Growth of Insurance Industry Post Liberalisation

GROWTH OF INSURANCE INDUSTRY – POST LIBERALIZATION INTRODUCTION : The journey of insurance liberalization process in India is now several years old. The first major milestone in this journey has been the passing of Insurance Regulatory and Development Authority Act, 1999. This along with amendments to the Insurance Act 1983, LIC and GIC Acts paves the way for the entry of private players and possibly the privatization of the hitherto public monopolies LIC and GIC. Opening up of insurance to private sector including foreign participation has resulted into various opportunities and challenges. CONCEPT OF INSURANCE : In our daily life, whenever there is uncertainly there is an involvement of risk. The instinct of security against such risk is one of the basic motivating forces for determining human attitudes. As a sequel to this quest for security, the concept of insurance must have been born. The urge to provide insurance or protection against the loss of life and property must have promoted people to make some sort of sacrifice willingly in order to achieve security through collective co-operation. In this sense, the story of insurance is probably as old as the story of mankind. LIFE INSURANCE : n particular provides protection to household against the risk of premature death of its income earning member. Life insurance in modern times also provides protection against other life related risks such as that of longevity (i. e. risk of outliving of source of income) and risk of disabled and sickness (health insurance). The products provide for longevity are pensions and annu ities (insurance against old age). Non-life insurance provides protection against accidents, property damage, theft and other liabilities. Non-life insurance contracts are typically shorter in duration as compared to life insurance contracts. The bundling together of risk coverage and saving is peculiar of life insurance. Life insurance provides both protection and investment. Insurance is a boon to business concerns. Insurance provides short range and long range relief. The short-term relief is aimed at protecting the insured from loss of property and life by distributing the loss amongst large number of persons through the medium of professional risk bearers such as insurers. It enables a businessman to face an unforeseen loss and, therefore, he need not worry about the possible loss. The long-range object being the economic and industrial growth of the country by making an investment of huge funds available with insurers in the organized industry and commerce. GENERAL INSURANCE : Prior to nationalizations of General insurance industry in 1973 the GIC Act was passed in the Parliament in 1971, but it came into effect in 1973. There was 107 General insurance companies including branches of foreign companies operating in the country upon nationalization, these companies were amalgamated and grouped into the following four subsidiaries of GIC such as National Insurance Co. Ltd. , Calcutta; The New India Assurance Co. Ltd. , Mumbai; The Oriental Insurance Co. Ltd. , New Delhi and United India Insurance Co. Ltd. , Chennai and Now delinked. General insurance business in India is broadly divided into fire, marine and miscellaneous GIC apart from directly handling Aviation and Reinsurance business administers the Comprehensive Crop Insurance Scheme, Personal Accident Insurance, Social Security Scheme etc. The GIC and its subsidiaries in keeping with the objective of nationalization to spread the message of insurance far and wide and to provide insurance protection to weaker section of the society are making efforts to design new covers and also to popularize other non-traditional business. LIBERALIZATION OF INSURANCE : The comprehensive regulation of insurance business in India was brought into effect with the enactment of the Insurance Act, 1983. It tried to create a strong and powerful supervision and regulatory authority in the Controller of Insurance with powers to direct, advise, investigate, register and liquidate insurance companies etc. However, consequent upon the nationalization of insurance business, most of the regulatory functions were taken away from the Controller of Insurance and vested in the insurers themselves. The Government of India in 1993 had set up a high powered committee by R. N. Malhotra, former Governor, Reserve Bank of India, to examine the structure of the insurance industry and recommend changes to ake it more efficient and competitive keeping in view the structural changes in other parts of the financial system on the country. Malhotra Committee's Recommendations The committee submitted its report in January 1994 recommending that private insurers be allowed to co-exist along with government companies like LIC and GIC companies. This recommendation had been prompted by several factors such as ne ed for greater deeper insurance coverage in the economy, and a much a greater scale of mobilization of funds from the economy, and a much a greater scale of mobilization of funds from the economy for infrastructural development. Liberalization of the insurance sector is at least partly driven by fiscal necessity of tapping the big reserve of savings in the economy. Committee's recommendations were as follows: †¢ Raising the capital base of LIC and GIC up to Rs. 200 crores, half retained by the government and rest sold to the public at large with suitable reservations for its employees. †¢ Private sector is granted to enter insurance industry with a minimum paid up capital of Rs. 100 crores. †¢ Foreign insurance be allowed to enter by floating an Indian company preferably a joint venture with Indian partners. Steps are initiated to set up a strong and effective insurance regulatory in the form of a statutory autonomous board on the lines of SEBI. †¢ Limited number of private companies to be allowed in the sector. But no firm is allowed in the sector. But no firm is allowed to operate in both lines of insurance (life or non-life). †¢ Tariff Advisory Committee (TAC) is delinked form GIC to function as a separate statuary body under necessary supervision by the insurance regulatory authority. †¢All insurance companies be treated on equal footing and governed by the provisions of insurance Act. No special dispensation is given to government companies. †¢Setting up of a strong and effective regulatory body with independent source for financing before allowing private companies into sector. COMPETITION TO GOVERNMENT SECTOR: Government companies have now to face competition to private sector insurance companies not only in issuing various range of insurance products but also in various aspects in terms of customer service, channels of distribution, effective techniques of selling the products etc. privatization of the insurance sector has opened the doors to innovations in the way business can be transacted. New age insurance companies are embarking on new concepts and more cost effective way of transacting business. The idea is clear to cater to the maximum business at the lest cost. And slowly with time, the age-old norm prevalent with government companies to expand by setting up branches seems getting lost. Among the techniques that seem to catching up fast as an alternative to cater to the rural and social sector insurance is hub and spoke arrangement. These along with the participants of NGOs and Self Help Group (SHGs) have done with most of the selling of the rural and social sector policies. The main challenges is from the commercial banks that have vast network of branches. In this regard, it is important to mention here that LIC has entered into an arrangement with Mangalore based Corporations Bank to leverage their infrastructure for mutual benefit with the insurance monolith acquiring a strategic stake 27 per cent, Corporation Bank has decided to abandon its plans of promoting a life insurance company. The bank will act as a corporate agent for LIC in future and receive commission on policies sold through its branches. LIC with its branch network of close to 2100 offices will allow Corporation Bank to set up extension centers. ATMs or branches with in its premises. Corporation Bank would in turn implement an effective Cash Flow Management System for LIC. IRDA Act, 1999 Preamble of IRDA Act 1999 reads ‘An Act to provide for the establishment of an authority to protect the interests of holders of insurance policies, to regulate, to promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. Section 14 of IRDA Act, lays the duties, powers and functions of the authority. The powers and functions of the authority. The powers and functions of the Authority shall include the following. †¢ Issue to the applicant a certificate of registration, to renew, modify withdraw, suspend or cancel such registration. †¢ To protect the interest of policy holders in all matters concerning nomination of policy, surrender value f policy, insurable interest, settlement of insurance claims, other terms and conditions of contract of insurance. †¢ Specifying requisite qualification and practical training for insurance intermediates and agents. Specifying code of conduct for surveyors and loss assessors. †¢ Promoting efficiency in the conduct of insurance business †¢ Promoting and regulating professional regulators connected with the insurance and reinsurance business. †¢ Specifying the form and manner in which books of accounts will be maintained and statement of accounts rendered by insurers and insurance intermediaries. †¢ Adjudication o f disputes between insurers and intermediates. †¢ Specifying the percentage of life insurance and general and general business to be undertaken by the insurers in rural or social sectors etc. Section 25 provides that Insurance Advisory Committee will be constituted and shall consist of not more than 25 members. Section 26 provides that Authority may in consultation with Insurance Advisory Committee make regulations consists with this Act and the rules made there under to carry the purpose of this Act. Section 29 seeks amendment in certain provisions of Insurance Act, 1938 in the manner as set out in First Schedule. The amendments to the Insurance Act are consequential in order to empower IRDA to effectively regulate, promote, and ensure orderly growth of the Insurance industry. Section 30 & 31seek to amend LIC Act 1956 and GIC Act 1972. IMPACT OF LIBERALIZATION While nationalized insurance companies have done a commendable job in extending volume of the business opening up of insurance sector to private players was a necessity in the context of liberalization of financial sector. If traditional infrastructural and semipublic goods industries such as banking, airlines, telecom, power etc. have significant private sector presence, continuing state monopoly in provision of insurance was indefensible and therefore, the privatization of insurance has been done as discussed earlier. Its impact has to be seen in the form of creating various opportunities and challenges. Opportunities 1. Privatization if Insurance was eliminated the monopolistic business of Life Insurance Corporation of India. It may help to cover the wide range of risk in general insurance and also in life insurance. It helps to introduce new range of products. 2. It would also result in better customer services and help improve the variety and price of insurance products. 3. The entry of new player would speed up the spread of both life and general insurance. It will increase the insurance penetration and measure of density. 4. Entry of private players will ensure the mobilization of funds that can be utilized for the purpose of infrastructure development. 5. Allowing of commercial banks into insurance business will help to mobilization of funds from the rural areas because of the availability of vast branches of the banks. 6. Most important not the least tremendous employment opportunities will be created in the field of insurance which is a burning problem of the presence day today issues. CURRENT SCENARIO : After opening up of insurance in private sector, various leading private companies including joint ventures have entered the fields of insurance both life and non-life business. Tata – AIG, Birla Sun life, HDFC standard life Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, Bajaj Auto Alliance, IFFCO Tokio General Insurance, INA Vysya Life Insurance, SBI Life Insurance, Dabur CJU Life Insurance and Max New York Life. SBI Life insurance has launched three products Sanjeevan, Sukhjeevan and Young Sanjeevan so far and it has already sold 320 policies under its plan. CONCLUSION : From the above discussion we can conclude that the entry of private players in insurance business is needful and justifiable in order to enhance the efficiency of operations, achieving greater density and insurance coverage in the country and for a greater mobilization of long term savings for long gestation infrastructure prefects. New players should not be treated as rivalries to government companies, but they can supplement in achieving the objective of growth of insurance business in india. THE GROWTH OF INSURANCE INDUSTRY – POST LIBERALIZATION Prepared by :ashish

When Are the 2015 AP Test Dates

When Are the 2015 AP Test Dates SAT / ACT Prep Online Guides and Tips If you took an AP test back in 2015, you might be wondering when exactly you took that exam. Or perhaps you just want to know how AP test dates change each year. Check out our table below to get the AP test dates for 2015, andread on for our exclusive tips and advice for prepping for AP tests- no matter what year you take the tests. 2015 AP Exam Dates The tables below show the 2015 schedule for AP Exams. Note that many of the most popular tests, such as Calculus AB/BC, English Language, Chemistry, and US History, were offered during the 8 am slot. (The two exceptions are Psychology and Statistics, which were offered in the afternoon.) Week 1 May 4 (Monday) May 5 (Tuesday) May 6 (Wednesday) May 7 (Thursday) May 8 (Friday) Morning (8 am) Chemistry Calculus AB English Literature and Composition Computer Science A German Language and Culture Environmental Science Calculus BC Spanish Language and Culture United States History Afternoon (12 pm) Psychology AP Seminar Japanese Language and Culture Art History European History Chinese Language and Culture Physics 1: Algebra-Based Physics 2: Algebra-Based Week 2 May 11 (Monday) May 12 (Tuesday) May 13 (Wednesday) May 14 (Thursday) May 15 (Friday) Morning (8 am) Biology United States Government and Politics English Language and Composition Comparative Government and Politics Human Geography Music Theory World History Microeconomics Afternoon (12 pm) Physics C: Mechanics French Language and Culture Statistics Italian Language and Culture Latin Spanish Literature and Culture Macroeconomics Afternoon (2 pm) Physics C: Electricity and Magnetism Source: Bulletin for AP Students and Parents, 2014-2015 How to Stay Focused During the AP Exam Period Looking at these tables (or, more specifically, the tables for your particular AP testing year) can be overwhelming. If you're taking more than one AP test, it can be tough to manage your time during May and feel prepared for each test. I’m used to stressful AP weeks. For my last three years of high school, I had multiple exams every May. Sophomore year I had three in a week, junior year I took two tests in two days, and senior year my tests stretched all the way from the first day of testing to the last day. So how do you cope? My biggest piece of advice is to memorize your AP test schedule now so you're mentally prepared for what May will be like. For example, if you realize you’re going to have three tests in three days, plan to get all of your studying done before April ends so you can focus on feeling rested and ready in the days before all those tests. For most people, May means flowers and good weather. For you, it’s stress and prep books. Or say you're taking AP Chemistry, which (hypothetically) falls on the first Monday, and AP Human Geography, which (also hypothetically) falls on the last Friday. In this case, you should plan to do some intensive Chemistry studying in April so you’re ready to roll by the first test day- though you'll want to also keep studying for Human Geography. You could use the first two weeks of May to wrap up your Geography studying since it will be the only test you have to focus on. In short, it all depends on your particular exam schedule.Consult our other AP exams guide to learn more about the next AP test dates. Preparing for the AP Tests in May: 6 Essential Tips Once you know what the AP test dates are for your testing year and when your particular tests will be administered, use these six tips to help you prepare effectively for AP exam period. #1: Plan Ahead and Use High-Quality Resources First and foremost, make sure that you've learned all the major concepts and taken at least one practice exam for each subject before May. This should eliminate any need for panicked, last-minute cramming between AP tests! But what's the best way to learn major concepts? Besides using notes and homework assignments from your AP class, it's a good idea to useofficial prep materials.This way, you can be sure that you're working with AP questions and practice tests that are extremely similar to the real deal. For practice questions, use your test's Course Description PDFand itsFree Response questions (available for free for each AP test on the AP Students website). You should also utilize anyofficial full-length tests you can find for free online. If you're OK with spending a little money, you can also get practice AP tests by buying official prep booksvia the College Board store (though I recommend buying through Amazon, which typically offers them and other prep books at much lower prices). Some of these prep books are complete guides, whereas others are actual previously released exams. #2: Use Your Time Wisely If you have one exam that you know is going to be the hardest for you, considerprioritizing any extra time you have in May toward that test. That said, make sure you put in the time starting now to really devote yourself to mastering the main concepts and getting practice in so you don’t feel super-stressed come May. #3: Time Yourself on Practice Tests When doing practice sections in April and/or May- either multiple choice or free response- make sure you are timing yourself strictly so you are prepared for actual AP test timing. The exact test time will be written on the practice test and on your test's page on the AP Students website. #4: Remember to Rest If you have multiple exams in a week or two days in a row (or two in a day!), limit heavy studying during that time and instead make sure you’re getting enough rest instead. First of all, you won’t be able to do much quality studying in an afternoon after an AP test if your brain is already fried from taking an actual exam. Even if you can get yourself to focus, it’s just as important the night before a test to get enough rest so you’ll have plenty of energy the next day. Besides, you should have completed all your major studying way earlier than the night before the test! Don’t let this be you the night before your AP test. #5: Be Self-Reflective If tests make you super-stressed and anxious and you study like crazy (that was me!), actively make time for some fun and relaxation during the AP testing period. After all, 30 minutes of exercise or a full night’s sleep will likely benefit you more the night before test day than will going over a concept for the 10th time. But if you're having a hard time staying focused and studying, especially near the end of the school year, work in some short daily studying,such as vocab review or multiple-choice practice. This will help you feel mentally prepared for the test, even if you’re burned out. #6: Think About the Big Picture Take some time to remind yourself of your goals. Whether that’s acing AP Calculus BC so you never have to take calculus in college, or getting top scores so you can be competitive for the Ivy League, keeping your goals in mind will help you stay motivated up until test day. It can be tough to keep your motivation up during May, but it’s important to keep in mind the long-term impact exams like these can have on your academic future. Remember, you’ve already put the time in by taking the AP class all year long and studying. Does the AP Schedule Stay the Same From Year to Year? The AP test schedule doesn't change all that much from year to year, so the most recent year’s test schedule will always be a decent predictor of future AP schedules, especially over the next year or two.But you can’t do long-term planning with it. The 2015 AP schedule above is already getting a bit old, so I don't advise using this to predict AP schedules in the coming years. Rather, it's best to refer to our guide on AP test dates, which we update with each new testing year. If you're curious about how much the AP schedule changes, check out the schedule from 2014 to see how it changed in 2015. All changes are highlighted in yellow: Week 1 (2014) Monday Tuesday Wednesday Thursday Friday Morning (8 am) Chemistry Computer Science A Calculus AB English Literature and Composition English Language and Composition Environmental Science Spanish Language and Culture Calculus BC Afternoon (12 pm) Psychology Art History Chinese Language and Culture Japanese Language and Culture Statistics Latin Studio Art Week 2 (2014) Monday Tuesday Wednesday Thursday Friday Morning (8 am) Biology United States Government and Politics German Language and Culture Macroeconomics Comparative Government and Politics Music Theory United States History World History Spanish Literature and Culture Afternoon (12 pm) Physics B French Language and Culture European History Italian Language and Culture Physics C: Mechanics Human Geography Microeconomics Afternoon (2 pm) Physics C: Electricity and Magnetism Note that Computer Science A, Spanish Language and Culture, Calculus AB/BC, and English Literature were still offered during the first week in the morning, but they shifted around between Tuesday to Thursday. Similarly, Art History, Chinese, and Japanese are still in the first week afternoon slot, but shifted between Tuesday to Thursday. The biggest moves were English Language, German, and Statistics. English Language moved to the second week, whereas German moved up to week one. Statistics, meanwhile, moved later to Wednesday in week two. Note that only three exams were substantially pushed around the schedule, which is why you could have used the 2014 schedule as a decent predictor for 2015. (As a brief note, Studio Art now uses a digital submission format, so it has been taken off the exam schedule.) However, if you go back five or 10 years, AP test dates begin to change more- and the exams themselves change. Some tests are added (such as the Physics exams) and some are taken away, such as French Literature and Studio Art. Therefore, if you’re trying to predict the AP test schedule years in advance, it'll be hard to be accurate. What’s Next? Want to know more about AP tests? Get the rundown of how long AP tests areso you can learn how to deal with time pressure on exam day. Also, learn when the upcoming AP test dates are so you can prepare ahead of time. Need help with studying for the SAT or ACT?Get started on your prep by settinga target SAT or ACT score that's perfect for your dream schools. Hoping to nab a perfect SAT or ACT score? Our guides toscoring a 1600 on the SAT and a 36 on the ACTteach you everything you need to know to be successful on test day. Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

The eNotes Blog Educator Professional Development Issues andOpportunities

Educator Professional Development Issues andOpportunities Last month the first Global Teacher Prize- $1,000,000- was awarded by the Varkey Foundation to an educator in Maine, Nancie Atwell. Described as the â€Å"Nobel Prize in teaching,† the award received a lot of publicity, and Atwell made the news when she won it. During an interview with CNN, she said that the current emphasis on standards and standardized testing is â€Å"a movement that’s turned teachers into technicians, not reflective practitioners. Considering that she has forty-plus years of teaching experience and has now been recognized essentially as the best teacher in the world, her assessment of the profession deserves attention. It also raises questions about current trends in professional development. If the teacher’s role has changed from practitioner to technician, then the focus of professional development has most likely changed, too.  The philosophy driving PD right now is evident in Professional Development in the United States: Trends and Challenges, the second phase of a three-part study by The Stanford Center for Opportunity Policy in Education.   In the preface to the report, the current focus of professional development is identified: to improve teacher quality to â€Å"bolster student achievement† and meet federal mandates. The characteristics of â€Å"high-quality† professional development are listed later in the report. Several of them are especially significant considering Nancie Atwell’s remarks about being a teacher vs. being a technician.  The overall structure of PD is now a top-down, one-size-fits-all model with a singular objective: raise test scores. The opposing view of professional development is radically different: it  argues  that teachers are professionals, unique individuals dedicated to self-assessment and personal growth as educators. Consequently, proponents of this philosophy contend that professional development should be generated from the bottom up, not imposed from the top down. Karen Webb, executive director of Fund For Teachers, a non-profit that awards teaching fellowships, explains this approach to PD in two short videos  (the QA video is great for morale!). So, those are the two current and conflicting philosophies regarding professional development. Regardless of which approach  is trending, it’s good to know that teachers, who are indeed professional people, can take charge of their own growth in the classroom. Here are some ideas for doing just that: Decide what you want to learn or to master to become a better teacher. Focus on a specific objective. Gather resources to use in accomplishing the objective. An internet search will provide many, and just about every web site designed for teachers has a Professional Development menu. Talk with colleagues and teachers who work in other schools. Talk with former teachers whom you admire and respect and who obviously knew what they were doing in a classroom. Take advantage of educational opportunities in your  community, especially if you live near a university. Many lectures and workshops are free. When you feel grounded in your objective, move on to the next one, but don’t hurry. Professional development is an ongoing process with never an end in sight. The very best teachers are dedicated lifelong learners. They know they’ll never know all there is to know about their discipline or about teaching kids, but they aren’t put off by it. They enjoy never being finished in the pursuit of excellence. Finally, check out the numerous organizations that provide professional development grants. And this brings me back to Fund For Teachers.  Active in 43 states, the non-profit has now awarded $22 million in grants to 6,000 teachers. Review the work of teachers who have pursued their own professional development here. Use the search engine and content filters to locate research projects most relevant to your own teaching. Also, go here  for links to other organizations that support professional development. Thinking about the current, contentious state of American education, I am reminded, oddly enough, of Winston Churchill. â€Å"You can always count on Americans to do the right thing,† he once said, â€Å"after they’ve tried everything else.† So maybe it’s in our character to try everything before settling on the right thing. Right now professional development seems to be focused on honing the skills of teacher-technicians. I suspect, however, that another kind of professional development is occurring every day as teachers work individually and together to grow stronger in providing kids with an education that surpasses a set of standards. It’s a happy thought. This is a guest post from Staff Writer, Susan Hurn. Susan is a former high school English teacher and college instructor. She loves writing for and also enjoys good books, creative writing, and all things related to history.   Let us know if youre interested in contributing to the   blog.

Five Tips to Promote Yourself as a Newbie Freelance Writer

Five Tips to Promote Yourself as a Newbie Freelance Writer It can get hard to get off the ground while starting your freelance writing business. This is especially true if you have quit your day job and youre yet to get your first assignment. The pressure can be extremely agonizing. All you need to do is leave your worries aside and get down to business. Here are five ways you can promote yourself as a freelance writer and get a regular stream of work: Create a Portfolio   A portfolio would help you to showcase your work to your clients with a quick link. The first step to create one is to get published on some of the existing blogs or magazines as a guest author. Once you have a bunch of published articles and client work, (including websites, and newsletter content, etc.) you can make use of portfolio sites like Contently and Clippings.me to put up your published clippings. I created my portfolio on Contently before I quit my full-time job to get into freelance writing. Throw up a Website A website is a great way to promote yourself as a freelance writer. You can create a site on a free platform like Tumblr or WordPress. You can create one to help fellow writers or choose a specific niche. As a writer specializing in the content marketing niche, I created this website:  http://prolificcontentmarketing.club. I try publishing at least once every month to help get more readers and visibility. Sign Up on Medium Medium is a haven for writers. Its a place to create a blog and start writing just about anything you like. Youll find a host of publications where you can submit your work and present your writing to bigger groups. You can interact with fellow writers in popular publications like The Creative Cafe, The Writing Cooperative, Curiosity Never Killed the Writer and many more. Youll also find publications like Better Humans that pay writers up to $500 for accepted submissions. The Medium partner program is another great avenue to get paid while you publish on this vibrant platform. Promote Yourself on LinkedIn LinkedIn is an excellent place for professional networking and publishing. The platform helps you to connect with potential clients display your work and grab new assignments. You can publish articles and post updates to get visibility among connections. I often use the search feature to look for people and content related to terms like hiring writers or hiring B2B writers. I have often used the professional network to pitch and win new clients through direct messages. Write a Book   Another way to showcase your work as a writer is to self-publish a book. There are a host of options to publish your book for less ($200-$300) and if you decide to publish online then its almost free. Your book would earn you a passive income and a favorable reputation. Most successful freelance writers have published books that either help fellow writers or a niche audience. Starting Your Career as a Freelance Writer, Get Started and Get Going It can feel like a daunting task to market yourself as a freelance writer. But the initial effort will surely reap long-term benefits in terms of regular and well-paying clients. Author

Legal Underpinnings of Business Law Research Paper - 1

Legal Underpinnings of Business Law - Research Paper Example The table below offers the liability of the others in different types of business entities for a breach of contract. However, if the terms of the agreement in the formation limit liability for an individual in case of a breach in contract, then it may mean all the parties will be held responsible regardless of the party who entered into a contract As a sole proprietor of Tinker’s Home Security Service, to avoid liability I will analyze the contract agreement closely and determine if in my breaching the contract, there was actual damages. If there is an actual breach that results in loss, then to limit my liability, I would seek for a mediator or any other alternative resolution method. This will avoid the cost of damages I would incur if I were found liable by a court of law. For Tinker & Tailor’s Home Security Service (general partnership), I would limit my liability by critically examining my position I played in contract negotiation. Since general partnership agreement binds all the parties regardless of the person who entered the business contract, it means my liability will be reduced since the whole enterprise will be held liable for my actions. I play innocence that I exercised all the prerogatives with pure intentions in mind. I would love to form a corporation since this is the best form a business (Cohen, 2005). The organizational form of the business will be that involving managers, employees and shareholders. As a shareholder, I will be in a position to reduce my liability since my role will be that of board meeting to deliberate of performance of the company. Similarly, I will not be responsible for losses incurred by the company, but only the managers will bear responsibility. For Tinker & Tailor’s Home Security Service (LP), I would reduce my liability by ensuring that always no general partner sign business contracts on behalf of the

Investment Appraisal Essay Example | Topics and Well Written Essays - 1500 words

Investment Appraisal - Essay Example Investment Appraisal The capital budgeting decisions are pertaining to investment decisions which will create assets which will in turn create products/ services which create the profits. Generally, current assets are not earning assets but they act as a buffer for the smooth operations of the business. But the long-term investment decisions includes the mission and visions of the company and hence is of strategic importance. There are various techniques available for the appraisal of investment proposals. They include the traditional methods, discounted cash flow methods. But recently there is a tendency to shift to value management models and modified versions of DCF models is reflected among companies. This essay explains the nature of each method of appraisal and also explains the recent trends to use the value management models with examples. For considering this proposal the management can use the investment appraisal techniques which can be segregated into two groups, first group comprising of traditional methods such as payback period method and average rate of return method and second group comprising of time adjusted methods/ discounted cash flow(DCF) methods such as net present value method, internal rate of return method, net terminal value method and profitability index method. The payback period method is the simplest of all methods and it answers the basic question, how many years will it take for the cash benefits to pay the original cost of investment. Cash benefits under this method represent CFAT ignoring interest payment. The payback period of the investment is compared with the payback period predetermined by the management beforehand. If the proposal has a payback period less than the predetermined payback, then the investment proposal is selected. The major advantage with this method is that it is very simple to understand and calculate. But the serious drawback here is that it ignores all the cash inflows after the payback period and it does not differentiate between the projects based on the timing and magnitude of cash flows. The next method is the Accounting rate of return (ARR) method. The ARR is calculated as (Average annual profits after taxes / Average investment) x 100. If the Average rate of return is higher than the predetermined minimum rate of return then the investment proposal is selected. The advantage of this method over the payback period method is that it takes into account entire cash flows over the life time of the project unlike the former. But the major drawback here is that it takes the accounting income for the analysis but not the cash flows. Like the payback period method also does not take into account the time value of money. When the time value of money is not taken into consideration when evaluating investment proposals the chances of choosing the wrong proposals are more. From the information provided Hence, the Time adjusted methods/ discounted cash flow (DCF) methods are widely used for making decisions in corporations. The Net present value method is described as the summation of the present values of cash proceeds (CFAT) in each year minus the summation of the present values of the net cash outflows in each year. The decision rule for this method is that when NPV> zero, accept the prpoposal and if NPV < zero, reject the proposal. The first and foremost advantage of this

Different Aspects of Ecotourism Case Study Example | Topics and Well Written Essays - 1000 words

Different Aspects of Ecotourism - Case Study Example Different languages are spoken. Municipalities also register an inevitable growth and they have to provide transportable roads lighting the roads, similarly and should be committed to provide amenities of international standard to ecotourism and also for its sustenance. Ecotourism is no more permitted, limited to a particular part of the world. It is exchanged in order to serve the public with the latest technology. The globe is no bigger. Ecotourism represents a single economy. Because of ecotourism there is conspicuous change with the social life industries. One shall meat and come across different rest of different nationals represent at one place. Different sets of different nationals represent diversified cultures, different languages are spoken at one and the same place, and at one and the same time. They come to know each other from a closer proximity. The intimacies develop; relationships pave way for greater understanding. The social pavilion of life is set to rolling. Broader outlook develop into more knowledgeable and understanding environment. There will be a great impact on the urban sociology patterns of life. The world becomes a small place respectively inevitable economical growth, a pleasant knowledge based environment. The world is no bigger, thoughts of seeing the world; the globe on a huge unknown has become so small so much can be felt immensely. T third world, joyous frivolous, sensible, knowledgeable, cultured by urban socialites will cherish. The development may fold big colonies. A lot of big industries and big companies will enter into the market to cater to the needs of the conglomeration. The development shall develop many folds. The economy of the country, government organizations and private sectors will make a rudimental change. Mainly the cities will develop into a small globe with multi faced development in industries and corporate. May be the chief architect of the ecotourism to take enormous pairs to create and design the super structure of the third world. Globalization has its own effects on every aspects of technology. Ecotourism has changed the way urban socialist use to link and express their thoughts. Of course wealth is also acting as a catalyst for the change in the thinking and living of the urban individuals. The new meaning of sociology is slowly changing, to be more precise it is altering the essence of socialist thinking. Considering ecotourism as a development, every development will have its own pros and cons. It has both positive and negative and results on all aspects of human life. The same citizens who use to think and analyze in a modest manner has changed their way of analysis and started comparing with the good and bad. The socialist thinking, which was confined to the small regions on earth, has now crossed the boundaries and reaching out to the world and sharing views they're by bringing like-minded people to think and work with unity. This development is mostly used negatively. For example tourism, this is an ideal example for the developmenet of the globalization. In the developed countries the pollution levels being very less and also due to maintaining the green belt the need for more greener pastures is very less demand and hence eco tourism and its sustenance is not of very high important to the people visiting the places