Margaret Atwood s The Handmaid Tale Essay - 1166 Words

It is necessary for the government to impose a certain amount of power and control of its citizens in order for a society to function properly. However, too much power and control in a society eliminates the freedom of the residents, forbidding them to live an ordinary life. In the dystopian futuristic novel, The Handmaids Tale, Margaret Atwood demonstrates the theme of power and control through an oppressive society called the Republic of Gilead. The government established power and control through the use of the wall, military control, the salvaging, the particicution, and gender. The dead bodies of those who have committed acts against the government hang on a structure called the Wall. The Wall is a method to implement fear on the citizens. Offred describes the purpose of the wall when she states, â€Å"We stop, together as of on signal and stand to loook at the bodies. It doesn’t matter if we look. Were supposed to look: this is what they are there for, hanging on the wall. Sometimes they’ll be there for days, until there’s a new batch, so as many people as possible will have a chance to see them† (Atwood 40). The wall is a symbol of sin and it creates fear and force in the Republic of Gilead. It is a warning to the citizens of the punishment for disobeying the rules. The people that hang on the Wall â€Å"have committed atrocities and must be made into examples, for the rest† (Atwood 42). Therefore, when the citizens see the punishment for violating the government’s rules, theyShow MoreRelatedThe Handmaid s Tale By Margaret Atwood1357 Words   |  6 PagesOxford definition: â€Å"the advocacy of women s rights on the ground of the equality of the sexes† (Oxford dictionary). In the novel The Handmaid’s Tale, Margaret Atwood explores feminism through the themes of women’s bodies as political tools, the dynamics of rape culture and the society of complacency. Margaret Atwood was born in 1939, at the beginning of WWII, growing up in a time of fear. In the autumn of 1984, when she began writing The Handmaid’s Tale, she was living in West Berlin. The BerlinRead MoreThe Handmaid s Tale By Margaret Atwood1249 Words   |  5 PagesDystopian Research Essay: The Handmaid’s Tale by Margaret Atwood In the words of Erika Gottlieb With control of the past comes domination of the future. A dystopia reflects and discusses major tendencies in contemporary society. The Handmaid s Tale is a dystopian novel written by Margaret Atwood in 1985. The novel follows its protagonist Offred as she lives in a society focused on physical and spiritual oppression of the female identity. Within The Handmaid s Tale it is evident that through the explorationRead MoreThe Handmaid s Tale By Margaret Atwood1060 Words   |  5 Pagesideologies that select groups of people are to be subjugated. The Handmaid’s Tale by Margaret Atwood plays on this idea dramatically: the novel describes the oppression of women in a totalitarian theocracy. Stripped of rights, fertile women become sex objects for the politically elite. These women, called the Handmaids, are forced to cover themselves and exist for the sole purpose of providing children. The Handmaid’s Tale highlights the issue of sexism while also providing a cruel insight into theRead MoreThe Handmaid s Tale By Margaret Atwood1659 Words   |  7 Pagesbook The Handmaid s Tale by Margaret Atwood, the foremost theme is identity, due to the fact that the city where the entire novel takes place in, the city known as the Republic of Gilead, often shortened to Gilead, strips fertile women of their identities. Gilead is a society that demands the women who are able to have offspring be stripped of all the identity and rights. By demeaning these women, they no longer view themselves as an individual, but rather as a group- the group of Handmaids. It isRead MoreThe Handmaid s Tale By Margaret Atwood1237 Words   |  5 Pages The display of a dystopian society is distinctively shown in The Handmaid’s Tale, by Margaret Atwood. Featuring the Republic of Gilead, women are categorized by their differing statuses and readers get an insight into this twisted society through the lenses of the narrator; Offred. Categorized as a handmaid, Offred’s sole purpose in living is to simply and continuously play the role of a child-bearing vessel. That being the case, there is a persistent notion that is relatively brought up by thoseRead MoreThe Handmaid s Tale By Margaret Atwood1548 Words   |  7 PagesIn Margaret Atwood’s The Handmaid’s Tale, The theme of gender, sexuality, and desire reigns throughout the novel as it follows the life of Offred and other characters. Attwood begins the novel with Offred, a first person narrator who feels as if she is misplaced when she is describing her sleeping scenery at the decaying school gymnasium. The narrator, Offred, explains how for her job she is assigned to a married Commander’s house where she is obligated to have sex with him on a daily basis, so thatRead MoreThe Handmaid s Tale, By Margaret Atwood1629 Words   |  7 Pages Atwood s novel, The Handmaid s Tale depicts a not too futuristic society of Gilead, a society that overthrows the U.S. Government and institutes a totalitarian regime that seems to persecute women specifically. Told from the main character s point of view, Offred, explains the Gilead regime and its patriarchal views on some women, known as the handmaids, to a purely procreational function. The story is set the present tense in Gilead but frequently shifts to flashbacks in her time at the RedRead MoreThe Handmaid s Tale By Margaret Atwood1256 Words   |  6 Pageshappened to Jews in Germany, slaves during Christopher Columbus’s days, slaves in the early 1900s in America, etc. When people systematically oppress one another, it leads to internal oppression of the oppressed. This is evident in Margaret Atwood’s book, The Handmaid’s Tale. This dystopian fiction book is about a young girl, Offred, who lives in Gilead, a dystopian society. Radical feminists complained about their old lifestyles, so in Gilead laws and rules are much different. For example, men cannotRead MoreThe Handmaid s Tale By Margaret Atwood1540 Words   |  7 Pages Name: Nicole. Zeng Assignment: Summative written essay Date:11 May, 2015. Teacher: Dr. Strong. Handmaid’s Tale The literary masterpiece The Handmaid’s Tale by Margaret Atwood, is a story not unlike a cold fire; hope peeking through the miserable and meaningless world in which the protagonist gets trapped. The society depicts the discrimination towards femininity, blaming women for their low birth rate and taking away the right from the females to be educated ,forbidding them from readingRead MoreThe Handmaid s Tale By Margaret Atwood1667 Words   |  7 Pagesrhetorical devices and figurative language, that he or she is using. The Handmaid’s Tale, which is written by Margaret Atwood, is the novel that the author uses several different devices and techniques to convey her attitude and her points of view by running the story with a narrator Offred, whose social status in the Republic of Gilead is Handmaid and who is belongings of the Commander. Atwood creates her novel The Handmaid’s Tale to be more powerful tones by using imagery to make a visibleness, hyperbole

The Ethics of Euthanasia Essay - 1742 Words

A teacher I once had in high school would often talk about her father who lived in hospice care. Her father suffered from dementia and had been for years. She would often talk about how on his â€Å"good† days he would plead her husband to put a pillow on his head and suffocate him, to take him out of his misery. If it was legal, her husband would have willingly helped her father and put him out of his misery, however in the state of North Carolina, physician-assisted suicide is illegal. Luckily, her father passed away this year and is finally free of pain and suffering. However, if physician-assisted suicide was legal, her father would not have had to suffer as long as he did. Before we explore the sides of physician-assisted suicide,†¦show more content†¦Though these methods do end life, they are uncomfortable, painful, and do not allow the patient to end their life with dignity. Through the legalization of physician-assisted suicide, many individuals who have endured years of suffering will finally be allowed to end their life with dignity. In the United States today, there is a considerable amount of debate of whether or not physician-assisted suicide should be legalized. Many oppose physician-assisted suicide because they view it to be morally and ethically wrong. Similarly, many support the legalization of physician-assisted suicide because they believe human beings have the right to determine when and how they die. Personally, I believe human beings have the right to determine when they die and that the government should not keep individuals who are in extreme pain and only have a few months to live from ending their life with dignity. Through this paper, I am going to explore the many sides of physician-assisted suicide. As I stated earlier, many oppose physician-assisted suicide for many different moral and ethical reasons. Many people all around the world are against the legalization of physician-assisted suicide because acc ording to Nargus Ebrahimi’s article â€Å"The Ethics of Euthanasia,†Show MoreRelatedThe Philosophical Theories Of Euthanasia And Ethics1464 Words   |  6 PagesEuthanasia and Ethics The philosophical theories and ethics of two philosophers, Aristotle and Kant, offer two differing views on the morality of euthanasia. Margaret P. Battin’s â€Å"Euthanasia: The Way We Do It, the Way They Do It† offers three countries’ perspectives on and laws regarding euthanasia and/or physician assisted suicide, as well as evaluations and critiques of their policies. To determine which of these points of view has the most pertinence, all of these arguments will be outlinedRead MoreEthics of Euthanasia Essay1475 Words   |  6 Pagesto depend on someone for everything suddenly brings feelings of helplessness much like an infant feels. It is easy to see why some patients with terminal illnesses would seek any type of relief from this hardship, even if that relief is suicide. Euthanasia or assisted suicide is where a physician would give a patient an aid in dying. â€Å"Assisted suicide is a controversial medical and ethical issue based on the question of wh ether, in certain situations, Medical practioners should be allowed to helpRead MoreThe Ethics Of Non Voluntary Active Euthanasia1050 Words   |  5 PagesThe idea of non-voluntary active euthanasia is not such a disaster, as euthanasia itself. The problem that comes into consideration is when and why it should be used. When euthanasia is non-voluntary and active, such as on a patient with dementia, the ethical decision comes into play if there are episodes of clarity and the patient has or has not mentioned what they want to do at the end of life situations. Principles of deontology suggest duty and obligation. A medical professional in such situationsRead MoreEssay Moral and Ethics: Euthanasia and Physician-Assisted Suicide 1776 Words   |  8 PagesEuthanasia and physician-assisted suicide are actions that hit at the core of what it means to be human - the moral and ethical actions that make us who we are, or who we ought to be. Euthanasia, a subject that is so well known in t he twenty-first century, is subject to many discussions about ethical permissibility which date back to as far as ancient Greece and Rome , where euthanasia was practiced rather frequently. It was not until the Hippocratic School removed it from medical practice. EuthanasiaRead More Euthanasia as One of Todays Most Prevalent Ethics Issues Essay2759 Words   |  12 PagesEuthanasia as One of Todays Most Prevalent Ethics Issues   Ã‚  Ã‚  Ã‚  Ã‚  Euthanasia can be considered one of the most prevalent problems when dealing with the ethics of patient treatment. Should people have the right to end their own lives when prolonging it will only cause them more pain? Should families who love someone so much, that they don’t want to lose them, cause them more pain by keeping them alive. What makes that more ethically correct then letting them die? The more you look into this issueRead MoreEuthanasia Essay : Euthanasia And Euthanasia863 Words   |  4 PagesThis is why Euthanasia is important and summarizing the research that I found on Euthanasia. Euthanasia is important because there is a lot of arguments about Euthanasia. Some people support it and some people do not support Euthanasia (Euthanasia and assisted suicide- Arguments). Euthanasia allows people to be free from physical pain. It is the hastening of death of a patient to prevent further sufferings (Euthanasia Revisited). The religious argument states God chooses when human life ends. EuthanasiaRead MoreEuthanasi Death And Dignity Act1674 Words   |  7 PagesDeath and Dignity Act. Through our presentation, the group discussed if Euthanasia was morally and ethically right through the eyes of Thresa Christensen. Thresa Christensen was a character from the case study in which her father decided act upon voluntary active euthanasia. As group, we thought it would be best if is Theresa Christensen spoke on from the behalf of herself as a person who supports voluntary active euthanasia. The case study project has taught me a variety of skills to understandRead MoreEuthanasia Essays : Euthanasia And Euthanasia1432 Words   |  6 PagesDoes euthanasia assists patients to die with dignity? From fresh to dying, is the humanity multiplies the development natural law. Along with medicine progress and life enhancement, the people besides pay attention to eugenics, simultaneous starts to pay attention to the euthanasia. Since this century 50 ages, regarding euthanasia, many countries’ medical arenas, educational world, and ethical groups have been arguing about the euthanasia argument for many years, although many person of ideas haveRead MoreArgumentative Essay On Euthanasia1302 Words   |  6 Pagesbehind Euthanasia In an ethics class I took in high school, I have learned about many controversial topics. One that caught my attention specifically was euthanasia or the â€Å"right to die† as some call it. There are many types of Euthanasia, including active and passive. In class we debated the difference between the two and why passive euthanasia is legal and active is not. Active euthanasia is defined as â€Å"a person directly and deliberately causing the patient s death.† (Forms of euthanasia) PassiveRead MoreEuthanasia: Murder or Mercy? Essay1665 Words   |  7 Pagesa way as to reach an impasse amongst two opposing parties. Euthanasia happens to be a topic that has been debated extensively for the larger part of the twenty-first century (Larue). Even the definition of euthanasia evokes mixed emotions: the act or practice of killing or permitting the death of hopelessly sick or injured individuals in a relatively painless way for reasons of mercy (Merriam-Webster). The struggle over whether euthanasia should be accepted as a common practice is majorly stimulated

Managing Financial Resources and Decisions Free Essays

string(103) " capital from investors setting out the terms of loans, backed by its reputation but not collateral12\." Executive summary This report is to propose an appropriate capital structure for Xpresso Delight Limted’s business expansion with the minimum amount of capital as US$ 30 million. In order to achieve that goal, firstly, it is going to identify the sources of finance available for the business as debt financing which include loans, debentures and bonds; and equity financing, which includes common shares, preference shares and retained profit. It is also to discuss advantages disadvantages of each source, as well as to assess the implications of these different sources related to risk, legal, financial and dilution of control and bankruptcy. We will write a custom essay sample on Managing Financial Resources and Decisions or any similar topic only for you Order Now Based on those analyses, it is to select the appropriate sources of finance for the project including retained profit, common and preference shares and loans. What’s more, the costs involved with each source will be assessed and compared in order to form the best alternative of capital structure. There are three options of capital structure proposed: †¢ 50% debt financing; and 50% equity including 80% common share and 20% preference shares †¢ 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares †¢ 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares Besides, this report is also to mention and explain the importance of financial planning for Xpresso Limited. CONTENTS Page 1. Cover Sheet †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 1 2. Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 3. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. 7 4. Main Body†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 8 4. 1 Available various sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 4. 1. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 4. 1. 1. 1. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦8 4. 1. 1. 2. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦8 4. 1. 1. 3. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 1. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. †¦Ã¢â‚¬ ¦. 9 4. 1. 2. 1. Issued share capital†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 4. 1. 2. 2. Retained profit other reserves†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 4. 2. Assessment of the implications of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 4. 2. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. 10 4. 2. 1. 1. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 4. 2. 1. 2. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 4. 2. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦.. 12 4. 2. 2. 1. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 4. 2. 2. 1. 1. Common shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 4. 2. 2. 1. 2. Preference shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 13 4. 2. 2. 2. Retained profit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦13 4. 3. Selection of appropriate sources The assessment and comparison for costs†¦. 4 4. 3. 1. Appropriate sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦14 4. 3. 2. Costs of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 1. Retained profit†¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 4. 3. 2. 2. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 3. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. Options of capital structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 4. 3. 3. 1. First structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. 2. Second structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 4. 3. 3. 3. Third structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 4. 4. The financial planning †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 1. Definition†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 2. Importance for Xpresso Limited†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 4. 4. 3. Shortage surplus of capital: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 5. Conclusion . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 6. Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 7. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦21 3. INTRODUCTION: Xpresso Delight Limited is a publicly listed company in Australia Stock Exchange with the headquarter is based in Hanoi, Vietnam. Xpresso Delight Limited is majority owned (51% stake) by Chief Executive Officer (CEO), Mr. Nguyen Dong Khoa. The company has 30 cafes concentrated mainly in big cities in Vietnam like Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho and so on. With many advantages such as the growing affluence of coffee culture, the increasing expatriates population in Vietnam, and even the government’s pro-business policies; Xpresso limited believes that there is an immense market potential in the emerging Vietnam, which encourages it to embark on an ambitious plan of expanding, opening at least 20 cafes each year for the next five years in the various parts of the country. The company issues two kinds of share including ordinary shares (par value US$ 1 per share), which are currently traded at US$ 2. 50 per share; and preference shares, which are currently traded at US$ 52 per share in Australia Stock Exchange. Its corporate tax rate is 25% at present but is expected to go down. With strong earnings growth projected at a constant 15% per annum in the future, Xpresso Delight Limited is expected to pay out US$ 0. 30 per share as ordinary dividend in the next financial year while a constant preference dividend is US$ 5 per share per year. The average flotation cost for the new issue of ordinary shares and preference shares are 17% and 10% of the gross proceeds respectively. For new issue of ordinary shares and preference shares, Xpresso Delight Limited’s issue price will be set at their respective current market price as traded in the Australia Stock Exchange. Xpresso Delight Limited’s before-tax cost of debt is 15%. 4. MAIN BODY: 1. Available various sources of finance: In the case of Xpresso Limited, as a large company with stable profit growth looking for capital to expand, it is only necessary for long-term financing to be taken into account. Therefore, there are two principal sources of finance available to Xpresso Limited including debt and equity financing. 4. 1. 1. Debt financing: In regards to debt financing, the simplest meaning is borrowing money on credit with a promise to repay the amount borrowed, plus interest18. There are many types of debt financing, including borrowing from banks in terms of loans; or borrowing from investors in terms of debentures, bonds 4. 4. 1. 1. 1. Loans: A loan is a financial transaction in which one party – the lender – agrees to give another party – the borrower an amount of money which must be paid back in full16. With a good finance profile and the support of Vietnam government pro-business policies, it is easier for Xpresso Limited to borrow from commercial banks such as Vietcombank, VietinBank and so on. For example, the supportive interest rate of loans in Vietnam at present is fluctuating between 5 and 6 percent per year14, therefore if Xpresso Limited. borrows US$ 10,000, the interest it has to pay back will be between US$ 500 and US$ 600. 4. 1. 1. 2. Debentures: It is a channel for Xpresso to mobilize capital from investors setting out the terms of loans, backed by its reputation but not collateral12. You read "Managing Financial Resources and Decisions" in category "Essay examples" Investors can be individuals, Vietnam and foreign financial institutions such as VinaCapital, BankInvest and so on; and even Vietnam commercial banks are the main investors in organizational debentures. Because of its high standing in the market, investors and other creditors are willing to purchase once Xpresso Limited issues debentures. As in the Vietnam present market , the common interest rate of debentures issued by enterprises is 12. 5 percent per year11, if Xpresso issues debentures of US$ 10 million for 5 years, it has to pay investors the total interest of US$ 6. 5 million. 4. 1. 1. 3. Bonds: Bonds are large debts which are usually paid off over a period of 10 to 35 years1. Simply explaining, in bond financing, Xpresso mobilizes capital from investors instead of banks by selling bonds to them with a promise to pay back with interest, according to specified schedules8. As an example, if Xpresso issues bonds at an interest rate of 6%, the interest over 20 years would be about US$ 0. 73 for each dollar borrowed. 4. 1. 2. Equity financing: In terms of equity financing, equity capital generally is composed of funds that are raised by Xpresso in exchange for an ownership interest in the company17. Since it is owner’s equity, the company does not have to worry about any liability to repay interest or loans for other parties. There are two major sources of equity financing including issued share capital and retained profit other reserves12. 4. 1. 2. 1. Issued share capital: Issued share capital is capital that is subscribed by shareholders when they purchase shares Xpresso Limited issues, including common and preference shares4. Common shares are shares issued to the general public in the stock market, while preference shares are shares issued to some special people (for example, banks or specific institutions)2. 4. 1. 2. 2. Retained profit other reserves: Retained profit is simply profit that has been kept within Xpresso Limited rather than paid out to shareholders as dividends 2. 2. Assessment of the implications of sources of finance to Xpresso Delight Limited related to risk, legal, financial and dilution of control and bankruptcy: 4. 2. 1. Debt financing: As being categorized in debt financing, those various types including loans, debentures and bonds have some implications to Xpresso in similarity, which are going to be discussed below. There are many advantages of Xpresso Limited for using debt financing. There is no dilution of control since the creditors have no authority in running the company but just involve in the money they invest; and they usually do not participate in the superior earnings of the company either as the cost of debts is limited 13. The most important advantage is tax relief on interest as it is considered one kind of expenses3. For example, if Xpresso Limited borrows US$ 10,000 at the interest rate of 5%, it will have to pay the interest of US$ 500 but will be reduced US$ 500 in the tax-incurred income. What’s more, in time of inflation, debts may be paid back with â€Å"cheaper pesos†13 since the money becomes worth less. To the existing shareholders, one advantage is when Xpresso Limited unfortunately goes broke, they may lose their investment but other personal possessions are safe 2. However, using debt financing also has disadvantages. Obviously, debts add risk to the company12. There is a risk of not having enough money to pay by the maturity date or if the earnings of Xpresso Limited fluctuate 12; either of which easily makes the company become bankruptcy. To add more, the legal of debt financing in Vietnam is relatively complicated 2, and certain managerial prerogatives are usually given up in the bond’s indenture contract (for example, specific ratios must be kept above a certain level during the term of the loan)13. Besides, debentures and bonds also have their own characteristics. 4. 2. 1. 1. Debentures: One advantage of using debenture financing is that Xpresso Limited does not have to give collateral9. However, it also has disadvantages as it must compete with government loan stocks (gilts), what are the dominant type of debentures in Vietnam market, so the company must generally offer a higher rate of interest than the one on gilts to attract investors4. The legal issue of debentures that Xpresso Limited has to concern is that if a bond defaults, investors are entitled to the liquidation proceeds of property bought with the money they invest (by purchasing debentures)5. . 2. 1. 2. Bonds: Bonds have fixed interest and are issued for long-term1. One advantage of using bond is that substantial flexibility in the financial structure is enhanced by debt through the inclusion of call provisions in the bond indenture13. In case of financial distress, bondholders have greater claims of the issuer’s income than shareholders6. 4. 2. 2. Equity financing: 4. 2. 2. 1. Issued shares: The legal aspect involved is that shareholders are also owners of the company4. Therefore, the business ownership is diluted and it is possible to lose the control of the business for investors. However, there is also an advantage that there is large potential membership to provide capital and to share risks of loss, bankruptcy and so on. There is a part of profit of the company distributed to shareholders as dividends. One significant advantage of using issued share capital is that Xpresso may withhold the dividend if profits are insufficient. One disadvantage is that cash dividends are not tax deductible. 13) Besides, each type of shares also has its own characteristics. 4. 2. 2. 1. 1. Common shares: The advantages of using common shares are that common dividend is based on profits when so that Xpresso Limited is free from worrying about not having enough money to pay; there is no fixed maturity date for repayment of the capital; and the sale of common shares is frequently more attractive to investors than debts as its value grows with the success of the firm1 1. However, there are disadvantages as well. Shareholders ave right to vote, therefore the shareholders’ control and share in earnings are usually diluted13. If Xpresso decides to issue common shares, the stake of CEO (51% at present) will be reduced as the number of shares increases. In terms of finance, issuance of common shares requires higher underwriting costs; and the average cost of capital may increase above the optimal level when too much equity is issued13. 4. 2. 2. 1. 2. Preference shares: Legally, like common share, preference shares represent a part of ownership or equity of Xpresso Limited4. What’s more, in case of financial distress, claims of preference shareholders must be satisfied before common shareholders receive anything13. There is no default risk since non-payment of dividends does not necessarily mean bankruptcy. Preference dividend is fixed so that the company can plan to pay. Preference shareholders have no voting rights except in case of financial distress, which means there is no dilution of control. Call features and provision of sinking may be included so Xpresso may replace the issue if interest rates decline. There is one disadvantage that preference shares involve cumulative feature, which means in case Xpresso Limited does not have money to pay dividends in a particular year, the dividend keeps getting added to the next years’ dividend until the it is able to pay. (13) 4. 2. 2. 2. Retained profit: There are advantages to using retained profit as a form of finance due to the absence of brokerage costs (for example, merchant banks’ fees), its simplicity and flexibility, and all gains from investment will still ultimately belong to existing shareholders13. Besides, there are disadvantages as shareholders’ expectation of dividends may present a problem or insufficient earnings may be available4. 4. 3. Selection of appropriate sources of finance for a business project assessment and comparison for various cost involved for each sources: 4. 3. 1. Appropriate sources of finance: As discussed above, it is proposed that Xpresso Delight Limited should use equity financing in forms of retained profit, issued share capital and debt financing in forms of loans in the capital structure. The main source that should be included is retained earning since it is the solidest source and has the least risk to the firm3. Issued shares and loans are the next choices as they bring many opportunities and a relatively reasonable number of risks as well as liabilities. 4. 3. 2. Costs of sources: 4. 3. 2. 1. Retained profit: Costs of retained earnings include fixed expenses such as wages, rent, materials, electricity and so on; tax cost; dividends (dividends are a cost of retained earnings as well as a cost of share capital); certain costs if invested in the short term as not needed immediately; and also opportunity costs4. . 3. 2. 2. Issued shares: Costs of the issued share capital include flotation costs, dividends (cash dividend and scrip dividends- dividends in the form of new shares); cost of providing shareholders or owners with information about the performance of the business such as the cost of glossy financial reports, Annual General Meetings, audit fees and the adminis trative costs of company with legal and Stock Exchange requirements for disclosure of information to shareholders; and also certain costs associated with investing them if not needed immediately4. 4. 3. 2. 3. Loans: Loans have interest as the main cost. The rate of interest may either be fixed or variable but in the case of Xpresso Limited it is fixed. There are also other costs including an initial arrangement fee to cover lender’s administrative costs on setting up the loan (checking references, setting up data on a computer system and so on); factors charge commission for advancing funds; non-financial costs involved in the relationship between the company and creditors (for example, Xpresso will be required to provide the creditor with regular information about the performance of the business)4. That kind of non-financial cost may create the uncomfortable feeling of being watched for the owner. Opportunity cost is also included in this case as well. For instance, instead of paying interest of US$ 10,000 a year the business could do something else with that US$ 10,000 that might help generate income. 4. 3. 3. Options of capital structure: There are three alternative capital structures that could be taken into account. Based on the comparison between their advantages and disadvantages, the most appropriate structure would be chosen. . 3. 3. 1. First structure: For the first structure, it is to use 50% debt financing; and 50% equity including 80% common share and 20% preference shares. That means US$ 15 million of debts, and US$ 15 million of equity including US$ 12 million of common shares and US$ 3 million of preference shares. The costs of sources are: Rf = US$ 0. 167 million Rc = US$ 1. 84 million Rd = US$ 1. 69 million The total cost is: 0. 167 + 1. 84 + 1. 69 = 3. 697 (US $ million) 4. 3. 3. 2. Second structure: The second structure is to use 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares. That means US$ 7. 5 million of debts, US$ 22. 5 million of equity including US$ 18 million of common shares and US$ 4. 5 million of preference shares. The costs of sources are: Rf = US$ 0. 25 million Rc = US$ 2. 81 million Rd = US$ 0. 84 million The total cost is: 0. 25 + 2. 81 + 0. 84 = 3. 9 (US$ million) 4. 3. 3. 3. Third structure: The third structure includes 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares. That means US$ 3 million of debts, and US$ 27 million of equity including US$ 21. 6 million of common shares and US$ 5. 4 million of preference shares. The costs of sources are: Rf = US$ 0. 3 million Rc= US$ 3. 32 million Rd = US$ 0. 34 million The total cost is: 0. 3 + 3. 32 + 0. 34 = 3. 96 (US$ million) As comparing the costs and the advantages disadvantages of the three structures, it is to be said that the second structure is the best capital structure to apply for Xpresso Limited. Because although it does not has the lowest cost, the proportions of sources of finance included are the most appropriate option as the percentage of debts used (25%) is not too high for adding risks to the company but also ensures for the financial leverage (the tax relief) to be used. In addition, the cost of finance in this structure is still relatively low. 4. 4. The financial planning: 4. 4. 1. Definition: In general, financial planning is the process of developing strategies to help you manage your financial affairs so you can build wealth, enjoy life and achieve financial security5. . 4. 2. Importance for Xpresso Limited: Financial planning involves achieving a balance between the requirements to minimize the risk of not having cash to pay creditors and the requirements to maximize the earnings made by using assets4. It plays a very important role in helping Xpresso co-ordinate and organize the internal system, set up detailed plans for using resources, as well as for paying d ebts and liabilities, develop strategies, and finally prepare for any potential incidents in the future7. For Xpresso, every transaction has to be well-planned to run the business efficiently. . 4. 3. Shortage surplus of capital: Capital surplus- the amounts of directly contributed equity capital in excess of the par value13 – has a large impact on Xpresso Limited as it can be used to distribute as bonus dividends to shareholders, to reinvest as owner’s equity and it also helps to reduce the cost of capital mobilizing9. It helps gain more prestige for Xpresso but also gives more pressure on the management as they have a duty to use it effectively. Capital is one factor of production, therefore its shortage makes difficulties for Xpresso to operate and develop efficiently4. Even it can lead to bankruptcy if capital shortage is too large. 5. CONCLUSION: It can be said that each and every source of finance has both advantages and disadvantages. The aim is to make use of the advantages and also to avoid the disadvantages of all sources. The best capital structure is to combine the appropriate sources to make the best use for the company. To conclude, the capital structure proposed is to use 25% debt financing and 75% equity financing including 80% common shares and 20% preference shares in estimated US$ 30 million of capital. The cost of finance is US$ 3. 9 million. The structure has a relatively cost of finance and also ensures to make use of all advantages as well as minimizes all disadvantages of sources of finance used for expansion. As preparing a detailed and well-organized financial planning, there is a high rate of success for the expansion and other further developments of Xpresso Delight Limited Company. Appendix 1. Formula of cost debts: + Before-tax cost: Rdt = debts x 15% + After-tax cost: Rd = Rdt x (1 – t) Rd : After-tax cost Rdt : Before-tax cost t : Corporate tax rate (t = 25%) . Formula of cost of issuing shares: 1. Cost of issuing common shares: Rc = Dc / Pc (1 – ec) + g Dc : dividend per share (Dc= US$ 0. 3) Pc : value per share (Pc= US$ 1) ec : flotation cost for ordinary share (ec= 17%) g: rate of earnings growth (g= 15%) 2. Cost of issuing preference shares: Rf = Df / Pf (1 – ef) Df : dividend per share (Df = US$ 5) Pf : value per share (Pf = US$ 1) ef : flotati on cost for preference (ef= 10%) Reference: 1. City County of San Francisco (2002) Bond Financing Basics. San Francisco: Controller’s office 2. Communist party of Vietnam (2005) Procedure of borrowing from Vietnam bank for agriculture and rural development [online]. Updated 20 June 2005 [accessed 29 November 2009]. Available from: http://www. cpv. org. vn/cpv/Modules/News/NewsDetail. aspx? co_id=30592cn_id=223635 3. Edexcel HNCHND business (2004) Business environment, London: BPP professional Education 4. Edexcel HNCHND business (2004) Managing financial resources and decisions, London: BPP professional Education 5. Financial News (1996) [online]. eFinancialNews Ltd [cited 26 October 2009] . Available from Internet: http://www. efinancialnews. com/sc=TWTAM000GS 6. Financial planning defined (2005) [online] Financial Planning Association [cited 25 October 2009]. Available from Internet: http://www. fpa. asn. au/FPA_Content. aspx? Doc_id=1056 7. Hong, P. (2007) Capital surplus- to distribute or not?. Saga [online]. Accession No. 362/GP-BC, 10 October, [cited 1 December 2009]. Available from: http://www. saga. vn/Luatkinhdoanh/Luattrongnuoc/6794. saga 8. Hong, S. (2009) Organizational debentures attractive to foreign How to cite Managing Financial Resources and Decisions, Essay examples Managing Financial Resources and Decisions Free Essays P1 Identify (i.e. – list down) at least 4 sources of finance available to Blue Mountain Solutions. We will write a custom essay sample on Managing Financial Resources and Decisions or any similar topic only for you Order Now P2 Assess the implications of different sources finance (e.g. – equity financing and debt financing) for Blue Mountain Solutions including their relative advantages and disadvantages. [Guidance – example of impact category- financial, legal, dilution of control, and bankruptcy) P3https://phdessay.com/the-advantages-and-disadvantages-of-usinfg-npv-net-present-value-and-irr-internal-rate-of-return-npv-net-present-value/ Using scenario 2, evaluate sources of finance (long term loan and mortgage) for the property that Miss. Begum wishes to buy. P4 Analyse the interest costs of your chosen sources of finance for Miss Begum for her property. P5 Explain to Miss Begum the meaning of financial planning and discuss its importance using relevant examples. [Guidance note – you should make specific reference to the need to identify shortages and surpluses and implications of failure to finance adequately] P6 Identify business decision makers (e.g. – shareholder, banks, employees, suppliers) for Blue Mountain Solutions or any other organisation of your choice and discuss their information needs for effective decision making. P7 Explain the impact of finance on the financial statements (e.g. – balance sheet, profit and loss account) of Blue Mountain Solutions or any other organisation of your choice. P8 Describe various types of budgets and explain how budget analysis is useful to make appropriate decisions. P9 Using scenarios 3 calculate and explain cost per unit (CPU) P10 Using scenario 4 assess the viability of a project using an investment appraisal technique (e.g. – Net Present Value (NPV), Internal Rate of Return (IRR) P11 Discuss the main financial statements (e.g. – balance sheet, profit and loss account). P12 Compare formats of financial statements for a Sole Trader and for Public Limited Company (example – Tesco). P13 Using the scenario 5, interpret the financial performance of Tesco Plc and Sainsbury Plc. How to cite Managing Financial Resources and Decisions, Papers

Debut Albums and Integrity Matters free essay sample

Id let my guard down and possibly get caught and reported by a nosy co-worker. If that doesnt happen, I would begin to question whether anyone knows I exist; whether anyone doesnt know or Just doesnt care about me or the work I do. Id also consider that maybe Im the bosss favorite and it has been overlooked as a result. Jazzing 2. If I dont get a stern talking to the first two or three times, I would probably continue to do so, increasing frequency in lateness. Most likely, however, I would get a verbal warning, a written warning and then a loss of Job. If I never seem to meet a deadline how do I still have a Job? My clients would have long moved on to someone else who can meet their timely concerns. 4. Complaining about the boss in the lunch room is a serious risk to take, especially with coworkers. We will write a custom essay sample on Debut Albums and Integrity Matters or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page If I did that, they better be good friends, but there would still be a good chance that either the boss or someone who doesnt like me can overhear and find a way to use it against me. Complaining about it on Backbone can be an Invasion of privacy, especially if my settings are set on private. If I still publicly Insulted my boss and it was discovered, there is a good chance he wouldnt say anything to my face, but would never look at me the same. Reputation ruined with a good reference gone. 5. This Is Just bad parenting. Skipping a childs performance to watch a TV show is almost never acceptable. The lack of support would result In bad relations with the child In the long run. These kinds of actions would likely Increase In frequency and the child would begin to have behavioral problems In order to seek parental attention.

Coolidge V. New Hapmshire Essays - Modern Painters, Philip Guston

Coolidge V. New Hapmshire (1913-1980), American painter. Guston had three distinct phases or styles during his artistic career, all of them remarkably successful. After first working as a muralist in a relatively realistic style, he became prominent in the late 1940s and early 1950s as part of the abstract expressionism movement. Beginning in the late 1960s, his late period of clunky, expressive paintings of the human form marked the start of a revolt against the abstract style that had dominated American painting since the early 1950s. Born Philip Goldstein in Montreal, Canada, Guston moved with his Russian-Jewish emigr? parents to Los Angeles, California in 1919. His father committed suicide in 1920. In 1927 Guston attended Manual Arts High School, together with American artist Jackson Pollock; both were expelled in 1928. Guston never returned, and his only other formal schooling was three months at the Otis Art Institute in Los Angeles in 1930. In 1935 he moved to New York City, and in 1937 married poet Musa McKim and changed his name. During World War II (1939-1945) Guston taught art at the University of Iowa in Iowa City. During his early artistic phase, which lasted from his youth in California until the late 1940s, he painted the human form in a style influenced by the abstract geometry of European modernism and the patriotic themes of Mexican mural painting. Guston painted murals for the Works Progress Administration Federal Art Project between 1935 and 1940, executing, among other projects, a major commission for the 1939 New York World's Fair: Maintaining America's Skills (now destroyed). None of his murals have survived, but canvases that he also worked on during this period, such as Bombardment (1937-1938, Estate of Philip Guston) and The Gladiators (1938, The Edward R. Broida Trust, Los Angeles), are allegories (symbolic stories) with a strong strain of social protest. By the late 1940s Guston was turning increasingly to abstraction, and by the early 1950s he was a prominent figure-along with Pollock-in the so-called New York school of abstract expressionist painters. Abstractions such as Painting (1954) and The Clock (1956-1957), both in the Museum of Modern Art, New York, though quite different from each other, are typical of Guston's middle period. Both are marked by a concentration of short strokes of high-pitched colors, jumbled at the center of a field of lighter color. By the late 1960s, Guston had abandoned abstraction, instead drawing cartoonish heads, clocks, lightbulbs, and hooded figures recalling the Ku Klux Klan figure in his early painting The Conspirators (1932, location unknown). In 1970 he exhibited these radically different paintings for the first time, in a major show in New York City. Reviews were harshly negative, and former friends shunned him. Guston withdrew from the New York City art scene, spending most of his time in Woodstock, New York, and forming close friendships with American poets Bill Berkson, Clark Coolidge, William Corbett, and Stanley Kunitz, all of whom, in addition to Musa McKim, he collaborated with on a series of projects that he called his Poem Pictures. Guston painted at a steady pace throughout the 1970s, producing works in which lone, sometimes hooded figures or disembodied heads, eyeballs, or feet typically lurk in apocalyptic junkyards scattered with clocks, bricks and other debris. Painting, Smoking, Eating (1973, Stedelijk Museum, Amsterdam, The Netherlands), is a self-portrait showing Guston in his studio, which is piled with shoes and lit by a naked lightbulb. The dark subject matter in these works belies their cheerfully naive painting style. Of Guston's three phases, the last proved most influential on a subsequent generation of artists, the figurative neoexpressionists of the 1980s, including American painter Julian Schnabel and German painter Georg Baselitz, in whose work the impact of Guston's expressive and unique imagery is evident. Bibliography us history book pg. 211 Governmental Issues

Molly Brown Essays - Mike Molly, American Women In World War I

Molly Brown Essays - Mike Molly, American Women In World War I Molly Brown The woman who would come to be known as the "Unsinkable Molly Brown" was born on Denkler Alley and Butler Street in Hannibal, Missouri on July 18, 1867. She was born during a very bad thunderstorm and her mother predicted right then that Molly would not be "just another pretty face." Margaret (Molly's birth name) grew up in a small town with a surprisingly small population of less than 20,000 people. (Heroine of the Titanic, 1) Margaret attended school for thirteen years. It was during these years that she earned her nicknames Maggie and Molly. She had a very open and close family. There were eight people in her small childhood home. These eight consisted of her two parents, her five brothers and sisters, and Molly herself. At the age of ten Molly's father taught her how to row a boat. He insisted that this skill would be useful for her later in life. If he only knew what laid in store for his daughter! A little known fact about Molly's family is that they were poor. She tried to keep this fact about her family a secret because she found it shameful and embarrassing. As a young girl Molly worked at the Park Hotel. She was soon dismissed for being too opinionated for a young lady. She then went to work in a tobacco plant, but found the conditions disgusting and vulgar. (The Unsinkable Molly Brown, 1) At the age of nineteen, Molly was getting bored in her small "same ol, same ol" town. When she heard that one of her favorite cousins and his wife were taking a train cross-country to Colorado she literally jumped at the idea of going with them. She had heard all of the stories of adventure and excitement in the West and wanted very badly to try her hand at it herself. Molly's parents decided to let her go because their small town had nothing to offer their daughter. Molly's main goal in life had always been to achieve success and be well known. They hoped their oldest child could make her dreams come true in the great land of Colorado. Once Molly got to Colorado, she was anxious to begin her own adventure and see what was in store for her. She got a job sewing carpets while she got her new life started. Her co-workers described her as a "capable and pleasant" employee. They all adored her because she had a bright, charming personality, and beauty to go with it. Molly's move to Colorado was also a bit terrifying because she could have found herself working in a crib house, as a prostitute, or a cook in a boarding house instead of fulfilling her dreams. It was here in Colorado that she met her future husband while the both were mining for silver. Molly met James Joseph Brown in a local mine. He fell madly in love with her charm and wit. Stories say that when he came to her house for their first dates he pulled up to her gate with an old , worn carriage and an aging horse. Molly said to James, "Certainly you are not taking me anywhere in that!" The next time James called on her, he had purchased a brand new horse and carriage just to show Molly off in. Maggie and J.J. married on September 1,1896. Not long after their marriage James struck it rich in the silver mines of Leadville. The couple bought a sixteen-room mansion that is now a museum. ( Molly Brown, 1) Legend says that not long after they moved into their large home, J.J. brought home his $300,000 paycheck . Molly placed it in the stove for safe keeping. When James came in later that evening and lit the stove to warm himself up, he did not realize that Molly had hidden the money there and in a split second their monthly fortune was gone. As good as things were going for J.J. and Molly financially, their marriage was heading for trouble. J.J. was sick of all the commotion Molly was causing around the town. Although documents do not reveal what commotion Molly got into , we can only begin to imagine what kind of things she stirred up! J.J. soon left Molly and she sent their children to boarding school. With no one for Molly to care for she decided to set off on her own

Saint-Boniface Museum Research Paper Example | Topics and Well Written Essays - 1500 words

Saint-Boniface Museum - Research Paper Example It has also provided a map that assists strangers to find its location (St. Boniface Museum). Products and collections There is a variety of products or collections and services offered by the museum. The collections found in the museum include medical equipment, archaeological pieces, Louis Riel’s coffin, domestic and furnishing accessories, a Red River cart replica, the first bell of the church in the West, educational and religious artifacts, and trade and agricultural tools (St. Boniface Museum). In the archives, there are photographs while, in the decorative arts, there are musical instruments, furniture or furnishings and textiles or tapestries. Under fine arts, there is the Canadian culture, painting, sculpture, folk art and religious art (St. Boniface Museum). The collections under human history include; Time-keeping devices or clocks Furniture or furnishings Communication devices Imaging (photographs) Medals Local history Domestic technology or household objects Maps, charts, blueprints or plans Spots equipment Weapons Transportation Memorabilia Toys and games Religious or liturgical objects, and Non-motorized ground Biological collections, found under natural sciences, include plants and animals. There exists zoology, mammals (Mammalia), birds (Aves) and vertebrates (St. Boniface Museum). Services and activities Self-guided or guided tours, school visits, exhibits, treasure boxes for seniors, school programs, and consulting services Educational programs- lectures, family programs and school programs Visitor services- children activities or services (playground, change table or nursing area), bilingual services, exceptional needs facilities (wheelchair access, signs and washrooms), guided tours (English and French), a public transportation accessibility, washrooms, gift shop, parking facilities (bus), and cloakroom Volunteer services- there is availability of volunteer training. The number of volunteers should be twelve. Activities: board member ship Food services- catering services Internet services- virtual exhibitions, education, local history, online gift-shop or bookstore, directions or maps, and school visits or programs Market trends and patterns The museum (Saint Boniface) is a non-profit organization. All the benefits or profits received from any purchase made become used to support the museum (St. Boniface Museum). It has advertisers and sponsors who support it in marketing and financial matters. Some of the tradeshow participants are; the Canadian Association of Professional Conservators, Cibinel Architects Limited, Dorfman Museum Figures, Color Art Supply and Framing, Maker Technical Sculpture Services, and others (St. Boniface Museum). The museum has a gift shop that offers various gifts, souvenirs and heritage themed items with a link to cultures of Metis and French and the fur trade. Some unique merchandise available in the shop includes the famous voyageur shirts and sashes in different qualities, sizes and patterns (St. Boniface Museum). There are also traditional toys, local foods, small Red River carts (hand-made), gifts made locally by hands, and Quebec Maple Syrup products. Items, which are exclusive, to the museum shop consist of polar fleece scarves, Louis Riel T-shirts, cards, Metis mugs and posters (St. Boniface

Has British aid policy over the past 20 years been effective Essay

Has British aid policy over the past 20 years been effective - Essay Example This has been one of the biggest move in the recent years that has ended with U.K. meeting the pledge to give 0.7% of its GNP as donor aid. In the latest development in the policy dubbed the UK AID Match scheme, the public is given a chance to give their opinion on a portion of the international development budget is to be used (Department of International Development, 2015). The scheme is aimed at helping alleviate poverty in the developing countries. In the three years that the scheme is supposed to be running, the United Kingdom is to award a whopping  £120 million to selected developing countries in two funding rounds per year. This has been seen as the most significant turn in the aid policy in the recent years. This paper will therefore try to address the effectiveness of the aid policy in the past 20 years and its effectiveness in fulfilling its mandate. Aid is justified on moral and national interests of the country. This is according to the British Prime Minister David Cameron and international development minister Justine Greening. Therefore, the developments that are made as far as the aid policy is involved are meant to make a point in the international scene (The Guardian, 2013). The periods of economic hardships that have hit the world in the recent past also affected the UK aid policy with little money being set aside for the kit. Africa and other struggling countries such as Syria have been the recipients in the British aid policy. British is obligated to make significant contributions to various programs which include the ones in the European Union. More funding was done to the many civil societies in Africa (Hearn, n.d.). The UK’s total aid program has been the major factor in determining the foreign aid that will be given to countries rather than basing that as an obligation as it has been done in the recent years. The

None Essay Example | Topics and Well Written Essays - 250 words - 30

None - Essay Example Precisely, the Toyota Prius sold many vehicles to over eighty nations. The advertisements and word of mouth has influenced the demand for the Toyota Prius. The iPhone competes with the increasing alternatives, and the prices have dropped. The distribution of the iPhones has intensified, and the products are available in different parts of the globe. The adverts in maturity stage focus on promoting the product by influencing the consumers to increase the purchasing power (Cant et al 242). Fundamentally, the adverts aim at creating a competitive edge in the ever-competitive market through a differentiation strategy. The iPod advert is an excellent example of product in the decline stage of life cycle. With introduction of new products, iPod sales have decreased. Similarly, a notable decline of interest from the consumers and retailers is evident. Maximum competition has occurred leading to negative sales growth, as well as, lower profits. Cant et al argues that stagnation characterize the decline stage of product life cycle

Cyber Warfare: the Future of War

Cyber Warfare: the Future of War CHAPTER I INTRODUCTION Karl von Clausewitz defined war as an act of violence intended to compel our opponent to fulfill our will In order to attain this object fully, the enemy must be disarmed, and disarmament becomes therefore the immediate object of hostilities. At the end of the second millennium, this classification no longer describes the full spectrum of modern warfare. In the future, we will have the prospective to make war without the use of violence and fulfill the second half of von Clausewitzs definition-with software alone. Todays software intensive systems make this probable. Cyber describes systems that use mechanical or electronic systems to swap human control. Cyber warfare can be executed without violence and therefore the reliance on software intensive systems-cyber systems-can make nations exposed to warfare without violence. What is Cyber? Terms with cyber used as prefix are currently in vogue not only among some visionaries and technologists seeking new concepts, but even by the man in the street, and each has its own connotation. The term cyber is from Greek root kybernan, meaning to steer or govern and a related word Kybernetes, meaning pilot, governor, and/ or helmsman. Norbert Weiner first introduced the prefix in the 1940s in his classic works creating the field of cybernetics (which is related to cybrenetique, an older French word meaning the art of government). Cyber, in fact has been the most acceptable term due to the reason that it bridges the gap between information and governance, the two inseparable facets of control. The prefix therefore, is freely used in the following: Cyberspace. Originally coined by William Gibson in his science fiction novel Neuromancer, published in 1984, and defines it as that position within the computer where electronic activity / communication takes place. He further describes it as a place of unthinkable complexity. The term has given rise to a vocabulary of cyberterms such as cybercafes (cafes that sell coffee and computer time), cybermalls (online shopping services) and cyberjunkies (people addicted to being online). Cybernetics. It is the science of communication and control, which interfaces a monitor (human brain or an electronic machine) to other parts of a system. The function being, to compare what is happening in the system, to what should have happened and then draw the difference, which is passed on to the control system for rectification (feedback). It applies equally to organisations, machines and organisms. Cybernetics is also used to describe a general analytical approach to control, communication and other system technologies and attempts to link engineering disciplines with the related work of social scientists through the unifying threads of feedback in its most general aspects and through its interest in transfer of information. Cyberwar. A RAND Corporation synonym for information warfare, it is also sometime called netwar. Another school considers it as knowledge related conflict at the military level. However, Denis Quigley comes close by designating it as control warfare or leitenkreig in German. Cyberwar will be discussed more in detail later in the Study. Cybernation. Loosely used, it implies digitisation of various systems of an arrangement/organisation or super systems, where electronics links humans to machines, thereby immensly amplifying the human capabilities. It, in its most basic form, would indicate electronic automated management of information and knowledge. Cyber warfare (CW). It is a relatively new addition to the glossary of warfare. With the escalating use of computers in military and government, there has been a growing awareness of both a new susceptibility in national infrastructure and a new method of attacking ones enemies. There is the potential of using information systems to protect, control or attack information networks. CW could mean winning wars without firing shots, the shutting down of entire national infrastructures at the push of a button, and the complete exploitation or destruction of an enemys communication networks. It could mean threats from across the world by states with no ability to launch a conventional attack, or attacks by non-state actors using cheap laptops. There has also been talk of super-viruses shutting down nations, and how a disgruntled individual or small group could wage a war on a nation. CW is the new wonder weapon, and the new unknown threat. However, the concept of CW, and the technology on which it relies, is beset by vague depictions of the dangers it presents, or the benefits it offers. CW is conceptualised by security expert Amit Yoran, cyber-security chief at the US Department of Homeland Security and vice president of computer corporation Symantec, as the future primary theatre of operations. There is a consensus that CW is something noteworthy, but it is not clear if this consensus extends to a common understanding of what CW actually is. It is so new that there is no standard definition to describe it. This leads to one of the most frequent confusions regarding cyber warfare: its relation to Information Warfare (IW). IW is not unproblematic in definition, but can be understood as the offensive and defensive use of information and information systems to deny, exploit, corrupt, or destroy, an adversarys information, information-based processes, information systems, and computer-based networks while protecting ones own. While IW covers the territory of cyber warfare, it also covers a much broader mandate. Electronic (cyber) communication is only one aspect of IW, which includes all information operations in a conflict. Chinese strategist Sun Tzu and Napoleonic strategist Carl von Clausewitz referred to information operations, and the importance of such operations in war. IW predates electronic communication, and is not interchangeable with cyber warfare for this reason. CW involves units organized along nation-state boundaries, in offensive and defensive operations, using computers to attack other computers or networks through electronic means. Hackers and other individuals trained in software programming and exploiting the intricacies of computer networks are the primary executors of these attacks. These individuals often operate under the auspices and possibly the support of nation-state actors. In the future, if not already common practice, individual cyber warfare units will execute attacks against targets in a cooperative and simultaneous manner. Analyzing the Threat. In 2007, a denial-of-service attack was launched every 53 minutes. The 2007 FBI/Computer Security Institute study indicated that loss of revenue attributed to DDoS (dedicated denial of service) was approximately US$90,000 an hour for a retail catalog sales company. Malware is a common cyber-weapon. Malware (short for malicious software) is a computer program designed with malicious intent. This intent may be to cause annoying pop-up ads with the hope you will click on one and generate revenue, or forms of spyware, Trojans and viruses that can be used to take over your computer, steal your identity, swipe sensitive financial information or track your activities. At least five new pieces of malware emerge every two minutes, according to Kasperskys Internet Security Lab. One critical measure I monitor regularly is the number of significant events reported to Hackerwatch.Org. At the time Im writing this, in the past 24 hours, there have been more than 8 million sign ificant incidents reported. The warning signs are there, but the question remains: Are we smart enough to prepare? A key premise of this paper is that information processing-whether by equipment (computers) or by humans-is becoming a center of gravity in future warfare. Although there is much debate on the reality of the CW threat, the growing number of computer intrusions on government and non-government systems substantiate the fact that the threat is very real. The growing dependency on information and information based technologies have made us very vulnerable to hostile attacks Hence, our immediate goal must be to both imagine and define how foreign cyber attack capabilities might threaten information networks in India and what potential effects they might have. METHODOLOGY Statement of Problem This paper seeks to study and analyse the use of cyber warfare in future conflicts its implications on national security. To suggest Indias response to these cyber threats by outlining a clear, well defined cyber security strategy and suggest measures to safeguard own national security. Hypothesis As information systems permeate in military and civil lives, a new frontier is being crossed The Information Age- which will define the future wars. Cyber Warfare has become central to the way nations fight wars and is the emerging theatre in which future conflicts are most likely to occur. Cyber warfare will take the form of a devastating weapon of the future battlefield which will be integrated in the War fighting Doctrines of nations across the world. Justification of Study The premise of cyber warfare is that nations and critical infrastructure are becoming increasingly dependent on computer networks for their operation. Also as armies around the world are transforming from a platform centric to a network centric force there is increasing reliance on networking technology. With all the advantages of such connectivity come unprecedented challenges to network security. Threats to information infrastructure could be in the form of destruction, disclosure, modification of data and/or denial of service. A hostile nation or group could exploit the vulnerabilities in poorly secured network to disrupt or shut down critical functions. The protection of our information resources information assurance, will thus be one of the defining challenges of national and military security in the years to come. To take advantage of Information Technology revolution and its application as a force multiplier, the Nation and army in particular needs to focus on Cyber Security to ensure protection / defence of its information and information system assets. Many will argue that defence and intelligence computer systems of most countries including Idia are air gapped and thus, isolated from the Internet. It may appear convincing that by air gapping the networks and using superior technology, the risk may be reduced. However, this will not provide fool proof security. With the proliferation of technology at an astronomical rate, the threat of cyber terrorism will only increase. The air gapped networks are vulnerable from insiders, disgruntled employees and moles planted or recruited by cyber terrorists or their sympathisers to cause the intended damage. A cyber terrorist may impersonate a computer technician and call individuals within the targeted organisation to obtain information to penetrate a system. Once in possession of legitimate log on information, cyber terrorists will have Iegal access to a system and can insert viruses, trojan horses, or worms to expand their control of the system or shut it down. In Russia, hackers used a gas company employee to plant a trojan horse which gave them control of the nations gas pipelines. It is against this backdrop that it becomes imperative as a soldier to understand cyberspace, the threat that it poses and to suggest some steps in order to minimise, if not eliminate the menace that it would cause. Scope This study concentrates on the evolution of cyber warfare and the giant leaps that it has taken in the past decade. The entire spectrum of cyber conflict, including threat reality of cyber warfare being used as a potent and devastating weapon of the future battlefield has been covered. Further the study outlines the cyber warfare capabilities of select nations and how vulnerable India is to these threats. Finally the report outlines a cyber security strategy and recommendations for combating the cyber warfare threat in the 21st century. Methods of Data Collection The data has been collected through various journals, seminar papers and certain books on the subject. Some material has also been downloaded from the Internet. A bibliography of sources is appended at the end of the text. Organisation of the Dissertation It is proposed to study the subject under following chapters: Chapter I Introduction and Methodology. Chapter II The Future of Warfare. Information Revolution and Warfare. Defining Cyberwar. Evolution of Cyber Warfare. Chapter III Global Threat in Cyberspace. Threats in Cyberspae. How Real Is the Threat? Spectrum of Cyber Conflict. Recognition of the Cyber Warfare Threat. Chapter IV Combating the Threat. How Vulnerable are We? Cyber Security: A Few Initiatives. Def Cyber Warfare. Cyber security Strategy. Chapter V Conclusion. The Digital Battlefield. Recommendations. CHAPTER II THE FUTURE OF WARFARE So it is said, if you know others and know yourself, you will not be imperiled in a hundred battles; if you dont know others, but know yourself, you will win one and lose one; if you dont know others and dont know yourself, you will be imperiled in every single battle. -Sun Tzu Will conventional warfare remain the custom for the future or will a new wave of warfare emerge? Down through the corridors of time, wars have been fought for various reasons. Conflict arose from regional instabilities, economic and social perils, and religious animosities. In their book, War and Anti-War: Survival At The Dawn of The 21st Century, Alvin and Heidi Toffler categorize the progression of warfare into three stages or waves: agrarian, industrial, and informational. While some areas of the world still remain in the agrarian realm and some others have advanced to the industrial state, a few have broken out into a completely new era-the information age. Information Revolution and Warfare If you know the enemy and know yourself, you need not fear the result of a hundred battles .If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle. This extract comes from the 6th century BC Sun Tzus The Art of War and is still as compelling today as it was two and a half millennia ago. As a matter of fact, it is in all probability safe to say that knowledge and information about ones adversary have a greater impact now than they have had at any other point in the history of warfare. At the same time, critical information is now often stored electronically in spaces reachable from the Internet, which means there is a prospective for it to leak out to ones adversary, or for the opponent corrupting it in order to affect ones decision making capabilities. There is no standardised definition of Information Warfare. However it has been defined as Actions taken to achieve information superiority by affecting adversely information, information based processes, information systems and computer based networks of the adversary, while protecting ones own information. An aim of warfare always has been to affect the enemys information systems. In the broadest sense, information systems encompass every means by which an adversary arrives at knowledge or beliefs. A narrower view maintains that information systems are the means by which an adversary exercises control over, and direction of fielded forces. Taken together, information systems are a comprehensive set of the knowledge, beliefs, and the decision making processes and systems of the adversary. The outcome sought by information attacks at every level is for the enemy to receive sufficient messages that convince him to stop fighting. Information Warfare is a form of conflict that attacks information system directly as a means to attack adversarys knowledge or beliefs. Information Warfare can be prosecuted as a component of a larger and more comprehensive set of hostile activities a net war or cyber war or it can be undertaken as the sole form of hostile activities. Most weapons, a word used to describe the lethal and nonlethal tools of warfare only have high utility against external adversaries. While most often employed against external adversaries, many of the weapons of information warfare are equally well suited for employment against internal constituencies. For example, a state or group cannot use guns or bombs against its own members; however, the weapons of Information Warfare can be used, have been used, and very likely will be used against both external and internal adversaries. Information warfare as defined by Martin Libicki has seven components: Command and Control Warfare. Intelligence based warfare. Electronic Warfare. Psychological Operations. Hacker Warfare. Economic Information Warfare. Cyber Warfare. This concept of seven components is universally recognised today, as it encompasses the entire spectrum that Information Warfare offers. Besides, it strongly argues that Information Warfare is not exclusively a military function and various actors viz. the media, private industry and civil society including civilian hackers play a key role in building a nations capability to wage Information Warfare. The role of private industry has gradually been acknowledged as cutting edge information technologies become increasingly pervasive in sensors and weapon systems. The information systems while making the military more efficient also render it vulnerable to attacks on the systems itself. Winn Schwartau, also known as the Civil Architect of Information Warfare has defined Information Warfare in this very context: Information Warfare is a conflict in which information and information systems act as both the weapons and the targets. As far as the Indian viewpoint on Information Warfare is co ncerned, history amply reveals that information was essentially viewed as a strategic resource. Kautilya, the great strategist of the Maurya period, strongly advocated the need of obtaining accurate information about the enemy forces and plans of action. In fact, he is considered to be instrumental in the victory of the Mauryans and placing Chandragupta Maurya on the Magadha throne. His astute thinking on warfare and statecraft is portrayed in the famous treatise Arthshastra. While postulating that war may not always be the right option, Kautilya espoused the importance of information and knowledge in winning wars. Information Superiority and Cyber Warfare. Information Technology is a double edged weapon. It provides vast opportunities but simultaneously introduces new vulnerabilities and threats, which may arise through computers, content and connectivity or, to put it differently, hardware, software, information and networks. Information superiority over our adversaries including militant and terrorist outfits is very essential. Non Lethal information weapons can black out communication systems, destroy valuable data and cripple the nation. Therefore, we have to act faster than any adversary. This requires defensive as well as offensive cyber warfare capabilities. Cyber warfare can be a full fledged war and vital infrastructure shall get targeted. To handle cyber wars, highest national level decision making is required, in real time and with full fall back options. For this purpose, basic building blocks include excellent monitoring tools for network traffic, web sites and databases, intrusio n detection, firewalls, encryption and decryption algorithms, public key infrastructure and remote access facilities. Offensive cyber warfare spans computer crimes and information terrorism. Everyone is under threat telephone, power supply, banks, transport, and the day to day needs. lt is important to create tools, awareness, and structures to assess threats to information resources, including military and economic espionage computer break-ins, denial-of-service, destruction and modification of data, distortion of information, forgery, control and disruption of information flow, electronic bombs, etc. ln essence, the thrust of the initiatives must lead to information assurance like life assurance. Defining Cyberwar Cyber Warfare. It is the sub-set of information warfare that involves actions taken within the cyber world. There are many cyber worlds, but the one most appropriate to cyber warfare is the Internet and related networks that share media with the Internet. Cyber Warfare as related to defence forces refers to conducting of military operations according to information related doctrine. It means disrupting or destroying information databases and communication systems. It means trying to know everything about the enemy while keeping the adversary from knowing much about oneself. It means turning the equilibrium of information and knowledge in ones favour especially if the balance of forces is not. It means using information so that less capital and labour may have to be expended. Cyberwar refers to conducting, and preparing to conduct, military operations according to information-related ideology. It means disrupting if not destroying the information and communications systems, broadly defined to include even military culture, on which an adversary relies in order to know itself: who it is, where it is, what it can do when, why it is combating, which threats to counter first, etc. It means trying to know all about an opponent while keeping it from knowing much about oneself. It means turning the balance of information and knowledge in ones favour. This form of warfare may involve diverse technologies-notably for C3I; for intelligence collection, processing, and distribution; for tactical communications, positioning, and identification-friend-or-foe (IFF); and for smart weapons systems-to give but a few examples. It may also involve electronically blinding, jamming, deceiving, overloading, and intruding into an adversarys information and communications circuit s. Yet cyberwar is not simply a set of measures based on technology. And it should not be confused with past meanings of computerized, automated, robotic, or electronic warfare. Cyber warfare requires different principles of warfare which have been derived from thousands of years of experience as documented by Sun Tzu, Clausewitz, Jomini, Liddell-Hart, and others. Some of the kinetic warfare principles apply to cyber warfare while some principles of kinetic warfare have no meaning in cyber warfare. Some principles of kinetic warfare may actually be antagonistic to cyber warfare. The various characteristics and principles of cyber warfare are as under: Waging cyber war is relatively cheap. Unlike traditional weapon technologies, acquiring information weapons does not require vast financial resources or state sponsorship. Boundaries are blurred in cyberspace. Traditional distinctions public versus private interests, warlike versus criminal behavior, geographic boundaries, such as those between nations tend to get lost in the chaotic and rapidly expanding world of cyberspace. Opportunities abound to manipulate perception in cyberspace. Political action groups and other nongovernment organisations can utilize the Internet to galvanize political support. Cyber war has no front line. Current trends suggest that the economy will increasingly rely on complex, interconnected network control systems for such necessities as oil and gas pipelines, electric grids, etc. and these will become vulnerable to cyber attacks. Cyber-warfare must have kinetic world effects. Cyber warfare is meaningless unless it affects someone or something in the non cyber world. Anonymity. Cyber warfare can be waged anonymously. Anonymity is the nature of new technologies, especially telecommunications. An anonymous attack creates two problems. Not only has a states national security been breached, but there is no one to hold accountable for the attack. Offensive Nature. Information technology and computer systems are vulnerable by nature. Therefore, taking defensive measures against the information warfare threat will always be difficult and costly. Improving the defense of information systems also contributes to the security dilemma since decreasing ones susceptibility to information warfare increases the attraction of using information warfare offensively. Cyberwar may have broad ramifications for military organization and doctrine. As noted, the literature on the information revolution calls for organizational innovations so that different parts of an institution function like interconnected networks rather than separate hierarchies. Thus cyberwar may imply some institutional redesign for a military in both intra- and inter-service areas. Moving to networked structures may require some decentralization of command and control, which may well be resisted in light of earlier views that the new technology would provide greater central control of military operations. But decentralization is only part of the picture; the new technology may also provide greater topsight-a central understanding of the big picture that enhances the management of complexity. Many treatments of organizational redesign laud decentralization; yet decentralization alone is not the key issue. The pairing of decentralization with topsight brings the real gains. Cyberwar may also imply developing new doctrines about what kinds of forces are needed, where and how to deploy them, and what and how to strike on the enemys side. How and where to position what kinds of computers and related sensors, networks, databases, etc. may become as important as the question used to be for the deployment of bombers and their support functions. Cyberwar may also have implications for the integration of the political and psychological with the military aspects of warfare. In sum, cyberwar may raise broad issues of military organization and doctrine, as well as strategy, tactics, and weapons design. It may be applicable in low- and high-intensity conflicts, in conventional and non-conventional environments, and for defensive or offensive purposes. As an innovation in warfare, I anticipate that cyberwar may be to the 21st century what blitzkrieg was to the 20th century. At a minimum, it represents an extension of the traditional importance of obtaining information in war-of having superior C3I, and of trying to locate, read, surprise, and deceive the enemy before he does the same to you. That remains important no matter what overall strategy is pursued. In this sense, the concept means that information-related factors are more important than ever due to new technologies Evolution of Cyber Warfare Since the early days of the Internet, there were individuals trying to compromise computer systems security via the network. Initially their activities were limited to defacement of web pages and motivated mostly by mere thrill seeking. In the 1990s political activists realized the potential for publicity coming with the attacks, and defacements carrying a political message became more frequent (Hacktivism). The palette of attack types also widened greatly, most notably some of them became aimed at bringing services or whole systems down, by generating excessive network traffic (denial of service, email bombardments). The first reported politically motivated cyber terrorist attack using a flood of emails was carried out by the Tamil Tigers against Sri Lankan embassies in 1998. It was successful, even as it did not bring targeted servers down, because more importantly it attracted worldwide media attention to the attackers cause. Activist groups involved in other struggles around the world soon followed with similar attempts. The diplomatic conflict between Pakistan and India over Kashmir has, since the late 1990s, been paralleled by a series of mutual cyber attacks. In the Middle East, every time political or military fight escalated between Israel and Palestinians, so did fights on the virtual battlefield. Both sides have used sophisticated techniques and well planned strategies for their cyber attacks. Pro-Palestinian attacks have been carried out by a number of terrorist groups (some of which even came up with the term cyber jihad), and pro-Jewish ones might have been coordinated by the state of Israel, though there is no clear evidence to support that. Studies have shown that Israel leads the list of countries in terms of numbers of conducted computer attacks per 10,000 Internet users. This brings us to the newest trend in cyber warfare: cyber attacks carried out by hacker groups inspired, coordinated, funded and supplied with resources by nation states. They are usually large scale and prolonged operations targeting specific systems within enemy structures. Probably the first of this type of attacks took place during the NATO air strikes against targets in Former Republic of Yugoslavia during the Kosovo violence in 2000. Targeted were all 100 of NATO servers, each subject to excessive network traffic originating mostly from Serbia, as well as Russia and China its supporters in the conflict. The cyber attacks caused serious disruptions in NATOs communication and services, lasting several days, but did not directly affect the bombing campaign. These days cyber warfare still mostly consists of uncoordinated cyber terrorism acts performed by groups whose main aim is publicity and media coverage. Gradually though the nature of cyber warfare is going to change into activities coordinated and paid for by nation states and large international terrorist networks. We can expect attacks trying to exploit vulnerabilities in critical infrastructure like telecommunication systems, airports, power plants, oil and gas infrastructure, supply of water, and military systems. In the coming years we are likely to see a quick rise in the number of cyber battles and one can imagine that in the future wars are going to be fought without dropping bombs and firing missiles. CHAPTER III GLOBAL THREAT IN CYBERSPACE Threats in cyberspace There are four fundamental categories of threats to our information and information infrastructure, characterised by the degree of structure in their attack capability and the measure of trust or access that the threat enjoys. These categories are: Unstructured External Threats. These are individual or small group of attackers who rely heavily on others tools and published vulnerabilities. They attack targets of opportunity and lack persistence against difficult targets. Structured External Threats. These are coordinated attackers i.e. hostile intelligence agencies or organised crime syndicates, which possess a deep technical knowledge of the target, strong motivation, and the capability to mount combination attacks using multiple complex tactics and techniques. Non Malicious Internal Threats. These are accidental breaches of security caused due to ignorance or malfunctioning of system. Malicious Internal Threats. Here the attackers are trusted members of the org or a less trusted support worker with some degree of access. The threats can also be classified under the following heads:

Case Study: Dell :: essays research papers

Case Study: Dell Dell can be one of the most successful companies mostly due to its direct marketing strategy. Unlike other computer companies which sell their product through retailers, Dell provides their computer and service directly to customers. The direct-selling model makes the company understand their customers better and eliminates the retailer cost. What is more, each PC is customized to the customers who can specify what components they want. Dell also holds little or no inventory and assembles products as soon as an order placed. The company can save inventory cost and apply new technology on their product quickly by using the just-in-time approach. In 1996, Dell became the e-commerce leader, for its website is not only some pages describing the details of products but also an online shop specializing computers for consumers. People can buy computer on the website which covering 80 countries, 27 languages/dialects, and 40 currencies without leaving home. Therefore, direct marketing strategy with low cost (low price), customization and e-commerce is the key factor for Dell’s success. Blois et al (2000.p.20) argued that marketers have been making increasing efforts to integrate direct-marketing activities within their overall communications mix. For instance, when a new computer comes into the market, the company should integrate every aspect of its campaign like TV Ads, online promotions, sending emails and brochures to the potential customers and so forth. Such Integrated marketing communications which can generate the awareness of the new product are likely to become popular in the future. Furthermore, in order to remain its top position, Dell has to develop new market such as camera and printer.

Music and Cognitive Functioning Essay

Music is an art form and one of the most popular media utilized to convey ideas, views, and emotions. It plays various, significant part in everyone’s life. It can calm one’s mood and emotion. It can relax a person’s tensed body. However, it can also hype and motivate people. Music is also a means that we can use to express our ideas and messages. It can also be an extension of our personality and a manifestation of our identity. The type of music that we listen reflects what kind of person we are. It is often suggested to pregnant women to listen to classical music for it is believed that listening to classical music stimulates the baby’s activity inside the mother’s womb. It is also believed that listening to music by pregnant women increases the probability that their child will be intelligent. Some students can also study their lessons well while listening to music. The melodies and tunes make the environment conducive to learning. They tend to absorb and understand their lessons well while they are listening to their favorite songs. This idea poses the possibility of enhancing people’s cognitive capacity through music. Thus, this paper aims to discuss the relationship of music and a person’s cognitive capacity, and whether music increases a person’s intelligence. Music Music is an art, a craft, and an organized representation of sounds, silence, notes, and melodic tunes subjected in a time framework. Music includes a wide array of activities. It could be in the form of a mother putting her child to sleep through a lullaby, a group of kids singing their favorite nursery rhyme, a rock band playing their heart throbbing hits, or simply a person humming unconsciously (Miller 3). Music is a succession of arranged tones that produce a rhythm (Miller 3). This definition does not cover the characteristics of music, but it covers the description of the different genres people may be affiliated with. Music is relative and subjective. It conforms to the taste and preference of the person. Music lessons taught us that music is comprised of notes, staffs, pitch, and voice. These are the superficial discernible characteristics of music. These are the things you will learn in your music class. Music has different forms in various cultures, and it is experienced by individuals through different ways. Music has two subdivisions based on culture. These are the â€Å"high culture† and â€Å"low culture† types of music. High culture music is eminent in U. S. and Europe. This type of music includes the music of the western world formed during the different periods—Classical, Baroque, and Romantic, among others. It is considered as the art music and is performed in the concert halls and churches. It is treasured by people in the conventional music industry. The other type of music includes the contemporary kinds of music like jazz, blues, country, rock, pop, etc. Nowadays, the distinction between the high and low culture of music is widely accepted for it separates the quality of music of better quality, more advanced art music from the music played in the nightclubs and dance halls. Music and Intelligence People always look for ways and means to increase their intelligence. This is inherently true for parents, especially the first-time parents who want to practically boost the cognitive functioning of their children. There is news proliferated by the media that the music of Mozart can actually make a person smarter. Due to this evidence, some educators and policy makers even suggest that playing Mozart’s music in elementary schools should be mandated (Nairne 346). Everyone has been bestowed a gift to excel in different fields. Everyone has his or her own discernible characteristics that enable him or her to take on tasks. However, it was believed that people with high musical aptitude possess low academic aptitude. Nevertheless, in reality, there is no clear correlation between musical inclination and affinity and the academic performance or ability of a person (Gordon 22). Recently, there has been a media fuss questioning if the involvement in music makes a person smarter. There is a significant query of whether there is a â€Å"Mozart effect† if a person is involved in music. Does music enhance a person’s cognitive capacity? There are various studies reporting that music increases learning capability, while other research conducted shows otherwise. Hence, this only shows the limitations and the discrepancy in studying the impact of music on cognitive ability (Crowe 143). The researches conducted regarding the relationship of music and cognitive skills fall under music cognition. This particular field of study involves examination of the different aspects of cognition, including how music is processed by its listeners. It seeks to understand the underlying processes over the standard practices of analyzing, composing, and listening to music. Music has a significant impact on the brain processes. Learning is a complex process that cannot be reduced to a simple human process or experience. In learning, the development of a particular ability will enhance the abilities of a person (Crowe 143). There are really no sufficient analyses on the cognitive effects of long-term exposure to music and passive listening of music on intelligence. The most celebrated short-term effect of music on the increase in intelligence was the interpretation of the 1993 Mozart Effect study. Researchers claimed that 10 minutes exposure to compositions of Wolfgang Amadeus Mozart could increase general IQ scores by 8 points (Brown and Volgsten 137). However, there are claims that the study lacks sufficient evidence that exposure to Mozart songs actually render the improvements on the cognitive functioning of an individual. An interesting article that was written by the proponents of the studies on Mozart effects states that there are other types of music which render similar effects, such as folk music, minimalist music, and other types of music that cause relaxation. They also compared the tests of their participants and saw no particular difference on the results on the tests which required remembering numbers and general tests of intelligence. Yet, the Mozart effect manifested in tests which required recognizing visual patterns and mentally rotating objects. The researchers, therefore, concluded that the exposure to Mozarts composition only affects the person’s spatial-reasoning abilities (Miche 16). Mozart songs may result in improvement for its omnificent and innovative schema. These songs activate the part of the brain which controls our spatial-reasoning tasks. Thus, this suggests that the persons involved may feel so relaxed and in a good mood, which allows them to perform the reasoning tasks better (Nairne 346). Furthermore, listening to Stephen King’s stories could also render Mozart effect, for the listeners find it enjoyable and entertaining. It relaxes them and enhances their spatial-reasoning skills. On the other hand, a study was conducted exposing participants to slow and sad selection of classical music, and significant findings failed to produce the Mozart effect. It greatly suggests that it is indeed the setting of the mood and arousal that are responsible for the improvements of the spatial-reasoning abilities of people (Nairne 346). The numerous studies mentioned earlier in the text only shows how psychological findings could be inaccurate and misused by the popular media. Although the various studies present valid findings, the improvements on the people’s abilities attributed to music were relatively minute and merely focused on a particular part of brain functioning. There are no stipulated evidences that suggest listening to Mozart or Stephen King produce lasting increase on the general intelligence. However, there may be ephemeral effects on the level of intelligence of a person. For instance, consuming anything that will make a person feel good and light would render the same improvements discussed by the researchers of Mozart effect. Thus, relaxing music makes one feel better about performing tasks, but it does not make hi or her smarter in any way (Nairne 346). Conclusion Music plays a significant role in everyone’s life. It is a tool for expressing our ideas and messages through the lyrics, melody, and rhythm of a song. It is an extension of our personality. We manifest ourselves—the kind of people we are—through the genre of music we listen to. Music inclination and intelligence have no significant correlation. There is a celebrated study which created hype in the media that exposure to Mozart’s composition have a significant increase on the general intelligence of a person. The Mozart effect is a study conducted which concluded that exposure to his music activates the brain functioning which controls the spatial-reasoning abilities. Another study conducted suggests that using slow and sad classical compositions to increase cognitive capacity. However, these types of music failed to render similar effects as the impact of Mozart’s songs. It therefore concludes that anything that makes you feel good and relaxed can make you perform a task better. Works Cited Brown, Steven and Ulrik Volgsten. Music and Manipulation: On the Social Uses and Social Control of Music. New York: Berghahn Books, Inc. , 2006. Crowe, Barbara J. Music and Soulmaking: Toward a New Theory of Music Therapy. Maryland: Scarecrow Press, Inc. , 2004. Gordon, Edwin E. A Music Learning Theory for Newborn and Young Children. Chicago, IL: GIA Publications, Inc. , 2003.