Group Behavior Essay Example | Topics and Well Written Essays - 500 words

Group Behavior - Essay Example Successful management of the conflict makes the team stronger. Knowing the origin of a conflict helps a leader determine whether it is functional or dysfunctional. Functional conflicts are productive while the dysfunctional conflicts are disruptive. Common sources of conflict in the team are the limitation of resources and the values, attitudes, goals, roles, personalities, interdependency and interaction of the team members. Allan C. Amazon has identified two types of conflict, namely the cognitive conflict and the affective conflict. Amazon’s research suggests that both types of conflicts are necessarily present in any kind of group, with the cognitive conflict being productive and the affective conflict being disruptive. Cognitive conflicts lead to the personal growth of the team members, identification of a workable solution, increased integration and cohesiveness of the team members whereas the affective conflicts lead to unresolved problems, waste of energy, decline in t he team’s morale and team division. Training of the team members in such core competencies as knowledge of conflict resolution methods, entrustment and cooperation are fundamental to the success of a team. The Monmouth University proposes a five-stage conflict management strategy. The five stages are awareness of the conflict resolution, training of conflict resolution, mediation, reinforcement workshops and program institutionalization. Conflict resolution requires a leader to remain impartial and promote mutual understanding among the team members. To help prevent the conflict from occurring, the leader should establish ground rules at the outset, develop team agreement on the way to resolve conflict, train the team members on communication skills, and focus on the team’s objectives. There are numerous reactive strategies that a leader may adopt to resolve the conflict. The leader can either adopt an authoritative style, a splitting

Microsoft Vista and Home Computing Essay Example for Free

Microsoft Vista and Home Computing Essay In 2005, Microsoft announced that it was working on a new version of their Windows operating system that would fix many security problems that were plaguing Windows-XP users. Consequently, many software lovers eagerly anticipated the launch of the upgraded operating system, named Widows Vista. Unfortunately, after Vista was released in 2007, it disappointed most users and critics because of its lack-luster performance, high cost and incompatibility with XP software. It is worse than Windows XP, and home-computer users today are better off using Windows 7 Home Premium. Windows Vista was released five years after XP, taking longer to produce than previous versions of Windows. XP had numerous security flaws that allowed hackers to manipulate or destroy a computer user’s data or cripple network communication, and Microsoft aimed to fix these with Vista (Ricadela 2006). Viruses, spyware, trojans and other forms of malware can easily infect XP, especially when users access the internet. Microsoft’s preoccupation with fixing these bugs in XP eventually delayed the production and release of Vista (Ricciuti 2004). Unfortunately, after Vista was released in 2007, it met harsh criticism from press reviewers, corporate users and home-computing users. A corporate satisfaction survey launched in 2008 indicated that only 8% of Vista users were very satisfied compared to 40% for XP users (Keizer 2008). Netmarketshare (2010) also estimates that Vista has the smallest portion of users (14. 34%) among the currently-used Windows operating systems, with Windows 7 at second place (14. 46%) and XP with the most users at 61. 87% (2010). Home users will find it difficult to use Vista, especially if they have been used to the more stable XP operating system. XP users will realize that Vista’s system requirements are higher than XP’s. Consequently, existing users have to upgrade their computer hardware or buy a new computer altogether if they want to upgrade to Vista. Microsoft recommends at least a 1 GHz processor, 1 GB of Random Access Memory (RAM), a 128-MB video-graphics card capable of DirectX 9. 0, at least 40 GB of Hard Disk Drive (HDD) capacity with at least 15 GB of free space, and a DVD-ROM drive to install the software (Microsoft 2010). It may be possible to run Vista with less, but the performance will crawl. In reality, one needs much more than the stated requirements to achieve reasonable performance. Vista’s performance is also slower compared to XP and Windows 7. XP users will immediately notice the difference in speed when they start using Vista. Many tasks seem to crawl compared to XP. Benchmark tests run by Tom’s Hardware indicated that XP is generally faster than Vista, and the testers recommend sticking with XP because â€Å"it cannot perform better than Windows XP† (Schmid 2007). For example, basic tasks, such as copying files, are much slower than XP. Microsoft released a Service Pack upgrade to fix this problem, but ZDNet benchmark tests indicate that the upgraded Vista is still slower than XP (Kingsley-Hughes 2008). In fact, computers that were purchased pre-installed with licensed Vista software performed so poorly that customers wanted to downgrade it to XP, but retailers charged a fee for it. Consequently, customers sued Microsoft for this (Melanson 2009). Avid gamers will also be very disappointed if they use Vista in their home computers. Just like Tom’s Hardware, Techgage processed comparative tests using different games running in both Vista and XP. Naturally, XP was faster than Vista (Williams 2007). The graphics drivers of Vista are simply not developed enough, and the basic requirements of Vista itself are heavier than XP. Microsoft attempted to fix this again through a Service Pack upgrade. However, even after the â€Å"fix,† game developers still recommend Vista users to double the requirements of XP users. For instance, Capcom, the publisher of the game Devil May Cry 4, requires a minimum of 2 GB of memory for Vista users. However, XP users only need 1 GB (PC Game Requirements 2010). Some XP software and hardware are also not compatible with Vista. Existing home computer users who already spent a considerable investment in software will be frustrated again with Vista’s inability to run some of their existing computer programs such as virus scanners. Even many businesses did not bother to upgrade from XP to Vista when it was released because of this incompatibility issue (Deare 2007). The US Department of Transportation has also banned any upgrades from XP to Vista citing software incompatibility issues, costs and the lack of additional features that could prove to be useful or advantageous (McDougall 2007). Using Vista with WiFi will also be difficult. While connecting to networks with XP is not a problem, Vista sometimes refuses to connect with some networks (Claerr 2008). Even if one is able to connect to the router, the Internet may be absent or access to network files and printers may not be available. The user may also be disconnected intermittently from the router if he or she is able to connect, or the speed may be very slow. Fixes may involve upgrading routers, but if the router is not owned by the user, such as in airports, cafes or other public Wifi hotspots, then connections are not possible unless XP or other compatible operating systems are used. Vista also consumes more power than XP. This means that laptop batteries will drain faster using Vista. It is due to Vista’s higher hardware requirements that use more energy. Attempting to turn off some of Vista’s features, such as its fancy graphical interface, will make it more energy-efficient. However, doing the same with XP still makes it greener than Vista. Vista is also more expensive than XP or Windows 7. Microsoft Vista Home Premium currently retails for $239. 95 in online software retailers. On the other hand, Windows 7 Home Premium retails for only $199. 99. And if one buys a new, discounted, old-model personal computer today, with a CRT screen, a tower CPU and an extended keyboard for around 200 to 250 dollars, sometimes Windows XP is already bundled together with the entire package, making it virtually free. This is why Vista is not cost effective. Some of the new features of Vista are also not impressive compared to its predecessor, Windows XP and its successor Windows 7. The new graphical interface of Vista is more aesthetic than XP, but it slows down performance to the point where it is not worth it. The new versions of bundled software such as the internet browser, media player, email manager, photo manager, appointment manager and movie maker are either downloadable for free for XP users or available for free either from third-party vendors or packaged together with purchased hardware like cameras and scanners. The new security prompts can also be nagging or annoying. The most noticeable new feature for Vista is the Aero graphical user interface. Compared to XP, it appears more three-dimensional. The new eye candy has improved icons, animations and thumbnails that are live. The transparencies are also new. However, since Aero uses more energy, it drains the battery life of laptops. Turning it off will save power (Murph 2007). Another new feature that is immediately noticeable is the Windows Sidebar. It is a transparent panel where various applets or small programs called Desktop Gadgets can be attached or removed. These applets include gadgets such as clocks, weather information, news, photographs, currency converters and so forth. In Windows XP, a similar panel called Google Gadgets can be downloaded for free, courtesy of Google. Internet Explorer 7 also comes with Vista. This version has new features including multiple tabbed windows, the ability to zoom pages, a filter against phising (hackers attempting to gather important data such as passwords from users), additional security features, including restricting suspected malicious software from writing beyond the Temporary Internet Files folder without consent, and International Domain Name (IDN) support. However, these features and many more are included in free internet browsers such Mozilla’s Firefox and Google’s Chrome, which can be downloaded and installed using Windows XP or other operating systems for free. A new version of Windows Media Player, version 11, is also bundled with Vista. A new feature in this version allows users to search for music or video files while they type. This is called â€Å"word wheeling. † It also includes a new media library Graphical User Interface (GUI), a photo organizer and an Internet file-sharing feature. However, new versions of Media Player can be downloaded from Microsoft’s website under Windows XP for free. Moreover, there are other third-party software applications that provide free video and audio software, including codecs, to play all the latest types of media for free. Again, these can be downloaded from the Internet using XP or other operating systems. Vista also includes a new version of Outlook Express which was renamed Windows Mail. It features continuously-updated junk-mail and phishing filtering. However, there are better email management programs, such as Mozilla’s Thunderbird, that can again be downloaded for free from the Internet using XP or other operating systems. Windows email systems have also always been the prime target of hackers and malware authors, so using a different email program such as Thunderbird is more secure and safe. There are also new multimedia applications that are included In Vista, but these programs are usually included for free with the hardware that they support. For example, Vista includes Windows Photo Gallery, which allows users to import pictures from digital cameras, organize them, adjust their properties and produce slideshows. But software that is bundled for free with digital cameras is more advanced than Vista’s basic Photo Gallery. There are also new games included with Vista. A new chess and mahjong game is included. A folder is also included to organize all of the games. Unfortunately, like previous versions of Windows, the bundled games are not the type of commercial games that users like or want to play. And if they have an existing game collection already, they will run slower on Vista and may not even run at all. Vista also has speech recognition software integrated within Vista. It allows users to hear words in computer applications by allowing the computer to speak them out loud in a robotic voice that may not be comprehensible occasionally. This feature may be useful for those with visual problems, but usually the visually impaired purchase better speech recognition software such as Dragon Naturally Speaking, which is available in XP and other operating systems. Vista also has other minor new features. It has new fonts and improved international fonts. For mobile computer users, there is also a centralized control panel called the Windows Mobile Center for controlling properties needed by laptop user such as battery life, wireless connections, brightness, screen orientation and other settings. There is also a new version of Netmeeting renamed Windows Meeting Space. This allows different users to share their entire desktop or individual applications over the Internet with other users. And there is also a new version of the back up and restore application which facilitates the restoration of damaged data. The improvements however are not significantly new. In conclusion, home computer users should avoid Windows Vista altogether. If one is an existing XP user who is thinking about upgrading, one should just forget about it since it may make home computing worse. It is also overpriced. However, if one is purchasing a brand new state-of-the-art PC or laptop with an option for choosing one’s operating system, then Windows 7 is the answer. On the other hand, if one is on a budget and wishes to purchase new, discounted, old-model PCs pre-installed with licensed versions of Windows XP, then that is a satisfactory option as well. But whatever one does, one should always avoid Vista. It’s a lemon. References Claerre, J. (2008). Vista Problems With WiFi. eHow. Retrieved August 13, 2010, from http://www. ehow. com/about_5106461_vista-problems-wifi. html Deare, Steven. (2007, May 14). Gartner: App testing delaying Vista rollouts. ZDNet. Retrieved August 13, 2010, from http://www. zdnetasia. com/gartner-app-testing-delaying-vista-rollouts-62012902. htm Devil May Cry 4 Game Requirements. (2008, Jul 26). PC Game Requirements. Retrieved August 13, 2010, from http://www. pcgamerequirements. com/game-index/devil-may-cry-4-game-requirements/ Keizer, G. (2008, Mar 26). Leopard drubs Vista in corporate satisfaction survey. Computerworld. Retrieved August 13, 2010, from http://www. computerworld. com/s/article/9072218/Leopard_drubs_Vista_in_corporate_satisfaction_survey? nlid=1source=NLT_AM Kingsley-Hughes, A. (2008, Feb 15). Vista SP1 vs. XP SP2 – Benchmarked. ZDnet. Retrieved August 13, 2010, from http://www. zdnet. com/blog/hardware/vista-sp1-vs-xp-sp2-benchmarked/1332 McDougall, P. (2007, Mar 2). Microsoft Hit By U. S. DOT Ban On Windows Vista, Explorer 7, and Office 2007. Information Week. Retrieved August 13, 2010, from http://www. informationweek. com/news/security/showArticle. jhtml? articleID=197700789 Melanson, D. (2009, Feb 16). Microsoft gets sued over Windows XP downgrade fees. Engadget. Retrieved August 13, 2010, from http://www. engadget. com/2009/02/16/microsoft-gets-sued-over-windows-xp-downgrade-fees/ Microsoft. (2010). Windows Vista Enterprise Hardware Planning Guidance. Technet. Retrieved August 13, 2010, from http://technet. microsoft. com/en-us/library/cc507845. aspx Murph, D. (2007, May 3). Vistas Aero interface blamed for truncated battery life. Engadget. Retrieved Aug 13, 2010, from http://www. engadget. com/2007/05/04/vistas-aero-interface-blamed-for-truncated-battery-life/ Netmarketshare. (2010, Jul). Operating System Market Share. Retrieved Aug 13, 2010, from http://marketshare. hitslink. com/operating-system-market-share. aspx? qprid=10 Ricadela, A. (2006, Feb 14). Gates Says Security Is Job One For Vista. Information Week. Retrieved August 13, 2010, from http://www. informationweek.com/news/windows/microsoft_news/showArticle. jhtml? articleID=180201580 Ricciuti, M. (2004, Apr 1). Microsoft: Longhorn beta unlikely this year. Cnet News. Retrieved August 13, 2010, from http://news. cnet. com/Microsoft-Longhorn-beta-unlikely-this-year/2100-1008_3-5183385. html Schmid, P. (2007, Jan 29). Windows XP vs. Vista: The Benchmark Rundown. Tom’s Hardware. Retrieved August 13, 2010, from http://www. tomshardware. com/reviews/xp-vs-vista,1531. html Williams, Rob. (2007, Jan 29). Windows Vista Gaming Performance Reports. Techgage. Retrieved August 13, 2010, from http://techgage. com/article/windows_vista_gaming_performance_reports/2

Informatics In Public Health Information Technology Essay

Informatics In Public Health Information Technology Essay Yasnoff et al(2000)stated that effective public health requires timely, accurate, and informative information from a wide variety of sources. Not surprisingly, public health professionals have been among the earliest users of computers , other information technologies from which numerous and useful computerized information and surveillance systems have been developed(Yasnoff et al, 2000).A more systematic and informed approach to the application of information science and technology needs to be utilized in order to take full advantage of its potential to enhance and facilitate public health activities(Yasnoff et al, 2000). However, OCarroll et al(2002)defined public health informatics as the systematic application of information and computer science and technology to public health practice, research, and learning. Public health informatics is primarily an engineering discipline and a practical activity ungirded by science and oriented to the accomplishment of specific tasks(OCarroll et al, 2002). How informatics impact or improve public health? The scope of public health informatics includes the conceptualization, design, development, deployment, refinement maintenance, and evaluation of communication, surveillance, information, and learning systems relevant to public health(OCarroll et al, 2002). Using strategies and standards, practitioners employ public health informatics tools and training to maximize health impacts at local, state, and national levels(CDC, 2006).They develop and deploy information technology solutions that provide accurate, timely, and secure information to guide public health action(CDC, 2006). Public health informatics involves the application of knowledge and practice from numerous disciplines that contribute to public health(OCarroll et al, 2002).Advances in public health informatics resulted in public health innovations and added value to interventions by providing the capability for more timely detection of health problems and more complete and efficient health communications (CDC, 2006). Surveillance is an aspect of public health that can be dramatically transformed by the application of information technology(Yasnoff et al, 2000). How public health informatics is different from medical informatics? The primary focus of public health informatics is on the applications of information science and technology that promote the health of populations while the primary focus of medical informatics is on the health of specific individuals who presents with a specific disease or condition requiring diagnosis and treatment(OCarroll et al, 2002). A primary focus of public health informatics is on the applications of information science and technology that prevent disease and injury by altering the conditions that put populations of individuals at risk while whereas medical informatics is on the application of information science and technology for the treatment of individuals who already have a disease or high risk conditions(OCarroll et al, 2002). Prevention approach in public health informatics is not predetermined by professional discipline, but rather by effectiveness, expediency, cost, and social acceptability of intervening at various potentially vulnerable points in a causal chain whereas medical informatics preventive interventions is within the context of each professional discipline with focus on one or a few points in the causal chain(OCarroll et al, 2002). Public health informatics is not restricted to particular social, behavioral, or environmental contexts whereas medical informatics is restricted to clinical and surgical encounters(OCarroll et al, 2002). Public health informatics involves operation within a governmental context requiring responsiveness to legislative, regulatory, and policy directives whereas medical informatics involves operation through private practices, clinics, hospitals, with governmental direction primarily in terms of quality assurance (OCarroll et al, 2002). References. OCarroll, P,W; Yasnoff, W, A; Ward, M,E; Ripp, L,H; Martin,E;L.(2002).Public health informatics and information systems. Springer. Yasnoff, W, A; OCarroll, P,W; Koo, D; Linkins, R, W; Kilbourne,E;M.(2000).Public health informatics: Improving and transforming public health in the information age. Journal of Public Health Management Practice Vol 6(6); p67-75. CDC(2006).Informatics and public health at CDC. MMWR Vol 55(SUP02); 25-28. Retrieved from http//www.cdc.gov/mmwr/preview/mmwrhtml/su5502a10.htm Top of Form Week 1: Introduction to Informatics in Public Health Discussion It was not until 1988 that efforts by the Institute of Medicine described public health with a working definition that outlined its mission, components, and core functions, as a result, the focus began to shift from medicine and treatment of disease to public health and its goals of prevention and health promotion (Schneider 2006). As noted by OCarroll (2003), with public health reform, an increase in managed care and the revolution of new technology, public health professionals increased the need of public health informatics forcing the transition of traditional methods of information storage to the development of technological software. Prior to the emergence of public health as a discipline, medical informatics was employed in various healthcare institutions. Hasman and Haux (1996) described medical informatics as discipline that intersects information science, computer science, and health care to address the storage, retrieval, and use biomedical information for problem solving and decision making. To keep abreast of an ever changing technological society, public health informatics emerged. OCarroll, 2003 noted that public health informatics is defined as the systematic application of information and computer science and technology to public health practice, research and learning (p5). According to OCarroll (2003), it is different from medical informatics because it focuses on populations, disease prevention, preventative interventions, and governmental operations. Informatics is now a discipline that is increasing being integrated into the field of public health. The National Center for Public Health Informatics (NCPHI), for example, is one of the national centers of the Centers for Disease Control and Prevention (CDC). Started in 2005, the NCPHI in composed of five divisions and seeks to use information technology to aid in surveillance, outbreak response, and laboratory reporting and other aspects of public health. The goals of the center is to enhance monitoring and research and increase real time access to health information. The National Centers for Public Health Informatics although a fairly new have several tools in place to maximize access to health information (CDC 2009). The use of informatics of found throughout the field of public health. With the development of new technology, public health informatics seeks to further incorporate new software to enhance the effectiveness and efficiency of the collection, analysis, and reporting of public health information. To fully embrace the impact informatics can have on public health OCarroll (2003) claimed that education and training is imperative to decrease the sense of inadequacy among public health professionals and promote the widespread implementation of public health informatics as a discipline.

South Africa - Diverse In Culture But Could Be Unified In Language :: essays research papers

South Africa is diverse in culture but could be unified in language. English should be South Africa’s unifying language. It is necessary to understand what nationhood is, so that you the reader realise that a national language does not alter a nation. It binds the nation. I will also discuss South Africa’s diverse cultures and how a unifying language can merge these cultures. Lastly, I will demonstrate the links between language and identity. The concept of a nation is not easily defined. †Nationalism is a deeply contradictory enterprise.† (P Brooker, 1999,148). Our nation is one that has been formed over many years and languages have been brought to us through imperialism, immigrants and time. We have to accept that, †for most nations of the world to escape the profound experience of imperialism would be in fact to escape their own actual history† (P Brooker, 1999,148). We cannot deny that there is an assortment of language, which abound this nation. However, we need to choose one unifying language, which we can all use. This is essential for purposes of communication and mediation, which I will discuss later. This national language would be the only official language and English would be the unifying language. Identity is an ever-changing concept. South Africans sexuality, class, gender, race and even language determine our identity. †Contemporary identities can therefore be fluid or consciously delimited. Any number of factors are likely to be under negotiation in either case; whether of religion, nation, language, political ideology or cultural expression† (P Brooker, 1999,109). Our South African identity is one which has changed through imperialism and it is one that has changed through apartheid and it is one which will continue changing in order to progress therefore a national language such as English can become a part of this ever changing south African identity. A national language will not change the identities of South Africans, it will enhance it. People will still speak their different languages however when we are together we will have a common form of communication. In English-medium schools, for example, English is used as a medium for the study of a wide range of subjects. The students and the teachers come from different cultural backgrounds and many speak different languages at home but they use a common language for educational purposes. This means that an Indian teacher, who maybe speaks Tamil at home, can teach students, who might speak Zulu at home, using a common language, (S. South Africa - Diverse In Culture But Could Be Unified In Language :: essays research papers South Africa is diverse in culture but could be unified in language. English should be South Africa’s unifying language. It is necessary to understand what nationhood is, so that you the reader realise that a national language does not alter a nation. It binds the nation. I will also discuss South Africa’s diverse cultures and how a unifying language can merge these cultures. Lastly, I will demonstrate the links between language and identity. The concept of a nation is not easily defined. †Nationalism is a deeply contradictory enterprise.† (P Brooker, 1999,148). Our nation is one that has been formed over many years and languages have been brought to us through imperialism, immigrants and time. We have to accept that, †for most nations of the world to escape the profound experience of imperialism would be in fact to escape their own actual history† (P Brooker, 1999,148). We cannot deny that there is an assortment of language, which abound this nation. However, we need to choose one unifying language, which we can all use. This is essential for purposes of communication and mediation, which I will discuss later. This national language would be the only official language and English would be the unifying language. Identity is an ever-changing concept. South Africans sexuality, class, gender, race and even language determine our identity. †Contemporary identities can therefore be fluid or consciously delimited. Any number of factors are likely to be under negotiation in either case; whether of religion, nation, language, political ideology or cultural expression† (P Brooker, 1999,109). Our South African identity is one which has changed through imperialism and it is one that has changed through apartheid and it is one which will continue changing in order to progress therefore a national language such as English can become a part of this ever changing south African identity. A national language will not change the identities of South Africans, it will enhance it. People will still speak their different languages however when we are together we will have a common form of communication. In English-medium schools, for example, English is used as a medium for the study of a wide range of subjects. The students and the teachers come from different cultural backgrounds and many speak different languages at home but they use a common language for educational purposes. This means that an Indian teacher, who maybe speaks Tamil at home, can teach students, who might speak Zulu at home, using a common language, (S.

Corporate Structure

Demand for disclosure has been spurred by information asymmetry and agency conflict between management and investors. Good corporate structure principles are the foundation upon which trust of investors and lenders is built, corporate governance is a philosophy and mechanism that entails putting in place better structures and processes through which the affairs of a company are directed and managed to enhance long term shareholders value through transparency and accountability. Previous empirical studies on the association between cost of equity capital and voluntary disclosure have documented confusing results, Botosan and Plumlee (2002) found a positive association exists between voluntary disclosure and cost of equity capital while Gietzmann and Ireland (2005) found a negative relationship between disclosure and cost of capital. Increased application of corporate governance all over the world has risen after major corporate scandals due to lack or improper corporate disclosure, this has resulted to investors and lenders lose confidence in the traditional financial reporting. Transparency and disclosure creates and sustains confidence of investors, stakeholders and the winder society and provides opportunity for continuous improvement of business structure and processes this has resulted to re-examination and scrutiny of the existing corporate disclosure thus spurring the need for expanding the existing disclosure policy. Voluntary disclosure, being one key pillar of corporate governance is regarded as an external mechanism for the control of the management, protection of the shareholders and a decrease of the agency costs resulting from information asymmetry between the management and shareholders. Botosan (2002) observed that firms which disclose more information in their annual reports enjoy the benefit of lower cost of capital. The current growing trend towards increased corporate disclosure will soon transform into a veritable river of additional information.Although the purpose of disclosure is to provide adequate and sufficient information to the various stakeholders, managers may choose not to disclosure certain information in orders to protect competitive advantage Kavitha and Nandagopal,(2011). Studies have shown that public firms are careful about disclosing information that might lead to competitive disadvantage, example, information about technological innovations, strategic and specific operation data Elliott and Jacobson (1994). The decision on the optimal level of disclosure is thus affected by the interplay between the costs and the benefits of disclosure. 1.2 Voluntary Disclosure Elements of voluntary disclosure will be classified into four classes of information disclosure as forward-looking, financial, corporate social responsibility and board size. Voluntary disclosure is regarded as an important economic tool that aids communicating information to different market players in an industry with an aim of providing clear view about business's long term sustainability. Information disclosure conveys company's information to the owners, stakeholders and general public about the quality and value of the company Hamrouni et al.,(2015).Corporate disclosure falls into two categories, mandatory disclosure and voluntary disclosure covering all types of information, both of financial and non-financial in nature. Laws, regulations and accounting standards stipulate mandatory information disclosure whereas voluntary disclosure is the information reported beyond the statutory requirements. Meek el al, (1995) defines voluntary disclosure as the free option on the part of the company management to provide accounting and other information deemed pertinent to the decision needs of users of their annual reports. The extent and type of voluntary disclosure is dependent of the industry, size, governance structure, ownership structure and geographic region. Boesso and Kumar (2007) claimed that one of the determinants that led to the emergence of voluntary disclosure was the inadequacy of financial reporting as claimed by investors and shareholders . Investors increasingly demanded openness and disclosure of information relating to performance and strategies. Organizations gains some benefit by virtue of disclosing sustainably over and above the statutory required information. Li and McConomy (1999) found that firms in better financial conditions are more likely to voluntarily adopt new International Financial Reporting Standards (IRFS) on environmental disclosure and hence become more profitable and reduce the cost of compliance. Spanheimer and Koch (2000) noted the primary motive for adopting informative accounting as the access to global funding, worldwide comparability of financial statements, increased transparency and pressure from capital markets. Ross (1997) found that companies that provide more information disclosures reduced the occurrence of information asymmetry between the owners and manager, subsequently get to enjoy low cost of capital. The benefits of disclosure are for example, increased share price will lower cost of capital resulting from a firm's full disclosure Nayak, (2012). Investors and creditors are better informed with a high level of disclosure making them understand the economic risk of the investment Elliott and Jacobsom, (1994). Disclosure is generally done in the company annual report either through the statements or notes accompanying the statements. The disclosure elements in the study for measuring the level of voluntary disclosure will include forward-looking information, financial and capital information, corporate social responsibility information and board size information. Forward-looking information represents one form of corporate disclosure. It provides a confidence signaling power to the stakeholder in the management capability to foresee the future prospects of the business. According to Celik et al. (2006) forward-looking information helps to predict the future of a company in terms of performance and strength of the management. Management credibility is gained by accurately predicting company future forecast over and over. Even though the shareholders frequently question the management about what is going to happen to the company in future, the management cannot predict or gives a certain answer to what is going to happen but they observe market trends and then present the shareholders with explanations about what the company future prospects. Companies that wish to access external sources of finance may tend to disclose more forward-looking information to enable them gain investors confidence Clarkson, Kao and Richardson (1994). Jenkins Report (AICPA, 1994) formulated a number of key recommendations to increase the quality of corporate reporting, which included increasing the attention for and provision of forward-looking information. Financial information disclosure helps stakeholders to evaluate company performance before making any investment decisions about the company. Improved information disclosure does not only bridge the information asymmetry between management and shareholders but also facilitate the functioning of the financial and economic systems. Adequate disclosure is used as a mean of attracting new investors in addition to supporting and building company reputation. To reduce vulnerability, information disclosure should be comprehensive, timely, informative and credible in nature. Financial information is derived from the financial reports prepared from the books of accounts and analyzed in various categories such as the income statements, balance sheet, statement of cash flows and statements of changes in equity. Corporate Social Responsibility (CSR) interpreted as the way firms integrate its social, environmental and economic concerns into their value, culture, operations and strategies. Carroll, (1999) noted CSR as an evolving concept. Centre for corporate governance (2005) issued guidelines which encouraged companies to disclose information on CSR, ownership structure and board size (Barako, 2007). CSR efforts translate into improvements in firms' financial performance. Corporate social reporting disclosure enhances company reputation by gaining trust and support from the stakeholders (Woodwar, Edwards and Birkin, 1996), additionally it helps assess congruence between the social value and social norms (Dowling and Pfeffer, 1975). CSR enables firms to access huge sum of finance that might difficult to obtain.Board size is the total number of directors on a corporate board. The board of directors is the apex organ of a company whose central role being the formulation of polices and strategies to be followed by managers in managing firms operations. Board plays an important role in maintaining effective corporate governance. It is the Board that determines the amount of information disclosure by making strategic decision on the level of voluntary disclosure. Chen and Jaggi (2000) noted that greater number of directors on the board may reduce the likelihood of information asymmetry. It is believed that the size of the board affects the ability of the board to monitor and evaluate management. Increase of directors in the board will consequently increase director's ability to control and promote value creating activities. Larger board bring with them a collection of experience and expertise, therefore expanding the need for higher information disclosure, it is also argued that larger board size may find difficulty in arriving at a consensus in decision which can ultimately affect the quality corporate governance while small board size encourages faster information processing . Brudbury (1992). 1.3 Cost of Equity CapitalThe cost of equity is the return that an investor expects to receive from an investment in a business. This cost represents the amount the market expects as compensation in exchange for owing the stock of the business, it consist of dividends and capital gains. From an investor's perspective, cost of equity capital is the return he expects for a share of stock he keeps in his portfolio. Fama and French (1993) found risk growth and size as the factors that influence the required rate of return by investors. When making decisions which affect the firm, Cost of equity plays a crucial role because it affects the discount rate at which expected future cash flows are valued. In archiving an effective strategic decision making and performance evaluation, the cost of equity should be estimated with accuracy. According to Beneda (2003) the cost of equity is a vital base of comparing investment opportunities. Invertors use the concept of cost of equity as an investment opportunity in a company. Cost of equity is one of the methods used to evaluate investment decisions, example capital budgeting analysis, choice of capital structure and firm valuation. Larger firms are associated with lower cost of capital when compared with the smaller firms since they are in a better position to raise funds from external sources on favorable terms. Equity capital plays a fundamental role in the development of a firm due to its advantages when compared to other financing forms. The cost of equity capital is an important component with significant input in calculating the cost of capital Cotner and Fletcher (2000). It is detrimental to apply less appropriate model to estimate cost of capital, this can result to underestimation or overestimation. Underestimation may result in value destructive investments while overestimation may lead to rejection of promising investment opportunities. The cost of equity capital is a key indicator of operations in the financial markets and is used by managers and financial resource providers. Clear financial statements reduce uncertainties associated with shareholders' equity lending to decrease in the cost of equity while incomplete and unclear financial statements increases uncertainty hence causing information risk to shareholders who hence demand higher return. The cost of equity capital is of importance in two folds: securities valuation models are based on the cost of equity capital and without cost of equity capital it is impractible to invest company money as it is difficult to determine capital structure hence unable to determine investment priority (Ahmend, 2007). Manager being agents of the shareholders try minimize the cost of equity hence maximizing shareholders wealth at this same time improving the value of the company. In most financial decisions, cost of equity is an effective determinant factor. Cost of equity is used in capital budgeting decisions, setting optimal structure and working capital management. Implementing corporate governance practice, the high cost of equity capital problem is overcome. The higher level of voluntary disclosure the lower investor uncertainty, with lower uncertainty investors will be willing to accept lower dividend payouts. A lower dividend stream would decrease the cost of equity capital because of a lower risk premium expected by the investors. Lower risk premium demanded by investors translate into a lower cost of equity capital of the firm. Voluntary disclosure reduces the cost of equity capital in two ways which are based on enhanced stock market liquidity and on the reduced non-diversifiable estimation risk. More voluntary disclosure reduces investor uncertainty and attracts long term investments. Determinants of the cost of equity capital can be categorized into two: variables measured on accounting information only (accounting based) and variables measured on relations between market data and accounting data (market based).

The Juice

chapter seven measuring domestic output and national income CHAPTER OVERVIEW News headlines frequently report the status of the nation’s economic conditions, but to many citizens the information is confusing or incomprehensible. This chapter acquaints students with the basic language of macroeconomics and national income accounting. GDP is defined and explained. Then, the differences between the expenditure and income approaches to determining GDP are discussed and analyzed in terms of their component parts. The income and expenditure approaches are developed gradually from the basic expenditure-income identity, through tables and figures.The importance of investment is given considerable emphasis, including the nature of investment, the distinction between gross and net investment, the role of inventory changes, and the impact of net investment on economic growth. On the income side, nonincome charges—depreciation and indirect business taxes—are covered in detai l because these usually give students the most trouble. Other measures of economic activity are defined and discussed, with special emphasis on using price indexes. The purpose and procedure of deflating and inflating nominal GDP are carefully explained and illustrated.Finally, the shortcomings of current GDP measurement techniques are examined. Global comparisons are made with respect to size of national GDP and size of the underground economy. The Last Word looks at the sources of data for the GDP accounts. INSTRUCTIONAL OBJECTIVES After completing this chapter, students should be able to 1. State the purposes of national income accounting. 2. List the components of GDP in the output (expenditures) approach and in the income approach. 3. Compute GDP using either the expenditure or income approach when given national income data. 4. Differentiate between gross and net investment. . Explain why changes in inventories are investments. 6. Discuss the relationship between net investmen t and economic growth. 7. Compute NDP, NI, PI, and DI when given relevant data. 8. Describe the system represented by the circular flow in this chapter when given a copy of the diagram. 9. Calculate a GDP price index using simple hypothetical data. 10. Find real GDP by adjusting nominal GDP with use of a price index. 11. List seven shortcomings of GDP as an index of social welfare. 12. Explain what is meant by the underground economy and state its approximate size in the U.S. and how that compares to other nations. 13. Give an estimate of actual 2002 (or later) U. S. GDP in trillions of dollars and be able to rank the U. S. relative to a few other countries. 14. Define and identify terms and concepts listed at the end of the chapter. LECTURE NOTES I. Assessing the Economy’s Performance A. National income accounting measures the economy’s performance by measuring the flows of income and expenditures over a period of time. B. National income accounts serve a purpose for the economy similar to income statements for business firms.C. Consistent definition of terms and measurement techniques allows us to use the national accounts in comparing conditions over time and across countries. D. The national income accounts provide a basis for appropriate public policies to improve economic performance. II. Gross Domestic Product A. GDP is the monetary measure of the total market value of all final goods and services produced within a country in one year. 1. Money valuation allows the summing of apples and oranges; money acts as the common denominator. (See Table 7. 1. ) 2.GDP includes only final products and services; it avoids double or multiple counting by eliminating any intermediate goods used in production of these final goods or services. (Table 7. 2 illustrates how including sales of intermediate goods would overstate GDP. ) 3. GDP is the value of what has been produced in the economy over the year, not what was actually sold. B. GDP Excludes Nonprodu ction Transactions 1. GDP is designed to measure what is produced or created over the current time period. Existing assets or property that was sold or transferred, including used items, are not counted. . Purely financial transactions are excluded. a. Public transfer payments, like social security or cash welfare benefits. b. Private transfer payments, like student allowances or alimony payments. c. The sale of stocks and bonds represent a transfer of existing assets. (However, the brokers’ fees are included for services rendered. ) 3. Secondhand sales are excluded; they do not represent current output. (However, any value added between purchase and resale is included, e. g. , used car dealers. ) C. Two Ways to Look at GDP: Spending and Income. 1.What is spent on a product is income to those who helped to produce and sell it. 2. This is an important identity and the foundation of the national accounting process. D. Expenditures Approach (See Figure 7. 1 and Table 7. 3. ) 1. GDP is divided into the categories of buyers in the market; household consumers, businesses, government, and foreign buyers. 2. Personal Consumption Expenditures—(C)—includes durable goods (goods lasting 3 years or more), nondurable goods, and services. 3. Gross Private Domestic Investment—(Ig) a. All final purchases of machinery, equipment, and tools by businesses. . All construction (including residential). c. Changes in business inventory. i. If total output exceeds current sales, inventories build up. ii. If businesses are able to sell more than they currently produce, this entry will be a negative number. d. Net Private Domestic Investment—(In). i. Each year as current output is being produced, existing capital equipment is wearing out and buildings are deteriorating; this is called depreciation or consumption of fixed capital. ii. Gross Investment minus depreciation (consumption of fixed capital) is called net investment. iii.If more new structures and capital equipment are produced in a given year than are used up, the productive capacity of the economy will expand. (Figure 7. 2) iv. When gross investment and depreciation are equal, a nation’s productive capacity is static. v. When gross investment is less than depreciation, an economy’s production capacity declines. vi. CONSIDER THIS †¦ Stock Answers about Flows 4. Government Purchases (of consumption goods and capital goods) – (G) a. Includes spending by all levels of government (federal, state, and local). b.Includes all direct purchases of resources (labor in particular). c. This entry excludes transfer payments since these outlays do not reflect current production. 5. Net Exports— (Xn) a. All spending on final goods produced in the U. S. must be included in GDP, whether the purchase is made here or abroad. b. Often goods purchased and measured in the U. S. are produced elsewhere (Imports). c. Therefore, net exports, (Xn) is the difference : (exports minus imports) and can be either a positive or negative number depending on which is the larger amount. 6. Summary: GDP = C + Ig + G + Xn E.Income Approach to GDP (See Table 7. 3): Demonstrates how the expenditures on final products are allocated to resource suppliers. 1. Compensation of employees includes wages, salaries, fringe benefits, salary and supplements, and payments made on behalf of workers like social security and other health and pension plans. 2. Rents: payments for supplying property resources (adjusted for depreciation it is net rent). 3. Interest: payments from private business to suppliers of money capital. 4. Proprietors’ income: income of incorporated businesses, sole proprietorships, partnerships, and cooperatives. . Corporate profits: After corporate income taxes are paid to government, dividends are distributed to the shareholders, and the remainder is left as undistributed corporate profits. 6. The sum of the above entries equals national in come: all income earned by American-supplied resources, whether here or abroad. 7. Adjustments required to balance both sides of the account: a. Indirect business taxes: general sales taxes, excise taxes, business property taxes, license fees and customs duties (the seller treats these taxes as a cost of production). . Depreciation/Consumption of Fixed Capital: The firm also regards the decline of its capital stock as a cost of production. The depreciation allowance is set aside to replace the machinery and equipment used up. In addition to the depreciation of private capital, public capital (government buildings, port facilities, etc. ), must be included in this entry. c. Net foreign factor income: National income measures the income of Americans both here and abroad. GDP measures the output of the geographical U. S. regardless of the nationality of the contributors.To make this final adjustment, the income of foreign nationals must be added and American income earned abroad must b e subtracted. Sometimes this entry is a negative number. (Without this adjustment you have GNP. ) III. Other National Accounts (see Table 7. 4) A. Net domestic product (NDP) is equal to GDP minus depreciation allowance (consumption of fixed capital). B. National income (NI) is income earned by American-owned resources here or abroad. Adjust NDP by subtracting indirect business taxes and adding net American income earned abroad. Note: This may be a negative number if foreigners earned more in U. S. than American resources earned abroad. ) C. Personal income (PI) is income received by households. To calculate, take NI minus payroll taxes (social security contributions), minus corporate profits taxes, minus undistributed corporate profits, and add transfer payments. D. Disposable income (DI) is personal income less personal taxes. IV. Circular Flow Revisited (see Figure 7. 3) A. Compare to the simpler model presented in earlier chapters. Now both government and foreign trade sectors ar e added.B. Note that the inside covers of the text contain a useful historical summary of national income accounts and related statistics. V. Nominal versus Real GDP A. Nominal GDP is the market value of all final goods and services produced in a year. 1. GDP is a (P x Q) figure including every item produced in the economy. Money is the common denominator that allows us to sum the total output. 2. To measure changes in the quantity of output, we need a yardstick that stays the same size. To make comparisons of length, a yard must remain 36 inches.To make comparisons of real output, a dollar must keep the same purchasing power. 3. Nominal GDP is calculated using the current prices prevailing when the output was produced, but real GDP is a figure that has been adjusted for price level changes. B. The adjustment process in a one-good economy (Table 7. 5). Valid comparisons cannot be made with nominal GDP alone, since both prices and quantities are subject to change. Some method to sepa rate the two effects must be devised. 1. One method is to first determine a price index, (see Equation 1) and then adjust the nominal GDP figures by dividing y the price index (in hundredths) (see Equation 2). 2. An alternative method is to gather separate data on the quantity of physical output and determine what it would sell for in the base year. The result is Real GDP. The price index is implied in the ratio: Nominal GDP/Real GDP. Multiply by 100 to put it in standard index form (see Equation 3). C. Real World Considerations and Data 1. The actual GDP price index in the U. S. is called the chain-type annual-weights price index, and is more complex than can be illustrated here. 2.Once nominal GDP and the GDP price index are established, the relationship between them and real GDP is clear (see Table 7. 7). 3. The base year price index is always 100, since Nominal GDP and Real GDP use the same prices. Because the long-term trend has been for prices to rise, adjusting Nominal GDP to Real GDP involves inflating the lower prices before the base year and deflating the higher prices after the base year. 4. Real GDP values allow more direct comparison of physical output from one year to the next, because a â€Å"constant dollar† measuring device has been used. The purchasing power of the dollar has been standardized at the base-year level. ) VI. Shortcomings of GDP A. GDP doesn’t measure some very useful output because it is unpaid (homemakers’ services, parental child care, volunteer efforts, home improvement projects). B. GDP doesn’t measure improvements in product quality or make allowances for increased leisure time. C. GDP doesn’t measure improved living conditions as a result of more leisure. D. GDP makes no value adjustments for changes in the composition of output or the distribution of income. . Nominal GDP simply adds the dollar value of what is produced; it makes no difference if the product is a semiautomatic rifle or a jar of baby food. 2. Per capita GDP may give some hint as to the relative standard of living in the economy; but GDP figures do not provide information about how the income is distributed. E. The Underground Economy 1. Illegal activities are not counted in GDP (estimated to be around 8% of U. S. GDP). 2. Legal economic activity may also be part of the â€Å"underground,† usually in an effort to avoid taxation. F.GDP and the environment 1. The harmful effects of pollution are not deducted from GDP (oil spills, increased incidence of cancer, destruction of habitat for wildlife, the loss of a clear unobstructed view). 2. GDP does include payments made for cleaning up oil spills and the cost of health care for cancer victims. G. Noneconomic Sources of well-being like courtesy, crime reduction, etc. , are not covered in GDP. VII. LAST WORD: Feeding the GDP Accounts A. GDP is compiled by the Bureau of Economic Analysis (BEA) in the U. S. Commerce Department.Where does it get its data? Explanation follows. B. Consumption data comes from 1. Census Bureau’s â€Å"Retain Trade Survey† from a sample of 22,000 firms. 2. Census Bureau’s â€Å"Survey of Manufacturers,† which gets information on consumer goods shipments from 50,000 firms. 3. Census Bureau’s â€Å"Service Survey† of 30,000 service businesses. 4. Industry trade sources like auto and aircraft sales. C. Investment data comes from 1. All the consumption sources listed above. 2. Census construction surveys. D. Government purchase data is obtained from 1. U. S.Office of Personnel Management, which collects data on wages and benefits. 2. Census construction surveys of public projects. 3. Census Bureau’s â€Å"Survey of Government Finance. † E. Net export information comes from 1. U. S. Customs Service data on exports and imports. 2. BEA surveys on service exports and imports. ANSWERS TO END-OF-CHAPTER QUESTIONS 7-1In what ways are national income stati stics useful? National income accounting does for the economy as a whole what private accounting does for businesses. Firms measure income and expenditures to assess their economic health.The national income accounting system measures the level of production in the economy at some particular time and helps explain the significance at that level. By comparing national accounts over a number of years, we can track the long-run course of the economy. Information supplied by national accounts provide a basis for designing and applying public policies to improve the performance of the economy. Without national accounts, economic policy would be guesswork. National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health. -2Explain why an economy’s output is also its income? Everything that is produced is sold, even if the â€Å"selling,† in the case of inventory, is to the producing firm itself. Since the same amount of money paid out by the buyers of the economy’s output is received by the sellers as income (looking only at a private-sector economy at this point), â€Å"an economy’s output is also its income. † 3. (Key Question) Why do national income accountants include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold?Why don’t they include the value of used furniture bought and sold? The dollar value of final goods includes the dollar value of intermediate goods. If intermediate goods were counted, then multiple counting would occur. The value of steel (an intermediate good) used in autos is included in the price of the auto (a final product). This value is not included in GDP because such sales and purchases simply transfer the ownership of existing assets; such sales and purchases are not themselves (economic) investment and thus should not be counted as production of final goods and services.Used furniture was produced in some previous year; it was counted as GDP then. Its resale does not measure new production. 7-4What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two measures of investment spending would be appropriate? Explain. Gross private domestic investment less depreciation is net private domestic investment. Depreciation is the value of all the physical capital—machines, quipment, buildings—used up in producing the year’s output. Since net domestic product is gross domestic product less depreciation, in determining net domestic product through the expenditures approach it would be appropriate to use the net investment measure that excludes depreciation, that is, net private domestic investment. 7-5Why are changes in inventories included as part of investment spending? Suppose inve ntories declined by $1 billion during 2003. How would this affect the size of gross private domestic investment and gross domestic product in 2003? Explain.Anything produced by business that has not been sold during the accounting period is something in which business has invested—even if the â€Å"investment† is involuntary, as often is the case with inventories. But all inventories in the hands of business are expected eventually to be used by business—for instance, a pile of bricks for extending a factory building—or to be sold—for instance, a can of beans on the supermarket shelf. In the hands of business both the bricks and the beans are equally assets to the business, something in which the business has invested.If inventories declined by $1 billion in 2003, $1 billion would be subtracted from both gross private domestic investment and gross domestic product. A decline in inventories indicates that goods produced in a previous year have been used up in this year’s production. If $1 billion is not subtracted as stated, then $1 billion of goods produced in a previous year would be counted as having been produced in 2003, leading to an overstatement of 2003’s production. 7-6Use the concepts of gross and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. In 1933 net private domestic investment was minus $6 billion. This means in that particular year the economy produced no capital goods at all. † Do you agree? Why or why not? Explain: â€Å"Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero. † When gross investment exceeds depreciation, net investment is positive and production capacity expands; the economy ends the year with more physical capital than it started with.When gross investment equals depreciation, net investment is zero and production ca pacity is said to be static; the economy ends the year with the same amount of physical capital. When depreciation exceeds gross investment, net investment is negative and production capacity declines; the economy ends the year with less physical capital. The first statement in wrong. Just because net investment was a minus $6 billion in 1933 does not mean the economy produced no new capital goods in that year. It simply means depreciation exceeded gross investment by $6 billion.So the economy ended the year with $6 billion less capital. The second statement is correct. If only one $20 spade is bought by a construction firm in the entire economy in a year and no other physical capital is bought, then gross investment is $20—a positive amount. This is true even if net investment is highly negative because depreciation is well above $20. If not even this $20 spade has been bought, then gross investment would have been zero. But gross investment can never be less than zero. 7-7D efine net exports.Explain how the United States’ exports and imports each affect domestic production. Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of America’s net exports? Explain how net exports might be a negative amount. Net exports are a country’s exports of goods and services less its imports of goods and services. The United States’ exports are as much a part of the nation’s production as are the expenditures of its own consumers on goods and services made in the United States.Therefore, the United States’ exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries’ GDPs. When Americans buy imports, these expenditures must be subtracted from the United States’ GDP, for these expenditures are not made on the United States’ prod uction. If American exports are $7 billion and imports are $5 billion, then American net exports are +$2 billion. If the figures are reversed, so that Americans export $5 billion and import $7 billion, then net exports are -$2 billion—a negative amount.For this to come about, Americans must either decrease their holdings of foreign currencies by $2 billion, or borrow $2 billion from foreigners—or do a bit of both. (Another option is to sell back to foreigners some of the previous American investments abroad. ) 7-8(Key Question) Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same. | | |Personal consumption expenditures |$245 | |Net foreign factor income earned |4 | |Transfer payments |12 | |Rents |14 | |Consumption of fixed capital (depreciation) |27 | |Social security contributions |20 | |Interest |13 | |Proprietors’ income |33 | |Net exports |11 | |Dividends |16 | |Compensation of employees |223 | |Indirect business taxes |18 | |Undistributed corporate profits |21 | |Personal taxes |26 | |Corporate income taxes |19 | |Corporate profits |56 | |Government purchases |72 | |Net private domestic investment 33 | |Personal saving |20 | | | | a. Using the above data, determine GDP by both the expenditure and the income approaches. Then determine NDP. b. Now determine NI: first, by making the required additions and subtractions from GDP; and second, by adding up the types of income that make up NI. c. Adjust NI (from part b) as required to obtain PI. d. Adjust PI (from part c) as required to obtain DI. (a)GDP = $388, NDP = $361 (b)NI = $339 (c)PI = $291 (d)DI = $265 7-9Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. | | | Compensation of employees |$194. 2 | |U. S. exports of goods and services |17. 8 | |Consumption of fixed capital (depreciation) |11. 8 | |Government purchases |59. 4 | |Indirect business taxes |14. | |Net private domestic investment |52. 1 | |Transfer payments |13. 9 | |U. S. imports of goods and services |16. 5 | |Personal taxes |40. 5 | |Net foreign factor income earned in U. S. |2. 2 | |Personal consumption expenditures |219. | | | | |(a) Personal consumption expenditures (C) |$219. 1 | | Government purchases (G) |59. 4 | | Gross private domestic investment (Ig) |63. 9 | | (52. 1 + 11. 8) | | | Net exports (Xn) (17. 8 – 16. 5) | 1. 3 | | Gross domestic product (GDP) |$343. | | | | |(b) Consumption of fixed capital | -11. 8 | | Net domestic product (NDP) |$331. 9 | | | | |(c) Net foreign factor income earned in U. S. |-2. 2 | | Indirect business taxes | -14. 4 | | National income (NI) |$315. 3 | -10Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? If it is impossible to summarize oranges and apples as one statistic, as the saying goes, it is surely even more impossible to add oranges and, say, computers. If the production of oranges increases by 100 percent and that of computers by 10 percent, it does not make any sense to add the 100 percent to the 10 percent, then divide by 2 to get the average and say total production has increased by 55 percent.Since oranges and computers have different values, the quantities of each commodity are multiplied by their values or prices. Adding together all the results of the price times quantity figures leads to the aggregate figure showing the total value of all the final goods and services produced in the economy. Thus, to return to oranges and computers, if the value of orange prod uction increases by 100 percent from $100 million to $200 million, while that of computers increases 10 percent from $2 billion to $2. 2 billion, we can see that total production has increased from $2. 1 billion (= $100 million + $2 billion) to $2. 4 billion (= $200 million + $2. 2 billion).This is an increase of 14. 29 percent [= ($2. 4 billion – $2. 1 billion)/$2. 1 billion)]—and not the 55 percent incorrectly derived earlier. Comparing market values over time has the disadvantage that prices change. If the market value in year 2 is 10 percent greater than in year 1, we cannot say the economy’s production has increased 10 percent. It depends on what has been happening to prices; on whether the economy has been experiencing inflation or deflation. To resolve this problem, statisticians deflate (in the case of inflation) or inflate (in the case of deflation) the value figures for the total output so that only â€Å"real† changes in production are recorded .To do this, each item is assigned a â€Å"weight† corresponding to its relative importance in the economy. Housing, for example, is given a high weight because of its importance in the average budget. A book of matches would be given a very low weight. Thus, the price of housing increasing by 5 percent has a much greater effect on the price index used to compare prices from one year to the next, than would the price of a book of matches increasing by 100 percent. 7-11(Key Question) Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 1996 the price per bucket of chicken was $16 and that 22,000 buckets were purchased.Determine the GDP price index for 1984, using 1996 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 1996? Use the two methods listed in Table 7-6 to determine real GDP for 198 4 and 1996. X/100 = $10/$16 = . 625 or 62. 5 when put in percentage or index form (. 625 x 100) [pic] or 60%(Easily calculated [pic]) Method 1:1996 = (22,000 x $16) ? 1. 0 = $352,000 1984 = (7,000 x $10) ? .625 = $112,000 Method 2:1996 = 22,000 x $16 = $352,000 1984 = 7,000 x $16 = $112,000 12. (Key Question) The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP.Indicate in each calculation whether you are inflating or deflating the nominal GDP data. | | | | | | |Nominal GDP, |Price index |Real GDP, | |Year |Billions |(1996 = 100) |Billions | | | | | | | | | | | |1960 |$527. 4 | |22. 9 | |$ ______ | |1968 |911. 5 | |26. 29 | |$ ______ | |1978 |2295. 9 | |48. 22 | |$ ______ | |1988 |4742. 5 | |80. 22 | |$ ______ | |1998 |8790. 2 | |103. 22 | |$ ______ | | | | | | Values for real GDP, top to bottom of the column: $2,376. 7 (inflating); $3,467. (inflating); $4,761. 3 (inflating); $5,911. 9 (inflating); $8,516 (deflating). 7 -13Which of the following are actually included in this year’s GDP? Explain your answer in each case. a. Interest on an AT&T bond. b. Social security payments received by a retired factory worker. c. The services of a family member in painting the family home. d. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. f. The monthly allowance a college student receives from home. g. Rent received on a two-bedroom apartment. h. The money received by Josh when he resells his current-year-model Honda automobile to Kim. i.Interest received on corporate bonds. j. A 2-hour decrease in the length of the workweek. k. The purchase of an AT&T corporate bond. l. A $2 billion increase in business inventories. m. The purchase of 100 shares of GM common stock. n. The purchase of an insurance policy. (a)Included. Income received by the bondholder for the services derived by the corporation for the loan of money. (b)Excluded. A transfer payment from taxpayers for which no service is rendered (in this year). (c)Excluded. Not a market transaction. If any payment is made, it will be within the family. (d)Included. Payment for a final service. You cannot pass on a tooth extraction! (e)Excluded.Secondhand sales are not counted; the textbook is counted only when sold for the first time. (f)Excluded. A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs. (g)Included. Payment for the final service of housing. (h)Excluded. The production of the car had already been counted at the time of the initial sale. (i)Included. The income received by the bondholders is paid by the corporations for the current use of the â€Å"money capital† (the loan). (j)Excluded. The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. (k) Excluded.A noninv estment transaction; it is merely the transfer of ownership of financial assets. (If AT&T uses the money from the sale of a new bond to carry out an investment in real physical assets that will be counted. ) (l)Included. The increase in inventories could only occur as a result of increased production. (m)Excluded. Merely the transfer of ownership of existing financial assets. (n)Included. Insurance is a final service. If bought by a household, it will be shown as consumption; if bought by a business, as investment—as a cost added to its real investment in physical capital. 7-14(Last Word) What government agency compiles the U. S. NIPA tables? In what U. S. epartment is it located? Of the several specific sources of information, name one source for each of the four components of GDP: consumption, investment, government purchases, and net exports. The Bureau of Economic Analysis (BEA) in the Department of Commerce compiles GDP statistics. The Census Bureau provides survey data for consumption, investment, and government purchases. Consumption figures also come from industry trade sources as does some investment data. The U. S. Office of Personnel Management also provides data on government spending on services. Net export figures come from the U. S. Customs Service and BEA surveys on service exports and imports.

Children in Religion Essay

Children in Religion Essay Children in Religion Essay India Jones 9:00-9:50 Children And Religion With the increasing number of families turning to secular humanism as a replacement for religion, many questions arise when concerning raising a family. Should religion be a part of every child’s upbringing? Could the views of a secular humanistic family raise morally conscious adults? With the many questions that arise from the issue of secular humanism I look at the many reasons that bring people to the conclusion that this is right for them and their families. As Katharine Ozment, author of Losing our religion in the Boston magazine states in her article, many adult begin to drift away from the religion they were bought up to practice because they feel as if they were forced to believe something that their parents believed. When growing up it becomes easy to quit the rituals, stop celebrating the holidays, and to ignore the social preferences that go along with their previous religion. Secular humanism gives those individuals who don’t fit into the major religions such as Christianity, Judaism, and Buddhism, a title. Even though the religions were created my different philosophers, with different mindsets and beliefs on how the world was created and works one thing that remains in common between them all is the morality and ethics. Secular humanist don’t believe in a afterlife, or salvation, which provide insight on what will happen to your body or soul after death when you live a fulfilling life according to your religion. It’s hard to believe that they have morals if they don’t concern themselves with how they live their lives based on the preconceptions of society. Secular Humanism doesn’t seem like a good replacement for religion for those reasons but when community service is brought into the argument it makes room for a difference of opinion. If a secular humanist spends time doing charitable work such as feeding the homeless, or keeping the community clean which shows good character, its hard to say that they lack good moral teaching. People go to church to feel uplifted, and doing community service can give one the same feeling. To say that doing so is a replacement for church service seems right. In church lessons are learned through a priest reading passages out of the sacred readings of the religion. Through community service lessons are learned through action on your part, which almost makes it more personal. The ideal way for me on how to teach a child about religion is to raise them up with a clear understanding on what their religious background is. If a child grows up without having an official position on religion then they will incorrectly learn how to morally carry themselves throughout life. The children’s peers become their teachers when the parents should be the ones to instruct morals. And example of this in Losing our religion is when at the thanksgiving table the child thanks Jesus when

Pike Place Market and Work Environment Essays

Pike Place Market and Work Environment Essays Pike Place Market and Work Environment Essay Pike Place Market and Work Environment Essay 1 . Preliminary Information: Stephen C. Lundin, Harry Paul, and John Christensen. Fish! A Proven Way to Boost Morale and Improve Results. New York: Hyperion, 2000. Print. 2. Summary: Fish! is the story of Mary Jane Ramirez, a mid-level manager who works at First Guarantee Financial in Seattle, and her efforts to transform her employees attitudes. The story starts off with Mary Jane and her family moving to Seattle due to her husbands Job relocation. Unfortunately, Mary Janes husband died unexpectedly from a blood clot in his brain, which left Mary Jane financially unsecure and forced er to accept a management position with First Guarantee. Mary Janes promotion bumped her up to the dreaded third floor, which is often referred to in the book as a toxic waste dump. The staff on the third floor is known for being bored, uninterested, unmotivated and not helpful to the clients that they serve. Five weeks passed, and Mary Janes confidence was clearly shaken and all of her energy depleted, not to mention she was reporting to senior manager, Bill, who has a reputation of being very unpleasant and rude. Bill noticed the severe lack of motivation from level 3 and put Mary Jane in charge of changing the environment nd the culture of level 3. With plenty of questions and no answers in sight, Mary Jane found herself at the infamous Pike Place Fish Market for lunch where she met Lonnie, a happy-go-lucky fishmonger, who gives her Just the advice she needs about her situation with First Guarantee. Lonnie explained to her that Pike Place used to be exactly like First Guarantee, with the lack of motivation and the feeling that their work was boring, monotonous every single day. So, how were the fishermen at Pike Place able to turn their boring fish market into one of the most famous in the world? Lonnie explained it to Mary Jane in four simple steps. The first step, and arguably most important, is to choose your attitude. Choosing your attitude sounds simple enough, but it is crucial when it comes to the work environment. The second step is to find ways to play. This makes the work environment more fun and reduces the tension. The third step is to be present. This step ensures that youre always living in the moment and not taking anything for granted. The fourth and final step is to make their day. This step focuses on the customers and making sure that their day was ade with your interactions. With these four steps, Mary Jane was able to transform her toxic waste dump to a healthy working environment. Just to be sure the company follows these steps, a plaque had been made and hung in the front entrance of the headquarters that reads: As you enter this place of work please choose to make today a great day. Your colleagues, customers, team members, and you yourself will be thankful. Find ways to play. We can be serious about our work without being serious ourselves. Stay focused in order to be present when your customers and team members most need you. And should you feel your energy lapsing, try this sure fire remedy: Find someone who needs a helping hand, a word of support, or a good ear- and make their day (Lundin). 3. Critical Analysis: Fish! tells a wonderful and believable story about a common problem with todays workforce. Many workplace tasks can be considered monotonous and boring, and you do big emphasis on health and the overall well-being of employees, there shouldnt be such a high rate of toxic waste dumps, especially when we spend a considerable amount of our time in the work place. I liked how the authors used the world famous Pike Place Fish Market as an example to demonstrate that any Job on the planet can be fun and tolerable with the right mindset. As Lonnie from the fish market said, Im spoiled for life. I dont think I could work in a typical market after experiencing this. As I mentioned, the market didnt start this way. It, too, was an energy dump for many years (Lundin). The four elements of Lonnies philosophy really could be applicable to any work environment in need of revamping. Starting with choose your attitude; it is probably the most simple yet effective strategy in the book. As it is tated in the book: there is always a choice about the way you do your work, even if there is not a choice about the work itself (Lundin). Any worker can choose their attitude that they bring to work; whether they are going to be miserable or if they are going to be happy and motivated. If you consistently choose to be in a positive mood, then odds are you will be much happier and productive in the long-run. After all, if you have to be at work, why not try and make the best out of it? The next philosophy is to play. We see this strategy come in to use for many companies today, especially Google. The general idea is that you can be serious about your work, but you can still have fun with the way you conduct your business. This shows that you are not always taking yourself so seriously, and you can understand the importance of humor even in stressful situations. If the ideology of play is incorporated in businesses, people will treat others well, workers will be more creative, the time passes more quickly, and the environment is healthier. The third philosophy is to make their day. This step is crucial when it comes to customer satisfaction. The idea is simple in heory: go out and approach customer service with the goal that you are going to make somebodys day. When you go out of your way to give your customer a memorable experience, it enhances your companys image and leaves a lasting impression. The fourth and final philosophy is to be present. This brings in an element of attention to the moment rather than zoning out of work. When you are not present while at work, more than likely time is being wasted staring at the clock, which also means you are not fully engaged with your clients or customers and diminishes the quality of your work. When you are present at work, all of those problems are solved and it makes you stand out from the rest of your coworkers. 4. Conclusion: Fish! is a must-read for any business that has signs of becoming a toxic waste dump. The book itself is short in length, and it delivers its message very clearly and effectively. The four basic philosophies discussed in the book are very simple, yet they can easily be implemented in any work environment to improve the overall atmosphere. I would recommend this book to anyone that fears their companys work environment might be in trouble.

Audit Evidence

Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one and likely more for each specific TRAO, BRAO, PDAOs Audit procedures frequently â€Å"cover† more than one audit objective! Select a sample of sales invoices and trace to the shipping document agreeing name and quantity. Preparation Question: What is an audit procedure? B. What sample size to select for a given procedure. C. Which items to select from the population. D. When to perform the procedures (timing). III. Audit Program Preparation Question: What is an audit program? IV. Persuasiveness of evidence Which audit procedures: A. Appropriateness 1. Relevance Example: Trace from sales invoices in the Sales Journal to shipping documents. B. Reliability 1. Independence of provider – 2. Effectiveness of client’s internal control structure (strong vs. weak) 3. Auditor’s direct knowledge 4. Qualifications of provider 5. Objectivity What sample size and which items: C. Sufficient 1. Likelihood of misstatements 2. Quality of internal control When to perform D. Timeliness Other factors: E. Combined effect F. Cost 2 V. Type of Evidence Preparation question: Enter key words that define each of the types of evidence listed. Type Definition Grade 1. Physical examination 2. Confirmation 3. Documentation: External Internal – good Internal – bad 4. Analytical procedures: Tailored Broad 5. Inquiries of the client 6. Recalculation 7. Reperformance 8. Observation In-class exercise: Audit Procedure 1. Examine supporting documents for cash disbursements several days before and after year-end. 2. Examine the acquisitions and cash disbursements journals for the last few days of the current period and first few days of the succeeding period, looking for large or unusual transactions. 3. Trace from the general ledger trail balance and supporting documentation to determine whether accounts payable, related parties, and other related assets and liabilities are properly included on the financial statements. 4. For liabilities that are payable in a foreign currency, determine the exchange rate and check calculations. 5. Discuss with the bookkeeper whether any amounts included on the accounts payable list are due to related parties, debit balances, or notes payable. 6. Obtain vendors’ statements from the controller and reconcile to the listing of accounts payable. 7. Obtain vendors’ statements directly from vendors and reconcile to the listing of account payable. 8. Obtain a list of accounts payable. Re-add and compare with the general ledger. Type of Evidence BRAOs 3 Example of writing/creating audit procedures: Situation: The following depicts the document flow for sales for a typical company. Customer/ Sales Order Bill of Lading Sales Invoice Sales Journal General Ledger Financial Statements General Objective TRAO – Occurrence Specific Objective Audit Procedures TRAO – Completeness See Table 7-6 (p. 187) for good â€Å"buzz† words to use when constructing an audit procedure.

Acquiring Effective Writing Skills Essay Example | Topics and Well Written Essays - 500 words - 11

Acquiring Effective Writing Skills - Essay Example Structuring thoughts in a logical manner was another serious obstacle for me. Despite the fact that my first essays seemed bright and saturated with ideas, the form itself was messy, and it was impossible to capture the logic of the narration. However, with the help of this class, I have learned to stick to the traditional model of essay composition and realized that structure is like a skeleton of the text so it needs to be exceptionally strong. Among the valuable things I have understood during the whole course was that self-organization does matter. Creating texts is the process which is impossible to predict. Sometimes it takes hours to find relevant sources, sometimes bright arguments appear out of nowhere. Procrastination and inability to focus on the thesis of text makes it â€Å"empty† and turns the whole process of writing into a burden. In order to keep the track of the thought, I have learned to reread constantly what was written and fix it in the process, not after finalization. I realized how important editing is because it often seems that the essay is immaculate but reading it two or three times allows seeing it from another perspective. I have understood that I imagined writing in a completely different way before as for me it was a process totally dependent on inspiration. If the Muse has visited you - there is a chance of writing a brilliant text. It turned out that only in the process of analysis of arguments, structuring, and correcting your own thoughts it is possible to get any inspiration.

Different Products and Factors which Affect their Demand and Supply Assignment

Different Products and Factors which Affect their Demand and Supply - Assignment Example Similarly, any decrease in the price of a commodity will increase its quantity demanded that will result in an extension of demand i.e. movement along the same curve towards a higher level of quantity demanded. Any other factors other than price which affects the demand for a product will result into a change in its demand at every level; hence the whole demand curve will shift from its original position and will operate on a new demand curve formed on the basis and magnitude of the change. Some factors which affect the demand for a product are changes in the income level of a person, changes in the distribution of income, advertising, and marketing of the product, consumer’s taste, fashion or trend, credit facilities associated with the product, the price of substitute goods and complementary goods etc. Any changes are population are also considered to be a factor which influences the demand, however, it is considered to be a long-term factor, any changes in a population usua lly occur over a large period of time. The market for convenience foods is expanding rapidly even though there are various programs and efforts directed to inform the people about its adverse effects on human health. Some people believe that it contains a lesser amount of nutrients and a higher amount of fats, preservatives, taste enhancers etc. Despite the concerns associated with it, the demand for convenience food is on the rise as the quality or taste of the food and female employment has increased. More people are attracted towards these nearly ready-to-eat meals as they feel it saves time and is more convenient than usual cooking. The market for convenience foods is expected to expand further which means there will be further increases in its demand, this could be due to different factors such as a change in taste, fashion, lower price, higher quality etc. The price of good always plays an important role in determining what quantity will be demanded by the consumers. The price of convenience foods is expected to decrease as newer and efficient factors and methods of production are been used.

U.S - European Ties with Obama as President Essay

U.S - European Ties with Obama as President - Essay Example â€Å"The election of Barack Obama as the 44th President of the United States opened a new chapter in transatlantic relations, transforming European assessment of the American president, U.S. standing in Europe, attitudes toward U.S. global leadership, and perceptions on both sides of the Atlantic of the U.S.-EU relationship† (Transatlantic Trends Key Findings, p.6). It is a fact that Obama enjoys heavy support from the European countries compared to his predecessor. Obama’s handling of international affairs has already attracted many Europeans. The handling of Afghan crisis, economic crisis and climate change has helped Obama to acquire support even from the traditional anti- American publics in Turkey and Central and Eastern Europe. On the other hand, Western Europe is almost unique in supporting Obama’s policies. In fact Obama enjoys more support from the European publics than from the Americans at present. In America at least the Republicans are strongly oppo sing Obama’s economic and foreign policies whereas in Europe, irrespective of the political difference, Obama enjoys strong support at present. The recently concluded G20 summit and the winning of Nobel Prize for peace have helped Obama to polish his face among the Europeans. â€Å"People in the European Union and Turkey have fallen under the Obama spell..In 2008, their assessment of Bush was 18 percentage points lower than Bush’s approval in the United States. In 2009, the situation was reversed. Their positive judgment of Obama (77%) was 20 percentage points higher than in the United States (57%)† (Transatlantic Trends Key Findings, p.6). The leadership of America in global matters is more acceptable to the Europeans at present compared to the Bush regime. But it is a fact that the former socialist countries like Bulgaria, Slovaks, etc are still keeping reservations about the American leadership in global matters. Europeans are more

Setting up high performance teams Essay Example | Topics and Well Written Essays - 2000 words

Setting up high performance teams - Essay Example These factors underline the basis of the teams performing a singular whole than disjointed units within the framework of the organization or the group that they are working under. Constituting a team is an important measure since it explains the manner in which the team members would carry out their processes and activities in order to reach the ultimate objective – the goal which is in sight. Also the presence of a leader within the ranks is also significant since he is the one who ensures that commitment and devotion is laid towards the activities of the whole team and that the team members are dedicated to the cause of serving the objectives of the team. A leader would guarantee that the team members remain on their toes and are up and ready in order to outperform each other so that the end result is one which will make the team stand out as a whole. The objectives of the team are more quintessential than the individual members and this is one aspect that the leader brings with him whilst formulating a high performance team. (Opie, 2000) People selection and recruitment stands as a very essential step of the formulation of teams since right kind of people must be geared up to the task and it is a must to check the kind of motivation that these team members have at the very moment and whether or not the same would remain like that within the future. Thus these factors are deemed as very important whilst getting the people under an umbrella which would actually see that the teams would get the right kind of members within their hold and this is important since it will decide how the team would actually perform within the future and in the long run. One must understand that team members are committed to the task and remain in line with the strategies and tactics deployed by the team leaders so that the team is a high performing one, both in difficult circumstances and in times of ease as well. This eventually

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

Local Business Lawsuit - Essay Example Summary of Lawsuit Goodyear Time & Rubber Company, operating a plant in Danville, Virginia was sued by the US Department of Labor for alleged discrimination in hiring personnel during the latter part of the 1990s (Lindsey, 2006). The alleged discrimination was directed against hundreds of female applicants. As a result of such denial, the lawsuit was filed against the company (with headquarters in Akron, Ohio). The lawsuit asked the court to hire the discriminated women, pay for back wages, and provide other benefits due to workers (Lindsey, 2006). According to the Labor Department, the company implemented a procedure in the hiring and selection of employees from January 1998 to June 1999 that is gender-discriminatory against female applicants at the entry level (Lindsey, 2006). The case stemmed from the routine procedural review conducted by the department’s Federal Contract Compliance Programs in Richmond that showed such discriminatory hiring. The company, on the other hand , strongly denied such allegation. Goodyear, as a federal contractor, is not allowed to discriminate in hiring based on race, religion, color, sex and ethnicity (Lindsey, 2006). The Philadelphia labor office acting Regional Director Patsy Blackshear said that companies contracting with the federal government must ensure that equal opportunity program is being implemented at the highest level, and that includes discrimination in the hiring process. The complaint was lodged at the Office of Administrative Law Judges in Washington, D.C., the trial court of the Labor Department. Risk Management Risk management refers to the identification of the different kinds of risks that affect an organization that could have an impact upon the business (What is Business Risk, n.d.). After identifying the risks, probability of its occurrence must be determined. Then, a plan should be devised, and lastly, to monitor the effectiveness of the plan (What is Business Risk, n.d.). The risks that a busines s may have include physical and environmental risks, financial risks, employee risks (What is Business Risk, n.d.), and several others depending on the nature of the business. In the present case, the risk present involves the internal policy of the organization. By ignoring the equality laws mandated by the government, Goodyear presents itself as vulnerable to litigation risks that may come from the Labor Department or the persons discriminated upon. As a mitigation action that Goodyear could do, it should ensure that men and women are equally represented in its workforce, no matter where they are located in the US. During the period reviewed by the department, discrimination against women was seen since hundreds of them were not hired in one year while men were continuously absorbed into the labor force. Thus, the Human Resources Department of Goodyear should implement a hiring policy that would make sure that men and women are more or less equally hired within a specific period. Ethical Considerations The hiring process may be influenced by discrimination on the part of management if not guarded against. Thus, the management must establish a detailed hiring policy that takes into account the civil rights protected by the laws. Ethical considerations refer to doing what is deemed to be right and proper as dictated by society, the code of ethics of organizations, or the best practices. Therefore, doing something against the identified good practices would be unethical for the organization. The laws applicable in