Accounting Essays Management Accounting Techniques

Accounting Essays Management Accounting Techniques Critically discuss the difference between activity based costing and throughput accounting. Changing external business environment has resulted in further developments in the tools and techniques used for management accounting. Traditional management accounting techniques had certain limitations associated with them, for instance, absorption costing methods have been found to be inappropriate in the modern environment. Similarly, standard costing suitability with respect to its general philosophy and detailed operations has come under severe criticism. It is believed that traditional management accounting performance measures can produce the wrong type of response. As a response to the limitations of traditional accounting techniques, activity based approaches has gained significant repute. The following paper will evaluate the activity based costing approach and attempt to highlight the inherent differences between activity based costing and throughput accounting approach. In the case of activity based approaches, the focus is on the activities that the business carries out as opposed to how the activities have traditionally been organised into separate functions. Activity based costing was thus developed because it was realised that older methods like absorption costing, which used labour hours as the basis for absorbing overheads, did not provide useful information about the cost drivers, in other words it did not answer for the question what was causing the overheads to be incurred in the first place. Generally, Activity Based Costing (ABC) is defined as an accounting technique that allows an organization to determine the actual cost associated with each product and service produced by the organization without regard to the organizational structure. Amongst various benefits associated with the ABC approach one of the major ones is that it helps to define the activities of the organisation in terms of value adding activities. In other words, as a result of ABC it is easy to identify which activities add value to the organisation. Identification of non-value adding activities helps in identifying where time, effort and money are being wasted and unnecessary costs being incurred. Advantages associated with activity-based approach are many. More generally it is said that activity based costing recognises the inherent complexities faced by many businesses in the present day, which results in the businesses having multiple cost drivers, many of them are transaction based rather than volume based.. These complexities arise due to businesses now having a broader product range and the business environment in general is more volatile and unpredictable. It is further argued that activity based analysis provides a more meaningful analysis of costs which provide a better basis for pricing decisions, product mix decisions, design decisions and production decisions. Besides activity based analysis is concerned with all overhead costs, including the costs of the non-factory floor functions (product design, quality control, production planning, sales order planning and customer service) and not just factory-floor overheads; thus it takes cost accounting beyond the traditio nal factory floor boundaries. In addition activity based costing helps in identifying the causes of increases in costs and thus it further helps in reducing costs. ABC can be used in conducting customer profitability analysis. Despite the advantages associated with activity based costing a number of criticisms have been identified. Theorists have argued that the costs of obtaining and interpreting the new information may be time consuming activity, thus it has been suggested that activity based analysis must only be introduced when there are provisions in the organisation to manage information to use in planning and/or control decisions. Secondly, it has been criticised on the grounds that many overheads do not relate either to volume or to complexity and diversity. Severe criticisms were also raised with the underlying principle of ABC, which is that activity causes cost. Proponents of this viewpoint argue that decisions cause cost or the passage of time causes costs or that there may not be any one clear cause of cost. Throughput accounting is an alternative to cost accounting based on Standard or Activity Based Costing (ABC) proposed by Eliyahu M. Goldratt. Throughput accounting claims to improve management decisions by using measurements that more closely reflect the effect of decisions on three critical monetary variables. It has originated from the Theory of constraints. Throughput accounting is an approach to accounting, which is largely in sympathy with the Just-In-Time philosophy. In essence, Throughput Accounting assumes that a manager has a given set of resources available. These comprise of existing buildings, capital equipment and labour force. Using these resources, purchased materials and parts must be processed to generate sales revenue. Thus, according to Goldratt and Cox (1984), given the above scenario, the most appropriate financial objective to set for doing this is the maximisation of throughput, which is defined as, sales revenue less direct material cost. According to Noreen et. al (1995), there are three building blocks in Goldratts theory namely, throughput1, operating expenses2 and assets3 (Goldratt 1990). and Profit is measured by throughput minus operating expenses and profitability by profits divided by assets. (Goldratt Cox 1992.). Managers are thus motivated to apply the theory of constraints (TOC) because it presents them with a new dimension of focusing their energies on cost reduction rather than on profit enhancement. From this perspective TOC is considered simple. The official definition of throughput is revenue minus total variable costs. However, some companies exclude all the other expenses, such as the variable selling and shipping costs, considering direct material the most significant factor. Thus, a simplified version of throughput accounting is also used. The visible difference between conventional and throughput accounting is the handling of direct labour, which is considered as a fixed cost. The variable cost nature of direct labour seems to be more a historical reminder than contemporary reality. In many companies, labour cost is, in practise, treated as a fixed cost. (Noreen et al. 1995.) Noreen et.al (1995) cited the example where Throughput Accounting has been successfully applied also with ABC. Southwestern Ohio Steel has implemented a pricing model based on ABC and Throughput Accounting. This model has been used to analyse and justify manufacturing cycle-time improvements. (Campbell 1995). Fritzsch (1997) argues that the essential difference between throughput accounting and ABC lies in the time horizon. ABC is recommended for strategic planning whilst, throughput accounting works better to meet short-term purposes. As the time horizons increase, the solutions produced by throughput accounting begin to look more and more like those produced by conventional cost accounting techniques. Applications of ABC in strategic planning appear to be well documented. It must be noted that ABC and Throughput Accounting are based on differing sets of assumptions that have an implicitly different time horizon thus claims of superiority of one approach over the other should be abandoned. It is however, possible to use both approaches together to achieve appropriate results. Some researchers claim that Throughput Accounting approach requires less data and effort than ABC. It is further argued that Throughput Accounting is easier to implement and operate; it sometimes provides insufficient information to guide management decisions. A frequent question is whether ABC is worth the cost or whether the TOC approach will be sufficient According to Etienne du Plooy4, Throughput Accounting is differentiated from all other types of costing systems because only the costs that are truly variable and identifiable to products, are allocated to the products or services produced. These costs are called Totally Variable Costs (TVC). All other costs that are not clearly variable with the quantity of products or services produced are pooled into Operating Expenses (OE). These costs which must also be recovered are not allocated to products. As Throughput is the rate at which the system generates money, and is calculated by subtracting the TVC from the selling price of products, Throughput Accounting puts the performance measures required to maximise business opportunity in place and thus enables management to take immediate corrective action when necessary. It has been further argued by Noreen et.al (1995) by that the ABC approach yields the same activity for the unused capacity information that Throughput Accounting yields. As a result of tracing operating expenses to products and to unused capacity, an ABC income statement provides additional information concerning the per unit profitability of each product that a Throughput Accounting income statement alone would not provide. Throughput Accounting has been considered as a perfect complement for many approaches such as the Theory Of Constraints and Total Quality Management (TQM). It is strongly believed that both labour and capital productivity are increased when Throughput Accounting is applied in organisations. It does not lead to inventory build-ups. It is considered more useful for management decision-making. It is closer to a cash flow concept of income and in its purest form it is based on the cash flows of transactions. It is applicable to any enterprise that has constraints. It is relatively inexpensive yet extremely effective. It consistently provides the right information for effective decision-making. It brings the organisation closer to its goal. To explain the difference between activity based costing and throughput accounting an example has been provided: ABC takes the information used in throughput accounting and adds monetary values. ABC differs from Throughput Accounting in that it traces resource costs to activities. After resource costs have been traced to activities, one divides the activity cost (required by ABC) by the activity capacity (required by Throughput Accounting and ABC) to arrive at the activity-charging rate (required by ABC). Next, that activity-charging rate is multiplied by the quantity of the activity costs driver demanded by each product from each activity (required by Throughput Accounting and ABC). Based on the budgeted number of units produced, each activitys budgeted production cost is compared to that activitys budgeted capacity costs to arrive at the costs of unused capacity for that activity (expressed in financial amounts by ABC and in non-financial amounts by TOC). 5 Conclusion From the preceding paragraphs it can be concluded that Activity based costing and throughput accounting approaches can be used together to achieve the best possible results for the organisation. Despite the inherent differences in the two approaches, they are both essential management accounting techniques, which will help the managers to make sound decisions regarding the future growth of the organisation. Thus in conclusion it can be said ABC and throughput accounting are both required to achieve the long term corporate objectives and for management accountants to arrive at sound managerial decisions relating to profitability of the business. BIBLIOGRAPHY [1] Eliyahu M. Goldratt and Jeff Cox, The Goal, 2nd Revised Edition, North River Press, Croton-on-Hudson, N.Y. [2] Jay S. Holmen, ABC vs. TOC: its a matter of time, Management Accounting (USA), Jan 1995 v76 n7 p37(4) [3] John B. MacArthur, From activity-based costing to throughput accounting, Management Accounting (USA), April 1996 v77 n10 p30(5) [4] John H. Sheridan, Throughput with a Capital T, Industry Week, March 4, 1991 [5] Richard V. C., Eugene J. C., and Gerald E. C., Beware the New Accounting Myths, Management Accounting, December 1989, pp.41-45. [6] Robin Cooper, Regine Slagmulder, Integrating activity-based costing and the theory of constraints, Management Accounting (USA), Feb 1999 v80 i8 p20(2) [7] Robin Cooper, Robert Kaplan, Activity-Based Systems: Measuring the Costs of Resource Usage, Accounting Horizons, September 1992, pp. 1-13.

Report of Maf 680

MAF 680 REPORT The problem faces by the Delima Enterprise Sdn. Bhd can be solve if the company implement some sort of internal control system in all activities. A system of internal control consists of policies and procedures designed to provide management with reasonable assurance that the company achieves its objectives and goals. Typically, there have three broad objectives in designing an effective internal control system, reliability of financial reporting, efficiency and effectiveness of operations and compliance with laws and regulations.Standard Operating Procedure (SOP) is one of the internal control systems that can be implemented by the company. A Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive activity followed by an organization. The development and use of SOPs are an integral part of a successful quality system as it provides individuals with the information to perform a job properly, and facilitates consistency in the quality and integrity of a product or end-result.The term â€Å"SOP† may not always be appropriate and terms such as protocols, instructions, worksheets, and laboratory operating procedures may also be used. SOPs will detail the regularly recurring work processes that are to be conducted or followed within an organization. They document the way the activities are to be performed in order to facilitate consistent conformance to technical and quality system requirements and to support data quality. They may describe, for example, fundamental programmatic actions and technical actions such as analytical processes, and processes for maintaining, calibrating, and using equipment.SOPs are intended to be specific to the organization or facility whose activities are described and assist that organization to maintain their quality control and quality assurance processes and ensure compliance with governmental regulations. SOPs should be written and documented properly for easy use and refer. If not, SOPs are of limited value. In addition, the best written SOPs also fail if they are not followed. Therefore, the use of SOPs needs to be reviewed and re- enforced by management, preferably the direct supervisor.Furthermore, the written SOPs should be put in place that is easy to see mostly for individuals who involve directly in the activities. In preparing the SOPs, the company should have a procedure in place for determining what procedures or processes need to be documented first. Those SOPs should then be written by individuals knowledgeable with the activity and the company’s internal structure. For example, in the case of Delima, Puan Balqis or Encik Salam should be the suitable person for this task. The other way is, they can also create a group or team for preparing SOPs.By using SOPs, the Delima should be able to prevent the mistake as well as errors in performing the operations. In terms of sales, for example, the employee will know what to do from the time of receiving orders until producing the invoice even if he or she do have any special skills in that area. Hence, SOPs should be prepared in a simple way, so that, individuals with basic understanding can understand. Another internal control that can be implementing by Delima Enterprise is Segregation of Duties. Segregation of duties is a concept of having more than one person to complete the task.It is basically to have one person handle only one type of task or power. Segregation of duties is critical to effective internal control because it reduces the risk of mistakes and inappropriate actions. It helps fight fraud by discouraging collusion. Example of segregation of duties such as the person who requisitions the purchase of goods or services should not be the person who approves the purchase. Regarding the Delima case, Puan Hashimah is responsible for approval of employee’s timesheet as well as payment of salaries.Supposedly, she only given the approval of the timesheet only, and the payment should be done by other person such as human resource personnel. So, when Delima implementing a proper internal control system as mention above, its can prevents and avoid any major mistake happens. Because, SOPs for example, it has given the instruction about the procedures to be done. Also, when implementing the segregation of duties or powers it can prevent a person from able to do frauds because the concept of one person with one task only AGMCORPORATE GOVERNANCE †¢Cik Amy do not have enoughknowledge and experience inher field of work. †¢ Company should provideguidance and training to newemployees. †¢ Management should hiresomeone that is capable indoing his work. NO STANDARD OPERATINGPROCEDURE (SOP) †¢ Withdrawal of company’smoney made without properdocumentation. †¢ Decision and authorizationmade by the directors on itsown without properdocumentation †¢ It will increase the risk of fraudand inconsistency in performingtask †¢ Give the auditor hard time tokeep track of the transactionand movement of asset. Delima should implement standardoperating procedure (SOP) : †¢Increase efficiency andconsistence in performing task †¢ Indicate compliance in theentity requirements and can beused to train others LACK OF COMPETENCY †¢ Head of department leaded byunqualified staff †¢ Does not spend on training of staff †¢ Decrease companyperformance as a whole †¢ Discredit the companyreputation †¢ Spend more on training toequip employee with properknowledge †¢ Should hire qualified staff thathave experience †¢ Employees manually preparedtheir timesheets. †¢ No staff in charge and monitoremployee attendance. †¢ Staff take advantage overthe slackness †¢ Decrease in companyperformance †¢Ã¢â‚¬ ¢Install automated timeattendance5 C’S CREDITWORTHINESSThe 5 key elements a borrowershould have in order to obtaincredit : 1. Character a Integrity / a borrower’s reputation 2. Capacity a company’sborrowing history 3. Capital a Net worth 4. Collateral a Assets to securethe debt 5. Conditions a Of the borrowerand the overall economyEg. interest rate and amount of principalRECORDING †¢ Several assets purchased bythe company were notrecorded †¢ Every asset purchased must berecorded manually andcomputerized. †¢ Assign person(s) to beresponsible for the companyassets. †¢ Create an Asset ManagementDivision. †¢Propose the Asset TaggingSystem. LEAN ORGANIZATION †¢ Lean organization with basicfunctional position †¢ Position & function should beclarified clearly. ACADEMIC QUALIFICATION †¢ Did not meet academicqualification or relevantexperience that required bythe company †¢ Hire people that have goodacademic qualifications &relevant experiences. STATUTORY AUDIT †¢ Company did not perform theStatutory Audit †¢ Only legal to Public ListedCompany. Not compulso ry forPrivate Company to performS. A †¢ Private Companies may needto do so when applying forloans and etc from FinancialInstitutions. AUDITOR’S DUTIES ANDRESPONSIBILITIES †¢Encik Zayed tried to negotiateauditor to make unqualifyreport †¢ Sec 174(2)Express opinion in report (dutyto report defects, irregularitiesin account) †¢ Sec 174(3)Report particulars of deficiency, failure andshortcomingPROBLEM IN FINANCE DIVISION †¢ Invoice not pre-numbered †¢ Appoint new finance managerto authorize and supervise †¢ Company did not sendStatement of Account(SOA) toclient †¢ Not prepare monthlyreconciliation †¢ Use company’s money forpersonal use †¢ No segregation of dutiesfinance department †¢ Separate duties according towork position †¢ Emphasize the separate legalentity conceptACCOUNTING SYSTEM MYOB Software not integrated †¢ Purchase new software †¢ Eg: UBS, SAP Software,Ramcon Engineering,Autocount,etcPROBLEM IN HUMAN RESOURCEDIVISION †¢ Pay wages weekly withoutemployees benefit †¢ Unqualified staff (lack of knowledge and experience) †¢ Lack of employees andunbalance staff allocation †¢ Pay wages in monthly basisincluding EPF and Socso †¢ Provide training and seminarfor staff †¢ Assign more staffs withqualification †¢ And re-organise chartWere there any abuses of power bymanagement and breach of fiduciaryon the part of the directors? YESWho should be held responsible andaccountable?NOT ONLY DIRECTOR, ALLMANAGEMENT LEVEL SHOULDBE RESPONSIBLE ANDACCOUNTABLECould the Audit be completed soonwithout any qualification? †¢ Yes, the audit report can beclassified as qualified opinionreport due to severalunresolved issues. If theauditor audited the rest of thefinancial statements and isreasonably sure that theyconfirm with GenerallyAccepted Accounting Priciples(GAAP), then the auditorsimply states that the financialstatements are fairlypresented, with the ex ceptionof the issues which could notbe audited. What should be done to improve theleadership and management of Delima Enterprise Sdn Bhd? SUME JAWAPAN DIATAS†¦ Report of Maf 680 MAF 680 REPORT The problem faces by the Delima Enterprise Sdn. Bhd can be solve if the company implement some sort of internal control system in all activities. A system of internal control consists of policies and procedures designed to provide management with reasonable assurance that the company achieves its objectives and goals. Typically, there have three broad objectives in designing an effective internal control system, reliability of financial reporting, efficiency and effectiveness of operations and compliance with laws and regulations.Standard Operating Procedure (SOP) is one of the internal control systems that can be implemented by the company. A Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive activity followed by an organization. The development and use of SOPs are an integral part of a successful quality system as it provides individuals with the information to perform a job properly, and facilitates consistency in the quality and integrity of a product or end-result.The term â€Å"SOP† may not always be appropriate and terms such as protocols, instructions, worksheets, and laboratory operating procedures may also be used. SOPs will detail the regularly recurring work processes that are to be conducted or followed within an organization. They document the way the activities are to be performed in order to facilitate consistent conformance to technical and quality system requirements and to support data quality. They may describe, for example, fundamental programmatic actions and technical actions such as analytical processes, and processes for maintaining, calibrating, and using equipment.SOPs are intended to be specific to the organization or facility whose activities are described and assist that organization to maintain their quality control and quality assurance processes and ensure compliance with governmental regulations. SOPs should be written and documented properly for easy use and refer. If not, SOPs are of limited value. In addition, the best written SOPs also fail if they are not followed. Therefore, the use of SOPs needs to be reviewed and re- enforced by management, preferably the direct supervisor.Furthermore, the written SOPs should be put in place that is easy to see mostly for individuals who involve directly in the activities. In preparing the SOPs, the company should have a procedure in place for determining what procedures or processes need to be documented first. Those SOPs should then be written by individuals knowledgeable with the activity and the company’s internal structure. For example, in the case of Delima, Puan Balqis or Encik Salam should be the suitable person for this task. The other way is, they can also create a group or team for preparing SOPs.By using SOPs, the Delima should be able to prevent the mistake as well as errors in performing the operations. In terms of sales, for example, the employee will know what to do from the time of receiving orders until producing the invoice even if he or she do have any special skills in that area. Hence, SOPs should be prepared in a simple way, so that, individuals with basic understanding can understand. Another internal control that can be implementing by Delima Enterprise is Segregation of Duties. Segregation of duties is a concept of having more than one person to complete the task.It is basically to have one person handle only one type of task or power. Segregation of duties is critical to effective internal control because it reduces the risk of mistakes and inappropriate actions. It helps fight fraud by discouraging collusion. Example of segregation of duties such as the person who requisitions the purchase of goods or services should not be the person who approves the purchase. Regarding the Delima case, Puan Hashimah is responsible for approval of employee’s timesheet as well as payment of salaries.Supposedly, she only given the approval of the timesheet only, and the payment should be done by other person such as human resource personnel. So, when Delima implementing a proper internal control system as mention above, its can prevents and avoid any major mistake happens. Because, SOPs for example, it has given the instruction about the procedures to be done. Also, when implementing the segregation of duties or powers it can prevent a person from able to do frauds because the concept of one person with one task only AGMCORPORATE GOVERNANCE †¢Cik Amy do not have enoughknowledge and experience inher field of work. †¢ Company should provideguidance and training to newemployees. †¢ Management should hiresomeone that is capable indoing his work. NO STANDARD OPERATINGPROCEDURE (SOP) †¢ Withdrawal of company’smoney made without properdocumentation. †¢ Decision and authorizationmade by the directors on itsown without properdocumentation †¢ It will increase the risk of fraudand inconsistency in performingtask †¢ Give the auditor hard time tokeep track of the transactionand movement of asset. Delima should implement standardoperating procedure (SOP) : †¢Increase efficiency andconsistence in performing task †¢ Indicate compliance in theentity requirements and can beused to train others LACK OF COMPETENCY †¢ Head of department leaded byunqualified staff †¢ Does not spend on training of staff †¢ Decrease companyperformance as a whole †¢ Discredit the companyreputation †¢ Spend more on training toequip employee with properknowledge †¢ Should hire qualified staff thathave experience †¢ Employees manually preparedtheir timesheets. †¢ No staff in charge and monitoremployee attendance. †¢ Staff take advantage overthe slackness †¢ Decrease in companyperformance †¢Ã¢â‚¬ ¢Install automated timeattendance5 C’S CREDITWORTHINESSThe 5 key elements a borrowershould have in order to obtaincredit : 1. Character a Integrity / a borrower’s reputation 2. Capacity a company’sborrowing history 3. Capital a Net worth 4. Collateral a Assets to securethe debt 5. Conditions a Of the borrowerand the overall economyEg. interest rate and amount of principalRECORDING †¢ Several assets purchased bythe company were notrecorded †¢ Every asset purchased must berecorded manually andcomputerized. †¢ Assign person(s) to beresponsible for the companyassets. †¢ Create an Asset ManagementDivision. †¢Propose the Asset TaggingSystem. LEAN ORGANIZATION †¢ Lean organization with basicfunctional position †¢ Position & function should beclarified clearly. ACADEMIC QUALIFICATION †¢ Did not meet academicqualification or relevantexperience that required bythe company †¢ Hire people that have goodacademic qualifications &relevant experiences. STATUTORY AUDIT †¢ Company did not perform theStatutory Audit †¢ Only legal to Public ListedCompany. Not compulso ry forPrivate Company to performS. A †¢ Private Companies may needto do so when applying forloans and etc from FinancialInstitutions. AUDITOR’S DUTIES ANDRESPONSIBILITIES †¢Encik Zayed tried to negotiateauditor to make unqualifyreport †¢ Sec 174(2)Express opinion in report (dutyto report defects, irregularitiesin account) †¢ Sec 174(3)Report particulars of deficiency, failure andshortcomingPROBLEM IN FINANCE DIVISION †¢ Invoice not pre-numbered †¢ Appoint new finance managerto authorize and supervise †¢ Company did not sendStatement of Account(SOA) toclient †¢ Not prepare monthlyreconciliation †¢ Use company’s money forpersonal use †¢ No segregation of dutiesfinance department †¢ Separate duties according towork position †¢ Emphasize the separate legalentity conceptACCOUNTING SYSTEM MYOB Software not integrated †¢ Purchase new software †¢ Eg: UBS, SAP Software,Ramcon Engineering,Autocount,etcPROBLEM IN HUMAN RESOURCEDIVISION †¢ Pay wages weekly withoutemployees benefit †¢ Unqualified staff (lack of knowledge and experience) †¢ Lack of employees andunbalance staff allocation †¢ Pay wages in monthly basisincluding EPF and Socso †¢ Provide training and seminarfor staff †¢ Assign more staffs withqualification †¢ And re-organise chartWere there any abuses of power bymanagement and breach of fiduciaryon the part of the directors? YESWho should be held responsible andaccountable?NOT ONLY DIRECTOR, ALLMANAGEMENT LEVEL SHOULDBE RESPONSIBLE ANDACCOUNTABLECould the Audit be completed soonwithout any qualification? †¢ Yes, the audit report can beclassified as qualified opinionreport due to severalunresolved issues. If theauditor audited the rest of thefinancial statements and isreasonably sure that theyconfirm with GenerallyAccepted Accounting Priciples(GAAP), then the auditorsimply states that the financialstatements are fairlypresented, with the ex ceptionof the issues which could notbe audited. What should be done to improve theleadership and management of Delima Enterprise Sdn Bhd? SUME JAWAPAN DIATAS†¦

Nonverbal Communication - 1553 Words

Communication is a common necessity among people. Communication is needed in order to interact with other people in almost everything within day to day life. Communication can be viewed in two subdivisions, verbal communication and nonverbal communication. Verbal communication is based on using words and sounds to communicate with another person. Oppositely we have nonverbal communication, which is communication through sending and receiving wordless clues. Examples of nonverbal communication can include things like gestures, facial expressions, hugging, and shaking of hands. This literature review will further examine the history of nonverbal communication, the abilities of its use, how much of communication is nonverbal, why people use†¦show more content†¦696-697). Darwin believes our emotions are interlaced with our body and work as one to send signals to people. Nonverbal communication has the ability to reveal a person’s state of mind without them being aware or having conscious control over things such as facial expressions, eye movement, and gestures. Nonverbal communication also has the ability to alter the meaning or understanding of the verbal message for example, winking at the end of your sentence. The mid-1960s saw an outburst of research in many areas of nonverbal communication. During this period of research there was a great deal of excitement concerning the influence of nonverbal cues. Early empirical work aimed to make the argument that nonverbal behavior should not be discounted. Many studies were published exhibiting nonverbal communication affecting peoples reactions. However, an important element had been left out. Theoretical models and/or integrative studies were relatively uncommon, leaving behind unanswered and seemingly unrelated information. Suddenly, an influx of scholarly volumes in psychology appeared summarizing the growing body of research. Written work was published such as Nonverbal Communication (Weitz, 1979) and other popular books including Body Language (Fast. 1970), which focused on how to use nonverbal communication to attract other people, and How to Read a Person Like a Book (Nierenberg Calero, 1971) which examined nonverbal behavior in negotiation situations.Show MoreRelatedNonverbal Communication As An Intercultural Communication1325 Words   |  6 PagesThere are many definitions for the term, â€Å"communication†. According to Samovar, Porter, McDaniel, and Roy (2015), communication is the ability to share ideas and feelings, and is the basis of human contact. Communication can also be defined as the process of transmitting information and common understanding from one person to another (Keyton, 2011). In my own words, I would define communication as sending and receiving message through verbal and nonverbal modes between individuals or groups. Read MoreVerbal Communication : Nonverbal Communication1428 Words   |  6 Pages The real communication is just based on the words we communicate with each other to deliver our messages and intentions. However, after taking this class it is quite clear to me that communication is not just verbal communication but nonverbal as well. After taking this course, I have become able to understand the nonverbal aspects in each and every communication, I use to encounter with or actions I use to see or experience. This course lets me understood that nonverbal communication covers severalRead MoreVerbal and Nonverbal Communication1472 Words   |  6 Pagesresearch done on verbal and nonverbal communication. First, we need to know what verbal and nonverbal communication is. Nonverbal communication is the way in which people communicate, intentionally or unintentionally, without words. Nonverbal communication uses nonverbal cues including facial expressions, tone of voice, gestures, body position, movement, the use of touch, and gaze (Aronson, Wilson, Akert, 2013). Verbal communication is what a person actually says. This communication relies on the wordsRead More Nonverbal Communication Essay850 Words   |  4 Pages   Ã‚  Ã‚  Ã‚  Ã‚  Found information states that â€Å"nonverbal communication is the process of transporting messages through behaviors, physical characteristics and objects†. Its how and what we use in order to express our feelings and say things. Using symbols is a way of using nonverbal communication. Also nonverbal communication is the way we use body language and gestures too. Nonverbal communication is often used unconsciously. When using the certain communication it can be misinterpreted also. There are manyRead MoreThe Origin Of Nonverbal Communication947 Words   |  4 Pagesprofessor Albert Mehrabian and Susan R. Ferris, that concluded that 93% of communication is considered nonverbal. Nonverbal communication can be anything from tone of voice, body language, and anything that doesn t come out of your mouth basically. Nonverbal communication varies across cultures and sexes and is an essential part of our world. Knowing the facts about how we communicate and the w ay we react to communication is important to increase trust, clarity, and add interest to your presentationRead MoreNonverbal Communication Essay1569 Words   |  7 PagesNonverbal communication is the process of sending and receiving messages without using words, either spoken or written. And it is also called manual language. Similar to the way that italicizing emphasizes written language, nonverbal behavior may emphasize parts of a verbal message. 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Communication can be through gestures and touch, body language, posture, facial expression, or eye contact. Face to face interactions of nonverbal communication can be classified into three areas: environmental conditions, physical characteristics of the communicators, and behaviors of communicators during the interaction. Approximately two thirds of all communicationRead MoreAn Article On Nonverbal Communication1646 Words   |  7 PagesWarren Stewig in an article published in the professional journal Language Arts provides an excellent commentary on nonverbal communication. His article is an exceptional example of academic writing that has been formatted as a primer or tool to be used by other educators. Professor Stewig provides a breakout of how much of a given message can be considered verbal and how much nonverbal. 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Steroids Is A Synthetic Form Of The Male Hormone...

Dominic Muscari AC English 12 Hendricks 3/14/16 Steroids in Sports Do you know what proper steroid use can do for you in sports? Steroids are a synthetic form of the male hormone testosterone and can help your body be the best that it can be and improve your game. Steroids have been used as early as 776 BC in the original Olympic Games by the ancient Greeks to enhance their performance. There are many different forms of this drug some you take by mouth and some you have to inject and when used responsibly there can be endless benefits, but when used irresponsibly the drug can cause serious damage to the body and in severe cases it can cause death. There are already many forms of legal steroids called test booster, this supplement boosts the testosterone levels in the body for muscle growth. Test boosters are much milder than actual steroids but they are still considered steroids. Steroids are great at speeding up the recovery of your muscles, it does this with the male hormone testosterone. Some of the steroids you can take by mou th are Anadrol, Anavar, Dianabol, Halotestin, and Primobolin. Some of the popular injectable steroids are Stanozolol, Enanthate, Propionate, and Cypionate. I think that steroids should be allowed in today s sports only for the fact that it speeds up muscle recovery and muscle growth. An athlete s career is short enough as it is, with the proper use of steroids it can help them recover from an injury faster that could possibly end theirShow MoreRelatedSelf Esteem And Body Image Problems1491 Words   |  6 PagesLow self-esteem and body image problems are too much to handle alone for some teens. A few may become depressed and lose interest in activities or friends. Some go on to develop eating disorders or body image disorders, or use alcohol or drugs to escape feelings of low worth. It can be tempting to compare ourselves with others. The trouble with that is, not everyone grows or develops at the same time or in the same way. Media images and other outside influences can affect one s psyche. Some parentsRead MoreThe Increased Use of Steroids in Athletics Essay867 Words   |  4 PagesThe Increased Use of Steroids in Athletics In the past three decades, steroids have become a serious problem in the athletic field. The demand for it has increased within recent years and the prices shot up since the mid-1980s. The smuggling of steroids into the United States increases every year. The methods have become easy. Simple methods such as stashing it inside a teddy bear, sneaking it across the Mexican border inside shampoo bottles have workedRead MoreThe Safety of Using Anabolic Steroids Essay example1527 Words   |  7 Pagesof Using Anabolic Steroids Even if you didnt have any or little knowledge of steroids and were asked this question, you would probably answer no. Why? Would it be because a high school kid somewhere in California died from taking them? Or would it be because you read it in Readers Digest? Many people think you are selling your soul to the devil when you take steroids. There is an incredible amount of myths, misinformation, and misconceptions about anabolic steroid use and their dangersRead MoreEssay on Steroids772 Words   |  4 Pagesmuscular build? Have you ever thought steroids would be a helpful tool in doing so? If you have you must know that steroids are a deadly and illegal drug. After reading my paper I hope that the thought of using steroids will leave your mind forever and encourage you to keep others of them. To understand why you should stay off steroids you must first know what steroids are. The steroid of which you hear most are called, â€Å"anabolic steroids.† This kind of steroid is called anabolic because anabolicRead MoreAthletes Use Drugs For A Variety Of Reasons1194 Words   |  5 Pagesperformance enhancing drugs can have long term effects on an individual’s life. A commonly used drug in athletes goes by the name of anabolic steroids. The best way to help clarify your understanding of the importance of anabolic steroids is to define these steroids as a synthetic way to acquire the male sex hormone testosterone. The proper name for these steroids are anabolic androgenic steroids of which â€Å"anabolic† refers to muscle building and â€Å"androgenic† refers to increasing male sex characteristicsRead More Anabolic Steriods Essays1261 Words   |  6 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;Anabolic Steroids are synthetic compounds formulated to be like the male sex hormone testosterone. Many athletes use anabolic steroids male and female alike, such as body builders, weightlifters, baseball players, football players, swimmers, and runners. They do so because they mistakenly believe that they will gain strength and size. In a male, testosterone is released by the leydig cells in the testes. nbsp;nbsp;nbsp;nbsp;nbsp;The testosterone has two main functions androgenicRead MoreEssay on Steroids2116 Words   |  9 Pages Steroids Testosterone was often referred to as the quot;male hormonequot;, It is responsible for the development of the male characteristics such as lowering of the voice, hair growth, and because the male body produces much more of it than the female. However, it is responsible for stimulating quite a few other processes. Steroids are a very large class of compounds, which occur in all animalsalso. The steroids used by athletes are mostly androgenic steroids: steroids, which act like testosteroneRead MoreThe Use of Performance Drugs in Sports Essay1024 Words   |  5 Pagesgood at the sport? Performance drugs in sport should not be tolerated and should be illegal. Stores shouldnt give teenagers drugs that way they can do well in a sport. Many student athletes want to make their families proud by doing something their mom or dad never done. Most serious athletes will tell you that the competitive drive to win can be fierce. Besides the satisfaction of personal accomplishment, athletes often pursue dreams of winning a medal for their country or securing aRead MoreEssay on Anabolic Steroids1716 Words   |  7 Pages Anabolic Steroids nbsp;nbsp;nbsp;nbsp;nbsp;Anabolic steroids are synthetic coumpounds formulated to be like the male sex hormone testosterone. Many athletes use anabolic steroids male and female alike, such as body builders , weightlifters, baseball players, football players, swimmers, and runners. They do so because they mistakenly believe that they will gain strength and size. nbsp;nbsp;nbsp;nbsp;nbsp;In a male testosterone is released by the leydig cells in the testes. The testosteroneRead More The History of Steroids: The Legal and Illegal Usage of Steroids1466 Words   |  6 PagesThe use of steroid by athletes has been a controversial issue for some time. One can argue that the usage is totally wrong and it is against the morals and the rules of the games. Although steroids boost up the process of muscle building and endurance, it also has complications in the long run. Those that cheat their way by using and or abusing such chemicals can have serious health defects. A real athlete should work his/her way with hard work and the correct training to build that endurance and

The Purple Color By Alice Walker - 1216 Words

The Color Purple Alice Walker wrote the book The Purple Color early in the year 1983 describing Africa America culture. The book is fictional and portrays perceived lifestyle of the African America society back in the ancient times where the genders roles and responsibilities were not as diverse as currently. The book majorly uses people and their actions to develop the theme and covey its message. The essay below explores vividly two symbolic and non-symbolic action or objects giving in details their explanations. Symbolic objects/actions Beating is symbolic in the book. â€Å"After a dissention, Sofia retaliated and inflicted major injuries on Harpo† (Walker 26). As indicated in the statement, women had developed to fight for their rights. In the ancient times, they were perceived to be powered, weak and incapable of revenge. They had to display humility, respect and submission regardless of the treatment received from their husbands. Any form of discussion to solve any emerging issue was dismissed and men made all the major decisions. Women also lived in perpetual fear to prevent reproach from their husbands. Beating was common in the ancient times as a way of men enforcing their wishes. As indicated in the book, the statement â€Å"Shug purposed to stay upon discovering the beating received by Celie when she had left† (Walker 30), is a sign of exploitation that befell on women. However, the beatings that lead to injuries in Harpo by Sofia indicate the change of events and theS how MoreRelatedThe Color Purple By Alice Walker1355 Words   |  6 PagesDecember, 2015 Just A Single Purple Wildflower In A Field Of Weeds Alice walker once said, â€Å"No person is your friend (or kin) who demands your silence, or denies your right to grow and be perceived as fully blossomed as you were intended. Or who belittles in any fashion the gifts you labor so to bring into the world.† The color purple has timelessly been used to convey pictures of power and ambition, it is also associated with the feeling of independence. The Color Purple is the story of the constantRead MoreThe Color Purple By Alice Walker710 Words   |  3 PagesThe Series of unfortunate events in The Color Purple The Color Purple by Alice Walker starts off with a rather graphic view of a young black woman denominated as Celie. Celie has to learn how to survive her abusive past. She also has to figure out a way she can release her past in search of the true meaning of love. Alice walker wrote this book as an epistolary novel to further emphasize Celie`s life events. From the beginning of the novel Alice Walker swiftly establishes an intimate contact withRead MoreThe Color Purple by Alice Walker1192 Words   |  5 Pagesas a novel containing graphic violence, sexuality, chauvinism, and racism, The Color Purple was banned in numerous schools across the United States. Crude language, brutality, and explicit detail chronicle the life of Celie, a young black woman exposed to southern society’s harshness. While immoral, the events and issues discussed in Alice Walker’s The Color Purple remain pervasive in today’s society. The Color Purple epitomizes the hardships that African A mericans faced at the turn of the centuryRead MoreThe Color Purple by Alice Walker675 Words   |  3 Pagesthe world exist for their own reasons. They were not made for humans any more than black people were made for white, or women created for men.† Straight from the mouth of Alice Walker this quote was spoken in order to point out that fact that none of God’s creatures were put on this Earth to be someone else’s property. Alice Walker is an African-American novelist and poet who took part in the 1960’s civil rights movement in Mississippi. Walkers creative vision was sparked by the financial sufferingRead MoreThe Color Purple by Alice Walker921 Words   |  4 PagesAlice Walker’s realistic novel, The Color Purple revolves around many concerns that both African American men and women faced in an era, where numerous concerns of discrimination were raised. Religious and gender issues are confronted by the main characters which drive the plot and pa int a clear image of what life may possibly have been like inside an African American home. Difficulties were faced by each and every character specifically Celie and Nettie who suffered heavy discrimination throughoutRead MoreThe Color Purple By Alice Walker1540 Words   |  7 Pages Alice Walker is an award winning   author, most famously recognized for her novel   The Color Purple ;aside from being a novelist Walker is also a poet,essayist and activist .Her writing explores various social aspects as it concerns women and also celebrates political as well as social revolution. Walker has gained the reputation of being a prominent spokesperson and a symbolic figure for black feminism. Proper analyzation   of Walker s work comes from the   knowledge on her early life, educationalRead MoreThe Color Purple By Alice Walker3360 Words   |  14 Pagesâ€Å"Womanist is to feminist as purple is to lavender† (Yahwon). Alice Walker views herself as a womanist. Although a womanist and feminist are similar, the two terms are not exactly the same. According to Professor Tamara Baeouboeuf-Lafonant: [Womanism] focuses on the experiences and knowledge bases of black women [which] recognizes and interrogates the social realities of slavery, segregation, sexism, and economic exploitation this group has experienced during its history in the United States. FurthermoreRead MoreThe Color Purple by Alice Walker1100 Words   |  5 PagesThe Color Purple by Alice Walker is a story written in 1982 that is about the life struggles of a young African American woman named Celie. The novel takes the reader through several main topics including the poor treatment of African American women, domestic abuse, family relationships, and also religion. The story takes place mostly in rural Georgia in the early 1900’s and demonstrates the difficult life of sharecropper families. Specifically how life was endured from the perspective of an AfricanRead MoreThe Color Purple by Alice Walker926 Words   |  4 PagesThe award-winning novel, â€Å"The Color Purple† by Alice Walker, is a story about a woman going through cruel things such as: incest, rape, and physical abuse. This greatly written novel comes from a very active feminist author who used many of her own experiences, as well as things that were happening during that era, in her writing. â€Å"The Color Purple† takes place in the early 1900s, and symbolizes the economic, emotional, and social deprivation that African American women faced in Southern statesRead MoreThe Color Purple By Alice Walker1495 Words   |  6 PagesThe Color Purple, is a novel written by the American author Alice Walker. The novel won the 1983 Pulitzer Prize for Fiction and is also regarded to be her most successful piece of work. It has developed into an award winning film and was recently made into a Broadway play. The story continues to impress readers throughout the decades due to its brutal honesty. The novel successfully and truthfully demonstrates what life was like for black women during the early twentieth century. The book discusses

Ethical Dilemmas †Abortion Free Essays

In our society, there are many ethical dilemmas that we are faced with that are virtually impossible to solve. One of the most difficult and controversial issues that we are faced with is abortion. There are many strong arguments both for and against the right to have an abortion which are so complicated that it becomes impossible to resolve. We will write a custom essay sample on Ethical Dilemmas – Abortion or any similar topic only for you Order Now The complexity of this issue lies in the different aspects of the argument. The essence of a person, rights, and who is entitled to these rights, are a few of the many aspects which are very difficult to define. There are also issues of what circumstances would justify abortion. Because the issue of abortion is virtually impossible to solve, all one can hope to do is understand the different aspects of the argument so that if he or she is faced with that issue in their own lives, they would be able to make educated and thoughtful decisions in dealing with it. The definition of a person is an aspect of the abortion issue which raises some very difficult questions. Is an unborn baby a person When does the unborn baby become a person This is a difficult question because in order for one to answer it, he must define the essence of a person. When describing the essence of something, one needs to escribe the necessary and sufficient conditions of that thing. So how does one define the essence of a person Kant describes a person as a rational being. Some people define the essence of a person from more of a biological standpoint. Nevertheless, defining the essence of a person is a very difficult thing for a group of people to agree on. One own definition of a person would most likely greatly impact his opinion on whether abortion is morally justified or not. This becomes even more complicated when one takes into account potentiality. This raises the question of whether the fetus is an actual person r a potential person. Many would argue that a fetus is a potential person because it is has the potential to become what it is not yet. However, does a potential person have potential rights An example was used: does a potential doctor have the rights of a licensed doctor When one is describing potentiality, All he is really describing is what that thing is not. By declaring that a fetus is a potential person, one is also stating that a fetus is not a person. As one can see, this issue of the essence of a person and whether a fetus is a person is a very complicated one. This becomes seven more omplicated if one takes into account the issue of rights. Now, the concept of human rights, that is to say, what American society dictates as human rights, conflicts heavily with itself. On one hand, we form a deep and heavy opinion on one s right to life. On the other, we hold an equally strong opinion on one s freedom to live that life as they please. American society by and large has a firm belief in an individuals right to live. Therefore, if one comes to the conclusion that a fetus actually is a person, then that fetus should receive the protection to it s right to live, as much as you or I. This society also olds the firm belief in one s right to the sovereignty of his or her own body, equal to that of one s right to live. In this case, it is imperative that we understand what liberties we can and cannot take upon ourselves concerning our lives. Case in point, suicide. Society dictates what we are allowed to do, and how we are allowed to live, by law. Most of American laws are written to preserve one s rights to individuality, and one s right to take the liberty to live their lives as they see fit. However, laws are also written to undermine those who s actions compromise the liberties and freedoms of ther individuals, thus protecting the concepts and ideals of agency and liberty. Based on our society s laws, essentially, we believe that what you do to yourself is your choice, and is accepted by law, so long as it doesn stop or impede the lives and freedoms of others. The difficulty in this dilemma lies within the question of whether an abortion falls into a category of protection of a woman s right s over the sovereignty of her own body, or whether it falls into a different category of an action which is not permissible because, according to some people, the fetus is a person whose life and freedom is being ompromised. The question of rights is further complicated by the different circumstances where the abortion issue could be raised. Many people would argue that abortion should not be used as birth control or as a means to deal with the consequences of promiscuous sex. However, how does one address the abortion issue in the circumstance of rape or incest Many say that in these circumstances, abortion is justified. The confusing thing is that the outcome is the same in both circumstances. The fetus is being denied its right to live and grow to its potential as a human being. Where does one draw the line What about case where there is medical complications For example: a woman becomes pregnant and goes to the doctor for an examination. During the doctor visit, various tests are run and it is discovered that the baby will be born severely deformed and that its quality of life would be extremely substandard. If the woman were to have an abortion, would it be justified What about a situation where a woman becomes pregnant and she does to the doctor and is told that the baby is deformed and the birth would most likely kill the mother. The argument justifying abortion in this case goes back to the right to physical sovereignty ver one s own body. A person has the freedom to do what he or she wants to concerning their own body as long as it does not harm or compromise the freedom of another, except in self defense. Therefore, in the case of the mother who would most likely die in childbirth, an abortion could be justified because she is acting in self defense. And in the case of rape, many argue that an abortion is also justified because the woman s right to not conceive has been violated, therefore she should not be responsible for the consequences which came through no fault of her own. As on can see, the issue of abortion is on e that is xtremely complicated. The problem being that many of the ethical dilemmas involved in the abortion issue are so closely intertwined that they are difficult to distinguish from one another. There are some aspects of the issue that would convince most people that abortion is justified, however when those aspects are combined with other intertwining aspects and imperatives, justification oftentimes becomes impossible. In conclusion, the issue of abortion is so complicated and controversial that it is unlikely that a consensus could be reached by American society. There are too many aspects of he issue which peoples views vary to widely. Some of these issues could be things such as the definition of a person, is the fetus a person, and if so when does it officially become a person. There is also the issue of rights. Do the rights of a person outweigh the rights of a non person. Does the right of a mother s sovereignty over her body outweigh the right of an unborn child to live. The answers to these questions are very diverse as a result of the diversity of the American society. With the issue of abortion, one s attitude toward it is going to be based on many things such as religious background and ersonal morals. There is no black and white answer to the abortion issue. Luckily we live in a country where we are able to decide for ourselves whether something is morally right or wrong. Thus, ultimately, the choice is ours. As with the many other ethical issues which we are faced with in our society, it is hard to come to a concrete answer until we are personally faced with that issue. All we can do is make an effort to know all of the aspects which are involved so that we may be able to make a sound decision if we were faced with this problem in our own lives. How to cite Ethical Dilemmas – Abortion, Essay examples

Method of Financing

Question: Critically discuss the various factors which you would consider in deciding upon the method of financing a new project. Answer: Introduction The sustainability in the business is dependent on the investment made in the different projects and the return generated on this investment. One of the most important resources that are required for the businesses is the financing of the businesses. Various options are available for entrepreneurs or the business owners to ensure the availability of adequate capital for the business. It is important to note that the financing of the projects is very critical and scarce resources that require proper planning and coordination. Banks and financial institutions frequently employ different appraisal techniques before sourcing any new project. Irrespective of the economic conditions the banks are approached for financial requirements. Thus it is very important to ensure the financial viability of the project. The essay discusses the various factors, which need to be considered in deciding upon the method of financing a new project. Based on the discussion of this factor it may not be a clear difference between the various aspects that have been discussed but it is certainly the basis of ensuring which financing method will be more suitable in comparison to others. Discussion and Analysis Maintaining suitable capital structure is the important aspect related to financing of the business. The business that have huge potential and optimistic forecast for the business opportunities has more financing opportunities in the form of debt. In order to ensure to select the suitable financing method various factors need to be considered in deciding upon the method of financing a new project. These have been discussed below Pros and Cons of financing methods The two broad categories of financing are equity and debt. There are several options, under these categories, that are available for financing. These include venture capitalists, which is a form of equity and borrowing from banks which is debts. The method of financing can be a combination of both. Each type offers certain benefits and also has limitations. The debt from banks results in additional expense for payment of interest on the other hand venture capitalists or any other method of infusion of equity may result in relinquishing control over the asset, operation or business itself. It is important that the balance is maintained between the two so that excessive interest expense does not impact the cash flow which will have an effect on the operations. On the other hand excessive dependency on equity in the form of venture capitalists or Initial Public Offering (IPO) can impact the decision making. Affordability and Control The affordability and control are associated with the employing of debt and equity. In case of debt affordability is impacted whereas the equity financing impacts the control over the business. These are associated with the limitations of equity and debt financing. The equity financing that has been discussed above is related to investors however the affordability might also be there as the investors might not be interested whereas the retained earnings may not be sufficient to fulfill the needs. Industrial Factors Certain industry or business sectors have huge variations in the profitability and the fund requirements. For example certain industries may be capital intensive in the start but generate higher cash in future. Further certain industries may be there which have huge differences in cash flows during different times of operations. In order to maintain the cash flows in such cases which have been discussed above may require huge cash inflows which may be fulfilled by employing debt. Another important factor is the tax rate or subsidies that may be provide. In case of high tax rate and the subsidies debt may be employed. This will reduce the taxes that will be applicable as a result of the interest expense. Last consideration is that the investors have huge expectation from the market but it is expected that the returns will be lower. Such aspects may support the increase in preference of debt rather than employing equity in the business. Financial Goals and Risk Tolerance The financial goals and the risk tolerance capacity of the firms need to be studied. In case the owners prefer to retain the control and in doing so ensures that the share in the business is not diluted. In such cases, wherein the loans are taken, the personal risk in the business is increased. On the other hand the equity financing ensures that the risk in the business is shared by all the equity holders. Thus in case the risk tolerance of the owners is high, the equity employed will be higher than the debt is employed in the business. Considering the financial goals of the business, it is closely related to the risk tolerance of the business. The owners interest in higher returns would like to have huge operations to be there would employ more capital. In such cases debt may be employed. The businesses where the owners have high risk tolerance will be those that expect higher returns which can be ensured by employing more capital. Such capital needs are funded by the loans from the financial institutions. In case the risk tolerance is lower the financial goals will not be too high and thus the sharing of returns with other equity holders will not be an issue. The businesses that target high market share may also employ debt to increase the operations and as a result the sales. Other Factors The other factors include certain aspects that are specific to the type of financing method, future growth aspects, purpose and role of management. The factors that need to be considered specific to the financing method that are central to the debt financing are the interest rates and the repayment terms. It may be the case that debt is important to be raised in order to fulfill the capital requirements but the industrial conditions and the business or company related conditions increase the risk in the business and as a result of it the interest rates are increased and the repayment terms made a bit stringent. The future growth prospects of the business also influence the financing needs of the business. The future prospects may require the additional funding to sustain in the market. The purpose for which the company requires funds also influence the method of financing. In case it is required for investment or the capital expenditure. In such cases the company might consider short term debt options for capital expenditure or long term debt options for investment. In case equity financing is retained earnings may be considered for short term requirement whereas venture capitalist can be considered for long term requirements. Lastly the role of management is quite important as it highly influences the decision taken by the company on the financing mode. The management that is aggressive is inclined towards debt financing whereas the conservative approach of the management does not prefer debt financing. The aggressive management expects high profitability and low impact of debt on the profitability. In case of conservative approach it is believed that the profitability will be highly impacted and such expenses can be reduced by employing equity. Conclusion The complete discussion on the factors that need to be considered while deciding upon the method of financing for the new projects has been conducted. The above discussion clearly highlights how the source of funds may not impact the capital structure but also impact several aspects such as profitability, control and the returns. The role played by the various factors in the method of financing that is selected is quite interrelated. For example, as discussed above, the businesses where the owners have high risk tolerance will be those that expect higher returns which can be ensured by employing more capital. Such capital needs are funded by the loans from the financial institutions. Both risk tolerance and the financial goals are associated with the role of management. Thus overall the major factor that controls the financing decision is the management viewpoint. Certainly the other factors such as market conditions, industry conditions and the economic factors do impact the profitability but overall the management decision has the major influence. Government also does play a role and the implication of tax and subsidies does impact the financial decisions to a certain extent. Lastly the purpose of the funding has been discussed and elaborated wherein it has been mentioned that in case it is required for investment or the capital expenditure both debt and equity can be employed. In such cases the company might consider short term debt options for capital expenditure or long term debt options for investment. In case equity financing is retained earnings may be considered for short term requirement whereas venture capitalist can be considered for long term requirements. Thus overall the management role is central to the financing decision in case of new projects and the influence of both debt and equity need to be studied. After careful assessment of all the factors that have been discussed above the method of financing for the new projects need to be considered. References Brigham, E. Ehrhardt, M. (2007). Financial Management: Theory Practice. Cengage Learning. Business Economics. Jacoby, N.H. Weston, J.F. (1952). Factors Influencing Managerial Decisions in Determining Forms of Business Financing: An Exploratory Study. Conference on Research in Business Finance. Available At: https://www.nber.org/chapters/c4788.pdf. Brigham, E. Houston, J. (2015). Fundamentals of Financial Management. Cengage Learning. Business Economics.