Chapter 01 Gitman Free Essays

string(40) " in fact preserve value or earn income\." Part One Preparing to Invest Part One Includes Chapter 1Investment Environment Chapter 2Markets and Transactions Chapter 3Online Information and Investing Chapter 1 Investment Environment Outline Learning Goals I. Investments and the Investment Process A)Types of Investments 1. Securities or Property 2. We will write a custom essay sample on Chapter 01 Gitman or any similar topic only for you Order Now Direct or Indirect 3. Debt, Equity, or Derivative Securities 4. Low or High Risk 5. Short or Long Term 6. Domestic or Foreign B)The Structure of the Investment Process 1. Participants in the Investment Process 2. Government 3. Business 4. Individuals 5. Types of Investors Concepts in Review II. Investment Vehicles A)Short Term Vehicles B)Common Stock C)Fixed Income Securities 1. Bonds 2. Preferred Stock 3. Convertible Securities D)Mutual Funds E)Derivative Securities 1. Options 2. Futures F)Other Popular Investment Vehicles Concepts in Review III. Making Investment Plans A)Steps in Investing 1. Meeting Investment Prerequisites 2. Establishing Investment Goals 3. Adopting an Investment Plan 4. Evaluating Investment Vehicles 5. Selecting Suitable Investments 6. Constructing a Diversified Portfolio 7. Managing the Portfolio B)Considering Personal Taxes 1. Basic Sources of Taxation 2. Types of Income a. Ordinary Income b. Capital Gains and Losses 3. Investments and Taxes 4. Tax-advantaged Retirement Vehicles C)Investing Over the Life Cycle D)Investing in Different Economic Environments 1. Stocks and the Business Cycle 2. Bonds and Interest Rates Concepts in Review IV. Meeting Liquidity Needs: Investing in Short-Term Securities A)Role of Short Term Securities 1. Interest on Short Term Securities 2. Risk Characteristics 3. Advantages and Disadvantages of Short Term Investments B)Popular Short Term Investment Vehicles 1. Deposit Accounts 2. Federal Government Issues 3. Nongovernment Issues C)Investment Suitability Concepts in Review Summary Putting Your Investment Know-How to the Test Discussion Questions Problems Case Problems 1. 1Investments or Golf? 1. 2Preparing Carolyn Bowen’s Investment Plan Excel with Spreadsheets OTIS—Online Trading and Investment Simulator Key Concepts 1. The meaning of the term investment and the implications it has for individual investors. 2. Review the factors used to differentiate between different types of investments. . The importance of and basic steps involved in the investment process. 4. Popular types of investment vehicles, including short term vehicles, common stock, and fixed income securities such as bonds, preferred stock, and convertibles. 5. Derivative securities such as options and futures, and mutual funds. 6. Other popular investment vehicles such as real estate, tangibles and tax advantaged inve stments. 7. Investment goals including income, major expenditures, retirement, and sheltering income from taxes. The latter includes analysis of tax-advantaged retirement vehicles. . Building a diversified portfolio consistent with investment goals. 9. Sources of taxation, types of taxable income, and the effect of taxes on the investor. 10. Developing an investment program that considers differing economic environments and life cycle stages. 11. The use of short term securities in meeting liquidity needs. 12. The merits and suitability of various popular short term investment vehicles including deposit accounts and money market securities. Overview This chapter provides an overview of the scope and content of the text. 1. The term investment is defined, and the alternative investment opportunities available to investors are classified by types. 2. An examination of the structure of the investment process is presented. This section explains how suppliers and demanders of investment funds are brought together in the marketplace. 3. The key participants in the investment process—government, business, and individuals—are described, as are institutional and individual investors. 4. Returns are defined as rewards for investing. Returns to an investor take two forms—current income and increased value of the investment over time. In this section the instructor need only define return, since there will be another opportunity to develop the concept of return in Chapter 4, however providing information about recent investment returns is always well-received by students. 5. Next, the following investment vehicles available to individual investors are discussed: short term vehicles, common stock, fixed income securities, mutual funds, real estate, tangibles, tax-advantaged investments, and options and futures. The text describes their risk return characteristics in a general way. The instructor may want to expand on the advantages and disadvantages of investing in each, although they will be treated in greater detail in subsequent chapters. It is vital for any investor to establish investment goals that are consistent with his or her overall financial objectives. 6. Once the investment goals have been well specified, the investor can adopt an investment plan consistent with these goals, select suitable investments, build a diversified portfolio and manage it. 7. Personal taxes are discussed in terms of types of income and tax rates. The investment process is affected by current tax laws. Examples of tax shelters, especially tax-advantaged retirement vehicles, and tax planning are provided. 8. Once investment goals are established, it is important to understand how the investment process is affected by different economic environments. The chapter talks about types of investments—stocks, bonds, and tangibles—as they are affected by business cycles, interest rates, and inflation. 9. Liquidity is defined and short term securities that can be used to meet liquidity requirements are described. The discussion includes a look at short term interest rates and the risk characteristics of various short term securities. 0. The next section covers the various types of short term vehicles available to today’s investor. There is enough detail about everything from passbook accounts to money market funds to commercial paper that the students should get a good grasp of the differences between the vehicles. Producing information on current rates helps bring realis m into the classroom and enhances student perception of the lecturer as a knowledgeable instructor. Answers to Concepts in Review 1. An investment is any vehicle into which funds can be placed with the expectation of preserving or increasing value and earning a positive rate of return. An investment can be a security or a property. Individuals invest because an investment has the potential to preserve or increase value and to earn income. It is important to stress that this does not imply that an investment will in fact preserve value or earn income. You read "Chapter 01 Gitman" in category "Essay examples" Bad investments do exist. 2. (a)Securities and property are simply two classes of investments. Securities are investments, commonly evidenced by certificates, that represent a legal claim. For example, a bond represents a legal claim on debt, and a stock represents a proportionate ownership in the firm. An option, on the other hand, represents the legal right to either buy or sell an asset at a predetermined price within a specified time period. Property constitutes investments in either real property (land and buildings) or tangible personal property (Rembrandt paintings, Ming vases, or antique cars). (b)With a direct investment, an individual acquires a direct claim on a security or property. For example, an investment in one share of IBM stock directly provides the stockholder a proportionate ownership in IBM. An indirect investment provides an indirect claim on a security or property. For example, if you bought one share of Fidelity Growth Fund (a mutual fund), you are in effect buying a portion of a portfolio of securities owned by the fund. Thus, you will have a claim on a fraction of an entire portfolio of securities. (c)An investment in debt represents funds loaned in exchange for the receipt of interest income and repayment of the loan at a given future date. The bond, a common debt instrument, pays specified interest over a specified time period, then repays the face value of the loan (Chapters 8 and 9 cover bonds in detail). An equity investment provides an investor an ongoing fractional ownership interest in a firm. The most common example is an investment in a company’s common stock. We will study equity instruments in greater detail in Chapters 5 through 7. Derivative securities are securities derived from debt or equity securities and structured to exhibit characteristics different from the underlying securities. Options are derivative securities that allow an investor to sell or buy another security or asset at a specific price over a given time period. For example, an investor might purchase an option to buy Company X stock for $50 within nine months. d)Short-term investments typically mature within one year while long-term investments have longer maturities, like common stock, which has no maturity at all. However, long-term investments can be used to satisfy short-term financial goals. 3. In finance, risk refers to the chance that the return from an investment will differ from its expected value. The broader the range of possible values (dispersion), the greater the risk of the investment. Low risk investments are those considered safe with respect to the return of funds invested and the receipt of a positive rate of return. High risk investments are those which have more uncertain future values and levels of earnings. 4. Foreign investments are investments in the debt, equity, derivative securities of foreign based companies and property in a foreign country. Both direct and indirect foreign investments provide investors more attractive returns or lower-risk investments compared to purely domestic investments. They are useful instruments to diversify a pure domestic portfolio. 5. The investment process brings together suppliers and demanders of funds. This may occur directly (as with property investments). Most often the investment process is aided by a financial institution (such as a bank, savings and loan, savings bank, credit union, insurance company, or pension fund) that channels funds to investments and/or a financial market (either the money market or the capital market) where transactions occur between suppliers and demanders of funds. 6. (a)The various levels of government (federal, state, and local) require more funds for projects and debt repayment than they receive in revenues. Thus, governments are net demanders of funds. Governments also demand funds when the timing of their revenues do not match their expenditure. The term net refers to the fact that, while governments both supply and demand funds in the investment process, on balance they demand more than they supply. (b)Businesses also are net demanders, requiring funds to cover short and long term operating needs. While business firms often supply funds, on balance they also demand more than they supply. (c)Individuals are the net suppliers of funds to the investment process. They put more funds into the investment process than they take out. Individuals play an important role in the investment process—supplying the funds needed to finance economic growth and development. 7. Institutional investors are investment professionals who are paid to manage other people’s money. They are employed by financial institutions like banks and insurance companies, by nonfinancial businesses, and by individuals. Individual investors manage their own personal funds in order to meet their financial goals. Generally, institutional investors tend to be more sophisticated because they handle much larger amounts of money and they tend to have a broader knowledge of the investment process and available investment techniques and vehicles. 8. Short term investment vehicles are those which usually have lives of less than one year. These vehicles may be used to â€Å"warehouse† temporarily idle funds while suitable long term vehicles are evaluated. Due to their safety and convenience, they are popular with those wishing to earn a return on temporarily idle funds or with the very conservative investor who may use these short term vehicles as a primary investment outlet. In addition to their â€Å"warehousing† function, short-term vehicles provide liquidity- they can be converted into cash quickly and with little or no loss in value. This characteristic is very useful when investors need to meet unexpected expenses or take advantage of attractive opportunities. . Common stock is an equity investment that represents a fractional ownership interest in a corporation. The return on a common stock investment derives from two sources: dividends, which are periodic payments made by the firm to its shareholders from current and past earnings, and capital gains, which result from selling the stock at a price above the original purchase price. Because common stock offers a broad range of return-risk combinations, it is one of the most popular investment vehicles. Two sources of potential return are dividends and capital gain. 10. a)Bonds are debt obligations of corporations or governments. A bondholder receives a known interest return, typically semiannually, plus the face value at maturity. Bonds are usually issued in $1,000 denominations, pay semiannual interest, and have twenty to forty year maturities. Bonds offer fixed/certain returns, if held till maturity. (b)Preferred stock is very much like common stock in that it represents an ownership interest in a corporation. But preferred stock pays only a fixed stated dividend, which has precedence over common stock dividends, and does not share in other earnings of the firm. c)A convertible security is a fixed income security, either a bond or preferred stock, that has a conversion feature. Typically, it can be converted into a specifie d number of shares of common stock. Convertible securities are quasi-derivative securities as their market value would depend on the price of the common stock and the conversion ratio. (d)A mutual fund is a company that invests in a large portfolio of securities; whereas a money market mutual fund is a mutual fund which solely invests in other short-term vehicles. Investors might find mutual funds appealing because a large portfolio may be more consistent with their investment goals in terms of risk and return. As we will see later, a mutual fund offers the investor the benefits of diversification and professional management. Mutual funds do not offer fixed/certain returns. Mutual funds are quasi-derivative securities as their market value would depend on the price of the assets that make up the fund’s portfolio. (e)Options are derivative securities that provides holders the right to buy or sell another security (typically stock) or property at a specified price over a given time period. Factors like the time until expiration, the underlying stock price behavior, and supply and demand conditions affect the returns. (f)Futures represent contractual arrangements in which a seller will deliver or a buyer will take delivery of a specified quantity of a commodity at a given price by a certain date. Unlike an option, which gives the investor the right to purchase or sell another security, futures contracts obligate the investor to deliver or take delivery. Factors affecting returns on commodity contracts include changes in government policy, unpredictable weather, trade embargoes, and so on. 1. Before developing and executing an investment program, an investor must ensure the following: (1)Necessities of life such as funds for housing, food, transportation, taxes etc are fully provided for. (2)Investor is adequately insured against the losses resulting from death, illness or disability, property etc. (3)Establish Retirement Goals The seven steps in investing are as follows : (1)Meeting Investment Prerequisites: Providing for Necessities of life, adequate protection against losses, and Setting retirement Goals as iscussed above (2)Establishing Investment Goals: Investment goals are the financial objectives that one wishes to achieve by investing. Common investment goals are: †¢Accumulating retirement funds †¢Enhancing current income through interest income and dividends †¢Savings for major expenditure like home, education etc. †¢Sheltering income from taxes (3)Adopting an Investment Plan: A written document describing how funds will be invested is an investment plan. The more specific the investment goal, the easier it will be to establish an investment plan consistent with your goals. 4)Evaluating Investment Vehicles: In this step, the measures of risk and return are used to estimate the perceived worth of an investment vehicle. This process is called valuation. (5)Selecting Suitable Investments: This step involves careful selectio n of investment vehicles that are consistent with established goals and offer acceptable levels of return, risk, and value. (6)Constructing a Diversified Portfolio: Diversification is the concept of forming a portfolio using different investment vehicles to reduce risk and increase return. This concept is central to constructing an effective portfolio. 7)Managing the Portfolio: Portfolio management involves monitoring the portfolio and restructuring it as dictated by the actual behavior of the investments. 12. Investment goals are the financial objectives you wish to achieve by investing in any of a wide range of investment vehicles. Common investment goals are: (a)Enhancing current income means choosing investment vehicles that regularly pay dividends and interest that can provide all or some of the money needed to meet living expenses. This is a common goal of retired persons and sometimes an important part of a normal family budget. b)Saving for major expenditures includes money set aside for such things as the down payment on a home, college tuition, and even an expensive vacation. The amount of money needed and the time period over which one can save will determine the amount set aside and, frequently, the investment vehicle employed. (c)The single most important reason for investing is to accumulate retirement funds. The amount that must be set aside is determined by the level of expected expenditures, expected income from social security and other sources, and the amount of interest expected to be earned on savings. d)Sheltering income from taxes involves taking advantage of certain tax provisions that permit reduction of the income reported to the government or direct reductions in taxes. Investments in certain assets, such as real estate, may be attractive due to their tax advantages. 13. Federal income taxes are charged against all income individuals receive from all sources (with the exception of interest received on some bonds issued by state and l ocal governments). (a)Active (ordinary â€Å"earned†) income is the broadest category and includes income from wages, salaries, bonuses, tips, pension income, and alimony. It is made up of income earned on the job as well as most other forms of non-investment income. (b)Portfolio (investment) income is earnings generated from various types of investment holdings. For the most part, it consists of interest, dividends, and capital gains earned on most types of investments. Passive income is a special category that consists of income derived chiefly from real estate, limited partnerships, and other forms of tax shelters. (c)Capital gains are the profits earned on the sale of capital assets—pleasure, or investment. They are measured by the amount by which the proceeds from the sale of the capital asset exceed its original purchase price. Currently capital gains are taxed at the same rate as ordinary income. Capital gains are appealing to investors because they are not taxed until they are actually realized. (d)A capital loss is the amount by which the proceeds from the sale of a capital asset are less than its original purchase price. Up to $3,000 of net losses can be applied against ordinary income in any one year, with the unused portion carried forward to offset future income. e)Due to the opportunities and challenges created by the tax laws, tax planning is an important part of the investment process. Tax planning involves looking at an individual’s current and projected earnings and developing strategies that will defer or minimize the level of his or her taxes. Tax plans involve current income, capital gains, or tax-sheltered investments. For example, one strategy is to take losses as they occur and to delay taking profits. One deducts the losses and delays inclusion of profits in order to minimize current taxable income. f)In general, tax-advantaged retirement plans allow individuals to defer taxes on the contribution and/or portfolio earnings until some future date when retirement withdrawals take place. There are employer-sponsored plans, such as 401(k) accounts and individual-created plans, such as Keogh plans, and individual retirement accounts (IRAs). 14. (a)Young investors, ages 20 to 45, tend to prefer growth-oriented investments that stress capital gains rather than income. These investors have little investable funds, and capital gains are seen as the quickest way to build up investment capital. b)By middle-age, ages 45 to 60, there is a consolidation taking place as family demands and responsibilities change. While growth-oriented securities are still used, investing becomes less speculative. Quality-growth vehicles are employed, and more attention is given to current income. The foundation is being set for retirement. (c)As the investor moves into the retirement years, age 60 on, preservation of capital and current income become the principal concerns. High-quality stocks and bonds and money market instruments are used as the investor’s objective is to live as comfortably as possible from the investment income. During retirement one tries to reap the rewards of a lifetime of saving and investing. 15. The four stages of the economic/market cycle are recovery, expansion, decline, and recession. Recovery is the strengthening of the economy after a recession. Expansion reflects continued strength and optimism about economic growth. Decline involves a slowing-down of the economy after an expansion which may have been moving too fast. Then the cycle moves into recession, the economy contracts and pessimism reigns. Just as things look the worst, the recovery cycle begins again. a)Stocks and equity-related securities (such as mutual funds and convertibles) are highly responsive to the economic cycle. During recovery and expansion stock prices are up. As the decline approaches, stock prices begin to decline as well. Growth-oriented and speculative stocks tend to do especially well in an expanding economy. (b)Bonds and other fixed-income securities are sensitive to movements in interest rates. Bond p rices also move in the opposite direction of interest rate changes. This means that if interest rates are expected to rise, bond prices would fall, and bonds would not be a good place to hold investment funds. Interest rates generally shift with the economic cycle. Rates rise during normal recovery and fall during economic declines. 16. An asset is liquid if it can be converted to cash (sold) easily and quickly, with little or no loss in value. You would want to hold liquid assets as emergency funds or to accumulate funds for some specific purpose. IBM stock is not considered a liquid investment even though it can be easily sold. As with stocks in general, you can never be sure that, when funds are needed, you can quickly sell the stock without taking a loss. 17. Purchasing power risk for short-term investments occurs when the rate of return on these investments falls short of the inflation rate. This generally happens to fixed-rate investments such as passbook savings accounts. Most other short-term investments have managed to provide rates of return about equal to the inflation rate when one looks at these short-term rates over long periods of time. Default (nonpayment) risk is very small with most short-term investments. The deposits in banks and other federally-insured savings institutions are protected up to $100,000 per account by agencies of the federal government. U. S. Treasury Bills are perfectly safe and sometimes called a risk-free investment. Commercial paper and repurchase agreements are extremely safe, based upon past experience, even though there have been rare instances of problems. These latter two instruments are also not insured. Money market mutual funds have also had an exceptionally safe history. Of course, the safest money market funds are those which invest solely in government securities and are virtually default-risk free. 18. Passbook savings accounts and NOW accounts (a checking account), offered by banks, generally pay a low rate of interest and have no minimum balance. Passbook savings and NOW accounts are primarily used by investors as savings accounts, providing the investor with a highly liquid pool of funds. MMDA’s are bank deposit accounts with limited check-writing privileges. Central asset accounts are comprehensive deposit accounts and combine checking, investing and borrowing activities. MMDAs and asset management accounts are more likely used by investors to earn a competitive short-term return while maintaining liquidity. Each type of account, except for asset management accounts, is insured. All but the passbook account typically require a minimum balance which varies. 19. a)Series EE savings bonds are accrual-type securities, which means that interest is paid when the bond is cashed, on or before maturity, rather than periodically over the life of the bond. The purchase price of all denominations is 50% of the face value. The interest rate paid is variable. The higher the rate of interest being paid, the shorter the period of ti me it takes for the bond to accrue from its discounted purchase price to its face value (b)U. S. Treasury bills are short-term (less than one year) debt obligations of the federal government. T-bills are exempt from state and local income taxes, and federal taxes are deferred. They are regarded as the safest, but generally lowest-yielding of all investments, and, the secondary market for T-bills is highly liquid. (c)Certificates of deposits (CDs) are savings vehicles in which funds must remain on deposit for a specified period. Premature withdrawals incur interest penalties. Because of the requirement that they remain on deposit, CDs are less liquid than T-bills, but they are convenient to buy and hold, offer highly competitive returns, and have federal insurance protection. (d)Commercial paper is unsecured short-term debt issued by corporations with very high credit standings. The secondary market for commercial paper is very limited and yields are comparable to yields on large-denomination CDs. Typically only larger institutions deal directly in this market because the denominations range from $25,000 to the more commonly issued $100,000. Commercial paper is not federally insured. (e)Banker’s acceptances are short-term credit arrangements between business firms and banks. Firms use banker’s acceptances to finance transactions, most often involving firms in foreign countries or firms with unknown credit capacities. Banker’s acceptances typically are denominated in $100,000 units, are low-risk securities, and have active secondary markets. Yields are slightly below CD yields and commercial paper, and above T-bills. (f)Money market mutual funds (MMMF) pool capital of many investors and invest it exclusively in high-yielding, short-term securities, such as T-bills, large CDs, commercial paper, and other similar securities. Because these high-yielding securities are in denominations of $10,000 to $1 million, the MMMF makes them available to individual investors. MMMFs are convenient, offer check writing privileges, and yields are based on the ability of the fund manager to invest in various short-term securities. Although they are not federally insured funds, their default risk is nearly zero because the securities they invest in are very low risk and the fund is relatively diversified. Suggested Answers to Investing in Action Questions Test Your Investment IQ (p. 4) How high is your Investment IQ as measured by the quiz? Answer: The average score was only 37 %, or well less than half. Remember that this is just one of many instruments that could be used to measure Investment IQ. For example, another assessment tool would be essay-oriented explanations of a specified investment’s strengths and weaknesses. Lessons For Investment Success (p. 15) (a)Why is it important to start investing now? Answer: One should start investing now in order to take advantage of compounding. A $1,000 amount invested for ten years at 7. 2 percent will double. The same amount invested at the same rate for twenty years will quadruple. Instead of just adding another $1000, you earn an extra $1000 from interest being earned on interest. Furthermore, there will never be an â€Å"ideal time† to invest. Terrorist threats, economic concerns, and alternative uses for the money are always with us. Studies have shown it is more important to invest than to pick the right security. Money not invested is likely to be spent and not provide future benefits. (b)Why is it a good idea to diversify? Answer: Diversifying allows you to spread out the risk that a unique firm or industry event will have a devastating impact on your investment. It is important to diversify across types of assets and nations. Suggested Answers to Discussion Questions 1. a)Since you fall into the category of a young investor, your key investment goals should be to purchase a house and save for the education of your children. Appropriate investments should focus on the education of your children. (b)You should consider the effects of taxes when investing, especially the tax relative treatment of capital gains and dividends. Your focus should be on maximizing the after-tax return on your investments. (c)Since you have a relatively long investment horizon, it is appropriate to focus on higher-risk investments such as common stocks in your portfolio. . Short-term vehicles play an important part in your investment program. Most importantly they will provide a pool of reserves that can be used for emergencies such as replacing cars, appliances and clothing that wear out over time. Savings or Investment VehicleMinimum BalanceYieldFederal InsuranceMethod and Ease of Withdrawing Funds (a)Passbook savings accountNone0. 5% to $4. 0%, depending on economyYes, up to $100,000 per depositIn person or through teller machines; very easy (b)NOW accountNo legal minimum, but often set at $500 or $1,000At or near passbook ratesYes, up to 100,000 per depositUnlimited check- writing privileges (c)Money market deposit account (MMDA)No legal minimum, but often set at $2,500Slightly above passbook ratesYes, up to $100,000 per depositLimited check- writing privileges (d)Asset management accountTypically $5,000 to $20,000S imilar to MMDAsYes, up to $100,000 in banks, varies elsewhereLimited check- writing privileges (e)Series EE savings bondInitial deposit is 50% of face valueAbout two percent above passbook savings accountNo, but Federal government issuePenalty of 3 months interest for early withdrawal (f)U. S. Treasury ill$25Slightly above passbook and NOW accounts No, but Federal government issueSecondary market exists (g)Certificate of depositTailored to investor needsSlightly above asset management accountNo, but as secure as most bank savings and checking accountsPenalty for early withdrawal (h)Money market mutual fundNo legal minimumSlightly below passbook savings accountNo, but has invested in a variety of government and bank issuesMay take a few days to receive check from fund Solutions to Problems 1. (a)Goal$250,000 $31,500 at 8% for 15 yrs. 100,000 Additional requirement$150,000 b)Annual deposit: ? ? $5,524. 50 2. (a)Tax on Allens’ income of $130,000. Looking at the joint tax return rate, we find ? (10% ? $14,000) ? [15% ? ($56,800 – $14,000] ? [25% ? ($114,650 – 56,800] ? [28% (130,000 – 114,650)] ? $1,400 ? [15% ? $42,800] ? [25% ? $57,850] ? [28% ? 15,350] ? $1,400 ? $6,420 ? $14,462. 50 ? $4,298 ? $ 26,580. 50 Tax on Zell’s income of $65,000. Looking at the joint tax return rate, we find ? ($10% ? $14,000) ? [$15% ? ($56,800 – $14,000)] ? [25% ? ($65,000 – $56,800)] ? $1,400 ? [15% ? $42,800] ? [25% ? $8,200] ? $1,400 ? $6,420 ? $2,050 ? 9,870. (b)Allan makes twice as much as Zell. Ratio of Allen’s total tax to income is ($26,580. 50/130,000) ? 20. 45% Ratio of Zell’s total tax to income is ($9,870450/65,000) $ ? 15. 18% Hence higher income earners pay a higher proportional of their income as tax. 3. (a)$50,000. 00/$50. 00 ? 1,000 shares of stock. (b)1,000 shares ? $2. 00 ? $2,000. 00 per year before tax. $2,000. 00 ? 0. 85 ? $1,700. 00 after tax. (c)($1,700. 00 ? 10) ? $50,000. 00 ? $67,000. 00. (d)$ 50,000. 00 ? 0. 05 ? $2,500. 00 per year before tax. $2,500. 00 ? 0. 67 ? $1,675. 00 after tax. (e)($1,675. 0 ? 10) ? $50,000. 00 ? $66,750. 00. (f)They should purchase the stock. Even though the annual interest from the bonds is more than the dividend income from the stock, after taxes the Pangs will have more money from the dividend income than from the interest income. 4. Cash FlowAmountRateTax (a)Interest$1,00028%$280 (b)Dividends$3,00015%$450 (c)LT Cap Gains$2,00015%$300 (d)ST Cap Gains$2,00028%$560 Solutions to Case Problems Case 1. 1? Investments or Golf? This case illustrates the many facets of the investment process; it involves much more than common stock. The authors recognize the value of physical education and emphasize the importance of sports, but a course in investments offers the student a lifetime of financial benefits. Thus, our arguments for selecting the investments course should not be interpreted as a negative statement on physical education, but rather as a positive discussion of the merits of investments. (a)The term investments refers to the process of identifying, evaluating, selecting, and monitoring the placement of funds with a view of preserving or increasing value and/or earning a positive return. Judd has simply identified one investment vehicle stock). He will not know how to evaluate other vehicles, select investments, or monitor them without a course in investments. In addition to looking at his own investments, a course in investing will give Judd a new perspective on the role of investments in the economy. He will learn that as an investor, he is actually supplying funds to government and business which will enable the continued strength and growth of the general economy. (b)Clearly, Judd has ignored short term securities, bonds, options, commodities and financial futures, mutual funds, real estate, tangibles, tax shelters, and limited partnerships. Each one of these vehicles offers another risk reward relationship that may meet certain unique investment requirements that cannot be met by common stock alone. (c)Judd does not have the knowledge needed to carry out the investment process described in question 2. Knowing about common stocks is not the same as understanding investments. There is no reason whatsoever to assume that common stock is the best investment available to Judd. Besides, the investment decision has to be compatible with his goals. Since Judd is just starting his career, in all probability he will not want to choose risky investments. Stocks are far riskier than, say, an investment in CDs. There are other considerations too. Does Judd have plans for the future when he will need the money? If so, is it a short term or a long term need? Answers to these questions will help determine whether he should make short term or long term investments. In summary, to gain an understanding of the investment decision and management process, Judd should pass up the golf course in favor of the investments course. Case 1. 2? Preparing Carolyn Bowen’s Investment Plan This case allows students to evaluate a proposed investment plan aimed at achieving certain retirement goals. a)The amount currently available to Carolyn includes $60,000 from the proceeds of the life insurance and $37,500 from her savings account, or a total of $97,500. At 6 percent compounded annually, her money will be worth: If she retires at age 62 (7-year investment): $97,500 1. 504 $146,640 ? $112,500 (house) ? $259,140 If she retires at age 65 (10-year investment): $97,500 ? 1. 791 $174,622. 50 ? $127,500 (house) ? $302,122. 50 (The future-value interest factors can be found in Appendix B, Table B. 1. ) (b)Value of Carolyn’s assets at 62 ? value of savings account ? alue of house: $146,640 ? $112,500 ? $259,140 Similarly, value of assets at 65 ? $174,622. 50 ? $127,500 ? $302,122. 50 Carolyn’s annual income at age 62 would be $259,140/12. 659 ? $20,470. 81 Carolyn’s annual income at age 65 would be $302,122. 50/11. 118 ? $27,174. 17 (c) Annual Retirement Income Age 62 RetirementAge 65 Retirement Annual S. S. Pension Fund Benefits$16,308. 00$20,256. 00 ?Annuity Income20,470. 8127,174. 17 Total Annual Retirement Income$36,778. 81$47,430. 17 (d)Carolyn needs $45,000 per year (before taxes) of retirement income. Without considering the change in her tax status upon retirement, she will not satisfy this goal if she retires at age 62. At age 65 she meets her requirement. The nature of tax legislation and the reduction in Carolyn’s tax liability upon retirement may make retirement at age 65 viable. (e)Carolyn’s plan is extremely conservative and low risk. The returns from the plan are very secure and probably assured. Carolyn can be confident that the accumulated worth of her investments will be available to her at retirement. Her plan to retire at age 65 meets her retirement -income goal. Carolyn’s plan offers low risk and low return.. Through only a slight increase in risk, she might improve her return on investment and have more â€Å"cushion† to allow for inflation and unexpected expenditures. Carolyn could purchase highly rated bond, CDs, and other blue chip security investments. In this manner, her risk aversion would be satisfied, and she would earn a higher return on her investments. This should permit more likely achievement of her retirement-income objectives. Therefore, with very little increase in risk, Carolyn could invest her funds in vehicles that will increase the probability that she will meet or surpass her requirement of an annual retirement income of $45,000. How to cite Chapter 01 Gitman, Essay examples

Music of Bangladesh Essay Example For Students

Music of Bangladesh Essay Tape Chowder, been less visible in the ass * Tape Chowder: went solo after beginning career in Souls * Warfare: emerged in mid-eighties as hard-rock band ND initiated rock era of Bangladesh * Beauty Ads from Chitchatting (Winner 2002 Benson and Hedges Best Vocal) * Nemesis: Hugely popular alt-rock band, currently recording their 2nd album. * Powerhouse: One of the oncoming successful Heavy metal bands. Rabin signage * Ibid: the youngest artist in à ©tagà ¨re song * Attica Islam: deceased * Famed Shattuck * Fiat Era Dean: contemporary * Kali Shari * Mila All: contemporary * Mitt Huge * Reawaken Chowder Banyan * Said Mohammad Tactfully * Chancel Khan: contemporary/living abroad (wry. Chancellor. Mom) * Cabal Aimed: living abroad Sierras Sealskin: contemporary/living abroad (Sydney, Australia) * Lily Islam: contemporary * Sanded Shattuck: contemporary, better known as a specialist in Rabin signage and as the founder of Dachas popular music school, Cannot * Chider Ihram: Sadden Siberi a: living abroad (USA) Classical music This article is about Western art music from 1000 AD to the present. For Western art music from 1750 to 1820, see Classical period (music). For other classical and art music traditions, see List of classical and art music traditions. Montage of great classical music composers. From left to right: Top row Antonio Vivaldi, Johann Sebastian Bach, George Frederic Handel, Wolfgang Amadeus Mozart, Ludwig van Beethoven; second row Coaching Rossini, Felix Mendelssohn, FRR ©d ©rice Chopin, Richard Wagner, Giuseppe Verdi; third row Johann Strauss II, Johannes Brahms, Georges Baize, Photo Illicit Tchaikovsky, Antonio Devoid; bottom row Advert Grief, Edward Legal, Sergei Rachmaninoff, George Gershwin, Arm Chattering Classical music is the art music produced in, or rooted in, the traditions of Western liturgical and secular music, encompassing a broad period from roughly the 1 lath century to present times. L] The central norms of this tradition became codified between 1550 and 1900, which is known as the common practice period. It should not to be confused with the Classical Era. European music is largely distinguished from many other non-European and popular musical forms by its system of staff notation, in use since about the 16th century. Western staff notation is used by composers to prescri be to the performer the pitch, speed, meter, individual rhythms and exact execution of a piece of music. This leaves less room for practices such as improvisation and ad labium ornamentation, that are frequently heard in non- European art music and popular The term classical music did not appear until the early 19th century, in an attempt to agonize the period from Johann Sebastian Bach to Beethoven as a golden age. The earliest reference to classical music recorded by the Oxford English Dictionary is from about Contents * 1 Characteristics * 1. 1 Literature * 1. 2 Instrumentation 1. 3 Form * 1. 4 Technical execution * 1. 5 Complexity * 1. 6 Society * 2 History * 2. 1 Roots * 2. 2 Early period * 2. 3 Common practice period * 2. 3. 1 * 2. 3. Classical period music * 2. 3. 3 Romantic era music Baroque music 2. 4 20th-century, modern, and contemporary music * 3 Significance of written * 3. 1 Modernist view of the significance of the score * 3. 2 Criticism of notation the modernist view * 3. 3 Improvisation * 4 Relationship to other music traditions * 4. 1 Popular music * 4. 2 Folk music * 5 Commercialism * 6 Education * 7 See Characteristics Given the extremely broad variety of forms, styles, genres, and historical periods generally perceived as being described by the term classical music, it is difficult to list characteristics that can be attributed to all works of that type. Vague descriptions re plentiful, such as describing classical music as anything that lasts a long time, a statement made rather moot when one considers contemporary composers who are described as classical; or music that has certain instruments like violins, which are also found in other genres. However, there are characteristics that classical music contains that few or no other genres of music contain. Literature The most outstanding and particular characteristic of classical music is that the repertoire tends to be written down. Composers and performers alike are typically giggly literate in understanding notation and the written quality of the music has, in addition to preserving the works, led to a high level of complexity within them. Edit] Instrumentation The Dublin Philharmonic Orchestra performs Tchaikovsky Fourth Symphony. The instruments used in most classical music were largely invented before the mid-19th century (often much earlier), and codified in the 18th and 19th centuries. They consist of the instruments found in an orchestra, together with a few other solo instruments (such as the piano, harpsichord, and organ). The symphony orchestra is he most widely known medium for classical music. The orchestra includes members of the string, woodwind, brass, and percussion families. Electric instruments such as the electric guitar appear occasionally in the classical music of the 20th and 21st centuries. .uc35ae37d906e4d33c75aec5e4d832dc2 , .uc35ae37d906e4d33c75aec5e4d832dc2 .postImageUrl , .uc35ae37d906e4d33c75aec5e4d832dc2 .centered-text-area { min-height: 80px; position: relative; } .uc35ae37d906e4d33c75aec5e4d832dc2 , .uc35ae37d906e4d33c75aec5e4d832dc2:hover , .uc35ae37d906e4d33c75aec5e4d832dc2:visited , .uc35ae37d906e4d33c75aec5e4d832dc2:active { border:0!important; } .uc35ae37d906e4d33c75aec5e4d832dc2 .clearfix:after { content: ""; display: table; clear: both; } .uc35ae37d906e4d33c75aec5e4d832dc2 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uc35ae37d906e4d33c75aec5e4d832dc2:active , .uc35ae37d906e4d33c75aec5e4d832dc2:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uc35ae37d906e4d33c75aec5e4d832dc2 .centered-text-area { width: 100%; position: relative ; } .uc35ae37d906e4d33c75aec5e4d832dc2 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uc35ae37d906e4d33c75aec5e4d832dc2 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uc35ae37d906e4d33c75aec5e4d832dc2 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uc35ae37d906e4d33c75aec5e4d832dc2:hover .ctaButton { background-color: #34495E!important; } .uc35ae37d906e4d33c75aec5e4d832dc2 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uc35ae37d906e4d33c75aec5e4d832dc2 .uc35ae37d906e4d33c75aec5e4d832dc2-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uc35ae37d906e4d33c75aec5e4d832dc2:after { content: ""; display: block; clear: both; } READ: Music for survival or a luxury EssayBoth classical and popular musicians have experimented in recent decades with electronic instruments such as the synthesizer, electric and digital techniques such as the use of sampled or computer-generated sounds, and the sounds of instruments from other cultures such as the gametal. None of the bass instruments existed until the Renaissance. In Medieval music, instruments are divided in two categories: loud instruments for use outdoors or in church, and quieter instruments for indoor use. The Baroque orchestra consisted of flutes, oboes, horns and violins, occasionally with trumpets and timpani. Many instruments which are associated t oday with popular music used to have important roles in early classical music, such as bagpipes, values, hurdy-grudges and some woodwind instruments. On the other hand, instruments such as the acoustic guitar, which used to be associated mainly with popular music, have gained prominence in lassie music through the 19th and 20th centuries. While equal temperament became gradually accepted as the dominant musical temperament during the 19th century, different historical temperaments are often used for music from earlier periods. For instance, music of the English Renaissance is often performed in monotone temperament. Keyboards almost all share a common layout (often called the piano keyboard). Form Whereas the majority of popular styles lend themselves to the song form, classical music can also take on the form of the concerto, symphony, sonata, opera, dance

Department of Corrections

Objectives The Department of Corrections has many challenges and uncertainties. There are more uncertainties in this department because the job done each day is highly influenced by external factors. This makes it difficult for workers in this department to predict the number of inmates who will come in or the number that will be received.Advertising We will write a custom case study sample on Department of Corrections specifically for you for only $16.05 $11/page Learn More It is difficult to even plan for the day-to-day work in the Department of Corrections. As professionals of this department report to work on a daily basis, they never have an idea of what is going to happen. It is, therefore, important to implement an information technology system to improve the level and efficiency of services. This will have a positive impact on all the departments’ stakeholders. An information technology system will help stakeholders achieve their objective s. It is important to note that the overall objective of the Department of Corrections is to ensure a peaceful and safe society. This is done through enforcing court sentences, ensuring that prisoners are held in safe custody where their human dignity is observed and respected, and ensuring that the social responsibility of the inmates is developed. In addition, the Department of Corrections ensures that all inmates are developed in relation to their community corrections. Objectives of the departmental stakeholders should also be achieved in the process of achieving the general objectives of the department. Among the stakeholders in the department include police agencies, employees in the department, court persons, inmates, as well as the government itself (Pearlson Saunders, 2013). In this case, Robin was responsible for ensuring that the information system to be implemented met all the needs and expectations of the stakeholders. Among the objectives was ensuring that a proper re gister of inmates was maintained. This was a major objective that would be beneficial to the departmental workers. For instance, Donna the Head of state Department of Corrections had worked there for a long period and she had experienced stories of inmates who had been released before their time due to a poor register of inmates. The major reason for these early releases was computer errors. This means that those involved in maintaining the register had hard times due to the poor systems that led to poor registers. Upgrading the information systems to maintain a proper register would also be beneficial to the court, police agencies, government, and employees in general (Pearlson Saunders, 2013). Court sentences are given based on the severity of crime committed. A sentence is aimed at ensuring that the inmate reforms within the given period and the society is kept safe from criminals. The court’s objective might not be achieved if inmates are released earlier.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Inmates’ reformation and society’s safety are also the objectives of police agencies and employees, as well as the government. In this case, the new project will ensure that the Department of Corrections in this county will be interacting with the federal government. The other objective of the project is to increase the safety of inmates while in the facility. There have been reports of inmates being bullied by fellow inmates while in the facility. This problem can be dealt with through installation of surveillance cameras in strategic places where the staff on duty can see what is happening throughout the facility from a central position. This will facilitate timely action whenever such cases are observed. Another objective that will be of benefit to the inmates is that appropriate facilities will be provided. Inmates’ work progra ms’ optimization will also be improved and made more efficient. This will help inmates in their rehabilitation process. Inmates will be able to learn and correct their conduct more effectively. It will be advantageous to the community and the government since safety will increase once the inmates are reformed. Current situation in the Department of Corrections The project being assigned to Robin is of high profile since the current situation in the department is not efficient and effective. The importance of the project was highlighted by the governor’s brief appearance in the meeting. Although the new governor seemed opposed to spending on such an upgrade, the project that was started by the former governor was funded halfway by the federal government, further indicating its importance. The register of inmates is not maintained effectively in the current situation. It is difficult to precisely determine the time an inmate comes in and when they should leave. Consequen tly, there have been cases of inmates being released earlier before their sentences are over. As Donna puts it, she had witnessed stories of inmates being released earlier than expected due to computer errors. Donna has worked in the legal system for over twenty-five years. Another situation currently indicates a poor system, thus computer errors are numerous. There is a high probability of losing important data and information when computers have errors. There is also likelihood that information can be leaked to the wrong people and end up being altered or corrupted. Loss of data might lead to serious problems in the department. Corruption of such data can also be highly risky to the department. These problems could have resulted from an information system that was poor and downgraded. It is imperative to note that technology development has advanced in the current world, thus it is worth upgrading the systems in government departments.Advertising We will write a custom case s tudy sample on Department of Corrections specifically for you for only $16.05 $11/page Learn More Technology facilitates innovation, thus upgrading the information system in the Department of Corrections will make it possible for better and improved services to be provided to all the stakeholders. Better systems will make the work of employees easier since employees will not have to deal with cases of computer errors. There is poor communication between the Department of Corrections and the federal government. Communication is vital for effectiveness and success of any organization. The effectiveness of the department is compromised when there is poor communication. Being a government department, it is important that the Department of Corrections communicates effectively with the federal government. It could be as a result of poor communication between the department and the federal government that no federal representative was invited in the meeting. This l ed to the meeting not being successful due to the high political nature that was witnessed. Root Cause As usual, every problem has a root cause. It is this root cause that needs to be first identified before any corrective actions are initialized. From the case in question, it is clear that the root cause of the problems in the Department of Correction is poor information systems. It is difficult to maintain records due to the poor information systems in the department, thus there is high risk of data loss. It is also difficult to ensure effective services. Most of the employees and stakeholders in the department seem to have high knowledge of the legal systems in place. However, they do not have any knowledge or they have little knowledge about the information system. Employees in this department are said to prefer doing jobs the old fashioned way. For instance, Donna, the head of the state Department of Corrections is said to have no knowledge regarding information technology, des pite having a lot of experience regarding the legal system. Donna was, therefore, not supportive of the upgrade since she preferred doing things the old fashioned way. Lack of stakeholders’ support could be another reason why the information system was poor and downgraded. Donna’s assistant was more supportive of this project because he was computer savvy. He seemed more enthusiastic about the upgrade. It can be concluded that the root cause of the problems currently in the Department of Corrections is the poor information system that is as a result of lack of IT knowledge among stakeholders and their failure to support systems upgrade.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Achievement of the Department of Corrections’ objectives is hindered by these problems. For instance, the main aim of this department is to ensure safety of the society through enforcement of the sentences imposed on suspects by the court. The department also aims at ensuring safe custody of inmates. It is also the duty of the Department of Corrections to facilitate community corrections. However, achievement of these objectives has been a challenge since inmates have been reported to be released earlier before their sentences are completed. The major reason that leads to early release of inmates is poor maintenance of registers. There should be a clear record that indicates the time an inmate joins the prison, the sentence that has been imposed on him or her, and the time he or she is supposed to leave the facility. However, according to the case, there they are poorly maintained records if there are any records. Consequently, inmates end up being released earlier than their sentences. Computer errors are many due to poor information systems and workers who have little or no knowledge regarding information Systems. This makes achievement of the departments’ objectives a challenge. Options Once the problems have been identified and the root cause determined, the next important stage is to establish how these problems can be solved. Finding a solution to problems requires a lot of knowledge and skills since this is the most critical point in the problem solving process. In addition, problem solving is the most critical point during development of a project. A bad solution to problems will have negative impacts on the organization in the long run, thus it is important to ensure good solutions are found from the beginning. In the current case, the situation in the Department of Corrections is that the information system is poor, stakeholders have little or no information technology knowledge, some of the stakeholders are not supportive of the projec t, and there is poor communication within the department (Pearlson Saunders, 2013). The register of inmates is poorly maintained due to poor systems. There are few options for solving these problems. First, it is important to ensure that all the involved personnel are supportive of the project. Professionals who have no IT knowledge should then be trained and made aware of the importance of using improved IT systems. The other option is ensuring that employees who are experts in information system are employed, in addition to the current employees. It is stated that the current employees have knowledge and experience in the legal system, but they have no idea on information technology. In this regard, employing IT experts could be a considerable option to complement the current professionals. The impact of each of these two options on the department would be different, but they would give almost similar results if not exact results (Pearlson Saunders, 2013). The former option will be cheaper since no costs will be incurred by employing new professionals. The costs incurred in new recruitment include advertisement, recruitment, and induction among others. The second option will be expensive. However, it will have better results since the new employees will have IT specialization. IT knowledge among employees will ensure good registers, proper communication and effective services. The next step in solving the problem will be implementing the advanced IT systems. This is the main job that Robin has been assigned. Her consultancy firm is supposed to ensure that the current problems in the Department of Corrections are solved by upgrading the current information technology system. There are two options that can be considered for this process. The first option is to upgrade the current system without major changes being implemented. The second option would be to change the system completely and implement an entirely new and advanced system. Each of the two options will have varied impacts on the organization. The first option will be cheaper since no major changes will be put in place. Upgrading without major changes is relatively cheaper. However, this might not give the required results. The resultant system may not be fully effective, although it will be better than the current. The second option will have more impact in terms of finance. However, the results will be better since a completely new and advanced system will be implemented. The new system will be more effective compared to upgrading the current one without major changes. Recommendations Drawing from the above listed alternatives, I would recommend that the best options be adopted to ensure full effectiveness of the project. However, it is important to take into consideration the costs of each option. It is also important to take into consideration the fact that the new governor is concerned about spending on IT upgrade, thus he is keeping expenditures at the lowest level poss ible. Having this in mind, I recommend that the current employees be trained on how to use information technology and the importance of such projects. This will be cheaper compared to employing new IT professional. I would recommend the cheaper option since staying within the budget of the available $100 million is of ultimate importance, considering the fact that the results would almost be similar (Pearlson Saunders, 2013). On system implementation, I recommend a total overhaul of the current system and implementation of a new advanced system. A new advanced system will be relatively expensive, but it will yield better results. The system will improve the effectiveness of the department and facilitate achievement of stakeholders’ objectives. Reference Pearlson, K., Saunders, C. S (2013). Managing and using information systems: A strategic approach Hoboken, NJ: John Wiley Sons. This case study on Department of Corrections was written and submitted by user Jorge Winters to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

BSA375 Week Four Essay

BSA375 Week Four Essay BSA375 Week Four Essay BSA375 Week 4 Lecture Development & Implementation of Software This lecture will examine several additional areas related the development and implementation of software. First of all many organizations must compare and evaluate the costs and schedule tradeoff of building an information system in house versus buying a vendor software product versus having a custom system built by contractors. A number of organizations continue to build their own software today but usually do not spend resources developing standard administrative applications such as payroll, human resources, or accounting which can be purchased as Commercial off the Shelf software. Commercial off the shelf software is often referred to as COTS. In many instances, where an organization has a development staff, those resources will often be put to use developing information systems that can increase the profitability of the organization as well as those that which might provide a competitive advantage. The most popular reason behind purchasing and using the COTS alternative today is that the software can be acquired and installed within a reasonably short time frame with the functionality required. As previously stated, it is often more cost effective to acquire and install an administrative information system from a vendor if it will not provide any competitive advantage to the organization. Another reason for acquiring a COTS information system is the ability to acquire an information system that has been built by industry "experts" with expertise that doesn't exist within the organization. The need to customize software is usually the result of unique requirements identified by the end user management. The context in which customization is being discussed here is not the same as in-house development. This context for customization is related to the use of a COTS purchased information system. A valid situation for a customization can occur when the basic functions, data capture, and information output of the COTS acquired software appears to be good but not quite adequate fit to the requirements needed by the organization. Although customization does take place, a critical element is the access to the source code for the application. While it might be possible to acquire the source code from the software vendor, it might also be cost prohibitive to do so. Additionally, the modification to the COTS source code would likely eliminate vendor support of the product. The approach most often taken when using COTS is to develop customized interfaces from existing information systems to pass data into the COTS application as well as developing customized reports to satisfy management requirements. This approach is often a successful implementation strategy into today's information technology environment. Another aspect of customization in today's COTS environment is products that can be customized or parameter driven to meet the needs of many organizations. Leading COTS packages such as SAP, BAAN, Lawson, and Oracle can be customized to meet Copyright  © 2007 University of Phoenix. All Rights Reserved. the needs of different organizations in different industries. This form of customization does not modify the source code but utilizes organization data that is populated in the database along with operational parameters that will allow the software to operate as if it has been uniquely developed for the organization. When implementing an information system, there are various testing activities that must take place. The basic premise of testing is to make sure the software is working properly before releasing the software into a production environment. There are testing procedures that can be used to ensure the validity of the software. Unit testing is the typically the responsibility of the programmer. The programmer will usually create test data to make sure the program can process the test data without failure. One mistake occasionally made by the programmer is to

Do you believe it is fair or reasonable that snapshot photos of famous Essay

Do you believe it is fair or reasonable that snapshot photos of famous or well-known people taken for personal reasons become open to public scrutiny - Essay Example The other approach towards accomplishing this is through the establishment of a establishing a monitoring system aimed at solely monitoring for legitimate and stated personal-related reasons. For this reason, the monitoring policy will have to be to be given sufficient support of their respective users with the intent of monitor, as well as the reason for the same. This will also include a form of monitoring to be used. Good monitoring approach will have to address computer, Internet, and e-mail use with the sole purpose of eliminating any possible mishaps where the privately meant pictures remain confidential. The state privacy laws keep varying hence the need to keep consulting with relevant attorneys with sufficient experience in employment law while a company is drafting electronic communication monitoring and usage policies. Even as it remains critical that the individual’s right to privacy for personal pictures do not negatively affect the public image and loyalty. Furth er, rigid policies for personal application of communication platforms translate into sustainable relationships. Concerns exist in determining the professionalism of social media handlers. It is because posted content today could alter the public views to such degrees that they are not recognizable. Legislators in United Kingdom suggest that such online platforms should be held liable in preventing users from being in a position of to posting anonymously (Vermaat 34). It is aimed at effectively tracking down the issue. Ethical issues at the technology keep arising with regards to gathering information, disclosing, assessing its accuracy, and correcting it including the issues that are related to the substance of the information by itself. The simple knowledge that an individual is entitled to personal pictures will generate an understanding that one feels overly

Digestion and Enzymes Assignment Example | Topics and Well Written Essays - 1500 words

Digestion and Enzymes - Assignment Example More protein is additionally required to match the active growth by rapidly dividing cells. At this stage also, there is need to provide sufficient vitamins in general, in order to build a strong immune system. Iron and zinc levels such as in legumes are important to lower risks of allergic reactions. Adolescents equally require more carbohydrates and proteins to match their rapid growth rates and active lifestyles. An increase of calcium and iron intake is recommended for the growing bones. For the females who have started going through their menses, additional iron and fluid intake is highly required to aid in replacement of blood lost during menstruation (Farrell & Nicoteri, 2007, 411). Pregnant women require more than usual iron for efficient oxygen transport in the body, both for the mother’s and baby’s nourishment. Increasing vitamin C intake helps iron absorption from foods. If planning for a pregnancy, 400 micrograms of folate per day is recommended. An increase of daily folate intake to 600 micrograms during actual pregnancy is advised to avoid neural tube defects (like spina bifida). Increase in iodine for normal growth and development of the baby during pregnancy is additionally stressed. For lactating women, an excess of 750-1000 ml a day of fluids is required to reduce the risk of dehydration and constipation as a result of breastfeeding. There basically is an observed increase in recommended nutrient intake for lactating women to provide the nutrients necessary both for the mother’s maintained health and for the optimum nourishment of the baby (Farrell & Nicoteri, 2007, 418). For majority of adults, growth is over as focus now shifts on maintaining good health and active lifestyles. This means low saturated fats, sugars and salts to minimize risks of developing age and weight related diseases such as cardiovascular

Risk Assessment And Decision Making Of Adult Protection

Risk Assessment And Decision Making Of Adult Protection This essay gives an overview of the risk assessment and decision making in adult protection. The main purpose of this essay is to bring a more clear concept of risk; meaning of risk assessment and risk management decision making in adult protection and further it will examine existing based on upon research and evidence finally, it will critically analyse national and local reports which are related to risk assessment. It also contains a section dedicated to the specialized agencies in social assistance and their role in helping vulnerable adults, by creating procedures meant to assure the proper protection and care, offering them security, assistance and guidance to create a normal life. Identify a series of definition of risk and risk management for better understanding the concepts that are aiming to develop. Next, it will connect the existent literature review on this topic to own research. Furthermore, it will present the risks that the adults with disabilities are exposed to, t hat can cause their injury, or even death, as we will understand from a presented case study. Discussing about risk management, risk assessment, it can automatically presume that are referring to a situation in which something might go wrong. According to Hope and Sparks (2000) risk assessment may only able to identify probability of harm or danger, consider the impact of risk on individuals key and pretence intervention strategies which may reduce the risk or minimize the harm. However, assessment does not prevent risk. Risk level (or simply risk) should be seen as a continuous probability statement, rather than a dichotomous variable (risk or no risk) since risk levels are often not stable but fluctuate over time and context, estimates of risk should be in the form of ongoing assessments rather than one-time predictions. The above definition speaks about the fluctuations of risks in time and in different contexts. It recommends that risk should be continuously monitored. Further, in their study, the authors refer to clinical risk assessment, a more related issue to this study. A frequent suggestion for improving the validity of clinical risk assessment is to take into account predictor variables reflecting the environmental or situational context in which violent behaviour is likely to occur, in addition to measuring dispositional, historical, or clinical factors. (Monham and Steadman 1994, p. 8) A more precise definition of the term is offered by Oxford Advanced Learners Dictionary (2010, p.1) the act of identifying possible risks, calculating how likely they are to happen and estimating what effects they might have. Risk is closely linked to dangerousness, resulting in harm which seems to be agreed means harm to self or others and extend of harm which constitutes a risk in various situations especially adult with learning disabilities. Brown (2005) states assessment of risk for adult with learning disabilities which should be evolutionary in nature constantly informed and shaped by changes of circumstances upon service users needs. The practice of risk assessment and management is the process of data collection, recording, interpretation, communication and implementation of risk reduction plan (Brown, 2005). According to Kemshall and Pritchard (2001) every human being becomes vulnerable during their lifetime for many of reasons they all respond differently to events that happen to them because of who they are and the lack of support that they have For the risk of learning disability, clinical model of risk assessment have become the norm. There are two kinds of risk that are relevant to work people with learning disabilities, risk of unnecessary exposure to undesirable events or experience, and risk of negative consequences when possible benefits and desirable experiences are perused (William et al, 2006). Further present a series of acceptance regarding the risk management concept. Risk Management aims to facilitate the exchange of information and expertise across countries and across disciplines. Its purpose is to generate ideas and promote good practice for those involved in the business of managing risk. (Palgrave-journals, 2011, p.1.). In this definition, the risk management is perceived as a discipline, moreover, as a business solution meant to ease the communication flow and to propose a model for the risk management practice across countries and business areas. The concern of this study is not so general. Main focus is upon the risk management in the protection of vulnerable adults. Increasingly responding to the risks of others, preventing risks to vulnerable adults or running risks to themselves is all in days work for the busy practitioners and manager in the field of social care (Brearley, 1982). Adult with learning disabilities are subject to risk all time due to their vulnerability they sometimes abused by those who have control over them or by those who realize that they are vulnerable because of their disabilities they often find it very much more difficult to assess risk the way most of social carer and services do. According to Vaughn Fuchs (2003) adult with learning disabilities they always find this difficult and also fail to recognize any risk at all as they cant explain due to lack of communication. Nevertheless, take risks because they feel vulnerable to a point approaching hopelessness (Fischhoff et al., 2000). In either case, these perceptions can prompt adults to make poor decisions that can put them at risk and leave them vulnerable to physical or psychological harm that may have a negative impact on their long-term health and viability. According to Kemshall and Pritchard (2001) there has been much debate about a welfare model or a criminal justice model should be adopted. Alaszewski (1998) states that, risk is used different ways. It is possible to identify a narrow common sense definition of risk which risk is equated with danger and the negative outcomes of events. Kemshall and Pritchard (2001) indicate that, adults vulnerable protection systems are likely to come under close scrutiny. Protecting Vulnerable Adults, Valuing People (2010, P. 93) states: People with learning disabilities are entitled to at least the same level of support and intervention from abuse and harm as other citizens. This needs to be provided in a way that respects their own choices and decisions. Vaughn Fuchs (2003) state that, the difficulty for a person with learning disabilities is that carers often do feel often they are expected to make these choices for them. The law of negligence often can appear to inhibit decision making personal freedom and choice sit uncomfortably next to the concepts of duty of care and professional liability. Above the study and definition, it needs to identify the risk that a vulnerable adult was exposed to. However, it will not be able to make precise mathematical calculations to exactly identifying the risk factor that the vulnerable adult was submitted to. These studies are mostly concerned with the risk assessment that a mental disordered person can cause to others and to himself/herself. An orientation towards the abuse that other people or the society, through its system, can cause to a disordered person is not clearly presented. The murder of Steven Hoskin has been rendered cold bloodedly by a five peoples in St. Austell, Cornwall on July 6, 2006 (BBC, 2007; Daily Mail, 2007). Hoskin was a 39 years old man with an IQ level equal to a six year old child and living lonely in bedsit when the perpetrators made friendship with him to accomplish their brutal task (Society Guardian, 2007; BBC, 2007). Darren Stewart, the ring leader of the gang, along with his accomplices arrived at his apartment during the night of 5th and 6th July, 2006 (Daily Mail Online, 2007; BBC, 2007). Soon they started torturing and burning his body with cigarettes out of their hate toward his learning disability (Daily Mail Online, 2007). Later on, they coerce him to swallow more than 70 pills of Paracetamol which severely damaged his liver (BBC, 2007). Then they dragged him to the nearby viaduct where he was again stamped on and lashed out by the felons (BBC, 2007; Daily Mail Online, 2007). He was then forced to jump from a 100 feet tall b ridge (Daily Mail Online, 2007). Later on, he was found dead in the river (BBC, 2007). The crooks were later arrested and penalized by the court (BBC, 2007). The question arises here is that why this event occurred in the first place? Why the concerned authorities failed to protect him from the perpetrators even after the fact that some agencies (e.g. adult social care) know about his mental condition (Ahmed, 2007) and let him die helplessly? This is the subject of next discussion. It was found in the investigation report of multiagency that Hoskin has cancelled his contact with the adult social care unit some days before his death (Society Guardian, 2007; BBC, 2007). This unilateral suspension was not taken seriously by the authorities and did not bother to inquire into the matter seriously (Ahmed, 2007). It was also found that he tried to contact many emergency service agencies nonetheless the matter was considered as a routine and over looked by the officials (Ahmed, 2007). Cornwall Adult Protection Committee (2007) report, before his death Steven Hoskin gave up his social care protection. Hoskin was placed in a bed-sit by adult social care in April 2005 and he was allocated two hours of help each week, but he chose to cancel the service in August and by September the council closed his case (Community Care, 2007, p.1). The institutions involved in investigating Hoskins death and the reasons for which the specialized social cares agencies failed to prevent his death, didnt searched on how and why did the man gave up his rights of social care. The multiagency report further indicated that every single agency (i.e. Police, the housing association, emergency ambulance and adult social care etc.) did posses some piece of information regarding the conditions of Hoskin owing to the complaints of his neighbours or of himself (Ahmed, 2007). On the other hand no one of them has the complete information that can be used to see the big picture of the situation at hand (Ahmed, 2007). Each one of them was analysing the matter in an isolated environment (Ahmed, 2007). Perhaps, this can be better understood by following the jigsaw approach (Aronson, 1990). In this approach, every member of the group has some minor but important piece of information, nonetheless to make the whole picture complete, every ones contribution is essential (Aronson, 1990). Likewise, in the case of Hoskin, every agency has some minute but important pieces of information about him that can be used to make out what is actually going on with him and help can be la unched to stop the danger approaching toward him (Aronson, 1990). For example, police knew that Darren Stewart, the main murder of Haskin, has already criminal record nonetheless this information was hidden to the adult social care which has the information that Stewart is now being seen with Hoskin (Ahmed, 2007). If these two pieces of jigsaw put together, it is very easy to conclude that Darren Stewart may be planning to do something wrong to the vulnerable Hoskin. Hence, it is clear that the lack of integration was the first drawback found in the previous setup. Second main problem was that there was no mechanism to assemble discrete complaints from the same address several times at the emergency helpline service (Cornwall Adult Protection Committee, 2007). In the multiagency report, it is found that police and ambulance services visited the resident of Steven several times however, these individual complaints were not considered sufficient to alert an authority (Cornwall Adult Protection Committee, 2007). At the call centre, each time when a person in emergency calls, the phone is picked by some random person and the information remain isolated from the other people. There was no such system in place that can assemble the complaints from a unique address which can be used to raise alert (Cornwall Adult Protection Committee, 2007). Third important problem was the lack of effective communication within an emergency service agency (Ahmed, 2007). For example, Carol Tozel, the director of adult social care, was unaware of the death of Hoskin until June 2007 (Ahmed, 2007). Carol Tozel was taken aback at the extreme lack of intra-communication in her department (Ahmed, 2007). Moreover, she was not provided any risk assessment review regarding the unilateral suspension of adult care services by Hoskin (Ahmed, 2007). This may be due the absence of any alert which her agency failed to raise for Hoskin or the common red-tape problem prevalent in governmental agencies almost all over the world. Another significant issue was the reduction in the budget of social care services agency for disabled and old aged (Forder and Fernà ¡ndez, 2010). The politicians have played a prominent role in the reduction of budget for this purpose (Forder and Fernà ¡ndez, 2010). It is sorrowful to know that there are millions of pounds available for buying bombs to through at Iraq and Afghanistan however there is little money available to spend on the social care services of helpless and disabled persons. Steven Hoskin was a vulnerable man who did not receive the professional help that he ought to. The specialized institutions mistreated the case and because he had no protection, the man was brutally murdered. Only after Stevens murdered his case considered and in addition identified as a vulnerable adult. The agencies responsible for social care did not make the clear connections to determine the man a vulnerable adult while he was still alive. According to the Adult Protection Act.(1989 p.1) R.S., c. 2, s. 1 an adult in need of protection means an adult who, in the premises where he resides, (i) is a victim of physical abuse, sexual abuse, mental cruelty or a combination thereof, is incapable of protecting himself therefore by reason of physical disability or mental infirmity, and refuses, delays or is unable to make provision for his protection therefore, or (ii) is not receiving adequate care and attention, is incapable of caring adequately for himself by reason of physical disability or mental infirmity, and refuses, delays or is unable to make provision for his adequate care and attention. After learning the atrocities that Hoskin was exposed to, there is no doubt about the fact that he was a vulnerable adult, in need of protection. According to a report issued by Devon County Council (2007, p.1) an abuse to a person in need is also when he/she is neglected and specialized authorities failed to act upon his/her problem. Hoskins problems were long time ignored and through the end of his life he did not benefit of the protection guaranteed by his rights as an adult in need, also because of the bureaucracy of the social care system, which at the time implemented a ration of the time and resources. Hence, because the man was not considered a vulnerable adult (his needs criteria were established within low to low moderate), the authorities just pulled him out of their system (An independent management review, cited in Community Care, 2007). From the Community Care website we find out that social care representatives are being investigated for failing to prevent the abuse upon Steven Hoskin. According to the online publication Community Care (2007), the agencies in charge with protecting Hoskin missed more than 40 opportunities to help the man and to prevent him being killed. As keep on investigating this subject, other interesting facts about this case are being revealed. According to Health Service Journal (2008, p.8) the man who took advantage of Hoskins mental state, into living with him, was also a mental disordered person. His own history was chaotic: from being a runaway child, he became a violent and self-harming young man, leading a nomadic existence and making frequent suicidal gestures. He had convictions for arson and assault. Here is another case of authoritys incompetency. Because of the repeated calls to hospital, the ambulance service representatives acknowledged the fact that Steven Hoskin was sharing his accommodation with Darren Stewart, who was no stranger to them. They even called police to join them in several actions, to Stevens apartment, because they knew that Stewart, who shared the bed-sit with Steven, was a very dangerous man (Health Service Journal, 2008). Evan so, because neither the police nor the ambulance service communicated this fact to the social assistance institutions, the case was further neglected. Further discuss about some procedures that the social care institutions need to follow for avoiding cases like Steven Hoskins to happen. Actually, Hoskins case was the base of many new regulations for the social care institutions: No Secret refers to this case. Created in November, 2003 the Adult Protection and Decision Act. Provide a rate of tools to assist adults (19 and older) who have some diminished ability to make their own decisions (Health and Social Services, 2010 p.1). The No Secrets (2000) guidance refers to the adult being any person of 18 and older. According to Health and Social Services (2010), the tools refer to decision making and representation agreements, guardianship appointed by court and adult protection for persons who are unable to look out for them and to search for help when abused or neglected. Hence, the Health and Social Services (2010) definition of a vulnerable adult, the adults who need protection are the ones who are not able to make their own decisions Studying Hoskins case; we learnt that the man cancelled his social care assistance. Knowing these facts, an interesting question arises how was Steven Hoskin allowed to cancel his social care program if he was acknowledged as a vulnerable patient, incapable of taking decisions and to protect himself? Unfortunately there have no evident information to understand the context in which the man gave up his social care rights and what authority and on what grounds approved the mans request, as these issues were not investigated. The single information that have for this issue, was found in the Community Care article (2007), which presented Ray Jones (former social service director Cornwall Council) findings on the case. The Cornwall Council was, at that time, limited to adult care with critical needs. As seen above, Hoskin was considered a low to medium low case, so his was dropped, according to Ray Jones. This is the only statement that we found regarding Hoskins cancellation of his social assistance rights. No Secrets (2000) sates that, guidance defines the term abuse as a violation of an individuals human and civil rights by any other person or persons. (2:9). Cornwall Adult Protection Committee (2007) presents in its serious case review study the measures created in order not to neglect adults with mental disorders and to prevent them of being harmed. A first recommendation would be to identify the disabled adults who live in a certain community (within conferences and meetings between multi-agencies meant to discover the persons who abused the ambulance or police services and that neighbors identified as problem-makers or disordered persons; by enhancing the communication between the social care institutions through trainings and communication conferences; by improving the information sharing across the statutory agencies; by raising community awareness and understanding about the identity and the possible behavior of vulnerable adults). The No Secret (2000), guidance also imposes procedures for the statutory agencies to follow, when dealing with a case of vulnerable adult abuse. It is needed to indentify the responsible and relevant agencies (3:14). This is a very serious concern, because in order to understand how a vulnerable adult should be taken care of, one needs to understand which the institutions are involved in offering protection and support to vulnerable adults. Among the statutory agencies, such as commissioners of health and social care services, providers of sheltered and supported housing, police, regulator services, the guidance also specifies other actors as relevant agencies: voluntary and private sector agencies (3:14). The guidance also suggests creating a multi agency management committee, which should consist of the leaders of the appointed agencies, in charge with identifying objectives and setting priorities, coordinating activities between agencies, creating training programs, monitoring and reviewing the progress of the institutions responsible for the vulnerable adults welfare. (3:15). From studied case, Steven Hoskin was also the victim of the agencies negligence. The specialized institutions who were in charge with the mans health status did not communicate amongst each other the reactions that they observed his behaviour. Other actions established in the No Secrets (2000) guidance frameworks, to identify roles and to appoint authority; to develop procedures that need to be followed by the agencies involved in the social care system. To protect the vulnerable adults confidentiality, as much as possible (the act specifies that a disabled persons identity should only be communicated on need to know basis); to involve the local authority in this matter (for instance, local police should work closely to the directly appointed agencies by communicating their observations) and all the actions that the multi-agency management committee undertake should be submitted to an annual audit in order to establish if its policies and strategies were correctly applied (No Secrets 2000,3 : 15, p 17, 18). The Adult Protection Committee (2007) serious case review, also proposes an induction procedure, as part of the training policy, which is to be undertaken every three years. Within the training plan, as part of the supervision, there is also included a day to day supervision. (Cornwall Adult Protection Committee 2007, p.16). These procedures are followed in Cornwall district but this seems to be an effective model that could be established in the social care system, in general. Following these rules and suggestions, the risk assessment is supposed to decrease. Just by communicating certain observation that an institution makes upon a vulnerable adult, this could bring many changes. Should a care assistant observe certain reactions at a disabled person and he/she doesnt assure that the monitored observations are treated with the proper gravity, the treated vulnerable adult can suffer greatly, because his/her symptoms were not detected on time (Adult Protection Committee, 2007). This is why, all the social care workers should be trained and their tasks and completion of their work to be daily supervised. This requires a more complex system, in which there should be included different levels of co-ordination. Within such a bureaucratic system, another risk factor interferes, the long communication flow which can cause information losses or redundant data (Adult Protection Committee, 2007). This also encounters a beneficial factor the different interpretation forms of certain information. According to Adult Protection Committee (2007), as in the case of a common work of different specialized social care institutions, the agencies can interpret differently a communicated problem related to the vulnerable adults monitored problems. Consequently, inter-communication and the information exchange between multi-agencies are so important. If certain information regarding the disabled adult might seem unimportant for a care institution, one other specialized care agen cy might find it crucial. Like in the case of Hoskin, the police and the ambulance service didnt consider very important the fact the that man made so many phone calls to hospitals and neither the fact that he was living with another disabled man seemed to be reflected as a problem for the police or the ambulance. If these facts would have been further communicated to the social care specialized agencies, the mans live could have been saved. According to Sellars (2002) risks change constantly and people grow, change, and develop. It is important to review risk assessment regularly, and aim always to increase choice and freedom for the people with learning disability. The presented and analyzed case is a serious, sad and unwanted example for understanding that the social care agencies, and other departments involved in the protection of vulnerable adults did not properly did their jobs. After studying the reports and the publications that treated Steven Hoskins case, conclude that the man was the victim of the institutional abuse. His problems were not treated with seriousness, even more; the man was considered a danger to his community because of his lout outburst and violent behaviour. Hoskins case is a clear prove that the institutions didnt take into consideration the mans repeated outburst, obvious factors of risk assessment: his repeated calls to hospitals, requiring ambulance services to his home; the polices visits to his bed-sit (in many occasions required by the ambulance service, aware of the fact that Hoskin was leaving with a dangerous, ex-convicted man, the noisy visits that the neighbours identified with a few months before Steven Hoskins death, coming from his apartment). All these examples were neglected by the agencies responsible for Hoskins case. Actually no institution took into consideration that the man was vulnerable. He was known to have severe learning problems, having the IQ of a six year child. These are serious facts which prove that the man was a vulnerable adult, not able to make decisions for his own welfare and not able to take care of himself. The authorities involved in Hoskins case didnt properly manage the mans life. They didnt ev en properly investigated the mans abuse and the reasons that brought him in the situation that caused his death (what determined him to cancel his social assistance program, or did he really cancelled it, who approved this, how did Hoskin come to share his bed-sit with one of his murderers, months before his death).