponce de Leà ³n didnt support. He decided to go to Spain. He met with King Ferdinand in 1514. He was knighted, given a coat of arms, and received confirmation of his rights to Florida. He had barely returned to San Juan Bautista when word reached him of Ferdinand’s death. Ponce de Leà ³n returned once again to Spain to meet with the regent, Cardinal Cisneros, who assured him his rights to Florida were intact. Second Trip to Florida In January 1521, Ponce de Leà ³n started preparations to return to Florida. He went to Hispaniola to find supplies and financing and sailed on Feb. 20. Records of the second trip are poor, but evidence suggests it was a fiasco. He and his men sailed to the western coast of Florida to found their settlement. The exact location is unknown. Soon after they arrived, a ferocious Indian attack drove them back to the sea. Many of Ponce de Leà ³ns soldiers were killed, and he was seriously wounded in his thigh by an arrow that possibly was poisoned. Death The trip to Florida was abandoned. Some of the men went to Veracruz, Mexico, to join conquistador Hernn Cortes. Ponce de Leà ³n went to Cuba in the hopes that he would recover there, but it was not to be. He died of his wounds in Havana sometime in July 1521. The Fountain of Youth According to legend, while Ponce de Leà ³n was in Florida he was searching for the Fountain of Youth, a mythical spring that could reverse the effects of aging. There is little hard evidence that he seriously searched for the spring; mentions appear in a handful of histories published years after he died. It wasnt uncommon for explorers of the time to search for or supposedly find mythological places. Columbus himself claimed to have found the Garden of Eden, and countless men died in the jungles searching for El Dorado, the gilded one, a mythical place of gold and precious jewels. Other explorers claimed to have seen the bones of giants, and the Amazon is named after mythological warrior-women. Ponce de Leà ³n might have been looking for the Fountain of Youth, but it would certainly have been secondary to his search for gold or a good place to establish his next settlement. Legacy Juan Ponce de Leà ³n was an important pioneer and explorer most often associated with Florida and Puerto Rico. He was a product of his time. Historical sources agree that he was relatively good to natives who were assigned to his lands- relatively being the operative word. His workers suffered greatly and rose up against him on at least one occasion, only to be brutally put down. Still, most other Spanish landowners were much worse. His lands were productive and very important for feeding the ongoing colonization effort of the Caribbean. He was known, however, for brutal attacks on indigenous populations. He was hard working and ambitious and might have accomplished much more had he been free of politics. Although he enjoyed royal favor, he couldnt avoid local pitfalls, including constant struggles with the Columbus family. He will forever be associated with the Fountain of Youth, although he was far too practical to waste much time on such an endeavor. At best, he was keeping an eye out for the fountain and any number of other legendary things as he went about the business of exploration and colonization. Sources Fuson, Robert H. Juan Ponce de Leà ³n and the Spanish Discovery of Puerto Rico and Florida. McDonald and Woodward, 2000.Puerto Ricos History, WelcometoPuertoRico.org.

A television show (LOST) Essay Example | Topics and Well Written Essays - 750 words

A television show (LOST) - Essay Example All of these questions feed into the show’s elaborate mythology. Unlike other TV shows, most of what we want to know about Lost is kept from us, hidden out of sight. That is one of the reasons it has had such a cultural impact. It is a bit like Plato’s cave. We can only see the shadows on the wall and would love to see what on Earth is actually casting them. It has also made all of its cast members into big stars. People identify with these people who are confused about their lives, have no idea where they are, and are seem to be directed by forces they can’t understand. In Lost, the storytelling shifts between the survivors trying to adapt to their strange new lives and to understand the island on which they are marooned and then shifts to flashbacks that explain us understand the personal history of each of the many character. We get to see what sort of lives they were living before they came to the island. For the most part these are pretty unhappy lives. Lives in which they were also being directed by forces they didn’t really understand either. Some people object to this, wishing instead that they focused exclusively on the events on the island, but I think that this is wrong. If you focused merely on the events on the island, it would be only an adventure story, but through the flashbacks we learn so much about what makes the people tick that the series becomes as much a character study as an adventure. And this helps us to understand what motivates the characters and lets them stand in for various archtypes. By the end of the season, w e get to know the characters so well that we can anticipate how they are going to respond to even the smallest events. We learn very quickly that the island contains a host of mysteries, including invisible monsters whose location and function remain unknown until the end of the first season (if we even understand them then). There are passageways that lead to strange places, there are promises of

How Attractive is the Keurig System in the Office Coffee Market Assignment - 1

How Attractive is the Keurig System in the Office Coffee Market - Assignment Example The data was collected from these test locations and from the feedback that was received from the office, as well as from the different facility managers in these locations. As per the feedback received by the Keurig company, these managers had mentioned that the OCS was considered to be a wonderful type of benefit, which they were able to provide the company staff and this created a better atmosphere in the entire workplace. Indeed the office managers were really positive regarding the performance and the benefits that the coffee machine placed by the Keurig Company since now they feel that the staffs enjoy the coffee breaks because of the in-house availability of the coffee. In addition to this, the company is also able to save valuable office time with the OCS machines, since the staff would otherwise be wasting precious time by taking coffee breaks outside the organization, at the nearest coffee houses. The flavor offered by the Keurig’s coffee machines was also quite acceptable to the staff since there was a total of eight varieties of flavor. Apart from this the marketing team at Keurig maintained that the use of the OCS coffee machines would lead to lowering the wastage levels of the coffee, that would have otherwise been washed off the drain due to the flavor problems, incorrect type of brewing, or because the coffee becoming stale. In addition to this, the OCS machines could be easily cleaned and maintained quite efficiently. The company also marketed what was popularly called as the K cups. Thus as per the company management, it was decided that the company would market and sell both its brewers as well as the K cups through its regional distributors to the offices. Thus the Keurig company was very successful in this market segment since there was approximately a total   1,700 of the OCS distributors and each one of them was able to achieve a whopping sales of $1.4 million.

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Midterm exam - Essay Example a) Joseph Johnston argues that the failures in corporate governance and top level scandals indicates that the fiduciary principle does not really help to ensure that managers seek the best interest of their stakeholders (25). Johnston argues on the basis of the conflict of interest that is so rife in organizations. This is because most managers and directors seek to meet their profit motives and since they are often assessed on the basis of their ability to attain profitability, most directors are prone to find ways and means of cutting corners and cheating some stakeholders. A stakeholder is a person who affects and/or affected by an organizations activities (Freeman 29). This include a wide variety of people including employees, consumers, suppliers, financial institutions, government agencies amongst others. These people have various demands and expectations from the organization and its directors. And due to the reality that directors are expected in practice, to generate profits, directors are wont to do illegal things that will lead to higher profitability. They are also likely to ignore other peoples claims and legitimate needs in order to attain high profitability. From another angle, managers and directors want to remain in the good books of shareholders and guarantee shareholders expectations of higher dividends. They are therefore likely to present misleading reports that will allow them to remain in office as directors. Thus, the fiduciary duty of operating in good faith is often missed and directors use ways and means to attain results. b) To a large extent, I agree with this assertion. This is because in reality, a director works under so many constraints. And if that is the case, a director will be forced to do things that might not be in the best interest of everyone. From another perspective, it is practically impossible for a manager or director to meet all the expectations and demands of stakeholders. So a director will have to

IT Essay Example | Topics and Well Written Essays - 1250 words

IT - Essay Example The reliability and validity of data and information therefore, become critical ingredients for correct evaluation of the processes or situations if they are to serve as important facilitators to organizational success. Data quality and data integration are different aspect of same coin which are intrinsically linked to the relative accuracy of outcome. Quality and validity of data is extremely important as it assures the reliability within the data, judicious manipulation of which can lead to desired outcome. Data integration, on the other hand is just efficient collation of the same, irrespective of the fact that data is reliable or not. Thus, in the broader framework of effective information management, assurance of data becomes a critical aspect of effective information system. With assured data that is reliable and valid, information retrieved would provide wide ranging knowledge about the existing and emerging paradigms of the business world which may have considerable impact o n the organizational performance outcomes. Data, information and knowledge are the three main facets of the informed choices which are effectively linked to the organizational goals and objectives. ... In short, collation or integration of data provides specific information regarding issues and areas of importance to organizational processes. Interestingly, knowledge becomes the most important part of organizational functioning. It can be described as the thoughts, opinion, observation or ideas which are applied in one’s daily life. They are manipulated to suit one’s needs and requirements in myriad ways. In organizational context, it provides the working population with expertise to exploit the given information for optimal performance outcome. Thus, diversity in the area of knowledge becomes the most important aspect of it and whether one wants it or not, it has become personal choice for one to imbibe, cultivate, facilitate, use, misuse and so on. The precepts and concepts of knowledge, have therefore, become significant tools for not only expanding the scope of utilization of the existing resources but they have become important to understand the changing dynamics of business environment. The main reason that data quality and data integration are important is primarily because they help in storing and manipulating strategic business information that are designed to improve the overall business prospects. In technological term, information system is developed by creating database of various spheres of the business including administration, management, productions, accounts and other areas which are intrinsically linked to produce the desired outcome of efficiency, quality and profits. The access to information facilitates efficient and knowledge based decisions by the managerial leadership and team. At the same time, it serves as a great tool for the management to exploit the available

Report Business Strategy Assignment Example | Topics and Well Written Essays - 500 words

Report Business Strategy - Assignment Example The company has good knowledge pertaining to its competitors. The company fully understands the demands of its customers and therefore it fulfills them accordingly. It possesses good ability of predicting the changing market trends and has successfully applied its strategic skills. The company is considered as strategic leader within its industry and enjoys a competitive workforce. There is a culture of learning attitude in the company which has become a part of its employees’ personalities as well. Abu Dhabi Airport Company has a willingness to adopt change whenever required. The ability of the company to identify new opportunities has led to increase in the profitability of the company for past several years. Its risk taking ability is also appreciable. The company is highly innovative and believes in utilizing the best possible technological advancements. Strategic activities include developing new products and services, reviewing the performance of stakeholders, reviewing the performance of company etc. According to the survey, Abu Dhabi Airport Company is frequently involved in the development process of new products and services. However, it is not much involved in the public relation campaigns and has been marked as average in this category. Abu Dhabi Airport Company strictly examines the performance of its distribution channels as well as it suppliers. It frequently formulates marketing strategies whenever required and also frequently examines the level of customer satisfaction. The pricing strategies are also reviewed by the company more frequently and in this manner, its response time is adequate. The business objectives are strongly driven by the customer satisfaction. The company frequently monitors the alignment in serving the customers and level of commitment. The business model of Abu Dhabi Airport Company, also allows the company to freely communicate all the pleasant and unpleasant experiences

IT Essay Example | Topics and Well Written Essays - 1250 words

IT - Essay Example The reliability and validity of data and information therefore, become critical ingredients for correct evaluation of the processes or situations if they are to serve as important facilitators to organizational success. Data quality and data integration are different aspect of same coin which are intrinsically linked to the relative accuracy of outcome. Quality and validity of data is extremely important as it assures the reliability within the data, judicious manipulation of which can lead to desired outcome. Data integration, on the other hand is just efficient collation of the same, irrespective of the fact that data is reliable or not. Thus, in the broader framework of effective information management, assurance of data becomes a critical aspect of effective information system. With assured data that is reliable and valid, information retrieved would provide wide ranging knowledge about the existing and emerging paradigms of the business world which may have considerable impact o n the organizational performance outcomes. Data, information and knowledge are the three main facets of the informed choices which are effectively linked to the organizational goals and objectives. ... In short, collation or integration of data provides specific information regarding issues and areas of importance to organizational processes. Interestingly, knowledge becomes the most important part of organizational functioning. It can be described as the thoughts, opinion, observation or ideas which are applied in one’s daily life. They are manipulated to suit one’s needs and requirements in myriad ways. In organizational context, it provides the working population with expertise to exploit the given information for optimal performance outcome. Thus, diversity in the area of knowledge becomes the most important aspect of it and whether one wants it or not, it has become personal choice for one to imbibe, cultivate, facilitate, use, misuse and so on. The precepts and concepts of knowledge, have therefore, become significant tools for not only expanding the scope of utilization of the existing resources but they have become important to understand the changing dynamics of business environment. The main reason that data quality and data integration are important is primarily because they help in storing and manipulating strategic business information that are designed to improve the overall business prospects. In technological term, information system is developed by creating database of various spheres of the business including administration, management, productions, accounts and other areas which are intrinsically linked to produce the desired outcome of efficiency, quality and profits. The access to information facilitates efficient and knowledge based decisions by the managerial leadership and team. At the same time, it serves as a great tool for the management to exploit the available

National federation of independent business vs. sebelius(2012) Essay

National federation of independent business vs. sebelius(2012) - Essay Example The exchange provides individuals and families with low income,at a certain poverty rate, an opportunity to receive the government subsidy towards purchases made in the exchange. In addition, minimum health insurance policy standards are established by the law. There were two major issues that formed the basis for the case and onto which the involved parties laid their claims. The first issue involved the constitutional validity of the Congressional law requiring the states to make a choice between losing Medicaid funding from the federal government and upholding the Obamacare (National Federation of Independent Business vs. Sebelius, 2012). On the other hand, the second issue involves the constitutionality of the Congressional law that pushes for the obtaining of health insurance by all citizens and imposing penalties for those who fail to comply (National Federation of Independent Business vs. Sebelius, 2012). In reference to the first provision of the Affordable Care Act (ACA), which requires all states to adhere to the Medicaid expansion parameters or experience withdrawal of the Medicaid funding, the 10th Amendment is violated. According to the court, as much as the unconstitutionality of the mechanism is evident, the courts only solution is redaction of the penalty to allow for free choice among the states concerning establishment of the proposed exchange without being treated with loss of the Medicaid funding (National Federation of Independent Business vs. Sebelius, 2012). As such, the court maintained that the unconstitutional coerciveness of the provision that withheld the federal grant was clear and evident. With reference to commerce clause, the ACT is unjustified. The court has never allowed the Congress to purchase a given product mandatory by utilizing its power to control commerce between states. As such, there ought to be an item of regulation for the regulation of intersta te commerce by the congress to be possible. On the

Assessing and Managing Supply Chain Risks

Assessing and Managing Supply Chain Risks 1. Introduction The current trend of outsourcing to low cost countries combined with supplier base reduction has provided significant cost reductions for businesses. However, globalization and implementation of more streamlined supply chains have increased risks for companies when acquiring goods and services needed for their operations. By the term risk is meant a chance of facing undesired consequences such as damage, loss, or injury. More scientifically, risk is defined as the combined probability for an undesired event and the potential damage the event might cause. This definition, or variations of this definition, has been applied by a number of researcher investigating risk (March and Shapira, 1987; Zsidisin, 2003; Spekman and Davis, 2004; Wagner and Bode, 2006; Ritchie and Brindley, 2007). The detrimental effects does not have to be existential to the companies, but typically they cause lost sales, decreased market share and large contractual penalties for the parties affected (Zsidisin, 200 3). A very well-know example of such a detrimental effect is the $400 mill loss suffered by the Swedish cell phone manufacturer Ericsson due to a lightning bolt which struck their sub-supplier of semi-conductors (Latour, 2001). Another example is the battle against the foot-and-mouth disease in the UK agricultural industry during the year 2001. This event temporarily paralyzed the agricultural industry, while the tourism industry suffered great losses. Even luxury car manufacturers such as Volvo and Jaguar were affected since deliveries of quality leather used in various parts in the car compartment were temporarily stopped (Norrman and Jansson, 2004). A general ban on sale and export of British pigs, sheep and cattle was introduced during the outbreak. The tourism industry also suffered as many tourists changed their vacation plans due to transport bans and detergent washing of cars, boots and clothing in affected regions. Similarly, the fruit company Dole lost over $100 million dollars when a hurricane caused massive damage to the area in Central America where their banana suppliers were located (Griffy-Brown, 2003). The outbreak of SARS in Southeast Asia affected various industries such as the electronics industry, retailing, tourism, and the airline industry with losses at the national level stipulated to $38 billion just for Hong Kong, Singapore, Taiwan, and Thailand (Overby et al., 2004). The economic impact of the hurricane Katrina is stipulated to $100-125 billion. More than half of that amount is due to the flooding of New Orleans which paralyzed industry and disrupted normal living conditions in the affected areas (Boettke et al., 2007). However, the most famous of such disruptive events is probably the 9/11 terrorist attack in 2001, which caused immediate financial losses and initiated a massive restructuring of the airline industry (Bhadra and Texter, 2004). The above mentioned examples illustrate that supply chains may not be well prepared for dealing with unanticipated events causing disruption in sub-systems of supply chain networks. The traditional cost-efficiency focus of supply chain systems have led companies to eliminate buffers in the form of inventories and multiple sourcing throughout the network. However, this has also led them to remove mechanisms in the supply chain which previously moderated the effects of undesired, disruptive events in the chain. An alternative approach is to introduce more agility in the supply chain. This approach has successfully been applied as a response to the fact that more and more market places in the twenty-first century require a proliferation of products and services, shorter product life cycles and increased demand for innovation (Narasimhan, Swink and Kim, 2006). In agile supply chains, stock out penalties occur immediately in the form of lost sales and the key performance measure is no lon ger productivity or cost, but customer satisfaction. Traditional stable partnerships are substituted with more fluid clusters where partners enter and leave the network at a more rapid pace. In general, there is also a focus on operator self-management to maximize the actors autonomy (Mason-Jones, Naylor and Towill, 1999). The actors higher level of autonomy in agile supply chains makes them better able to respond to changes in supplies upstream as they have no or few bindings keeping them from changing to alternative sources of supply. However, supply chain companies dealing with commodity goods rather than fashion goods can not necessarily be expected to have the same degree of freedom. Their day-to-day competition would require them to eliminate all forms of waste to remain competitive. Any cost driving measure to mediate or avoid risk such as excess production capacity, excess inventory, and increased supplier base would therefore have to be weighed against the expected costs of future unknown disruptive events. To do this, a proactive identification of potential supply and demand hazards is required at a strategic level. The point is to identify where unanticipated risk events have the biggest impact on the supply chain network, identify the type and number of risks, their associated costs, and as sess alternative counter-measures to improve the resilience of the supply chain. The intent of this conceptual paper is to establish a decision framework in order to aid the proactive identification and management of potential upstream and downstream supply and demand hazards. The framework is developed based on a broad variety of literature integrating multiple perspectives on risk from supply chain management, marketing, and organizations theory. The risk framework presented separates itself from previous efforts in its comprehensiveness, and it has been designed to match the supply chain management framework developed by the Global Supply Chain Forum (GSCF). Previous categorization attempts have usually only presented sub-sets of risk factors and have not paid much attention to how supply chain risks can be dealt with proactively. For instance, Zsidisin (2003) listed a number of useful supply risk characteristics and classified them into characteristics belonging to items, markets and suppliers based on the results of a case study. Item characteristics included impact on profitability and the newness of product application, while market characteristics involved global sourcing, capacity constraints, market price fluctuation, and number of qualified suppliers. Risks associated with suppliers were capacity constraints, inability to reduce costs, incompatible information systems, quality problems, cycle times, and volume and mix requirements changes. However, Zsidisins list of supply risk characteristics did not contain important risk elements such as behavioral appearance of supply chain actors and risks associated with skills and qualities of the individual supply chain organizations, nor did it pay much attention to mitigation of risk events. In addition, the network perspective of supply chain management was not evident in the sense that an event can appear several tiers away from the focal organization but still damage the organization via an unknown dependence. Spekman and Davis (2004) also discussed a typology for categorizing risks. They found that risk lies inherent in every supply chain flow of goods, information, and money and they mentioned many of the same risk characteristics as in Zsidisin (2003). In addition, criminal acts and breach of norms were included as risk elements in the supply chain. However, they did not focus much on actions to minimize or avoid the effects of undesired events. Dealing with risk was eventually reduced to the introduction of buffers or building trust. An exception is made for the management of security risks where they briefly mention the necessity of proactive planning to avoid such risks. Another example is Peck (2005) who reported from an empirical study where the sources and drivers of supply chain vulnerability were investigated. She used the knowledge achieved to develop a multi-level framework for risk analysis and did not put much emphasis on identifying individual risk characteristics and tactics to improve the supply chains resilience. However, the framework illustrated in an intuitive manner how unanticipated and undesirable events at other nodes in a network could influence and cause problems at different levels for a focal company via dependencies. Kleindorfer and Saad (2005) also attempted to provide a conceptual framework to assess risk and introduced three tasks as the foundation of risk management. These were Specifying sources of risk and vulnerabilities, Assessment, and Mitigation. The sources of risk and vulnerability were thereafter divided into operational contingencies, natural hazards, and terrorism and political instability. Kleindorfer and Saad (2005) did not elaborate in much detail on which risks to include in each of these categories, thus from a practical risk assessment point of view, the model becomes less interesting. In a similar vein, Ritchie and Brindley (2007) developed a framework to encapsulate the main strands of supply chain risk management. They distinguished between seven sources of risk, but were not specific about which risks to expect in each category and they were not very detailed in their description of risk avoidance or mediation tactics. In stead, they used their general model as a guide in an exploratory case study where the purpose was to focus on supply chain members degree of awareness of supply chain risks, and how supply chain members identified and responded to identified risks. Ring and Van De Ven (1992) developed a framework for structuring cooperative relationships between organizations based on varying degree of risk and reliance on trust. They based their paper on the assumption that the degree of risk inherent in any transaction depends in the direct proportion to decreases in time, information, and control. Examples provided were commercial risk (risk of not finding a price-performance niche in the market), technological risk (probability of bringing the technology to market), scientific risk (lack of knowledge), engineering uncertainty (will the technology work?), and corporate risk. By corporate risk they referred to the risk of wrong allocation of resources in the organization. However, these types of risk are strongly connected with internal managerial and organizational skills of the focal company, and thus cover only a small portion of the risk concept from a supply chain management perspective. Risks arising from process sharing and network inf licted risks were barely mentioned. In summary, a higher level of precision in supply chain risk assessment frameworks combined with normative guidelines for risk avoidance seems present in extant literature. This call has formally been put forth by Harland, Brenchley and Walker (2003) who provided an easy-to-follow procedure for risk assessment in supply chain networks. They concluded that more managerial guidance is required to support risk management and redesigning of supply strategies to incorporate risk strategies . An attempt to answer this call has been made in the following sections. Mapping of risks in the supply chain has been emphasized combined with a discussion of tactics for risk mitigation and risk avoidance. In essence, this covers steps two to four in the model by Harland, Brenchley and Walker (2003) (Figure 1). Guidance for mapping of the supply chain is the main goal for many of the supply chain management frameworks recently developed. Mapping of the supply chain has therefore only received limited attention in this paper, but references to some well-known supply chain frameworks are provided. Steps five and six have been left for the managers to decide as the strategy formation and implementation would be situation specific and dependent on the outcome of steps one to four. 2. Research method The framework is developed based on a literature review where multiple perspectives on risk from marketing theory, organizations theory, and supply chain management have been integrated into a composite supply chain risk framework. Relevant contributions were identified through library searches and key word searches in Proquest and ScienceDirect databases. Search words were used either alone or in combination to find contributions which could bring added insight about risk from different theoretical perspectives. Key word searches typically included words such as supply chain management, marketing, or organization theory, and words such as risk, framework, uncertainty, vulnerability, resilience, etc. A large number of research contributions were identified from this procedure and contributions were further selected based on a qualitative assessment of the title and abstract of each identified contribution. A guideline for the literature review was to find an answer to the question what do we know from theory which could be relevant for supply chain managers in their efforts to identify and reduce the level of risk in their supply chains? The emphasis on theory was decided since an exploratory empirical investigation would be descriptive of current practices which would not fit with the normative purpose of this investigation. Ex post empirical testing of the entire framework in a single study were also considered difficult to accomplish due to the amount of risk factors included. However, a varying degree of empirical validity is offered through the previous empirical testing performed by the researchers referenced. Some empirical guidance and initial face validity was also provided through discussions with the general director of a sub-supplier to the Norwegian oil and gas industry. 3. Supply chain management and risk The term supply chain management (SCM) has primarily been linked to the study of either internal supply chains integrating internal business functions, the management of two party relationships with tier one suppliers, the management of a chain of businesses or with the management of a network of interconnected businesses (Harland, 1996). Transaction cost analysis (TCA), organization theory (OT) and relational marketing (RM) literature have contributed substantially to the development of SCM research (Croom, Romano and Giannakis, 2000). However, a definition of SCM given by the members of the Global Supply Chain Forum states that Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. This distinguishes SCM from the previous mentioned theories since it is the network or chain perspective which is emphasized (Lambert, Cooper and P agh, 1998). 3.1. Mapping the supply chain In order to be able to assess risk in a focal companys supply chain, a thorough insight is required about how the supply chain is configured. A number of frameworks have been developed for the purpose of achieving such knowledge, but Lambert, GarcÃÆ'Â ­a-Dastugue and Croxton (2005) identified only five frameworks which recognized the need to implement business processes among supply chain actors. Such implementation is considered a key area where supply chain management can offer improvement to supply chain actors (Hammer, 2001). However, only two of the five frameworks provided sufficient details to be implemented in practice (Lambert, GarcÃÆ'Â ­a-Dastugue and Croxton, 2005). On the other hand, these two frameworks are both supported by major corporations which indicate a high level of face validity. The first framework is the SCOR model developed by the Supply-Chain Council (SCC, 2008). The SCOR model focuses on five different processes which should eventually be connected across firms in the supply chain. These are the plan, source, make, deliver, and return processes. The second framework was developed by the Global Supply Chain Forum in 1996 and was presented in the literature in 1997 and 1998 (Cooper, Lambert and Pagh, 1997; Lambert, Cooper and Pagh, 1998). Similar to the SCOR model, the GSCF model focuses on a set of distinct business processes to be shared among business organizations. However, a main difference between the two supply chain frameworks is their linkage to corporate strategy. While the SCOR framework emphasizes operations strategy, little reference is made to organizations corporate strategies. The GSCF framework, on the other hand, directly links with the corporate and functional strategies of the companies and thus offers a wider scope (Lambert, GarcÃÆ'Â ­a-Dastugue and Croxton, 2005). Since risk is inherent at every level of an organization, and should be considered also at the strategic level, the GSCF framework was chosen as a starting point for our development of a supply chain risk management framework. 3.2. Identify risk and its location In the GSCF framework, supply chain management consists of three inter-related elements: 1) the structure of the supply chain network, 2) the management components governing the shared supply chain processes, and 3) the different types of processes linked among supply chain actors. Who to link with, which processes to link, and what level of integration and management should be applied are considered key decisions for successful management of supply chains (Lambert, Cooper and Pagh, 1998). From a supply chain risk management perspective, these managerial questions make way for three propositions regarding risk and the focal company. The first proposition concerns the unpredictability of human nature when processes are shared with others. The second concerns the vulnerabilities created because of dependencies between multiple network actors, and the third refers to the skills and qualities of the different supply chain actors organization and management. Stated formally: P1: A focal companys exposure to supply chain risk depends on the level of human behavior unpredictability in the supply chain and the impact such unpredictability can have on the companys supply chain. P2: A focal companys exposure to risk depends on the number and strength of dependencies in its supply chain and the impact an external risk event may have on the company. P3: A focal companys exposure to risk depends on the supply chain actors skills and qualities to identify potential risks in advance and to solve risk situations once they occur. Although they address different aspects of risk to a focal company, the propositions are closely related. For instance, without the existence of network dependencies, behavioral unpredictability at another supply chain actor becomes irrelevant. Similarly, the focal company does not have to worry about the skills and qualities of other supply chain actors because there is always another alternative to select. Also, an increase in the supply chain actors skills and qualities will indirectly reduce the level of human unpredictability since it rules out some of the mistakes humans can make; however, it does not rule out the focal companys uncertainty about other supply chain actors intended strategic actions. The relationship between the propositions has been outlined as arrows in Figure 2. Each category between the arrows refers to a more precise definition of the risks mentioned in the propositions. The categories follow the naming convention in the GSCF framework, and together, they c onstitute a holistic representation of supply chain risks relevant for successful supply chain management. The formal definitions for the three types of supply chain risk in Figure 2 are provided below and explained in the subsequent sections: Supply chain processes risk refers to the perceived risk of other companies in the supply chain behaving intentionally or unintentionally in a manner which could be harmful to the company. Supply chain structure risk is closely linked with the total number and type of dependencies in the network. It is a measure for the level of significant detrimental effects an undesired and unanticipated event can have on a companys supply chain network. This event can occur externally or internally to a local market or industry and affect either a single node or a multitude of nodes simultaneously. Supply chain components risk refers to the technical, managerial and organizational abilities each supply chain actor has developed in order to embrace opportunities, detect and avoid potential supply chain disruptions, and to mediate the effects of a disruption once it has occurred. 3.3. Supply chain processes risk A focal companys exposure to supply chain risk will, according to proposition one, depend on the level of human behavior unpredictability and the impact such unpredictability can have on the companys supply chain. When companies begin to explore the competitive advantage of accessing and managing processes belonging to other companies in the chain, they therefore need to identify how the sharing of a process can change its vulnerability to unanticipated events and agree on strategic actions to reduce the processes vulnerability. The main factors to consider when processes are shared with other actors are shown in Figure 3 and explained below. In general, the sharing of processes across tiers in a network can be problematic since it simultaneously makes the focal company more vulnerable to risk. Under working market conditions, each actor is free to choose its trading partner for every transaction. A natural moderating effect on risk therefore exists since there is no dependency on other specific actors in the network. However, when companies begin to integrate processes, as prescribed by supply chain management literature, they distance themselves from the market by creating lock-in effects with selected partners due to the specificity of tangible and intangible assets deployed. From a transaction cost theory point-of-view (Williamson, 1975, 1985), specific investments in shared processes must be protected against the risk of possible opportunistic behavior from the other actor in each partnership. Opportunistic behavior refers to actors self-interest seeking with guile (Williamson, 1975) where guile means lying, stealing, cheating, and calculated efforts to mislead, distort, disguise, obfuscate, or otherwise confuse (Williamson, 1985). In practice, this type of supplier behavior would materialize in hazards like broken promises, production delays, increased costs, production shortcuts, and masking of inadequate or poor quality (Provan and Skinner, 1989; Wathne and Heide, 2000). Any uncertainty of whether the suppliers behave, or would attempt to behave, opportunistically therefore increases the impression of risk to the actor performing the risk assessment[1]. However, transaction cost theory has been criticized for its assumption of opportunistic decision makers. Critics argue that it is a too simplistic and pessimistic assumption about human behavior, and that opportunism represents the exception rather than the rule (Macneil, 1980; Granovetter, 1985; Chisholm, 1989). John (1984) also argued that undesired attitude such as hard bargaining, intense and frequent disagreements, and similar conflictual behaviors do not constitute opportunism unless an agreement has been reached of not to do so. In addition, even well-meant behavioral actions by one party may have negative effects for another party in the supply chain. The perception of risk linked with human behavior where processes are shared can therefore not be restricted to a matter of opportunism alone, but needs to include any kind of undesired human behavior whether it is opportunistic, undesirable or well-intended, but still potentially harmful. It has been suggested that behavioral uncertainty can be reduced with the introduction of formal and informal safeguards to the relationship. In a successful relationship, relational rules of conduct work to enhance the well-being of the relationship as a whole and take explicit account for the historical and social context within which an exchange takes place (Heide and John, 1992). Flexibility among the parties, solidarity, information exchange, and long-term orientation are norms typically associated with, and referred to, as relational safeguarding mechanisms in contemporary research (Ivens, 2002). The presence of these norms in a relationship has been found to improve the efficiency of relationships and to reduce parties behavioral uncertainty (Heide and John, 1992). Alternatively, ownership, or some form of contractual command-obedience authority structure can be used to protect against inherent behavioral uncertainty. Vertical integration has traditionally been prescribed by transaction cost literature as an answer to handle uncertainty in repeated transactions when there are specific investments involved (Williamson, 1975, 1985). However, Stinchcombe (1985) found that the safeguarding features of hierarchical relationships can be built into contracts as well. These features included authority systems, incentive systems, standard operating procedures, dispute resolution procedures, and non-market internal pricing. It should be noted that advanced pricing mechanisms used can include agreed risk sharing and paying an insurance premium to a third party to protect against the financial consequences of a business interruption (Li and Kouvelis, 1999; Doherty and Schlesinger, 2002). However, a prerequisite for risk transfer mitigation to work is the a bility to clearly define the type, cause and boundaries for when the agreed risk transfer applies. Also, well defined standard operating procedures are particularly important since they indirectly describe the non-conformance cases. Breaches in quality performance or EHS procedures, shipment inaccuracies, delivery times, etc. by the focal company or another party are indications of reduced control over the supply chain. Hence, an increased frequency of such incidents in other nodes in the network will lead to an impression of greater behavioral uncertainty and supply chain risk. The impression of risk when processes are shared would naturally depend on the degree of lock-in which exists between two parties. A second risk factor in supply chain processes risk therefore refers to the criticality of specific nodes in the network (Craighead et al., 2007). More precisely, critical nodes are actors in the supply chain responsible for delivery of critical components or important subsystems where the number of supplier choices is limited. However, a node can be critical even though there may be little dependence in day-to-day operations. The increased popularity of outsourcing to third parties necessarily increases other actors involvement in the companys material and information flow. But, since both information and materials represent a form of capital investment, this also means that other actors in some cases handle large parts of a companys tied-up capital either in the form of information or in the form of goods. This risk is called degree of capital seizure in the framework. For instance, it is generally not very difficult to switch from one supplier of IT-server capacity to another, but the dependence on the supplier of server capacity can prove severe if sloppy routines at the supplier destroy the electronic database stored. A similar logic applies for other actors with control over much of the companys information and material flow. Large distribution centers are one example. A typical risk event would be a fire causing damage to much of the companys goods stored; however, such an event would not be attributable to the processes shared and is therefore not a supply chain process risk. Instead, such a risk event has been characterized as external to the network and described under supply chain structure risk. However, another example would be the distribution centre not informing the focal company of a changed general staff leave. This would be a breach in the supplier relationship management process because it is a deviation from expected service leve ls in that particular period. 3.4. Supply chain structure risk The decision of who to link with in a network requires an explicit knowledge and understanding of the supply chain network configuration. According to proposition two, this includes a thorough comprehension of the risk inflicted upon the company because of dependencies established in relationship with other network actors. Therefore, the supply chain manager needs to assess how vulnerable the company is to unanticipated changes in the network and its exogenous environment. Dependencies are created with individual partners in the network and the level of dependency must therefore be assessed for each node. However, attributes of the network configuration itself may increase or reduce the impression of risk. A field risk category and a network complexity risk category have been created to reflect this duality. Field risk includes risk factors which are exogenous to the network, and not endogenously created as in supply chain process risk. Field risk is assessed for each node, but supply chain structure risk must also take the complexity of the network into consideration. For instance, geographically dense nodes within a network may represent a great risk to a company even though each actor itself may not be very important. This is similar to the Dole example mentioned in the introduction where a hurricane destroyed the banana harvest in the area where Dole had most of its suppliers (Griffy-Brown, 2003). Network complexity risk refers to decision makers perceiving large networks as more uncertain since the involvement of more actors and more people implicitly includes more things which can go wrong (Craighead et al., 2007). This perception naturally becomes even stronger when the number and strength of identified critical nodes under supply chain processes risk is high. However, if a focal company is engaged in several sub-networks of supply and demand, this would moderate the perception of risk similar to the basic idea of diversification in modern portfolio theory. The reason is that the company can rest on several independent business pillars and prosper with the remaining pillars while the problem in the failing supply chain is sorted out. Field risk factors such as currency fluctuations, political or legal changes, environmental, and social risks are external to the supply chain network, and refer to the country or region where suppliers, or clusters of suppliers, are located (JÃÆ'Â ¼tner, Peck and Christopher, 2002). Climate changes, in particular in combination with population growth, should receive attention since such changes may alter and threaten the living conditions in large regions of the world with serious effects on both the supply side and demand side to companies (Gilland, 2002; Yea, 2004; Leroy, 2006). An undesirable side-effect of global trade is that supply chains have become significantly more vulnerable to both organized and unorganized crime. Although cargo thefts have not yet caused major supply chain disruptions, the extent of such crime is steadily increasing and should receive attention from a proactive risk management perspective particularly if shipment of critical components is part of the day-to-day operations (Caton, 2006; Barnett, 2007). Another type of crime is abduction of key personnel for ransom money. Kidnappings are mentally challenging to the abducted and the organizations they work for, and can strain organizational resources for a substantial amount of time after a kidnapping incident. In addition, if a decision to pay ransom money is made, the amount required could be financially problematic to smaller companies. This type of crime has generally been associated with Latin America; however, experts have anticipated that such kidnappings will spread to other parts of the world (O Hare, 1994). Although no scientific follow-up study has been identified