Michael Jackson Psychobiography

When I first registered for this class I wasn’t really expecting anything to happen. I thought I would be bored, probably not pay any attention, and do what I had to in order to pass so that I can graduate. However, throughout the semester, I found myself enchanted by some of the creativity most of the artist created. I never appreciated art before, and a part of me feels disappointed at that thought now, because I have learned to appreciate some of the emotional depth and the expression these artists showed in their work.I found myself going to the museum whenever I have time now just to walk around and look at some of the things that are there. I hadn’t realized how much art ties into many different aspects of history and even surprisingly psychology. For the most part, this class, though I haven’t really engaged in topics, have opened my eyes to art, and really see that there is actually more than just paint on a canvas, or there is more meaning to a sculpture than meets the eyes. DAVID GARIBALDI David Garibaldi probably is not the most widely known artist of our time. He is still fairly young, but I fell in love with his art.There are many famous living artists today that I could have talked about, but Garibaldi really captured my attention. So, it would not surprise me if many people did not know who David Garibaldi is or know of is his artwork. To be honest, I did not know who he was either had he never appeared on America’s Got Talent in this 2012 past season. He has this mixture to his style of work which includes visual and performing art. There is this uniqueness to how he creates his work pieces, and I found it astonishing at how fast he can get a single art piece done and still be able to draw a person in instantly.Garibaldi Paintings Some people like things they can relate to, possibly understand just to keep them interested, and I thought that some of his art expresses that. In the first page of this paper, some of the images that are displayed are all from David Garibaldi. If you have not noticed, most of the pieces I have chosen to display on the cover page ties people in with music and dance. In my own opinion, I think Garibaldi expresses in most of his art pieces a sense of equality and unity among different people in gender and race.Though he does paint different portraits, he focuses on drawing people that tie in with music, for example, musicians. He has paintings of women enjoying and creating music, which to me, tells me that women should not be afraid to express themselves. Most women in today’s generation have trouble with self-esteem, so to me the paintings he has displaying women with the hair hiding the faces or, the image of a woman looking away gives the viewer a chance to let themselves think as if they were the image painted. If that were the case then that kind of style could encourage the viewer to step out of their shell.The image in the beginning of this paper the one that shows a group of people at a disco rink shows release from stress. The different styles, clothing, facial expressions show that people should go out, have fun and to just be yourself in public. DAVID GARIBALDI David Garibaldi probably is not the most widely known artist of our time. He is still fairly young, but I fell in love with his art. There are many famous living artists today that I could have talked about, but Garibaldi really captured my attention. So, it would not surprise me if many people did not know who David Garibaldi is or know of is his artwork.To be honest, I did not know who he was either had he never appeared on America’s Got Talent in this 2012 past season. He has this mixture to his style of work which includes visual and performing art. There is this uniqueness to how he creates his work pieces, and I found it astonishing at how fast he can get a single art piece done and still be able to draw a person in instantly. Garibaldi Paintings Some people like things they can relate to, possibly understand just to keep them interested, and I thought that some of his art expresses that.In the first page of this paper, some of the images that are displayed are all from David Garibaldi. If you have not noticed, most of the pieces I have chosen to display on the cover page ties people in with music and dance. In my own opinion, I think Garibaldi expresses in most of his art pieces a sense of equality and unity among different people in gender and race. Though he does paint different portraits, he focuses on drawing people that tie in with music, for example, musicians. He has paintings of women enjoying and creating music, which to me, tells me that women should not be afraid to express themselves.Most women in today’s generation have trouble with self-esteem, so to me the paintings he has displaying women with the hair hiding the faces or, the image of a woman looking away gives the viewer a chance to let themselves think as if t hey were the image painted. If that were the case then that kind of style could encourage the viewer to step out of their shell. The image in the beginning of this paper the one that shows a group of people at a disco rink shows release from stress. The different styles, clothing, facial expressions show that people should go out, have fun and to just be yourself in public.Portrait of Christ He created a piece called Portrait of Christ, displaying Christ in what looked like his final moments before his crucifixion. I witnessed how created this piece on YouTube, and I just couldn’t believe how he painted this portrait. He created this piece extremely fast, and not to mention he painted the portrait in way that no one could make out at first until he flipped the canvas around to reveal the competition of his painting. The colors embellished in this painting gave off a series of emotions. The purple, blue, white, and green around Christ’s face and neckline resembled abuse .It told me the story of what he had to go through in order to fulfill God’s will in sacrificing himself for mankind. The black around the eye area, frown, and the tilt of the head of Christ shows sadness, or perhaps reciting a prayer since the black covering the area where the eyes would be give an appearance that his eyes are closed. Painted on top of Christ’s head was the crown of thorns with dashes of red to symbolize the blood, sweat and tears he shed for humanity. The image of the crown in the portrait displays a selfless act, one in which Christ had no qualms in wearing since he knew it was for the benefit of others.This portrait is a magnificent piece of art, because I honestly think that by the position Garibaldi painted Christ, the way he moved to create the piece shows such a strong passionate drive Garibaldi has in wanting to portray a deeper intimacy picture of Christ. The canvases which represent the series of colors, the use of musical influence really a dds to his exceptionality style and details with each stroke. Garibaldi paints in front of his audiences enthusiastically because he wants to get across his messages on the canvases to the audience. Michael Jackson Psychobiography When I first registered for this class I wasn’t really expecting anything to happen. I thought I would be bored, probably not pay any attention, and do what I had to in order to pass so that I can graduate. However, throughout the semester, I found myself enchanted by some of the creativity most of the artist created. I never appreciated art before, and a part of me feels disappointed at that thought now, because I have learned to appreciate some of the emotional depth and the expression these artists showed in their work.I found myself going to the museum whenever I have time now just to walk around and look at some of the things that are there. I hadn’t realized how much art ties into many different aspects of history and even surprisingly psychology. For the most part, this class, though I haven’t really engaged in topics, have opened my eyes to art, and really see that there is actually more than just paint on a canvas, or there is more meaning to a sculpture than meets the eyes. DAVID GARIBALDI David Garibaldi probably is not the most widely known artist of our time. He is still fairly young, but I fell in love with his art.There are many famous living artists today that I could have talked about, but Garibaldi really captured my attention. So, it would not surprise me if many people did not know who David Garibaldi is or know of is his artwork. To be honest, I did not know who he was either had he never appeared on America’s Got Talent in this 2012 past season. He has this mixture to his style of work which includes visual and performing art. There is this uniqueness to how he creates his work pieces, and I found it astonishing at how fast he can get a single art piece done and still be able to draw a person in instantly.Garibaldi Paintings Some people like things they can relate to, possibly understand just to keep them interested, and I thought that some of his art expresses that. In the first page of this paper, some of the images that are displayed are all from David Garibaldi. If you have not noticed, most of the pieces I have chosen to display on the cover page ties people in with music and dance. In my own opinion, I think Garibaldi expresses in most of his art pieces a sense of equality and unity among different people in gender and race.Though he does paint different portraits, he focuses on drawing people that tie in with music, for example, musicians. He has paintings of women enjoying and creating music, which to me, tells me that women should not be afraid to express themselves. Most women in today’s generation have trouble with self-esteem, so to me the paintings he has displaying women with the hair hiding the faces or, the image of a woman looking away gives the viewer a chance to let themselves think as if they were the image painted. If that were the case then that kind of style could encourage the viewer to step out of their shell.The image in the beginning of this paper the one that shows a group of people at a disco rink shows release from stress. The different styles, clothing, facial expressions show that people should go out, have fun and to just be yourself in public. DAVID GARIBALDI David Garibaldi probably is not the most widely known artist of our time. He is still fairly young, but I fell in love with his art. There are many famous living artists today that I could have talked about, but Garibaldi really captured my attention. So, it would not surprise me if many people did not know who David Garibaldi is or know of is his artwork.To be honest, I did not know who he was either had he never appeared on America’s Got Talent in this 2012 past season. He has this mixture to his style of work which includes visual and performing art. There is this uniqueness to how he creates his work pieces, and I found it astonishing at how fast he can get a single art piece done and still be able to draw a person in instantly. Garibaldi Paintings Some people like things they can relate to, possibly understand just to keep them interested, and I thought that some of his art expresses that.In the first page of this paper, some of the images that are displayed are all from David Garibaldi. If you have not noticed, most of the pieces I have chosen to display on the cover page ties people in with music and dance. In my own opinion, I think Garibaldi expresses in most of his art pieces a sense of equality and unity among different people in gender and race. Though he does paint different portraits, he focuses on drawing people that tie in with music, for example, musicians. He has paintings of women enjoying and creating music, which to me, tells me that women should not be afraid to express themselves.Most women in today’s generation have trouble with self-esteem, so to me the paintings he has displaying women with the hair hiding the faces or, the image of a woman looking away gives the viewer a chance to let themselves think as if t hey were the image painted. If that were the case then that kind of style could encourage the viewer to step out of their shell. The image in the beginning of this paper the one that shows a group of people at a disco rink shows release from stress. The different styles, clothing, facial expressions show that people should go out, have fun and to just be yourself in public.Portrait of Christ He created a piece called Portrait of Christ, displaying Christ in what looked like his final moments before his crucifixion. I witnessed how created this piece on YouTube, and I just couldn’t believe how he painted this portrait. He created this piece extremely fast, and not to mention he painted the portrait in way that no one could make out at first until he flipped the canvas around to reveal the competition of his painting. The colors embellished in this painting gave off a series of emotions. The purple, blue, white, and green around Christ’s face and neckline resembled abuse .It told me the story of what he had to go through in order to fulfill God’s will in sacrificing himself for mankind. The black around the eye area, frown, and the tilt of the head of Christ shows sadness, or perhaps reciting a prayer since the black covering the area where the eyes would be give an appearance that his eyes are closed. Painted on top of Christ’s head was the crown of thorns with dashes of red to symbolize the blood, sweat and tears he shed for humanity. The image of the crown in the portrait displays a selfless act, one in which Christ had no qualms in wearing since he knew it was for the benefit of others.This portrait is a magnificent piece of art, because I honestly think that by the position Garibaldi painted Christ, the way he moved to create the piece shows such a strong passionate drive Garibaldi has in wanting to portray a deeper intimacy picture of Christ. The canvases which represent the series of colors, the use of musical influence really a dds to his exceptionality style and details with each stroke. Garibaldi paints in front of his audiences enthusiastically because he wants to get across his messages on the canvases to the audience.

Juvie Three Essay

Imagine that you have stolen a car and got away to help your brother get away from the crime scene where he stole some video games. Then while you are driving after the getaway the car flips over and you wake up behind rusted bars in an orange jumpsuit. Going to juvie is tough for this 14 year old and 2 others but their second chance has luckily come. They are all offered to get out of juvie by Douglas Healy. The three boys have to live in apartment with him in NYC and they have to go to school, work, be involved in a community service and attend therapy sessions. One slipup and they are back to juvie. Terrence, one of the 3 boys tries to escape through the emergency escape but Arjay, another one of the boys, and Gecko stop him and get into an argument. Healy comes and tries to settle it down but falls over and hits the ground unconscious. The boys steal a car and rush him to a hospital. Stealing the car was something they would get sent back to juvie for, so they try to play it off that Healy is still with them even though he has lost his memory and is in the hospital. As they do that they get away from the cops chasing them when breaking Healy out. He regains memory when they are in a battle with the worst gang in NY. Three versus five man battle they were outnumbered. But the cops spot the action on the emergency escape and stop it. Gecko put the car back exactly where he found it after he stole it and they broke out Healy because of all the right reasons even though it was wrong so they are home free. Well not Terence, Gecko, and Arjay but they don’t go to juvie.

Financial Statement Analysis Essay

Introduction The use of financial ratio is very common in accounting and finance process. These ratios are used for evaluation of a business performance, as well as identifying potential problems. Each ratio is used to inform about various factors like the solvency, earning power, and debt load of the business. These ratios measure the relationship arising between two or more modules of the financial statements and pose a greater meaning if the results are compared to industry standards of businesses with same size and activity. There are various types of ratios including return or profitability ratios, which offer information regarding the management’s performance in the usage of resources. The other ratio example is liquidity ratio, which are used to demonstrate the business ability to pay its present obligations. This measures in short and long term views. The other ratio is the leverage, which examines the extent in which a company has depended on borrowing so that it can finance its operations. The other ratio is the efficiency ratio, which assesses the firm’s credit use, assets, and inventory (Libby, Libby, & Short, 2011). Identifying the company using the exhibits 1 IT service provider 2 Retail grocery stores 3 Commercial airlines 4 Pharmaceutical preparations 5 Liquor producer and distributor 6 Mobile Phone service Providers 7 Semiconductor manufacturers 8 Computer software 9 Commercial banking 10 integrated Oil and gas Conclusion The use of ratios is a very important aspect for the firm. It helps in offering information regarding the managements performance in the usage of resources, demonstrating the business ability to pay its present obligations, examining the extent in which a company has depended on borrowing so that it can finance its operations, and assessing the firms credit use, assets, and inventory. This makes it possible to rate the company’s success. References Libby, R., Libby, P. A., & Short, D. G. (2011). Financial accounting. New York: McGraw-Hill/Irwin.

Should Animals Have Their Own Rights Essay Example | Topics and Well Written Essays - 2500 words

Should Animals Have Their Own Rights - Essay Example The author of the reprot talks about Alan Holland’s review of animal rights which depicts depth and richness, making it a helpful tool in solving disputes and practical problems. This report can be viewed as one side of a discourse with Holland, focusing on the main themes in this area of study. The report will start by characterizing speciesism, including a claim that many individuals are in support of rejecting it, irrespective of the fact that they never fail to sanction what is apparently the obvious effects of rejecting the issue. This paper will relate this failure to the historical views over the interrelations between humans, nature and other animals, which is still depicting wide disparities. This report holds that, while a thorough anti-speciesism values the maxim that ‘humans are an aspect of the natural world’, these dodges will not be present. The paper will reach a conclusion, through a discussion of the consistency of anti-speciesist’s resolu tion of the rewilding nature. The points explained through the paper include that under the issue of predation and eating meat, a guardian farmer of a domesticated animal holds the right to slaughter it for meat or trade it for money and the goodness of humans as compared to the cruelty of the wild, bestows extra rights on the human than the animal. Thirdly, when using the case of rewilding nature, man holds more rights to animals due to the services they offer to the natural world and animals (Signal and Taylor 147-157). Under speciesism and the view on the rights of animals, many people in today’s world will regard that animals hold rights. This is evident from popular parlance, informal polls and recent legislation. In jurisdictions like California, Colorado, Boulder and Berkeley, people are not viewed as the owners of pets, but instead, they are viewed as the guardians to their animal companions (AMVA). During the mid 1990s, the NORC (National Opinion Research Center) at the University of Chicago questioned a sample representing the American population, whether they were in agreement with this statement: â€Å"animals should hold the moral rights that humans have†. From the surveys, 35% of the respondent in one survey and 39% in the second were in agreement or strongly in agreement with the statement (Regan 205-211). The results from the survey could understate the universal sentiments held about animals, because not all anti-vivisectionists and vegetarians hold that animals posses rights. Further, it is not that all the people that regard animals have rights, view that they hold as much rights as human beings. For example, it is a fact that humans and all species of animals posses similar moral rights. For instance, humans hold the right to engage in their religious practices, and eagles hold the right to fly in the sky, but humans do not hold the right to flight, and neither do eagles hold rights to religious practices. The comparison shows that in the case that a given entity hold certain rights, the rights are linked to the capacity of the given entity. For example, only the creatures that can engage in religious practices hold the rights to practice religion, and only the creatures that can fly hold the right to flight. However, it is not that all capacities are linked to a given area of rights, for example, considering that humans hold the capacity to murder, but they do not hold the r

Business Essay Example | Topics and Well Written Essays - 1000 words - 23

Business - Essay Example Means offunding the care cost was another factors and the following graph shows distribution of responses over private funding, social services funding, and an integration of the two. More than 52 of the respondents reported an all private funding while 30.4 percent reported an intergration of both public and private funding. Only 17.4 percent reported application of all social funding for the home care services. Annuity and insurance are unpopular methods for private funding of home care services, having been reported by a total of eight percent. Seventy five percent of the respondents who used private funding reported use of savings while 22 percent sold houses. In case the priimary resources run out, the the â€Å"means are tested† and â€Å"social service† identify secondary liability as the following graph shows. The results show that only 27 percent of relatives are willing to top up care cost if social service assumes the primary responsibility of funding the care. The remaining 72 percent of the relatives did not take the top up

International financial management Essay Example | Topics and Well Written Essays - 1500 words - 1

International financial management - Essay Example Zeus Plc can apply for the direct loan from the host government in order to finance its project. The host country i.e. Malaysia must arrange for the venture capital in order to reduce the financial risk associated with Zeus Plc. Country risk was described by Levi (1990) as the type of risk that, because of a consequence of war, social or political events, or revolution; a firm might not be rewarded or paid for their exports. It applies to credit granted within trade and also to the foreign investment (Kosmidou, Doumpos and Zopounidis, 2010). However, it is also a part of financial risk. Scholars describe financial risk as a common term that is used for multiple risks that are close associated with and involves financial transaction (Frenkel et al, 2004; Siddaiah, 2010). In this regards, notion of debt and equity also becomes prevalent. The relation between debt and equity reflects the debt used for financing a company and equity of shareholders. In terms of the country risk ranking, UK is at 19th place as compared to 11th position in 2008. The score declines which means that in general the country risk of UK is 10 points less than the standard score designed for the AAA sovereigns (See Appendix 1 (Euromoney, 2012). As of now, its country risk rating is A2 (Globaledge, 2014). Three types of ventures have been discussed i.e. joint venture, franchising, and subsidiary. Joint venture is the type of strategic alliance of two different companies where both of them decide to act jointly, normally forming a two different legal entity, for a similar purpose (Uta, 2001; Van and Wachowicz, 2008). Lima (2008) stated a subsidiary means a unit which is actually controlled by a different entity (Epstein and Jermakowicz, 2010). Zeus Plc is assumed to be a large global mining company in the United Kingdom, which is deeming to extract minerals from the deposits which it owns at Tapir River in Malaysia. Country risk is

The Neolithic Period Essay Example | Topics and Well Written Essays - 750 words

The Neolithic Period - Essay Example Also in a specific episode it can be noticed that people of that era were very superstitious believing and even making Uki to consider that the universe punished the village because of his deeds. With the development of irrigation, people started to realize that the more wealth they had the more powerful they became. Regrettably, this regular occurrence still takes place in our modern society. This means that Neolithic people began to comprehend some laws of nature and specific truths of life on the Earth. So it can be said that such new surge of perception and understanding in people’s mind was a great step forward in the development of personality and community in general. About nine thousand years ago people started to build their huts in a tight closeness to their neighbors. Hence the first towns commenced their existence. People stopped any kind of isolation and began to live in a community realizing its great benefits. Towns of the Neolithic can be compared to our modern cities which we call as small ones, however, back to the past such accumulation of families was considered to be an entire metropolis. Living in such town provided people with security and stability. The Neolithic people understood that the more homes they build and set together the fewer deaths they would have. The families that lived in a community could count on the help of neighbors in case of a danger and attacks of wild animals, so such people had more chances to save their lives than those who lived isolated from the villages. Such conclusion played a significant role in a provision of safety and gave a huge stimulus for people to widen their towns... About nine thousand years ago people started to build their huts in a tight closeness to their neighbors. Hence the first towns commenced their existence. People stopped any kind of isolation and began to live in a community realizing its great benefits. Towns of the Neolithic can be compared to our modern cities which we call as small ones, however, back to the past such accumulation of families was considered to be an entire metropolis. Living in such town provided people with security and stability. The Neolithic people understood that the more homes they build and set together with the fewer deaths they would have. The families that lived in a community could count on the help of neighbors in case of a danger and attacks of wild animals, so such people had more chances to save their lives than those who lived isolated from the villages. Such conclusion played a significant role in a provision of safety and gave a huge stimulus for people to widen their towns and create whole aggl omerations. Taking into consideration a history of tragic love that happened with Uki depicted in the mentioned film, we can see what a great power was produced by wealth. Hence, falling in love with Niki, the main hero wanted to trade so-called engagement gift for the girl, however, such deal was unsuccessful because someone else paid Niki’s father more than Uki suggested and the girl was given to another man, whom she never loved. This sad love story proves that at those times people did not care about personal feelings of each other.

Halifax Case Study Example | Topics and Well Written Essays - 1500 words

Halifax - Case Study Example Correspondingly, proper planning becomes quite crucial to ensure the sustainability of the tourism sector. Planning in the tourism sector can be done in various different levels including the national and the local level among the prime. In these different levels, concerned authorities in tourism destination involve in the process of development of individual sectors along with enhancing the prevailing services and facilities among others. This is done with the intention to structure the destination as per the needs and demands of the potential visitors (Angelfire, 2014). Contextually, this particular discussion will mainly intend to present and determine pertinent plans for Halifax Canada as a tourism destination that can facilitate to attract utmost level of global visitors. Halifax is one of the most renowned cities of Canada which has places and features that can encourage people to visit the same. This particular tourism planning report will mainly intend to evaluate the destina tion i.e. Halifax in order to identify its resources of tourism along with a few of the other attributes that are vital to attract tourists. The goals of the tourism authority of Halifax are to present the place as one of the best tourism destination of the Canada. The sector is quite beneficial for the economy growth of the place and the authorities intends to assure maximum efficacy in the same so that positive results can be ascertained. Contextually, the planning of the concerned authorities include assuring utmost development and sustainability of the tourism sector of Halifax and attract potential visitors towards the place and gain positive experience in their leisure time (Nova Scotia, 2011). It has been noted that there are certain features of a particular destination that attract people to visit the same and spend their leisure time. Contextually, the place i.e. Halifax has certain environmental attributes along with

FIAT's public relations Essay Example | Topics and Well Written Essays - 1500 words

FIAT's public relations - Essay Example This essay examines Fiat’s public relations strategy and effectiveness. This investigation includes analysis from television and print media, the company website, reflective investigations on the organization’s sales and public relations measures, as well as customer and employee perspectives. The overarching understanding is that Fiat has worked to present an image of European sophistication and newfound reliability. It’s revealed that a great amount of cynicism and resistance have emerged in response to these measures. Ultimately, one considers that perhaps a general sociological shift of perspective has emerged in conjunction with the European Sovereign Debt Crisis and Italy’s economic collapse, wherein European sophistication as increasingly come to be viewed as unsustainable decadence. Some of the most interesting considerations within perceptions of FIAT’s public relations outreach are media sources that consider such presentations from a self -reflexive perspective. In these regards, a number of news stories have directly considered FIAT’s public relations strategy for 2011. One notable element in this context of understanding is considerations related to FIAT’s reentrance into the American market. FIAT’s car commercials add great insight into the organization’s goals in terms of market positioning. A general perusal of recent FIAT commercials reveals a number of notable elements. One of the most pervasive is the latent connection between the FIAT care and femininity.

If I Could Change 3 Things About Myself Essay Example for Free

If I Could Change 3 Things About Myself Essay Yes, maybe you will say:†Hey! Thats not enough! I need MORE! † but what are the three most importance things that you decide to change? If I could change three things about myself, I think first and foremost, I would change my desirous of food-ness. I got the stomach ache-ness when I was at Japan and tried not to eat so much. Well, to late for regrets now! I am eating now and just ate some ice-cream just now and ate fish chops for dinner. Well, good luck to me! Secondly, I would like to change my laziness. I had been pretty darn lazy through my whole life until now. Except for the time when my sister who is older than me by a year got to go to school and petty little me didnt get to go. So, I got so interested in learning that I read ALL of my sisters textbooks. And ever since my sister knew that I knew   that she was learning, made up a lame excuse and threw her homework to me and went to play some stupid computer game like MINES. Because she doesnt know how to play it, she just simply pushes some buttons. But now, I inherited her laziness and she inherited my hardworkingness and its the other way round than the time we were kids. Lastly, I would like to change the fact that I dont really have any talents. Im suck in studying, not really good in sports. I would want my talents to be: singing, dancing and acting. So, I could just be a pop star when I grow up. Well, its really nice to be a star, you know, with people fan boy and fan girling you. You just sing, which you awesomely have HUGE talent at and you get tons of money for just ONE song you sing! It would be such an awesome life! Well, its probably pretty obvious that nobody is going to magically materialize from thin air and grant those for me. So seems like I would just need to keep working at it.

A Study on Research Methods And Approaches

A Study on Research Methods And Approaches This section describes the methods used in carrying out this research. Methodology is an overall approach to research process, from theoretical underpinning to the collection of data (Collis and Hussey, 2003). This section informs the reader of research design, whether it is explanatory, descriptive or he exploratory, and why a particular design is design is chosen. It informs the reader about the primary and secondary sources of data along with argument and rationalization (Ghauri and Gronhaug, 2005). Baker (2003) describes methodology as the critical evaluation of alternative research strategies and methods. Methodology is a combination of techniques used to enquire into specific situation (Easterby-Smith, et al. 2002). Methodology is the analysis of, and the rationale for, the particular method or methods used in a given study, and in that type of study in general (Jankowicz, 2000). 3.2 Research approaches The extent to which the theory is clear at the beginning of the research is important in the design of the research project. The researcher can use the deductive approach and/or the inductive approach (Saunders et.al, 2007). 3.2.1 Deductive approach In this approach, a theory and hypothesis is developed and a research strategy is designed to test the hypothesis. The theory allows examining the specific outcome of the inquiry, which will tend to confirm the theory or indicate modifications (Saunders et.al, 2007). 3.2.2 Inductive approach In this approach, first the data is collected and theory is developed from the result of the data analysed. The result of this analysis would be the formulation of a theory. This approach is concerned with the context in which the events are taking place. Therefore the study of a small sample of subjects might be more appropriate than a large number as with the deductive approach (Saunders et.al, 2007). According to Saunders et al. (2003), followers of the inductive approach would criticise the deductive approach because of its tendency to construct a methodology that is not flexible and that does not allow alternative explanations of what is going on. On the other hand, the deductive approach emphasises scientific principles, moving from theory to data, the need to explain underlying relationships between variables, collection of quantitative data, the application of controls to ensure validity of data, the working of concepts to ensure clarity of definition, a highly structured approach, researcher independence of what is being researched and the necessity to select samples of sufficient size in order to generalise conclusions (Saunders et al., 2003). According to Saunders et al. (2003), the inductive approach also emphasises gaining an understanding of the meanings humans attach to events, a close understanding of the research context, the collection of qualitative data, a more flexible structure that allows room for changes as the research progresses, a realisation that the researcher is part of the research process and less concern with the need to generalise. This approach to research also gives room for alternative theories to be put forth. According to Saunders et al. (2003), deductive research can be quicker to complete. However, time must be devoted to setting up the study prior to data collection and analysis. On the other hand, inductive research can be more prolonged. While the deductive approach to research can be a lower risk strategy, inductive research poses the risk that no useful data patterns and theory may emerge. According to Saunders et al. (2003), most managers are familiar with the deductive approach and are much more likely to put faith in the conclusions emerging from this approach. Having looked at both the research approaches individually and weighing them against each other, it is also useful to look at whether a combination of both these methods is possible. According to Fowler (2002), although most surveys use a single data collection method, it is not uncommon for a combination of methods to be used. This is further reiterated by Saunders et al. (2003) who say that these approaches can not only be mixed and matched, but it is also beneficial to do so. There are two major advantages of using multi-methods in the same study. Another advantage of using a combination of two methods is that it enables triangulation to take place. The advantage of using triangulation is that the weaknesses in each single method will be compensated by the counter-balancing strengths of another. The researcher has used the combination of two methods i.e. triangulation approach which was best suited for the undertaken study. 3.3 Research Design Research design is about organising research activity, including the collection of data, in ways that are most likely to achieve the research aim (Easterby-Smith, et al. 2002). Saunders, at al. (1997) suggests that a research design needs to consider the extent to which you should collect data from a research population. Vogt (1993) defines research design as the science of planning procedures for conducting studies so as to get the most valid findings. Research design is an overall plan for relating the conceptual research problem to relevant and practicable empirical research which provides a plan or a framework for data collection and its analysis (Ghauri and Gronhaug, 2005). Collin and Hussey (2003) argue that determining a research design would give a detailed plan, which will be used to guide and focus on research. Hair, et al. (2003) argues that a research design provides the basic direction for carrying out a project. For the purpose of this research a case study approach has been used i.e. the case study of SVR Institutions, Bangalore (SVR), an educational institution in India. Collin and Hussey (2003) define a case study as an extensive examination of a single instance of a phenomenon of interest and is an example of a phenomenological methodology. Case study is a research study, which focuses on understanding the dynamics present within single setting (Eisenhardt, 1989). Robson (2002) defines case study as the development of detailed, intensive knowledge about a single case or related number of cases. Case study method is used when thesis focuses on a set of issues in a single organisation, and when researcher wants to identify the factors involved in an in-depth study of the organisation (Jankowicz, 2000). The case study approach is suitable because the researcher looked into an educational organisation to ascertain whether this organisation benefits the economically weaker and deprived famili es in the community. 3.4 Adopting Qualitative and Quantitative Research Methods Research method is that section of research report that describes the research methods used in conducting the research (Hair, et al. 2003). Research method is a systematic and orderly approach taken towards the collection and analysis of data so that information can be obtained from data (Jankowicz, 2000). Two main type SVR of approaches to research are qualitative and quantitative approaches. The quantitative approach is collecting and analysing of numerical data and applying statistical test, while quantitative approach is more subjective in nature and involves examining and reflecting on perceptions in order to gain an understanding of social and human activities (Collis and Hussey, 2003). Qualitative approach is the nature and content of what is said while quantitative approach determines the number of who said it (Jankowicz, 2000). Baker (2003) argued that quantitative methods are usually regarded as more robust, leading to actionable results and recommendations, whereas qualitative methods are seen as lacking in rigour, resulting in indecisive outcomes. Van Maanen (1983) defines qualitative techniques as an array of interpretative techniques which seek to describe, decode, translate and otherwise come to terms with the meaning, not the frequency, of certain more or less naturally occurring phenomena in the social world. Collis and Hussey (2003) argue that quantitative approach to data collection provides relative ease and speed with which research can be conducted. Ghuari and Granhaug (2005) describe qualitative method of data analysis as the interactive way where collected data are analysed initiating new question and further data collection. Qualitative research is thus common in social and behavioural sciences and among practitioners who want to understand human behaviour and functions. Since this research has to do with social sciences, it makes qualitative analysis relevant to the research. The rationale of using quantitative methods for this study was in order to obtain the opinion of the management, staff and students rather than seek only statistical data which can eliminate the human aspect and only seek to measure a predetermined variable (Black, 2003). The quantitative data analysis gives the research more direction and viable to readers by numeric interpretation of responses to the questionnaires given out, apart from this using quantitative method of analysing is rational. The quantitative data analysis has been used in the research by quantifying responses from the management, staff and students of the organisation via questionnaires. Rather than using large samples and following a rigid protocol to examine a limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case. They provide a systematic way of looking at events, collecting data, analysing information, and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research (Collis and Hussey, 2003). The figures obtained by the researcher from the different questionnaires and the bar charts could be referred to as the quantitative element of this research while the subsequent analysis and explanation of ideas could be referred to as the qualitative element. 3.5 Questionnaires Questionnaire is a list of carefully structured questions, chosen after considerable testing, with a view to eliciting reliable responses from chosen sample. The aim of a questionnaire is to find out what a selected group of participants do, think or feel (Collin and Hussey, 2003). Questionnaires are used to collect data by asking the sample/participants to respond to exactly the same set of questions. Saunders, et al. (2003) identifies two basic type SVR of questionnaires as self-administered and interviewer administered. They further identified the following type SVR of self-administered questionnaire: Online Questionnaire, The Postal or Mail Questionnaire, Delivery and Collection Questionnaires, Telephone Questionnaires, Structured Interview Questionnaires. For the purpose of this research the self-administered questionnaire shall be used through the use of delivery and collection system. The questionnaire method will facilitate this research due to time constraint on the part of both the researcher and the respondents. To justify this, other methods used in collecting primary data are semi structured and in depth interviews. The questions in the questionnaire will be a combination of Yes/No questions, questions that will give the respondent an option to add comments/justification further to his/her answer. Open questions are also used to allow the respondents free to express his/her view, so that it helps in critical analysis. 3.6 Interviews Interviews are a method of collecting data in which selected participants are asked questions in order to find out what they think or feel. Interviews make it easier to gather the necessary information and opinions, maybe face to face, voice to voice or screen to screen; conducted with individuals or group of individuals (Hussey and Hussey, 1997). For the purpose of this research, conducting interviews, a qualitative method of data collection is used. According to Saunders et al. (2003) interviews are categorised as follows: Structured interviews Semi- structured interviews Unstructured interviews Structured interviews are based on a pre-determined set of questions that are asked by the interviewer in a particular order with no room for flexibility. There is no much room for interaction between the interviewer and the interviewee. A semi-structured interview also involves a pre-determined set of questions, but gives the interviewer scope to change the order of questions asked, query certain areas of interest based on the answers given. However, unstructured interviews are informal. This method of interviewing allows the interviewer to ask any questions without being bound to a pre-determined set of questions. It looks more like a casual chat which allows the interviewer to talk about the issues pertaining to the research (Saunders et al., 2003). The interviewer conducted semi-structured interviews, as it is more flexible and helpful in this research. 3.6.1 Interviews Procedure Prior to the interview, each respondent will be met personally to provide him or her with details about the topic, time and details about the topic. All the respondents were issued a consent form, which mentioned that participation will be voluntary, without coercion and they could withdraw from the study at any time. Interviews will be physically constructed in the organisation rooms, with prior permission. 3.7 Samples and Procedures Jankowicz (2000) describes sampling as a deliberate choice of a number of people, the sample who are to provide data from which you will draw conclusions about some larger group, the population whom this represents. Sample is a subset of a population, while population is a body or any collection of items under consideration (Collis and Hussey, 2003). Ghauri, et al. 1995 defines sampling as saving work, examining the sample instead of whole population. Sampling saves time; this is evident when you have tight deadlines. Occasionally, to save time, surveys collect data from the entire population but analyse only a sample of the data collected. For reasons of economy this procedure has sometimes been adopted for hard-to-code questions, such as occupation and industry, in the United Kingdom 1991 census. Data were collected from the total population for all questions but, for the hard-to-code questions, only 10 per cent were entered into the computer and subsequently analysed, although it should be noted that, for the 2001 census, advances in automated and computer assisted coding software meant all these were coded (Teague, 2000). Many researchers, for example Henry (1990), argue that using sampling makes possible a higher accuracy than a census. The smaller number of cases for which the data is collected means that more time can be spent designing and piloting the means of collecting these data. Collecting data from fewer cases also means that the collected information will be more detailed. For the purpose of this research, the sampling method has been used because it is practically impossible to reach the entire population due to time constraints on the part of the researcher. 3.8 Sampling Techniques Sampling techniques are a range of methods that enable the researcher to reduce the amount of data to be collected by considering only data from a subgroup rather than possible cases or element (Saunders, et al. 2003). Two types SVR of sampling techniques are identified as follows: Probability or Representative sampling Non-probability or Judgemental sampling (Saunders, et al. 2003). Probability sampling is the selection of elements based on random sample procedure that gives a known and non-zero chance of being selected, thereby minimizing selection. It involves taking large samples considered to be representative of target population from which they are drawn (Saunders, et al. 2003). In non-probability sampling, the probability of each case being selected from the total population is unknown. Non-probability sampling is more frequently used for case study research. In this sampling the researcher uses subjective methods such as personal experience, convenience, and expert judgement to select elements in the sample (Saunders, et al. 2003). For the purpose of this research a non-probability or judgmental sampling was used because samples were determined by the use of researchers judgement, experience and convenience. 3.9 Population for Study The population will compromise of all the employees of the SVR Institutions, Bangalore. 3.10 Sample Size Collis and Hussey (2003) assert that the question of appropriate number of subjects to include in a sample is complex and it is a question of deciding how accurate the researcher wants the result to be and how confident is the answer. For the purpose of this research, the total sample size is confined to 110 individuals. 3.11 Pilot Study Pilot study refers to so-called feasibility studies, which are small scale versions or trial runs, done in preparation for the major study (Polit et al. 2001: 467). A pilot study can also be the pre-testing or trying out of a particular research instrument (Baker 1994: 182-3). De Vaus (1993: 54) quotes Do not the risk, Pilot test first. The advantages of conducting the pilot study is that it will caution the researcher in advance where the research project could fail, whether the proposed methods or instruments are appropriate or too complicated. Pilot studies are conducted for the following reasons: To assess the feasibility of a (full-scale) study. It wasnt feasible to consider all the UK companies, hence the case study research. Designing a research protocol Use of case study approach, research questionnaires to sample views and opinions about the project topic, subjective selection of sample based on the researchers judgement, disregarding response questionnaires, which were incomplete. Assessing whether the research protocol is rational and feasible The case study approach, use of questionnaires and interviews are tried and proven methods, hence the researchers confidence in employing them. These research protocols were taken to ensure that project deadlines were achievable. Establishing whether the sampling frame is affective The chosen sampling frame was deemed to be effective because the researcher found the method successfully applied in similar research. Identifying logistical problems, which might occur using proposed methods Issuing of questionnaires to a very large sample size was a problem, hence an appropriate sized sample was chosen. Interviews with the sized sample were conducted to gain their views and opinions. Developing a research question and research plan The researcher developed his research questions based on his primary research on the project topic. Convincing other stakeholders that the main study is worth supporting The stakeholder was the researchers supervisor. Before embarking on the project, the researcher had to complete a proposal outlining the importance and benefits of researching the project topic. 3.12 Method of Data Analysis The data collected through responses in the questionnaires, were analysed and interpreted with the use of the Pie Chart: this is a data presentation which is use in analysing quantitative datas to show the proportion of occurrences of categories or values for one variable. (Saunders et al, 2003, p.340). The data collected through semi-structured interviews were analysed through the use of conceptualization, meanings expressed through words and classifying the results into categories. The above methods used indicate that validity and reliability of data will be ensured and problem of bias will be reduced (Collis and Hussey 2003). Both the qualitative and quantitative methods of data collection will lead to actionable result. The case study approach has helped the researcher to be more focused and facilitate a meaningful result. 3.13 Ethical issues Another very important consideration during research is the ethical issues that may arise. Some of the data to be collected during research could be of highly sensitive nature and therefore may need a formal consent. Some other ethical issues could be privacy of the respondents, possible harm to participants, and possibility of deception involved (Diener and Crandall, 1978). These issues have been taken into consideration for the purpose of this research. The data was collected after a formal consent from SVR Institutions, Bangalore. A clear explanation of the purpose of the study was given to the management. All the respondents were explained the purpose of the study and were also given literature about the study and assured confidentiality and anonymity.

XM Satellite Radio: An Innovation Beyond AM and FM Radio Essay

XM Satellite Radio: An Innovation Beyond AM and FM Radio How much do you enjoy drinking a nice cold beverage, reclining in your most comfy chair, while listening to your favorite radio station? Music is a very important part of the average person's daily life. We wake up to music set on our alarm clocks, sing to music in the shower, listen to music while driving to work, and enjoy it throughout the rest of our day. Well sit back and get ready to experience Radio to the Power of X. We're talking about the new XM satellite radio. This is a brand new radio system that will sweep across America finding its way replacing your old radio service. The articles below will provide you with a closer look at the new XM satellite radio. We talk about the history, basics, and future of this amazing new service. We also give you a closer look at examining the positives and negatives of the XM satellite radio over your regular radio service. So, don't waste any time with static, distortion, and limited channels on your radio service. Take a deeper look at the XM satellite radio and find out for yourself, this is the radio wave of the future! The History XM Satellite Radio After nearly a decade of buildup and anticipation satellite radio has finally hit the airwaves. Satellite radio has been an emerging technology in the making for many years now. In 1992, the Federal Communications Commission (FCC) assigned part of the S-band (2.3 GHz) spectrum for nationwide broadcasting of a satellite-based Digital Audio Radio Service (DARS). In 1997, the FCC granted American Mobile Radio (now XM Satellite Radio) and CD Radio (now Sirius Satellite Radio) broadcast rights over... ..., March). Satellite 2002 Executive of the Year. Via Satellite 26-32. Morris, R. (2003, April 3). XM discussion [Article posted on Web Site XMFan]. Retrieved March 2003, from the World Wide Web: http://www.xmfan.com/viewforum.php?f=2 XM Satellite Radio. (2001). History [Article posted on Web Site XMradio]. Retrieved April 2, 2003, from the World Wide Web: http://www.xmradio.com/corporate_info/history_main.jsp XM Satellite Radio.(2001). How it works: Introduction [Article posted on Web Site XMradio]. Retrieved February 1, 2003, from the World Wide Web: http://www.xmradio.com/how_it_works/introduction.html XM Satellite Radio Stock Report. (2003, February) XM Satellite Radio Business Profile [Article posted on Web Site YahooFinance]. Retrieved February 2003, from the World Wide Web: http://www.biz.yahoo.com/e/011206/xmsr.com

Comparing Frances Zefferilli’s Hamlet and Shakespeare’s Hamlet Essay ex

Comparing Frances Zefferilli’s Hamlet and Shakespeare’s Hamlet I believe Frances Zefferilli’s version of Shakespeare’s Hamlet, made in 1990, is one of the best versions of the play to be put onto screen. The film, starring Mel Gibson as Hamlet, and Glen Close as Queen Gertrude, takes a different look to the play. Zefferilli explores the physiological stability of Hamlet very well, especially in Act 3, Scene 4. My interpretation of that scene in the text was different to the one given in the movie. After reading the scene, I had the notion that Hamlet was already quite confused - he had just come out of a scene where he could have killed the king, but his blunted purpose gets in the way. The killing of Polonius in the text gave me the idea that Macbeth was anxious to find out who h...

Field International Case Study :: Field International, Case Studies, business,

Field International is a large production company that operates for fifteen years. This company has three divisions: Field Production, Field Music, and the new venture, Field Advertising. The president and chairman of the board, Lawrence Field, has operated this business in a pooled interdependence fashion. Each division is directed independently by a vice president, and evaluated in the same independent basis. Recently, two major clients complained directly to Field about some production delays of the Advertising Division. Therefore Field decided to meet with his three vice presidents on a weekly luncheon; so the two experienced vice presidents could contribute to the one that is having problems. In addition, he taught that this would be a good occasion to change the usual independent method of operation of each division to a new reciprocal interdependence form of operation where all can cooperate with each other. However this sudden change cause a negative reaction on his v ice presidents, and Field had to drop this idea of change. Consequently, Field International is going through communications problem that could damage the growth of his company. First, Mr. Field tried to impose a radical change on the operation of the business without notifying to the vice presidents of each division. During long time, the production vice president and the music vice president have worked in an independent basis and during this time they get used to it. So, when they get Mr. Durkey’s memo they probably thought that now the authority that they used to have was been restricted without any reason. Also, they could feel offended by the sudden show of distrust of Mr. Field. After all, they had been working for long time for the company without having major problems. In the same way the new advertising vice president was aware of this independent way of operation within the company. Thus, he also must felt professionally underestimated. In addition, the two major clients of the company made the mistake of going over his head which cause an immense indignation on him. In the same way Mr. Field made the mistake of exposing the adverti sing problems in front of the other two divisions without knowing the magnitude of the problem. All these complications contribute to the gloomy atmosphere of the meeting. Next, characteristics like the setting of the meeting and the personality of the employees also contribute to the development of the problem.

Developmental Theories

Theoretically, developmental process of an individual can be psychologically predicted through the use of these theoretical frameworks. Dulcan and Wiener (2006) emphasize that the developmental characteristics of a person are strongly influenced by the emergence and form of particular patterns of functioning obtained from both internal and external influences (p. 3). The idea of developmental theories suggests a complex process of development dependent on discrete elements (e. g. social environment, moral knowledge, sexual stimulation, etc. ) encountered throughout the child’s development.According to Colarusso (1992), the child’s developmental phases can be dynamically oriented and can vary depending on the maturational process being experienced by the child (p. 1). Pressley and McCormick (2007) support the idea by adding that â€Å"children are fundamentally different depending on their stage, which generally correlates with age, and movement from one stage to anothe r stage is rather abrupt† (p. 5). In order to test these developmental theories, we have utilized these frameworks in analyzing the developmental processes of three children based (a) behavioral learning, (b) social-cognitive learning and (c) cognitive learning.Discussion From the recorded observations on the first child examined, the following data reveal that the 3-year old male child (a) tries to imitate adult-like behaviors (e. g. scolding his siblings after seeing their mother scold them, acting responsible, etc. ), (b) more understanding when it comes to possessive terms (e. g. mine, him, hers, etc. ), (c) manifests cooperative behavior during play sessions, (d) mingles with other children of his age even in the absence of parents, and (e) expresses emotions more openly to parents or caretakers. . . . . .After observing these behaviors, we have utilized the social-cognitive theoretical approach since the child has manifested actions and activities related to social inter actions. Social-cognitive approach has been chosen to explain the psychosocial and cognitive related behaviors of the child towards himself and the outside social influences, such as playmates, parents and caretakers. According to Alexander and Winne (2006), social cognitive theory supports the idea that the child’s behavior is reciprocally influenced by interactions, environmental variables and personal components (e.g. cognition, expressions, etc) (p. 356).Evident in the child’s behavior, he manifests a strong, adult-like behavior to impersonate adult personality seen from his parents – more particularly the paternal image. After learning these behavioral patterns, the child applies these to his social activities (e. g. the child scolds his siblings during play time, etc. ). Moreover, the child already understands the basics of social principles, such as possession, playmates and emotional reciprocality.According to Balter and Tamis-LeMonda (2006), the child i s prompted by modeling, enactive experience and observational learning schemes, which is usually manifested through representational processes or symbolic conceptions (p. 295). . . . . . . . . . . . . . . Next, the theoretical approach on behavioral learning has been applied in an observational study on a 5-year old female. As explained by Sadock and Kaplan (2007), behavioral learning suggests that a child develops by learning behaviors present within her social environment (p.1307).The rationale for applying behavioral learning approach is its concept of utilizing behavior to obtain the necessary skills helping the child to better adjust in his or her environment. The child manifests the following behavior during playtime: (a) she wants to be like her friends – this include acquiring material possessions similar to her friends, (b) she easily gets influenced by majority of her friends’ decisions, and (c) she tends to imitate skills performed by her friends.Following b ehavioral learning theory, Salkind (2004) explains that the child usually prioritizes the skills and activities to learn depending on how these can be used in increasing the efficacy of adaptation towards the outside influences (p. 20). Based from John Locke’s theory of blank slate, a child is initially considered naive and unlearned; however, by learning the behaviors that are prominent and frequent in her environment, the child learns how to adapt accordingly (Sadock and Kaplan, 2007 p. 1307).Behavioral learning involves the fundamental developmental concept of the survivability by means of adapting to different behaviors frequently seen in the environment. Evidently, due to the frequent exposure of the child to her playmates, she tends to imitate or learn the frequent activities or skills performed by her playmates to better suit her adaptation toward her social circle. According to Salkind (2004), the theory considers the child as a malleable being influenced by different behaviors and changes resulted by various events and experiences (p.  20).In application, the girl tries to adapt to the behaviors and skills learned by her playmates to better enhance her adaptation and sense of belongingness with her social circle. Indeed, behavioral learning is part of the crucial developmental phases of the child since learned behaviors are used to better adapt in the outside environment, while at the same time, help in building the developmental characteristics of the child (Sadock and Kaplan, 2007 p. 1307).In the last child examined, the theoretical approach of cognitive learning has been applied to analyze the actions and behavioral responses of a 4-year old male child. According to J. Piaget’s cognitive theory, the child is currently in his pre-operational cognitive development based on his age. According to Sadock and Kaplan (2007), the child in this stage usually manifests egocentricity and magical thinking, and still cannot separate the logic of reality from fantasy (p. 133). These characteristics have been manifested by the child during his isolated play session.In his play environment, different action figures, personal television always set to cartoons and toy guns have been noted. According to the child’s mother, he prefers to play with his older sibling (1 year older than the child). They frequently imitate the action cartoons they watched in the television and use their toys to reenact the scenes of the cartoons. Upon observing the child, he verbalizes his realistic belief on magical creatures, robots and different figures normally seen in cartoons.As explained by Slee (2002), the child’s cognitive level is dominated by perception rather than realistic concepts (p. 66). In this stage, the child is still on the process of learning how to separate reality from fantasy. Continuing the observation, the child notably performed his tantrums right after his mother gave his brother a new toy. The child exclaime d a series of egocentric statements (e. g. â€Å"that one’s mine†, â€Å"its mine†, â€Å"mine mine mine!!! †, etc. ).As explained by Lerner (), children at their pre-operational stage are most of the time egocentric, but compared from the previous cognitive phase, these children can now express their egocentric concerns through words (p. 378). In applying the cognitive theory in the child’s development, we can better understand the mental capacities and limitations of the child. . . . . . . . Conclusion In conclusion, developmental theories of behavioral learning, social-cognitive learning and cognitive learning are evidently applicable in analyzing and understanding the different behaviors manifested during the child’s developmental process.Social-cognitive theory has been used to understand the social behaviors and early relations that the child establishes within her external environment. On the other hand, behavioral theory explains the process of learning the different prevalent behaviors perceived as needed for better adaptation and survival. Lastly, cognitive theory points out the child’s magical thinking and egocentric behavior as part of the pre-operational stage of development. . . . References Alexander, P. A., & Winne, P. H. (2006). Handbook of Educational Psychology. London, New York: Routledge. . . . . . . . Balter, L., & Tamis-LeMonda, C. (2006). Child Psychology: A Handbook of Contemporary Issues. London, New York: CRC Press. . . . . . . . Colarusso, C. A. (1992). Child and Adult Development: A Psychoanalytic Introduction for Clinicians. London, New York: Springer. . . . . . . . Dulcan, M. K., & Wiener, J. M. (2006). Essentials of Child and Adolescent Psychiatry. New York, U.S.A: American Psychiatric Pub. Lerner, R. M. (2002). Concepts and Theories of Human Development. London, New York: Lawrence Erlbaum Associates. Pressley, M., & McCormick, C. (2007). Child and Adolescent Development for Educators. New York, U.S.A: Guilford Press. Sadock, B. J., Kaplan, H. I., & Sadock, V. A. (2007). Kaplan & Sadock's Synopsis of Psychiatry: Behavioral Sciences/Clinical Psychiatry. New York, U.S.A: Lippincott Williams & Wilkins. Salkind, N. J. (2004). An Introduction to Theories of Human Development. New York, U.S.A: SAGE Press. Slee, P. T. (2002). Child, Adolescent and Family Development: The Australasian Experience. Cambridge, U.K: Cambridge University Press.   

Quality Physical Health Education Programme in Nigeria Essay

ABSTRACT The paper focused on the Need for Quality Physical Education (PE) Programme in the Universal Basic Education (UBE) programme in Nigeria. It began with an observation on the inadequacy of precious educational systems which gave birth to UBE. Therefore, the paper attempted to answer the question – why there should be quality PE in the school. Furthermore, the paper examined roles of quality PE in the three Education Domains of Motor domain, cognitive domain and affective domain. The challenge of Quality Physical Education in the UBE programme was equally reviewed. The paper concluded that it is only the full implementation of its recommendation that would provide a lasting solution to the challenges of ensuring quality physical education programme in the UBE in Nigeria. INTRODUCTION The previous systems of education that were operated in Nigeria were inadequate to meet the needs for self reliance and rapid economic growth. It was this inadequacy that gave birth to a new one. The Universal Basic Education, Basic education is foundation for sustainable lifelong learning. it provides reading, writing and numeracy skills. The programme provides a wide variety of formal/non-formal educational, activities designed to enable the learner to acquire functional literacy. Basic education in Nigeria context, according to Awosika (2005), includes primary, junior secondary, nomadic and adult literacy education, which focuses on enabling the recipients to live meaningful and fulfilling lives, contribute to the development of the society, and derive maximum social, economic and cultural benefits from the society and discharge their civic obligations competently. WHY QUALITY PHYSICAL EDUCATION? The need for quality Physical Educational Programme offered in the Universal Basic Education (UBE) cannot be over-emphasized. Physical education programme which aims at developing a sound body in readiness for a sound moin has been described by many authors (Adedeji 1998, Ajisafe 1980, Anyanwu 1981, Awosika 1986 and Oyewusi 1992) as education through movement with the body as a vehicle. For several years, one of the goals of all concerned with the physical activity of children has been quality physical education offered daily in our nation’s schools. It is the right of the Nigerian child to be offered quality physical education. According to UNESCO 1978 in Awosika (2005), the International Charter of Physical Education and Sports declares that physical education and sports are fundamental rights for all, and specifically, that: i.Every human has a fundamental right to access physical education and sports which are essential for the full development of personality. The freedom to develop physical, intellectual and moral powers through physical education and sport must be guaranteed both within the education system and in other aspects of social life. ii.Everyone must have full opportunities, in which national traditions of sports, for practicing physical education and sports developing physical fitness and attaining a level of achievement in sport which corresponds to inherent gifts. iii.Special opportunities must be made available for young people, including children of pre-school age, for the aged and for the handicapped to develop their personalities to the full through physical education and sports programmes suited tot their requirements. For these reasons, the physical education curriculum must facilitate achieving National content standards for physical education. To accomplish this, Gallahue and Donnelly (2003) opined that the curriculum should include the following elements: 1.Fitness education and assessment to help children understand, improve, and/or maintain their physical well-being; 2.Instruction in a variety of motor skills that are designed to enhance the physical, mental, social and emotional development of every child; 3.Development of cognitive concepts about motor skills and health enhancing levels of fitness; 4.Opportunities to develop social and cooperative skills and gain a multicultural perspective. 5.Involvement of all children activities that provide maximum amounts of appropriate physical activity. QUALITY PHYSICAL EDUCATION AND THE EDUCATIONAL DOMAINS Any educational programme that does not contribute meaningfully to the educational domains is considered deficient and needs to be restructured. Physical education is sensitive to the motor, cognitive and affective domains and should be viewed as a subject, like any other that makes meaningful and measurable contributions to all three domains. Each of the domains will be looked at briefly in the following paragraphs: MOTOR DOMAIN The motor domain is the basis for the motor skill themes of the physical education programme. Motor development, according to Ayodele (2005), is a progressive change in one’s movement bahaviour brought about by interaction of the movement task with the biology of the individual and the conditions of the learning environment. In other words, one’s unique hereditary make up, along with specific environmental conditions combined with the requirements of the task itself to determine the rate and extents of the movement skill acquisition and fitness enhancement. Quality physical education programme, therefore, will help all children make adaptive change toward increased motor control and movement competence. This is achieved by involving the children in movement activities that are both appropriate to their age and development. COGNITIVE DOMAIN Physical education does not only make unique contribution to the acquisition of movement skills and physical fitness enhancement; it also makes meaningful contributions to the cognitive aspect of children’s development. Cognitive learning is a progressive change in the ability to act Bredenkamp, 1992 in Ayodele, 2005). Cognitive concept of learning can be effectively taught through movement, that is, active participation in activities. Usually, participation in most, if not all physical activities, begins in mind. The participants must first have a concept of the action, think and reason it out before the action. Considering the swiftness with which most physical education activities are performed, one can only imagine the beneficial tasking effect on the cognitive development. It is interesting to note too, that, movement often meets the needs and interest of children more than classroom activities that are less active. When a child is actively participating in a game that is teaching academic concepts, her attention is not easily diverted by extraneous stimuli (Ayodele, 2005). Also, many of today’s children under value academic achievement but have high regard for physical performance. AFFECTIVE DOMAINS An important outcome of any quality physical education programme is enhancement in the affective domain. Affective growth is learning that increased the ability of children to act, interact and react effectively with other people as well as with themselves. Affective growth is often referred to as â€Å"social – emotional development†. Physical education programme provide ample opportunity for interaction and the development of feelings (emotion) for others. CHALLENGES OF QUALITY PHYSICAL EDUCATION IN THE UBE PROGRAMME Quality physical education uses the gymnasium, playing fields as learning laboratory and numerous consumable equipment and supplies that calls for adequate funding. These are lacking in most of the schools. Quality physical education calls for teachers who are dedicated to children’s learning. it is not a â€Å"throw out the ball† programme or some form of glorified recess period. Gallaheu and Donnelly (2003) opined that if children are to realize the full potential of physical education, then, the physical education must continue to strive for quality physical education programmes offered daily. It has been also observed that Nigerian children are frequently unable to take advantage of the many benefits of vigorous physical activities because of poor or non existence of physical education programmes, sedentary life style and erroneous assumption that children by the very nature of being children get plenty of physical activity. As a result, low levels of physical fitne ss and movement skill attainment are all common. Pate (1995) opined that schools should offer physical education programmes, which provide and promote physical activity at every opportunity. Physical education and the school curriculum is another area of challenge. Though physical education has been formally entrenched into the UBE curriculum, effective teaching still leaves much to be desired. Findings have shown that many schools do not teach physical education as it should be taught, while some do not even teach it at all. Ajisafe (1991) attested to this claim that the periods of physical education are often used by children to work outside the class room either to clean the school premises or school farm. Lack of qualified physical education teachers is another challenge. Qualified Physical Education teachers have a lot of role to play in the school PE programme. They teach physical education, organize and administer intramural and extramural sports and they form the cream of the administrators of school sports. If physical education teachers are not adequate, non specialists in physical education cannot properly carry out these functions. Lack of motivation of physical education teachers and athletes; irregular intra-mural and extra-mural sports at school levels and many other challenges need to be urgently addressed to ensure quality PE programme in the school. RECOMMENDATION The following recommendations are put forward towards ensuring quality physical education programme in the Universal Basic Education in Nigeria. More so, school sports (intra-mural and extra-murals) is a forum to practicalize what has been learnt during physical education lessons, it is then imperative that the UBE programme should ensure that PE is properly taught in every school by: (i)Adequate funding of PE and sports programmes; (ii)Employment of adequate and qualified Physical Education teachers for the schools; (iii)Provision of sports and PE facilities, equipment and other supplies; (iv)Resuscitation of the annual intra-mural sports and the extra-mural sports; (v)The PE specialists should be abreast of the latest research, issues and trends in the field through ongoing professional development; (vi)Physical education classes should contain about 25 students per class in order to enhance effective teaching. CONCLUSION Every human being has a fundamental right to participate in sport and physical activity of their choice (UNESCO, 1978). For the children and youth, physical education should be taught in the schools by qualified teachers (Eoulon, 1994). It is only the full implementation of these and lasting solution to the challenges that would ensure quality physical education programmed in the Universal Basic Education in Nigeria. REFERENCES Adedeji, J.A. (1998). Physical Education in Educational Institutions in Nigeria. International Journal of Physical Education. (15) 4 Ajisafe, M.O. (1980). Teaching Physical and Health Education, Macmillan Nigeria Publishers Ltd. Yaba, Lagos. Ajisafe, M.O. (1991). Physical Education in the Service of Mankind (unpublished manuscript). Anyanwu, S.U. (1981). Secondary School Physical Education: Implications for the Development of Sports In Nigeria. The JONA PHER, (2), 2. Awosika, Yomi (1986). It pays to play: With Recreation During Economic Recession. In Afisafe (Ed) Recreation and National Awareness. 73-77 Awosika, Yomi (2005). Collaborative Roles of Physical Health Education and Sports in the Effective Implementation of Universal Basic Education Programmmme. In Omolawan, K.O (Ed) Journal Of Sports Management and Education Research (1), 2:1-20. Ayodele, I.R. (2005). Need for Quality Developmental Physical Education Offered Daily in the Programme. In Omolawam, K.O. (Ed); Journal of Sport s Management and Educational Research (1), 2 121-127. Coulon, S.C. (1994). Elementary Physical Education: A Rural School Districts Perspective Rural Educator, (3) 15: 13-17. Gallahue, D.L. & Donnelly, F.C. (2003). Developmental Physical Education for all Children (3rd), China: Human Kinetics Oyewusi, J.A. (1992). Using Physical Education as a Therapeutic Weapon. Sports Science and Medicine, (2), 1; 307-328. Pate, R.R. (1995). Recent Statements and Initiatives on Physical Activity and Health Question 47:304-310. UNESCO (1993). International Charter of Physical Education and Sports. UNESCO, Paris, France: Eric Document: 370-901.

The Information of Different Needs of Different User Groups

1 Introduction to accounting Introduction n this opening chapter we begin by considering the role of accounting. We shall see that it can be a valuable tool for decision-making. We shall identify the main users of accounting and financial information and discuss the ways in which this information can improve the quality of decisions that those users make. We shall then go on to consider the particular role of financial accounting and the differences between financial and management accounting.Since this book is concerned with accounting and financial decision making for private-sector businesses, we shall also examine the main forms of business enterprise and consider what are likely to be the key objectives of a business. I Learning outcomes When you have completed this chapter, you should be able to: ? explain the nature and roles of accounting; ? identify the main users of financial information and discuss their needs; ? distinguish between financial and management accounting; ? e xplain the purpose of a business and describe how businesses are organised and structured. 2 CHAPTER 1INTRODUCTION TO ACCOUNTING What is accounting? ? Accounting is concerned with collecting, analysing and communicating ? nancial information. The purpose is to help people who use this information to make more informed decisions. If the ? nancial information that is communicated is not capable of improving the quality of decisions made, there would be no point in producing it. Sometimes the impression is given that the purpose of accounting is simply to prepare ? nancial reports on a regular basis. While it is true that accountants undertake this kind of work, it does not represent an end in itself.The ultimate purpose of the accountant’s work is to give people better ? nancial information on which to base their decisions. This decision-making perspective of accounting ? ts in with the theme of this book and shapes the way in which we deal with each topic. Who are the users of accounting information? For accounting information to be useful, the accountant must be clear for whom the information is being prepared and for what purpose the information will be used. There are likely to be various groups of people (known as ‘user groups’) with an interest in a particular organisation, in the sense of needing to make decisions about it.For the typical private-sector business, the more important of these groups are shown in Figure 1. 1. Take a look at this ? gure and then try Activity 1. 1. Figure 1. 1 Main users of financial information relating to a business Several user groups have an interest in accounting information relating to a business. The majority of these are outside the business but, nevertheless, have a stake in it. This is not meant to be an exhaustive list of potential users; however, the groups identified are normally the most important. W HO ARE THE USERS OF ACCOUNTING INFORMATION?Activity 1. 1 Ptarmigan Insurance plc (PI) is a lar ge motor insurance business. Taking the user groups identified in Figure 1. 1, suggest, for each group, the sorts of decisions likely to be made about PI and the factors to be taken into account when making these decisions. Your answer may be along the following lines: User group Decision Customers Whether to take further motor policies with PI. This might involve an assessment of PI’s ability to continue in business and to meet their needs, particularly in respect of any insurance claims made. CompetitorsHow best to compete against PI or, perhaps, whether to leave the market on the grounds that it is not possible to compete profitably with PI. This might involve competitors using PI’s performance in various aspects as a ‘benchmark’ when evaluating their own performance. They might also try to assess PI’s financial strength and to identify significant changes that may signal PI’s future actions (for example, raising funds as a prelude to mark et expansion). Employees Whether to continue working for PI and, if so, whether to demand higher rewards for doing so.The future plans, profits and financial strength of the business are likely to be of particular interest when making these decisions. Government Whether PI should pay tax and, if so, how much, whether it complies with agreed pricing policies, whether financial support is needed and so on. In making these decisions an assessment of its profits, sales revenues and financial strength would be made. Community Whether to allow PI to expand its premises and/or whether to provide representatives economic support for the business.PI’s ability to continue to provide employment for the community, the extent to which it is likely to use community resources and its likely willingness to help fund environmental improvements are likely to be considered when arriving at such decisions. Investment Whether to advise clients to invest in PI. This would involve an analysts asses sment of the likely risks and future returns associated with PI. Suppliers Whether to continue to supply PI and, if so, whether to supply on credit. This would involve an assessment of PI’s ability to pay for any goods and services supplied.Lenders Whether to lend money to PI and/or whether to require repayment of any existing loans. PI’s ability to pay the interest and to repay the principal sum would be important factors in such decisions. Managers Whether the performance of the business needs to be improved. Performance to date would be compared with earlier plans or some other ‘benchmark’ to decide whether action needs to be taken. Managers may also wish to decide whether there should be a change in PI’s future direction. This would involve looking at PI’s ability to perform and at the opportunities available to it.Owners Whether to invest more in PI or to sell all, or part, of the investment currently held. This would involve an assessme nt of the likely risks and returns associated with PI. Owners may also be involved with decisions on rewarding senior managers. The financial performance of the business would normally be considered when making such a decision. Although this answer covers many of the key points, you may have identified other decisions and/or other factors to be taken into account by each group. 3 4 CHAPTER 1 INTRODUCTION TO ACCOUNTING The conflicting interests of usersWe have seen above that each user group looks at a business from a different perspective and has its own particular interests. This means that there is always the risk that the interests of one group will collide with those of another group. Con? ict between user groups is most likely to occur over the way in which the wealth of the business is generated and/or distributed. A good example is the con? ict that may arise between the managers and the owners of the business. Although managers are appointed to act in the best interests of t he owners, there is always a danger that they will not do so.Instead, managers may use the wealth of the business to award themselves large pay rises, to furnish large of? ces or to buy expensive cars for their own use. Accounting information has an important role to play in reporting the extent to which various groups have bene? ted from the business. Thus, owners may rely on accounting information to check whether the pay and bene? ts of managers are in line with agreed policy. A further example is the potential con? ict of interest between lenders and owners. There is a risk that the funds loaned to a business will not be used for purposes that have been agreed.Lenders may, therefore, rely on accounting information to check that the funds have been applied in an appropriate manner and that the terms of the loan agreement are not being broken. Activity 1. 2 Can you think of other examples where accounting information may be used to monitor potential conflicts of interest between t he various user groups identified? Two possible examples that spring to mind are: ? ? employees (or their representatives) wishing to check that they are receiving a ‘fair share’ of the wealth created by the business and that agreed profit-sharing schemes are being adhered to; overnment wishing to check that the profits made from a contract that it has given to a business are not excessive. You may have thought of other examples. How useful is accounting information? No one would seriously claim that accounting information fully meets all of the needs of each of the various user groups. Accounting is still a developing subject and we still have much to learn about user needs and the ways in which these needs should be met. Nevertheless, the information contained in accounting reports should help users make decisions relating to the business.The information should reduce uncertainty about the ? nancial position and performance of the business. It should help to answer qu estions concerning the availability of funds to pay owners a return, to repay loans, to reward employees and so on. Typically, there is no close substitute for the information provided by the ? nancial statements. Thus, if users cannot glean the required information from the ? nancial statements, it is often unavailable to them. Other sources of information concerning the ? nancial health of a business are normally uch less useful. HOW USEFUL IS ACCOUNTING INFORMATION? Activity 1. 3 What other sources of information might, say, an investment analayst use in an attempt to gain an impression of the financial position and performance of a business? What kind of information might be gleaned from these sources? Other sources of information available include: ? ? ? ? ? ? ? ? meetings with managers of the business; public announcements made by the business; newspaper and magazine articles; websites, including the website of the business; adio and TV reports; information-gathering agencies (for example, agencies that assess businesses’ creditworthiness or credit ratings); industry reports; economy-wide reports. These sources can provide information on various aspects of the business, such as new products or services being offered, management changes, new contracts offered or awarded, the competitive environment within which the business operates, the impact of new technology, changes in legislation, changes in interest rates and future levels of inflation.However, the various sources of information identified are not really substitutes for accounting reports. Rather, they are best used in conjunction with the reports in order to obtain a clearer picture of the financial health of a business. Evidence on the usefulness of accounting ? There are arguments and convincing evidence that accounting information is at least perceived as being useful to users. Numerous research surveys have asked users to rank the importance of accounting information, in relation to oth er sources of information, for decision-making purposes.Generally, these studies have found that users rank accounting information very highly. There is also considerable evidence that businesses choose to produce accounting information that exceeds the minimum requirements imposed by accounting regulations. (For example, businesses often produce a considerable amount of accounting information for managers, which is not required by any regulations. ) Presumably, the cost of producing this additional accounting information is justi? ed on the grounds that users ? nd it useful.Such arguments and evidence, however, leave unanswered the question of whether the information produced is actually used for decision-making purposes, that is: does it affect people’s behaviour? It is normally very dif? cult to assess the impact of accounting on decision making. One situation arises, however, where the impact of accounting information can be observed and measured. This is where the shares (portions of ownership of a business) are traded on a stock exchange. The evidence reveals that, when a business makes an announcement concerning its accounting pro? s, the prices at which shares are traded and the volume of shares traded often change signi? cantly. This suggests that investors are changing their views about the future prospects of the business as a result of this new information becoming available to them and that this, in turn, leads them to make a decision either to buy or to sell shares in the business. Although there is evidence that accounting reports are perceived as being useful and are used for decision-making purposes, it is impossible to measure just how useful 5 6 CHAPTER 1 INTRODUCTION TO ACCOUNTING ccounting reports are to users. As a result we cannot say with certainty whether the cost of producing those reports represents value for money. Accounting information will usually represent only one input to a particular decision and so the precise weight attached to the accounting information by the decision maker and the bene? ts which ? ow as a result cannot be accurately assessed. We shall now go on to see, however, that it is at least possible to identify the kinds of qualities which accounting information must possess in order to be useful.Where these qualities are lacking, the usefulness of the information will be diminished. Providing a service One way of viewing accounting is as a form of service. Accountants provide economic information to their ‘clients’, who are the various users identi? ed in Figure 1. 1. The quality of the service provided is determined by the extent to which the needs of the various user groups have been met. To meet these users’ needs, it can be argued that accounting information should possess certain key qualities, or characteristics: relevance, reliability, comparability and understandability. ? ? Relevance. Accounting information must have the ability to in? uence decisions. Un less this characteristic is present, there is really no point in producing the information. The information may be relevant to the prediction of future events (for example, in predicting how much pro? t is likely to be earned next year) or relevant in helping to con? rm past events (for example, in establishing how much pro? t was earned last year). The role of accounting in con? rming past events is important because users often wish to check the accuracy of earlier predictions that they have made.The accuracy (or inaccuracy) of earlier predictions may help users to judge the accuracy of current predictions. To in? uence a decision, the information must, of course, be available when the decision is being made. Thus, relevant information must be timely. ? Reliability. Accounting should be free from signi? cant error or bias. It should be capable of being relied upon by managers to represent what it is supposed to represent. Though both relevance and reliability are very important, t he problem that we often face in accounting is that information that is highly relevant may not be very reliable.Similarly, that which is reliable may not be very relevant. Activity 1. 4 To illustrate this last point, let us assume that a manager has to sell a custom-built machine owned by their business and has recently received a bid for it. This machine is very unusual and there is no ready market for it. What information would be relevant to the manager when deciding whether to accept the bid? How reliable would that information be? The manager would probably like to know the current market value of the machine before deciding whether or not to accept the bid.The current market value would be highly relevant to the final decision, but it might not be very reliable because the machine is unique and there is likely to be little information concerning market values. BUT †¦ IS IT MATERIAL? When seeking to strike the right balance between relevance and reliability, the needs of users should be the overriding consideration. ? ? ? Comparability. This quality will enable users to identify changes in the business over time (for example, the trend in sales revenue over the past ? ve years).It will also help them to evaluate the performance of the business in relation to similar businesses. Comparability is achieved by treating items that are basically the same in the same manner for accounting purposes. Comparability may also be enhanced by making clear the policies that have been adopted in measuring and presenting the information. ? Understandability. Accounting reports should be expressed as clearly as possible and should be understood by those at whom the information is aimed. Activity 1. 5 Do you think that accounting reports should be understandable to those who have not studied accounting?It would be very useful if accounting reports could be understood by everyone. This, however, is unrealistic as complex financial events and transactions cannot normall y be expressed in simple terms. It is probably best that we regard accounting reports in the same way that we regard a report written in a foreign language. To understand either of these, we need to have had some preparation. Generally speaking, accounting reports assume that the user not only has a reasonable knowledge of business and accounting but is also prepared to invest some time in studying the reports.Despite the answer to Activity 1. 5, the onus is clearly on accountants to provide information in a way that makes it as understandable as possible to non-accountants. But . . . is it material? ? The qualities, or characteristics, that have just been described will help us to decide whether accounting information is potentially useful. If a particular piece of information has these qualities then it may be useful. However, this does not automatically mean that it should be reported to users. We also have to consider whether the information is material, or signi? cant.This mean s that we should ask whether its omission or misrepresentation in the accounting reports would really alter the decisions that users make. Thus, in addition to possessing the characteristics mentioned above, accounting information must also cross the threshold of materiality. If the information is not regarded as material, it should not be included within the reports as it will merely clutter them up and, perhaps, interfere with the users’ ability to interpret the ? nancial results. The type of information and amounts involved will normally determine whether it is material. 8 CHAPTER 1 INTRODUCTION TO ACCOUNTING Weighing up the costs and benefits Having read the previous sections you may feel that, when considering a piece of accounting information, provided the four main qualities identi? ed are present and it is material it should be gathered and made available to users. Unfortunately, there is one more hurdle to jump. Something may still exclude a piece of accounting infor mation from the reports even when it is considered to be useful. Consider Activity 1. 6. Activity 1. 6 Suppose an item of information is capable of being provided. It is relevant o a particular decision; it is also reliable, comparable, can be understood by the decision maker concerned and is material. Can you think of a reason why, in practice, you might choose not to produce the information? The reason that you may decide not to produce, or discover, the information is that you judge the cost of doing so to be greater than the potential benefit of having the information. This cost–benefit issue will limit the extent to which accounting information is provided. In theory, a particular item of accounting information should only be produced if the costs of providing it are less than the bene? s, or value, to be derived from its use. Figure 1. 2 shows the relationship between the costs and value of providing additional accounting information. Figure 1. 2 Relationship between co sts and the value of providing additional accounting information The benefits of accounting information eventually decline. The cost of providing information, however, will rise with each additional piece of information. The optimal level of information provision is where the gap between the value of the information and the cost of providing it is at its greatest. WEIGHING UP THE COSTS AND BENEFITS The ? ure shows how the value of information received by the decision maker eventually begins to decline. This is, perhaps, because additional information becomes less relevant, or because of the problems that a decision maker may have in processing the sheer quantity of information provided. The costs of providing the information, however, will increase with each additional piece of information. The broken line indicates the point at which the gap between the value of information and the cost of providing that information is at its greatest. This represents the optimal amount of informat ion that can be provided.This theoretical model, however, poses a number of problems in practice. We shall now go on to discuss these. To illustrate the practical problems of establishing the value of information, let us assume that someone has collided with our car in a car park and dented and scraped the paint from one of the doors. We wish to have the dent taken out and the door resprayed at a local garage. We know that the nearest garage would charge ? 250 but believe that other local garages may offer to do the job for a lower price. The only way of ? nding out the prices at other garages is to visit them, so that they can see the extent of the damage.Visiting the garages will involve using some petrol and will take up some of our time. Is it worth the cost of ? nding out the price for the job at the various local garages? The answer, as we have seen, is that if the cost of discovering the price is less than the potential bene? t, it is worth having that information. To identif y the various prices for the job, there are several points to be considered, including: ? How many garages shall we visit? ? What is the cost of petrol to visit each garage? ? How long will it take to make all the garage visits? ? At what price do we value our time? The economic bene? of having the information on the price of the job is probably even harder to assess. The following points need to be considered: ? What is the cheapest price that we might be quoted for the job? ? How likely is it that we shall be quoted a price cheaper than ? 250? As we can imagine, the answers to these questions may be far from clear – remember that we have only contacted the local garage so far. When assessing the value of accounting information we are confronted with similar problems. The provision of accounting information can be very costly; however, the costs are often dif? cult to quantify.The direct, out-of-pocket, costs such as salaries of accounting staff are not really a problem to i dentify, but these are only part of the total costs involved. There are also less direct costs such as the cost of the user’s time spent on analysing and interpreting the information contained in reports. The economic bene? t of having accounting information is even harder to assess. It is possible to apply some ‘science’ to the problem of weighing the costs and bene? ts, but a lot of subjective judgement is likely to be involved. No one would seriously advocate that the typical business should produce no accounting information.At the same time, no one would advocate that every item of information that could be seen as possessing one or more of the key characteristics should be produced, irrespective of the cost of producing it. The characteristics that in? uence the usefulness of accounting information and which have been discussed in this section and the preceding section are set out in Figure 1. 3. 9 10 CHAPTER 1 INTRODUCTION TO ACCOUNTING Figure 1. 3 The char acteristics that influence the usefulness of accounting information There are four main qualitative characteristics that influence the usefulness of accounting information.In addition, however, accounting information should be material and the benefits of providing the information should outweigh the costs. Accounting as an information system ? We have already seen that accounting can be seen as the provision of a service to ‘clients’. Another way of viewing accounting is as a part of the business’s total information system. Users, both inside and outside the business, have to make decisions concerning the allocation of scarce economic resources. To ensure that these resources are ef? ciently allocated, users need economic information on which to base decisions.It is the role of the accounting system to provide that information and this will involve information gathering and communication. The accounting information system should have certain features that are co mmon to all valid information systems within a business. These are: ? identifying and capturing relevant information (in this case ? nancial information); ? recording the information collected in a systematic manner; ? analysing and interpreting the information collected; ? reporting the information in a manner that suits the needs of users. The relationship between these features is set out in Figure 1. . ACCOUNTING AS AN INFORMATION SYSTEM Figure 1. 4 The accounting information system There are four sequential stages of an accounting information system. The first two stages are concerned with preparation, whereas the last two stages are concerned with using the information collected. Given the decision-making emphasis of this book, we shall be concerned primarily with the ? nal two elements of the process: the analysis and reporting of accounting information. We shall consider the way in which information is used by, and is useful to, users rather than the way in which it is ident i? ed and recorded. Ef? ient accounting systems are an essential ingredient of an ef? cient business. When the accounting systems fail, the results can be disastrous. Real World 1. 1 provides an example of a systems failure when two businesses combined and then attempted to integrate their respective systems. Real World 1. 1 Blaming the system FT When Sir Ken Morrison bought Safeway for ? 3. 35bn in March 2004, he almost doubled the size of his supermarket chain overnight and went from being a regional operator to a national force. His plan was simple enough. He had to sell off some Safeway stores – Morrison has to date sold off 184 stores for an estimated ? . 3bn – and convert the remaining 230 Safeway stores into Morrison’s. Sir Ken has about another 50 to sell. But, nearly fifteen months on, and the integration process is proving harder in practice than it looked on paper. Morrison, once known for its robust performance, has issued four profit warnings in the past ten months. Each time the retailer has blamed Safeway. Last July, it was because of a faster-thanexpected sales decline in Safeway stores. In March – there were two warnings that month – it was the fault of Safeway’s accounting systems, which left Morrison with lower supplier incomes.This month’s warning was put down to higher-than-expected costs from running parallel store systems. At the time of the first warning last July, Simon Procter, of the stockbrokers Charles Stanley, noted that the news ‘has blown all profit forecasts out of the water and visibility is very poor from here on out’. But if it was difficult then to predict where Morrison’s profits were heading, it is impossible now. Morrison itself cannot give guidance. ‘No one envisaged this,’ says Mr Procter. ‘When I made that comment about visibility last July, I was thinking on a twelve-month time frame, not a two-year one. Morrison says the complexi ty of the Safeway deal has put a ‘significant strain’ on its ability to cope with managing internal accounts. ‘This is impacting the ability of the board to forecast likely trends in profitability and the directors are therefore not currently in a position to provide reliable guidance on the level of profitability as a whole,’ admits the retailer. Source: ‘Morrison in uphill battle to integrate Safeway’, Elizabeth Rigby, Financial Times, 26 May 2005. As a footnote to Real World 1. 1, though Morrison had its problems, these were quickly overcome and the Safeway takeover has proved to be a success. 1 12 CHAPTER 1 INTRODUCTION TO ACCOUNTING Management accounting and financial accounting Accounting is usually seen as having two distinct strands. These are: ? ? ? management accounting, which seeks to meet the accounting needs of managers; and ? financial accounting, which seeks to meet the accounting needs of all of the other users identi? ed earlie r in the chapter (see Figure 1. 1). The difference in their targeted user groups has led to each strand of accounting developing along different lines. The main areas of difference are as follows. ? Nature of the reports produced.Financial accounting reports tend to be general- ? ? ? ? ? purpose, that is, they contain ? nancial information that will be useful for a broad range of users and decisions rather than being speci? cally designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, are often speci? c-purpose reports. They are designed with a particular decision in mind and/or for a particular manager. Level of detail. Financial accounting reports provide users with a broad overview of the performance and position of the business for a period.As a result, information is aggregated and detail is often lost. Management accounting reports, however, often provide managers with considerable detail to help them with a particula r operational decision. Regulations. Financial accounting reports, for many businesses, are subject to accounting regulations that try to ensure they are produced with standard content and in a standard format. The law and accounting rule makers impose these regulations. As management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports.They can be designed to meet the needs of particular managers. Reporting interval. For most businesses, ? nancial accounting reports are produced on an annual basis, though some large businesses produce half-yearly reports and a few produce quarterly ones. Management accounting reports may be produced as frequently as required by managers. In many businesses, managers are provided with certain reports on a daily, weekly or monthly basis, which allows them to check progress frequently. In addition, special-purpose reports will be prepared when required (for example, to evaluate a proposal to purchase a piece of equipment).Time orientation. Financial accounting reports re? ect the performance and position of the business for the past period. In essence, they are backward looking. Management accounting reports, on the other hand, often provide information concerning future performance as well as past performance. It is an oversimpli? cation, however, to suggest that ? nancial accounting reports never incorporate expectations concerning the future. Occasionally, businesses will release projected information to other users in an attempt to raise capital or to ? ght off unwanted takeover bids. Even preparation of the routine ? ancial accounting reports typically requires making some judgements about the future, as we shall see in Chapter 3. Range and quality of information. Financial accounting reports concentrate on information that can be quanti? ed in monetary terms. Management accounting also produces such reports, but is also more likely to pr oduce reports that contain information of a non-? nancial nature, such as physical volume of inventories, number of sales orders received, number of new products launched, physical output per employee and so on. Financial accounting places greater emphasis on the use of objective, veri? ble evidence when preparing reports. Management accounting reports may use information that is less objective and veri? able, but nevertheless provide managers with the information they need. SCOPE OF THIS BOOK We can see from this that management accounting is less constrained than ? nancial accounting. It may draw from a variety of sources and use information that has varying degrees of reliability. The only real test to be applied when assessing the value of the information produced for managers is whether or not it improves the quality of the decisions made.The distinctions between management and ? nancial accounting suggest that there are differences between the information needs of managers and those of other users. While differences undoubtedly exist, there is also a good deal of overlap between these needs. Activity 1. 7 Can you think of any areas of overlap between the information needs of managers and those of other users? We thought of two points: ? ? Managers will, at times, be interested in receiving a historical overview of business operations of the sort provided to other users.Other users would be interested in receiving information relating to the future, such as the planned level of profits and non-financial information such as the state of the sales order book and the extent of product innovations. The distinction between the two areas of accounting re? ects, to some extent, the differences in access to ? nancial information. Managers have much more control over the form and content of information they receive. Other users have to rely on what managers are prepared to provide or what the ? nancial reporting regulations require to be provided. Though the scope of ? ancial accounting reports has increased over time, fears concerning loss of competitive advantage and user ignorance concerning the reliability of forecast data have led businesses to resist providing other users with the same detailed and wide-ranging information available to managers. In the past, it has been argued that accounting systems are far too geared to meeting the regulatory requirements of ? nancial accounting to be able to provide the information most helpful to managers. This is to say that ? nancial accounting requirements have been the main priority and management accounting has suffered as a result.Recent survey evidence suggests, however, that this argument has lost its force. Modern management accounting systems tend to provide managers with information that is relevant to their needs rather than what is determined by external reporting requirements. Financial reporting cycles, however, retain some in? uence over management accounting and managers are aware of expectations of external users (see the reference at the end of the chapter). Scope of this book This book is concerned with ? nancial accounting rather than management accounting. In Chapter 2 we begin by introducing the three principal ? ancial statements: ? the statement of ? nancial position (sometimes known as the balance sheet); ? the income statement (also called the pro? t and loss account); and ? the statement of cash ? ows. 13 14 CHAPTER 1 ? INTRODUCTION TO ACCOUNTING These statements are brie? y reviewed before we go on to consider the statement of ? nancial position in more detail. We shall see that the statement of ? nancial position provides information concerning the wealth held by a business at a particular point in time and the claims against this wealth. Included in our consideration of the statement of ? ancial position will be an introduction to the conventions of accounting. Conventions are the generally accepted rules that accountants tend to follow when pre paring ? nancial statements. Chapter 3 introduces the second of the major ? nancial statements, the income statement. This provides information concerning the wealth created by a business during a period. In this chapter we shall be looking at such issues as how pro? t is measured, the point in time at which we recognise that a pro? t has been made and the accounting conventions that apply to this particular statement.In the UK and throughout much of the industrialised world, the limited company is the major form of business unit. In Chapter 4 we consider the accounting aspects of limited companies. Although there is nothing of essence that makes the accounting aspects of companies different from other types of private-sector business, there are some points of detail that we need to consider. In Chapter 5 we continue our examination of limited companies and, in particular, consider the framework of rules that must be adhered to when presenting accounting reports to owners and extern al users.Chapter 6 deals with the last of the three principal ? nancial statements, the statement of cash ? ows. This ? nancial statement is important in identifying the ? nancing and investing activities of the business over a period. It sets out how cash was generated and how cash was used during a period. Reading the three statements will provide information about the performance and position of a business. It is possible, however, to gain even more helpful insights about the business by analysing the statements using ? nancial ratios and other techniques. Combining two ? ures in the ? nancial statements in a ratio and comparing this with a similar ratio for, say, another business, can often tell us much more than just reading the ? gures themselves. Chapters 7 and 8 are concerned with techniques for analysing ? nancial statements. The typical large business in the UK is a group of companies rather than just a single company. A group of companies will exist where one company cont rols one or more other companies. In Chapter 9 we shall see why groups exist and consider the accounting issues raised by the combination of companies into groups.The scope of ? nancial reporting has tended to alter over the years. In Chapter 10 we shall consider where ? nancial reporting has come from and how it seems to be developing. Finally, in Chapter 11, we shall consider the way in which larger businesses are managed and how directors and other senior managers are accountable to the owners and to other groups with an interest in the business. Has accounting become too interesting? In recent years, accounting has become front-page news and has been a major talking point among those connected with the world of business.Unfortunately, the attention that accounting has attracted has been for all the wrong reasons. We have seen that investors rely on ? nancial reports to help to keep an eye both on their investment and on the performance of the managers. What, though, if the manag ers provide misleading ? nancial reports to investors? Recent revelations suggest that the managers of some large businesses have been doing just this. HAS ACCOUNTING BECOME TOO INTERESTING? Two of the most notorious cases have been those of: ? Enron, an energy-trading business based in Texas, which was accused of entering into complicated ? ancial arrangements in an attempt to obscure losses and to in? ate pro? ts; and ? WorldCom, a major long-distance telephone operator in the US, which was accused of reclassifying $3. 9 billion of expenses so as to falsely in? ate the pro? t ? gures that the business reported to its owners (shareholders) and to others. In the wake of these scandals, there was much closer scrutiny by investment analysts and investors of the ? nancial reports that businesses produce. This led to further businesses, in both the US and Europe, being accused of using dubious accounting practices to bolster reported pro? ts.Accounting scandals can have a profound effec t on all those connected with the business. The Enron scandal, for example, ultimately led to the collapse of the company, which, in turn, resulted in lost jobs and large ? nancial losses for lenders, suppliers and investors. Con? dence in the world of business can be badly shaken by such events and this can pose problems for society as a whole. Not surprisingly, therefore, the relevant authorities tend to be severe on those who perpetrate such scandals. In the US, Bernie Ebbers, the former chief executive of WorldCom, received 25 years in prison for his part in the fraud.Various reasons have been put forward to explain this spate of scandals. Some may have been caused by the pressures on managers to meet unrealistic expectations of investors for continually rising pro? ts, others by the greed of unscrupulous executives whose pay is linked to ? nancial performance. However, they may all re? ect a particular economic environment. Real World 1. 2 gives some comments suggesting that wh en all appears to be going well with a business, people can be quite gullible and over-trusting. Real World 1. 2 The thoughts of Warren BuffettWarren Buffett is one of the world’s shrewdest and most successful investors. He believes that the accounting scandals mentioned above were perpetrated during the ‘new economy boom’ of the late 1990s when confidence was high and exaggerated predictions were being made concerning the future. He states that during that period You had an erosion of accounting standards. You had an erosion, to some extent, of executive behaviour. But during a period when everybody ‘believes’, people who are inclined to take advantage of other people can get away with a lot.He believes that the worst is now over and that the ‘dirty laundry’ created during this heady period is being washed away and that the washing machine is now in the ‘rinse cycle’. Source: The Times, Business Section, 26 September 2002, p. 25. nisyndication. com. Whatever the causes, the result of these accounting scandals has been to undermine the credibility of ? nancial statements and to introduce much stricter regulations concerning the quality of ? nancial information. We shall return to this issue in later chapters when we consider the ? nancial statements. 15 16 CHAPTER 1INTRODUCTION TO ACCOUNTING The changing face of accounting Over the past 25 years, the environment within which businesses operate has become increasingly turbulent and competitive. Various reasons have been identi? ed to explain these changes, including: ? the increasing sophistication of customers; ? the development of a global economy where national frontiers become less important; ? rapid changes in technology; ? the deregulation of domestic markets (for example, electricity, water and gas); ? increasing pressure from owners (shareholders) for competitive economic returns; ? he increasing volatility of ? nancial markets. This new, more c omplex, environment has brought new challenges for managers and other users of accounting information. Their needs have changed and both ? nancial accounting and management accounting have had to respond. To meet the changing needs of users there has been a radical review of the kind of information to be reported. The changing business environment has given added impetus to the search for a clear framework and principles upon which to base ? nancial accounting reports. Various attempts have been made to clarify the purpose of ? ancial accounting reports and to provide a more solid foundation for the development of accounting rules. The frameworks and principles that have been developed try to address fundamental questions such as: ? Who are the users of ? nancial accounting information? ? What kinds of ? nancial accounting reports should be prepared and what should they contain? ? How should items (such as pro? t and asset values) be measured? In response to criticisms that the ? na ncial reports of some businesses are not clear enough to users, accounting rule makers have tried to improve reporting rules to ensure that the accounting policies of businesses are ore comparable and more transparent, and that they portray economic reality more faithfully. While this has had a generally bene? cial effect, the recent accounting scandals have highlighted the limitations of accounting rules in protecting investors and others. The internationalisation of businesses has created a need for accounting rules to have an international reach. It can no longer be assumed that users of accounting information relating to a particular business are based in the country in which the business operates or are familiar with the accounting rules of that country.Thus, there has been increasing harmonisation of accounting rules across national frontiers. A more detailed review of these developments is included in Chapter 5. Management accounting has also changed by becoming more outward looking in its focus. In the past, information provided to managers has been largely restricted to that collected within the business. However, the attitude and behaviour of customers and rival businesses have now become the object of much information gathering. Increasingly, successful businesses are those that are able to secure and maintain competitive advantage over their rivals.To obtain this advantage, businesses have become more ‘customer driven’ (that is, concerned with satisfying customer needs). This has led to management accounting information that provides details of customers and the market, such as customer evaluation of services provided and market share. In addition, information about the costs and pro? ts of rival businesses, which can be used as ‘benchmarks’ by which to gauge competitiveness, is gathered and reported. WHAT KINDS OF BUSINESS OWNERSHIP EXIST? To compete successfully, businesses must also ? d ways of managing costs. The cost base of modern businesses is under continual review and this, in turn, has led to the development of more sophisticated methods of measuring and controlling costs. What kinds of business ownership exist? The particular form of business ownership has important implications for accounting purposes and so it is useful to be clear about the main forms of ownership that can arise. There are basically three arrangements: ? sole proprietorship; ? partnership; and ? limited company. Each of these is considered below. Sole proprietorship ?Sole proprietorship, as the name suggests, is where an individual is the sole owner of a business. This type of business is often quite small in terms of size (as measured, for example, by sales revenue generated or number of staff employed); however, the number of such businesses is very large indeed. Examples of sole-proprietor businesses can be found in most industrial sectors but particularly within the service sector. Hence, services such as electrical repairs, picture framing, photography, driving instruction, retail shops and hotels have a large proportion of sole-proprietor businesses.The sole-proprietor business is easy to set up. No formal procedures are required and operations can often commence immediately (unless special permission is required because of the nature of the trade or service, such as running licensed premises). The owner can decide the way in which the business is to be conducted and has the ? exibility to restructure or dissolve the business whenever it suits. The law does not recognise the sole-proprietor business as being separate from the owner, so the business will cease on the death of the owner.Although the owner must produce accounting information to satisfy the taxation authorities, there is no legal requirement to produce accounting information relating to the business for other user groups. However, some user groups may demand accounting information about the business and may be in a position to h ave their demands met (for example, a bank requiring accounting information on a regular basis as a condition of a loan). The sole proprietor will have unlimited liability which means that no distinction will be made between the proprietor’s personal wealth and that of the business if there are business debts that must be paid.Partnership ? A partnership exists where at least two individuals carry on a business together with the intention of making a pro? t. Partnerships have much in common with sole-proprietor businesses. They are usually quite small in size (although some, such as partnerships of accountants and solicitors, can be large). Partnerships are also easy to set up as no formal procedures are required (and it is not even necessary to have a written agreement between the partners). The partners can agree whatever arrangements suit them concerning the ? nancial and management aspects of the business.Similarly, the partnership can be restructured or dissolved by agre ement between the partners. 17 18 CHAPTER 1 INTRODUCTION TO ACCOUNTING Partnerships are not recognised in law as separate entities and so contracts with third parties must be entered into in the name of individual partners. The partners of a business usually have unlimited liability. Activity 1. 8 What are the main advantages and disadvantages that should be considered when deciding between a sole proprietorship and a partnership? The main advantages of a partnership over a sole-proprietor business are: ? ? ? sharing the burden of ownership; he opportunity to specialise rather than cover the whole range of services (for example, in a solicitors’ practice each partner may specialise in a different aspect of the law); the ability to raise capital where this is beyond the capacity of a single individual. The main disadvantages of a partnership compared with a sole proprietorship are: ? ? the risks of sharing ownership of a business with unsuitable individuals; the limits placed on individual decision making that a partnership will impose. Limited company ? Limited companies can range in size from quite small to very large.The number of individuals who subscribe capital and become the owners may be unlimited, which provides the opportunity to create a very large-scale business. The liability of owners, however, is limited (hence ‘limited’ company), which means that those individuals subscribing capital to the company are liable only for debts incurred by the company up to the amount that they have agreed to invest. This cap on the liability of the owners is designed to limit risk and to produce greater con? dence to invest. Without such limits on owner liability, it is dif? cult to see how a modern capitalist economy could operate.In many cases, the owners of a limited company are not involved in the day-to-day running of the business and will, therefore, invest in a business only if there is a clear limit set on the level of investment risk. T he bene? t of limited liability, however, imposes certain obligations on such companies. To start up a limited company, documents of incorporation must be prepared that set out, among other things, the objectives of the business. Furthermore, a framework of regulations exists that places obligations on limited companies concerning the way in which they conduct their affairs. Part of this regulatory framework requires annual ? ancial reports to be made available to owners and lenders and usually an annual general meeting of the owners has to be held to approve the reports. In addition, a copy of the annual ? nancial reports must be lodged with the Registrar of Companies for public inspection. In this way, the ? nancial affairs of a limited company enter the public domain. With the exception of small companies, there is also a requirement for the annual ? nancial reports to be subject to an audit. This involves an independent ? rm of accountants examining the annual reports and underl ying records to see whether the reports provide a true and fair view of the ? ancial health of the company and whether they comply with the relevant accounting rules established by law and by accounting rule makers. All of the large household-name UK businesses (Marks and Spencer, Tesco, Shell, BSkyB, BA, BT, easyJet and so on) are limited companies. Limited companies are considered in more detail in Chapters 4 and 5. HOW ARE BUSINESSES ORGANISED? Activity 1. 9 What are the main advantages and disadvantages that should be considered when deciding between a partnership business and a limited liability company?The main advantages of a partnership over a limited company are: ? ? ? ? the ease of setting up the business; the degree of flexibility concerning the way in which the business is conducted; the degree of flexibility concerning restructuring and dissolution of the business; freedom from administrative burdens imposed by law (for example, the annual general meeting and the need f or an independent audit). The main disadvantage of a partnership compared with a limited company is the fact that it is not possible to limit the liability of all of the partners.This book concentrates on the accounting aspects of limited liability companies because this type of business is by far the most important in economic terms. The early chapters will introduce accounting concepts through examples that do not draw a distinction between the different types of business. Once we have dealt with the basic accounting principles, which are the same for all three types of business, we can then go on to see how they are applied to limited companies. It must be emphasised that there are no differences in the way that these three forms of business keep their day-to-day accounting records.In preparing their periodic ? nancial statements, there are certain differences that need to be considered. These differences are not ones of principle, however, but of detail. How are businesses organ ised? As we have just seen, nearly all businesses that involve more than a few owners and/or employees are set up as limited companies. This means that the ? nance will come from the owners (shareholders) both in the form of a direct cash investment to buy shares (in the ownership of the business) and through the owners allowing past pro? s, which belong to them, to be reinvested in the business. Finance will also come from lenders (banks, for example), who earn interest on their loans and from suppliers of goods and services being prepared to supply on credit, with payment occurring a month or so after the date of supply, usually on an interest-free basis. In larger limited companies, the owners (shareholders) are not involved in the daily running of the business; instead they appoint a board of directors to manage the business on their behalf. The board is charged with three major tasks: ? etting the overall direction and strategy for the business; ? monitoring and controlling its activities; and ? communicating with owners and others connected with the business. Each board has a chairman, elected by the directors, who is responsible for running the board in an ef? cient manner. In addition, each board has a chief executive of? cer (CEO), or managing director, who is responsible for running the business on a dayto-day basis. Occasionally, the roles of chairman and CEO are combined, although it is usually considered to be a good idea to eparate them in order to prevent a single individual having excessive power. We shall come back to consider the relationship between directors and shareholders in more detail in Chapter 4. 19 20 CHAPTER 1 INTRODUCTION TO ACCOUNTING The board of directors represents the most senior level of management. Below this level, managers are employed, with each manager given responsibility for a particular part of the business’s operations. What is the financial objective of a business? A business is created to enhance the wealth of its owners.Throughout this book we shall assume that this is its main objective. This may come as a surprise, as there are other objectives that a business may pursue that are related to the needs of others associated with the business. For example, a business may seek to provide good working conditions for its employees, or it may seek to conserve the environment for the local community. While a business may pursue these objectives, it is normally set up with a view to increasing the wealth of its owners. In practice, the behaviour of businesses over time appears to be consistent with this objective.Real World 1. 3 reveals how one well-known business has changed its focus in order to improve pro? tability. Real World 1. 3 Profiting from change It speaks volumes for the work done by Kate Swann in turning around W H Smith that when she became chief executive five years ago, the company was being spoken of in similar tems to Woolworths. Comments such as ‘You wouldn’t invent it if you were starting out today’ and ‘What is it actually for these days? ’ were typical among analysts, as they were with Woolies.Indeed, many thought that W H Smith was beyond help and argued that the supermarkets were eating away at sales. Ms Swann has defied the sceptics, achieving an impressive turnaround. The company’s magazine and newspaper distribution division was hived off as a separate entity and new outlets were opened at airports and railway stations – so much so that sales by W H Smith’s travel unit now threaten to overtake those of its traditional high street stores. Lower-[profit-]margin lines, such as CDs and DVDs, have been cleared from the shelves to make way for higher-margin items, such as stationery.The last plank of the strategy was in evidence again in yesterday’s update, in which Ms Swann reported that sales in the nine weeks to January 17 were down by 7 per cent in the high street stores and by 2 per cent in the travel stores, partly because W H Smith is continuing to reduce its exposure to the entertainment category. That was the bad news. The good news was that, although sales overall were down, the reduced focus on entertainment was good for profits. W H Smith made an extra 2p of profit in every ? 1 of sales, compared with the same period a year earlier, a stunning achievement given the deflation hitting the high street.Source: ‘Business big shot’, Ian King, The Times, 27 January 2009, p. 39. nisyndication. com. Within a market economy there are strong competitive forces at work that ensure that failure to enhance owners’ wealth will not be tolerated for long. Competition for the funds provided by the owners and competition for managers’ jobs will normally mean that the owners’ interests will prevail. If the managers do not provide the expected increase in ownership wealth, the owners have the power to replace the existing management team wit h a new team that is more responsive to owners’ needs. WHAT IS THE FINANCIAL OBJECTIVE OF A BUSINESS?Does this mean that the needs of other groups associated with the business (employees, customers, suppliers, the community and so on) are not really important? The answer to this question is certainly no, if the business wishes to survive and prosper over the longer term. Satisfying the needs of other groups will normally be consistent with increasing the wealth of the owners over the longer term. The importance of customers to a business cannot be overstated. Dissatis? ed customers will take their business to another supplier and this will, in turn, lead to a loss of wealth for the owners of the business losing the customers.Real World 1. 4 provides an illustration of the way in which one business acknowledges the link between customer satisfaction and creating wealth for its owners. Real World 1. 4 Checking out Sainsbury’s objectives J Sainsbury plc is a leading food retailer that recognises the importance of customers to increasing the wealth of the owners (shareholders) as follows: Our objective is to serve customers well and thereby provide shareholders with good, sustainable financial returns. Source: Investor FAQs, www. j-sainsbury. co. uk, 8 January 2009, p. 1. A dissatis? d workforce may result in low productivity, strikes and so forth, which will in turn have an adverse effect on owners’ wealth. Similarly, a business that upsets the local community by unacceptable behaviour, such as polluting the environment, may attract bad publicity, resulting in a loss of customers and heavy ? nes. Real World 1. 5 provides an example of how two businesses responded to potentially damaging allegations. Real World 1. 5 The price of clothes FT US clothing and sportswear manufacturers Gap and Nike have many of their clothes produced in Asia where labour tends to be cheap.However, some of the contractors that produce clothes on behalf of the two com panies have been accused of unacceptable practices. Campaigners visited the factories and came up with damaging allegations. The factories were employing minors, they said, and managers were harassing female employees. Nike and Gap reacted by allowing independent inspectors into the factories. They promised to ensure their contractors obeyed minimum standards of employment. Earlier this year, Nike took the extraordinary step of publishing the names and addresses of all its contractors’ factories on the internet.The company said it could not be sure all the abuse had stopped. It said that if campaigners visited its contractors’ factories and found examples of continued malpractice, it would take action. Nike and Gap said the approach made business sense. They needed society’s approval if they were to prosper. Nike said it was concerned about the reaction of potential US recruits to the campaigners’ allegations. They would not want to work for a company tha t was constantly in the news because of the allegedly cruel treatment of those who made its products. Source: ‘Fair shares? , Michael Skapinker, Financial Times, 11 June 2005. 21 22 CHAPTER 1 INTRODUCTION TO ACCOUNTING It is important to recognise that generating wealth for the owners is not the same as seeking to maximise the current year’s pro? t. Wealth creation is a longer-term concept, which relates not only to this year’s pro? t but to that of future years as well. In the short term, corners can be cut and risks taken that improve current pro? t at the expense of future pro? t. Real World 1. 6 gives some examples of how emphasis on short-term pro? t can be damaging. Real World 1. 6 Short-term gains, long-term problemsFT Human beings are bad at learning and changing. It takes a good crisis to drive home what may have been staring us in the face. So what in particular are the lessons for all those concerned with saving, investment, borrowing and lending? For many years, under the guise of defending capitalism, we have been allowing ourselves to degrade it. We have been poisoning the well from which we have drawn wealth. We have misunderstood the importance of values to capitalism. We have surrendered to the idea that success is pursued by making as much money as the law allowed without regard to how it was made.Thirty years ago, retailers would b