Business & Society ( Ethics & Stakeholder management) Essay

Business & Society ( Ethics & Stakeholder management) - Essay Example A.2: A CEO has to lead by example and John Mackey must be aware of this basic ethical tenet. Else, he would neither have taken the trouble to hide his identity nor chosen the Yahoo! Finance Stock Forum, to air his messages. Yet he persisted with this deception in spite of knowing the implications of his activity. The loss of prestige in the event of his being found out probably did not bother him too much. I would qualify his attitude as being ‘indifferent’ in setting high ethical standards for his company. A.3: A firm’s image is the sum total of its products and social responsibilities. Firms go to great lengths to reinforce their positive images in fields such as corporate governance, social responsibility, environmental compliance etc., in order to attract various stakeholders – employees, suppliers, consumers, investors and regulatory authorities. John Mackey’s activities are definitely harmful for the future of Whole Foods. The specific example of the difficulties faced in its attempts to acquire Wild Oats can be seen A.1: The reality of the situation (or, ‘what is’) is that my boss used official resources for his personal purpose, however insignificant it may be. This was not a one time, inadvertent practice, but indulged periodically with the full knowledge of himself and his subordinates. The normative (or, ‘what ought to be’) behavior demands that personal works are not carried out at the expense of the business. A.2: The boss’s practice is not ethical. He is trying to justify his action by rationalizing. Neither his length of service with the company nor the limit put by himself on the maximum postage at 60 cents, offer any justification for his conduct. If this issue is ignored, one has to answer the logical ends up to which such behavior can be accepted as ethical, in an infinite number of situations. A.3: If his argument of low pay being compensated by his unauthorized use of company resources

The Canterbury Tales Literary Analysis Essay Example | Topics and Well Written Essays - 1250 words

The Canterbury Tales Literary Analysis - Essay Example rough the eye of the narrator, who is a pilgrim himself, apparently ready to appreciate his companions for their worthiness, and also record their condition, their array, and their social degree: â€Å"To telle yow al the condicioun/Of ech of hem, so as it semed me,/And whiche they weren, and of what degree,/And eek in what array that they were inne;† The narrator took his â€Å"tyme and space† to relate his story which means that that he has considered his subjects for a period before putting their descriptions on paper, and his portrayals derive as much from his observation as his individual perceptions and opinions regarding the characters. The characters are described in order of their social rank: the military estate represented by the Knight and the Squire is followed by the clerical estates depicted through the Prioress, the Monk, the Friar and the Parson; and then by the laity represented by the wealthy Franklin to the poor Plowman; the upper middle class is followed by a lower one and the rascals at the end. The pilgrims include: a knight, a squire, a yeoman, a prioress, a second nun, the nuns priest, a monk, a friar, a merchant, a clerk, a sergeant of law, a franklin, a haberdasher, a carpenter, a weaver, a dyer, a tapestry weaver, a cook, a shipman, a doctor of physic, a wife of Bath, a parson, a plowman, a miller, a manciple, a reeve, a summoner, a pardoner, the host and the narrator himself. The number of professions depicted are representative of various sections of the society, and Chaucer presents a rich tableau of his times. The narrator is conscious of the social differences.He respects them, and in his description of the clothing, the accessories, and glimpses of behavior conjures up a wide array of characters. The Canterbury Tales was Chaucers attempt at realism in an era when most of the writers of his time were still engaged with larger-than life heroes; his character live, breathe drink and crack jokes as in real life, and Chaucer

Education Is the Key to Changing Life Styles Essay Example for Free

Education Is the Key to Changing Life Styles Essay Narration essay by Marie Price 3 February 2009 for Engliish 1AMarie Price06 February 2009 I was once a young mother in an abusive marriage, uneducated, sacred, and wondering Is this life has in store me? I learned the hard way that no matter what mistakes I make in my life, with support of family and friends, I was able to choose a better life style through higher education and dedication. At the age of sixteen I got married and had a child. I heard the saying over, and again Just babies having babies. You could not convince me of that back then. As I look back now it was not one of my better choices. I had married a man who was a lot older than me, so therefore I just knew I was all grown up. My mother was not happy to say the least and a shouting match lasted for a few days. I told her if she did not sign the papers I would run away, do it anyway and she would never see me again. So against her better judgment she signed the papers. The first couple of years were good, but then it got abusive verbally as well as physical. Physical abuse is obvious black eyes, and bruises hidden behind sun glasses, and makeup. When there is verbal abuse you are told nobody will ever want you, and that you are to dumb to ever do any thing on your own, or you will never amount to anything. The funny thing about that is after a while for some reason you begin to believe it. After ten years of this, I finally divorced. I was scared and thought I was not going to be able to make it on my own. With a young daughter to support, I took my first step in many to come in my lifes journey, working two jobs to keep a roof over our heads, and it was not easy to make ends meet. I never went to high school; so I believed it was my destiny to struggle for the rest of my life. As a single young parent trying to be the best mother I could be, always at work I missed a lot of time with my daughter, time I wish now I had to do over again. It is 1998 I decided to take my GED test telling myself You will not be to pass this test you never went to school. Well I gathered all my will and took the test anyway; I remember waiting for t he results it was sheer touchier. Then came one of the best days of my life I passed the test. That was the first step in many to happiness that I am still working on to this day. In 1999 while at work at the warehouse I was employed at I met a man named Carlos, who to this day is a big part of my life. He is an educated man who is very well spoken, with lots of great advice. He and I became friends, and talked a lot about peoples choices in life. Carlos is a very wise man with a heart of gold. Trough our many talks I learned a person could do what ever they first, set there minds to and second, have the drive to want to better themselves. He seen something in me that I did not see in myself, the ability to go further in life, I ended up leaving that job for employment in Orange County as a credit processor. Thinking that was the job I would retire from. It did not work out that way; you hear the story over and over on the news, the company goes out of business and the employees are left out in the cold looking for work that is not there. This was at the end of 2007 like so many others could not find work. Bills going unpaid I lost my car first then my house shortly after, and became homeless, so for the first time since I moved out of my moms house so many years ago I felt that I had no where to turn and my ex was correct about not being able to make it on my own, with the feeling of complete despair I phoned my mom telling her my dilemma just wanting some one to talk to, I felt so hopeless, and alone not knowing what to do. Well my mom and brother talked, and then asked me if I wanted I could stay with them until I got back on my feet. I started some classes via mail and very well, one more step toward higher education. So I announced to my family I am going to go to college full time. It is now fall semester 2008 at Chaffey College; I have to my first semester was a challenge and the first couple of weeks I found myself calling my thirty two year old daughter Amy, a couple of times saying I do not think this was such a great idea, I dont know what made me think I could do this. Amy said to meMom dont give up I am so proud of you, and I know you can do this. With a lot of time spent at the writing center as well as the success centers I was able to shock myself once again. I received two (As) and one (B) last semester. Not bad for someone who never went to high school? I still have my struggles, this semester it is math but I am putting in the extra effort coming to campus on Fridays so I can spend all the time I need in the PS 12 math labs, because failing is not an option I have come too far, and I refuse to give up. I believe that without my familys support this wouldnt be possible to achieve my dream of making something of myself. I will be starting a new tradition in my family. I am proud to say I will be the first college graduate in my family. I have two granddaughters Anisa who is sixteen, and Angel who is thirteen. I constantly tell them how important their education is. I am adamant about the fact they will go to college as well, expressing to them how they need to be independent young women and seek higher education. I let them know what a struggle it was for me as a young mother, and how they deserve more in life. Could there be a better life for someone who quits school too young and becomes pregnant? With confidence in ones self and the ability to take it one step at a time all things are possible. When all seems lost friends and family will see in you the things we seem to over look in ourselves. It is not easy to return to school after being out for over twenty years, but I am here to say that no matter what mistakes we make in our lives, through hard work and dedication to higher education, all things are possible.

Identify the Differences Between a Cash Flow Statement and a Profit and Loss Account Essay Example for Free

Identify the Differences Between a Cash Flow Statement and a Profit and Loss Account Essay There is undoubtedly, a clear difference between what is termed â€Å"cash† and what â€Å"profit† is and by extension a cash flow statement and a profit and loss statements. Notwithstanding these differences, each statement gives a different yet important view of organisational performance. Cash according to Holmes et al 2005:166 is â€Å"cash in hand and deposits repayable on demand less overdrafts repayable on demand; i.e. they can be withdrawn at any time without penalty. Cash includes cash and deposits denominated in foreign currency. † Once, accounts were comprised of just the balance sheet and the profit and loss statements. However in the late 1960’s, a period characterised as a high inflationary period, it was felt that historical costing convention which is indicative of the profit and loss account, provided information that was outdated and as such provided little insight on the current market value of companies and by extensions their profits. Therefore, there became a need for an additional statement- the cash flow statement. â€Å"A cash flow statement is a statement produced either for management or external reporting purposes showing, by broad categories cash receipts and payments in a period† (Leicester, 2001. 10.3), and is intended to supplement the profit and loss account and the balance sheet. The cash flow statement therefore, assists creditors, investors and generally all stakeholders in evaluating the liquidity and solvency of a business or rather, shows changes in cash be it negative or positive i.e. cash outflows and cash inflows. The Cash flow statement is divided into three main sections: 1.Core operations (operating activities) 2.Investing 3.Financing A typical cash flow statement can be seen in Appendix B. Cash flows from operating activities generally include transactions that are associated with the calculation of income. It also includes items which are involved in the production or purchase of merchandise, the sale of good and/or services to the organisation’s customers and expenditure relating to the general administration of a business. Under the broad heading of investing activities, are found important element relating to cash flow in an organisation. These transactions involve making and collecting repayments on loans, purchasing and selling of plant assets and other productive assets. All other investment activities are generally classified under this heading. â€Å"Changes in debt, loans or dividends are accounted for in cash from financing. Changes in cash from financing are ‘cash in’ when capital is raised they’re ‘cash out’ when dividends are paid. Thus if a company issues a bond to the public, the company receives cash financing. However, when interest is paid to bondholders, the company is reducing its cash.† (Heakal, 2004) It is now important that the issue of profit and the profit and loss account be examined. Profit by definition is the excess of revenue over expenditure. Revenues are increases in the company’s assets from its profit-driven activities, resulting in positive cash flows (inflows). Conversely, expenses are decreases in the company’s assets from its profit-driven activities, which results in negative cash flows (outflows). Net income/profit is therefore, the difference between the two. According to Williams et al 2002:54 if a company’s expenditure exceeds income then the difference is a net loss, suggesting that the enterprise has suffered a loss. Alternatively if the company’s income exceeds its expenditure the difference is a net profit. â€Å"The profit and loss account is a financial statement which shows the profit (loss) made by a business during a defined period of time (normally one year). The account also shows the uses to which the profit has been put (or how losses were financed).† (Jewel 1998:327) Sometimes referred to as the revenue account, the profit and loss statement is divided into four parts: 1.How the profit (loss) was earned 2.The expenditure for the period under review 3.How much was taken by taxation 4.What happened to the profit (or loss) that was left after taxation Appendix A shows a typical profit and loss account. It is a truism that a business must make a profit in order to be successful. This is imperative since profits are needed to pay out dividends to shareholders in the case of a company and to reward partners of proprietors in the case of a sole trader or a partnership. Irrespective of the form of business organisation, â€Å"some profits are retained within the business as reserves or as proprietor’s funds, to finance the development and growth of the business† (Leicester 2001, 3.45). Consequently, although a business can experience occasional losses, it is imperative that it be profitable in the long run. A loss signifies that the value of resources used up in a period to generate sales/revenue is more than the sales/revenue generated in that period. These lose as a result, cause a reduction in the overall value of a business and can eventually lead to the collapse/liquidation of the organisation. When an organisation publishes its profit and loss accounts and a profit is shown, users of the statements may think that the business has â€Å"cash† and in turn expect different benefits. The Shareholders for example, might believe that if the company makes a profit after tax of say $200,000 then the company is in a position to pay out dividends. Similarly, employees might believe that the company can afford an increase in wages in the subsequent year. The fact is â€Å"profit does not always give a useful or meaningful picture of a company’s operations. Readers of a company’s financial statements might even be misled by a reported profit figure† (ACCA, paper 1. 1 Study text June 2003, 360). The fact is that profit does not necessarily mean an increase in cash. For example, an oil company on presenting its final accounts may show a large profit figure primarily because of large amounts of stock which it holds. Although the company may be profitable, it may be experiencing serious cash flow problems. Too much stock therefore according to many writers is tied-up cash and should be avoided as much as possible. Cash therefore according to Larson and Miller 1992:726 â€Å"is the lifeblood of a business enterprise. In a sense, cash is the fuel that keeps a business alive. With cash, employees and suppliers can be paid, loans can be repaid and owners receive dividends. Without cash, none of these things can happen. In simple terms, a business must have adequate amounts of cash to operate.† Hence, profits/losses shown by the profit and loss account and net cash inflow/outflow shown by the cash flow statement do not represent the same thing. Therefore, when businesses are profitable, which is a long-term requirement; it must pay in cash, its goods and services, capital equipment, the workforce and for that matter, all expenses incurred in the line of the business’ operation. If cash is not available to pay these expenses when the fall due, the business will slowly lose its goodwill, employees, suppliers and it will be forced into liquidation as was previously suggested. 1.If a non-current asset is purchased an outflow of the full amount is shown under Investing Activities in the cash flow statement for that period but only depreciation, which is part of the cost of that asset, is shown in the profit and loss account. This depreciation amount is not shown in the cash flow statement since it is not an actual movement of cash. The profit and loss statement therefore, attempts to spread the cost of the assets over its estimated useful life by a depreciation charge every year until it is expensed. By so doing the cost of the asset is not absorbed in the accounts in one year as is done by the cash flow statement, but over a period of time. 2.When shares are issued and cash is received from the sale, the cash flow statement will show this as a source of cash i.e. a cash flow under Financing Activities but this transaction does not have any effect on the profit and loss account. Similarly, if a loan is obtained, this is reflected as a cash inflow under financing activities but has no effect on the profit and loss account until subsequent interest charges have been made then it is shown. The same is also applicable for businesses which enjoy the overdraft facilities accorded to them by commercial banks. 3.After the sale of a non-current asset the profit or loss which is the difference between the sale price and the net book value of the asset is recorded in the profit and loss account while the entire proceeds is recorded in the cash flow statement as an increase in cash inflow under investing activities. Thus, while the cash flow statement shows inflow of cash, the profit and loss account may show a loss on disposal of the non-current asset simply because the asset was sold less than the net book value consequently representing a loss which the company has made. 4.The profit and loss account reports the total value of sale in a year less the cost of sales (â€Å"the costs directly associated with making or acquiring your products. Costs include material purchased from outside suppliers used in the manufacture of your product, as well as any internal expenses directly expended in the manufacturing process.†BusinessTown.com 2003) which is profit. Operational cash flow is the difference between cash received and cash paid from trading. If there are credit sales (receivables), cash received will differ form the value of the sales and conversely cash paid will differ from the cost of sales if there are credit purchases (payables). The difference therefore, between sales and cash received is because of changes in the amount of debtors and the difference in cost of sales and cash is because of changes in the amount of creditors. It is worthy to note that operational cash flow in the cash flow statement differs from profit in the profit and loss account. Because business accounts are prepared on an accruals basis and not on a cash basis, a sale or purchase is accounted for in the year in which it was made even if cash is exchanged in subsequent years. This practice is exercised in most businesses who, if they do not sell on credit may purchase on credit and if cash accounting is used, the accounts would not represent a â€Å"true and fair picture† of the business activity in a given period. The accounting convention when used is an application of the accrual concept. Therefore there is recognition that while the profit and loss account is affected by the accrual concept, the cash flow statement is not as was previously stated. It should be noted also, that profit, which is shown in the profit and loss account (Net profit before taxes†¦Appendix A) is really a reflection of future cash for the company because the entries recorded are from transactions done based on the accruals concept. This can be illustrated by means of a cash flow statement done using the indirect method. Using the indirect method of preparing a cash flow statement, â€Å"net profit or loss is adjusted for the effects of transactions of a non-cash nature e.g. depreciation, any deferrals or accruals of past or future operating cash receipts or payments and of income or expense associated with investing or financing cash flows† (ACCA, paper 1.1 Study text June 2003, 365). Appendix A confirms that the net profit of $ 3,390 million reported in the profit and loss account after adjustments became $ 410 million, the same cash amount reported in the balance sheet in Appendix C, extract under current assets. Users of the profit and loss account therefore as was established earlier may be missed by the profit figure reported. However, cash reported in the cash flow statement is authentic and represents the actual liquid position of a business organisation as at the balance sheet date. There have been frequent arguments that profit does not give an authentic view of the organisation’s performance as has been established thus far. Since the making of a profit will not necessarily result in an increased cash balance, one can conclude that a company’s performance and prospects depends not so much on profits earned in the period but more realistically on cash flow or rather the company’s liquidity. Bearing this in mind, many investors now find the profit figure reported in the profit/loss account less reliable than the cash balance reported in the cash flow statement because it is felt that the profit figure can be manipulated to reflect the producer’s bias. This notion is supported by Joseph Bernardino former chief executive of Anderson quoted in The Economist. Bernardino argued that â€Å"our financial reporting system is broken† with â€Å"many investors now believing that companies can manipulate their accounts more or less at will, with the aim of producing profits that increase steadily over time. Provisions are bumped up in goods years and later released; or the value of an acquisition is slashed; there are plenty tricks. The solution in the meantime may be to look at the cash, which is harder to disguise or invent.† The cash flow statement is therefore, unambiguous and provides information which is additional to that already provided in the other final accounts. Additionally the cash flow statement provides information based on activity instead of by balance sheet classifications and shows changes in actual cash, thus, providing additional information over the balance sheet and profit and loss accounts. The dilemma as a result becomes fairly simple: there is cash or there is no cash. For this reason, the cash flow statement has several advantages which give shareholders and investors an idea as to how the funds of a company are being managed. These advantages include: 1.Cash flows allow for better comparisons and an understanding of various companies financial performance as it reports on how the cash was earned and spent as well as the reason for the difference between reported profit and related cash flows. 2.It allows for easier preparation of cash flow forecasts which is more useful than profit forecasts. 3.Cash flow reporting satisfies the needs of its users. It provides the information that enables management to make well informed decisions. It also assists shareholders with stewardship accounting while better serving the information needs of employees and creditors on the company’s liquidity status. 4.Cash flow is easily understood than profit which is based on accounting conventions and concepts such as: accruals convention or the matching concept and therefore, is easier for the layman to understand. 5.Creditors are more interested in a business’s ability to repay their debts than its profitability. Profits may indicate that cash may be available at later date, while cash flow suggests a direct view of the business’s cash situation i.e. how much money is readily available. 6.Cash flow accounting directs management’s focus on the optimum use of company assets in order to generate positive cash flows bearing in mind that cash is essential for the survival of an enterprise. In any organisation, a strong financial position is one which shows that a business has relatively little debt and large amounts of liquid assets in comparison to its current liabilities. Additionally, a strong cash balance generating with ease and efficiency from its operating activities further indicate financial strength. Large companies are therefore, mandated by law to prepare financial statements and it is in these that their performance is assessed. The users of financial statements are interested in solvency, the ability to pay debts and profitability, which creates equity. Management is also interested in these statements as it will assist them in improving the areas where performance is weak. Despite the argument presented thus far, it must be noted that â€Å"no man is an island.† This suggests that in isolation, a true understanding of a business’ performance cannot be attained by an examination of only the cash flow statement. When used in conjunction with the profit and loss account and the balance sheet, the cash flow statement gives shareholders and the other users of the financial statements the required information on viability, solvency, liquidity and the financial flexibility of a company at a specific time, essentially at the balance sheet date. Furthermore, the conjunctive use of the cash flow statements give an indication of the relationship between profitability and a company’s ability to generate cash, consequently, defining the quality of the profits reflected in the profit and loss account. Should one therefore, require an overall well calculated view of an organisation, no statement, be it profit and loss account, balance sheet or cash flow statement should be looked at in isolation. For example, in St.Lucia a new shopping plaza is on the verge of opening. Needless to say that Blue Sky Limited is now investing heavily in the refurbishment of the building in which it is to be housed. A close examination of Blue Sky Limited’s accounts would reveal large outflows with little inflows. It therefore becomes necessary to examine Blue Sky Limited’s cash flow accounts in conjunction with the profit and loss account and the balance sheet so that a more wholesome picture can be obtained. Simply put, â€Å"the cash flow statement is simply a part of the puzzle. Analysing it with the other statements can give you a more overall look at a company’s financial health† (Investopedia.com 2005). This notion is supported by Aharony et al 2003 in their study who posits that in order to understand which statement gives a better view of organisational performance, it becomes imperative to look at the â€Å"life cycle status† (LCS) of the of the business in question. Aharony et al therefore argue: Previous researchers identify four LCS’s: Start-up, maturity and decline or stagnation. At the start-up stage there are normally only a few assets in place. Growth opportunities constitute the major asset of the firm at that stage. Cash flow operation and the earnings are low, and there is a relatively great need for cash to finance the realization of these growth opportunities. At the growth stage there are more assets in place and some income is generated (Black, 1998). Sales and revenue growth rates are higher than average in the growth stage and so are investments in production facilities (Anthony and Ramesh, 1992). At the maturity stage firms experience low or no cash and needs are mostly satisfied by internal sources and at the decline or stagnant stage growth opportunities, if any, are likely to be limited, competition intensifies, and the firm’s financing costs are more expensive.(Aharony et al 2003) The implication of Aharony et al’s argument is that the cash flow statements may not necessarily be the best statement to look at a particular point in a business’ LSC because at certain points, liquidity and solvency may be low. At such points, therefore a business’ performance can be better understood by introspection of the profit and loss statement which relies heavily on accrual accounting or a combination with the balance sheet and cash flow statement. Consequently the stage of a business’ life cycle plays an important role in the understanding of a business’ performance. Despite its limitations e.g. its inability to express opinions whether or not expenditure was necessary of will be profitable, or fail to report on the cause of an increase in the firm’s receivables due to poor stock control or changes in policy, the cash flow statement remains the most detailed and accurate statement when reporting on a company’s liquidity/solvency. Therefore, in comparison to the profit and loss account, the cash flow statement definitely gives a better view of organisational performance, if for example, each statement; the cash flow statement and the profit and loss statement, is to be examined in isolation.

The Importance, Benefits and Issues of Budgeting

The Importance, Benefits and Issues of Budgeting Introduction This report is aimed to evaluate the importance of budgeting, analysis the benefits and problems that brought by budgeting and also discusses the behavioral aspects of budgeting. A budget is a comprehensive, formal, coordinated, detailed, quantitative plan that estimates the probable expenditures for acquiring and using financial and other resource for an organization over a specific time period (Margaret, George, 2011). Budgeting describes the overall process from preparing budget, using budgets during the business operation, and later performance evaluation. It provides us the valuable tools for planning and control of finances and affects nearly every type of organization-from governments and large corporations to small businesses-as well as families and individuals. A small business generally engages in budgeting to determine the most efficient and effective strategies for making money and expanding its asset base. Budgeting can help a company use its limited financial and human resources in a manner which best exploit existing business opportunities such production expansion and acquisition that might otherwise miss. A good and through understanding of how budgeting works is a must for ambitious business executive if he or she wants to run the business with flying colors. What is more, budgeting give access to business owners who intend to assess the managers performance during a specific time assigned. It is of great importance because the managers compensation is quite often tied with his or her performance during the time in charge. There are different kinds of budgets fall into various categories. The financial budget (Genrad, et al., 2002) includes the capital expenditure budget, which presents a companys plans for financing its operating and capital investment activities. The capital expenditure budget relates to purchases of plant, property, or equipment with a useful life of more than one year. On the other hand, the cash budget, the budgeted balance sheet, and the budgeted statement of cash flows deal with activities expected to end within the 12-month budget period. Last but not the least, companies sales departments are often responsible of making sales budget based mainly on their products selling experience last year and future economic conditions. The budget is developed within the framework of a sales forecast that shows potential sales for the industry and the companys expected sales. Benefits of Budgets With careful planning and good execution, a company can reap the benefits of having budgets in many ways, including: Communication of corporate goals Modern corporations consist of departments of different important functions. It is quite hard for the chief executive officer to convey the corporate goals to each employee very well. But on the other hand, in order for corporation to reach its best performance, it is indispensable for employees in different positions within a corporation to understand the corporate goals. The process of preparing budgets actually constructively bridges this communication gap because it engages everyone from managers to front-line staff. Quite often in practice, an CEO will hold a budgets discussion meeting that managers of various departments will come and discuss the companys whole budgets and make adjustments according to next years goal. In this way, budgeting comes a communication tool because the different departments get the chance to take part in future planning and discuss the priorities for where the money and resources should be most suitably spent and allocated. More importantly, the act of making estimates about future economic conditions and about the companys ability to respond to them, forces managers to synthesize the external economic environment with their internal goals and objectives. This whole communication process is extremely crucial given the consideration of the complexity of business in recent years. Warning of potential problems Keeping budgets and constantly comparing it with the running of the real operating acts as an early warning system of potential problems which the management people in charge can make changes before things get out of control which make the company suffer greatly in terms of money and resources. In this way, when a flag is raised, managers in charge can revise their immediate plans such as to change a product mix, revamp an advertising campaign, or borrow money to cover cash shortfalls. Coordination of different segments Having the different departments within the corporation to create budgeting together is the key to resolving the differences and conflicts between various departments when involves in money and resources handling. Often in practice, the chief executive officer asks departments of various functions to make their own department budgets first according to each departments needs and its specific goal next year. Throughout this process, each department correlates each segments goals with corporate objectives. Preparation of a budget assumes the inclusion and coordination of the activities of the various segments within a business. The budgeting process demonstrates to managers the inter-connectedness of their activities and offers them directions to follow. Evaluation of actual performance The budget provides definite objectives for evaluating performance at each level of responsibility assigned (Jan, et al., 2008). Managers in charge are able to have access to do quick and easy performance evaluations with previous established criteria. With the economic conditions rapidly changing, managers may increase activities in one area where results are well beyond their exceptions. In situation like this, budgeting maximizes the objectivity to a great extent and offers a helpful hand for managers in making sound judgments with some indicators to compare. In other situations, managers may need to refer some measurement to reorganize activities whose outcomes demonstrate a consistent pattern of inefficiency, so that they can make timely adjustments to minimize the loss that otherwise might incur. Problems of Budgets As one of the most important steps in running a successful business, there is also some problems that involves with the budgets, including: Overstating projections Companies with strong ambitious of achieving success usually tend to think that their business will do a huge amount of business in a short amount of time which sometimes could be not very realistic in practice. So in this case, they often inflate the budgeted sales figure with possibly wrong sales forecasts. The overstating sales projections resulted from over optimistic future sales predictions most of the time will lead to other financial budgets such as cash flow budget, income statement budget, and balance sheet budget not reflecting the reality. Lack of fairness in funds allocation When asked to their own budget, different departments often have a tendency to ask more than they need to provide buffer in case unforeseen things that might happen in the future, so that they will not be under budget. This tendency prevent the funds to be allocated to the companys best interest and distorts the real needs and makes the next year funds allocation somehow lack of the fairness it should have, especially for corporations which is at the growing stage when the funds is extremely precious and limited. What is worse, when it comes to the using the budgets, the majority of departments will tend to squeeze the use of the budget at the beginning of the period to save for the later use, while try everything they can to use up the rest of the budget by the end of the period. This lack of consistency in usage actually further wastes the companys resources and money, which is likely lead to inconsistency of the goods and services that the company provides. Lack of operation flexibility While sticking to the budgets provides a roadmap for the running of operation, it can hinder creativity and flexibility of the companys development (Eugene, Michael, 2010). This situation arise often enough the managers cautiously and strictly enforce the operation in accordance with the budgets and give up some opportunity that might open doors to developing innovative products and exploring new markets. This is particularly true for those giant corporations where the managers are more willing to play it safe than taste a new flavor and usually lead them to only look at an annual plan therefore may fail to take a longer term view into account. Behavioral aspects of Budgeting Budgetary control relies greatly on the individuals of a corporation. The human aspect in the budgetary system can be very complicated since the budgetary process involves relationships between different people within the corporation which includes the chief executive officer, managers and staff. Some times budgets affect peoples behaviors and vice versa. Thus the behavioral aspects of budgeting are of vital significance and consist of many different areas that high attention must be paid. First and foremost, we need to know the Factors affecting behavior of budgeting, including: Budgets perceived by employees as being too difficult In situations that lack full participation of all levels in preparing for the budgets, the employees will perceive the budgets as being too difficult to follow. In addition, the punishment that comes along from failing to meet what this budgeted has a tendency to encourage staffs attempts to beat the system. This greatly affects the employees enthusiasm for the job and can knock down their creativity and initiative which might lead to financial and nonfinancial loss for the corporation. In order to deal with this kind of situation, the managers in charge should maintain supportive and cooperative relationships with staff of all levels since it can leads to increase productivity and satisfaction which in turn can raise the working morale of staff. What is more, managers should try their best to make communication open without obstruction, which is extremely critical because the good communication in budgeting can act as a good delivery of corporate goals. Targets that do not provide any challenge In sharp contrast to the previous situation discussed just now, non-scientific and not reasonable budgeting could also result in having targets that do not provide any challenge which leads to no breakthroughs and developments. This happens more often than not when managers only emphasize on the financial goals which is quite detrimental to the realization of important non-financial goals. In order to fix this problem, managers should use the historical data as an important reference and try their best to gain a better understanding of the directions that the future economic conditions. Moreover, it is also of crucial importance for managers to identify the employees ability objectively and truly engage the staff in participation genuinely. Due to a tendency for individuals to become ego involved in decisions which they have contributed, only in this way, can the budgeted goal be set in a way that reflect the real conditions and performs guidance. Insufficient flexibility There are times when strong-minded managers strictly hold on to budgets and overlook the real actual operation performance. Confronted with this kind of situation, what a company should do is to adopt variance analysis in practice. It is encouraged for businesses regularly conduct variance analysis because this allows them to notice if financial plans are inaccurate and therefore make timely adjustments. On the other hand, if businesses fail to analyse variances on a regular basis they will not be aware of their financial performance compared to what is budgeted. Favorable variance is when revenues are greater than budgeted or costs are less than budgeted. In contrary, adverse variance is when revenues are less than budgeted or costs are greater than budgeted. By calculating variances through looking at costs and revenues, managers can make wise remedies to cope with the situation and keep the company running on the right track. Conclusion Budgeting is a very crucial process that can bring numerous benefits to the companies if be used wisely and correctly. These benefits includes: Communication of corporate goals, Warning of potential problems, Coordination of different segments, and Evaluation of actual performance. All of them will increase the managements ability to more efficiently and effectively deploy resources, and to introduce modifications to the plan in a timely manner. However, there are also problems of that might incur when the budgeting is not proper done. These problems includes: Overstating projections, Lack of fairness in funds allocation, and Lack of operation flexibility. In order to truly embrace the benefits of budgeting, managers really should study the behavioral aspects of budgeting.

Social Interaction Influence Cognitive Development Essay -- Psychology

Social interaction plays an important role in people’s life starting from the early childhood as infants interact with their caregivers and build the emotional attachment that is the base for future relationships. By social interaction with others children learn how to communicate, play and behave in particular situation. Berk (2009) proposed the overview of the literature that concentrates upon the early attachment and its importance. Knowing the influence of social interaction on child development in the first few years, the essay is going to elaborate upon the implication of social interaction on the development of cognition. Cognitive development as Lee & Gupta (eds.) claimed is the term that refers to acquisition and development of knowledge and cognition, namely the processes such as memory, language, and problem – solving and drawing. When elaborating upon cognitive development, the three main aspects can be distinguished: the understanding of the objects by chil dren, their ability to imitate caregivers and children’s ability to hold representations of the world (Oates, Wood & Grayson, 2005). All of the aspects play an important role in developing cognition of children and provide the explanation for the understanding of children’s learning influenced by social relationships and practices. In the essay there is going to be an emphasis on the social interaction between children and their caregivers and peer relations. To consider whether social interaction is a fundamental basis for cognitive development of children, there is going to be presented the overview of the literature that concentrates upon it. There are two fundamental theoretical frameworks that touch upon the subjects, namely the work of Piaget (1926) and Vygots... ...interact with their caregivers and through interaction not only their cognitive abilities are shaped by also their personality and behaviour in later stage of their life (Triandis & Suh, 2002). The essay is considering the background that social relation flourishes, namely interaction child – adult and peer relations. Through their early experiences with others, children develop their understanding of the world. By simple activities that are carried out on daily basis between children and caregivers, children are able to gain the meaning of new techniques and learning strategies, they expand their existing knowledge and experience new things. The interesting aspect is to elaborate on social interaction within different groups of children. Although the cognitive abilities may not fully develop in every child, social interaction encourages and prompts the progress.

Essay --

Innocence gained at birth, yet lost in seconds. The story of the lovers whose innocence was stolen away is a fierce one in The Things They Carried. Mary Ann Bell and Mark Fossie, a fairy tale come to life. Mary Ann started stealing the soldiers lives in Vietnam, Mark Fossie became uncomfortable, yet proud of her eagerness and fearless quest for knowledge. To Rat Kiley, â€Å"...Mary Ann made you think of all those girls back home, how clean and innocent they all are, how they’ll never understand any of this...† (O'Brien 113). To the men she was: dreams, youth, an escape, the future all in one pink trimmed girl. Mainly, however, to her boyfriend, Mark Fossie, she was his future, his connection life after the war. Rat Kiley describes Mark Fossie as â€Å"proud, yes, but also amazed. A different person, it seemed, and he wasn’t sure what to make of it.† (O'Brien 98). When Mary Ann changed, and ultimately vanished, it is as if the war stole every piec e of Mark Fossie. Using this sophisticated complex love story enhances the sense of lost innocence. In the beginning Mary Ann and Mark contemplated what they would look like in the future, yet as the days went by her mindset changed. She became more interested on her new surroundings and less focused on her future as his wife. It was then that Mark Fossie began to mention her going home. He had been holding on to their future for his sanity, much to Rat Kiley's dismay "man, you must be deaf. She’s already gone" (O'Brien 107). However, she refused to leave. She claimed to be happier than ever in her life. Soon, the detachment grew between them. Mary Ann was immersing herself in Vietnam. Then one night she vanished with the Greenies. She was gone for weeks, one night Rat Kiley sa... ...bol of their innocence, and just as she became "dangerous and was ready for the kill"(O'Brien 111), the soldiers changed to become mysterious and cynical because of the war. A piece of the love story that vanished; the dreams and futures of the soldiers. They became tainted forever with terrifying images burning through their minds. â€Å"‘What happened to her, Rat said, was what happened to all of them. You come over clean and you get dirty and then afterward it’s never the same† (O'Brien 109). The things they saw; the things they lived, they couldn't retell, for no one would believe it. Mary Ann Bell and Mark Fossie represented the relationships lost due to the war, the loved ones that had forgotten or who would never understand the changes. They represented the dreams that had changed and been lost. They were the innocence and naivety turned to disparagement.