Volcker Rule Essay Example | Topics and Well Written Essays - 500 words

Volcker Rule - Essay Example These governments argue that the rule would make it hard for them to access loans for their public operations and projects (Goldfarb and Schneider 2012, par. 1). The business community argues that the rule should be made more permissive in case it restricts the bank’s capability to procure capital and loans (Eichler 2012, par. 7). Local and state officials state that the Volcker Rule will make it more costly for them to gather money from investors to pay for expenditures such as housing assistance and environmental cleanup. Within the Washington region, the rule could influence borrowing costs for various agencies. Authorities that can be adversely affected by the rule include those that operate Dulles International airport, Reagan National airport, and the Walter E. Washington Convention Center (Goldfarb and Schneider 2012, par. 2). The European governments caution that the rule could further worsen the debt crisis which is already affecting the global financial markets. Foreign governments and municipalities are complaining that the legislation will considerably limit their purchasing of bonds by the banks. Thus, it will increase the interest rates that the issuers of bonds have to pay in order to attract investors (Goldfarb and Schneider 2012, par. 8). If the Volcker Rule would be implemented, it would indicate that the banks will have to close their prop trading desks and consequently, 10,000 employees will probably lose their jobs. There are also concerns in relation to how the United States’ banks will be able to compete with the financial institutions in Europe that are less affected by the proposed legislation. Most of the US banks’ business model will be influenced by the proposal indicating that they will have lower competitive advantage in comparison with their counterparts in Europe (Brinded 2011, p1; Lynch 2012, par. 1). The huge US banks fixed income business models offer a considerable amount of prop

Console application Coursework Example | Topics and Well Written Essays - 500 words

Console application - Coursework Example I only realized that I was running a different version from what I wanted after a series of procedures. In fixing this error, I realized that I had misspelled the data type so I had to generate a new class by going to generate new type and from a list of classes, delegates, interfaces, enumerators and structures, I chose class and through the dialogue box, I defined the new class in a new file (Utley, 2009). Runtime errors are characterized by causing application crash. During my project, this had the unassigned data type (ten to one hundred). When I added a value that exceeded the available range of data type, I got an information that the application has stopped working (crashed).To fix that, I moved to System Overflow Exceptions which then directed me to Visual Studio, showed me the code line which triggered the exception and through the Call Stack panel, I was be able to fix the error (Utley, 2002). However much it was quite demoralizing at this stage of the project, I was able to fix the problem accurately. Finally, another error challenge I met in my project was the Logic error. This type of error hinders the normal operation of a program by either producing the unintended output or the undesired result. In my project, I realized that I had incorrect type casting, miscoded fragments and variable scoping and to fix these errors, I use the w-Command –Line option which produced a message about the questionable codes and took the necessary procedure to fix the errors (Utley,

Personal Reflection In The Medicine Curriculum Personal Development Essay

Personal Reflection In The Medicine Curriculum Personal Development Essay The basic sciences are a ubiquitous component of the medical course and comprehensive understanding of all subjects is fundamental in developing a solid foundation on which to build an understanding of the clinical sciences. Like many students, my biggest issue with the transition into the tertiary education system was primarily the different teaching approach, which accommodated predominately auditory learners. Having always been a highly visual and kinesthetic learner, I found subjects such as biochemistry, physiology and microbiology very difficult to understand, not only in terms of the overwhelming vocabulary but the underlying concepts and principles. Animations I found online and through textbook supplementary resources, uncovered a whole new world of understanding for me, allowing me to physically visualise concepts which were once beyond my comprehension. Prior to each scenario I now search for online animations that can illustrate to me the basic concepts which provide me a visual framework from which I can continue my learning for that scenario. Feedback from my first two assignments concerning this capability provided very little help, it was only once I received my first P- and corresponding constructive criticism that I was Overall lacking necessary details that I strived to improve on this capability. The feedback reminded me to critically asses my resources and to be meticulous with the quality of information, improving my research technique and being more scrupulous with my information, my subsequent assignments improved in quality. This was validated by the positive feedback I received of A very clear and accurate; In all very well described and understood. After numerous lighthearted attempts to cease smoking after 3 pack years, I found the subject matter of my HM A assignment, Varenicline, a new smoking cessation drug, very interesting. Understanding the neurobiological perspective of addiction and withdrawal through the action of nicotinic acetylcholine receptors and understanding the clinical manifestation and pathology underlying serious health consequences of tobacco-related illnesses such as cancer, cardiovascular and respiratory diseases persuaded me to give a serious effort to cease smoking, whereby I could now make the connections between the pathology with clinical symptoms I was experiencing first hand. I feel this could be very useful and important when communicating with future patients, being able to explain the medical sciences underlying a condition or presenting symptom could help them understand more personally. I have noticed the latest health prevention methods on quitting smoking are following the same principle wh ereby they emphasise the association of a smokers cough and emphysema. Through Phase One I have been able to gain an appreciation of the contributions of each subject and find that no one subject is any more or less important than the next in the context of medical knowledge. A solid understanding of anatomy and histology, provide the foundations for understanding the physiological processes of human life, which set the tone for how these normal functions can go wrong through pathological disturbances which reveal themselves ultimately as clinical manifestations. I feel there is still a massive proportion of knowledge that I still have to retain, and hope through the progressive phases I gain as much basic science knowledge as I can.       Social and Cultural Aspects of Health and Disease Prior to entering the medicine course, I was oblivious to the social and cultural aspects of health and disease. It did not take long for me to realise the importance of these influences on individual health attitudes, disease progression and health care access, soon becoming my one of favourite components of the medicine curriculum. My first individual assignment assessed the role of social and cultural factors in the aetiology of eating disorders, and depression in adolescents who experienced weight-teasing. Although I found each individual case unique in regards to aetiology and contributing factors, culture, ethnicity, acculturation and socio-economic status all played important roles in disease development. Furthermore my group project analysed Gay, Lesbian and Bisexual (GLB) Youth health and perceptions in the rural community. The group project caught me off-guard, because I had realised I had completely forgotten about the rural community and through the project I discovered t he vast comparison between metropolitan health care and rural health. Living in metropolitan Sydney for twenty one years it is easy to forget about the broader community, GLBY living in conservative rural towns face problems of judgement and confidentiality issues, along with the absence or lack of access of support in rural communities which perpetuates the startling statistics of double the suicide rates and risky sexual behavior in GLBY in rural communities compared to metropolitan GLBY. Having few opportunities to experience the rural health care system, I am highly anticipating my rural placement in Phase 3.     Ã‚   My assignment on the ethics of Brain Death and Withdrawing Life Support revealed to me the ethical, legal, cultural and religious diversity in a pluralistic society where the differences between the patient and the medical team are an underappreciated barrier to effective, cooperative treatment and care especially when negotiating a sensitive and dignified process of dying. The differences in the process of ethical reasoning, cosmologies, and key moral concepts between religions must be understood and respected as a medical professional. For example Catholicism considers the withdrawal of life support acceptable if the support is merely maintaining life and merely delaying death; whereas Judaism has a rigorous commitment to the sacredness of life and Orthodox Jewish patients must accept all treatments that will preserve every possible moment of life. Understanding and appreciating these differences is mandatory living in our multicultural and pluralistic society. Although my Transplant Tourism assignment was not catergorised under this capability, I learnt a lot from it in terms of the disparity between health standards in a Newly Industrialised Economy and that of a Developed country. The donation of a kidney is often not an expression of individual autonomy and an altruistic gesture, but rather acts of desperation by impoverished individuals, exploited by a corrupt system which lacks the basic governing power to intervene. Nephrectomy, having little long term consequences when performed in a developed country, poorer living conditions, unsatisfactory professional misconduct, lack of support and medications, and poor access to medical resources and education result in a decline in health status for many donors in newly industrializing economies. As Australia grows as one of worlds largest multicultural communities, I believe this translates into our medical practice as patients who not only have specific medical conditions related to their n ationality, but specific medical experiences which can hinder effective patient management between patient and practitioner. For example my partners parents have very little faith in the health system, based on experiences they have had in their home country. Where there are few uncorrupt regulatory bodies to maintain high levels of care and professional conduct. So if a doctor acts with unsatisfactory professional misconduct, performs beyond their qualifications or engages in over servicing to increase profits, which occurs recurrently, there is little the patient can do. This perpetuates a distrust of doctors and the health system which they carry with them when they come to Australia. Culture specific management is imperative in the social context of Australia and I look forward to learning more about the different cultures, societies and religions, particularly rural health implications in Australia. Patient Assessment and Management Competent patient assessment and management is critical in providing quality health services to patients, and can determine or improve prognosis if done appropriately and effectively. The challenges of case studies within the course are thoroughly enjoyable and have allowed me to observe how the medical knowledge that we accumulate from varying aspects of medicine collaborate and integrate. This however took some time to understand, as the lack of knowledge of the clinical sciences, management methods and generally everything made amalgamating the information into a cohesive and comprehendible scenario very difficult. I feel the more knowledge I learn throughout the course, the more confident I get as I am able to make connections between previous scenarios and understand more comprehensively the patients situation. An accident involving my friend and a scooter whilst in Thailand was an experience that demonstrated to me the utmost importance of effective assessment and management. The ambulance which was called, had very minimal medical equipment, with the paramedic using used gloves to assess his open wounds, the standards of care did not improve at the medical clinic so my friend thought it best if I take him back to the hotel and I look after him myself. Using basic knowledge from classes focusing on infection prevention and using skills from my senior first aid course, I did the best I could. The experience taught me the value of being fully competent and having a wide understanding of all facets of medicine from clinical sciences, patient assessment, and social and cultural contributions to disease. Furthermore, Understanding the principles behind basic procedural skills and being able to conduct and explain to the patient proper technique behind examinations such as a spirometry is of absolute importance as I was to find out when I went to my GP for a recreational scuba diver examination. My lung function tests returned with an FEV1/FEC% of 59%, indicating I had severe chronic obstructive pulmonary disease (COPD)! The nurse corrected my technique and he had me repeat the test several times, still yielding the same result. It was not until my doctor watched me perform the test and noted the error in my technique, that I yielded a normal FEV1/FEC% of 98%. This experience made me realise the absolute importance of understanding the proper technique of assessment skills as it can make a dramatic difference in patient diagnosis and its implications and also patient confidence in both the practice and the practitioner. Effective Communication Effective communication is essential as it has positive effects on health outcomes, patient satisfaction, therapy compliance and even symptom resolution.    To my surprise I found effective communication to be my weakest capability. When I entered this course, I had little doubts about my communicative abilities, and was even somewhat arrogant towards being taught how to be an effective communicator. Rapport has always been easy for me to establish, allowing me to perform well in superficial meet/greet, factual situations such as in clinical sessions at hospital and at work as a student liaison officer. I am also comfortable communicating to groups of people, often volunteering to undertake the project presentations in scenario group and having no issues talking to complete strangers. However it was not until my communication assignment that my illusions were overturned and I was confronted with my poor communication skills when it comes to something much more meaningful and personal. I was very disappointed at my performance during the interview, although I understand the methods and principles of effective communication, demonstrated by my various Ps and P+s in written assignments, positive feedback in capabilities and my reference letter from my current employer, when I try put it into practice in an interview situation, my composure deteriorates. My nervousness and insecurities hinder me from expressing eloquently what it is I am trying to present, leading to poor inappropriate responses, and my lack of confidence and inability to juggle input and output information concurrently made my responses jumpy and ineffective. I hope with more experience in interview situations I can build my confidence and learn how to compose myself by following a suitable structure and concentrating on the patient and actively listening rather than preoccupying myself with thoughts of what should I ask next?; Am I doing this wrong?. The communications assignment revealed more to me than just my inability to communicate effectively but more so the fact that I struggle to connect with people beyond the superficial, it made me realise I had many friends, but none of which I had a substantial relationship with. I have taken on the plan to learn better communication skills which is a much more mentally demanding and complex process than simply conversing with an individual. Reaching this higher level of skill and fulfillment in living and working with others will require effort, conscious attention, and practice with other people. I can become more skillful and less clumsy, more confident and less fearful, more understanding of others and less threatened by them. To communicate more cooperatively and more satisfyingly I must learn how to participate in my conversations and observe them at the same time. I understand changes as significant as these will take years rather than over night. I hope that when given the opp ortunity to undertake a second communications assignment, I have developed my communication skills to a satisfactory level, where I can have a meaningful conversation with another person, in a coherent, comprehensive manner. Team Work   I was highly apprehensive of my first group project as teamwork was a foreign concept to me. Being a very independent and self reliant individual and having very few notable opportunities to develop my teamwork skills in the past I was unsure of the fundamental skills required to be a good team player. Most notably was my understanding of my role within a team and trusting and relying on the other members of the group. My first group project proved to be a great success both in terms of grades and self development. I learnt I could perform competently in a team environment demonstrated by the positive feedback. I felt trusting in the competency of the other members of my team was easier than I initially expected as we had an initial discussion that developed a mutual understanding of the expectations of one another as a team. However regardless the good marks yielded from the assignment I felt I had plenty to learn in regards to communication, compromising and developing a strong sense of self within a team. I felt I was too passive within the group which in hindsight made a relatively simple task a lot more difficult, lacking the confidence to speak up when I felt uncomfortable undertaking certain tasks and failing to voice concern when I needed help or was uncertain. I was not naÃÆ' ¯ve to believe that developing as a better team player would not be a challenge and it took me several projects to feel comfortable within a group, acting competently as both a contributor and even leader when necessary. I have come to understand that the unequivocal multidisciplinary nature of medicine in todays integrated society makes learning how to function and communicate effectively within a team of the up most importance. Communication, which may be across different disciplines and even languages, is the fundamental foundations necessary for well integrated successful teamwork. I felt my greatest contributions as a team member have been my enthusiasm and positive personality, encouraging other members of the team to participate and stay on track in a friendly environment. I was willing to help out with the odd jobs whenever necessary and engage with other members of the team to develop a cohesive team environment. This naturally led to me taking on a leadership role and I found that leading by example was the best method of ensuring the team stayed on track. My biggest fault as a team player initially was my inflexibility and lack of punctuality to group meetings, my inability to coordinate my time efficiently had ramifications upon the team and its progress. I have rectified the situation by making more time for my education and have realised mutual sacrifice and compromise is all part of being a good team player. Self-Directed Learning and Critical Evaluation   Self directed learning is one of those concepts I was not introduced to until I entered the tertiary education system. Like many students the transition from spoon feeding to self determination was an unexpected and confronting experience. However the development of self-directed and critical evaluation skills throughout the phase has been integral in my progress and growth as a medical student. Although highly proactive and enthusiastic, I have had a tendency to lack the motivation and perseverance to carry on with the structured learning system I devise at the beginning of each teaching block, often due to the overwhelming quantity of information and lack of strict learning objectives which lead me to often deviate from my focus. I have found it helpful to focus strictly on information provided in lectures and practicals, and only at the end of each scenario I refer to external resources for more information. Although satisfactory my negotiated assignment was not evidence of my best work, I definitely didnt put as much effort into it as with my previous assignments. I am disappointed I wasted my only opportunity to explore something that was of interest to me, and hope if given a second chance in later phases, I will take upon a negotiated assignment with more enthusiasm and dedication. In my assignment Varenicline, a New Smoking Cessation Drug, I did an excellent job critically evaluating the ISMP report, unfortunately this was not the set criteria, thus I received a P. This made me aware of the importance of being meticulous, not only in my research, but also keeping focus on the criteria. I received my first F in my generic self directed capability for my group assignment Diagnostic Imaging in Hepatobiliary Disease. We often assume that everyone will submit material of the same academic quality and integrity, and this experience has reminded me to pay closer attention and ensure everyone in the group is at a consensus for the standard of work that is expected of each other. Responsibility, self directed learning and attention to detail are some of few things I have gained from learning to scuba dive. Your actions alone, from checking and maintaining your equipment, assessing water conditions and making sure you have learnt and understood the correct procedures can determine whether you have a successful, enjoyable dive or a miserable and possibly even fatal one.   Ethics and Legal Responsibilities Learning about the ethical and legal responsibilities of medical professionals is one of my most enjoyable aspects of the curriculum. It provides me with an escape from the density of the sciences and allows me opportunities for free thought, reflection and personal development. One notable instance was during one of my first ethics tutorials in BGD where the ethics and morals of abortion were put to debate. Although I didnt tell the class, having undergone an abortion at the age of fifteen, this topic hit very close to home, and I remember getting quite worked up over some of the comments made throughout the debate. I remember feeling frustrated and upset that there were people out there that were so naÃÆ' ¯ve. In hindsight, I am ashamed I was so judgmental and harsh in my opinion of others based on their values, and have learnt to respect different perspectives beyond my own beliefs. The experience also made me realise the implications of ones own experiences, values, morals and beliefs on interactions with possible future patients and the necessity for sensitivity and respect of all perspectives in order to provide the highest level of care. These ideas of tolerance and respect for others was further embedded through the completion of the ethics based assignments which I thoroughly enjoyed, Transplant tourism, which debated non-malfeasance and beneficience, and Ethics of Brain Death and withdrawing life support which discussed the legal and ethical issues associated with medically indicated withdrawal of life sustaining treatment from incompetent/brain dead patients. The concept of patient autonomy permeates throughout medical ethics, as I have come to see through both the assignments and various ethics tutorials. Patient autonomy is increasingly and rightly perceived as a manifestation of the individuals rights of self determination and privacy, universally regarded as a pillar of civil liberty. While there may be temptations on the part of medical professionals to intervene and to protect individuals from their health care choices, the principle of respect for individual autonomy dictates that if these choices can be d eemed autonomous, then they must be respected regardless of the possible adverse consequences of such action, to do otherwise would be unjustified paternalism. However, whatever the truth about the debate there is also strong argument that the issue changes dramatically when introducing a third party into the decision, be it a pregnant mothers rights versus the unborn foetus; or a families religious groundings versus a doctors medical opinion. Although learning about different bioethical arguments and perspectives has been enlightening and enjoyable, developing my own set of values and opinions has been more disconcerting. Ethical reasoning is flexible and volatile, instead of learning a strict set of values, I hope to understand a wide variety of perspectives and adapt this knowledge when it is appropriate. The legal obligations as a health care professional in Australia was highlighted to me when I took legal action against my dentist whose unsatisfactory professional misconduct, negligence and breach of duty of care left me with a servere malocclusion of my jaw leading to tempromandibular joint dysfunctions, requiring extensive treatment. The competency of the regulatory bodies within Australia ensure those who live in Australia receive appropriate and adequate quality medical care. This is a palpable comparison to many other countries around the world, where duty of care is a foreign concept, and regulatory bodies are few and far between. Reflective Practitioner To me, reflection does not mean to look back only on my errors and try to rectify them for the future, but to also analyse experiences and notable occasions and achievements in my life and understand how those experiences have shaped me as an individual on the path to becoming a fully competent, well rounded medical practitioner. Effective communication is by far the most important capability I have to conquer as it is the capability that I am least proficient in and also is the one that hinders my progress in other capabilities such as patient assessment and management and teamwork. I only wish I developed an awareness of the relevance of the graduate capabilities earlier on in my studies so that I could have taken full advantage of opportunities for developing them during the course. Undertaking this process of reflection whilst compiling my portfolio has allowed me to realise that by developing skills beyond my academic achievements I am building attributes required for the lifelong learning that is necessary in the medical profession. I plan to try and a take a moment at the end of each day to reflect on the days achievements and activities. I hope this daily ritual of self awareness will allow me to improve each day. The portfolio has allowed me to become aware of my current level of achievement within each of the graduate capabilities and provided me with a structured manner as to develop specific attributes within the course and encouraged further development of these attributes throughout my degree.   

The Healing Power of Poetry Essay -- Writing Essays

"The Healing Power of Poetry" The devastations and repercussions of war are inimitable, and can sometimes be left unhealed. However, men and women have had to find cures to lick their wounds and resettle the turbulence existing within their minds. In Pat Barker's emotionally powerful war novel Regeneration, we are introduced to a war journal, called the Hydra, on page 84, which served as healing tool for WWI soldiers. This journal contained articles, cartoons, poetry, letters, and all kinds of other different types of writing. Barker uses the Hydra in her novel to mark the healing power of writing in the lives of these men. Poetry therapy has a long history, being recognized as far back as the first songs chanted around the camp-fires of primitive people. To these people, the chant is what heals the heart and soul. In the English language, the word "therapy" comes from the Greek word "therapeia," which means to nurse or cure through expressive arts such as dance, song, poem and drama. The Greeks have also informed us that Asclepius, the god of healing, was the son of Apollo, the god of poetry, medicine and the historical arts (Longo). In addition, mythological beliefs say that Oceanus told Promethus that "words are the physician of the mind diseased." The use of poetry therapy has therefore been discovered by numerous cultures since the beginning of language (Longo). Once recognized for its healing power, this therapy quickly moved to the North American continent. Within the American colonies, the first American hospital to care for the mentally ill was founded in 1751 by Benjamin Franklin, called the Pennsylvania Hospital. This hospital is known to have included reading, writing, and then also the actual publishing of... ...f writing to these men. Not only does it convey the effects of writing, it may also project the idea that reading poetry may also be just as therapeutic. Poetry therapy is not a theme that people would generally relate to the cure of barbaric men at war, which is indeed what makes this novel so brilliant. Soldiers too have a sensitive side, and Barker has proven to acknowledge and praise it. Works Cited Barker, Pat. Regeneration. New York: Plume, 1993. Lee, Stuart. "The Hydra." HTML JTAP Virtual Seminars Project. April 1998. 8 April 2004. <http://www.hcu.ox.ac.uk/jtap/hydra> Longo, Perie J. "Poetry as Therapy." Sanctuary House of Santa Barbara, Inc., 1996-2003. 13 April 2004. <http://www.spcsb.org/advoc/poetrytx.html> Rusche, Harry. "Lost Poets of the Great War." Emory University, 1997. 3 May 2004. <http://www.emory.edu/ENGLISH/LostPoets/>

Disadvantges of Joint Family

extended family also has some disadvantages just like any other thing. For instance, one’s privacy may be denied in some cases because of the large number of people. There are some things you will want to do alone or sometimes one may want to think or spend time alone in privacy all of which is very hard to do in the extended family especially a very large one. There is also a kind of monarchy in extended family. A decision made by the over head which is usually the grandfather cannot be challenged any other person. This is a disadvantage because one may not be allowed to exercise his rights of freewill to something.Some Children get spoilt in extended family by the grandparents. Because the grandparents so love them, they are given freewill to almost anything for some even the bad deeds are ignored. The grandparents may also prevent the parents from taking action on their children and this brings about disrespect from the child’s end. Trouble, quarrel and conflicts are almost inevitable in extended family. Most times, there are fights especially when there is no mutual understanding among members. You hear about cousins fighting cousins, an uncle hates his nephew and so on and so forth.On the other hand, quarrels are almost null in the nuclear family. Who do you want to fight? Your siblings or parents. But in the extended family, due to the large size and little far relationship between people, these conflicts tend to prevail. Looking at both sides, it can be deduced that even though extended family has some disadvantages, still yet, the advantages outweighs the disadvantages. Its practice in Africa should therefore be preserved. People should realize the value of having family there to help support them when in need and to give them wisdom in ways that were never thought to be possible.

Participant-Observer Exercise Essay

First of all, I am grateful to all class members and our instructor for the experience that I was able to acquire during this course. This is a good example of experiential learning – here we all had opportunities to transform our theoretical knowledge into real life experience. It really proved effective. I may also note that the last group engagement exercise did not disprove my previous hypotheses: with time and the experience of joint work we all got more confident about the tasks, and with the raise of confidence our productivity increased. I think we all got to know each other better and it increased the level of confidence. My hypothesis for this week is: â€Å"Group work gets real meaning and becomes more productive when group members bring in their personal insights and personal experiences instead of confining themselves to theorizing and relying on common sense. † At first, we knew each other too little to be open and share our personal experience. With time, we got to know each other better and gradually became more relaxed about sharing our thoughts. I think it had a positive impact on our performance. It helped to provide more examples of the concepts we presented. Our task was to discuss experiential learning and how it assists in exercising leadership and understanding group dynamics. We focused on several chosen principles in our presentation, and each of us was able to vitalize theory by referring to specific examples. This level of openness was quite impossible during the first exercise. Personal insights helped us all better understand theory and make a more interesting presentation. In fact, this experience once again proves Principle 9 that we discussed in our presentation: â€Å"The more supportive, accepting, and caring the social environment, the freer a person is to experiment with new behaviors, attitudes, and action theories† (Johnson & Johnson, 2009, p. 51). Since all were open and ready to introduce a personal insight, we felt the environment to be rather supportive and accepting. As a result, we felt more confident and could communicate our thoughts freely. It provided greater value to our group work and helped to fulfill our task more successfully. References Johnson, D. W. , & Johnson, F. P. (2009). Joining together: Group theory and group skills. 10th ed. Boston, MA: Allyn & Bacon.

According to our textbook, Educational Psychology by John Santrock, Autism

According to our textbook, Educational Psychology by John Santrock, Autism According to our textbook, Educational Psychology by John Santrock, Autism is an often-severe developmental disorder with an onset in infancy that includes deficiencies in social relationships, abnormalities in communication, and restricted, repetitive, and stereotyped patterns of behavior. To start to understand this disorder I had to break down the definition provided by our text book into simpler terms. In the paragraphs to follow I will break down the text book definition of autism, as well as, provide examples of noticeable behavior of an Autistic child. I will also discuss the difficult challenges a teacher may face when teaching a child with this disorder. This paper will equally address how to help the parents of a recently discovered Autistic child gain an understanding of the disorder. I will also address my concerns and goals when I am presented with an Autistic child in my life.There are a several parts to the Autism definition provided by the textbook.English: A little a utistic girl.I found myself having to scratch deeper into the surface of the definition to get a better grasp of what Autism is. Autism can be a severely handicapping disorder for some children. Some Autistic individuals are wheel chair bound and have very poor, if any communication skills. While others are able to function in the world that surrounds them even getting great jobs, as long as, employers are open minded and embrace diversity. For those that are able to function in society it is with a lot of hard work and determination. Many Autistic individuals overcome sensory problems, auditory problems, or tactile problems to name a few obstacles of this disorder. It is hard to image how handicapping it is for individuals that have sensory problems. You can observe sensory problems by watching the way children react or do not react to their...

Exceptional Education Referral To Placement Essays - Free Essays

Exceptional Education Referral To Placement Essays - Free Essays Exceptional Education Referral To Placement Abstract This paper will reflect upon the school-wide dilemma of students, families and schools involved in the referral and placement process of students with special needs such as specific learning disabilities and beyond. This is a genuine problem in our Florida school system as each year is seems to take longer for a student who has been referred by an educator to be placed into a situation which best meets their academic and/or emotional needs. This paper will concentrate on stories derived from primary stakeholders dealing with this situation. The stakeholders for this particular story are; Diana, a 3rd grade student in need, and her family, her teacher, the school psychologist, and the school exceptional student education teacher. Each stakeholder will present their version of the problem as a personal situation. Exceptional Education-Referral to Placement Time: A School-Wide Dilemma My story begins by telling you that I am a 3rd grade teacher and have taught elementary school for close to four years. In that time, I have been able to teach many youngsters and also see that there are some learners whose needs exceed what I have been able to give them in a regular classroom setting. When I used to teach fifth grade, most students with academic concerns had already been identified and place, part time, in an SLD (Specific Learning Disability) setting as needed. However, some students had still managed to travel through six years of public school barely scraping by. Now teaching third grade, I have two students in particular I am highly concerned about. One of which has been on the refer for testing list since second grade and has still not been able to be placed in an educational setting which will focus on her needs. The second little girl is mostly likely a result of her mother taking drugs while she was in the womb. This child's development seems to be slowing as the rest of the students around her progress. For this paper, I am going to focus on the plight of the first child for my example. From my observations as the teacher of the little girl I will refer to as Diana, it is extremely evident a regular classroom setting is not meeting the needs of this child. STAKEHOLDERS There are many people in this little girl's life who hold a stake in her successes. I, as her teacher, am certainly one, as well as herself, her parents and family, our school varied exceptionalities teacher, the county/school psychologist and the school principal. This list could also continue to her future teachers and beyond, but I will be discussing the stories of the main stakeholders I have previously listed. Teacher's Story Diana, at nine years old, has already been detained once in her schooling career. This child is able to identify letters, but digraphs such as Sh, or Ch are not comprehensible to her. Now in third grade, it is clear me that Diana is not learning at the same rate as her fellow classmates. I felt from within the first week that she was in my class that this child was well below grade level. I see her frequently off task, dawdling if you will by shuffling papers, organizing her desk and book bag, practically anything to avoid showing her classmates that she does not understand the work that is going on in the classroom. As Diana's teacher, I am troubled that in my regular classroom, I cannot give her the full attention and services that would meet her individual needs. I did the by the book way that a teacher is supposed to do to find out the history of this child. This meant checking the cumulative folder of past school history and I also spoke with her previous teachers and inquired with the guidance counselor as to whether or not she was on a testing list. I was informed that Diana had been referred by her second grade teacher, but it would be helpful if I continued with documentation of school work and followed up. I have done this and I have also discussed Diana's situation at quarterly profile meetings about students where the principal, teacher and curriculum resource teacher are all present. Unfortunately, because Diana

Barack Obama Essay Sample

Barack Hussein Obama II. born August 4. 1961. a alumnus of Columbia University and Harvard Law School. is the 44th and current president of the United States. For your information. he is besides the first African American to keep the office. He was a community organiser in Chicago before gaining his jurisprudence grade. He besides worked as civil-rights attorney and instructor before prosecuting a political calling. He was subsequently elected to the Illinois State Senate in 1996. functioning from 1997 to 2004. He was elected to the U. S. presidential term in 2008. President Obama continues to ordain policy alterations in response to the issues of wellness attention and economic crisis. Early LifeObama was born on August 4. 1961. at Kapi?olani Maternity A ; Gynecological Hospital ( now Kapi?olani Medical Center for Women and Children ) in Honolulu. Hawaii. and is the firstPresident to hold been born in Hawaii. His female parent. Ann Dunham. was born in Wichita. Kansas. and was of largely English lineage. His male parent. Barack Obama. Sr. . was a Luo from Nyang’oma Kogelo. Kenya. Obama’s parents met in 1960 in a Russian category at the University of Hawai?i at Manoa. where his male parent was a foreign pupil on scholarship. The twosome was married on February 2. 1961 and Barack was born six months subsequently. Obama did non hold a relationship with his male parent as a kid. When his boy was still an baby. Obama Sr. relocated to Massachusetts to go to Harvard University. prosecuting a Ph. D. Barack’s parents officially separated several months subsequently and finally divorced in March 1964. when their boy was 2. In 1965. Obama Sr. returned to Kenya. In 1965. Dunham married Lolo Soetoro. an East–West Center pupil from Indonesia. A twelvemonth subsequently. the household moved to Jakarta. Indonesia. where Barack’s half sister. Maya Soetoro Ng. was born. Several incidents in Indonesia left Dunham afraid for her son’s safety and instruction so. at the age of 10. Barack was sent back to Hawaii to populate with his maternal grandparents. Exceling in School While populating with his grandparents. Obama enrolled in the honored Punahou Academy. stand outing in hoops and graduating with academic awards in 1979. As one of merely three black pupils at the school. Obama became witting of racism and what it meant to be Afro-american. He subsequently described how he struggled to accommodate societal perceptual experiences of his multiracial heritage with his ain sense of ego: â€Å"I began to detect at that place was cipher like me in the Sears. Roebuck Christmas catalog †¦ and that Santa was a white adult male. † he said. â€Å"I went to the bathroom and stood in forepart of the mirror with all my senses and limbs apparently integral. looking the manner I had ever looked. and wondered if something was incorrect with me. † Obama besides struggled with the absence of his male parent. who he saw merely one time more after his parents divorced. when Obama Sr. visited Hawaii for a short clip in 1971. â€Å" [ My male parent ] had left Eden. and nil that my female parent or grandparents told me could rid of that individual. impregnable fact. † he subsequently reflected. â€Å"They couldn’t describe what it might hold been like had he stayed. † After high school. Obama studied at Occidental College in Los Angeles for two old ages. He so transferred to Columbia University in New York. graduating in 1983 with a grade in political scientific discipline. After working in the concern sector for two old ages. Obama moved to Chicago in 1985. There. he worked on the South Side as a community organiser for low-income occupants in the Roseland and the Altgeld Gardens communities Obama honed leading accomplishments as a community militant Barack Obama’s meteorologic rise from the streets of Chicago to the U. S. Senate to winning the presidential nomination of the Democratic Party showcases the alone experiences and accomplishments he has gained in his old ages as an organiser. legislator and community militant. After graduating from Columbia University. Obama worked for a Harlem environmental and consumer protagonism organisation in New York City. In 1985 he was hired in Chicago as a community organiser for $ 10. 000 and a used auto. As a staff member for the Developing Communities Project. Obama worked with churches on the city’s industrial South Side to form workers who had lost their occupations due to the steel factory and mill shuttings. After three old ages in some of the toughest vicinities of Chicago. Obama decided to go to Harvard Law School. assuring to return to these same streets. After being elected the first Afro-american president of the Harvard Law Review. Obama could hold turned his acad emic success into a six-figure occupation with a esteemed jurisprudence house. Alternatively he chose to maintain his promise. He returned to Chicago in 1991 where he joined a little civil rights house and ran a elector enrollment thrust that put 150. 000 new electors on the axial rotations. assisting Bill Clinton carry Illinois in 1992. In 1996 he was elected province senator from his Chicago territory. In the Illinois Legislature. Obama worked with Democrats and Republicans to assist working households get in front by making a province Earned Income Tax Credit. He besides pushed through enlargement of an early childhood instruction plan. He besides played an of import function in outlining bipartizan moralss reform statute law that has made Illinois one of the best provinces in the state for run finance revelation. In 2004 Obama was elected U. S. senator from Illinois. where he has continued to show exceeding leading in facing tough issues. As a member of the Senate Committee on Veterans’ Affairs. he has strongly supported Virginia Democratic Sen. Jim Webb’s new G. I. Bill that would supply instruction benefits for all veterans of the Iraq and Afghanistan wars. Showing his ability to make across the aisle. Obama traveled to Russia with Republican Sen. Dick Lugar of Indiana to get down a new coevals of non-proliferation attempts to happen and maintain deathly arms out of the custodies of terrorists around the universe. In his first twelvemonth as senator. Obama scored a 93 per centum evaluation on cardinal legislative issues identified by the UAW. Over his four old ages as senator. he has stood with working households by voting for a rise in the minimal pay. for the Employee Free Choice Act with card-check acknowledgment in brotherhood forming thrusts. and for the right of Medicare to negociate with drug companies to cut costs for seniors. He has besides stood with us to oppose Republican attempts to privatise Social Security. base on balls another â€Å"free† trade pact for Central America ( CAFTA ) and cut Medicaid coverage for the hapless. President Barack Obama and Transformative Leadership Over the past two old ages. we have seen what some have called a transformative presentation of leading. This procedure culminated on January 20th with the startup of Barack Obama as the 44th President of the United States. Whether or non you agree with his political relations ( and Prime Business Alert! is unquestionably nonpartizan ) . you have to esteem his journey and appreciate his leading capablenesss. You can besides larn a great trade about effectual leading and sustained. high-ranking public presentation by analyzing his unlikely and meteorologic rise. From low beginnings. holding to predominate over the double â€Å"handicaps† of race and fatherlessness. and overcome two of the most formidable political forces in history ( the Clintons and the Republican Party ) . President Obama showed us that a individual with imaginativeness. finding. and religion could overcome incalculable odds and rise to the highest and most powerful office in the universe. During his full campaigning. he exhibited the leading qualities that led to this landmark accomplishment: * President Obama saw chance where others saw obstructions ; * Saw solutions where others saw jobs ; * Hade assurance when others had uncertainty ;* Had resolve when others wavered ;* Was disciplined when others were slack ;* Stayed composure when others panicked ;* Had hope when others lost religion ;* And. finally. he saw possibility where others saw none President Obama established several indispensable elements in his run. First. he affirmed his leading by doing clear who was in charge. what messages would be communicated. and his committedness to those messages. At the same clip. he was unfastened to thoughts and willing to accommodate when presented with a compelling ground to make so. Second. he set the psychological science of his run. guaranting that it was positive. proactive. and focused. Third. he actively created a civilization of unity. openness. and finding that permeated throughout his run organisation. These specific messages and the manner in which he conveyed them are powerful lessons for you in your leading function at your company. President Obama besides convinced 1000000s of single Americans that they excessively could change their ain personal histories and hereafters. We saw the force of this message in interviews with African-Americans who lived through segregation and the civil-rights motion and in the voices of hope and possibility from immature African-Americans who saw what was one time impossible was now a world and that if he could travel mountains. so could they. And this message reverberated across racial age. gender. and cultural lines. President Obama showed us that. in a universe where the position quo had apparently immoveable inactiveness. alteration could go on. And in a universe that frequently times seems to be whirling out of control. he gave many the bravery to encompass the â€Å"audacity of hope. † This message of possibility and personal authorization from President Obama moved people and caused an unstoppable groundswell of support that propelled him to the Presidency. This same message can authorise your employees to accomplish their ain and your company’s ends and take their public presentation. productiveness. and profitableness to a new degree. President Obama besides showed us that disconnected persons with a common vision could blend into a formidable force. His life and his words inspired 1000000s of antecedently uninvolved Americans to come in the political sphere and stand up for what they believed. But. despite what many people think. inspiration is non his greatest gift. President Obama’s existent strengths are non merely to animate. but besides to inform and transform. He gave people the information and tools they needed to concentrate and direct their inspiration. And so he transformed that inspiration and information into action. By working both low-tech ( boots on the land ) and hi-tech ( the Internet ) means. he created what was surely the most powerful political run in history. As a leader. you can unify your corporate squad in the same manner. First. make a shared vision of what your squad wants to carry through. Making this a collaborative attempt additions â€Å"buy in† and ownership. Second. give your squad the cognition they need to make their occupations separately and jointly to the best of their ability. Third. supply them with the resources to turn their inspiration and information into action. President Obama now faces the most intimidating trial of his leading accomplishments as he attempts to hammer a sense of integrity. where others have tried and failed. in a political civilization that has many political. economic. and cultural cabals. Can he animate. inform. and transform those who have cardinal dissensions with him? To make so. he will hold to marshal all of his singular leading accomplishments. In this clip of crisis. his oratory gifts can animate all Americans to put aside little concerns and work together to get the better of the current challenges at place and abroad. This ability involves bordering dissentious issues in footings that transcend specific political orientations and concentrate on larger cosmopolitan subjects. He began this procedure in his inaugural address when he declared. â€Å"We gather because we have chosen hope over fright. integrity of intent over struggle and strife. † The same sort of divergency of positions can disable a company every bit good. The ability to animate your employees. beat up them around a shared cause. demonstrate regard for all positions. and happen common land is an indispensable accomplishment for supplying leading to a successful company. President Obama’s confident. composure. and commanding presence in these hard times can animate trust that he has America’s best involvements at bosom despite policy differences. His celebrated regard for diverse point of views and willingness to listen to others can besides promote â€Å"buy in† from those less inclined to make so. And his thoughtful and far-reaching responses to issues that impact all Americans can convert even those who might be immune to. at a lower limit. give him a opportunity to turn out himself right. Similarly. a manner of corporate leading that is important. yet empathetic and trusty. can cut down the fires of struggle and promote those with different thoughts to be unfastened to others’ point of views and be willing to happen via media for the good of the person and the company. In the concern universe. there are profound lessons to be learned from analyzing President Obama’s leading capablenesss. By using his accomplishments and schemes to your work. you can make your ain transformative leading experience that can assist you and your company to accomplish its ends. Cultural and political imageObama’s household history. upbringing. and Ivy League instruction differ markedly from those of African American politicians who launched their callings in the sixtiess through engagement in the civil rights motion. Expressing bewilderment over inquiries about whether he is â€Å"black enough† . Obama told an August 2007 meeting of the National Association of Black Journalists that â€Å"we’re still locked in this impression that if you appeal to white folks so there must be something wrong† . Obama acknowledged his vernal image in an October 2007 run address. stating: â€Å"I wouldn’t be here if. clip and once more. the torch had non been passed to a new coevals. † Obama is often referred to as an exceeding speechmaker. During his pre-inauguration passage period and go oning into his presidential term. Obama has delivered a series of hebdomadal Internet picture references. Harmonizing to the Gallup Organization. O bama began his presidential term with a 68 % blessing evaluation before bit by bit worsening for the remainder of the twelvemonth. and finally bottoming out at 41 % in August 2010. a tendency similar to Ronald Reagan’s and Bill Clinton’s first old ages in office. He experienced a little canvass bounciness shortly after the decease of Osama bin Laden. which lasted until around June 2011. when his blessing Numberss dropped back to where they were prior to the operation. Polls show strong support for Obama in other states. and before being elected President he met with outstanding foreign figures including British Prime Minister Tony Blair. Italy’s Democratic Party leader and Mayor of Rome Walter Veltroni. and Gallic President Nicolas Sarkozy. In a February 2009 canvass conducted in Western Europe and the U. S. by Harris Interactive for France 24 and the International Herald Tribune. Obama was rated as the most well-thought-of universe leader. every bit good as the most powerful. In a similar canvass conducted by Harris in May 2009. Obama was rated as the most popular universe leader. every bit good as the one figure most people would trap their hopes on for drawing the universe out of the economic downswing. Obama won Best Spoken Word Al bum Grammy Awards for abridged audiobook versions of Dreams from My Father in February 2006 and for The Audacity of Hope in February 2008. His grant address after the New Hampshire primary was set to music by independent creative persons as the music picture â€Å"Yes We Can† . which was viewed 10 million times on YouTube in its first month and received a Daytime Emmy Award. In December 2008. Time magazine named Obama as its Person of the Year for his historic campaigning and election. which it described as â€Å"the steady March of apparently impossible accomplishments† . On October 9. 2009. the Norse Nobel Committee announced that Obama had won the 2009 Nobel Peace Prize â€Å"for his extraordinary attempts to beef up international diplomatic negotiations and cooperation between peoples† . Obama accepted this award in Oslo. Norway on December 10. 2009. with â€Å"deep gratitude and great humbleness. The award drew a mixture of congratulations and unfavorable judgment from universe leaders and media figures. Obama is the 4th U. S. president to be awarded the Nobel Peace Prize and the 3rd to go a N obel laureate while Challenges and Successs In the 2nd portion of his term as president. Obama has faced a figure of obstructions and scored some triumphs as good. He signed his health-care reform program. known as the Affordable Care Act. into jurisprudence in March 2010. Obama’s program is intended to beef up consumers’ rights and to supply low-cost insurance coverage and greater entree to medical attention. His oppositions. nevertheless. claim that â€Å"Obamacare. † as they have called it. added new costs to the country’s grandiloquent budget and may go against the Fundamental law with its demand for persons to obtain insurance. On the economic forepart. Obama has worked hard to maneuver the state through hard fiscal times. He signed the Budget Control Act of 2011 in attempt to harness in authorities disbursement and forestall the authorities from defaulting on its fiscal duties. The act besides called for the creative activity of a bipartizan commission to seek solutions to the country’s financial issues. but the group failed to make any understanding on how to work out these jobs. Obama has besides handled a figure of military and security issues. In 2011. Obama helped revoke the military policy. known as â€Å"Don’t Ask. Don’t Tell. † that prevented openly cheery military personnels from functioning in the U. S. Armed Forces. He besides gave the green visible radiation to a 2011 covert operation in Pakistan. in which a squad of U. S. Navy SEALs killed ill-famed al-Qaeda leader Osama bin Laden. Obama made headlines once more in June 2012. when a authorization included in his Patient Protection and Affordable Care Act ( initiated in 2010 ) was upheld by the U. S. Supreme Court. therefore leting other of import pieces of the jurisprudence to remain integral. The jurisprudence includes free wellness showings for certain citizens. limitations to stringent insurance company policies and permission for citizens under age 26 to be insured under parental programs. among several other commissariats. In a 5-4 determination. the Court voted to continue the authorization under which citizens are required to buy wellness insurance or pay a tax—a chief proviso of Obama’s health-care law—stating that while the authorization is unconstitutional. harmonizing to the Constitution’s commercialism c lause. it falls within Congress’ constitutional power to revenue enhancement. The Supreme Court opinion has been deemed a triumph for Obama. who is approaching the terminal of his first presidental term. Leadership analysis The office of the American presidential term is a multi-faceted business that requires many sorts of leading manners. This hub briefly discusses some of the chapeaus worn by American President Barack Obama over the past four old ages. Largely the article focuses on three wide leading manners including transformational-charismatic. cross-cultural. and contingency-situational leading. Recently. I added the sentiment polls to let you to rate how you think President Obama has faired in these countries and overall. Please experience free to take part. Transformational-charismaticBefore the election. President Barack Obama attracted the attending of American’s and aliens likewise with a apparently magnetic nature. A magnetic leader has an eldritch ability to pull others to his side and travel them to carry through a cause bigger than themselves. A magnetic attack is transformational if it invokes a lasting alteration in the people who embrace the leader’s vision. During his first term. President Obama wooed at least some to his vision by demoing the possible to do a immense difference in both domestic and foreign personal businesss Cross-Cultural-Global Leadership Under the Bush Administration. America’s image lost much of its radiance. This was largely due to a one-sided. ethnocentirc foreign policy espoused by Bush and Cheney. While non taking America’s safety demands for granted. President Obama formulated a more cross-cultural attack to the universe. believing non merely of the US’s involvements but besides the involvements of the other states as good. In the first six months on the occupation. President Obama traveled abroad more than any other president at that point of his disposal and seemed to pay careful attending to cultural norms in the topographic points where he traveled. After his first twelvemonth. the President’s effort to be more compromising to the Middle East. China. and Russia were welcomed by the universe in that he received the Nobel Peace Prize. However. some believe the President’s policies toward the Middle East helped convey about the Arab Spring which resulted in the overthrow of a t least a few pro-American governments. Contingency Leadership During his first few months in office. Mr. Obama non merely displayed culturally sensitive and transformational leading. he responded to assorted state of affairss utilizing different types of leading theoretical accounts. In this manner he modeled what has been described as eventuality leading. When going abroad Obama was compromising. low and disposed to listen before speech production. When he faced the neglecting car industry. he did non soften words but stood tough to name for necessary alterations. This was seen in how he forced GM and Chrysler to accept new MPG criterions and pare down their long-time committedness to NASCAR. Under the heat of the current foreign and economic problems. Obama worked difficult to carry through what he promised understanding that each second he waited may intend a lost place or occupation for another group of citizens. Whether one liked what he did or non. Obama did non shy off from the challenges that faced him when he accepted the occupation as president. Personaility Profile Sarah Moore and Angela Rodgers. pupils at the College of Saint Benedict in St. Joseph. Minn. . did a research undertaking on â€Å"The Personality Profile of President Barack Obama: Leadership Implications† and presented the consequences at the 6th one-year Minnesota Private Colleges Scholars at the Capitol event. Feb. 19. in the State Capitol rotunda. St. Paul. Minn. The profile revealed that Barack Obama is ambitious and confident ; modestly dominant and assertive ; suiting. concerted. and agreeable ; slightly surpassing and congenial ; and comparatively painstaking. The combination of ambitious and suiting forms in Obama’s profile suggests a â€Å"confident conciliator† personality complex. Leaderships with this personality paradigm. though self-confident and ambitious. are characteristically gracious. considerate. and benevolent. They are energetic. capturing. and agreeable. with a particular endowment for settling differences and a penchant for mediation and via media over force or coercion as a scheme for deciding struggle. They are driven chiefly by a demand for accomplishment. but besides have significant association demands and a modest demand for power. The survey offers an through empirical observation based model for expecting Obama’s public presentation as main executive. The undermentioned general anticipations sing Obama’s likely leading manner can be inferred from his personality profile: * Ambitious. self-confident. gracious. considerate * Preference for mediation and via media over force or coercion as a scheme for deciding struggle * High demand for accomplishment ; moderate demand for association ; low demand for power * More matter-of-fact than ideological * More task- than relationship oriented* Likely to move as a strong advocator in his disposal. utilizing his powers of persuasion to progress his policy vision * Preference for garnering information from a assortment of beginnings instead than trusting entirely on advisers and disposal functionaries * In covering with members of Congress. may demo penchant for avoiding unneeded struggle by seeking to stay above the disturbance in heated. extremely dissentious arguments * Preference for jointing and supporting his policies in individual instead than trusting on staff and disposal functionaries to talk for him President Obama’s 14 Leadership Traits01. Bearing02. Courage ( moral and physical bravery )03. Decisiveness04. Dependability05. Endurance06. Enthusiasm07. Enterprise08. Integrity09. Opinion10. Justice11. Knowledge12. Loyalty13. Tact14. Unselfishness He is one of the few US Presidents that was non born into wealth. He will stay an inspiration for immature draw a bead oning leaders. He achieved the Presidency through excellence in leading and those same leading accomplishments will enable him to surpass those that lack such abilities and suitably airt US involvement both internally and abroad.

Strategic management analysis Essay Example | Topics and Well Written Essays - 3000 words - 1

Strategic management analysis - Essay Example The company is the largest coffee chain store in the world and has its operations in 61 countries with more than 20000 stores. The product portfolio of Starbucks includes hot and cold drinks, sandwiches, coffee beans, snacks, pastries, etc. The company has its foundation in Seattle long time back in 1971 as a roaster and retailer of local coffee bean and has expanded to a large extent since then. The company is the market leader in its coffee segment and its basic strategies are competence based strategy and the focus strategy based on which it adds value to its products and establishes the image of luxury and elegance (About Us 2012). The report presents the strategic management analysis of Starbucks considering its international segment out of the three segments. The country chosen in its international segment is UK. Starbucks entered the UK market in 1998 with the investment of $83 million and launch of more than 60 stores (Lussier 2008). The present coffee shop market environment of UK is very competitive with presence of multiple players in the market including branded coffee shops, independent retail stores and small coffee stores presenting a tough competition to Starbucks (Weston 2009). The report analyses the external environment of Starbucks with respect to UK coffee market, strategic capability of the company and the strategic fit with the help of suitable models such as Porter’s five forces, value chain analysis and PESTEL analysis. Task A (1): Analysis of Starbucks external environment Macro-environment: PESTEL Analysis Political: Impact 3 of 5- Coffee beans is grown in the developing countries. The major aspects about which the discussions keep going on in the UK political environment are work conditions and child labor. The political influence is also high through tariffs and taxes (Press Release – Project Cafe11 UK 2011). Economic: Impact 4 of 5-The major business challenge for the industry as a whole is related to the economic rec ession of 2008. Owing to the recession period, consumers have become much more cautious with their discretionary expenditures due to the presence of high unemployment and debts on individuals (Weston 2009). Socio-cultural: Impact 5 of 5- People in UK spends more and more on coffee. It is included in their trend to go out and have a cup of coffee. The expenditure on tea by UK people is 623 million pounds, while on coffee it is 738 million pounds. Customers visit the coffee shops not only for having a coffee drink but also for sitting down and have a relaxed time out of their daily hectic routine (The Future of the Coffee Market 2012). Technological: Impact 4 of 5- Technology has become advanced as better as well as cheaper coffee machines are available to make a good coffee at home, for instance Senseo. Environmental: Impact 3 of 5- There is a considerable increase in the environmental awareness due to which coffee companies in UK have to remain concerned about the way their coffee b eans are produced and roasted, the way of the designing of the supply chain and the manner in which they prepare and finally sell their coffee products (Weston 2009). Legal: Impact 3 of 5-

Business ethic aboute Nike Companey Essay Example | Topics and Well Written Essays - 2500 words

Business ethic aboute Nike Companey - Essay Example Loveleena Rajeev (2009) supposed that â€Å"the lack of business ethics in the market, is the reason the world economy is presently in crisis†. Ethics, in its simplest definition is the perception of right and wrong. Our urbane and civilized world is anchored in ethical values, where without it, the society will be in chaos and disarray (Smith & Smith, 2009). It follows that business ethics â€Å"are moral values and principles, that determine our conduct in the business world† which refer to all aspects and phases in commerce (Rajeev, 2009). In a sense, it should not have been a contentious matter as the conduct of business is simply about delivering and/or exchanging advantages with the firm making profits from it, however, the emergence of â€Å"greed has led the present business scenario towards unethical business practices, legal complications and general mistrust (Rajeev, 2009)† The need for ethical behaviour especially in business leapt from this mire of distrust. Thus the framework of ethical business practices outlines â€Å"a code of conduct that facilitates, if not encourages, public confidence in their products and services (Smith & Smith, 2009). This structure provides guiding principles in getting through ethical dilemma posed in the conduct of business to encourage fair practices and unbiased results, always putting the best interest of the concerned sectors in mind. One such company which found itself in the middle of an ethical scandal is one of the world’s largest shoe manufacturers, Nike, Inc. The controversy was nicknamed Nike’s sweatshop as it pertained to the offshore production houses of the company which was alleged to have poor labour practices and exploitation of manpower. Nike was born from the coming together of Phil Knight and Bill Bowerman which in its early stages imported sports shoes from Japan. In two decades, this shoe manufacturer was able to conquer about half of the world market after it

Responding to religious diversity in classrooms Case Study

Responding to religious diversity in classrooms - Case Study Example her customs and norms of different cultures, but one has to be prudent enough to close argumentative statements and believes when the initial signs begin to show. One aim of every class teacher is to make her students a positive and appreciative member of society who can respect and give space to different cultural believes. Therefore awareness of diversity among children is an acceptable notion .Different sessions for students and parents can be held so to spread the awareness about religious diversity. Workshops for parents of the mainstream culture can also be held so they can train their off springs with the understanding of acceptance. Developing a sense of sensitivity in both parent and children can help in a long run to the road of acceptance. A teacher needs to study the background and the profile of the child thoroughly and before planning keeping those distinguishing factors in mind, plan an activity. And if somehow the event calls for the same activity trims and change activity for that specific child who can not perform due to his ideas or

The Schengen Agreement and Migration Essay Example | Topics and Well Written Essays - 3000 words

The Schengen Agreement and Migration - Essay Example This initiated the first step of the dialogue. The next issue discussed was whether this should be applied to people who were outside this European Community. The movement gained momentum when some of the countries decided to push ahead with the proposal and eliminate these borders. (Hiroyuki Tanaka and Trinidad Macias, 2007) The Benelux countries which included Belgium, Luxemborg and Netherlands had already initiated the process of having a common passport much before the idea of Schengen originated. This was formed as early as the 1970’s. France and Germany furthered strengthened their cross border treaties by signing a bilateral agreement in 1984 which decided to do away with the cross border checks. (Gelatt Julia, 2005) This was borne by the protests initiated by truck drivers who were not happy with the long procedural delays these checks were taking. To further strengthen the agreement a number of countries like France, Germany, Luxembourg, Netherlands and Belgium signed the first agreement on June 14, 1985 at Schengen. It was decided to do away with the passports and other red tape including procedural delays which hampered free movement. The process that began in Schengen was considered as a sort of beginning for greater co-ordination between further member states of the European Union so that the idea that was generated in Schengen could be expanded to the whole of the EU. (Kazmierkiewicz, 2005) Source: Hiroyuki Tanaka and Trinidad Macias, 2007, Schengen Member States The Schengen area further consolidated its intentions by eliminating the need for border checks on both travellers from the member countries and also relaxing these norms for visitors from outside the Schengen area. However there was a need for careful monitoring the people who was allowed free access in the Schengen area. The Schengen Convention was further ratified by France, Belgium, Luxembourg, Netherlands and Germany in 1990. (Bertozzi Stefano, 2008) Several key decisions were taken in this convention. The terms and conditions for the issuance of short term visas for less than 90 days were outlined. It also laid out the policies for the travel of people across the Schengen region. Movement of people who intended to stay on for more than 90 days were provided with long term visas. Internal border checks were done away with but external borders were still subjected to the principles of national legislation.( Gelatt Julia, 2005) The Schengen roped in further countries. In 1990 Italy joined in while Portugal entered into the fray 1991. Spain joined next in 1992 supported by Austria in 1995. Finland, Sweden and Denmark completed the formalities of joining in 1996. (Hiroyuki Tanaka and Trinidad Macias, 2007) An interesting facet to this agreement was that although Norway and Iceland were not members of the EU, it supported and became a member to enhance the sanctity of the union. The membership of Denmark into the Union however came with a rider. They could fe el free to agree or disagree with decisions that were made from time to time in the Schengen Agreements. Schengen Information System The Schengen Conv

Intro to criminal justice Coursework Example | Topics and Well Written Essays - 750 words - 2

Intro to criminal justice - Coursework Example The Exclusionary rule prevents the government from using evidence obtained in a violation of the constitution of the United States. This applies to evidence gained from illegal search and seizure. Furthermore, the court may not apply the rule to exclude illegally acquired evidence where the cost of exclusion outweighs the deterrent benefits. An example is Herring Vs United States of 2009 in which officers in a coffee county arrested petitioner Herring based on a warrant listed in the neighboring Dale county database. A search carried out by the police yielded drugs and gun. However it was later revealed that the warrant had been recalled several months earlier. There is also the case of Arizona VS Evans of 1995. The other cases include Weeks Vs United States in which the Supreme Court unanimously held that the seizure of items without warrant from a private residence is a violation of the constitution. There is as well the case of Davis Vs United States of 2011, the Escobedo Vs Illinois and finally the case of Mapp Vs Ohio of 1961. It referrers to a situation where a police officer who is suspicious of an individual temporarily detains the person and moves his hands lightly over the suspects outer clothing to find out if the person is carrying a concealed weapon. If the police officer feels something that seems to be weapon, the police may then reach inside the victims clothing. Some of the cases that have been associated with stop and frisk in the Supreme Court are include the case of Terry Vs Ohio of the 1968. The case came up when a police officer observed three individuals engaging in a conduct suggestive of robbery. He approached them patted one of them and got a gun. Other cases include the United States Vs Place of 1983, United States Vs Montoya de Hernandez of 1985 and Michigan Vs Chesternut of 1991. Motor vehicle search may only be done under some narrowed circumstances. For example only after the

Responding to religious diversity in classrooms Case Study

Responding to religious diversity in classrooms - Case Study Example her customs and norms of different cultures, but one has to be prudent enough to close argumentative statements and believes when the initial signs begin to show. One aim of every class teacher is to make her students a positive and appreciative member of society who can respect and give space to different cultural believes. Therefore awareness of diversity among children is an acceptable notion .Different sessions for students and parents can be held so to spread the awareness about religious diversity. Workshops for parents of the mainstream culture can also be held so they can train their off springs with the understanding of acceptance. Developing a sense of sensitivity in both parent and children can help in a long run to the road of acceptance. A teacher needs to study the background and the profile of the child thoroughly and before planning keeping those distinguishing factors in mind, plan an activity. And if somehow the event calls for the same activity trims and change activity for that specific child who can not perform due to his ideas or

Intro to criminal justice Coursework Example | Topics and Well Written Essays - 750 words - 2

Intro to criminal justice - Coursework Example The Exclusionary rule prevents the government from using evidence obtained in a violation of the constitution of the United States. This applies to evidence gained from illegal search and seizure. Furthermore, the court may not apply the rule to exclude illegally acquired evidence where the cost of exclusion outweighs the deterrent benefits. An example is Herring Vs United States of 2009 in which officers in a coffee county arrested petitioner Herring based on a warrant listed in the neighboring Dale county database. A search carried out by the police yielded drugs and gun. However it was later revealed that the warrant had been recalled several months earlier. There is also the case of Arizona VS Evans of 1995. The other cases include Weeks Vs United States in which the Supreme Court unanimously held that the seizure of items without warrant from a private residence is a violation of the constitution. There is as well the case of Davis Vs United States of 2011, the Escobedo Vs Illinois and finally the case of Mapp Vs Ohio of 1961. It referrers to a situation where a police officer who is suspicious of an individual temporarily detains the person and moves his hands lightly over the suspects outer clothing to find out if the person is carrying a concealed weapon. If the police officer feels something that seems to be weapon, the police may then reach inside the victims clothing. Some of the cases that have been associated with stop and frisk in the Supreme Court are include the case of Terry Vs Ohio of the 1968. The case came up when a police officer observed three individuals engaging in a conduct suggestive of robbery. He approached them patted one of them and got a gun. Other cases include the United States Vs Place of 1983, United States Vs Montoya de Hernandez of 1985 and Michigan Vs Chesternut of 1991. Motor vehicle search may only be done under some narrowed circumstances. For example only after the

Strange New Land Essay Example for Free

Strange New Land Essay Strange New Land, offers a seemingly vast view of the presence of African Americans in present day North America. Mr. Wood describes the harsh and often brutal fate of African Americans during the colonization of America. Exploring Chapter 1, allowed me to view the way different cultures took advantage of not only African Americans, but Native Americans as well. Native Americans were invaded by Spanish settlers, taken into slavery and forced to live with harsh living conditions. Settlers exposed them to a vast number of diseases, and tricked other Native Americans into agreements, in which they were starved, made to live in the cold, and which ultimately led to the death of many of them. Native Americans were resistant to being overtaken and fought back to protect their people and their land. Spanish settlers needed more laborers to cultivate new land, and explore additional regions for settlement. Spanish Conquerors like Lucas Vasquez de Ayllon sent out to find laborers in Western Europe. During his search, he found that Europeans that practiced Christianity did not believe in exploiting its people. In return, the Catholic Church, did however, not mind the exploit of non-Christians to Spanish Settlers. As groups resisted fiercely, they looked to other options in which they could gain access to the slave trade. African Americans to my surprise came as a third resort. Spanish settlers wanted to gain access to the dreams of gold and silver told to be lying within the American soil. However African Americans would prove to be more valuable than just for labor. Spanish Speaking Africans such as Gomez and Esteban were great explorers and go-between people when asked to settle what is now the state of New Mexico. Being intermediaries between the Native Americans and Spanish settlers, they showed the resourcefulness that Africans held during the colonization of America. As I continue to discover how Africans came about to be in America, I was intrigued to learn that the basis of slavery were not limited to race at all. Religion played the most important role in colonization of America, as well as people becoming enslaved. If you were not of Christian belief system, then you were subject to being enslaved. From Mr. Woods accounts, he told of how even John Smith was enslaved for a period of time. And that the bases of slavery were defined upon much greater tools. Heredity was significant in the slavery system, because children of former slaves are said to have been born into slavery. The only thing I can account the Spanish settlers for, was that they didn’t enslave their people for life, as well as the Dutch. Many of their slaves lives the lives of settlers, they just were required to be laborers, because of their religion. At any time it shows within his text that they could have been released from slavery with the submission of their religio n. The earliest definitions of slavery presented a great amount of problems, which the slave-owners did not agree too. Rhode Island defined slavery as a period of 10 years, and not a lifetime commitment. Christian religious groups would allow other slaves to become converted to their religion to once again regain their freedom. The readily number of slaves were beginning to decline, so now new guidelines would be put in place to ensure that the slave-owners would keep laborers all the time. This part of the 17th century would mark the beginning of when race became the solemn factor of how Africans would become and remain enslaved. This is the shift in African history that everyone would feel and become a part of. Africans held two surprisingly different fates. Those that were released to Latin America had better conditions than those located in North America. But life in North America for Africans would see a dramatic shift as the laws and rules progressed. Slave codes were laws that basically took away all rights of Africans living in North America. This would serve as a permanent handicap for Africans for almost two centuries. Then the colonist took a dramatic horrible step used in the states as well as the colonies. Dehumanizing. This would be the greatest contributor of racism in the United States. This Law passed in Virginia in 1705, would allow English Colonist to treat Africans as property, disregard their feelings or wellbeing, and deny them of basic human rights. And these practices would carry over well into the 20th century.

Development of Credit Facilities in Sierra Leone

Development of Credit Facilities in Sierra Leone Chapter 1 This study is on the creation of credit facilities to Small and Medium Size Enterprises in Sierra Leone with special focus on the construction industries. 1.1 Background to the Economy of Sierra Leone Sierra Leone is a relatively small country, on the West Coast of Africa with an area of approximately 28,000square miles. The estimated population is 5.5 million inhabitants, 30% of whom resides in the western area of the country according to recent census in 2006. The state of the country’s economy, immediately after independence from the British Colony in 1961 up to the 1970’s, was quite satisfactory in terms of performance. The exchange rate between the Leone and other foreign currencies was relatively good. More so, the British Pound Sterling was exchanged at One pound ( £1) to One Leone (Le1). The inflation rate was extremely low. The country’s earnings from exports were very much attractive, with Diamond export accounting for well over 50% of the country’s foreign exchange earnings. This was closely followed by cash crop exports such as Cocoa, coffee, oil palm, piassava and chillies. The country’s external debt position at this time was not high, Between 1972 to 1975, the economy started experiencing down turn that was mainly due to external factors, such as the famous oil price shock in 1973. Naturally, the 1980 Organisation of Africa Unity (OAU) summit that was hosted by the government of Sierra Leone fuelled the debt crisis in Sierra Leone. Because of the foreign exchange scarcity in the country, the credit agreement between domestic importers and their business partners aboard collapsed. In 1988, the country was forced to devalue her currency. Between 1992 and 1994, Sierra Leone successfully implemented an adjustment program supported by the International Monetary Fund (IMF) under the Right Accumulation Program (RAP). The World Bank also supported the program through the Reconstruction of Import Credit (RIC) in 1992 and the Structural Adjustment Credit (SAC) in 1993. Following the successful implementation of the RAP, the IMF approved a three year arrangement support under Enhanced Structural Adjustment Facility (ESAF). The implementation of the first annual program was disrupted by the escalation of the rebel activities in 1995. With the return of democracy in 1996, the IMF supported the economic recovery program adopted by the new Government with a second annual program under the ESAF. Poverty intensified with real per capita declining to US$142 in 2000. Since then Sierra Leone has been classified as the poorest country in the world and ranks at the bottom of the United Nations Development Programme (UNDP) Human Development Index. The growth in the economy has been underpinned by broad recovery in Agriculture, mining, manufacturing, construction and the service sector. The economy of the Country continues to worsen in early 1992 when the civil unrest started which causes untold sufferings on humans and the entire country. Many people were forced out of their houses and eventually became displaced persons and refugees in their own country and neighbouring country like Guinea, The Gambia and Ghana. Almost all segments of the business economy collapsed including banking and lending institutions. It was then the problems of growth in economy worsen and every thing completely deteriorated and collapsed. The almost 11 years of civil unrest ended in March 2002. The end of the war actually opens the door for a new beginning, for new economic growth and prosperity in the face of peace and unity. The situation has recently worsened because of the credit crunch faced by many of the world famous banking institutions and Sierra Leone has not been any exceptions. The effect coupled with other factors has created more gaps for banking institutions to provide loans to small and medium enterprises. In a press release from Prlog Dec. 15, 2008 by Robin Trehan as quoted â€Å"SMEs represent over ninety-nine percent of the country’s employers. While it is essential that these businesses obtain the necessary funding to remain active, they are often the first to suffer when financial crisis hits. Banks already facing financial hardship often deem SMEs as too risky to finance. Credit terms are becoming increasingly harder and qualifying for financing is subject to much stricter guidelines. The re are things that SMEs can do, however, to increase their chances of finding financing†. 1.2 Statement of the Problem The term credit in this thesis refers to an amount or sum placed at a person’s disposal by a bank and usually to be repaid with interest within a given period of time. Small and Medium Size Enterprises (SME) is very important in terms of the dynamic role in the development of the private sector in Sierra Leone. The SME’s are regarded as an engine for any economic growth and development in any country. They provide opportunities for job creation and expansion in the physical reconstruction of the economy especially for a post war development country like Sierra Leone. Majority of the physical infrastructures ranging from housing, office buildings and business structures were all destroyed during the civil unrest. These structures need to be reconstructed for the economy to grow and become prosper. Today many construction companies or firms have emerged to assist in the rehabilitation and reconstruction. While there may be some of the construction companies who have existed of years, it is also true that majority of these construction companies are new ones who are just coming up to help and provide their expertise in the development of Sierra Leone. But yet still, it is a challenge for many of these companies to adequately involve in the process of rehabilitation and reconstruction simply because they cannot get the required finance in the form of overdraft or loans, or provide the necessary collateral for the banks as required, making them less competitive. In Sierra Leone the performance of SME’s over the years has been very poor which is due to the fact that the creation of credit from the banks which is an essential stimulant for private investment in the construction industries has been grossly under performing. This is one of the reasons for poor performance of the economy in terms of growth in most developing countries including Sierra Leone. Construction companies have not been able to access huge funds by way of loan over the years from the banking and other financial institutions, mainly due to lack of confidence in the private sector as a result of problems like moral hazards and the absence of collateral security and the lack of experience in construction engineering. 1.3 Justification of the Study The importance of the construction industries in the process of rehabilitation and reconstruction of the war towns in Sierra Leone cannot be over-emphasized. During the war there was so much destruction of infrastructures in the country, now that there is peace there is high need for reconstructions and the development of new roads and structures to aid national growth. International organisations like the International Monetary Fund (IMF), World Bank, African Development Bank (ADB) main focus is to assist Small Medium Size Enterprises (SME) in developing countries gain strong financial base. It had been felt that SMEs employ majority of the work force in the developing countries, therefore, they have realised that when SME become financially stable the economy of the nation will be better and that the citizens will be able to live a comfortable life. The role of commercial banks and other financial institutions in private sector development and the assessment of their overall performance in terms of economic growth and development has not received much of the attention by researchers. The central bank maintaining interest rate at high level has greatly contributed to discourage SMEs from borrowing from retail banks and other financial institution for investment purposes. This is one of the reasons why most SMEs are under developed. Besides commercial banks are requesting for very stiff conditions to access loan by the private sector. A study on the provision of credit to construction companies for investment towards economic growth has not been studied in greater detail by previous researchers. This among others, gave me the urge to probe into the activities of the commercial banks and other financial institutions in the creation of credit to construction companies in Sierra Leone, This study is to help government and other professionals as well as other stakeholders, to grasp fully the implications of credit refusal to small and medium size enterprises and how it will affect the development of the nation. The result of this study is hope to enable banking and other financial institutions, local and national government and other stakeholders to device concrete ways by which small and medium size enterprises can easily get access to credit to undertake construction programmes. 1.4 Objectives of the study The main aim of the study is to assess the implications of credit creations by the banks and other financial institutions to Small and Medium Size Enterprises with special focus on the Construction Industries for economic growth and development in Sierra Leone. The specific objectives are: To determine the extent to which banks have been contributing to the development of the construction industries in Sierra Leone. To examine some of the reasons responsible for the inability of the construction industries to solicit loans from the banks and other financial institutions for the purpose of investment. To establish reasons for the reluctance of the banking and other financial institutions to provide the much needed funds for private sector development. To examine the reasons for the reluctance of the banking sector to provide the much needed funds for SME in the construction industries for development, even though SME’s are regarded as the engine of economic growth. 1.5 Research Questions: Certain research questions will be drawn up for proper examination of this objective. These include: To what extent do commercial banks provide funds to Small and Medium Size Enterprises in the construction Industries? What are the main problems encountered by the construction companies in terms of securing loans and overdrafts from the commercial banks? What is responsible for the low investment of the private sector (SME’s) in Sierra Leone? What is the role of the central bank in facilitating credit creation for SME’s in the pursuit of development in Sierra Leone? What is the role of the Government ministry in the area of infrastructural developmental plans for Sierra Leone? The study will make use of secondary data received from the Bank of Sierra Leone, Commercial Banks and some of the registered construction companies in Sierra Leone. The study will try to reveal the reasons for the constraints Small and Medium size Enterprises are facing in securing credit facilities from the banks. Interviews will be conducted with senior officers of both the banking industries and construction sectors, together with government officers in the area of national development for the country. 1.6 Definition of Operational Terms: 1. Credit Creation: Credit creation is the multiple expansions of banks demand deposits. It is an open secret now that banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to the customers on demand. 2. Venture Capital: Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business that is the subject of their investment. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003) 3. Gearing: Small businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies. (Mclaney, 2003) 4. Bank and Institutional Debt: Long term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007) 5. Security –the Bank’s Perspective: A bank has little to lose and much to gain by taking security for a loan. A bank’s solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated) 6. Security – the Borrower’s Perspective: It is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D, 2006) 7. Cash Flow Statements for Small Companies: Financial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard; the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit. (Wood F, 2002). CHAPTER 2 Literature Review 2.0 Introduction The purpose of this chapter is to make a review of related literature on Small and Medium isze Enterprises and the Creation of Credit in the Construction Industry. With these literatures the researcher will have a better understanding of the study, as well as what has already been done on it in the form of previous research. 2.2 Definition of Small and Medium Size Enterprises A business can be considered small on basis of predetermined criteria such as the number of employees, annual turnover or capital employed. In the late 1990s, it was estimated that small businesses with fewer than 50 employees accounted for 99 per cent of all UK business, almost 50 per cent of non government employment and 42 per cent of turnover. Small firms have become a focus for governmental policy at both national and intergovernmental level. Bolton in his report in 1971 identified three main characteristics of a small firm: were independently owned The business securities are not quoted in any established capital market that is they are not traded in the efficient market. were managed in a personalised way- The ownership of the business’s equity and hence its control lie in the hands of a small close knit-group; that is it is a family type business. possessed a limited share of the total market 2.3 Nature of Small and Medium Size Enterprises The Bolton report, the first official government inquiry into small firms attempted to establish standard definitions of small firms for particular sector of industry based on numerical indicators of size such as sales or number of employees. A firm with 250 employees in a labour intensive industry may still be a small firm. (Brown, 1987) Criteria for Small and Medium Size Enterprises Size Category Number of Employees Maximum Annual Turnover (euros) Maximum Balance balance sheet total Micro Firm 0 -9 2 million euros 2 million Small Firm 10 – 49 10 million euros 10 million Medium-sized Firm 50 – 249 50 million 43 million 2.4 Objectives of Small and Medium Size Enterprises In SME’s the managers and the shareholders are likely to be substantially the same person or at least closely connected with one another. Thus agency problems, and their potential associated costs, are likely to have little or possibly no impact on the typical small business. Because of the elimination of agency gap, most managers of SME’s are shareholder; they would make decisions following a pure wealth-maximising goal more determinedly than would be the case in the typical large enterprise. The motives of managers or owners of small businesses are diverse. These motives might be the desire to experience the satisfaction of building up a business, a desire to lead a particular way of life, or a desire to keep someone (perhaps family) tradition alive. Since it is possible for managers to know the personal objectives of shareholders of small business, decisions can probably be made with these in mind. Both large and small businesses that makes a series of decisions causing the wealth to diminish, will sooner or later fail. Wealth maximisation goal is very important to small business and cannot be ignored. 2.5 Organisation of Small and Medium Enterprises The research will consider Small and Medium Size Enterprises in the construction industries that are organised as private limited companies. According to Mclaney (2003) private companies need be of no minimum size; public companies must issue at least  £50,000 of nominal share capital, of which 25% must be paid up. There is no upper limit on the size of a private company. Private companies are entitled to restrict the transfer of their shares; that is it is possible for the company’s Articles of Association to contain a clause giving the directors the power to refuse to register a transfer, at their discretion. While private companies must publish annual accounts, the volume of details is rather less than that which the law requires of public companies. 2.6 Sources of Finance for Small and Medium Size Enterprises Several inquires have dealt with the financing of SMEs and each of these enquires discovered, to a greater extent, that small businesses find it more difficult and more expensive to raise external finance. A particular problem faced by small businesses in their quest for equity capital is the lack of an `exit route’. Generally investors require that there be some way of liquidating their investment before they are prepared to commit funds to it. A number of schemes have been introduced to help small businesses: 2.6.1. The loan Guarantee Scheme (LGS) as first introduced in 1981 to cover situations were potential borrowers were unable to provide sufficient collateral or where the bank deem the risk of lending unacceptable. 2.6.2. The Enterprise Investment Scheme (EIS) – This scheme replaced the Business Expansion Scheme (BES) and it is designed to help small unquoted companies to raise equity finance from business angels 2.6.3.The Venture Capital Trust (VCT) – The trust was introduced in 1995 to encourage individuals to invest in smaller, unlisted trading companies. Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003) 2.6.4. The Enterprise Fund (EF) it was announced in the competitiveness white paper in 1998 and is designed to help the financing of small businesses with growth potential. 2.6.5. The National Business Angel Network (NBAN) it was launched in 1999 to connect ‘business angels’ with companies seeking equity capital 2.6.6. The late payment of Commercial Debts (Interest) act 1998 gives certain small businesses a statutory right to claim interest from large businesses and the public sector on late payment of commercial debts. 2.7 Gearing Small businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies.(Mclaney,2003) 2.8 Help and Advice to Small Businesses One of the major barriers faced by SMEs is the lack of information, help and advice on their operations. Recent initiative to improve this sphere includes: 2.8.1. The business link network – organised in 1993 as a ‘one stop shop’ for information and advice to SMEs. It brings together the services of major business development services in the single accessible location. 2.8.2. The Enterprise Zone – launched in 1997 as a definitive internet site for business information. It provides help on a whole range of business issues. 2.8.3. The Information Society Initiative/Interforum E-Commerce Award – launched in 1999 as part of government’s e-commerce strategy. It is essentially an award scheme to recognise and reward best practice in the use of electronic trading among smaller firms. 2.9 Bank and Institutional Debt Long term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007) 2.10 Security –the Bank’s Perspective A bank has little to lose and much to gain by taking security for a loan. A bank’s solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated) 2.11 Security – the Borrower’s Perspective It is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D,2006) 2.12 Working Capital Problems of the Small Business Working capital is the difference between current assets over current liabilities. The amount invested by businesses in working capital is often high in proportion to the total assets employed. It is important that these amounts are managed properly. It is often claimed that many small businesses suffer from a lack of capital and, where this is the case, tight control over working capital investment becomes critical. There are evidence, however, that SB are not very good at managing their working capital, and this has been cited as the major cause of their high failure rate compared with that of large businesses. 2.13 Credit Management Small businesses don’t have the resources to manage their trade debtors (account receivables) effectively. Most small businesses don’t have a credit control department. Small business also lack proper debt collection procedures, such as prompt invoicing and sending out regular statements. These risks probably tend to increase where there is an excessive concern for growth. In an attempt to increase sales, small businesses may be too willing to extend credit to customers that are poor credit risk Lack of market power is another issue for small businesses. They find themselves in a weak position when negotiating credit terms with larger businesses. When big customer exceeds the terms of credit, the small supplier may feel inhibited from pressing the customer for payment in case future sales are lost. (A survey undertaken by the Credit Management Research Centre (CMRC) during April and June, 2003, indicates that small businesses are likely to have to wait an average of 60 days for their trade debtors to pay. 2.14 Cash Flow Statements for Small Companies Financial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard; the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit.(Wood F,2002) Credit Creation 2.15 Definition of Credit Creation The BNET business dictionary defines credit creation as the collective ability of lenders to make money available to borrowers. Credit creation is the multiple expansions of banks demand deposits. Banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to customers on demand. The tendency on the part of commercial banks to expand their demand deposits as a multiple of their excess cash reserve is called creation of credit. 2.16 Functions of Financial Intermediation in Credit Creation Financial intermediation is the process of channelling funds between those who wish to lend or invest and those who wish to borrow or require investment funds. Financial intermediaries act as principal, creating new financial assets and liabilities. They do not act solely as agents, charging a commission for their services. (The Monetary and Financial System-CIB/BPP Publication 1993 Edition) Any institution standing between the ultimate provider of funds and the ultimate user of funds is engaged in financial intermediation. There are many types of institutions and other organisations that act as intermediaries in matching firms and individuals who need finance with those who wish to invest. These institutions also provide other services which are non-intermediary services like financial advisory services, fund management services and advice to undertakers and mergers provider by merchant banks. Some of the organisation that acts as financial intermediaries is as follows: 2.16.1 Clearing Banks – this bank participate in system which simplifies daily payment so that all the thousands of individual customer payments are reduced to a few transfers of credit between the banks. They offer various accounts to investors and provide large amount of short to medium-term loans to the business sector and the personal sector. The work of these institutions can best be understood through a consideration of the main items in their balance sheet. 2.16.2 Clearing Bank Liabilities – The money from the banks responsible comes chiefly from their customer’s sight and time deposits- mostly current and deposit accounts with which most people are familiar. An important additional item relates to certificates of deposit. These are issued generally for a medium amount of  £50,000 and a maximum of  £500,000 with an initial term to maturity of from three months to five years. Clearing Bank Assets Customers’ money is re-lent in a variety of ways. The main aim of the bank is to have a range of lending instruments of varying terms so that money can be recovered quickly and yet, at the same time, earn the maximum return. 2.16.3 Investment Banks / Merchant Banks The investment banks or Merchant banks have some functions that they undertake: 2.16.3.i Financial Advice to Business Firms Few manufacturing or commercial companies of any size can now afford to be without the advice of a merchant bank. Such advice is necessary in order to obtain investment capital, to invest surplus funds, to guard against takeover, or to take over others. Increasingly, the merchant banks have themselves become activity involved in the financial management of their business client and have had an influence over the direction these affairs have taken. 2.16.3.ii Providing Finance to Business Merchant banks also compete in the services of leasing, factoring, hire-purchase and general lending. They are also the gateway to the capital market for long-term funds because they are likely to have specified departments handling capital issues as ‘issuing houses’. 2.16.4 Foreign Trade A lot of merchant bank are active in the promotion of foreign trade by providing marine insurance, credits, and assistance in appointing foreign agents and arranging foreign payments. Merchant bank is essentially in the general business of creating wealth and of helping those who show that they are capable of successful business enterprise. It is expected that merchant banks will operate without the large branch network necessary for a clearing bank, they work closely with their clients and be more ready to take business risk and promote business enterprise than clearing bank. 2.16.5 Building Societies These take deposits from the household sector and lend to individuals buying their own homes. They have recently grown rapidly in the UK and now provide many of the services offered by clearing banks. Over the years many have converted to banks. 2.16.6 Finance Companies/Houses – Providing medium-term instalment credits to the business and personal sector. These are usually owned by business sector firms or by other financial itermediaries. 2.17 Services Provided by Financial Institutions Financial institutions are organisations that provide services in connection with one or more of the following:- Financial intermediation, linking ultimate providers of funds with ultimate users and creating new financial assets in the process. Exchanging financial assets on behalf of their customers, that is acting as brokers or agents for clients. Exchanging financial assets for their own accounts proprietary dealers, as they are termed. Helping to create financial assets for their customers, and then selling these assets to others in the market underwriting new share issues, for example Providing investment advice to others, example to people seeking a personal pension or to firms on mergers and takeovers. Fund management- managing the whole or part of a pension fund, for example some large non-financial companies have their own financial subsidiaries. In the United Kingdom Ford Motor Finance and Mark and Spencer Finance Se Development of Credit Facilities in Sierra Leone Development of Credit Facilities in Sierra Leone Chapter 1 This study is on the creation of credit facilities to Small and Medium Size Enterprises in Sierra Leone with special focus on the construction industries. 1.1 Background to the Economy of Sierra Leone Sierra Leone is a relatively small country, on the West Coast of Africa with an area of approximately 28,000square miles. The estimated population is 5.5 million inhabitants, 30% of whom resides in the western area of the country according to recent census in 2006. The state of the country’s economy, immediately after independence from the British Colony in 1961 up to the 1970’s, was quite satisfactory in terms of performance. The exchange rate between the Leone and other foreign currencies was relatively good. More so, the British Pound Sterling was exchanged at One pound ( £1) to One Leone (Le1). The inflation rate was extremely low. The country’s earnings from exports were very much attractive, with Diamond export accounting for well over 50% of the country’s foreign exchange earnings. This was closely followed by cash crop exports such as Cocoa, coffee, oil palm, piassava and chillies. The country’s external debt position at this time was not high, Between 1972 to 1975, the economy started experiencing down turn that was mainly due to external factors, such as the famous oil price shock in 1973. Naturally, the 1980 Organisation of Africa Unity (OAU) summit that was hosted by the government of Sierra Leone fuelled the debt crisis in Sierra Leone. Because of the foreign exchange scarcity in the country, the credit agreement between domestic importers and their business partners aboard collapsed. In 1988, the country was forced to devalue her currency. Between 1992 and 1994, Sierra Leone successfully implemented an adjustment program supported by the International Monetary Fund (IMF) under the Right Accumulation Program (RAP). The World Bank also supported the program through the Reconstruction of Import Credit (RIC) in 1992 and the Structural Adjustment Credit (SAC) in 1993. Following the successful implementation of the RAP, the IMF approved a three year arrangement support under Enhanced Structural Adjustment Facility (ESAF). The implementation of the first annual program was disrupted by the escalation of the rebel activities in 1995. With the return of democracy in 1996, the IMF supported the economic recovery program adopted by the new Government with a second annual program under the ESAF. Poverty intensified with real per capita declining to US$142 in 2000. Since then Sierra Leone has been classified as the poorest country in the world and ranks at the bottom of the United Nations Development Programme (UNDP) Human Development Index. The growth in the economy has been underpinned by broad recovery in Agriculture, mining, manufacturing, construction and the service sector. The economy of the Country continues to worsen in early 1992 when the civil unrest started which causes untold sufferings on humans and the entire country. Many people were forced out of their houses and eventually became displaced persons and refugees in their own country and neighbouring country like Guinea, The Gambia and Ghana. Almost all segments of the business economy collapsed including banking and lending institutions. It was then the problems of growth in economy worsen and every thing completely deteriorated and collapsed. The almost 11 years of civil unrest ended in March 2002. The end of the war actually opens the door for a new beginning, for new economic growth and prosperity in the face of peace and unity. The situation has recently worsened because of the credit crunch faced by many of the world famous banking institutions and Sierra Leone has not been any exceptions. The effect coupled with other factors has created more gaps for banking institutions to provide loans to small and medium enterprises. In a press release from Prlog Dec. 15, 2008 by Robin Trehan as quoted â€Å"SMEs represent over ninety-nine percent of the country’s employers. While it is essential that these businesses obtain the necessary funding to remain active, they are often the first to suffer when financial crisis hits. Banks already facing financial hardship often deem SMEs as too risky to finance. Credit terms are becoming increasingly harder and qualifying for financing is subject to much stricter guidelines. The re are things that SMEs can do, however, to increase their chances of finding financing†. 1.2 Statement of the Problem The term credit in this thesis refers to an amount or sum placed at a person’s disposal by a bank and usually to be repaid with interest within a given period of time. Small and Medium Size Enterprises (SME) is very important in terms of the dynamic role in the development of the private sector in Sierra Leone. The SME’s are regarded as an engine for any economic growth and development in any country. They provide opportunities for job creation and expansion in the physical reconstruction of the economy especially for a post war development country like Sierra Leone. Majority of the physical infrastructures ranging from housing, office buildings and business structures were all destroyed during the civil unrest. These structures need to be reconstructed for the economy to grow and become prosper. Today many construction companies or firms have emerged to assist in the rehabilitation and reconstruction. While there may be some of the construction companies who have existed of years, it is also true that majority of these construction companies are new ones who are just coming up to help and provide their expertise in the development of Sierra Leone. But yet still, it is a challenge for many of these companies to adequately involve in the process of rehabilitation and reconstruction simply because they cannot get the required finance in the form of overdraft or loans, or provide the necessary collateral for the banks as required, making them less competitive. In Sierra Leone the performance of SME’s over the years has been very poor which is due to the fact that the creation of credit from the banks which is an essential stimulant for private investment in the construction industries has been grossly under performing. This is one of the reasons for poor performance of the economy in terms of growth in most developing countries including Sierra Leone. Construction companies have not been able to access huge funds by way of loan over the years from the banking and other financial institutions, mainly due to lack of confidence in the private sector as a result of problems like moral hazards and the absence of collateral security and the lack of experience in construction engineering. 1.3 Justification of the Study The importance of the construction industries in the process of rehabilitation and reconstruction of the war towns in Sierra Leone cannot be over-emphasized. During the war there was so much destruction of infrastructures in the country, now that there is peace there is high need for reconstructions and the development of new roads and structures to aid national growth. International organisations like the International Monetary Fund (IMF), World Bank, African Development Bank (ADB) main focus is to assist Small Medium Size Enterprises (SME) in developing countries gain strong financial base. It had been felt that SMEs employ majority of the work force in the developing countries, therefore, they have realised that when SME become financially stable the economy of the nation will be better and that the citizens will be able to live a comfortable life. The role of commercial banks and other financial institutions in private sector development and the assessment of their overall performance in terms of economic growth and development has not received much of the attention by researchers. The central bank maintaining interest rate at high level has greatly contributed to discourage SMEs from borrowing from retail banks and other financial institution for investment purposes. This is one of the reasons why most SMEs are under developed. Besides commercial banks are requesting for very stiff conditions to access loan by the private sector. A study on the provision of credit to construction companies for investment towards economic growth has not been studied in greater detail by previous researchers. This among others, gave me the urge to probe into the activities of the commercial banks and other financial institutions in the creation of credit to construction companies in Sierra Leone, This study is to help government and other professionals as well as other stakeholders, to grasp fully the implications of credit refusal to small and medium size enterprises and how it will affect the development of the nation. The result of this study is hope to enable banking and other financial institutions, local and national government and other stakeholders to device concrete ways by which small and medium size enterprises can easily get access to credit to undertake construction programmes. 1.4 Objectives of the study The main aim of the study is to assess the implications of credit creations by the banks and other financial institutions to Small and Medium Size Enterprises with special focus on the Construction Industries for economic growth and development in Sierra Leone. The specific objectives are: To determine the extent to which banks have been contributing to the development of the construction industries in Sierra Leone. To examine some of the reasons responsible for the inability of the construction industries to solicit loans from the banks and other financial institutions for the purpose of investment. To establish reasons for the reluctance of the banking and other financial institutions to provide the much needed funds for private sector development. To examine the reasons for the reluctance of the banking sector to provide the much needed funds for SME in the construction industries for development, even though SME’s are regarded as the engine of economic growth. 1.5 Research Questions: Certain research questions will be drawn up for proper examination of this objective. These include: To what extent do commercial banks provide funds to Small and Medium Size Enterprises in the construction Industries? What are the main problems encountered by the construction companies in terms of securing loans and overdrafts from the commercial banks? What is responsible for the low investment of the private sector (SME’s) in Sierra Leone? What is the role of the central bank in facilitating credit creation for SME’s in the pursuit of development in Sierra Leone? What is the role of the Government ministry in the area of infrastructural developmental plans for Sierra Leone? The study will make use of secondary data received from the Bank of Sierra Leone, Commercial Banks and some of the registered construction companies in Sierra Leone. The study will try to reveal the reasons for the constraints Small and Medium size Enterprises are facing in securing credit facilities from the banks. Interviews will be conducted with senior officers of both the banking industries and construction sectors, together with government officers in the area of national development for the country. 1.6 Definition of Operational Terms: 1. Credit Creation: Credit creation is the multiple expansions of banks demand deposits. It is an open secret now that banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to the customers on demand. 2. Venture Capital: Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business that is the subject of their investment. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003) 3. Gearing: Small businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies. (Mclaney, 2003) 4. Bank and Institutional Debt: Long term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007) 5. Security –the Bank’s Perspective: A bank has little to lose and much to gain by taking security for a loan. A bank’s solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated) 6. Security – the Borrower’s Perspective: It is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D, 2006) 7. Cash Flow Statements for Small Companies: Financial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard; the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit. (Wood F, 2002). CHAPTER 2 Literature Review 2.0 Introduction The purpose of this chapter is to make a review of related literature on Small and Medium isze Enterprises and the Creation of Credit in the Construction Industry. With these literatures the researcher will have a better understanding of the study, as well as what has already been done on it in the form of previous research. 2.2 Definition of Small and Medium Size Enterprises A business can be considered small on basis of predetermined criteria such as the number of employees, annual turnover or capital employed. In the late 1990s, it was estimated that small businesses with fewer than 50 employees accounted for 99 per cent of all UK business, almost 50 per cent of non government employment and 42 per cent of turnover. Small firms have become a focus for governmental policy at both national and intergovernmental level. Bolton in his report in 1971 identified three main characteristics of a small firm: were independently owned The business securities are not quoted in any established capital market that is they are not traded in the efficient market. were managed in a personalised way- The ownership of the business’s equity and hence its control lie in the hands of a small close knit-group; that is it is a family type business. possessed a limited share of the total market 2.3 Nature of Small and Medium Size Enterprises The Bolton report, the first official government inquiry into small firms attempted to establish standard definitions of small firms for particular sector of industry based on numerical indicators of size such as sales or number of employees. A firm with 250 employees in a labour intensive industry may still be a small firm. (Brown, 1987) Criteria for Small and Medium Size Enterprises Size Category Number of Employees Maximum Annual Turnover (euros) Maximum Balance balance sheet total Micro Firm 0 -9 2 million euros 2 million Small Firm 10 – 49 10 million euros 10 million Medium-sized Firm 50 – 249 50 million 43 million 2.4 Objectives of Small and Medium Size Enterprises In SME’s the managers and the shareholders are likely to be substantially the same person or at least closely connected with one another. Thus agency problems, and their potential associated costs, are likely to have little or possibly no impact on the typical small business. Because of the elimination of agency gap, most managers of SME’s are shareholder; they would make decisions following a pure wealth-maximising goal more determinedly than would be the case in the typical large enterprise. The motives of managers or owners of small businesses are diverse. These motives might be the desire to experience the satisfaction of building up a business, a desire to lead a particular way of life, or a desire to keep someone (perhaps family) tradition alive. Since it is possible for managers to know the personal objectives of shareholders of small business, decisions can probably be made with these in mind. Both large and small businesses that makes a series of decisions causing the wealth to diminish, will sooner or later fail. Wealth maximisation goal is very important to small business and cannot be ignored. 2.5 Organisation of Small and Medium Enterprises The research will consider Small and Medium Size Enterprises in the construction industries that are organised as private limited companies. According to Mclaney (2003) private companies need be of no minimum size; public companies must issue at least  £50,000 of nominal share capital, of which 25% must be paid up. There is no upper limit on the size of a private company. Private companies are entitled to restrict the transfer of their shares; that is it is possible for the company’s Articles of Association to contain a clause giving the directors the power to refuse to register a transfer, at their discretion. While private companies must publish annual accounts, the volume of details is rather less than that which the law requires of public companies. 2.6 Sources of Finance for Small and Medium Size Enterprises Several inquires have dealt with the financing of SMEs and each of these enquires discovered, to a greater extent, that small businesses find it more difficult and more expensive to raise external finance. A particular problem faced by small businesses in their quest for equity capital is the lack of an `exit route’. Generally investors require that there be some way of liquidating their investment before they are prepared to commit funds to it. A number of schemes have been introduced to help small businesses: 2.6.1. The loan Guarantee Scheme (LGS) as first introduced in 1981 to cover situations were potential borrowers were unable to provide sufficient collateral or where the bank deem the risk of lending unacceptable. 2.6.2. The Enterprise Investment Scheme (EIS) – This scheme replaced the Business Expansion Scheme (BES) and it is designed to help small unquoted companies to raise equity finance from business angels 2.6.3.The Venture Capital Trust (VCT) – The trust was introduced in 1995 to encourage individuals to invest in smaller, unlisted trading companies. Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003) 2.6.4. The Enterprise Fund (EF) it was announced in the competitiveness white paper in 1998 and is designed to help the financing of small businesses with growth potential. 2.6.5. The National Business Angel Network (NBAN) it was launched in 1999 to connect ‘business angels’ with companies seeking equity capital 2.6.6. The late payment of Commercial Debts (Interest) act 1998 gives certain small businesses a statutory right to claim interest from large businesses and the public sector on late payment of commercial debts. 2.7 Gearing Small businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies.(Mclaney,2003) 2.8 Help and Advice to Small Businesses One of the major barriers faced by SMEs is the lack of information, help and advice on their operations. Recent initiative to improve this sphere includes: 2.8.1. The business link network – organised in 1993 as a ‘one stop shop’ for information and advice to SMEs. It brings together the services of major business development services in the single accessible location. 2.8.2. The Enterprise Zone – launched in 1997 as a definitive internet site for business information. It provides help on a whole range of business issues. 2.8.3. The Information Society Initiative/Interforum E-Commerce Award – launched in 1999 as part of government’s e-commerce strategy. It is essentially an award scheme to recognise and reward best practice in the use of electronic trading among smaller firms. 2.9 Bank and Institutional Debt Long term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007) 2.10 Security –the Bank’s Perspective A bank has little to lose and much to gain by taking security for a loan. A bank’s solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated) 2.11 Security – the Borrower’s Perspective It is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D,2006) 2.12 Working Capital Problems of the Small Business Working capital is the difference between current assets over current liabilities. The amount invested by businesses in working capital is often high in proportion to the total assets employed. It is important that these amounts are managed properly. It is often claimed that many small businesses suffer from a lack of capital and, where this is the case, tight control over working capital investment becomes critical. There are evidence, however, that SB are not very good at managing their working capital, and this has been cited as the major cause of their high failure rate compared with that of large businesses. 2.13 Credit Management Small businesses don’t have the resources to manage their trade debtors (account receivables) effectively. Most small businesses don’t have a credit control department. Small business also lack proper debt collection procedures, such as prompt invoicing and sending out regular statements. These risks probably tend to increase where there is an excessive concern for growth. In an attempt to increase sales, small businesses may be too willing to extend credit to customers that are poor credit risk Lack of market power is another issue for small businesses. They find themselves in a weak position when negotiating credit terms with larger businesses. When big customer exceeds the terms of credit, the small supplier may feel inhibited from pressing the customer for payment in case future sales are lost. (A survey undertaken by the Credit Management Research Centre (CMRC) during April and June, 2003, indicates that small businesses are likely to have to wait an average of 60 days for their trade debtors to pay. 2.14 Cash Flow Statements for Small Companies Financial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard; the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit.(Wood F,2002) Credit Creation 2.15 Definition of Credit Creation The BNET business dictionary defines credit creation as the collective ability of lenders to make money available to borrowers. Credit creation is the multiple expansions of banks demand deposits. Banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to customers on demand. The tendency on the part of commercial banks to expand their demand deposits as a multiple of their excess cash reserve is called creation of credit. 2.16 Functions of Financial Intermediation in Credit Creation Financial intermediation is the process of channelling funds between those who wish to lend or invest and those who wish to borrow or require investment funds. Financial intermediaries act as principal, creating new financial assets and liabilities. They do not act solely as agents, charging a commission for their services. (The Monetary and Financial System-CIB/BPP Publication 1993 Edition) Any institution standing between the ultimate provider of funds and the ultimate user of funds is engaged in financial intermediation. There are many types of institutions and other organisations that act as intermediaries in matching firms and individuals who need finance with those who wish to invest. These institutions also provide other services which are non-intermediary services like financial advisory services, fund management services and advice to undertakers and mergers provider by merchant banks. Some of the organisation that acts as financial intermediaries is as follows: 2.16.1 Clearing Banks – this bank participate in system which simplifies daily payment so that all the thousands of individual customer payments are reduced to a few transfers of credit between the banks. They offer various accounts to investors and provide large amount of short to medium-term loans to the business sector and the personal sector. The work of these institutions can best be understood through a consideration of the main items in their balance sheet. 2.16.2 Clearing Bank Liabilities – The money from the banks responsible comes chiefly from their customer’s sight and time deposits- mostly current and deposit accounts with which most people are familiar. An important additional item relates to certificates of deposit. These are issued generally for a medium amount of  £50,000 and a maximum of  £500,000 with an initial term to maturity of from three months to five years. Clearing Bank Assets Customers’ money is re-lent in a variety of ways. The main aim of the bank is to have a range of lending instruments of varying terms so that money can be recovered quickly and yet, at the same time, earn the maximum return. 2.16.3 Investment Banks / Merchant Banks The investment banks or Merchant banks have some functions that they undertake: 2.16.3.i Financial Advice to Business Firms Few manufacturing or commercial companies of any size can now afford to be without the advice of a merchant bank. Such advice is necessary in order to obtain investment capital, to invest surplus funds, to guard against takeover, or to take over others. Increasingly, the merchant banks have themselves become activity involved in the financial management of their business client and have had an influence over the direction these affairs have taken. 2.16.3.ii Providing Finance to Business Merchant banks also compete in the services of leasing, factoring, hire-purchase and general lending. They are also the gateway to the capital market for long-term funds because they are likely to have specified departments handling capital issues as ‘issuing houses’. 2.16.4 Foreign Trade A lot of merchant bank are active in the promotion of foreign trade by providing marine insurance, credits, and assistance in appointing foreign agents and arranging foreign payments. Merchant bank is essentially in the general business of creating wealth and of helping those who show that they are capable of successful business enterprise. It is expected that merchant banks will operate without the large branch network necessary for a clearing bank, they work closely with their clients and be more ready to take business risk and promote business enterprise than clearing bank. 2.16.5 Building Societies These take deposits from the household sector and lend to individuals buying their own homes. They have recently grown rapidly in the UK and now provide many of the services offered by clearing banks. Over the years many have converted to banks. 2.16.6 Finance Companies/Houses – Providing medium-term instalment credits to the business and personal sector. These are usually owned by business sector firms or by other financial itermediaries. 2.17 Services Provided by Financial Institutions Financial institutions are organisations that provide services in connection with one or more of the following:- Financial intermediation, linking ultimate providers of funds with ultimate users and creating new financial assets in the process. Exchanging financial assets on behalf of their customers, that is acting as brokers or agents for clients. Exchanging financial assets for their own accounts proprietary dealers, as they are termed. Helping to create financial assets for their customers, and then selling these assets to others in the market underwriting new share issues, for example Providing investment advice to others, example to people seeking a personal pension or to firms on mergers and takeovers. Fund management- managing the whole or part of a pension fund, for example some large non-financial companies have their own financial subsidiaries. In the United Kingdom Ford Motor Finance and Mark and Spencer Finance Se