Doing Business in China Research Paper Example | Topics and Well Written Essays - 2000 words

Doing Business in China - Research Paper Example There is more than 1 billion population in China; one sixth of the world’s population lives in China itself (Colson, 2013). More than 56 ethnic groups are recognized in China and 90 percent of the population is Hans Chinese but the group also consists of other ethnic groups like Zhuang, Yi Miao, Uighar Manchu and Dhong (Colson, 2013). Like any other countries culture the cultural values of China has altered slightly due to the impact of globalization (Ward, Entrkin & Pearson, 2002).During the Chinese Cultural Revolution in the People’s Republic of China the orthodox Chinese Confucianism was heavily criticized on several grounds. After the Cultural Revolution there was a slight alteration in the Chinese value system and even culture dominated cities like Singapore, Taiwan and Hong Kong witnessed considerable amount of changes (Yau, 2007). The Chinese culture is largely influenced by the social interactions and interpersonal relationships between the individuals in the so ciety. The Chinese language is spoken by more than 85 percent of the population and is considered as one of the toughest language of the world. The language is also called Putonghua and is also claimed as the country’s national and official language (Kane, 2006). ... China: Individual or Collectivist? It is observed that the Chinese society is a highly collectivist culture where the interest of the team are given more importance than the priority of the individual. It is not necessary that in a family oriented business there would be preferential treatment towards the family members. The workers would prefer working on a holiday or a public holiday to meet the deadlines of the work. The commitment towards the organization is high than the employee interest and goals (Duel, 2012).The relationships of employees within the group are warm and cooperative while the relationship with other groups is hostile and cold. The Chinese employees believe in cooperating with each other for delivery of excellent performance (Pang, Roberts & Sutton, 1998). For example the MG6 was the first automobile designed by Shanghai Automotive Corporation in UK. The success of the car was totally contributed to the effective teamwork between the Chinese employees. If a weste rn organization wishes to collaborate with the Chinese department then they should lay emphasis on communicating the ideas and process to the Chinese employees with patience and clarity for successful performance (Xiaoming, 2011). China: High or Low Power Distance? The power distance lays emphasis on the impact of the influence of the culture within a society or an organization (SagePub, 2006). It is observed that the individuals working in the society and the employees working in the organization are not treated as equal. The Chinese Society maintains a rank system and follows the hierarchy stringently. The Chinese society believes that the inequalities prevalent in the society are

Corporate finance Essay Example | Topics and Well Written Essays - 750 words - 2

Corporate finance - Essay Example Therefore, the depreciation for the last is uniform and equal to $ 9,143. In the second scenario, a brand new control system at a cost of $600,000 is installed. The revenue remains the same, but the operational costs are reduced to $1,020,000. The calculation of revenue, operational costs, tax depreciation, and pre-tax profit, company’s tax, after tax income, cash flow, present value and net present value are calculated as in the first scenario. In the two scenarios, overhauling mark 1 would take it out of service for 6 months and it would resume commercial operation after an year. In the calculation done, the revenue is obtained starting second year and the operational costs are calculated from second year. The tax depreciation however, starts from the first year and the after tax income for the first year is seen to be negative meaning a loss is incurred in the first year since investment have been made yet no revenue is earned. The amount obtained after selling Mark 1 is assumed to be part of the cash used to purchase the new plane and is therefore, deducted from the initial cost. The total operating cost is the sum of annual operating costs incremented by 2.5% inflation rate every year for 20 years. There is no operating cost in the first year as the plane is delivered in the second year. From the analysis done above and the calculation of Net Present Value of the two scenarios involving overhauling of Mark 1 plane and buying a new plane, the following recommendations are hereby presented. The investment that gives a higher Net Present Value is the best provided they have the same lives (Hill 26). Overhauling Mark 1 without purchasing new control system gave an NPV of $ 150,050 while if a new control system is purchased, the NPV is $365,942.10. From the two results, inclusion of a new control system gave a higher NPV and hence considering the two options, the best investment is to purchase a new control system for the plane. When annual

Organizational Buyer Behavior and Buyer-Seller Relationships Essay Example for Free

Organizational Buyer Behavior and Buyer-Seller Relationships Essay Business to business marketing also known as Industrial marketing is the marketing of goods services to organizations including commercial enterprises, government and other profit non-profit institutions for use in the goods services they in turn produce for resale to other customers or to facilitate the operation of their enterprise (Reeder, Brierty, 2002). Business to business market is characterized by few customers who buy in very large quantities and are geographically concentrated. The customers are professional and rational in their purchase approach. The nature of demand is derived demand, which is usually customized. The channels of distribution are shorter and there is more emphasis on personal face-to-face communication. In this era of globalization the business environment is characterized by intense competition. To sustain and grow in such a competitive economic environment, business organizations are under tremendous pressure to manufacture a product or provide a service that is of optimum quality, is customized to individual customer requirements and is delivered on time at minimum possible price. The role of the suppliers is crucial in helping the business organizations to achieve this objective. To succeed and grow in such business to business markets business marketers need to understand the Business Buyer Behavior and evolve close, enduring and long-term relationships. Business Buyer Behavior Understanding the dynamics of business buying behavior including the organizational buying process, the types of buying situations, forces influencing the organization buyer behavior, the composition of the buying center and the motives and the roles played by each member of the buying center is crucial for business marketers to identify profitable market segments, locate the various buying influences within these segments and reaching these buyers efficiently and effectively with product or service offerings that satisfy their needs. The Organizational Buying Process The organizational buying behavior is a process rather than an isolated program. It involves comprehensive phases or stages. The process begins with the recognition of a need for a product or service by someone in the company. Broad parameters for the desired product/service are then worked out. Detailed specifications and description for the desired product or service are developed. Once the company has defined the product /service it needs then the search for potential suppliers who can meet the needs begins, alternative suppliers are identified, asked to submit their proposals and the proposals analyzed. The short-listed suppliers are invited for negotiations and the final suppliers are selected. The order is then placed with the selected suppliers on the agreed terms. Finally the performance of the firms supplying the required products/ services is reviewed periodically. The buying process stage of the potential buyer for the seller’s product or service will have a major implication on the marketing approach to be adopted by the seller. Types of Buying Situations There are basically three major types of buying situations, namely the straight rebuy, modified rebuy and new-task buy. In a straight rebuy situation the buyer reorders a product or service without any modifications on a routine basis through the purchase department. In a modified rebuy situation the buyer may wish a modification in product/service specifications, prices, terms of supply etc. This situation usually involves more number of participants in the buying decision process. In a new task buying situation the company is buying a product or service for the first time. In such a situation the organization buying process is more complex and involves many more number of participants from different departments in the organization. The buying company also needs to decide on the product/service specifications, prices, delivery terms, order quantities, service terms etc. Forces Influencing Business Buying Behavior The organization buying behavior is influenced by environmental forces like changes in the domestic and global economy and changes in the technologies. The rapid strides made in information technology especially Internet technology has had a major influence in the way businesses buy. For example most of the small and large business organizations buy computer systems from Dell through its well developed website www. ell. com. Organization buying behavior is also influenced by the organizational forces like centralization and decentralization of purchase and strategic role and priorities of purchase prevalent in the given organization. The group forces influencing behavior include the composition, motives and the roles played by each member of the buying center. Buying Center It is the decision-making uni t of a buying organization and comprises of all members of the organization who are involved in the buying decision process. The members of the buying center will change depending on the product/service being purchased and the buying situation in which it is being purchased. The buying center members may play any one or a combination of the five roles namely, users, influencers, buyers, deciders and gatekeepers. Users are the members who will actually use the product being offered. Influencers are members who influence the purchase. Buyers are members who have the formal authority to make the purchase. Deciders are members who have formal or informal power to select/approve the final suppliers. Gatekeepers are members who control the flow of information from the seller to other members of the buying center. The buying motives/objectives of each member of the buying center through which the members evaluate potential suppliers may differ. The motives may include task oriented objectives such as price, quality, service and Return on Investment and non-task oriented objectives such as recognition, promotion, increments and job security. Companies involved in business to business marketing need to clearly identify the buying situation, the stage or the phase in the buying decision making process for the product being offered, the various forces influencing the buying organizations behavior, the composition of the buying center, the role played by each member of the buying center and the criteria on which they evaluate the suppliers for each individual customer. Based on such an understanding they should evolve suitable marketing strategies for success. For example Unilever the British FMCG major may need new high-speed packaging equipment for its innovation in detergent ‘small mighty’. Companies in the business of packaging equipment need to understand that it is a new task buy situation for Unilever. And the company may be in the need identification stage of the buying process. They need to have closer relationship with the members from different functional areas like operations, engineering, design, finance and purchase who may comprise the buying center, understand the motives of purchase and the role played by each member. This is crucial because each of this buyer behavior characteristic will have an implication on the buying decision process at Unilever. This will help the supplier to evolve suitable marketing strategies to be the favoured supplier of Unilever. Relationship emphasis in Business to Business Marketing In the highly competitive environment that is prevalent today, suppliers have evolved into business partners. There is a major emphasis on close and long-term relationships in the business to business markets. To maintain the relationships, business markets must develop an intimate knowledge of the customers and add value to it. Relationship marketing centers on all marketing activities directed towards establishing, developing and maintaining successful exchanges with customers (Morgan, Hunt, 1994). A strong relationship between the buyer and the seller is a win-win situation for both. The seller will have a competitive advantage over his competition and the buyer will have effective business solutions to his problem. The relationships between the buyer and the seller in the business to business setup are positioned on a spectrum with transactional exchanges on one end and collaborative exchanges at the other extreme with value-added exchanges in the middle. Transactional Exchanges focus on timely exchange of a product/service for a competitive price. Economy and necessity are the main motivational factors of such exchanges with little interest on the part of the buyer or the seller to extend the relationship. Such types of exchanges may be preferred by the buying organization when the purchase decision is not complex, the purchase is considered to be less significant to the achievement of its objectives, many suppliers are available and the supply market is stable. Here the business marketer need not make any specialized investment in building relationships. For example the supply of office stationery and cleaning services may call for a transactional relationship. Value added exchanges focus on complete understanding of the present and future needs of the customer and meeting those needs better than the competitor by customizing the firm’s offerings to the needs of individual customers. For example Intel Corporation, a leading player in the semiconductor industry has understood the changing computer server needs of it corporate clients and has developed and introduced a new chip that lowers electricity consumption to a very great extent. This has drastically reduced the huge electricity bills of its customers like Google Corporation that maintain thousands of servers world wide (Edwards, 2006) Collaborative Exchanges focus on building a strong social, economic, service and technical ties over a long period of time for mutual benefit through reduced costs and increased value. Such exchanges are very crucial when the market is very dynamic, the complexity of purchase is very high and the product/service being purchased is very crucial for the performance of the end product of the buying organization. In such situations the switching costs involved in changing a supplier are also very high for the buying organization. For example Asin is the sole supplier to the Japanese car manufacturing major Toyota Motors for â€Å"p-valve†, a critical brake part used in all Toyota vehicles worldwide. Aisin works in very close collaboration with Toyota Motors and is highly involved in the product development process at Toyota Motors to keep pace with the innovations being made in the Toyota vehicles and meet the JIT production requirements of Toyota (Liker, 2004). Business Marketers have some flexibility in deciding where to participate along the relationship continuum. It basically depends on the characteristics of the market, the type and price of product/service being offered and the significance of product/service being offered to the buying organization. However rival companies are continuously working towards taking away the best accounts and so also the requirements, expectations and the preferences of the individual customers keeps changing continuously. To meet these challenges business marketers must develop mutually beneficial relationships with individual customers by developing a deep understanding of their needs. Information should be openly shared to benefit both the buyer and the seller. The systems, procedures, and routines of the buyer and seller should be connected to facilitate operations. There should be very good cooperation between the buyer and seller and both should treat the buying situations as joint responsibilities. Both the buyer and seller should invest in processes and procedures that are necessary to meet the specific needs of the exchange partners. Such mutually beneficial relationships between the buyer and the seller will result in better service to the business customer as the seller will be able to provide customized product/service solutions that precisely meet the individual customer needs. Conclusion Business to business markets are growing in volume as compared to consumer markets. The characteristics of the Business to business markets call for closer buyer seller relationships. Companies operating in the Business to business markets should clearly study the organizational buyer behavior with respect to the product or service they offer. They should decide on the type of relationship, ranging from transactional exchange to collaborative exchange, which they should adopt with each customer to gain competitive advantage in the intensively competitive business environment.

Fulfilment of Obligations for a Contract

Fulfilment of Obligations for a Contract Jack’s purchase of â€Å"the machine† from Jim of Agricultural Supplies Ltd is one for a specific purpose. The contract with ASDA will no doubt reap substantial reward. The machine is a fundamental part of that agreement, as Jack cannot fulfill his obligations without it. The importance of the machine being able to produce vegetables that comply with the terms of the contract with ASDA was brought to the attention of Jim at the time the contract was entered into. The question of whether Jack can recover anything beyond the price of the machine after it fails to deliver will initially depend upon the interpretation of the exclusion clause. The contract specifically excludes liability for any consequential loss whatsoever. This would include the loss of profit to be suffered by Jack as a result of ASDA summarily terminating their agreement. Such terms are however subject to the Unfair Contract Terms Act 1977, and more specifically s. 3[1], and the test of reasonableness contained within s. 11. There is a standard requirement that the term is â€Å"fair and reasonable[2]† but what amounts to this will be a question of fact in each case. Not only will it look at the extent of what the clause is attempting to exclude, but also the bargaining position of the parties. As both are essentially acting â€Å"in the course of a business† there is a suggestion that there is an equal footing and the greater the equality, the more likely that an exclusion clause will be considered reasonable[3]. What is fair to infer from the facts of this case, is that Jack is not an experienced businessman with an understanding as to the operation of a clause that would exclude liability. He may well have noticed its presence, but requires firm clarification as to what he can actually recover in the event of a breach. It is Jim’s response that leads to the exclusion clause probably becoming unenforceable. The clause is attempting to limit the liability of Agricultural Supplies Ltd but Jim, a company Director contradicts this position and assures Jack that any consequential losses will be covered in the event of a breach. S 11(1) UCTA 1977 states that the term may be considered reasonable having regard to the circumstances known to, or in the contemplation of the parties when the contract was made. It would be harsh in this case to deny Jack the ability to rely upon Jim’s assurances. Certainly there is a strong argument that Jim’s statement will become a term of the con tract, overriding the earlier exclusion clause. It was the parties’ true intention and to allow the exclusion clause to stand would not only be unreasonable, but an inaccurate reflection of that intention[4]. Assuming therefore that the exclusion clause itself does not prevent a claim in principle for losses beyond the defective machine, we can consider the issue of lost profit arising from the agreement with ASDA. It has traditionally been the accepted practice of assessment of damages in the area of contract, that lost profit following a breach are subject to tests of causation and mitigation. While the general rule in contract law is to put the claimant in the same position as if those terms had been fulfilled[5], it is still necessary for the Court to assess such damages in monetary terms. In Jack’s situation he has an expectation interest which is defined as â€Å"the benefit [the claimant] expected to receive from the completion of the promised performance of the other party’s obligation, but which were in the event prevented by the breach of contract committed by [the defendant][6]†. The difficulty here is that while there is a definable loss i.e. the profit from the contract with ASDA, there is no knowing how long that contract would continue for or how much Jack would receive per annum. Where significant loss has been sustained, the Courts will look to the availabl e evidence to assess quantum[7]. But whether this alone would suffice is debatable. The difficulty is causation; to what extent was this breach of contract the effective or dominant cause of the loss[8]? The case of Headley v. Baxendale (1854)[9] laid down the rule regarding recovery of losses that were allegedly too remote. In modern terms it is stated to be: â€Å"A type or kind of loss is not too remote a consequence of a breach of contract is, at the time of contracting (and on the assumption that the parties actually foresaw the breach in question) it was within their reasonable contemplation as a not unlikely result of that breach[10]†. It would certainly appear therefore that such contemplation was well within the mind of both Jack and Jim at the time of entering into the contract. Indeed, Jack showed Jim a copy of the agreement with ASDA and his statement that Agricultural Supplies Ltd would â€Å"see to it that Jack is compensated for any loss he incurs† certainly seems to suggest an acceptance of the types of loss i.e. future profit, which Jack would now seek to recover. The recent judgment of the House of Lords in Transfield Shipping Inc v. Mercator Shipping Inc (The Achilleas) (2008)[11] has however thrown such assumptions wide open. This case concerned the hire of a ship for a certain period. The defendant failed to return the ship on time and as a result, the claimant lost a contract with a third party. While the defendant accepted that â€Å"in the trade† compensation would have to be paid, the disputed that they were liable for the loss of profit under the second contract. The arbitrators at first instance and the Court of Appeal[12] found for the claimant. The House of Lords however reversed that decision finding for the defendant. The issue of â€Å"assumption of responsibility† was at the forefront of the Lords’ considerations in this matter. While the defendant’s accepted that some losses would be sustained for which they may be liable, the Court felt that the particular kind of loss was not reasonably contemplated. As Lord Hope of Craighead stated[13]; â€Å"a party cannot be expected to assume responsibility for something that he cannot control and, because he does not know anything about it, cannot quantify. It is not enough for him to know in general and on open-ended terms that there is likely to be a follow-on [contract]† What has been established by the case is a second limb to the test in Headley v. Baxendale. A claimant will not necessarily recover losses that were not unlikely to occur in the usual course of things, if the defendant cannot reasonably be regarded as having assumed responsibility for losses of the particular kind suffered[14]. No longer can it be said that such losses were likely, probable or foreseeable alone, the particular type of loss must have been contemplated by the defendant and he nevertheless accepted the risk in the event of a breach. While this issue of a certain type of loss is not a new phenomenon[15], the combination with the test in Headley v. Baxendale has redressed the scope of recovery in contract cases and particularly the issue of remoteness of damage. Baroness Hale[16] has referred to this extension as â€Å"adding a novel dimension to the way in which the question of remoteness of damage in contract is to be answered†. What this case has done is establi sh a negligence type assessment for causation in contract. While the issue of remoteness, and whether the kind of loss was â€Å"not unlikely† to occur remains a question of fact, the issue of whether it was reasonable to assume the defendant accepted responsibility for that particular type of risk is a question in law[17]. Whether this will assist Jack is not clear. It has been suggested that the effect of The Achilleas upon Sale of Goods Act 1979 claims (as is Jack’s) may have relevance. S. 52(2) of the SGA 1979 states that; â€Å"The measure of damages is the estimated loss directly and naturally resulting, in the ordinary course of events, from the seller’s breach of contract†. If such loss of profit from the agreement with ASDA is to be â€Å"not unlikely† to occur, then Jack may have to establish that Jim assumed responsibility for that particular type of loss. In Chitty on Contracts[18] it is submitted that the House of Lords see their decision as a separate rule when applicable to sale of goods contracts. It should be noted that the facts of The Achilleas related to shipping contracts and the House noted that lack of case law considering this specific issue. While not limited to this area of law, the decision as opposed to other areas i.e. sale of goods, needs to be watched with trepidation. Ultimately there are reasonable prospects for Jack to secure damages beyond the cost of the machine. It can certainly be argued that Jim accepted the risk of the particular type when he was referred to the contract with ASDA. The loss of profit resulting from the termination of that agreement is not the only possible pecuniary disadvantage Jack could suffer i.e. damages claimed by ASDA, returned goods through poor quality etc. This coupled with the uncertainty as to the duration and net value of the contract makes quantum an almost impossible task. It should be noted that such losses have been recovered in Victoria Laundry (Windsor) v. Newman Industries (1949)[19], and more specifically for lost profit arising out of defective equipment under a contract of sale in H Parsons (Livestock) Ltd v. Uttley Ingham Co Ltd (1978)[20]. However the particular circumstances of Jack’s contract are quite unique, and the possible extension of the remoteness rule will not appear to be a help. BIBLIOGRAPHY Chitty on Contracts; Thirteenth Edition 2008, Sweet Maxwell Publishing Peel, E.; â€Å"Remoteness Revisited†, L.Q.R. 2009, 125(Jan), 6-12 Poole, J.; â€Å"Casebook on Contract Law†, Ninth Edition 2008, Oxford University Press McKendrick, E.; â€Å"Contract Law: Text Cases and Materials† Third Edition 2008, Oxford University Press Tamblyn, N; â€Å"Damages Under String Contracts for Sale of Goods†, J.B.L. 2009, 1, 1-14 Rose, F.; â€Å"Blackstone’s Statutes on Contract, Tort Restitution 2008-2009†, Nineteenth Edition 2008, Blackstone Press www.westlaw.co.uk – as accessed on 22nd December 2008 1 Footnotes [1] UCTA 1977 s. 3(1) â€Å"This section applies as between contracting parties where one of them deals†¦on the other’s written standard terms of business†; Chester Grosvenor Hotel Co Ltd v. Alfred McApline Management Ltd [1991] 56 Build LR 115 [2] UCTA 1977 s. 11(1) [3] Watford Electronics Ltd v. Sanderson CFL Ltd [2001] All ER (D) 290 CA [4] This section can be expanded upon to include additional cases on exclusion clauses in any text book. There is also an argument for rectification by mistake i.e. Joscelyne v. Nissen [1970] 2 QB 86 (CA) [5] Golden Strait Corp v. Nippon Yusen Kubishika Kaisha [2007] UKHL 12 [6] Chitty on Contracts: Thirteenth Edition, Volume I, at para 26-002 [7] Tai Hing Cotton Mill Ltd v. Kamsing Knitting Factory [1979] A.C. 91, 106. [8] Ibid fn 6 at para 26-032 [9] [1854] 9 Ex. 341 [10] Ibid fn 6 at para 26-054; see also Koufos v. C. Czarnikow Ltd (The Heron II) [1969] 1 A.C. 350 [11] [2008] UKHL 48 [12] [2007] Lloyd’s Rep 555 [13] Ibid fn 11 at para 36 [14] Ibid fn 6 at para 26-100A [15] Victoria Laundry (Windsor) v. Newman Industries [1949] 2 K.B. 528 [16] Ibid fn 11 at para 93 [17] Ibid at para 22 per Lord Hoffman [18] Ibid fn 6 at para 26-100G [19] Ibid fn 15 [20] [1978] Q.B. 791

The Potential Users Of Financial Accounting Information Accounting Essay

The Potential Users Of Financial Accounting Information Accounting Essay The users are an important component in accounting systems, and play a key role in usefulness of financial accounting information. Financial accounting is a term usually applied to external reporting by providing information about the financial position of a business to a wide range of users in making economic decisions (Weetman, 2011). The purpose of this paper is to review the relationships between the potential users and actual users of financial accounting information and the relevancy evidence to current practice. A variety of different arguments have been put forward about this issue. The paper has been divided into five parts. It first gives a brief overview of who the potential users of financial accounting information are. Secondly, it deals with the actual users of the information. It then goes on to how useful of financial accounting information is and looks at how strong is the evidence that they use information in the ways predicted. Finally, the reason why the potential users may not be actual users of financial accounting information is carried out. The potential users of financial accounting information Financial accounting aims to allow users to understand the economic activity of the company (Stolowy, et al., 2010). For a limited liability company financial statements would contain balance sheet, profit and loss account, statement of recognized gains and losses and cash flow statement (Weetman, 2011). Without users, financial accounting information will lost its role. According to FASB (2010), the objective of financial reporting is to provide useful financial information for existing and potential users to make economic decisions. There are several users who are interested in financial accounting information. Atrill and Mclaney (2008) stated that the purpose of financial information to be used and the person financial information to be given must be clear. By definition and different needs from each other, it could define as internal users such as managers and external users which include owners, lenders, government, employees, competitors, customers, community, and suppliers (IA SC, 1989). General purpose financial statements expected accounting information which would be of interest to a wide range of user groups (FASB, 2010), see appendix 1. Therefore, everyone could be the potential users of financial accounting information as long as there is a need for the information. Actual users of the financial accounting information From the internal management view, it has been argued that the main users of accounting information about an organization could be those who manage the company every day, such as managers (Weetman, 2011). A Statement of Basic Accounting Theory (ASOBAT) did not declare any particular user group such as investors to be primary users. Instead, it has been asserted that useful information was required for both internal and external purpose. Classified users of accounting information into two broad groups: external users which include present and potential investors, creditors, employees, stock exchanges, governmental units and customers on contrast with internal management. However, According to FASB (2010), the primary users of financial accounting information refer to existing and potential investors, lenders, and other creditors. They need entities reporting information provided indirectly. As actual users are contained in the potential users, see appendix 2, if they have same interes ts in the financial accounting information, the actual users might include managers, lenders, suppliers, customers, competitors, employees, government and community (Britton and Waterston, 2006). Similar conclusion has been argued by Atrill and McLaney (2008), Perks (2007) and Weetman (2011). The usefulness of financial accounting information Most of users treat the financial statements as the main source of financial information. According to IASB (1989), it assumes that if financial statements meet the needs of investors, it will also meet the needs of most other users (Weetman, 2011). The usefulness of accounting information is under premise of its high qualitative characteristics. There are four main qualitative characteristics which are described as relevance, reliability, comparability and understandability. However, only if the information actually makes a change in users decisions could define it as relevance Framework (1989). Also accounting information should be material and the benefits of providing the information should outweigh the costs (Atrill and Mclaney, 2008). The purpose of financial statements is not meant to meet all the users needs (FASB, 2010). It is possible to prepare the financial statements for general purpose which will have some interests for all users. For instance, as investors provide risk capital to the company, the provision of financial statements meets both investors and other users who are interested in estimating risks (Stolowy, et al., 2010). These financial reports are valuable for users who have no bargaining power and no significant economic influence in organizations (Elliott and Elliott, 2009). It has been asserted that general purpose financial statements tend to focus on the primary users which included the owners, long-term lenders and creditors. The interests of primary users might overlap with the interests of other user groups. Therefore, this could satisfy most users needs for financial accounting information (Weetman, 2011). The financial statements, which treat owners, lenders and creditors as primary use rs, could provide useful financial accounting information for the existence of users. use information in the ways predicted The financial accounting information could help users to make decisions and reduce uncertainty over the financial position and performance of the business. For example, to help availability of funds to pay owners a return, to repay loans, to reward employees (Atrill and Mclaney, 2008). It has been claimed that accounting information cannot meets all of the needs of each of the various user groups (FASB, 2010). Atrill and Mclaney (2008) stated that Different groups of users have different value and needs. However, user groups desire to know more accounting information as possible. Conflict between user groups is likely happen during business processing. For instance, managers they have close involvement with the business, they have access to a wide range of information and most might be confidential in company (Weetman, 2011). They know more internal information about the current and future situation of the company than outside investors. This could be defined as information asymmetry (Scott, 2009). Investor might make wrong decision based on inaccurate information provided by managers, so they want to know more information besides the financial statements. It is further contended that there are several user groups they want to meet specific needs directly from the business, such as governments, HM Revenue and Customs, and managers and directors. Lenders are usually given much more information than is included in published financial statements, including forecast information, monthly breakdowns and cash budgets (Perks, 2007). To have everything to be included in a companys financial statements is unrealistic (Perks, 2007). Financial accounting information is presented as the form of highly summarized financial statements. The main problem with the financial information needs of the user groups are that most want to know predict the future. Shareholders, creditors, lenders and employees all want to know what the companys future prospects are. But most of information in financial statements has already happened (Stice and Stice, 2006). Many users concerned how valuable the past information was and the reliability of business future forecast. Therefore, it is not possible for a company to publish exactly the information that everyone wants. The information is designed on the behalf of focus on shareholders and creditors (Perks, 2007) There is no similar substitute for the information provided by the financial statements. Thus, if users cannot gather the required information form the financial statements. It is often unavailable to them. Other sources of information concerning the financial health of a business are normally much less useful. As a result, the evidence is not strong enough for the user groups to use information in the way predicated and it is normally very difficult to assess the impact of accounting on decision-making (Atrill and Mclaney, 2008) potential users may not be actual users of financial information As Young (2006) claimed some of the actual users were multiple, conflicting, inconsistent, and uneducated. These users are unreliable and limited knowledge about financial accounting information and its process. FASB (2010) have conducted a new concept of the financial statement user-a rational economic decision-maker. It means that the decisions of interest are rational, if statements can be connected to the forecast of future cash flows, it could be said rational decision makers need it. Users can be seen more as hypothetical readers of financial statements than as actual users, because they need particular types of information (Young, 2006). Moreover, the conflicting needs of users and limited information provided in reports might cause potential users cannot find information useful to them (Atrill and McLaney, 2008). Therefore, the potential users might not be the actual users of financial accounting information, a portion of potential users could be. Conclusion In conclusion, the current paper has reviewed the users of financial accounting information. The question posed at the outset of this paper was to examine the reasons why the potential users may not be actual users of financial accounting information and relevancy evidence to practice. It has been seen that different users have different needs, even financial statements focus on primary users to provide useful information. However, it could not achieve the expected level and cannot meet all users needs. It may therefore be concluded from the above discussion that the actual users are a portion of potential users. Potential users might not be actual users of financial accounting information. Appendix 1 The relationship between potential users and actual users: Potential users Actual users Primary users Appendix 2 Users and their information needs (FASB,2010) Investors. The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of the entity to pay dividends. Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the entity to provide remuneration, retirement benefits and employment opportunities. Lenders. Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them, will be paid when due. Suppliers and other trade creditors. Suppliers and other creditors are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade creditors are likely to be interested in an entity over a shorter period than lenders unless they are dependent upon the continuation of the entity as a major customer. Customers. Customers have an interest in information about the continuance of an entity, especially when they have a long-term involvement with, or are dependent on, the entity. Governments and their agencies. Governments and their agencies are interested in the allocation of resources and, therefore, the activities of entities. They also require information in order to regulate the activities of entities, determine taxation policies and as the basis for national income and similar statistics. Public. Entities affect members of the public in a variety of ways. For example, entities may make a substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the entity and the range of its activities.

Concussions †Managing the Risk Essay examples -- Essays Papers

Concussions – Managing the Risk Imagine that one day you woke up and could no longer do the simple things you enjoy in life. What if you couldn’t even read the paper or watch a movie with a loved one? Many current and former athletes are suffering through this every day, and the reason for this is long-term brain damage which is a direct result of concussions. Unfortunately concussions have been rising at an alarming rate. This trend has not only been occurring in big money professional sports, but also in amateur sports like youth soccer. Concussions are quickly becoming an epidemic across the entire sporting world. Each year about 300 000 amateur and professional athletes suffer head injuries (Mcphee 1). Athletics must make some significant changes to deal with this ongoing crisis. First of all, more research must be done on concussions and athletes must be more informed about the risks they are taking. Secondly, the athletic community must look at the role of technology in sports and decide how i t should be applied to help improve this situation. Finally, the governing bodies of sport must implement rule changes to protect athletes from unnecessary risks during competition. Until these issues are addressed, this alarming trend of long-term brain injury will continue throughout the sporting world. A concussion is most often defined as a trauma induced alteration in mental status that may or may not involve loss of consciousness (Leclerc 2). Concussions can be sorted into three grades. The least serious is a grade one or mild concussion; this type of concussion occurs when there is no loss of consciousness and the posttraumatic amnesia is less than thirty minutes. The second grade of concussion is a grade two... ...?† Chronicle of Higher Education. Vol. 48.12, p.17. 16 November 2001. Academic Search Premier. EBSCOhost. Moore, Anne. â€Å"Riddell tackling school market; Helmet design aims to lessen concussions. Crain’s Chicago Business. 5 August 2002. Gen’l Reference Ctr Gold. Infotrac. Potter, Douglass. â€Å"Effects of closed head injury on cognitive function.† University of Dundee Research Projects. 28 February 2003. . Roos, Robert. â€Å"Guidelines for Managing Concussion in Sports: A Persistent Headache.† The Physician and Sports Medicine. Date of visit unknown. . Schnirring, Lisa. â€Å"How Effective is Computerized Concussion Management?† Physician and Sportsmedicine. Vol. 29.8, p. 11. August 2001. Academic Search Premier. EBSCOhost.

Oedipus and Tiresias :: Essays Papers

Oedipus and Tiresias Oedipus and Tiresias, characters of Sophocles' play "Oedipus Tyrannus," are propelled to their individual destinies by their peculiar relationships with truth. Paranoid and quick to anger Oedipus, is markedly different from the confident and self-assured Tiresias. In the dialogue between the two men, Oedipus rapidly progresses from praise of Tiresias as a champion and protector of Thebes in line 304, to blatantly accusing the blind prophet of betraying the city in line 331, to angrily insulting him in line 334. Rather than be intimidated by the protagonist's title and temperament, Tiresias draws strength from what he knows is true and is able to stand his ground. In this play, power and strength come from the knowledge of truth. Ironically, blind Tiresias, who has the ability to see the truth, becomes enslaved to his own knowledge. Knowing the truth about Oedipus enlists him in the designs of fate as the catalyst of Oedipus' destructive revelation. The prophet takes strength in knowing what he knows is true but, as he says in line 316, he is not able to profit from the knowledge. Forced into dispute with the king of Thebes, by playing off of the anxieties of the main character, the simple power of knowing what another does not know protects Tiresias. Gradually Tiresias' and Oedipus' relationships with the truth are revealed as that of knowledge and ignorance, respectively. The anxieties that plague Oedipus, making him weak and prone to paranoia, are rooted in the obscurity of his origins. In response to accusations made by Oedipus, Tiresias declares that he is neither a conspirator in a scheme concocted by Oedipus' paranoid mind, nor his supplicant. Rather, Tiresias states that he is a slave of Loxias: the ambiguous one. In whatever manner the mechanics of Tiresias' prophetic sight function, to understand the nature of truth, they must include deciphering the ambiguous. As a true slave of Loxias, he is incapable of directly telling Oedipus the truth but always speaks enigmatically. An extreme annoyance to Oedipus, such seemingly vague speech may be the only way that the truth may be expressed. Tiresias is thus fluent in the language of truth and is speaking to Oedipus, who claims to excel in deciphering riddles, in the clearest manner. Tiresias knows who Oedipus' parents are, and he knows that the revelation of Oedipus' genealogy will cause the foundations of Oedipus' identity to crumble, simultaneously destroying one man and causing another man to come into being.