Tax avoidance,tax evasion,tax mitigiation Essay

Tax avoidance,tax evasion,tax mitigiation - Essay Example Tax avoidance and Tax evasion are two of the most common terms and concepts used and utilized by the taxpayers in escaping from payment of taxes. Learning and understanding these terms will help the taxpayers avoid criminal and civil liabilities. Tax avoidance is a means to escape from taxation, which is allowed and sanctioned by law. A taxpayer committing this will not be legally held civilly or criminally liable to the government provided it is used in good faith and within the process allowed by law, otherwise the taxpayer will be committing tax evasion which is a crime. The utilization of the means and methods sanctioned by law would enable the taxpayer reduce the amount due to be taxed. Example of tax avoidance is when the taxpayer structures his/her any legitimate transaction to save tax and such transaction is what would really appear in form. And this transaction if the taxpayer is the vendee or payee could declare this as deduction. Tax Evasion on the other hand, is reductio n or elimination of tax due by means outside the law. It is illegally committed and punishable by law. A corporation, individual and other entity may resort to means in order to avoid paying the taxes. And the means employed is always dishonest like declaring less or no income, less profits or no gains than the taxpayer actually earned or it could be committed by inflating deductions. For example, a corporation will evade tax by declaring charitable contributions of $ 2.5 million as deduction although what was actually contributed is $.5 million only. The law does not allow this and anyone caught doing this will be held criminally and civilly liable. The difference between tax avoidance and tax evasion is on the tax itself. In tax avoidance, the taxpayer is legally avoiding the payment of any tax liability that is not in existence at the time. Meaning to say, there is no tax due at the moment of transaction and the taxpayer utilized method within the law so that no tax liability wou ld be incurred later or if there is, it would be less. In tax avoidance, there is already a tax due to be paid and the taxpayer resort to illegal means so that it will not be able to pay the owed tax. This type entails concealment or misrepresentation of earnings that are taxable immediately.. Tax mitigation is also similar to tax avoidance. Both resort to means not prohibited by law. Sometimes, these two concepts are used interchangeably. Tax mitigation is known as tax planning to mitigate or reduce tax liability. It is a conduct made to reduce tax liability without conducting tax avoidance or which is contrary to the intention of the Parliament. There are conducts which are allowed for tax mitigation and which are not in the case of tax avoidance. It is important in distinguishing one from the other, especially the two concepts which are tax avoidance and tax evasion because it will help the taxpayer in understanding the consequences of each conduct to reduce tax liability. Since tax avoidance is a criminal offense punishable by law, knowing the distinction would save one from committing this criminal offense while saving money from taxes without breaking the law. It will help taxpayers to arrange their affairs and keep taxes as low as possible. The tax code is confusing not only for average people but also for those knowledgeable professionals. Hence, it is important to define these two concepts so as not to fall into a criminally punishable offense. The Ramsay Principle: My understanding This principle emanated for two cases : W. T. Ramsay Ltd. v. Inland Revenue Commissioners, Eilbeck (Inspector of Taxes) v. Rawling, [1982] A.C. 300 and IRC v. Burmah Oil Co. Ltd., [1982] S.T.C. 30, H.L.(Sc.)decided by the House of Lords in connection with tax payment and schemes resorted to avoid it. In this case, the company in order to lessen the amount of taxes for the transaction of transfer of assets and payment resorted to scheme by drafting sets of documents,

Reflective Commentary Coursework Example | Topics and Well Written Essays - 4250 words

Reflective Commentary - Coursework Example The mission of Nottingham University Business School is to improve business and management knowledge. It trained us to perform well in national competitions. It offers full time MBA program and executive MBA program. I have been assigned a project to work on an Indian Industry. For this purpose, I have taken help from the professors of Globsyn Business School as it is one of the renowned B-School of India and have the corporate contacts also. Here, I got to know that the new economy environment of the school crafted it one of the most forward thinking B-School in India. With a built on research and technology, innovation, along with distinctive initiatives in the form of Knowledge Connect, Global Connect and Corporate Connect, Globsyn is creating a globally networked, corporate know-how, research driven management education system. It moves further than traditional forms of management knowledge to a research based delivery framework in order to create â€Å"Industry Ready Managersâ €  to work in today’s technology driven business environment. ... The PGDM/MBA programme provides for strong curriculum based learning. The specialisation offered under PGDM/MBA program is marketing, information system, finance and human resources. I also gained Indian MBA experience along with a wide area of study. Analytical method of teaching is taken into consideration rather than descriptive teaching. Quizzes and tests have been conducted on weekly basis. E-learning was also conducted which includes video clips and audio presentation. It also includes teaching through power point presentation. The program has been planned to provide assistance to the students to prepare either for corporate management careers or to pursue academic studies in India or abroad. It also includes contribution towards research and development or joins the academic community. There are many options for us to work in a variety of fields ranging from NGO’s to Government assignments etc. Globsyn Business School gives the option to choose our area of studies and e xcel in our respective domains. Though the first year consists of compulsory papers, we get the choices to cross-skill ourselves and face the competitive business environment. In second year, we can choose our specialisation in our interested area of study. I also came to know that as a part of Global Connect Program, the international faculty member takes classes thereby giving us opportunity to learn new and contemporary management techniques Learning Culture of Nottingham University Business School (Home Country) Nottingham University Business School offers Full-time MBA, Executive MBA, MBA Corporate Social Responsibility, MBA Entrepreneurship, and MBA Finance. The programme is designed to provide us with different skills and knowledge to succeed in

An overview of atrial fibrillation

An overview of atrial fibrillation Section1: Atrial fibrillation (AF) is a condition when the heart does not beat to its normal speeds or rhythm, often it beats faster than it should. This irregularity leads to an increased risk of stroke and death. The pump function of the heart deteriorates as a result of the un-coordination (due to uncoordinated excitation of muscles). The net result of impaired pump action is the upper chambers of the heart contract randomly and at times too quick for the heart to relax before it can contract again effectively. At the junction of the pulmonary veins in the left atrial musculature, abnormal impulses fire which override the heart natural pace maker. There are 3 major classifications for AF: Paroxysmal AF- lasts from 30 seconds to 7days Persistent AF- longer the 7days Permanent AF- AF that fails to terminate using cardioversion, or is terminated but relapses within 24hours. If there are no obvious cause and all investigations are normal, this is known as lone AF. Lone AF tends to occur in Paroxysmal cases. Otherwise the most common causes are ischaemic heart disease hypertension mitral stenosis hyperthyroidism Other causes which arent as common are can be classified into 3 sub catagories; Cardiac: Rheumatic heart disease, Sick sinus syndrome, Pre-excitation syndromes (such as Wolff-Parkinson-White syndrome) and heart failure. Less commonly, congenital heart disease, atrial myxoma , atrial septal defect, pericardial disease, and cardiomyopathy. Non-cardiac: Drugs (e.g. bronchodilators/thyroxine), Electrolyte depletion infection, Pulmonary embolism, Lung cancer Diabetes. Lifestyle: Obesity, high caffeine or alcohol intake1. A fast pulse (often >140bpm) which may or may not be irregular is the most common symptom of AF however it is also accompanied by tiredness, breathlessness, dizziness, angina1, syncope, reduced exercise tolerance, or polyuria2. The decreased efficacy of the pumping of the heart may result in the reduction of blood pressure. AF is diagnosed by the use of an ECG and is characterised by the absence of consistent P waves and presence of fibrillation. The method of management of suffers of AF has two main strategies, either by the control the arrhythmia aspect of the condition or by the tachycardia side of the condition. Rhythm controlling drugs include flecainide (and other similar drugs), beta-blockers (particularly sotalol), and amiodarone. Rate controlling drugs such as beta-blockers bisoprolol atenolol or the calcium channel blockers verapamil ordiltiazem. Thrombolytic and antiplatelet drugs are also used to manage the thromboembolic risk. There are non pharmacological ways to manage AF, the most common being cardioversion. Aspirin inhibits cycloxygenase from producing thromboxane A2 which is responsible for platelet activation and thus aggregation Diltiazem of use in AF for its affects on calcium channels on the heart. The blocking of calcium channels reduces excitability of cardiac muscle and hence decreasing fibrillations it also decreases the force of contraction Atenolol is a beta receptor blocker(a classII), it decreases the effects of the sympathetic drive to the heart, such that the neurotransmitters adrenaline and noradrenaline are competitively blocked. Thus the levels of cAMP decrease. cAMP mediates many events in the heart:decreases stability in resting potentials (phase 4) of nodal tissue(AVN conduction SAN firing). In nodal tissue(myocytes) a decrease in cAMP reduces Ca2+ entry thus action potentials take longer, it also causes repolarisation to longer i.e. increasing the refractory period Amiodarone has all four classes of activity (of Vaughan Williams system MAKE APPENDIX) however its main method of action is its class III mechanism. By the blocking potassium channels the potassium efflux in an action potential is blocked, thus action potentials duration is a prolonged refractory period (causing a region of unidirectional block remain refractory for longer effectively having a bi directional block)3 Verapamil a non selective calcium channel blocker (classIV), by reducing the Ca2+ into the cell through L-type channels in the nodal tissue (SAN AVN) depolarization takes longer as does the refractory period causing slower AVN conduction. Reduces tachycardic impulse from AVN to the ventricles and also AVN re-entrant rhythms. Phase 2 is limited in nodal tissue (myocytes and purkinje fibres) reduces triggered automaticity4. Warfarin inhibits the effective synthesis of biologically active forms of the vitamin K-dependent clotting factors: II, VII, IX and X, as well as some regulatory proteins. Flecainide a class1c sodium channel blocker.There is decreased diastolic excitability and Phase 0 (depolarization) takes longer as does the refractory period together causing slower conductions4. Propafenone is a class1c sodium channel blocker.There is decreased diastolic excitability and Phase 0 (depolarization) takes longer as does the refractory period together causing slower conductions4. Digoxin is a K+/Na+ ATPase inhibitor which leads to an increase in the intracellular concentration of sodium this stimulates of sodium-calcium exchange as a result there is an increase in the intracellular concentration of calcium causing stronger less frequent contractions. Cardioversion may be tried in some people with AF. The heart is given a controlled electric shock to try to restore a normal rhythm1. Catheter ablation is a procedure that very carefully destroysthe diseased area of your heart and interrupts abnormal electrical circuits. It is an option if medication has not been effective or tolerated1. A pacemaker may be fitted alternatively to drug treatment when it is not appropriate of failing1. Section 2: AF is the most common rhytm disorder of the heart with up to 500,000 sufferes in the UK1. In the UK over 46,000new cases of AF are diagnosed each year5. The incidences increase with age, with a higher incidence in men, when data is adjusted for age6. AF is uncommon in the young unless there is an existing heart disorder. At 50-59years of age, the prevalence is around 0.5%. At 80-89years of age, the prevalence is around 9%. Section 3: AF is a significantly increases the chance of stroke and emboli. The decision to use antithrombotic therapy involves a complex balancing of risks, benefits, and costs. The probabilities of stroke, bleeding complications, and death; the associated costs of all treatment options and outcomes; and the quality of life associated with treatment and disability. These have shown that warfarin therapy is generally cost-effective and often cost-saving. However, the economic value of antithrombotic therapy in terms of cost-effectiveness is most strongly influenced by 2 factors: stroke risk and perceived quality of life. The cost-effectiveness models indicate that warfarin can be cost-effective or, indeed, cost-saving for a wide variety of patients with AF, provided that it is prescribed appropriately based upon stroke risks7 In patients at high risk of stroke, anticoagulation is most cost effective, but not for those at low risk of stroke8. Aspirin 75mgx28 Â £1.66, Aspirin 300mgx28 Â £0.55, Warfarin 1mgx28 Â £1.10, Warfarin 3mgx28 Â £1.15, Warfarin 5mgx28 Â £1.21, Atenolol 25mgx28 Â £0.82, Diltiazem MR 60 mgx84 Â £3.52, Diltiazem MR 60 mgx56 (or over 70yrs), verapamil 40mgx80 Â £1.55. Section 4: Symptoms should be monitored; often AF has no symptoms, however you should look for the common presenting symptoms (stated in section 1). Tests: Heart Rate- Should be done when treating with rate lowering drugs Electrocardiography- every 12months blood electrolytes, urea and creatinine- 1-2 weeks after initiation, and 1-2 weeks after reaching the maintenance dose, then every 6 months. For Beta-blockers, digoxin, amiodarone Monitor blood pressure Liver function tests- every 6months for amiodarone Thyroid function test- when using amiodarone eye examinations- annual eye examinations. Plasma levels- for digoxin, shortly after initiation or after a dose increaee. 0.7and 2.0nanograms per millilitre Drugs to reduce the risk of thromboembolism (warfarin, aspirin and clopidogrel) The target INR for oral anti coagulants is 2-3 usually 2.5. Patients should be considered for warfarin use if risk is perceived to be medium or high according to nice (see appendix)9. It is important that INR be measured daily or alternate days at initiation of treatment. Then at longer intervals depending on dose response up to 12 weeks10. Note the importance of increased monitoring as drugs are added to the regimen, pre-adjustment to warfrin are sometimes necessary e.g. decreasing dose by one or two thirds before initiation of amiodarone1. Section 5: Although systematic reviews have shown that aspirin reduces the rate of stroke by 25%8 The Atrial Fibrillation, Aspirin Anticoagulation Study demonstrated a reduction of strokes by 64% per year with warfarin (INR 2.8-4.2), compared with placebo, a 3.5% per year reduction. A non-significant reduction in stroke was seen with aspirin 75mg8. Where warfarin is contraindicated or patient requests not to initiate therapy, it has been found that a combination of antiplatelets (aspirin and clopidogrel) was associated with a significant reduction in major vascular events compared with aspirin alone. The number of people that would need to be treated with aspirin plus clopidogrel for 3.6years to prevent one vascular event was 421. According to a meta-analysis the combination of both aspirin and warfrin yielded no significant reduction in stroke rates and had increased side effects8. No mortality difference was found between rhythm control and rate control. Although for people older than 65years of age or those with coronary artery disease, a significant difference was found in favour of rate control in terms of all-cause mortality. Studies showed significantly higher rates of hospitalisation and adverse events in the rhythm control group and no difference in quality of life between the two groupsa.Incidence of ischaemic stroke, bleeding and systemic embolism was similar in the two groups, but certain malignant dysrhythmias were significantly more likely to occur in the rhythm control groupa. No cognitive decline was seen with the use of rhythm controlling drugs. Quality of life scores were similar in both groups. Therefore it is recommended that rate control, is used as it is less costly11. IA, IC and III drugs are effective in maintaining sinus rhythm but increased adverse effects. Class IA drugs may increase mortality. Calcium antagonists versus digoxin Seven studies found no difference in average heart rate between calcium antagonists verapamil or diltiazem and digoxin either at rest or during periods of normal daily activity. Studies have found calcium antagonists resulted in a lower heart rate during exercise, compared with digoxin2. Beta-blockers versus digoxin Three studies found no difference in average heart rate between digoxin and beta blockers while at rest or during periods of normal daily activity. However, the beta blockers atenolol and labetalol controlled heart rate during exercise more effectively than digoxin did2. Beta-blockers versus calcium antagonists One crossover study found no difference between the calcium antagonist diltiazem and the beta-blocker atenolol in terms of either the mean heart rate over 24 hours or during exercise2. Beta-blockers with digoxin versus beta-blockers One crossover study found no statistically significant differences in heart rate during periods of exercise. Some studies found the beta-blocker atenolol used in combination with digoxin to be associated with a lower heart rate over 24 hours than atenolol alone2. Calcium antagonists with digoxin versus calcium antagonists Four crossover studies found that calcium antagonists diltiazem or verapamil used in combination with Digoxin to be more effective in controlling heart rate over 24 hours, as well as during periods of exercise, than either diltiazem or verapamil alone2. Section 6: Many people whom suffer from AF suffer no symptoms, some have been diagnosed incidentally1. It is in these patients that concordance is a particular issue. Education as to the risks and complications of the condition are necessary to achieve optimum concordance. It is important that patients are aware the side effects (SE) as well as the dosage regimen. Many of the dugs used in the management of AF have common and serious side effects which patients should be trained to spot. Interactions and side effects of note. Further information can be derived from the British National Formulary (BNF) and a comprehensive analysis available in the most current Stockleys drug interaction. Classes of drugs have been mentioned although this does not mean that the entire class will interact Amiodarone Interactions: Anti-arrhythmic (rate and rhythm modulating), Antibiotics, Anti coagulants, Tricyclic antidepressants, mizolastine, thyroid hormones, diuretics and phenytoin10. it is of note that due to its long half life amiodarone may still interact several months after treatment is stopped particularly relevant in the switching over of treatments. Amiodarone reduces the clearance of warfarin, prolonging prothrombin times (PTs) and elevating international normalized ratios (INRs). To avoid bleeding complications, the patient being put on amiodarone must have their current dosage of warfarin reduced by at least one-third and PT and INR closely monitored until they are stabilized15. Although routine eye examinations should occur to asses the ocular effects of amiodarone, if a patient experiences any visual impairment the treatment should be stopped10. Patients should be aware for the signs of thyroid dysfunction (signs and symptoms of which included in appendix 1) Warfarin interactions: Alcohol, amiodarone, propafenone, analgesics, antibiotics, antidepressants, antiepileptics, thyroid hormones, ulcer healing drugs, lipid regulating drugs, hormones, corticosteroids Warfarin levels are easily effected by changes in diet, major changes in diet should be done in consultation with healthcare professional, commonly eaten foods that are known to interact with warfarin are cranberry, grapefruit and vitamin K rich foods16. bleed or bruise easily. Also, if you bleed, the bleeding may not stop as quickly as normally. For example, you may have: bleeding gums; nosebleeds; prolonged bleeding from cuts; blood in the urine. Beta blocker interactions: Antiarrhythmics (rhythm and rate modulating), antibiotics, antidepressants, mizolastine, antipsychotics and diuretics. Beta blockers should be avoided in people with asthma, or with chronic obstructive pulmonary disease13, Beta-blockers should not be stopped suddenly unless absolutely necessary; there is a risk of rebound in the condition13. Doses are titrated for patients and are gradually increased10. Digoxin interactions: Antiarrhythmics (rate and rhythm modulating), diuretics, anti biotics and anti epileptics. Signs and symptoms of digoxin toxicity are important to report promptly. Digoxin toxicity may cause drowsy, dizzy, and affect your vision, disorientation, confusion, headach or disyurbed vision14. Flecainde interactions: Antiarrhythmics (rate and rhythm modulating), antidepressants, antihistamines, antipsychotics, diuretics and tolterodine Roughly 1% of the general population and 10% of asthma suffers are allergic to aspirin12. Each drug has the potential for interaction with other medication and even food. Self help advice In order to minimise the risk of stroke and heart attacks it is important for patient to receive practical advise on diet as this will impact on blood cholesterol levels, weight management and blood pressure it is of particular importance when the patient is diabetic. Important components in a healthy diet are low fat and salt intakes, with an emphasis on complex carbohydrates found in vegetables. Advice on the sources of esstential fatty acids should be given (for example nuts and oily fish). Smoking cessation counseling and Nicotine replacement therapy should be offered, discussing the statistical significance smoking alone contributes to the Cardio vascular events. Section 7: Pharmacists have contact at various stages along a patients treatment. A specialist PCT pharmacist may manage patients, prescribe, review and monitior. A community pharmacist should attempt medicine use reviews and prepare to make interventions on prescriptions when appropriate. Clinical pharmacists are involved in monitoring and providing guidance on protocols and current evidence. In the future there will be an increased scope for pharmacists to play a larger role when full patient records become available, full clinical reviews may be conducted taking into account the persons history (familial, drug, treatment, condition) and make appropriate interventions and recommendations according to the most current evidence. Section 8: In order for the condition and the services to run effectively is necessary to run audits regularly. This will ensure the national standards are met. Nice guideline audit criteria: All people presenting to primary or secondary care with a hypertension, heart failure, diabetes made or stroke and noted to have an irregular pulse to be offered an ECG and any new diagnosis of AF recorded2. All AF patients in whom a rate-control or rhythm-control strategy is initiated to have their involvement in choosing a treatment strategy recorded2. All patients who are prescribed digoxin as initial monotherapy for rate control to have the reason for this prescription recorded where it is not obvious (e.g. sedentary patient presence of contraindication to alternative agents)2. All patients should be assessed for risk of stroke/thromboembolism and given thromboprophylaxis according to the stroke risk and have this assessment and any antithrombotic therapy recorded2. It is important for pharmacists to keep uodate and maintaining a high levels of competenacy. Advice should be evidence based and current. There are regular updates produced by nice NICE and the Guidelines for atrial fibriliation are a good source of information. Section 9: the National Service Framework for coronary heart disease has a chapter pertains to AF. Arrhythmias are of great importance Cardiac arrhythmia affects more than 700,000 people in England and is consistently in the top ten reasons for hospital admission, using up significant AE time and bed days. AFis the most common arrhythmia, affects up to 1% of the population (rising to 4% in the over 65s) and absorbs almost 1% of the entire budget of the NHS to the NHS16. Of the three quality requirements there are two relevant in AF. Quality requirement one: patient support. People with arrhythmias receive timely and high-quality support and information, based on assessment of their needs16. Markers of good practice People with arrhythmias receive a formal assessment of their support needs and those at significantly increased risk of anxiety, depression or a poor quality of life receive appropriate care16. People with long-term conditions receive support in managing their illness from a named arrhythmia care co-ordinator16. Good quality, timely information about arrhythmic conditions is given by appropriately trained staff16. Quality requirement two: diagnosis and treatment. People presenting with arrhythmias, in both emergency and elective settings, receive timely assessment by an appropriate clinician to ensure accurate diagnosis and effective treatment and rehabilitation16. Markers of Good Practice Initial Treatment All patients receive a hard copy of the ECG documenting their arrhythmia and a copy is placed in their records. Patients who survive out-of-hospital cardiac arrest and patients presenting with pre-excited AF are assessed by a heart rhythm specialist prior to hospital discharge. The following patients are assessed urgently by a heart rhythm specialist: Patients with syncope or any other symptom(s) suggestive of an arrhythmia and a personal history of structural heart disease or a family history of premature sudden death Patients with recurrent syncope associated with palpitations Patients with syncope and pre-excitation Patients with documented 3rd degree AV block (not associated with acute MI) Patients with recurrent syncope in whom a life-threatening cause has not been excluded Patients with documented ventricular tachycardia The following patients are referred to a heart rhythm specialist: Patients with a presumed diagnosis of ventricular tachycardia Patients with Wolff-Parkinson-White (WPW) syndrome or asymptomatic pre-excitation Patients with symptomatic regular recurrent supraventricular tachycardia which is unsuccessfully treated with one type of medication or who would prefer not to take long-term medication Patients with recurrent atrial flutter Patients with symptomatic AF despite optimal medical therapy First degree relatives of victims of sudden cardiac death who died below the age of 40 years Patients with recurrent unexplained falls Markers of Good Practice Ongoing Treatment Mechanisms are in place for urgent referral of patients with sustained or compromising arrhythmias for prioritisation of appropriate treatment. Implantable cardioverter defibrillators (ICDs) are considered in patients presenting with life-threatening ventricular arrhythmias and in those without demonstrable arrhythmia but identified as being at high risk. Catheter ablation is considered as the treatment of choice in patients presenting with sustained supraventricular tachycardia (SVT) other than AF, and cardioversion of recent onset AF is considered as early as is clinically safe. Where further hospital treatment is not recommended, a care plan is agreed between the patient, GP and the arrhythmia care team, including follow up and support as required. Management of long term conditions and elderly also have a priority in the governments plans and frameworks for the future. Section 10: Emphasis should be on patient centered care, projects such as near patient testing for warfarin have proved to be effective at managing patients and their potential complications. Primary care workers such as GPs PCT pharmacist should screen at risk patients. They shall be involved in the management of there condition frequently monitor patients. If required a referral can be made on lifestyle issues to manage the risk of stroke, e.g. if lipids are elevated may want to refer to a dietitian. Community pharmacists have a role in conduction medicines use reviews and be prepared to make inventions in prescribing, regimen concordance and side effect management/referral. It is of utmost importance that the specialist (cardiologist) makes clear recommendation and maintains communications with their counterparts in primary care.

Characteristics of an Ideal Entrepreneur Essays -- Entrepreneur

What an Entrepreneur Is An entrepreneur is a person who finds it worth risking, especially in term of his or her finances, in a particular project with a hope of introducing new related ventures that will culminate into visible success financially (Foley, 2006). Sometimes, an entrepreneur can also be taken to mean a person who is in the verge of organizing a virtually new project and targeting to use previously unused channels after discovering a hidden opportunity in the eyes of others. Evidently, in both cases, there is a risk factor and therefore maximum care and guided moves are things to take care of first. More often than not, the term entrepreneur is employed in a business context. Some other people argue that entrepreneurship is not a real profession. No, not until one has started something that can be seen on the ground. In short, one cannot create fame in the name of becoming an entrepreneur by just portraying mere intensions nor even when the whole planning of scope and schedule are complete. A person will be termed as an entrepreneur once the first foundation stone is laid on the ground. That means that the effectiveness of one’s ideas is crucial. Therefore the qualities or characteristics of such a person must enable a confident kick-off and somehow guarantee success. Characteristics of an Ideal Entrepreneur An ideal entrepreneur must be innovative enough. This means that his or her venture must be backed by relevant knowledge and creativity but encased in achievable limits. Past experience and technical knowhow are integral components that will enhance confidence and enthusiasm while kick starting. In most cases, entrepreneurs act as revivers of a falling business by convincingly intervening with new ideas and ap... ...l of Developmental Entrepreneurship. 8(2), 133-151. Fuller, D., & Dansic, P. (1999). Indigenous Australian and self-employment: small enterprise research. The Journal of SEAANZ. 7(2), 5-28. Harper, L. (2010). 5 Successful Australian Entrepreneurs. Mademan.com. Retrieved 04 21, 2012, from http://www.mademan.com/mm/5-successful-australian-entrepreneurs.html. Rola-Rubzen, M.F. (2009). Critical success factors for aboriginal businesses in the desert, DKCRC Working Paper 38, Desert Knowledge CRC, Alice Springs, Retrieved 04 22, 2012, from http://www.desertknowledgecrc.com.au/publications/downloads/DKCRC- Working-Paper-38-Critical-Success-factors-for-aboriginal-businesses-in-the-Desert.pdf. Thomson, J. (2010). Our Top Female Entrepreneurs. SmartCompany. Retrieved 04 22, 2012, from http://www.smartcompany.com.au/entrepreneurs/20100304-female- entrepreneurs/2.html

Capital Budgeting Mini Case Essay

There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well, for example, the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring other businesses. â€Å"NVP is important to a project because if the cost of the investment is going to be, or is more than the revenue from that project, then it may be more cost effective to shut down the project all together rather than lose more money. If multiple projects are available, then it is wise to first calculate the NPV for each project, choose those that have a positive NPV, and reject the ones that have zero or negative NPVs. Moreover, the IRR method can be used, and generally, they should provide the same ranking of the projects because the projects with high NPV also tend to have high IRR (Hestwood, Lial, Hornsby, & McGinnis 2010)†. â€Å"There are many reasons the IRR is imperative to a company. If the rate of return is insufficient, it means additional cash is out flowing from the company than is inflowing into the company. This could lead to negative working capital. The IRR is imperative for a company to understand, so if necessary, they can afford to finance more activity or if necessary, they then can invest additional money (Hestwood, Lial, Hornsby, & McGinnis 2010)†. The formula used to calculate the PV is future value times (1/((1+i^n)) = present value. This calculation is useful in investment analysis to assess if an investment with a promised set amount of return in the future will give a net gain in the present value or will only appear to be increasing but containing the same or even less amount when time value of money is considered. For example, FV=$100, with an interest of 7.7% compounded annually and a period of 38 years. Using the formula and substituting the values into it, the equation is obtained: PV = 100 * [1/ (1+0.077)38] = 5.97 dollars The formula indicates the present value of $100 in 38 years from now given that the interest rate is 7.7% compounded annually is 5.97 dollars. Thus, it also means if an investment promises a return of 100 dollars after 38 years,  the interest rate is assumed to be fixed at 7.7%. Considering the effects of time and the value of money, the investor will have a net gain if the required initial investment is lower than 5.97 dollars, a breakeven point when the investment is 5.97 dollars and a loss if the required investment is higher than 5.97 dollars. In our capital budgeting case scenario, we will recommend acquiring Corporation B because it has higher NPV of $40,251.47 as compared to the Corporation A’s NPV of $20,979.20. In addition, Corporation B has higher IRR of 17% as compared to the Corporation A of 13%. There are many factors business owners should consider when acquiring other businesses. We believe financial forecasting should be used before the final acquisition decision is made. Financial forecasting is a very useful and an objective decision-making tool regarding the funding requirements of the organization in the future. By using forecasting, this helps the managers or owners plan properly and prioritize between multiple objectives of the firm such as growth, international expansion, cost cutting, research and development, and so on. It also helps to decrease potential failure by knowing and understanding the financial risks. Financial forecasting is therefore used for predicting realistically how the firm will perform financially in the future. A company uses three basic steps to forecast and project their financial needs correctly. Projecting a specific planning period’s revenue of sale and a company’s expenses are the first steps. During the first step it is important to use a method such as percent of sales, because this method will forecast financial variable of the company. Then we need to evaluate the stages of investment in both current assets and fixed assets to support the estimated sales. Throughout this stage, it is important to calculate the approximate sustainable growth rate. This rate will be the maximum rate in which sales may grow if the present financial ratio maintained without issuing new equity. The financial manager also needs to establish how the funds will be used in buying inventory, equipment, building, etc. that is capital expenditures. The step after investing in the current and fixed assets is to discover the financing  needs of a company during a specific period. Cash budget will play a significant role in this step because it provides and lays out a detailed plan of cash disbursements, cash receipts, and net changes. Moreover, it will identify new needs for any financing. In this capital budgeting case scenario, one must look at Corporation A’s data, Corporation with a discounted payback period of 4.6 months. This would recover its entire cash outflow by the end of the 5th year. Its cumulative cash inflow of up to the 4th year is -31,688 which is in negative. At the end of the 5th year it is at +20,979 thus, 31688/52668 = .6. Hence, discounted payback period will be 4.6 months. Corporation B has a discounted payback period of 4.24 months. Its cumulative cash inflow of up to the 4th year is -12964, which is in the negative. At the end if the 5th year it is +40251 thus, 12964/53215 = 24 hence, discounted payback period will be 4.24 months. With that being said, the best choice would be acquiring Corporation B because the payback period is shorter than of Corporation A. Not to mention Corporation B has a higher IRR of 17% compared to Corporation A which has an IRR of 13%. In addition, Corporation B has a higher profitability index of 1.16 compared to that of Corporation A, at 1.08. References Hestwood, D., Lial, M., Hornsby, J., & McGinnis, T. (2010). Quantitative reasoning for business. (custom e-text) Boston, MA: Pearson/Addison-Wesley. Sevilla, A., & Somers, K. (2007). Quantitative reasoning: Tools for today’s informed citizen (1st ed). Emeryville, CA: Key College Publishing.

Literary Analysis Paper – Cathedral

Literary Analysis paper – Cathedral â€Å"Cathedral† by Raymond Carver tells us short story about a blind man who comes to visit his friend and her husband. In the story, even though the husband can technically see and has a normal sight, in the beginning of the story he is the one who shows the signs of true â€Å"blindness† through inability to see Robert beyond his blindness, incapability to communicate with Robert, him feeling uncomfortable and acting awkward around Robert. The husband does not realize how Robert's blindness changes him as human being.Carver skillfully shows the occurrence of change in the personality of the husband from being very awkward around a blind man to coming to realization that Robert is a person and not just a blind man. In the story, â€Å"Cathedral† Carver brings out the concept of husband's spiritual blindness and the theme of broke marriage to shows what is wrong with the modern world. Carver portrays husband's spiritual blindness to show parallel to the spiritual blindness of the modern world.The narrator sees his wife's blind friend as handicap and not as a whole person. The narrator is not enthusiastic about the visit because blind people make the narrator uncomfortable â€Å"†¦ and his being blind bothered me. My idea of blindness came from the movies. In the movie the blind move slowly and never laughed. Sometimes they were led by seeing-eye dogs. The blind man in my house was not something I looked forward to† (114). In this way, Carver shows how spiritual blindness can limit people in our everyday life just as it did the husband.In reality, spiritually blind people are unable to understand matters beyond their physical site. The theme that Carver touched in the â€Å"Cathedral† of the spiritually blind verses physically blind has been touched in the Bible as well. Passage in John 9:1-41 points out an interesting comparison between physical and spiritual blindness that take s place in this passage. It mainly describes how a blind man who believed in Jesus as the Son of God was forgiven and men with sight who could not see what the blind man saw remained in their sin.It very much gives reassures that personal understanding of the truth, understanding of the things beyond your physical sight are far more important that the physical. Carver brings this theme in order to show the reader the problematic spiritual blindness of our modern society that looks more at the physical rather than looking at thing in a more deeper and meaningful prospective. Another way in which Carver points out the concept of broken marriage relationships in our society is by portraying characters as being in an unhappy, depressed marriage relationship.The narrator lacks true marriage relationship with his wife, as is evident not only in their sparring in the narrative present, but also in the remoteness of perspective as he tells the story of her attempted suicide a few years befo re: â€Å". . . one night she got to feeling lonely and cut off from people she kept losing in that moving-around life. She got to feeling she couldn't go it another step. She went in and swallowed all the pills and capsules in the medicine chest and washed them down with a bottle of gin. Then she got into a hot bath and passed out. But instead of dying she got sick. She threw up.Her officer—why should he have a name? he was the childhood sweetheart and what more does he want? —came home from somewhere, found her and called the ambulance† (115). Although an attempt to suicide may be considered a personal weakness, nether the less, the unhappy marriage relationship had its influence in this matter. Relationship with a person who has mental health problems can lower the satisfaction levels. It surely takes a toll to live with a depressed person. Like in the case with the narrator and his wife, the more depressed and more anxious they become, the more dissatisfied is the marriage.Untreated depression poses a very real threat to a marriage such as in the situation with the wife. This is in reality a big problem in our society today. Such as in the story husband and wife experienced depressed relationship and indeed, in the reality the depressed spouse will experience less happiness, satisfaction and contentment in the marriage. Narrator mentions â€Å"†¦ every night I smoked dope and stayed up as long as I could before I fell asleep. My wife and I hardly ever went to bed at the same time†¦ and in reality the partner will struggle with handling the increased isolation and social withdrawal of the depressed spouse, the loss of emotional intimacy, (and often sexual intimacy as well), and the prevalent negativity in the relationship. When one spouse is depressed, the depression colors everything in the relationship. The depressed spouse sees the world through a darkened lens that limits his or her perspective. The author wants to point out that the negative events are interpreted even more negatively; neutral events are also interpreted negatively, and the positive appenings are often overlooked. The depressed spouse often loses interest in activities that used to bring pleasure and may experience fatigue and listlessness. There can be loss of sleep or sleeping too much; eating too much or be like the husband that smokes marijuana to bring some excitement in to his life. Feelings of love and sexual desire may become dulled or absent when an individual is depressed. The biggest danger when this happens is that the depressed spouse may erroneously conclude that this means he or she is no longer in love with the mate.In conclusion, I would like to draw parallel between the story of â€Å"Cathedral† by Raymond Carver to our modern society. In our modern society, we continue to meet individuals similar to the character of the â€Å"husband† who have physical but not spiritual vision as well as facing simi lar broken marriage problems. The issues that Carver touched in his story are rather social and relevant to our modern society rather than related to single individual. In addition, we see individuals similar to the â€Å"blind man† who are physically disabled; however, they exhibit a truer intuition into life and their surroundings.They have the ability to see spiritual concepts and understand people and the world around them. We learn from the story that those who are physically enabled can still learn from those who may seem disabled but have in reality a better understanding of life. Sometimes experiencing the hard ships of life helps, us grow and experience life in a different way than we normally would. It is like one who cannot see the forest for the trees. Work Cited Jan Zlotnik Schmidt, Lynne Crockett. â€Å"Portable Legacies: Raymond Carver's ‘Cathedral'. â€Å"