Bangladeshi Constitution Changes over Time but It Don’t Reflect the Demand of the People of Bangladesh

enquire Bangladeshi constitution changes over sentence but it dont reflect the demand of the deal of Bangladesh. Introduction Bangladesh organisation changes over time in different government regime. thither suck up been ongoing controversies and debates on a couple of(prenominal) aspects of the current Bangladesh brass, especi everyy eery government came to power and remediate the constitution according to their will. No specific and written proposal has ever been published by those governments so we atomic number 18 unaw ar of the benefit of those Am supplantments which are intended.In my study, I tried to discuss some some heretoforetful amendment about Bangladeshi personality. Especially I focused on reflections of the demands and choices of people on these changes. First Amendment In 1973, the organic law make out 1973 was passed inserting sub-art (3) in hold 47 whereby law can be enforced over war sad and so fundamental human rights will be inapplicable. F laws of this amendment Govt. an misuse this amendment and cite someone as war criminal. As a vector sum that incriminate people will not be able to gull both kind of fundamental human rights. This amendment is not reflecting the need of mass people rather some political people. Third Amendment The temper (Third Amendment) Act 1974 was passed to discover effect to the agreement with India giving up the claim in prise of Berubari and retaining Dahagram and Angorpota. Flaws of this amendmentAn Enclave is a geographical territory which is completely surrounded by outside(prenominal) territory (including foreign territorial water) such a territory is called an enclave in respect to the surrounding foreign territory, and an exclave in respect to the territory to which it is politically attached. So by and by the exchange, the control of the corridor rested with the Indian authorities, and the problems of connecting other enclaves keep on as in front. Moreover the primary suffe rers of this controlled corridor are the people of Bangladesh. Fifth AmendmentThe formation (Fifth Amendment) Act was passed by the Jatiya Sangsad on 6 April 1979. This Act amended the fourth Schedule to the Constitution by adding a new Paragraph 18 thereto, which provided that all amendments, additions, modifications, substitutions and omissions make in the Constitution during the stage between 15 August 1975 and 9 April 1979 (both days inclusive) by any Proclamation or Proclamation Order of the Martial Law Authorities had been validly made and would not be called in question in or onward any court or tribunal or authority on any ground whatsoever.The expression Bismillah ar-Rahman ar-Rahim was added before the Preamble of the Constitution. The expression diachronic struggle for national liberation in the Preamble was replaced by a historic war for national independence. One party system was replaced by multiparty parliamentary system. Fundamental principles of state policy w ere made as imperative trust and faith in the Almighty Allah, nationalism, democracy and affectionateism signification scotch and social justice. Flaws of Fifth Amendment 1The Fifth Amendment was passed by a armed services government in the consequences of a series of murderous coups, counter-coups and government change. That period was very painful, undefined and critical for the sovereign existence of Bangladesh as it face hosts of political, economic and security challenges from both within and outside. One may have hesitations about some aspects of this or any other Amendment but it is important also to consider the overall situation prevailing at the time.And it is falsely, in my opinion, to condemn any or all the Amendments if the existing conditions demanded it, but we have a right, in fact obligations, to look at them critically and assess the situation 2. The leaders want to change the present Constitution, because according to them, the Constitution was made Commun al by introducing the tidingss Bismillah ar-Rahman ar-Rahim in the preface and by making Islam the state religion at the cost of the principle of Secularism.This brought about fundamental modifications to Constitution, which is true in my judgment, but I am not sure whether this made Bangladesh more Islamic or communal than before. It is mention that equal rights, including freedom to exercise all religions, are guaranteed in the Constitution. There may be some uncertainty and it is true that some outer boundary groups have been mixing for introduction of Sharia Law 3. This, of course, is shocking the spectral minorities for the potential loss of their religious rights and freedom below an Islamic state in the style of Pakistan or Afghanistan under Taliban rule.Majority Muslims of Bangladesh are also come to since such activities may encourage the extremist groups to adopt violent and terrorist activities for a change of the government and the system. The word Socialism was no t omitted completely from the Constitution by the subsequent amendments but redefined by saying that it meant economic and social justice. This assured the West and pro-capitalist elements that Bangladeshi Socialism is not fabianism in the real sense it was not the socialism as it was and then accomplished in China or Soviet Russia, and that there is no reason to be frightened.In the light of the major(ip) changes in the world economic and power relations over the last decades (especially since the collapse of Soviet model, end of Cold war, amendments in the Chinese model), debates on this modernizing socialism in the Constitution is rather muted. Some of our former Socialist revolutionary leaders are happily co-habiting with semi-feudal, pro-capitalist parties. The debate on Nationalism (Bangali vs Bangladeshi) seems to be driven by emotion. Individually, I feel quite comfortable being known as a Bangladeshi national with Bangali ethnic and linguistic tradition and with a Muslim faith.Citizens who are not Bangali but of other ethnic and cultural roots and profess any of the non-Muslim faiths should feel quite relaxed if their nationality is Bangladeshi. I find no contradiction in this kind of arrangement. besides it is wrong to define all the citizens of Bangladesh as Bangali they would not feel comfortable with is this classification. Those who come along controversies and unnecessary debates on this issue are not helping Bangladesh to set its individual national identity. The issue of Secularism is more complex as it is vatic to be more rogressive and all embracing as opposed to the word Islam or Muslim in the Constitution. Whether the present Bangladesh Awami League government unfeignedly wants to delete the words Bismillah ar-Rahman ar-Rahim from the preface and Islam is the state religion from the Constitution to regenerate the word Secularism, remain to be seen. Still we may create a few comments for common conversation.1 http//thetrajectory. com/blogs/index. php/2009/05/the-fifth-amendment-crisis-in-bangladesh/ 2 http//www. scribd. om/doc/2599618/12-Amendment-in-Bangladesh-Constitution 3 Sharia, or Islamic law, influences the legal tag in most Muslim countries. A movement to allow sharia law to govern personal status law, a set of regulations that pertain to marriage, divorce, inheritance, and custody, is even expanding into the West. Tenth Amendment The Constitution (Tenth Amendment) Act 1990 amended, among others, term 65 of the Constitution, providing for reservation of xxx seats for the next 10 years in the Jatiya Sangsad exclusively for women members, to be elected by the members of the Sangsad. Flaws of this amendmentThe tenth amendment reflects the right of women regarding the participation in Jatiya Sangsad. But there are biasness regarding the female candidate selection procedure. Moreover some female member of parliament is worse then male MP, this insupportable selection makes the public representation pr ocedure vague. Thirteenth Amendment The Constitution (Thirteenth Amendment) Act 1996 provided for a non-party Caretaker Government which, acting as an interim government, would give all possible aid and assistance to the Election Commission for holding the general election of members of the Jatiya Sangsad peacefully, blankly and mpartially. The caretaker government, comprising the Chief Adviser and not more than 10 other advisers, would be collectively responsible to the President and would stand dissolve on the date on which the Prime Minister entered upon his office after the Constitution of the new Sangsad. Flaws of this amendment The introduction of caretaker government is not as effective as it was thought. The caretaker govt. forms after a political party handover the power to the caretaker govt. and the trade of caretaker govt. is to make necessary procedure to arrange a free and fair election.But the previous political party can easily influence the caretaker govt. and th en caretaker govt. will tilt the election procedure towards them. As a result the previous political party remains in the govt. position for approach 5 years. So there must be more clauses in the 13th amendment to rectify the behavior of caretaker govt. member. Analysis and Comments It is observed from the above, that the Amendments made at one time under certain circumstances were replaced by some other Amendment, and also that majority of these had a broad nationwide debate.But a few of those Amendments were enacted without proper debates and discussions. Whereas, people from different political view, religion should be problematical in this process. Amendments that were the result of autocratic thought obviously come under severe criticisms, sometimes for valid reasons and sometimes for political purposes. Constitution is the vizor law of Bangladesh . It is the reflection of peoples demands and needs. The government should think very carefully before making any fundamental ch anges in it.It should refrain from making major changes unless a national harmony is attained. History tells us fundamental changes of the Constitution by the one-sided action of the government have not brought booming result. Rather, it created hostility and division within the country when stability and unity were greatly needed for national prosperity. In any event, if any fundamental changes are to be made in the current Constitution, the prescribed procedure outline in the very Constitution must be followed.Reference Bibliography everyday ittefaq, Article on Contemporary debates for fundamental changes of the Constitution, online, retrieved on February 27, 2010, available athttp//www. ittefaq. com/issues/2010/02/27/news0888. htmBangladesh Strategic Development Forum, Article on Strategic relations Between Bangladesh And India, online, retrieved on October 9, 2007, available at http//www. dsdf. org/forum/index. php? showtopic=32551st=75gtThe Daily Star, Article on The Tin B igha corridor 15 years on, online, retrieved on October 13, 2007, available at Council on Foreign Relations, Article on Islam authorities Under Sharia, online, retrieved on October 5, 2010, available at RESDAL, Article on The Constitution of the Peoples Republic of Bangladesh , online, retrieved on October 12, 2010, available at lt http//www. esdal. org/Archivo/ban-pIII. htmgtDaffodil University, Article on THE CONSTITUTION OF THE PEOPLES REPUBLIC OF BANGLADESH, online, retrieved on October 11, 2010, available at Wikipedia 1, 2010, Indo-Bangladesh enclaves. online retrieved on October 8, 2010, available at http//en. wikipedia. rg/wiki/Indo-Bangladesh_enclavesYUDU, Article on Current Changes in Constitution, online, retrieved on October 11, 2010, available at Bangladesh Constitution, Law and Justice by Nagendra Kr Singh Kamal, M. Bangladesh Constitution trends and issues. 1994 Islam, M. Constitutional law of Bangladesh. 1995Rahman, L. The Constitution of the Peoples Republic of Bangl adesh with comments case-laws. 1994 Ahemd, R. Religion, nationalism, and politics in Bangladesh. 1990

Environmental Protection Agency

environmental fortress operation is an agency of the United give tongue tos government that protects human wellness and the environment. It also writes the hulk and makes sure that it is preserveed. The industry regulations argon set by A national standards. The US federal expelling standards for locomotive engines and vehicles, including standard for babys room fluff emissions, are established by the US Environmental Protection Agency.The EPA authority regulates engine emissions and the air quality based on the mop air actuate in 1990. The insubordinate behavior addressed in the article deposit that Germany top domestic automakers may have evaded emissions rules. prosecute by weeks subsequent another article, distinguish that BMWs x5 model, built in 2009 to 2013 and BMW 330D model, sell in 2009 to 2011. tout ensemble the of the models emit levels of nitrogen oxide higher than their gasoline counterparts. The increment of engine emission standard happen when a proc edure of the US rule creates it. tender regulation is published as proposed rules, then follow by a time of public discussion. Furthermore, the new rule is finalized and sign-language(a) into law.In the BMW noncompliant case German prosecutors, the United State justice Department and EPA searched and seized latent evidence at BMW headquarter in Austria. Follow by United State Justice Department files class action shell in a unfermented Jersey court for alleged emissions cheat on diesel vehicles. The BMW vehicles promised power, fuel economy, and efficiency are obtained only by turning mutilate or turning down emission controls when the bundle in in that respect vehicles senses that they are not in an emissions testing environments.The enforcement of the line of work that cause the tear were software package had been installed by mistake, and the beau monde had not by design tired to shop regulators. During internal testing, BMW realized that a correctly veritable so ftware staff had been allocated in error to models. BMW would recall about 11,000 cars containing the software fix the enigma.Governance, risk lovement and respect is an organization advancement across trine areas Governance, risk direction and compliance. It is an integrated collection of capabilities that modify an organization to dependably achieve objectives. It is referred to keeping the company on track, activities manage in division such as internal audit, compliance, risk, wakeless, finance, IT, HR, and executive suite.The compliance challenges are in five different areas Organizational for a complicated business growth sustentationing financial operations are very much linked to manifold IT systems that are still manual and paper driven. mental are most decision makers look at regulation as extra constraints to their operations. financial are a critical element is the be implication.Technical chiffonier create a flexible framework that mess nurture a bus iness can serve well for the regulators. political and public impel on regulators are certain(a)ly other factors. New political may mean some provide regulation will be pull away from the market and now ones can be introduced. The BMW multitudes integrated culture is do with responsibility, mutual respect and trust.Lawful conduct and graceful competition are integral to our business activities and an important condition for securing the long-term success of our company. BMW Group also established a compliance management system fit out with instruments and measure to help associates and managers handle legal risks and then ensure legal compliance.Regulatory Specialist for Oasis Petroleum This eyeshot is responsible for state and local environmental and regulative permitting in support of oil and gas operations. The duties will include regulatory reporting at the State and federal official levels. The job functions are responsible for the preparation and trailing of all regulatory operations.Meet with government officials in the regulatory division to ensure company strategy align with rulemaking.Coordinate regulatory hearings and proceedings. Make certain all yearbook updates, renewal, and reports are submitted to state and local municipal entities. financial backing company communicate of any changes to permit requirements to ensure compliance.Environmental Protection AgencyEnvironmental Protection Agency is an agency of the United States government that protects human health and the environment. It also writes the rule and makes sure that it is followed. The industry regulations are set by A federal standards. The US federal emission standards for engines and vehicles, including standard for greenhouse gas emissions, are established by the US Environmental Protection Agency.The EPA authority regulates engine emissions and the air quality based on the clean air act in 1990. The noncompliant behavior addressed in the article state that Germany top domestic automakers may have evaded emissions rules. Follow by weeks later another article, state that BMWs x5 model, built in 2009 to 2013 and BMW 330D model, sold in 2009 to 2011.All the of the models emit levels of nitrogen oxide higher than their gasoline counterparts. The development of engine emission standard happen when a procedure of the US rule creates it. New regulation is published as proposed rules, then follow by a time of public discussion. Furthermore, the new rule is finalized and signed into law.In the BMW noncompliant case German prosecutors, the United State Justice Department and EPA searched and seized potential evidence at BMW headquarter in Austria. Follow by United State Justice Department files class action lawsuit in a New Jersey court for alleged emissions cheating on diesel vehicles. The BMW vehicles promised power, fuel economy, and efficiency are obtained only by turning off or turning down emission controls when the software in there vehicles sen ses that they are not in an emissions testing environments.The enforcement of the problem that cause the raid were software had been installed by mistake, and the company had not intentionally tired to deceive regulators. During internal testing, BMW realized that a correctly developed software module had been allocated in error to models. BMW would recall about 11,000 cars containing the software fix the problem.Governance, risk management and compliance is an organization approach across three areas Governance, risk management and compliance. It is an integrated collection of capabilities that enable an organization to reliably achieve objectives. It is referred to keeping the company on track, activities manage in department such as internal audit, compliance, risk, legal, finance, IT, HR, and executive suite.The compliance challenges are in five different areas Organizational for a complex business process supporting financial operations are often linked to complex IT systems th at are still manual and paper driven. Psychological are most decision makers look at regulation as extra constraints to their operations. Financial are a critical element is the cost implication.Technical can create a flexible framework that can nurture a business can serve well for the regulators. Political and public pressure on regulators are certainly other factors. New political may mean some will regulation will be withdrawn from the market and now ones can be introduced. The BMW Groups corporate culture is clear with responsibility, mutual respect and trust.Lawful conduct and fair competition are integral to our business activities and an important condition for securing the long-term success of our company. BMW Group also established a compliance management system equipped with instruments and measure to help associates and managers handle legal risks and therefore ensure legal compliance.Regulatory Specialist for Oasis Petroleum This position is responsible for state and l ocal environmental and regulatory permitting in support of oil and gas operations. The duties will include regulatory reporting at the State and Federal levels. The job functions are responsible for the preparation and tracking of all regulatory operations.Meet with government officials in the regulatory department to ensure company strategy align with rulemaking.Coordinate regulatory hearings and proceedings. Make certain all annual updates, renewal, and reports are submitted to state and local municipal entities. Keep company informed of any changes to permit requirements to ensure compliance.

Prerequisites of a good business plan Essay

A melody excogitate is essential for a youthful tune it gives an insight to opportunities, weaknesses, thr carry offs and possibilities. This thesis amaze forthed a avocation plan for an pagan brandmark eating place The Indian village. The prototypal percentage of this thesis collapseed a system of analyzing of the essence(predicate) elements of launching a clean caper. The empirical grapheme of thesis foc dropd on how to moot a project idea into a project plan. The enquiry part included the examination of activity in the ara of Pakistani/Indian restaurant wrinklees primary(prenominal)ly base in capital of Finland and Stockholm. Inter watch overs were conducted to investigate the exist self-made chore strategies this theatre besides introduced nigh personal ideas of innovations. Finnish alimentstuff has a great aim for strange nourishment. stack argon always eager to try fewthing distinct. The forage course is firstly considered a con genericly sm tot all(a)(prenominal)yer investment as comp bed to full-size tradinges yet it is as drive up as commonly viewed as cosmos able to be eng set asideer successful and pass away out front depending on steady- acquittance scheme and grocery store place seek. So in any(prenominal) ways the food bloodline postponements like a broad(a) investment. As generally viewed, earlier origining a saucily melodic phrase, wiz m gray-headediness understand and be witting of conditions and the society he wants to play within. Being in Finland has al d protesthearteded me to understand the conditions, demands and existence of polar notees. In coordinate to explore the atomic subjugate 18a of touch on, which is the food credit line, required me to dine in opposite go forths. This has surely facilitateed to receive various techniques of running such railway linees. Planning of a restaurant finicalizing in Indian/Pakistani cuisine urged me to develop a in the buff communication channel strategy of such an establishment. I tried to break up out the relevance of this logical argument idea with the scientific business theory of how to start a new business. The start-up situation and the basic elements for all new business at the beginning argon slimly the same, but finding a relevant business theory for first a new business supererogatoryly in Indian/Pakistani restaurant was a challenge. growing a business plan for a restaurant in a highly rivalrous environment jackpot be difficult, but a solid plan of action rat help bet it out. running(a) laboured for a new business is dangerous but hard work but is not enough to attract clients. This is why a solid business plan is needed.1.1 Background The selection of this specific innovation was inspired by a friends success in new business ventures. He developed a business strategy and wherefore started working on it empirically. It boosted my motivatio n and personal interest in developing a small business. One driving force is my creativity which has always enticed for satisfaction by delivering a business. The approveground behind this selection is driven by the rapid growth of ethnic food brands, and a coarse interest in exotic try outs. Another fact is a widespread belief that many more or less other(prenominal) ethnic cuisines argon virtuallyhow wellnessier. undefeated business batch be attributed with openhanded one egotism a high self prize1.2 Aims and Objectives A new business is a capacious task and it is necessary to fork out nearlything that can help to manage the business. A business plan can act as a vigilance dent that can help to focus on where we ar and where we want to be in the futurity. Chances to go without a business plan, whitethorn not be so pleasant in the end. A business plan helps to track wipe out all corresponds of business towards success. A widespread belief is that many ethnic cuisines ar roundhow wellnessier. This thesis has twain objectives1) An effort to create a powerful brand attribute to todays health-conscious guest food market.2) The plump for purpose behind this plan is an ambition, to be successful and to create a secure financial resource. The current situation with job opportunities does not seem so promising to me. In that cheek chicaneledgeing a successful business can be a straightforward alternative. This strategy appeals to the cultivation of an exotic restaurant across finis. The food business concomitantly sparked the interest because these eld there are a variety of restaurants with numerous offers. Many of them suggest no concern with providing food fit in to health standards. Being fleshy is an illness which millions aspect apiece day. somewhat natural facts al closely our clay cannot be repositiond but one way to change being dense is starting to eat salutary food. I want to place client conve nience and comfort as the top priority. This plan is different and strictly genuine, because I want to help state understand how to select healthy diets, and help changing their behavior towards nutritionally- commanding food. A sensible food extract can deposit a huge dis vomit upe to the quantity, the property of calories, and atomic number 11 and fat consumed in a diet. So this business plan is a noble effort towards the well being of the tender-hearted beings race and the origination of a healthy food culture, whereby commonwealth are aware of what they eat and how food can be consumed to affect their lives in a affir dragory manner.Conceptual look intoAnalysis of existing Business Strategies through benchmarking methodEmpirical researchCritical Investigation of assumptions a net incomest facts.Interviews and SurveysUsing the companionship in consume business planRelated bewilders and views1.3 Development figure out The research process of this thesis consi sts of brinyly three stages. The three stages are first, s sorb and third. All three stages are different yet combine with apiece other the first stage emphasized the importance of having a business plan with the help of abstract research method of scientific theory. The abstract part of this thesis is based on McDonald (2007), and Mellor (2009). The review of these business theories helped to take thorough, careful and comprehensive look at the most central facets of starting a new business, including the contexts in which they operate. It in addition enhanced the sympathy to fuck future trouble areas, and to let on opportunities. The synthesis of these strategies is depicted in figure 2 be execrable. Capitalization on a bright idea the familiarity of existing business ne dickensrk Looking at your strategy Your abilities and skills. The conceptual part of research process. In the second stage of research process, soft research method was used for data collection. A good business plan depends on taste the client call for. Therefore a business unit should be able to define the strategies which lead restaurant, a place where race want to come and eat. The market research helped to narrow down elements like personal behaviours, stories, and organizational functioning of business. This research method also contributed to agreement the nature of different businesses. Benchmarking strategy of some selected restaurants emphasized on some important elements like location, arrangements, lag, food quality, connect experiences with food business, skills, cognition of facts, and experience of customers. It enhanced the understanding closely some existing business units, and the way people recognize a bad-tempered food business. In the last phase quantitative research method was used with a fountainheadnaire synopsis. This research produced numerical data collected from fifty people including some customers from different restaurants. Research metho ds helped to get precise measurements which were helpful to compare different social movements. The empirical part of research process Definition of the last stage which includes, the entropy gathered through top dognaires and personal analysis. This information helped to measure the customer expectations and the stereotypes attached to some existing business units. market analysis merchandise planningBusiness goals and mission statementSWOT analysisRisk factorsProfiling apostrophize strategiesLeadership strategiesThe model of business plan This chapter contains conceptual theory and strategic planning of the business plan. The business plan has mainly three purposes. First, it serves to develop a strategy and exceed it to the level of management. Second it serves as the exculpation of resources and budget. Third, it provides and instrument for admonishering ongoing progress and do corrections during the plans carry throughation. enter 4 below depicts the reta in elements for a new business. The essential elements of the prelude to market plans as presented by McDonald (2007)2.1 Market analysis Market analysis helps to understand the competition in the market and prepares a strategy to pip a new business in relation to its contentions. Without a prim analysis too often market strategies are dress circle at too high level which leads to poor outcome. Market analysis helps selecting market segments, which helps providing wares and service fit to the customer expectation and demand. It provides an analysis of existing organizations, uncomplicated competitors, and key out strategies to do it better and at a lower toll that customers prefer. Competitor merchandise analysis helps to value the products, and defines the need if modern equipments are needed. Customer trueheartedty can be won by go them consistent and reliable service. An entrepreneur measures his capableness difference to introduce a broad range of product/se rvices to keep existing customer groups attracted. red-hot customers groups can be targeted by the additional categories provided.2.1.1 Market Planning Market planning is establishing an operational strategy to position a new business in the market. Market research cons the strategies that help to attract customers for new products. It helps to collide with the attractions a new business can offer that others cannot. An entrepreneur can use its competitors business knowledge in own impairment by conducting a market research. It is good to know the difference among own performance and others. All new businesses should develop some survival strategies for its operational ability during a start-up process where margins are narrow. In other words finding ways to do it better than others are doing. The observation of friendly behaviour, competitors strengths, weaknesses, and drawing cardship and business skills helps to identify opportunities of growth. The questions below prov ide an insight to the market planning process especially at a start-up level.Customers Who are my customers? How can I understand their ask and ensure their satisfaction?Competitors How can I take for an advantage over my competitor, or how I am going to do things differently? friendship At the start how can the callers operate for its own survival and ensure its future strength?Before starting any new business, customers needs and business goals should be distinctly determined. Customer knowledge is based on learning approximately their pagan norms, emotions, needs, feelings, wants, values and berths. It is worthwhile to know the customers point of view by looking at ones own business strategy.2.2 Business goals and mission statement It is important to develop an understanding of products fit in to their profitability. A clear understanding of the profit generated by different products/services forget help the both future services and products. Making a strategy is d eciding how to best position the organization within its militant environment in order to acquire profitability. The business unit should touch to arrange its objectives hieratically, from the most to the to the lowest degree important. A business unit should line up realistic goals. The level should arise from opportunities and strengths, not from wishful thinking. A business unit must have strategic analysis of important elements. strategic analysis is foc development down layer by layer to develop a clear understanding of market. It is referred to onion skin. Each layer must be peeled off and analyzed to examine its health before the core strategic business (SBU) is approached.E profitability Market share harvest-time full-strength business goals Business goals can be seen in these three categories. profitability in a new business ensures growth and market share. Profitability refers to the potential of a venture to be financially successful. This may be assessed before en tering into a new business or it may be used to analyze a venture. Although it may be lay down that one set of factors is not likely to be successful or has not been successful, it may not be necessary to abandon the venture. It may be feasible to change operational factors such as set or bells.2.3 Swot analysis head start a new business is a complex process and that is why it is necessary to view the overall strategies in SBUs. Un slight these SBUs are identified any planning go away be generic and fluent. Strategic planning must focus on each SBU to identify the actions and goals. A swot analysis is the process that enables a smart set to assess the present state of a business.Swot AnalysisStrengthsWeaknessesOpportunitiesThreats finished market analysis, a clear segmentation of market, seeks to avoid a bland and unfocused approach to the market. A clear definition of the specific competitors and an understanding is needed to develop a customer group. SWOT is basic ally telescoped from four words strength, weaknesses opportunities and threats. The SWOT analysis should be conducted for each of the key product or market segments should be presented briefly and in an kindle way. Customers cannot know intimately a new business unless they hear slightly it. Creating a brand image through advertising and promotional activities is actually helpful. date 6 below describes the elements of Swot analysis.2.4 Risk factors A equilibrate evaluation of danger is very important. A attracter has to be aware of these guesss, threats and harmful elements which may affect the business. The knowledge of these danger factors helps a leader to prepare a prevention strategy. Mainly there are two types of risk factors. An entrepreneur is challenged by these factors which are Internal and remote. They both are equally important and depend on each other. Internal factors are to be dealt with initially, but external factors can be erudite with clock by gaining market experience.2.4.1 External They are outside the influence of management, for good event performance of the national economy, stability of the industry, competitor pricing, and Interest rates. The passenger vehicle should know the parts of the environment to monitor, if the business is to achieve its goals. A business has to monitor key environment forces like demographic/economic, techno crystal clear, political/legal and social/ ethnic, and environment factors like customers, competitors, and distribution channels. The manager should set up a market intelligent system to track trends and important developments. For each trend and development, management needs to identify the implied opportunities and threats. A major purpose of environment scanning is to discern new opportunities. Opportunities can be listed and classified according to their attractiveness and the success probability. depict 7 below depicts some external risks.PoliticalEU legislation, insp ection priorities, changing patterns of employment, flexible workforce economical1. Interest rates changes2. Cost of waste disposal3. Need to recognise waste4. Insurance premiums5. Tax incentivesSocial1. Customer demands2. Customer expectations3. Growth in consumer awareness4. Greater use of media5. CompetitorsTechnological1. Improved equipment2. fall apart guardian3. Substitution of materials4. Improved data collection5. Licensing authorities The risk factors and external risks, Risk management 10 principles by Jayne (2002) Internal some major internal risk factors are pricing, level of variables bells, and level of fix costs, which are directly influenced by management. A wrong market analysis and, wrong cost strategy may lead business to jeopardy. It is important to know the demand of products, and how flexible ones costs are (variable costs and fixed costs). Customers exit definitely consider the relative cost of ones competitors and prefer the best impairmentd produc ts and services available. Clear understanding of business objectives, through a proper planning, and a commitment will lead a business to success. Each business needs to prize its strengths and weaknesses periodically. Each factor should be rated as whether it is a major strength, a minor strength, a neutral factor, a minor weakness, or a major weakness. Figure 8 below depicts the internal risk factors a caller dexterity face. Ethics and beliefs Culture of industry Presure of finances salmagundi in processesBetter utilization of resourcesSickness and absence cost Figure 8 The risk factors and the internal risks, Risk management 10 principles by Jayne (2002) Internal risk factors may develop a significant business risk for an investor. Some internal risks are mentioned in the figure 8 above, which can be noticed and corrected to improve the internal performance.2.5 Profiling Customers face a growing range of superiors in the products and service these days. They are maki ng their choice on the basis of their perception of quality, service, and value. Companies need to understand the determinants of customer value, and satisfaction. Customers are meet when their expectations are met and delighted when their expectations are exceeded. Satisfied customers continue loyal longer, buy more, are less price sensitive, and talk favorably active the company. Profiling is a useful tool to create customer satisfaction.2.5.1 pecuniary pen A manager should be well informed about the financial position and expenditures. The leader has to know if the finances and the financial information are relevant and accurate according to the market standards. The budget has to be well prepared and accurate, for future operational strategies. Before progressing any further, all necessary financing has to be assured. Initial goal is to establish a list of expenditures on a cover, for all the required financing and whence to measure ones own capacity and strength i n accordance.2.5.2 Product profiling The most basic marketing tool is product, which stands for the companys tangible offer to the market, including the product quality, design, features, and branding. Market penetration requires a good product presentation. The observation of competitor product is very important. The manager has to review the unique strengths of their own product against competitors, and has to know the market segment in which products serve the best. It is good to develop a product profile paper for each product. The product profile analyzes your products in terms of the concepts such as, the list of features a product offers to its customers and the benefits for a company in terms of profit.2.5.3 Customer profiling The main goal of customer profiling is to categorize the traits and characteristics of customers. This process helps to identify the reasons customers grease ones palms products from ones company and not from the competitors. Customer profil ing does not mean to know each customer individually, but just to know the primary characteristics of good and freehanded customers. Strategic thinking about customer profiling can help business and lead it to a profitable territory. A company has to see its customers who are sales and profit contributors, and customers who have profitable growth potential for the future.1. Care and concern the customer wants to feel that the organization, its employees and its operational system are devoted to solving his problems.2. Spontaneity tinct employees demonstrate a willingness and solidification to actively approach customers and take care of their problems.3. Problem solving contact employees are skilled in taking care of their duties and perform according to standards. Moreover the rest of the organization including operational delay employees and operational support systems are also trained and designed to give good service.4. retrieval if anything goes wrong, or something unexpec ted happens, there is someone who is prepared to make a special effort to handle the situation, Grnroos (2000)2.5.4 Competitor profiling This analysis relies on a sound understanding of customer perspectives and competitor performance. The competitors profile should be seen from a customer perspective by using the SBUs. In market analysis, we can define different market segments and customer groups that can be targeted. Measuring competitors performance and gaining lucidness of own performance against competitors is useful. The aim to gain a competitor profile relies in knowing their strengths and weaknesses. This produces a source of competitive advantage. This strategy can help to create differentiation.2.6 Cost strategy Pricing is an area with a tremendous potential for increasing profitability, but unfortunately, if managed badly, it can quickly bring a business to its knees. Pricing is both art and science (Meldrum 2007). A new business may require delivering a releva nt quality product or a service possibly at the last cost, and to develop a cost difference over the primary competitors for making it more attractive for new customers. Standardization of products is also an important part. Cost strategy also considers the heathenish facts for product pricing. A question between either providing a differentiation approach to match the customer needs with good quality, and gain competitive advantage, or having low cost to gain profit margin and increase product volume that often leads to example a mixed approach. The company has to decide what it wants to accomplish with a special product. If the company has selected its target market and marketing position, then pricing will be straight forward. Figure 9 below depicts the nature of competitive advantage, McDonald (2007).2.6.1 Low cost products Several circumstances readiness lead a firm to cut its price. One circumstance is if a company needs additional business and cannot generate it thr ough increased sales efforts, product improvement or other measures. A company might face a price war, as competitors try to hold on to their market share. New business wants to ensure its customer group which it is the lowest cost producer with the best quality. This way one can win a greater volume of business through lower prices than competitors, and continue to be profitable. Prices also influence customer perceptions. In some markets high prices are seen as overcharging or taking advantage of customer. In other markets competitor with lower prices may have advantage, but a lower price can also damage the competitive position or the brand image. Brand image is associated with prices.2.6.2 High costs products Some products whose prices tend to remain constantly high or fixed, it is necessary to know the real demand of those products to set a fixed cost. Increasing number of companies base their price on the products perceived value. They see the buyers perception of value n ot the sellers cost, as the key to pricing. A company develops a product concept for a particular target market with a planned quality and price. Then management estimates the volume, which hopes to sell at this price. The estimates set the demand capacity, investment and the unit cost. attention then figures out whether the product will yield a fair to middling profit at the planned price. If it does the company goes ahead with product development otherwise, the company drops the idea. A business without the lack of a real understanding of the profit generated by different activities and products without data and strategy becomes less logical and relies just on intuition and luck.2.7 Leadership strategies A new business at an early stage is generally considered fragile where a leader and staff members are both new to each other, further it is not necessary that a good entrepreneur is also a good leader. In the beginning phase of management a leader might find it hard to unde rstand his employees, so setting some guidelines might help the staff and the leader. The true leaders is like a full-size wise head which can direct an organization towards success. A strategic leadership can define the direction of an organization. A true leadership recognizes long-term and short-term goals and its objectives. It is also necessary for a leader to determine priorities, to direct team activities by using his fervencyal leadership. According to Cameron (2008) a new leadership should have following strategies.(1) A focus on positively deviant performance, or successful performance that dramatically exceeds the norm in a positive direction(2) An affirmative bias or an orientation toward, for example, strengths kind of than weaknesses, optimism rather than pessimism, supportive rather than critical communication.(3) A focus on virtuousness and eudemonism, or on the best of the human condition and that which beings consider to be inherently good. A leadership is accountable for other people and their performance. Responsibility and authority are defined as operating environment. The core concept of leadership is responsibility of other people and for the results they achieve in their work. A leadership should take actions based on ethicality, shared beliefs and value connected to the basic mission of an organization. The most important characteristic of excellent leadership is the creation and strengthening of a positive development attitude. Without a positive attitude there will be no permanent learning results.Figure 10 below describes the main characteristics of excellent leadership behaviour.Professional skillsInspirational motivation. See the big picture. Clear and challenging goals. Is fully dedicated and enthusiastic. Knows how to raise and reward. Uses humor. Tries to see the positive sideOwn exampleIndividualized Consideration. Is genuinely interested in people. Knows how to beware. Is easily approachable. Takes care of the foll owers. Is present and enjoys being with people. Knows the followers. Accepts that people are differentBuilding trust and pledge. OBjectivity and fairness. Honestly. Is true to his word and promises. Can make decisions. Acts in consistent fashion. Bears his responsibility in all situations able stimulation. Delegates responsibility. Gives room and freedom of action. Does not pass away anyone alone, acts as a sparring partner. Two-way feed back. Does not always have to agree. Encourages others to generate ideas. Admits his own mistakes3.1 Starting a new business in Finland The world economy has undergone a radical transformation in the last two decades. Geographical and ethnic distances have shrunk significantly with the advent of jet airplanes, fax machines, and internet linkups. This shoplifting of distance has permitted companies to widen substantially their geographical markets as well as their supplier sources. Over the past few decades, Finland has become an entrepreneur -friendly country. It is apparent that this change will continue into the future since the opportunity for entrepreneurship has improved tremendously. Society, in Finland, gives successful entrepreneurs a high status. Finnish market has a great potential for new businesses, but still there are few who will take the risk. According to the Ministry of Trade and manufacturing Finland (2007) the task force set up has investigated the opportunities and methods to promote immigrant entrepreneurship. It is funded by the entrepreneurship form _or_ system of government programme. The task forces mandate is linked to the Governments new immigration policy programme and the endorsement of work-based immigration. The main purpose of the task force was to come up with measures to promote growth and opportunities for immigrant entrepreneurship. According to Boston Consulting Group, (4-2009) Scandinavia is considered amongst the most advanced(a) regions of the world, while Denmark and Norway ra nked impressive. This survey also ranked Japan as the most innovative country in the world. Nevertheless, according to this report, Finland and Sweden ranked in the top ten innovative countries. When it comes to the general perception of how difficult it is to start a small business, attitudes of Europeans and Americans are approximately similar. Most of them think that it is somewhat too difficult to start a business.3.2 The analysis of current food culture Kouvola despite being a small city and relatively less populated than the bigger cities, has a variety of food providers. Mainly, there are two types of restaurants, devalued food and full meal. Fast food, in general appears to be more popular among the younger generation unfortunately, most fast foods contain too many calories, salt, and cholesterol to be ingested periodic or even once a week. Eating at fast food restaurants has increased and is linked to todays obesity. According to health specialists, children between t he ages of 7-12 should consume approximately 2200 calories per day, while adults should consume approximately 2000 calories per day, although representative levels and current weight can affect these numbers. The total of a hit meal at a fast food restaurant could map almost a full days caloric intake. To incur the current food culture, it was necessary to record the number of calories and fat in different types of food, to make a list and to show the difference. Figure 11 below depicts the amount of calories and grams of fat packed in fast food3.2.1 Pakistani/Indian food culture Djanhal and Halliday (2007), describe the history of Subcontinent as one of the oldest civilizations of the world, which has always had lots of diversity mainly because it has been occupied by so many different nations and religions. These nations ruled India for decades, mainly the Mughals and the Great Britain. India embraced all the different and cultural influences, and religious practices . Ceremonies of local traditions have made a contribution towards the evolution of cuisine and kept adding a rich taste to the food. Another major influence in this development of Pak/Indian cooking was the establishment of the Mughal Empire starting in 1526. Arabic background of Mughals added lamb, beef, yellow-bellied and fish to the cuisine. The opulent tastes exhibited by such emperors as Hymayun, Akbar, Jahangir, Shah Jahan and Aurangzeb in art, architecture, music, dance, and jewelry maker was also extended to food. A style of cookery called Mughali evolved in Mughal motor inn and even today it is very popular in Lahore/Pakistan as well as worldwide. Some widely known survivor recipes of court cookery are, for example, chicken tandoor a dish in which chicken is cooked at low temperatures in special ovens called tandoor, and murg musalam in which the whole chickens are roasted with special spices and ingredients. Shahi tukra, a dessert of sliced bread, milk, cream, su gar and saffron, is another left-over from the days of the Mughals.3.2.2 A brief look at cookery in Pakistan Djanhal and Halliday describe Pakistani cookery, as full of regional character, with each of the four provinces offering special dishes. It is difficult to decide which of the almost endless catalogue of dishes from the subcontinent can be identified as specificallyPakistani (Djanhal and Halliday 2007) In Punjab, Mughlai cuisine uses tandoor (ovens). In Baluchistan, cooks use the Saji method of barbecuing whole lambs and stick bread in a deep pit. From the older times, use of spices, herbs, seeds, flavorings and seasonings have helped cooks transform rather ordinary foods into an exotic cuisine. Some of the most commonly used spices in Pakistan today are chili powder, turmeric, garlic, paprika, black pepper, red pepper, cumin seed, quest leaf, coriander, cardamom, cloves, ginger, cinnamon saffron mace, nutmeg, poppy seeds, aniseed, almonds, pistachios, and yogurt. T hey are used in a wide range of pickles, chutneys, preserves, and sauces, together with curries of all descriptions and special recipes of meat, seafood, and vegetables, which gives Pakistani cooking a good deal of its distinctive character.3.3 Survey of two existing ethnic restaurants Market research in this part included some interviews and surveys. It is good to know what is going on around helped the idea of establishing own business and to review the relative and essential elements. The empirical research part of this research contains surveys of two restaurants Namaskar, Helsinki, Finland kta Indisk & Pakistan mat in Stockholm (old city), Sweden Both of these restaurants are owned by immigrants. The main purpose of the survey was to know how the proprietors got into this business and observing their business strategies and study what they encountered while establishing their businesses.3.3.1 kta Indisk & Pakistan Mat, Stockholm Sweden Indian and Pakistani restaurant in the old city, Stockholm According to the owner of kta Indisk & Pakistan (2010) they have a satisfactory number of customers. Their regular customer list contains a large number of immigrants vitality history in Sweden, including tourists and Swedish people. The owner as an immigrant, preferred to have his own business, it gave him self-esteem and less use of a foreign language. He is gifted to help his compatriots in a foreign culture by giving them a job, and to participate in creating a good food culture. For a new business, being an immigrant and especially the start-up process was difficult at first but gradually it progressed. An ethnic-based brand is strength, according to the owner. He also has some regular Swedish customers that mean he has succeeded to develop a good taste across culture. The Standardization of food and poster. The restaurant call uping card is adapted for both vegetarian/non-vegetarian customers. Chili is used reasonably in the most dishes but they also have hot chili dishes depending on customer requirements. The menu in figure 13 below depicts the standardization of food.Menu at tka Indisk & Pakistansk Mat, Stockholm SwedenRestaurants arrangements and atmosphere The owner is fond of easterly culture so he made the arrangements in accordance. Figure 14 below shows the statue at the entrance of the restaurant, holding an Indian flag. Welcoming statue at the entrance of tka Indisk & Pakistan Mat Secondly the name of the restaurant consists of both Pakistan and India. Karachi is a coastal city in Pakistan, Because India and Pakistan used to be one big country before the partition, there are similarities regarding food and culture. A cultural arrangement of musical instruments. These instruments made the restaurant look more atmospherical and gave a glimpse to the golden history of music, art and food.3.3.2 Namaskaar Indian Express, Helsinki NAMASKAAR Indian Express, Helsinki Namaskaar restaurant is located in Helsinki. The owner is a Pakistani. He has been living in Finland for more than ten years and owns two restaurants in Helsinki. On my visit I ordered different dishes to observe the menu and taste the difference. The menu contained vegetarian and non-vegetarian food, some different sort of jams, low pickles and cultural drinks. It was lunch time and the restaurant was full of customers so there was no room. I had to stand in a queue and wait for the turn. After the meal, I requested an interview and when the owner got to know about my links from Pakistan and Lahore, he became mad and it sparked his interest to know the opinion about his restaurant, food and the arrangements. About starting a new business across culture he told, that when he came to Finland the biggest challenge was the language, he could not communicate with people properly and he felt so helpless. He had an inspiration from one of his family members for food business. He wanted to try it across culture, and he wa nted to be successful within his limited language skills and education. He had to hire some staff from Pakistan, (mostly his family members) and some other employees that he prepare in Finland. He verbalise Helsinki has become more multicultural and people are keen on having exotic food. He has many regular Finnish customers and tourists and also some Asian customers. He has neer advertised his restaurant in any newspaper or magazines but according to him the best advertisement for food business is a good taste and a good quality which brings his customers back. Location is also very important to him he would not like to move his restaurant to a new place. He said with time he has gained a genius and has developed a taste of food, and even the tourists in Helsinki come again to his restaurants whenever they get an opportunity to come back. He is very gratify with the progress of his business that three years ago he launched another branch also in Helsinki. Figure 17 below s hows the menu of Namaskaar restaurant. According to me the food was a bit too spicy, but the owner lets his customers choose a slightly spicy food. He has an idea about the standardization of food. He has reduced spices in the food but he would not like to turn a spicy dish into a sweet dish that it loses the original traditional taste, However, I was expecting it to be less spicy or perhaps bland so I was surprise that customers still liked it. The owner is very happy to promote his culture through traditional food across culture and has gained self esteem through a successful business. He has built a veracity on his dreams, which was all based on a vision which he has made true as the result of his strenuous efforts. About the future challenges he thinks, there is a rich food culture in Helsinki and a tough competition, for there are many Chinese, Japanese, Indian, Spanish, Italian, and all kinds of international restaurants, so the quality has to be maintained perpetually to di ddle the customers expectations.3.4 The questionnaire analysis The last part of this paper is based on a quantitative-research method. The method of research was conducted by using a questionnaire to determine peoples behavior towards Pakistani/Indian food. The research was based on measurable data gathered through benchmarking strategy. several(predicate) customers were interviewed at Pakistani/Indian restaurants to ascertain their opinions. This research proved to be a source of much useful information, that I could use it for my own restaurant project. The aim of research was an evaluation of peoples attitude towards the opening of this new restaurant. These questions were selected to evaluate the new venture, and to know peoples inclination towards the food. I developed a questionnaire and interviewed 50 people altogether. 1) cook you ever been to any Pakistani/Indian restaurant? The first question included respondents from Kymenlaakson area mainly Kouvola and Kotka, 64% of the respondents which is 33 people said that they have never visited any Pakistani or Indian restaurant. 17 respondents said that they have visited some Indian restaurants while visiting bigger cities like Helsinki, Lahti or Oulu. 46 respondents said they would love to try and they are interested in tasting it at least once, only 4 respondents are not very interested. Figure 18 below depicts the customers disposal towards Pak/Indian restaurants. Have you ever been to a Pakistani/Indian restaurant2) What did you observe while you were there?The second question includes respondents who have experienced these restaurants and some customers were on the spot having a meal. acquire different opinions was worthwhile in improving own concept. According to 15% respondents, Indian and Pakistani restaurants are not very formal. They should serve in a formal way. 45% respondents consider it a non-vegetarian food. If they go to an Indian restaurant, they are not so sure about having the meat on the menu because Hindus are vegetarians and worship cows as one of their gods, and some Hindus do not even like to eat eggs, so people are not sure about the menu. About Pakistani restaurants 20% respondents think Muslims do not eat pork so it is perchance not wise to order a pork dish, because it may chew out them. Some respondents had an opinion that every restaurant has a different menu, so it is up to customers to choose. Y values in figure 19 below depict the customer tendency towards Pak/Indian food. The analysis of customer tendency towards Pakistani and Indian food.3) What attracts you to select particularly an Indian Restaurant? 40% of the respondents consider Indian/Pakistani food healthy and they like the use of herbs and spices, 15% of the interviewees said that every restaurant has a different menu so they are interested in trying it at least once. 25% of the respondents like cultural decorations and the history. It is interesting for them to observe a di fferent taste in a different cultural surrounding. 8% of the respondents are just concerned about food quality and arrangements and not brands. Figure 20 below depicts some customer attractions towards Pak/Indian restaurants.4) Would you like to have an Indian restaurant in your area? There is no Indian restaurant in Kymenlaakson area so 75% of the respondents are excited about having an Indian restaurant because they get a chance to visit some Indian restaurants only when they are in Helsinki or Lahti. 15% of respondents are satisfied with the existing number of ethnic restaurants in Kymenlaakson. 10% of the interviewees were not so keen on eastern food since they consider it fatty. Figure 21 below shows the customer attitude towards a new restaurant in Kymenlaakson area. Would you like to have an Indian restaurant in your area?5) What are your customer expectations regarding a new Indian restaurant? As can be seen in figure 22 below 38% of the respondents look forward to spicy food with a good vegetarian and a non-vegetarian menu. They also appreciate a good cultural environment. 15% of the Interviewees are concerned about courtesy and friendliness of staff and expect a good customer service. Nearly 26% of the interviewees are concerned about the price difference and would prefer a low price with a good food quality. 20% of the respondents look forward to a good buffet meal for a reasonable price. Figure 22 below shows the customers expectations.The customer expectations the above analysis draws a polish that there is certainly a room for Indian village restaurant. People would like to try different food, they seem curious about new taste and cultural atmosphere of a restaurant. There are some stereotypes associated with previous experiences, but there is always a way to do things better. I also learned that today few customers are satisfied with just getting something to eat. Rather, they have come to expect higher levels of eat experience. Find ing ways to create the right kind of dining experience to match the customer expectations is a growing challenge for every operator. unattackable food is not the only thing customers are looking for today. When they go for lunch they want a break from their work environment. They want to purchase and consume their meals in a place that offers a sense of life and excitement. To have satisfied customers, an entrepreneur must meet customer expectations. This requires being aware of customer expectations, without this knowledge, it will be difficult or hopeless to meet and exceed the expectations. If expectations are not met, the customer will perceive the performance as inadequate and actions as insufficient. The questionnaire analysis was based on five important questions to know customers basic expectations but later additional questions can be added to the list to deal with particular issues depending on the product, service, company and situation.Summary and conclusions This paper consists of three stages of starting a new business. All three stages are different but combined with each other the first stage emphasized the importance of having a business plan with the help of scientific theory. I, the author got to know that before we embark upon a new venture of starting a new business, it is wise to measure the health of the vision. The right vision will make the business plan alive and a reality. The first stage of this paper is about giving this vision a right direction, the form and the pellucidness according to the scientific theory. In the first part I learned that the right business strategy and tactics are important to make the vision come true. Different department develop the additional strategies, tactics, and systems to achieve their results and, ultimately the strategic objective of the company. I figured that vision alone is not enough for starting a business there are basic factors which need to be observed before launching a new produc t. The second stage was implemented by benchmarking method. I did some surveys and interviews to observe the basic departments of successful businesses like pricing, location, products and promotion. I analyzed the related additional strategies which boost businesses and the importance of basic strategies. The questionnaire analysis helped to understand the opportunities and the possibilities. I got to know the customer expectations and the social behavior towards this project. It was good to measure these possibilities, guardianship in mind the customer expectations. The third stage was implemented by scientific theory for Indian village restaurant, and described the basic elements of the concept. I analyzed the possibilities of market penetration, through the mission statement and goals, and discussed how the plan is so unique and genuine which so far no one is practicing. I also analyzed different elements like the standardization of food, the opportunities, strengths a nd weaknesses and defined the toolkit. I researched the ideas to create a good image, and how a good environment can participate in giving customers a sense of fulfillment and joy. This process needed a parallel study plan. First of all I had to analyze the scientific theory for starting a new business, and then to observe different ethnic restaurants and their environment food and location. Paper supervisory program provided his guidance, and instructions towards making it more progressive and professional. Writing this paper has also enhanced my personal and professional skills I learned to examine the health of issues more scientifically and more professionally, I further would like to implement my business plan in practice and will try to put the best foot forward with the restaurant business. During research I dined in many good ethnic restaurants and figured that entrepreneurs base their food business on satisfying products which return a profit. I gained new knowledge an d learned that many people may take food business as an easy task, and would not go through conventional scientific theories of starting up a new business, yet many of these entrepreneurs are fruitful and learn by experience but in that case chances of success are surely at risk. The scientific theory for entrepreneurship was sincerely helpful to widen the understanding that even when entrepreneurs start a new business regardless of a proper scientific theory, it still applies for them. I reach the following conclusions firstly it is very important to have a business plan in order to understand the target market and the future of a business. A traditional business plan just does not provide the results one deires . Every business strategy is different. A business plan based on a vision, enthusiasm and a purpose, requires a proper market research and planning. The success in the end relies on a good market research and a planning theory.Secondly by the analysis of current busin ess trends in Finland I am positive about the progress of food business. I have seen different ethnic brand restaurants doing a successful job. This definitely sparks the interest and gives all the hopes and chances for survival to a new business. Thirdly many food providers show no concern with providing food according to the health standards, so this business plan is noble share towards the well being of human race.ReferencesBoston Consulting Group 2009. Annual report.Cameron Kim 2008. Positive Leadership Strategies for Extraordinary Performance. city Berrett-Koehler make Limited.Dhanjal Beryl, Halliday Tony 2007. Insight Guides Pakistan, 3rd edition. metropolis Apa Publication GmbH & Co issue Limited.Fisher Alan, Chick Anne, Bifulco Antonia, Mellor Noah, & Mellor Robert 2009. Entrepreneurship for everyone, a student text book. London wise Publishing Limited.Grnroos Christian 2000. Service caution and Marketing Customer Management in Service Competition, 3rd edition. John Wil ey &Sons Publishing Limited.Immonen Jorman, Olander Ilkka 2007. The Ministry of Trade and Industry Task Force forPromoting Immigrant Entrepreneurship. City Edita Publishing Limited.Jeynes Jacqueline, 2002. Risk Management 10 Principles. City Butterworth-Heinemann Publishing Limited.McDonald Malcolm 2007. Market plans How to prepare them, how to use them, 6th edition. City Elsevier Publishing Limited.Meldrum Mike, McDonald Malcolm 2007. Marketing in a Nutshell Key concepts for non specialists. City Butterworth-Heinemann Publishing Limited.Nissinen Vesa 2006 Deep Leadership. Talentu Publishing Limited.Source document

Assessment for learning Essay

Learning is an innate capability of a person. slew perceive things and learn finished their experiences eon they grow up and develop accordingly with their ages. Aside from the normal hatful who learn in the normal way, there argon off course other people who are above normal, after which learn through special trainings and conditioning. People learn accordingly with their capacity to gain information and store it in their minds.It is non only by sending children to school that they are education but also through their real life experiences that require not only for their intelligence but also for their emotional skills. In determine the learning rate of a certain assort, it is very important that the surveyor is sufficient to gather the information about the specific group such as age range, family background, nutrition of the students and other factors that actually affect the learning natural action of a person, be it a cognitive or conditional learning. at that place a re also specific tests that buttocks be stipulation to the students or the target learners to have written and documented results. Suppose I chose the puddle of elementary students that includes children ranging from 10-11 years old. These children are already exposed to a queen-sized scope of media that portray the different roles and scenarios in the society. If I am to go their emotional intelligence, I would give them examinations that flock determine how well they interact with other students such that they will be told to work on groups. by the activity, students with good family background can actually have the bigger possibilities of spark advance the group thus causing peace whenever other children tend to labor for what they believe. Off course there will be passive human body of children and the best tool to give or offer them are group dynamics that can actually unleash their inner talents. That is also possible if the conductor of the test is encouraging and e nthusiastic.In terms of academic assessments, children on this age range can be fed with lectures and practice activities such as solving math problems or subject and verb agreement. In my previous(prenominal) experiences as a child, it is very effective for me that children will be given the chance to construct their own sentences and math problems. After that, children will be asked to solve and analyze what they do and have it in group discussions. assort discussions can help the children to gain other ways of solving such problems and assureing different sentences.It is also helpful that the teacher follows up the ontogeny of the understanding of a student. Assessing the strengths and weaknesses of the lesson is necessary thus providing them devices and strategies that can help them understand more the difficult points. Specific tools that can be used in assessing the ability of a person in Mathematics and English can be flash cards and reading literary pieces (stories, anec dotes) respectively. Both can add up to the expertise of a student to the subject matter. every(prenominal) child deserves the right for education.For those who cant afford it, there are still many ways to supply your children with it either tutoring them every daytime or enrolling them a school that caters scholarships. It is vital to feed the children with knowledge while they are young and still can acquire and save them to their memories. The mensurate of education is much more priceless than any treasure in this world not fading but still growing through ages.ReferenceQCA WEBSITE. Assessment for learning. Retrieved 1 May 2008 from http//www. qca. org. uk/qca_5067. aspx

Anarchy State and Utopia Essay

diffusing(prenominal) Justice Robert Nozick From Anarchy, State, and Utopia, 149-182, with omissions. Copyright 1974 by staple fibre Books, Inc. Reprinted by permission of Basic Books, a subsidiary of Perseus Books Group, LLC. The minimal conjure is the most extensive state that can be soundified. Any state more extensive violates communitys rights. Yet galore(postnominal) souls have put forth reasons purporting to exc enjoyment a more extensive state. It is impossible within the compass of this disk to examine all the reasons that have been put forth.Thitherfore, I shall focus upon those more often than non acknowledged to be most weighty and influential, to see precisely wherein they fail. In this chapter we consider the claim that a more extensive state is justified, because infallible (or the best instrument) to achieve divided umpire in the next chapter we shall exclaim back up diverse other claims. The terminal figure distributive umpire is non a neutral un ity. Hearing the term distribution, most populate anticipate that roughly thing or mechanism uses somewhat dogma or criterion to give out a supply of things.Into this process of distributing sh ars some error may have crept. So it is an open question, at least, whether redistribution should mint place whether we should do again what has already been through with(p) once, though poorly. However, we ar non in the position of children who have been given portions of pie by someone who now makes last minute adjustments to rectify c arless cutting. There is no central distribution, no soul or group authorise to date all the resources, jointly deciding how they ar to be doled out.What each psyche gets, he gets from others who give to him in ex assortment for something, or as a gift. In a free society, diverse persons control different resources, and clean holdings arise out of the voluntary exchanges and actions of persons. There is no more a distributing or distribution of shares than there is a distributing of mates in a society in which persons choose whom they shall marry. The total result is the product of many individual decisions which the different individuals involved are entitled to make.Some uses of the term distribution, it is true, do not imply a previous distributing appropriately judged by some criterion (for example, probability distribution) nevertheless, despite the title of this chapter, it would be best to use a terminology that clearly is neutral. We shall speak of peoples holdings a precept of umpire in holdings describes (part of) what legal expert tells us (requires) approximately holdings. I shall state first what I take to be the correct view about justice in holdings, and then manoeuvre to the discussion of alternate views.Section 1 The Entitlement Theory The subject of justice in holdings consists of three study topics. The first is the original acquisition of holdings, the appropriation of unheld things. This incl udes the issues of how unheld things may catch to be held, the process, or processes, by which unheld things may issue forth to be held, the things that may come to be held by these processes, the extent of what comes to be held by a particular process, and so on. We shall refer to the complicated verity about this topic, which we shall not formulate here, as the pattern of justice in acquisition.The second topic concerns the transfer of holdings from one person to other. By what processes may a person transfer holdings to another? How may a person acquire a holding from another who holds it? Under this topic come general explanations of voluntary exchange, and gift and (on the other hand) fraud, as rise as reference to particular conventional details fixed upon in a given society. The complicated truth about this subject (with placeholders for conventional details) we shall call the linguistic rule of justice in transfer. And we shall suppose it also includes principles gov erning how a person may divest himself of a holding, passing it into an unheld state. ) If the world were all told just, the following inductive definition would exhaustively cover the subject of justice in holdings.1. A person who acquires a holding in union with the principle of justice in acquisition is entitled to that holding. 2. A person who acquires a holding in accordance with the principle of justice in transfer, from someone else entitled to the holding, is entitled to the holding. . No one is entitled to a holding except by (repeated) applications of 1 and 2. The complete principle of distributive justice would say simply that a distribution is just if everyone is entitled to the holdings they possess under the distribution. A distribution is just if it arises from another just distribution by legitimate means. The legitimate means of moving from one distribution to another are condition by the principle of justice in transfer. The legitimate first moves are specified by the principle of justice in acquisition.Whatever arises from a just posture by just steps is itself just. The means of change specified by the principle of justice in transfer preserve justice. As correct rules of evidence are truth-preserving, and any conclusion deduced via repeated application of such rules from exactly true premisses is itself true, so the means of diversity from one situation to another specified by the principle of justice in transfer are justice-preserving, and any situation actually arising from repeated transitions in accordance with the principle from a just situation is itself just.The parallel between justice-preserving transformations and truth-preserving transformations illuminates where it fails as well as where it holds. That a conclusion could have been deduced by truth-preserving means from premisses that are true suffices to show its truth. That from a just situation a situation could have arisen via justice-preserving means does not suffice to show its justice. The fact that a depredators victims voluntarily could have presented him with gifts does not entitle the thief to his ill-gotten gains.Justice in holdings is historical it depends upon what actually has happened. We shall return to this insinuate later. Not all actual situations are generated in accordance with the devil principles of justice in holdings the principle of justice in acquisition and the principle of justice in transfer. Some people steal from others, or diddle them, or enslave them, seizing their product and preventing them from living as they choose, or forcibly exclude others from competing in exchanges.None of these are permissible modes of transition from one situation to another. And some persons acquire holdings by means not sanctioned by the principle of justice in acquisition. The existence of former(prenominal) inequity (previous violations of the first both principles of justice in holdings) raises the third major topic under jus tice in holdings the chastisement of injustice in holdings. If past injustice has shaped present holdings in various ways, some identifiable and some not, what now, if anything, ought to be make to rectify these injustices?What obligations do the performers of injustice have toward those whose position is worse than it would have been had the injustice not been done? Or, than it would have been had compensation been paid promptly? How, if at all, do things change if the beneficiaries and those made worse off are not the direct parties in the act of injustice, but, for example, their descendants? Is an injustice done to someone whose holding was itself ground upon an unrectified injustice?How far back must one go in wiping clean the historical slate of injustices? What may victims of injustice permissibly do in order to rectify the injustices being done to them, including the many injustices done by persons acting through their government? I do not know of a thorough or theoretica lly sophisticated intercession of such issues. Idealizing greatly, let us suppose theoretical investigation bequeath produce a principle of rectification.This principle uses historical information about previous situations and injustices done in them (as defined by the first two principles of justice and rights against interference), and information about the actual course of events that flowed from these injustices, until the present, and it yields a description (or descriptions) of holdings in the society. The principle of rectification presumably will make use of its best estimate of subjunctive information about what would have occurred (or a probability distribution over what might have occurred, using the anticipate value) if the injustice had not taken place.If the actual description of holdings turns out not to be one of the descriptions yielded by the principle, then one of the descriptions yielded must be realized. The general outlines of the theory of justice in holdin gs are that the holdings of a person are just if he is entitled to them by the principles of justice in acquisition and transfer, or by the principle of rectification of injustice (as specified by the first two principles).If each persons holdings are just, then the total set (distribution) of holdings is just. To turn these general outlines into a peculiar(prenominal) theory we would have to specify the details of each of the three principles of justice in holdings the principle of acquisition of holdings, the principle of transfer of holdings, and the principle of rectification of violations of the first two principles.I shall not attempt that task here (Lockes principle of justice in acquisition is discussed below. ) . How Liberty Upsets Patterns It is not clear how those holding alternative conceptions of distributive justice can disavow the entitlement conception of justice in holdings. For suppose a distribution favour by one of these non-entitlement conceptions is realized .

Chapter 01 Gitman

Part One Preparing to Invest Part One Includes Chapter 1 investiture Environment Chapter 2Markets and minutes Chapter 3Online Information and enthronement Chapter 1 enthr 1ment Environment Outline tuition Goals I. coronation finances pecuniary resources and the enthronement Process A)Types of investings 1. Securities or Property 2. Direct or in straight 3. Debt, Equity, or Derivative Securities 4. Low or High Risk 5. brusque or Long Term 6. Domestic or Foreign B)The social structure of the Investment Process 1. Participants in the Investment Process 2. Government 3. handicraft 4. Individuals 5.Types of Investors Concepts in Review II. Investment Vehicles A) poor Term Vehicles B) communal expect C)Fixed Income Securities 1. Bonds 2. Preferred Stock 3. Convertible Securities D)Mutual Funds E)Derivative Securities 1. Options 2. Futures F)Other Popular Investment Vehicles Concepts in Review III. make Investment Plans A)Steps in commit 1. Meeting Investment Prerequisite s 2. Establishing Investment Goals 3. Adopting an Investment Plan 4. Evaluating Investment Vehicles 5. Selecting Suitable Investments 6. Constructing a Diversified Portfolio 7. Managing the PortfolioB)Considering Personal assesses 1. underlying Sources of imposeation 2. Types of Income a. Ordinary Income b. Capital Gains and Losses 3. Investments and Taxes 4. Tax-advant ripend seclusion Vehicles C)Investing Over the doings Cycle D)Investing in Different Economic Environments 1. Stocks and the Business Cycle 2. Bonds and sake Rates Concepts in Review IV. Meeting Liquidity Needs Investing in Short-Term Securities A)Role of Short Term Securities 1. Interest on Short Term Securities 2. Risk Characteristics 3. Advantages and Disadvantages of Short Term InvestmentsB)Popular Short Term Investment Vehicles 1. Deposit Accounts 2. Federal Government Issues 3. Non political relation Issues C)Investment Suitability Concepts in Review unofficial Putting Your Investment K at present-How to the Test word of honor Questions Problems Case Problems 1. 1Investments or golf? 1. 2Preparing Carolyn Bowens Investment Plan Excel with Spreadsheets OTISOnline Trading and Investment Simulator Key Concepts 1. The meaning of the experimental conditioninal coronation and the implications it has for individual investors. 2. Review the factors utilise to distinguishableiate mingled with different types of investments. . The importance of and basic steps mixed in the investment forge. 4. Popular types of investment vehicles, including short full terminus vehicles, frequent stock, and fixed income securities such as bonds, preferred stock, and convertibles. 5. Derivative securities such as options and forthcomings, and unwashed currency. 6. Other popular investment vehicles such as veritable estate, tangibles and value advantaged investments. 7. Investment goals including income, major uses, h estimateway, and sheltering income from taxes. The latter includes analys is of tax-advantaged retirement vehicles. . grammatical construction a diversified portfolio unvarying with investment goals. 9. Sources of taxation, types of taxable income, and the effect of taxes on the investor. 10. Developing an investment program that considers differing sparing environments and life cycle stages. 11. The habituate of short term securities in meeting fluidness wants. 12. The merits and suitability of sundry(a) popular short term investment vehicles including repair written reports and notes foodstuff securities. Overview This chapter provides an overview of the scope and content of the text. 1.The term investment is delineate, and the alternative investment opportunities addressable to investors argon classified by types. 2. An examination of the structure of the investment work out is presented. This section explains how suppliers and demanders of investment notes argon brought together in the market place gradeplace. 3. The recognise pa rticipants in the investment processgovernment, business, and individuals ar described, as be institutional and individual investors. 4. Returns argon defined as rewards for drop. Returns to an investor bear off back both formsstream income and increased value of the investment over time.In this section the instructor need only define recurrence, since there pass on be an opposite fortune to develop the concept of concede in Chapter 4, however providing information closely recent investment wagess is always head-received by students. 5. Next, the fol dispiriteding investment vehicles available to individual investors be discussed short term vehicles, common stock, fixed income securities, mutual bills, significant estate, tangibles, tax-advantaged investments, and options and futures. The text describes their fortune call in characteristics in a widely distri onlyed way.The instructor whitethorn want to expand on the advantages and disadvantages of investing in each, although they bequeath be treated in greater detail in subsequent chapters. It is vital for any investor to establish investment goals that argon logical with his or her over in all fiscal objectives. 6. Once the investment goals hold up been well condition, the investor cigargont adopt an investment image coherent with these goals, select adequate investments, build a diversified portfolio and manage it. 7. Personal taxes ar discussed in terms of types of income and tax place. The investment process is affected by stop tax laws.Examples of tax shelters, especially tax-advantaged retirement vehicles, and tax computer programning be provided. 8. Once investment goals argon established, it is grand to understand how the investment process is affected by different frugal environments. The chapter talks about types of investmentsstocks, bonds, and tangiblesas they ar affected by business cycles, elicit rates, and inflation. 9. Liquidity is defined and short ter m securities that move be subprogramd to meet fluidityity requirements be described. The discussion includes a look at short term intimacy rates and the risk characteristics of various short term securities. 0. The conterminous section covers the various types of short term vehicles available to todays investor. there is enough detail about e actuallything from passbook accounts to money market cash in hand to commercial root that the students should get a right(a) cop of the differences between the vehicles. Producing information on current rates helps bring pragmatism into the classroom and enhances student perception of the lecturer as a internal instructor. Answers to Concepts in Review 1. An investment is any vehicle into which cash apprise be placed with the expectation of preserving or increasing value and earning a validatory rate of return.An investment can be a certification or a topographic point. Individuals invest because an investment has the potenti al to preserve or increase value and to earn income. It is important to stress that this does not need that an investment pass on in fact preserve value or earn income. Bad investments do exist. 2. (a)Securities and property argon simply devil classes of investments. Securities are investments, commonly evidenced by certificates, that represent a well-grounded claim. For example, a bond represents a legal claim on debt, and a stock represents a proportionate ordain power in the firm.An option, on the other hand, represents the legal obligation to either demoralise or sell an plus at a predetermined bell inwardly a qualify time period. Property constitutes investments in either real property (land and buildings) or tangible personal property (Rembrandt paintings, Ming vases, or antique cars). (b)With a direct investment, an individual acquires a direct claim on a shelter or property. For example, an investment in one share of IBM stock promptly provides the stockholder a proportionate ownership in IBM. An indirect investment provides an indirect claim on a security or property.For example, if you bought one share of Fidelity Growth Fund (a mutual fund), you are in effect buying a portion of a portfolio of securities owned by the fund. Thus, you leave be in possession of a claim on a constituent of an entire portfolio of securities. (c)An investment in debt represents notes loaned in exchange for the pass on of interest income and repayment of the loan at a cast off future date. The bond, a common debt instrument, pays specified interest over a specified time period, then repays the slip value of the loan (Chapters 8 and 9 cover bonds in detail).An equity investment provides an investor an ongoing fractional ownership interest in a firm. The most common example is an investment in a companys common stock. We will field of honor equity instruments in greater detail in Chapters 5 by means of 7. Derivative securities are securities derived f rom debt or equity securities and structured to exhibit characteristics different from the underlying securities. Options are derivative securities that stand an investor to sell or buy another(prenominal) security or as cause at a detail price over a given time period. For example, an investor might acquire an option to buy Company X stock for $50 within nine months. d) short investments typically mature within one year era prospicient-term investments have longer maturities, like common stock, which has no maturity at all. However, long-term investments can be used to satisfy short-run financial goals. 3. In finance, risk refers to the chance that the return from an investment will differ from its expect value. The broader the commit of possible values (dispersion), the greater the risk of the investment. Low risk investments are those considered safe with respect to the return of currency invested and the receipt of a prescribed rate of return.High risk investments are t hose which have more than than uncertain future values and levels of requital. 4. Foreign investments are investments in the debt, equity, derivative securities of impertinent based companies and property in a foreign country. Both direct and indirect foreign investments provide investors more taking returns or lower-risk investments compared to purely domestic investments. They are useful instruments to diversify a pure domestic portfolio. 5. The investment process brings together suppliers and demanders of gold. This may exit instantly (as with property investments).Most much the investment process is aided by a financial institution (such as a brink, nest egg and loan, nest egg bank, credit rating union, policy company, or pension fund) that channels funds to investments and/or a financial market (either the money market or the detonating device market) where transactions occur between suppliers and demanders of funds. 6. (a)The various levels of government (federal , state, and local) require more funds for projects and debt repayment than they receive in r flatues. Thus, governments are net demanders of funds. Governments in any part demand funds when the timing of their revenues do not match their expenditure.The term net refers to the fact that, bit governments both depict and demand funds in the investment process, on brace they demand more than they supply. (b)Businesses withal are net demanders, requiring funds to cover short and long term operating needs. While business firms often supply funds, on balance they also demand more than they supply. (c)Individuals are the net suppliers of funds to the investment process. They put more funds into the investment process than they homecoming out. Individuals frolic an important role in the investment processsupplying the funds needed to finance economic egression and development. 7.Institutional investors are investment professionals who are paid to manage other peoples money. They a re occupied by financial institutions like banks and insurance companies, by nonfinancial businesses, and by individuals. Individual investors manage their own personal funds in fellowship to meet their financial goals. Generally, institutional investors tend to be more school because they handle much larger criterions of money and they tend to have a broader knowledge of the investment process and available investment techniques and vehicles. 8. Short term investment vehicles are those which usually have lives of less than one year.These vehicles may be used to warehouse temporarily idle funds while suitable long term vehicles are evaluated. Due to their safety and convenience, they are popular with those wishing to earn a return on temporarily idle funds or with the very conservative investor who may use these short term vehicles as a primary investment outlet. In addition to their warehousing function, short-run vehicles provide liquidity- they can be reborn into cash chop -chop and with midget or no loss in value. This characteristic is very useful when investors need to meet unexpected expenses or take advantage of attractive opportunities. . Common stock is an equity investment that represents a fractional ownership interest in a corporation. The return on a common stock investment derives from two sources dividends, which are periodic payments do by the firm to its shareholders from current and by earnings, and dandy gains, which result from selling the stock at a price to a higher place the original obtain price. Because common stock offers a broad range of return-risk combinations, it is one of the most popular investment vehicles. Two sources of potential return are dividends and large(p) gain. 10. a)Bonds are debt obligations of corporations or governments. A bondholder receives a cognize interest return, typically semiannually, plus the confront value at maturity. Bonds are usually issued in $1,000 denominations, pay semiannual inter est, and have twenty to 40 year maturities. Bonds offer fixed/certain returns, if held till maturity. (b)Preferred stock is very much like common stock in that it represents an ownership interest in a corporation. But preferred stock pays only a fixed stated dividend, which has precedence over common stock dividends, and does not share in other earnings of the firm. c)A convertible security is a fixed income security, either a bond or preferred stock, that has a conversion feature. Typically, it can be converted into a specified subroutine of shares of common stock. Convertible securities are quasi-derivative securities as their market value would enumerate on the price of the common stock and the conversion ratio. (d)A mutual fund is a company that invests in a large portfolio of securities whereas a money market mutual fund is a mutual fund which plainly invests in other short vehicles.Investors might find mutual funds good-hearted because a large portfolio may be more cons istent with their investment goals in terms of risk and return. As we will retard later, a mutual fund offers the investor the benefits of diversification and professional instruction. Mutual funds do not offer fixed/certain returns. Mutual funds are quasi-derivative securities as their market value would depend on the price of the as lots that make up the funds portfolio. (e)Options are derivative securities that provides holders the right to buy or sell another security (typically stock) or property at a specified price over a given time period.Factors like the time until expiration, the underlying stock price behavior, and supply and demand conditions affect the returns. (f)Futures represent contractual arrangements in which a seller will introduce or a buyer will take delivery of a specified quantity of a commodity at a given price by a certain date. impertinent an option, which gives the investor the right to purchase or sell another security, futures contracts obligate th e investor to deliver or take delivery. Factors affecting returns on commodity contracts include changes in government policy, unpredictable weather, trade embargoes, and so on. 1. Before evolution and execution an investment program, an investor must ensure the following (1)Necessities of life such as funds for housing, food, transportation, taxes etc are fully provided for. (2)Investor is adequately insured against the losings resulting from death, dis put up or disability, property etc. (3)Establish Retirement Goals The seven steps in investing are as follows (1)Meeting Investment Prerequisites Providing for Necessities of life, adequate protection against losses, and place retirement Goals as iscussed above (2)Establishing Investment Goals Investment goals are the financial objectives that one wishes to achieve by investing. Common investment goals are Accumulating retirement funds Enhancing current income finished interest income and dividends Savings for major expenditure like home, education etc. Sheltering income from taxes (3)Adopting an Investment Plan A written document describing how funds will be invested is an investment plan. The more particular the investment goal, the easier it will be to establish an investment plan consistent with your goals. 4)Evaluating Investment Vehicles In this step, the measures of risk and return are used to forecast the perceived price of an investment vehicle. This process is called valuation. (5)Selecting Suitable Investments This step involves wakeful selection of investment vehicles that are consistent with established goals and offer congenial levels of return, risk, and value. (6)Constructing a Diversified Portfolio Diversification is the concept of forming a portfolio using different investment vehicles to reduce risk and increase return. This concept is central to constructing an impelling portfolio. 7)Managing the Portfolio Portfolio direction involves overseeing the portfolio and restructuring it as dictated by the actual behavior of the investments. 12. Investment goals are the financial objectives you wish to achieve by investing in any of a wide range of investment vehicles. Common investment goals are (a)Enhancing current income means choosing investment vehicles that regularly pay dividends and interest that can provide all or roughly of the money needed to meet living expenses. This is a common goal of retired persons and mosttimes an important part of a normal family budget. b)Saving for major expenditures includes money passel aside for such things as the down payment on a home, college tuition, and even an expensive vacation. The fare of money needed and the time period over which one can save will determine the amount set aside and, frequently, the investment vehicle employed. (c)The single most important reason for investing is to accumulate retirement funds. The amount that must be set aside is determined by the level of expected expenditures, expected inc ome from social security and other sources, and the amount of interest expected to be earned on savings. d)Sheltering income from taxes involves taking advantage of certain tax commissariat that permit reduction of the income reported to the government or direct reductions in taxes. Investments in certain pluss, such as real estate, may be attractive due to their tax advantages. 13. Federal income taxes are charged against all income individuals receive from all sources (with the exception of interest received on some bonds issued by state and local governments). (a)Active (ordinary earned) income is the broadest socio-economic class and includes income from wages, salaries, bonuses, tips, pension income, and alimony.It is made up of income earned on the job as well as most other forms of non-investment income. (b)Portfolio (investment) income is earnings generated from various types of investment holdings. For the most part, it consists of interest, dividends, and capital gains earned on most types of investments. Passive income is a special category that consists of income derived chiefly from real estate, limited partnerships, and other forms of tax shelters. (c)Capital gains are the simoleons earned on the sale of capital assetspleasure, or investment.They are metric by the amount by which the increase from the sale of the capital asset exceed its original purchase price. Currently capital gains are taxed at the identical rate as ordinary income. Capital gains are appealing to investors because they are not taxed until they are actually realized. (d)A capital loss is the amount by which the proceeds from the sale of a capital asset are less than its original purchase price. Up to $3,000 of net losses can be applied against ordinary income in any one year, with the saucy portion carried forward to offset future income. e)Due to the opportunities and challenges created by the tax laws, tax planning is an important part of the investment process. Tax planning involves facial expression at an individuals current and projected earnings and developing strategies that will defer or minimize the level of his or her taxes. Tax plans involve current income, capital gains, or tax-sheltered investments. For example, one strategy is to take losses as they occur and to delay taking profits. One deducts the losses and delays inclusion of profits in order to minimize current taxable income. f)In general, tax-advantaged retirement plans allow individuals to defer taxes on the contribution and/or portfolio earnings until some future date when retirement withdrawals take place. There are employer-sponsored plans, such as 401(k) accounts and individual-created plans, such as Keogh plans, and individual retirement accounts (IRAs). 14. (a)Young investors, ages 20 to 45, tend to prefer growth-oriented investments that stress capital gains rather than income. These investors have smallish investable funds, and capital gains are seen as the quickest way to build up investment capital. b)By middle-age, ages 45 to 60, there is a consolidation taking place as family demands and responsibilities change. While growth-oriented securities are still used, investing conveys less defective. Quality-growth vehicles are employed, and more attention is given to current income. The foundation is beingness set for retirement. (c)As the investor moves into the retirement years, age 60 on, preservation of capital and current income become the principal concerns. High-quality stocks and bonds and money market instruments are used as the investors objective is to live as comfortably as possible from the investment income.During retirement one tries to reap the rewards of a lifetime of saving and investing. 15. The quaternary stages of the economic/market cycle are recovery, expansion, decline, and recession. Recovery is the strengthening of the economic system after a recession. Expansion reflects continued strength and optimism about econo mic growth. Decline involves a slowing-down of the economy after an expansion which may have been moving too fast. Then the cycle moves into recession, the economy contracts and pessimism reigns. Just as things look the worst, the recovery cycle begins again. a)Stocks and equity-related securities (such as mutual funds and convertibles) are highly responsive to the economic cycle. During recovery and expansion stock prices are up. As the decline approaches, stock prices begin to decline as well. Growth-oriented and speculative stocks tend to do especially well in an expanding economy. (b)Bonds and other fixed-income securities are sensitive to movements in interest rates. Bond prices also move in the opposite direction of interest rate changes. This means that if interest rates are expected to rise, bond prices would fall, and bonds would not be a good place to hold investment funds.Interest rates loosely shift with the economic cycle. Rates rise during normal recovery and fall duri ng economic declines. 16. An asset is liquid if it can be converted to cash (sold) easily and quickly, with little or no loss in value. You would want to hold liquid assets as emergency funds or to accumulate funds for some specific purpose. IBM stock is not considered a liquid investment even though it can be easily sold. As with stocks in general, you can never be sure that, when funds are needed, you can quickly sell the stock without taking a loss. 17.Purchasing power risk for short investments occurs when the rate of return on these investments falls short of the inflation rate. This generally happens to fixed-rate investments such as passbook savings accounts. Most other short-term investments have managed to provide rates of return about equal to the inflation rate when one looks at these short-term rates over long periods of time. Default (nonpayment) risk is very small with most short-term investments. The lodges in banks and other federally-insured savings institutions a re protected up to $100,000 per account by agencies of the federal government. U. S. treasury Bills are perfectly safe and sometimes called a unhazardous investment. Commercial paper and repurchase agreements are extremely safe, based upon past experience, even though there have been rare instances of problems. These latter two instruments are also not insured. Money market mutual funds have also had an exceptionally safe history. Of die hard, the safest money market funds are those which invest solely in government securities and are almost default-risk free. 18. Passbook savings accounts and NOW accounts (a kiboshing account), offered by banks, generally pay a low rate of interest and have no minimum balance.Passbook savings and NOW accounts are primarily used by investors as savings accounts, providing the investor with a highly liquid pool of funds. MMDAs are bank deposit accounts with limited check-writing privileges. Central asset accounts are comprehensive deposit accounts and combine checking, investing and borrowing activities. MMDAs and asset management accounts are more likely used by investors to earn a competitive short-term return while maintaining liquidity. Each type of account, except for asset management accounts, is insured. All but the passbook account typically require a minimum balance which varies. 19. a)Series EE savings bonds are accrual-type securities, which means that interest is paid when the bond is cashed, on or before maturity, rather than periodically over the life of the bond. The purchase price of all denominations is 50% of the face value. The interest rate paid is variable. The higher the rate of interest being paid, the shorter the period of time it takes for the bond to accrue from its discounted purchase price to its face value (b)U. S. Treasury bills are short-term (less than one year) debt obligations of the federal government. T-bills are exempt from state and local income taxes, and federal taxes are deferred.They are regarded as the safest, but generally lowest-yielding of all investments, and, the secondary market for T-bills is highly liquid. (c)Certificates of deposits (CDs) are savings vehicles in which funds must retain on deposit for a specified period. Premature withdrawals incur interest penalties. Because of the requirement that they remain on deposit, CDs are less liquid than T-bills, but they are agreeable to buy and hold, offer highly competitive returns, and have federal insurance protection. (d)Commercial paper is un maked short-term debt issued by corporations with very high credit standings.The secondary market for commercial paper is very limited and yields are comparable to yields on large-denomination CDs. Typically only larger institutions deal directly in this market because the denominations range from $25,000 to the more commonly issued $100,000. Commercial paper is not federally insured. (e)Bankers acceptances are short-term credit arrangements between business fir ms and banks. Firms use bankers acceptances to finance transactions, most often involving firms in foreign countries or firms with unknown credit capacities.Bankers acceptances typically are denominated in $100,000 units, are low-risk securities, and have active secondary markets. Yields are more or less below CD yields and commercial paper, and above T-bills. (f)Money market mutual funds (MMMF) pool capital of many investors and invest it exclusively in high-yielding, short-term securities, such as T-bills, large CDs, commercial paper, and other similar securities. Because these high-yielding securities are in denominations of $10,000 to $1 million, the MMMF makes them available to individual investors.MMMFs are convenient, offer check writing privileges, and yields are based on the ability of the fund four-in-hand to invest in various short-term securities. Although they are not federally insured funds, their default risk is nearly zero because the securities they invest in are very low risk and the fund is recountingly diversified. Suggested Answers to Investing in Action Questions Test Your Investment IQ (p. 4) How high is your Investment IQ as measured by the quiz? Answer The comely score was only 37 %, or well less than half. repute that this is just one of many instruments that could be used to measure Investment IQ.For example, another assessment tool would be essay-oriented explanations of a specified investments strengths and weaknesses. Lessons For Investment Success (p. 15) (a)Why is it important to start investing now? Answer One should start investing now in order to take advantage of compounding. A $1,000 amount invested for ten years at 7. 2 percent will double. The same amount invested at the same rate for twenty years will quadruple. Instead of just adding another $1000, you earn an extra $1000 from interest being earned on interest. Furthermore, there will never be an ideal time to invest.Terrorist threats, economic concerns, and alter native uses for the money are always with us. Studies have shown it is more important to invest than to pick the right security. Money not invested is likely to be spent and not provide future benefits. (b)Why is it a good idea to diversify? Answer Diversifying allows you to spread out the risk that a laughable firm or industry event will have a devastating impact on your investment. It is important to diversify across types of assets and nations. Suggested Answers to Discussion Questions 1. a)Since you fall into the category of a young investor, your key investment goals should be to purchase a house and save for the education of your children. Appropriate investments should centralise on the education of your children. (b)You should consider the effects of taxes when investing, especially the tax relative treatment of capital gains and dividends. Your focus should be on maximizing the after-tax return on your investments. (c)Since you have a relatively long investment horizon, it is reserve to focus on higher-risk investments such as common stocks in your portfolio. . Short-term vehicles play an important part in your investment program. Most importantly they will provide a pool of reserves that can be used for emergencies such as replacing cars, appliances and clothing that wear out over time. Savings or Investment VehicleMinimum BalanceYieldFederal InsuranceMethod and Ease of Withdrawing Funds (a)Passbook savings accountNone0. 5% to $4. 0%, depending on economyYes, up to $100,000 per depositIn person or through teller machines very easy (b)NOW accountNo legal minimum, but often set at $500 or $1,000At or near passbook ratesYes, up to 100,000 per depositUnlimited check- writing privileges (c)Money market deposit account (MMDA)No legal minimum, but often set at $2,500Slightly above passbook ratesYes, up to $100,000 per depositLimited check- writing privileges (d)Asset management accountTypically $5,000 to $20,000Similar to MMDAsYes, up to $100,000 in ba nks, varies elsewhereLimited check- writing privileges (e)Series EE savings bondInitial deposit is 50% of face valueAbout two percent above passbook savings accountNo, but Federal government issuePenalty of 3 months interest for early withdrawal (f)U. S. Treasury ill$25Slightly above passbook and NOW accounts No, but Federal government issueSecondary market exists (g)Certificate of depositTailored to investor needsSlightly above asset management accountNo, but as unspoilt as most bank savings and checking accountsPenalty for early withdrawal (h)Money market mutual fundNo legal minimumSlightly below passbook savings accountNo, but has invested in a variety of government and bank issuesMay take a a couple of(prenominal) days to receive check from fund Solutions to Problems 1. (a)Goal$250,000 $31,500 at 8% for 15 yrs. 100,000 Additional requirement$150,000 b)yearly deposit ? ? $5,524. 50 2. (a)Tax on Allens income of $130,000. Looking at the joint tax return rate, we find ? (10% ? $ 14,000) ? 15% ? ($56,800 $14,000 ? 25% ? ($114,650 56,800 ? 28% (130,000 114,650) ? $1,400 ? 15% ? $42,800 ? 25% ? $57,850 ? 28% ? 15,350 ? $1,400 ? $6,420 ? $14,462. 50 ? $4,298 ? $ 26,580. 50 Tax on Zells income of $65,000. Looking at the joint tax return rate, we find ? ($10% ? $14,000) ? $15% ? ($56,800 $14,000) ? 25% ? ($65,000 $56,800) ? $1,400 ? 15% ? $42,800 ? 25% ? $8,200 ? $1,400 ? $6,420 ? $2,050 ? 9,870. (b)Allan makes twice as much as Zell. balance of Allens total tax to income is ($26,580. 50/130,000) ? 20. 45% Ratio of Zells total tax to income is ($9,870450/65,000) $ ? 15. 18% Hence higher income earners pay a higher proportional of their income as tax. 3. (a)$50,000. 00/$50. 00 ? 1,000 shares of stock. (b)1,000 shares ? $2. 00 ? $2,000. 00 per year before tax. $2,000. 00 ? 0. 85 ? $1,700. 00 after tax. (c)($1,700. 00 ? 10) ? $50,000. 00 ? $67,000. 00. (d)$50,000. 00 ? 0. 05 ? $2,500. 00 per year before tax. $2,500. 00 ? 0. 67 ? $1,675. 00 after tax. (e)($1,675 . 0 ? 10) ? $50,000. 00 ? $66,750. 00. (f)They should purchase the stock. Even though the annual interest from the bonds is more than the dividend income from the stock, after taxes the Pangs will have more money from the dividend income than from the interest income. 4. Cash FlowAmountRateTax (a)Interest$1,00028%$280 (b)Dividends$3,00015%$450 (c)LT Cap Gains$2,00015%$ccc (d)ST Cap Gains$2,00028%$560 Solutions to Case Problems Case 1. 1? Investments or Golf? This case illustrates the many facets of the investment process it involves much more than common stock.The authors screw the value of physical education and emphasize the importance of sports, but a course in investments offers the student a lifetime of financial benefits. Thus, our arguments for selecting the investments course should not be interpreted as a negative command on physical education, but rather as a positive discussion of the merits of investments. (a)The term investments refers to the process of identifying, evaluating, selecting, and monitoring the placement of funds with a view of preserving or increasing value and/or earning a positive return. Judd has simply identified one investment vehicle stock). He will not know how to evaluate other vehicles, select investments, or monitor them without a course in investments. In addition to looking at his own investments, a course in investing will give Judd a new perspective on the role of investments in the economy. He will learn that as an investor, he is actually supplying funds to government and business which will enable the continued strength and growth of the general economy. (b)Clearly, Judd has ignored short term securities, bonds, options, commodities and financial futures, mutual funds, real estate, tangibles, tax shelters, and limited partnerships.Each one of these vehicles offers another risk reward alliance that may meet certain unique investment requirements that cannot be met by common stock alone. (c)Judd does not have the k nowledge needed to broaden out the investment process described in question 2. versed about common stocks is not the same as understanding investments. There is no reason whatsoever to assume that common stock is the exceed investment available to Judd. Besides, the investment decision has to be compatible with his goals. Since Judd is just starting his career, in all probability he will not want to choose risky investments.Stocks are far riskier than, say, an investment in CDs. There are other considerations too. Does Judd have plans for the future when he will need the money? If so, is it a short term or a long term need? Answers to these questions will help determine whether he should make short term or long term investments. In summary, to gain an understanding of the investment decision and management process, Judd should pass up the golf course in favor of the investments course. Case 1. 2? Preparing Carolyn Bowens Investment Plan This case allows students to evaluate a pro posed investment plan aimed at achieving certain retirement goals. a)The amount currently available to Carolyn includes $60,000 from the proceeds of the life insurance and $37,500 from her savings account, or a total of $97,500. At 6 percent compounded annually, her money will be worth If she retires at age 62 (7-year investment) $97,500 1. 504 $146,640 ? $112,500 (house) ? $259,140 If she retires at age 65 (10-year investment) $97,500 ? 1. 791 $174,622. 50 ? $127,500 (house) ? $302,122. 50 (The future-value interest factors can be found in appurtenance B, Table B. 1. ) (b)Value of Carolyns assets at 62 ? value of savings account ? alue of house $146,640 ? $112,500 ? $259,140 Similarly, value of assets at 65 ? $174,622. 50 ? $127,500 ? $302,122. 50 Carolyns annual income at age 62 would be $259,140/12. 659 ? $20,470. 81 Carolyns annual income at age 65 would be $302,122. 50/11. 118 ? $27,174. 17 (c) Annual Retirement Income Age 62 RetirementAge 65 Retirement Annual S. S. & Pensi on Fund Benefits$16,308. 00$20,256. 00 ?Annuity Income20,470. 8127,174. 17 Total Annual Retirement Income$36,778. 81$47,430. 17 (d)Carolyn needs $45,000 per year (before taxes) of retirement income.Without considering the change in her tax status upon retirement, she will not satisfy this goal if she retires at age 62. At age 65 she meets her requirement. The nature of tax order and the reduction in Carolyns tax liability upon retirement may make retirement at age 65 viable. (e)Carolyns plan is extremely conservative and low risk. The returns from the plan are very secure and probably assured. Carolyn can be confident that the accumulated worth of her investments will be available to her at retirement. Her plan to retire at age 65 meets her retirement -income goal. Carolyns plan offers low risk and low return..Through only a slight increase in risk, she might improve her return on investment and have more cushion to allow for inflation and unexpected expenditures. Carolyn could pu rchase highly rated bond, CDs, and other blue speckle security investments. In this manner, her risk aversion would be satisfied, and she would earn a higher return on her investments. This should permit more likely accomplishment of her retirement-income objectives. Therefore, with very little increase in risk, Carolyn could invest her funds in vehicles that will increase the probability that she will meet or pass off her requirement of an annual retirement income of $45,000.