Sunday, January 26, 2020

Biological Basis of Learning, Memory and Motivation

Biological Basis of Learning, Memory and Motivation Human beings are animal. In this world there are lots of animals but human have some special qualities that are why we are the most complex social structure on earth. We live in society there are included family, tribes, clans, nations. We have an incredibly sophisticated method of interacting speech. We can communicate over time and distance through printing and broadcasting. We have longest memories. We have an interaction which is most intricate; we have perception which is show the world simultaneously the broadest and most detailed. The combination of our biology and society is making as what we are and what we do. Any kind of responses are stimuli by our biology guides, which is based on thousands of generations of ancestors surviving because of their responses. On the other hand, our social structures dictate restriction on and alterations in how we carry out our biological responses. As a human being not only I and also all of us have some basic biological work done such as- learning, memory, motivation, emotion, perception, etc. Those biological works helps us to live perfectly in our society. That’s why it’s very much important to know how biological organs are control our major skills, movement and behavior. In this assignment I discuss the major parts of biological basis of our learning, memory and motivation which is contributes our behaviors. Biological Basis of Learning:- We know that learning is a process of relatively permanent changes in behavior brought about by experience. Its means that any type of behavior can changes by using learning. Learning is a long term process. All learning process are not show instantly, sometimes it shows long time later. But learning process can run from birth to death. All biological activities are run by the command of brain which is the basic part of our body. In the brain there are some specific parts of specific organs those are drive our basis activities. Learning process is the same activate which is control by brain. Brain has three major organization those are – fore brain, mid brain, hind brain. In fore brain there is an important part is cerebrum which is valuable organ in our body. Cerebrum has some fixed function such as:- Sensory area: it’s control somato sensory area, visual area, auditory area those are very important for learning process. Because learning are related this three parts. If one part are not support properly then learning process are back. Visual area is located back side of this area. Auditory area is located lower side of cerebrum. Most valuable part of this area is visual and auditory because learning is more depend these two parts. Association area: association is a very important works for cerebrum that is association other complex work. This area are control our learning, thoughts, memory, etc. Learning related area: this area contact the stimulus-stimulus association and stimulus-reactions associations for the brain cover. Others creative work has done this area such as inventive learning, thoughts, work, abstract imagine etc have done this part. Thalamus: the part of the brain located in the middle of the central core that acts primarily to relay information about the senses. Especially the eye, ear and skin collected information and carry to brain who distribute those different parts of the body. That’s why learning process are damage if thalamus has damages. Mid Brain: it has tactum who involved our auditory and sensory process. In those processes are important for our learning system. Cerebellum: it is found just above the medulla and behind the Pons. It is control our bodily balances. So that if this system are flailed then our speech, writing process are hampered. All thought our learning process are also hampered. Limbic system: This system is also included our learning. Neurotransmitters: this is most important part of learning because it conveys messages across the synapse to the dendrite (sometimes the cell body) of a receiver neuron. So that if it works will fail then the process of learning will also fail. Biological Basis of Memory:- We know that memory is the process by which we encode, store and retrieve information. This process can explain imagine the keyboard of a computer is a encoding (initial recording of information), then the cpu of computer is a storage (information saved for future use) and the monitor of computer is the retrieval (recovery of stored information). Usually memory can explain this short way memory = learning – forgetting. So we say that memory is also run by our biological basis help. Brain is the main tool which provides information. In brain there is a fixed part of memory. Now I describe those:- Hippocampus: This part helps to storage any information in brain. That’s why it is closely involved to memory. If this part may be destroy then the memory is also destroy. Amygdale: It’s a part of limbic system, also plays a role in memory. The amygdale especially involved with memories involving emotion. Frontal lobe: This area is included motor area and Boca’s area which is involved to storage memory. Temporal lobe: This area is involved primary auditory area, wernicke’s area, auditory association area which is strongly related to memory. Occipital lobe: This area is involved are visual area and visual association area. We know that anything cans easily memories when we see it. So this part is an important to memory. Sensory area: This area is overall related the memory process. Association area: One of the major regions of the cerebral cortex. This side is produce higher mental process such as thought, language, memory and speech. Biological Basis of Motivation:- Motivation the factors that and energize the behavior of humans and other organizations. Motivation is also internal state or condition to our thoughts, feelings and actions. Basically motivation can crate many regions such as food, money, living good, social standers and etc. But when a human suffer a motive that time his/her body create some biological activities that’s why they needs motivation. So the reasons for biological basis of motivation are- Hypothalamus: This is a small part of brain which is strongly involved to motivation. Amygdale: This is also change the level of motivation. If it can be surgery then the behavior can changes. Frontal lobe: This is also involved motivation of human behavior. Limbic system: Memory is also control by limbic system. It is situated under the cerebral cortex . Temporal lobe: Temporal lobe is also involved to control motivation. All the dictation of those three basic part of human behavior on the basis of biologically it clearly come that any kind of behaviors are fully depends of our internal process which is called biological process. So it is very important to know the main function of our biological organs. The learning, motivation and memory are our basic demand so it is necessary to know which organs is participation on those processes. If we have a rich knowledge about those processes then we can develop our self. References: Feldman Understanding Psychology 8th edition; McGraw-Hill. Psychology – Abu Bokar Siddeky 9th edition; Sahitokos, Dhaka. Psychology An Introduction – Lahey 9th edition Submitted by: Mir Sara Mehzabeen Ahmed; SL- 16; DECP-4 . Biological Basis of Learning, Memory and Motivation Biological Basis of Learning, Memory and Motivation Azharul Islam Introduction Psychologists have to gather specialized knowledge in considering the ways in which the biological structure and functions of the body affect behaviour. The biological processes are the essential part of human psychology. Our understanding of human behaviour cannot be complete without knowledge of the brain and others part of the nervous system. Biological factors are centrals to every sensory experience, states of consciousness, motivation and emotion, development through out the life span and physical and psychological health and wellbeing. Executive summary Biological bases influence the learning, memory, and motivation. The biological factors is very important because it is controlling our behaviour .We might not be able to understand behaviour without an understanding of our biological makeup. Objectives of the study: Basically this study aims to 1. Collect information on the situation of biological factors of our behaviour. 2. Explore ways how to improve the behavior. 3. The function of the neuron is fundamental biological aspects of the body. Findings Biological basis of learning Learning can be defined as a relatively permanent change in behaviour based on experience. Learning is the aspect of new things by using past experience. Many psychologists believe learning is based on the strengthening of the neural connections between stimuli and specific patterns of muscle movements, while others said that learning involvoves changes in cognition. The existence of biological constraints is consistent with assess mental discussion of behavior. Freshly there are making suitable by alternative benefits that promote survival for organism that rapidly learn or neglecte that certain behaviors. Such as, our ability to learning avoid touching hot surfaces increase our change in survival (barkow, and tooby 1992; terry, 2003). Neuclei areas are group of neurons forming structures with specific function. For example each of the different colour on our brain model represent and individual areas each with it own internal structure and function (Jeanette, J Norden Venderbilt university school and medicine). Telencephalon; consists of two cerebral hemispheres the outer covering of the hemespheres is called the cortex. The cortex is responsible for voluntary action or thought and for subjective experience. Mesencephalon; contain many small nuclei that are important to relexs, such as reflexs turning of the eyes toward the source of an objects or sound. Metencephalon: A structure that connect the cerebellum with the rest of the body and cerebellum that involved in learned skilled motor movement. The role of biological factors of learning has an example that discussed john and his associates. On one fateful evening, they ate eight hot dog. Two hour leter, they become more than just a little nauseated. As a result, it was many year until they ate another hot dog. This experience of learning to dislike hot dogs is an example of a learned taste aversion. (Garcia, Hankins and Rusiniak, 1974) Biological basis of memory Memory consists in remembering what has previously been learned .It would be better, however, to say that memory consists in learning, retaining and remembering what has previously been learned (psychology; Methuen and co. Ltd; London; 1964. Memory processes are distributed across the brain, relating to different information processing systems involve during the intitle exprosure to a stimulus. (Friedman and Donoghue 2000). A theory stated by Canadian researchar Donald Hebb (1949) is still considerd to provide a general model of the biological process responsible for memory (Jeffrey and Reid, 1997; Tsien, 2007). According to Hebb, each experience activates a unique pattern of neurons in the brain. This activities cause structural changes to occur in those neurons near the synaptic gaps that link them. To Hebb, these changes in the functioning of synapses in the brain, which he termed †synaptic facilition†, is the biological basis of memory. Many different brain areas play a role in memory. The cerebellum plays critical role in the timing execution of learned, skilled motor movement. Nuclei deep in the hemisphere called the basal ganglia are involves in motor programs. Many different areas of the brain contributes to attention, these include cortical areas of the reticular formation, all areas which contributes to alertness attention awareness. The hippocampus is a part of the brain limbic systems that plays a centrals role in the consolidation of memories.The hippocampus is an older cortical areas involve in multiple aspects of memory. The left hippocampus is more involve in the memory facts, epesodes and words. It is also responsibility for constructing. The right hippocampus is more involve in spatial memory.The hippocampus aims in the initial encoding of information that like akind of neurological e- mail system.(smith, 2000, wheeler, Petersen, and buckner 2000, Wilson; 2000). The results of research on the brains role in memory reveal two ways in which STM (short term memory) and LTM (long term memory). Firstly there is extensive evidence that physical changes in neural synapses are involved in LTM and but not in STM. And secondly there is evidence that different brain structures are involves in different ways in the three stage of memory. Biological basis of motivation Motivation:-motivation refers to the reasons why any behaviour occurs or specifically, to the forces or processes that initiate the behaviour, direct it , and contribute to its strength.(psychology , wadsworth publishing company; 1984; Eating behaviour is subject to homeostasis, as most people’s weight stays within a relatively stable range. The hypothalamus in the brain is central to the regulation of food intake. Acting as a kind of internal weight thermostat, the hypothalamus calls for either greater or less food intake (Capaldi, 1996; woods et al, 2000; Berthoud, 2000). Thirst is the biological process as like as drinking circuits .Drinking circuits is the association of tissue, body, and neuron with in nerve and cellus.It is associate with the hypothalamus deeply as like the other drinking circuits. (Thompson et. Al; 1980). Sex is the powerful biological motivation. The sex motivations easily understand the influence of sex hormone. It is related with the increase of age. Sex hornmone influence the body to create akind of presser for sex activies. This presser to be continued that time the sex activites is not complete. (Morgan, king. Weisz and schopler, 1993). Most of the motivation are based on the body’s need to maintain a certain level of essential elements; adequate sugar in the blood in the nourish cell , enough water in the body. This levels are regulated to homeostatic mechanism. These mechanism imbalance in the body and stimulate action that restore the proper balance. References Psychology; Methuen and co. Ltd; London; 1964 Friedman and Donoghue 2000). Smith, 2000, wheeler, Petersen, and buckner 2000, Wilson; 2000). Psychology , wadsworth publishing company; 1984; Capaldi, 1996; woods et al, 2000; Berthoud, 2000). Thompson et. Al;1980). Morgan, king. Weisz and schopler, 1993. Barkow, and Tooby 1992; terry, 2003. Garcia, Hankins and Rusiniak, 1974).

Friday, January 17, 2020

Nature of Financial Management

Chapter 3 – NATURE OF FINANCIAL MANAGEMENT What is finance Finance can be defined as he art and science of managing money. Virtually all individuals and organizations earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among individuals, business and governments. Nature of Financial Management Financial Management as an academic discipline has undergone fundamental changes as regard its scope and coverage.In the earlier years, it was treated synonymously with the raising of funds. In the later years, its broader scope, included in addition to procurement of funds, efficient use of resources. Scope of Financial Management Financial is broadly concerned with the acquisition and use of funds by a business firm. The important tasks of financial management, as related to the above, may be categorized as follows: – A. Financial Analysis, Planning and Control †¢ Analy sis of financial condition and preference †¢ Profit Planning †¢ Financial forecasting †¢ Financial Control B.Investing †¢ Management of current assets (cash, marketable securities, receivables and inventories) †¢ Capital Budgeting (identification, selection and implementation of capital projects) †¢ Managing of mergers, reorganizations and divestments C. Financing †¢ Identification of sources of finance and determination of financing mix †¢ Cultivating sources of funds and raising funds †¢ Allocation of profits between dividends and retained earnings Important Topics in Financial Management Table 1. 1 Balance Sheet and Topics in Financial Management Share CapitalEquityCapital Structure and Cost of Capital Preference Reserves and Surplus Debentures Unsecured Loan Current Liabilities & ProvisionsWorking Capital Trade CreditorsFinancing Policy Provisions Fixed Assets (Net)Capital Budgeting Gross Block Less Depreciation InvestmentSecurity Ana lysis Current Assets, Loans and Advances Cash and bank balancesCash Management ReceivablesReceivables Management InventoriesInventory Policy Loans and Advances Miscellaneous Expenditure and Losses Table 1. 2 Income statement and Topics in Financial Management Net SalesRevenue risk Cost of goods SoldMaterials and stocks Wages and Salaries Other Manufacturing Expenses Gross ProfitGross profit margin Operating Expenses Selling and Administration Expenses DepreciationDepreciation Policy Operating Profit Non operating surplus / deficit Earnings before interest and taxBusiness risk InterestFinancial risk Profit before tax TaxTax planning Profit after taxReturn on equity DividendsDividend policy Retained Earnings Goals / Objectives of Financial Management- Traditional Approach – It has been traditionally been argued that the objective of a company is to earn profit.This means that the finance manager has to make decision in a manner that the profit is maximised. Each alternative, th erefore, is to be seen as to whether or not it gives maximum profit. Profit maximization objective gives rise to a number of problems as below: – i) Profit maximization concept should be considered in relation to risks involved. There is a direct relationship between risk and profit. Many risky propositions yield high profit. Higher the risk, higher is the possibility of profits. If profit maximization is the only goal, then risk factor is altogether ignored. i) Profit maximization, as an objective does not take into account time pattern of return. Proposal A may give a higher amount of profits compared to proposal B, yet if the returns begin to flow say 10 years later, proposal B may be preferred which may have lower overall profits but the returns flow is more early and quick. iii) Profit maximization, as an objective is too narrow. It fails to take into account the social considerations as also the obligations to various interests of workers, consumers, society as well as ethical trade practices.Further, most business leaders believe that adoption of ethical standards strengthen their competitive positions. iv) Profits do not necessarily result in cash flows available to the stockholder. Owners receive cash flow in the form of either cash dividends paid to them or proceeds from selling their shares for a higher price than paid initially. Modern Approach – The alternative to profit maximization is wealth maximization. This is also known as Value maximization or Net Present Worth maximization. Value is represented by the market price of the company’s equity shares.Prices in the share market at a given point of time, are the result of many factors like general economic outlook, particular outlook if the companies under consideration, technical factors and even mass psychology. However taken on a long-term basis, the share market prices of a company’s shares do reflect the value, which the various parties put on a company. Normally, the value is a function of two factors (i) The likely rate of earnings per share of a company (EPS) and (ii) The capitalization rateEPS are calculated by dividing the periods total earnings available for the firm’s common shares by the number of shares of common shares outstanding. The likely rate of earnings per share (EPS) depends on the assessment as to how profitably a company is going to operate in the future. The capitalisation rate reflects the liking of the investors for a company. If the company earns a higher rate of earning per share through risky operations or risky financing pattern, the investors will not look upon its shares with favour. To that extent, the market value of the shares of such a company will be low.If a company invests its fund in risky ventures, the investors will put in their money if they get higher return as compared to that from a low risk share. The market value of a firm is a function of the earning per share and the capitalisation rate. S uppose the Earning per share are expected to be Rs. 7 for a share, and the capitalisation rate expected by the shareholder is 20 per cent, the market value of the share is likely to be 7 7 x 100 —— = ———- = Rs. 5 20% 20 This is so because at this price, the investors have an earning of 20%, something they expect from a company with this degree of risk. The important issues relating to maximizing share prices are Economic Value Added (EVA) and the focus on stakeholders. Economic Value Added (EVA) is a popular measure used by many firms to determine whether an investment – proposed or existing – contribute positively to the owner’s wealth. EVA is calculated by subtracting, the cost of funds used to finance or investment from its after-tax-operations profits.Investments with positive EVA increase shareholder value as those with negative EVA reduce shareholders value. For example, the EVA of an investment with after tax operation s profits of Rs. 510,000 and associated financing costs of Rs. 475,000 would be Rs. 35,000 (i. e. Rs. 410,000 – 375,000) Because this EVA is positive, the investment is expected to increase owner wealth and is therefore acceptable. What about Stakeholders? Stakeholders are group such as employees, customers, suppliers, creditors, owners and others who have a direct economic link to the firm.A firm with a stakeholder focus consciously avoids actions that would prove detrimental to stakeholders. The goal is not to maximize stakeholder well being but to preserve it. It is expected to provide long run benefit to shareholders by maintaining positive stakeholder relationships. Such relationship should minimize stakeholder turnover, conflicts and litigation. Clearly, the firm can better achieve its goal of shareholder wealth maximization by maintaining cooperation with other stakeholders rather than having conflict with them. The Role of ethics – Ethics is standards of conduc t or moral judgment.Today the business community in general and the financial community in particular are developing and enforcing ethical standards, purpose being to motivate business and market participants to adhere to both the letter and the spirit of laws and regulations concerned with business and professional practice. An effective ethics program is believed to enhance corporate value. An ethics program can reduce potential litigation and judgment costs, maintain a positive corporate image, and build shareholders confidence, and gain the loyalty, commitment and respect of the firms stakeholders.Such actions, by maintaining and enhancing cash flow and reducing perceived risk, can positively affect the firm’s share prices. Ethical behaviour is therefore viewed as necessary for achieving the firm’s goal of owner wealth maximization. Place of Finance function in the organization structure: – The finance function is almost the same in most enterprises. The det ails may differ but the important features are universal in nature. The finance function occupies such a major place that it cannot be the sole responsibility of the executive.The important aspects of the finance function have to be carried on by the top management i. e. the Managing Director and the Board of Directors. It is the Board of Directors, which makes all the material final decisions involving finance. Financial management in many ways is an integral part of the jobs of managers who are involved in planning, allocation of resources and control. The responsibilities for financial management are disposed throughout the organization. For example: †¢ The engineer, who proposes a new plant, shapes the investment policy of the firm. The marketing analyst provides inputs in the process of forecasting and planning. †¢ The purchase manager influences the level of investment in inventories. †¢ The sales manager has a say in the determination of receivable policy. â₠¬ ¢ Departmental managers, in general, are important links in the financial control system of the firm. The chief financial officer (CFO) is basically to assist the top management. He has an important role to contribute to good decision making on issues, which involve all the functional areas of the business. He must clearly bring out financial implications of all decisions and make them understood.CFO (his designation vary from company to company) works directly under the President or the Managing Director of the company. Besides routine work he keeps the Board of Directors informed about all the phases of business activity, including economic, social and political developments affecting the business behaviour. He also furnishes information about the financial status of the company by reviewing from time to time. The CFO may have different officers under him to carry out his functions. Broadly, the functions are divided into two parts. (i) Treasury function (ii) Control functionTre asury function (headed by financial manager) is commonly responsible for handling financial activities, such as financial planning and fund raising, making capital expenditures decisions, managing cash, managing credit activities, managing the pension fund and managing foreign exchange. The control function (headed by Chief Accountant / Financial Controller) typically handles the accounting activities such as corporate accounting, tax management, financial accounting and cost accounting. The treasurer’s focus tends to be more external, the controllers focus more internal: – BOARD OF DIRECTORSManaging Director/President V. P ProductionV. P FinanceV. P Sales Treasurer Controller Credit Cash Banking PortfolioCorporate Taxes Internal Budgeting Management Management Relation ManagementGeneral Audit Accounting & Cost Accounting Fig 1. 1 Organization chart of finance function Relationship of field of finance with economics – The field of finance is closely related to e conomics. Financial managers must understand the economic framework and be alert to the consequences of varying levels of economic activity and changes in economic policy.They must be able to use economic theories as guidance for efficient business operation. Examples include supply-demand analysis, profit-maximizing strategies, and price theory. The primary economic principle used in managerial function is marginal analysis, the principle that financial decisions should be made and actions taken only when the added benefits exceed the added costs. Nearly all-financial decisions ultimately come down to an assessment of their marginal benefits and marginal costs. Relationship to Accounting – The firm’s finance (treasurer) and accounting (controller) activities are closely related and generally overlap.Normally managerial finance and accounting are not often easily distinguishable. In small firms the Controller often carries out the finance function and in large firms ma ny accountants are also involved in various finance activities. There are two basic differences between finance and accounting: – i) Emphasis on cash flows: – The accountant’s primary function is to develop and report data for measuring the performance of the firm, assuming its financial position and paying taxes using certain standardized and generally accepted principles. The accountant prepares financial statements based on accrual basis.The financial manager places primary emphasis on cash flows, the inflow and outflow of cash. ii) Relating to decision-making: – Accountants devote most of their operation to the collection and presentation of financial data. The primary activities of the financial manager in addition to ongoing involvement in financial analysis and planning are making investment decisions and making financing decisions. Investment decisions determine both the mix and the type of assets held by the firm. Financing decisions determine bo th the mix and the type of financing used by the firm.However the decisions are actually made on the basis of cash flow effects on the overall value of the firm. Interface with other Functions – Finance is defined as the lifeblood of an organization. It is a common thread, which binds all the organizational functions as each function when carried out creates financial implications. The interface between finance and other functions can be described as follows: – Manufacturing Finance – i) Manufacturing function necessitates a large investment. Productive use of resources ensures a cost advantage for the firm. i) Optimum investment in inventories improves profit margin. iii) Many parameters of the production cost having effect on production cost are possible to control through internal management thus improving profits. iv) Important production decisions like make or buy can be taken only after financial implications have been considered. Marketing Finance  œ i) Many aspects of marketing management have financial implications e. g. hold inventories to provide off the shelf service to customers and thus increase sales; extension of credit facility to customers to increase sales. i) Marketing strategies to increase sales have additional cost impact, which needs to be weighed carefully against incremental revenue. Personnel Finance – In the global competitive scenario business firms are moving to leaner and flat organizations. Investments in Human Resource Development are also bound to increase. Restructuring of remuneration structure, voluntary retirement schemes, sweat equity etc. have become major financial decisions in the area of human resource management. Strategic Planning – Finance –Finance function is an important tool in the hands of management for strategic planning and control on two counts – i) The decision variables when converted into monetary terms are easier to grasp. ii) Finance function has s trong inter-linkages with other functions. Controlling other functions through finance route is possible. Methods and Tools of Financial Management – i) In the area of Financing – Funds are procured from long-term sources as well as short-term sources. Long-term funds may be made available by owners, i. e. hareholders, lenders through issue of debentures / bonds, from financial institutions, banks and public at large. Short-term funds may be procured from commercial banks, suppliers of goods, public deposits etc. The finance manager has to decide on optimum capital structure with a view to maximize shareholder’s wealth. Financial leverage or trading on equity is an important method by which return to shareholders can be increased. ii) For evaluating capital expenditure (investment) decisions, a finance manager uses various methods such as average rate of return, payback, internal rate of return, net present value and profitability index. ii) In the area of worki ng capital management there are various methods for efficient utilization of current resources at the disposal of the firm, thus increasing profitability. The centralized method of cash management is considered a better method of managing liquid resources of the firm. iv) In the area of dividend decision, a firm is faced with the problem of declaring dividend or postponing dividend declaration, a problem of internal financing. There are tools to tackle such situation. v) For the evaluation of a firm’s performance there are different methods.For example, ratio analysis is a popular technique to evaluate different aspects of a firm. vi) The main concern of the finance manager is to provide adequate funds from the best possible source, at the right time and the minimum cost and to ensure that the funds so acquired are put to best possible use through various methods / techniques are used to determine that funds have been procured from the best possible available services and the funds have been used in the best possible way: Funds flow and cash flow statements and projected financial statements help a lot in this regard.The changing role of Financial Management in India – Modern Financial Management has come a long way from the traditional corporate finance. The finance Manager is working in a challenging environment, which changes continuously. As the economy is opening up and global resources are being tapped, the opportunities available to finance manager have no limits. At the same time one must understand the risk in the decisions. Financial management is passing through an area of experimentation and excitement, as a large part of the finance activities carried out today were not heard a few years ago.A few instances are enumerated below: – i) Interest rates have been deregulated, further interest rates are fluctuating, and minimum cost of capital necessitates anticipating interest rate movements. ii) Rupee has become freely convertible in current account. iii) Optimum debt equity mix is possible. The firms have to take advantage of the financial leverage to increase the shareholders wealth. However financial leverage entails financial risk. Hence a correct trade off between risk and improved rate of return to shareholders is a challenging task. v) With free pricing of issues, the optimum price of new issue is a challenging task, as overpricing results in under subscription and loss of investor confidence whereas under pricing leads to unwarranted increase in number of shares and also reduction of earnings per share. v) Maintaining share prices is crucial. In the liberalized scenario the capital markets is the important avenue of funds for business. The dividend and bonus policies framed, has a direct bearing on the share prices. i) Ensuring management control is vital especially in the light of foreign participation in equity (which is backed by huge resources) making the firm an easy takeover target. Existing ma nagements may loose control in the eventuality of being unable to take up the share entitlements. Financial strategies to prevent this are vital to the present management. Forms of Business Organization – The three most common forms of business organization are the sole proprietorship, the partnership and the company.Other specialized forms of business organizations also exist. Sole proprietorship are the most In terms of total receipts and net profits corporate form of business dominate. Sole Proprietorship – A sole proprietorship is a business owned by one person who runs for his own profit. Majority of the business firms are sole proprietorships. The typical sole proprietorship is a small business e. g. bakeshop, personal trainer or plumber. The majority of sole proprietorship is found in the wholesale, retail, service and construction industries.Typically, the proprietor along with few employees runs the business. He raises capital from personal resources or by bor rowing and is responsible for all business decisions. The sole proprietor has unlimited liability, towards creditors not restricted to the amount originally invested. The key strengths and weaknesses of sole proprietorship are given in table 1. 3. Partnership – A partnership firm is a business run by two or more persons for profit.Partnership accounts for the next majority of business and they are typically larger than sole proprietorship. Finance, legal and real estate firms often have large number of partners. Most partnerships are established by a written contract known as ‘Deed of Partnership’. In partnership, all partners have unlimited liability for all the debts of the partnership. In India, partnership is governed by the Partnership Act, 1932. Strengths and weaknesses or partnerships are summarized in Table 1. 3. Company Form –A company form of business is a legal entity, separated from the owners, with perpetual succession. Just like an individual , the company can sue and be sued, make and be party to contracts and acquire property in its own name. The company form of organization is the dominant form of business organization in terms of receipts and profits. Although, corporations are involved in all types of business, manufacturing corporation account for the largest portion of corporate business receipts and net profits.The key strengths and weaknesses of corporate form are summarized in Table 1. 3. The owners of the company are its shareholders, whose ownership is evidenced by either common shares or preference shares. Shareholders get a return by receiving dividends i. e. periodic distribution of earnings or gains through increase in share price. Owner’s liability is limited to the amount paid on their shares. Shareholder elects the Board of Directors through vote.The Board of Directors has the ultimate authority in running the organization including making the general policy. The President or Chief Executive Off ice (CEO) is responsible for managing day to day operations and carrying out the policies established by the Board. The CEO is required to report periodically to the firm’s board of directors. The corporate form of business are subject to strict control by Regulatory Agencies including Companies Ac, 1956, SEBI, etc. Table I – Strengths and weaknesses of the common forms of business organizations Sole Proprietorship |Partnership |Company | | | | | |Strengths | | | | | | | |Owners receive all profits and incurs all losses |Can raise more funds than the sole proprietorship |Owners liability is limited to the extent paid on | | |their shares | |Low organizational costs |Borrowing powers enhanced by more owners | | | | |Can achieve large size via sale of shares | | |More available manpower and managerial skill | | |Income is included and taxed on owners personal tax | |Ownership (share) is readily transferable | |return |Income included and mixed on individual partnerâ€⠄¢s tax | | | |return |Long life of the firm | |Independence | | | | | |Can have professional managers | |Secrecy | | | | | |Has better access to financing | |Ease of dissolution | | | | | |Receives some tax advantage | | | | | | | | | |Weaknesses – |Owners have unlimited liability and may have to cover | | | |debts of other partners |Taxes generally higher, because corporate income is | |Owner has unlimited liability towards debt of the firm| |taxed and dividends paid to owners are also taxed. | |Partnership is dissolved when partner dies |(the latter has been exempted at the hands of the | |Limited fund raising power limits growth | |shareholders in India) | | |Difficult to liquidate or transfer partnership | | |Proprietor must be jack-of-all trades | |More expensive to organize than other forms of | | | |business | |Difficult to give employees long-run career | | | |opportunities | |Subject to greater control by regulating authorities | | | | | |Lacks continuity when pro prietor dies or unable to | |Lacks secrecy since the shareholders must receive | |operate | |financial reports at periodic intervals | | | | | Limited Liability Partnership A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liability.It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of an unlimited partnership. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have at least one â€Å"general partner† with unlimited liability. Unlike corporate shareholders, the partners have the right to manage the business directly. In contrast, corporate shareholders have to elect a board of directors under the laws of various state charters.The board organizes it self (also under the laws of the various state charters) and hires corporate officers who then have as â€Å"corporate† individuals the legal responsibility to manage the corporation in the corporation's best interest. An LLP also contains a different level of tax liability from that of a corporation. Limited liability partnerships are distinct from limited partnerships in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses where all investors wish to take an active role in management. There is considerable confusion between LLPs as constituted in the U. S. nd that introduced in the UK in 2001 and adopted elsewhere  Ã¢â‚¬â€ see below  Ã¢â‚¬â€ since the UK LLP is, despite the name, specifically legislated as a Corporate body rat her than a Partnership. India The Limited Liability Partnership Act 2008 was published in the official Gazette of India on January 9, 2009 and has been notified with effect from 31 March 2009. However, the Act, has been notified with limited sections only. The rules have been notified in the official gazette on April 1, 2009. The first LLP was incorporated in the first week of April 2009. 1. In India, for all purposes of taxation, an LLP is treated like any other partnership firm. 2. be limited to their agreed contribution in the LLP. 3.Further, no partner would be liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful business decisions or misconduct. 4. LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession. Indian Partnership Act, 1932 shall not be applicable to LLPs and there shall not be any upper limit on number of partners in an LLP unlike an ordinary partnership firm where the maximum number of partners can not exceed 20, LLP Act makes a mandatory statement where one of the partner to the LLP should be an Indian. 5. Provisions have been made for corporate actions like mergers, amalgamations etc. 6.While enabling provisions in respect of winding up and dissolutions of LLPs have been made, detailed provisions in this regard would be provided by way of rules under the Act. 7. The Act also provides for conversion of existing partnership firm, private limited company and unlisted public company into a LLP by registering the same with the Registrar of Companies (ROC) 8. Nothing Contained in the Partnership Act 1932 shall effect an LLP. 9. The Registrar of Companies (Roc) shall register and control LLPs also. 10. The governance of LLPs shall be in electronic mode based on the successful model of the present Ministry of Corporate Affairs Portal. Chapter Assignments – 1. What are the tasks of Financial Management? 2. Discuss the salient features of the traditional approach to Corporation Finance. 3.Discuss the distinctive features of modern approach to Corporation Finance. 4. What is the normative goal of financial management? 5. â€Å"Financial Management is an integral part of the jobs of all managers. Hence it cannot be entrusted to a staff Department†. Discuss. 6. Discuss some of the problems the financial managers in a developing country like India have to grapple with. 7. Draw a typical organization chart highlighting the finance function of a company. 8. Which of the following functions should be the responsibility of a Finance Manager? i) Maintaining the books of account. ii) Negotiating loans with banks iii) Preparation of cost statements iv) Conducting of internal audit v) Analysis of new projects i) Ensuring that enough cash is available at all the branches and factories of the company. vii) Assisting the management in taking a decision regarding the quantum of dividend. viii) Negotiating under-writing agreements in case of new issues ix) Preparing the financial statements. x) Deciding about change in the policies regarding recruitment. xi) Decision on administrative practices. xii) Change in marketing and advertising techniques routine. 9. Which of the following statements are true? i) It is the job of the finance manager to approve all payments. ii) The finance manager has to keep a proper balance in the procurement and use of funds. iii) Acquisition of fixed assets is of no concern to the finance manager. v) It is always advisable to distribute the total amount of profit as dividend. v) Since it is crucial that all sections of the business have adequate cash, it is a good policy to give each sections of the business double the amount of cash that they normally require so that they can meet even emergencies. vi) Debentures and loans from financial institutions are very important sources of long-term fund s. vii) It is better if no credits are given to the customers since this would mean that no amounts are tied up in sundry creditors. viii) In a period of rising prices, it is better to stock as much as raw material as possible, irrespective of the cost of procuring funds. x) A proper capitalization ensures that there is a balance between long-term funds and short-term funds and also proper ratios are maintained between the various sources of funds. 10. Which of the following statements do you agree? i) Financial management is essential only in private sector enterprise. ii) Only capitalists have to bother about money. The bureaucrat is to administer and not manage funds. iii) The public administrators in our country must be given a basic understanding of essentials of finance. iv) A state owned Transport Company must immediately deposit in the bank all its takings. v) â€Å"Financial Management is counting pennies. We do not believe in such miserly attitude†. vi) â€Å"Finan ce function is important as any other function in an organization†.

Thursday, January 9, 2020

Albrecht von Wallenstein in the Thirty Years War

Born at Heà ¸manice, Bohemia on September 24, 1583, Albrecht von Wallenstein was the son of a minor noble family. Initially raised as a Protestant by his parents, he was sent to a Jesuit school in Olmà ¼tz by his uncle after their death. While at Olmà ¼tz he professed to convert to Catholicism, though he subsequently attended the Lutheran University of Altdorf in 1599. Following additional schooling at Bologna and Padua, von Wallenstein joined the army of Holy Roman Emperor Rudolf II. Fighting against the Ottomans and Hungarian rebels, he was commended for his service at the siege of Gran. Rise to Power Returning home to Bohemia, he married the wealthy widow Lucretia Nikossie von Landeck. Inheriting her fortune and estates in Moravia upon her death in 1614, von Wallenstein used it buy influence. After splendidly fitting out a company of 200 cavalries, he presented it to Archduke Ferdinand of Styria for use in fighting the Venetians. In 1617, von Wallenstein married Isabella Katharina. The couple had two children, though only one, a daughter, survived infancy. With the outbreak of the Thirty Years War in 1618, von Wallenstein declared his support for the Imperial cause. Forced to flee his lands in Moravia, he brought the provinces treasury to Vienna. Equipping a regiment of cuirassiers, von Wallenstein joined the army of Karel Bonaventura Buquoy and saw service against the Protestant armies of Ernst von Mansfeld and Gabriel Bethlen. Winning notice as a brilliant commander, von Wallenstein was able to recover his lands after the Catholic victory at the Battle of White Mountain in 1620. He also benefited from the favoritism of Ferdinand who had ascended to post of Holy Roman Emperor in 1619. The Emperors Commander Through the emperor, von Wallenstein was able to acquire the large estates that had belonged to his mothers family as well as purchased huge tracts of confiscated land. Adding these to his holdings, he reorganized the territory and named it Friedland. In addition, military successes brought titles with the emperor making him an imperial count palatine in 1622, and a prince a year later. With the entry of the Danes into the conflict, Ferdinand found himself without an army under his control to oppose them.  While the army of the Catholic League was in the field, it belonged to Maximilian of Bavaria. Seizing the opportunity, von Wallenstein approached the emperor in 1625 and offered to raise an entire army on his behalf. Elevated to Duke of Friedland, von Wallenstein initially assembled a force of 30,000 men. On April 25, 1626, von Wallenstein and his new army defeated a force under Mansfield at the Battle of Dessau Bridge. Operating in conjunction with the Count of Tillys Catholic League Army, von Wallenstein campaigned against Mansfeld and Bethlan. In 1627, his army swept through Silesia clearing it of Protestant forces. In the wake of this victory, he purchased the Duchy of Sagan from the emperor. The next year, von Wallensteins army moved into Mecklenburg in support of Tillys efforts against the Danes. Named Duke of Mecklenburg for his services, von Wallenstein was frustrated when his siege of Stralsund failed, denying him access to the Baltic and the ability to confront Sweden and the Netherlands at sea. He was further distressed when Ferdinand announced the Edict of Restitution in 1629. This called for the return of several principalities to Imperial control and the conversion of their inhabitants to Catholicism. Though von Wallenstein personally opposed the edict, he began moving his 134,000-man army to enforce it, angering many of the German princes. This was hampered by the intervention of Sweden and the arrival of its army under the gifted leadership of King Gustavus Adolphus. In 1630, Ferdinand called a meeting of the electors at Regensburg with the goal of having his son voted as his successor. Angered by von Wallensteins arrogance and actions, the princes, led by Maximilian, demanded the commanders removal in exchange for their votes. Ferdinand agreed and riders were sent to inform von Wallenstein of his fate. Return to Power Turning his army over to Tilly, he retired to Jitschin in Friedland. While he lived on his estates, the war went badly for the emperor as the Swedes crushed Tilly at the Battle of Breitenfeld in 1631. The following April, Tilly was defeated at killed at Rain. With the Swedes in Munich and occupying Bohemia, Ferdinand recalled von Wallenstein. Returning to duty, he swiftly raised a new army and cleared the Saxons from Bohemia. After defeating the Swedes at Alte Veste, he encountered Gustavus Adolphus army at Là ¼tzen in November 1632. In the battle that ensued, von Wallensteins army was defeated but Gustavus Adolphus was killed. Much to the emperors dismay, von Wallenstein did not exploit the kings death but rather retreated into winter quarters. When the campaign season began in 1633, von Wallenstein mystified his superiors by avoiding confrontations with the Protestants. This was largely due to his anger over the Edict of Restitution and his beginning secret negotiations with Saxony, Sweden, Brandenburg, and France to end the war. While little is known regarding the talks, he claimed to be seeking a just peace for a unified Germany. Downfall While von Wallenstein worked to stay loyal to the emperor, it is clear that he was seeking to aggrandize his own power. As the talks flagged, he sought to reassert his power by finally going on the offensive. Attacking the Swedes and Saxons, he won his final victory at Steinau in October 1633. After von Wallenstein moved to winter quarters around Pilsen, news of the secret talks reached the emperor in Vienna. Moving quickly, Ferdinand had a secret court find him guilty of treason and signed a patent removing from command on January 24, 1634. This was followed by an open patent charging him with treason which was published in Prague on February 23. Realizing the danger, von Wallenstein rode from Pilsen to Eger with the goal of meeting with the Swedes. Two nights after arriving, a plot was put into motion to eliminate the general. Scots and Irish dragoons from von Wallensteins army seized and killed many of his senior officers, while a small force, led by Walter Devereux, killed the general in his bedroom. Selected Sources Albrecht von WallensteinNNDB: Albrecht von WallensteinThirty Years War

Wednesday, January 1, 2020

Bring Back Flogging Essays - 475 Words

Bring Back Flogging During seventeenth century flogging was a popular punishment for convicted people among Bostons Puritans. Fortunately, those times have passed and brutal and inhuman flogging was replaced by imprisonment. Columnist for the Boston Globe, Jeff Jacoby in his essay Bring back flogging asserts that flogging is superior to imprisonment and advocates flogging as an excellent means of punishment. He is convinced that flogging of offenders after their first conviction can prevent them from going into professional criminal career and has more educational value than imprisonment. He also argues that being imprisoned is more dangerous than being whipped, because the risk of being beaten, raped, or murdered in prison is†¦show more content†¦A new recruit who can deal with the pain and remain strong is one step closer to being accepted. If flogging becomes legalized, it could easily become that stepping stone of violence and humiliation that a youth needs to go through in order to be come accepted as a member of a gang or an organized crime unit. Moreover, I cannot agree with the author that flogging has more educational value than imprisonment. First-time offenders who never held plans to go into a professional criminal career can become so angry and aggravated after a public flogging that they may seek out revenge on those acquaintances who watched their punishment. As a result of public humiliation and disgrace, these offenders are likely to enter a cycle of violence fueled by hate and frustrations towards those who inflicted the punishment and those who witnessed it. The only educational lesson that flogging can teach is hate and violence; therefore, flogging does not have more positive educational impact than imprisonment. Incredibly, this is not even the most misguided assumption in this article. The author proposes that the next reason why flogging is better than imprisonment is that the risk of being beaten, raped, or murdered in the prison is terrifyingly high. I strongly disagree with this statement. Flogging is a direct danger to the health ofShow MoreRelatedBring Back Flogging1340 Words   |  6 PagesBring Back Flogging This essay by Jeff Jacoby illustrates an authors use of ironic sarcasm otherwise known as satire to defend and illustrate his platform on his position. Jacoby uses in this essay verbal irony (persuasion in the form of ridicule). In the irony of this sort there is a contrast between what is said and what is meant. Jacoby s claim in simple is he believes that flogging should be brought back to replace the more standard conventional method of the imprisonment of violentRead MoreBring Back Flogging1289 Words   |  6 PagesBring Back Flogging Every civilized society makes laws that protect its values, and society expects from every single person to obey to these laws. Whenever a person from this society breaks one of those laws, the rulers of the society punish him or her either by putting the person behind bars, whipping him or her, or exiling the person. A great debate has been raging since human society started. Some say that depriving a wrongdoer from his or her freedom is the best way to deter him or her fromRead MoreBring Back Flogging Essay1060 Words   |  5 PagesIn â€Å"Bring Back Flogging† Jeff Jacoby, a columnist for the Boston Globe, presents the use of corporal punishment as an alternative to the current system of imprisonment. Published in February of 1997, the article states that flogging would be a more effective means of punishment than jail. He insists it would be less expensive and serve as a deterrent to first time offenders. Jacoby’s thoughts on prison reform are legitimate, but his reasoning behind the use of corporal punishment is flawed. He failsRead MoreJeff Jacoby’s Bring Flogging Back1018 Words   |  5 PagesIn Jeff Jacoby’s essay Bring Flogging Back, he discusses whether flogging is the more humane punishment compared to prison. Jacoby uses clear and compelling evidence to describe why prisons are a terrible punishment, but he lacks detail and information on why flogging is better. In the essay he explains how crime has gotten out of hand over the past few decades, which has lead to the government building more prisons to lock up more criminals. His effort to prove that current criminal punishment isRead MoreBring Back Flogging by Jeff Facoby715 Words   |  3 PagesA columnist for the Boston Globe, Jeff Jacoby, in his article, â€Å"Bring Back Flogging† published on the op-ed page on February 20, addresses the issue of the deficiency of today’s criminal justice system and attempts to persuade us to bring back flogging as a punishment for certain crime. However, though his syllogism might arouse the reader and educate them on the need for reform, but it fails to convince the reader that corporal punishment is the best option. He supports his argument by providingRead More Do Not Bring Back Flogging Essay1032 Words   |  5 PagesFlogging†¦What is it? What purpose does it serve? For those of us who have never heard of flogging, flogging refers to â€Å"beating with a whip or strap or rope as a form of punishment† (â€Å"Flogging† 1). Throughout the 1600s, flogging was utilized by â€Å"Boston’s Puritan Forefathers† (Jacoby 1) as a method of corporal punishment for various crimes. Progressing forward, Jeff Jacoby, columnist for The Boston Globe, provides readers with his view of â€Å"Boston’s Forefathers’† system of punishment in his essay, â€Å"BringRead MoreJeff Jacobys Essay Bring Back Flogging1214 Words   |  5 Pages â€Å"Bring Back Foolishness† nbsp;nbsp;nbsp;nbsp;nbsp;Jeff Jacobys’ essay, entitled â€Å"Bring Back Flogging† was, in my sincere opinion, poorly constructed. There are numerous instances where I felt that he had either not supported his premises with valid information or had negated his support in later sentences. nbsp;nbsp;nbsp;nbsp;nbsp;The essay begins by drawing forth images of Puritan punishment. He cites two instances of punishment, which were particularly torturous and radical in natureRead MoreSummary Of Bring Back Flogging By Jeff Jacoby795 Words   |  4 PagesIn â€Å"Bring Back Flogging†, the author, Jeff Jacoby suggests that people should adopt some of the Puritans tactics to punish criminals instead of putting them in prison. In order to present his claim, Jacoby is based in the use of irony, logos, and ethos. According to Jeff Jacoby a moment of humiliation is better than a couple of years behind the bars. I do not agree with Jeff Jacoby’s argument because the examples he gives and the way he refers to the topic incite to violence, also during the developmentRead More Jeff Jacobys Bring Back Flogging Essay1315 Words   |  6 PagesJeff Jacobys Bring Back Flogging   Ã‚  Ã‚  Ã‚  Ã‚  This essay by Jeff Jacoby illustrates an authors use of ironic sarcasm otherwise known as satire to defend and illustrate his platform on his position. Jacoby uses in this essay verbal irony (persuasion in the form of ridicule). In the irony of this sort there is a contrast between what is said and what is meant.   Ã‚  Ã‚  Ã‚  Ã‚  Jacoby’s claim in simple is he believes that flogging should be brought back to replace the more standard conventional method of the imprisonmentRead MoreRhetorical Analysis1358 Words   |  6 Pagesï » ¿ In â€Å"Bring Back Flogging†, Jeff Jacoby addresses the problems within America s criminal justice system. He gives many reasons why imprisonment simply does not work, and suggests that corporal punishment should be used as an alternative. Published in the Boston Globe, a newspaper well known for being liberal, Jacoby provides a conservative view and directs his argument towards those who strongly support imprisonment and view corporal punishment to be highly barbaric and inhumane. However,