...takeover at the moment. As it is seen on its financial statements, Ashar corporation has been a very healthy corporation during the past few years. We can see that they have a really stable Income Statement, with high figures regarding their revenues, EBIT, Net Income. Even though, there is a decrease of the figures from 2004 to 2005, if we check in the Balance Sheet, it can be justified by the acquisition of fixed assets and long-term debt and equity. This can be a worrying figure since the company has already long-term debt, but if we look out of the box, we should know that steel companies, in order to grow and maximize their profit, they need to acquire a lot of fixed costs, which will be the base for their operations. It can be a bit risky because if the value of the steel goes down, then the debt to asset ratio will increase. Although all these possible outcomes, and looking forward in the future of the steel industry, it is not really probable that the price of the steel will substantially go down, due to the trend that has been following up in the last years. We also know that Ashar Corporation is a really diversified company, so we trust that this diversification gives us a substantial support in case any division of the company goes wrong. I think that if Ashar Corporation ends up acquiring Zellmont, it will certainly gain a lot of...
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...work, even though theses works are highly risky for their health. When it’s the time to go to school, they have to work in industries, ship breaking yards, mills etc to meet their needs of food. According to the Labor Law of Bangladesh 2006, the minimum legal age for employment is 14. According to this law, children under 14 should not be employed as laborers, but the real situation of the country shows a different picture. It shows that child laborers face the problems like low wages, poor food and also perilous working environment (UNICEF). These problems affect both their physical and mental health, and in this way the rights of children in Bangladesh are being violated every day. For example, according to J.Hasan, about 2000 child laborers, whose ages are between 10 and 14, are working in Sitakunda ship breaking yard in a highly risky environment. The working place is full of broken glass, steel spikes and piles of metal scraps, and the children work there from morning to evening, even in bare feet and hands. Therefore, they are highly vulnerable for any accident in this ship breaking yard, but no one pays attention to this immoral fact. In short, though there is child labor act in Bangladesh, it exists only theoretically. Children rights are being violated by employing them for risky tasks. Owners of the industries and other employers are exploiting the child laborers by paying them a very low wage. To improve this situation, Government should take effective steps to...
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...probability distribution of the outcomes is known over one where the probabilities are unknown. This behavior was first introduced through the Ellsberg paradox (people prefer to bet on the outcome of an urn with 50 red and 50 blue balls to on one with 100 total balls but for which the number of blue or red balls is unknown). There are a number of choices involving uncertainty and normally they can be classified in two categories: risky and ambiguous events. Risky events have a certain probability distribution over outcome while ambiguous events have some uncertainty over said probability distribution. The reaction is behavioral and still being formalized. Ambiguity aversion can be used to explain incomplete contracts, volatility in stock markets, and selective abstention in elections (Ghirardato & Marinacci, 2001) The distinction between ambiguity aversion and risk aversion is important but subtle. Risk aversion comes from a situation where a probability can be assigned to each possible outcome of a situation and it is defined by the preference between a risky alternative and its expected value. Ambiguity aversion applies...
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...Life Arts Project High Risk: Teens and risky sexual behavior Jamileth Powell College of New Rochelle Fall 2013 Children at Risk Evelyn Philippe The present topic is to explore the depths of high risk teenagers and risky sexual behavior. My inspiration for this project comes from my cousin personal experience with becoming pregnant of an early age young age due to her promiscuous behavior. My topic relates to the course content in terms of children at risk throughout my life arts project work I will provide an overview of research pertaining to adolescent's decision making, early sexual activity, and other risky behaviors, as well as describing the roles of parent and school on what they need in assisting teens in avoiding life altering decisions. The method that I will use is "How open are you" questionnaire that will pertain to my peers of which many are parents on how open are they in talking to their teens about sexual activity as well, as literature review. In my oral presentation, I will present my findings. The term risky behavior is almost always used in a sexual sense, implying behaviors and actions that increase the chance of contracting or transmitting disease, and the increase the chance of the occurrence of unwanted pregnancy. In today's society, sexual activity has become more prevalent amongst teenagers. This social issue has been argued by many, of the contributing factors that would cause teens to engage in sexual behaviors. The factors that contribute...
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... * Situation 6.: Raising debt to finance a manufacturing plant for Solar-Electro. * Situation 11.: An intercompany loan to Solar-Electro from Welburn skews the financial statements. Likelihood of financial difficulties. * Situation 1.: Solar-Electro may not have the experience, knowledge, and regulations necessary to succeed in their industry. * Situation 5.; Auto-Electro comprises a significant portion of Pinnacle’s accounts receivable and have not recently made payments. * Situation 6.: Raising debt for construction may strain Solar-Electro’s cash flows, as well as Pinnacle’s. * Situation 9.: Pinnacle is required to keep its current ratio above 2.0, but it is only at 1.75 and has been declining over the last three years. * Situation 10.: Pinnacle has a dispute with the IRS. Management integrity. * Situation 7.: A Pinnacle vice president owns Todd-Machinery who provides services to Pinnacle. * Situation 8.: Increased turnover amongst higher-level auditing staff. * Situation 10.: Pinnacle’s dispute with the IRS. * Situation 11.: The intercompany loan to Solar-Electro from Welburn. Section B. Pinnacle’s acceptable audit risk is medium. The main reason for giving this audit risk a medium is because of the intercompany loan from Welburn to Solar-Electro. The Solar-Electro division of Pinnacle is what is risky, but Pinnacle has proven itself with the diesel engine, so the company as a whole does not show as being risky. Section...
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...The Benef i ts of Risky Play The term ‘risky play’ is often used but is still either not fully understood or put in to practice. So what does risky play actually mean? Play Wales (2008) states that play means ‘…providing opportunities for all children to encounter or create uncertainty, unpredictability, and potential hazards as part of their play. We do not mean putting children in danger of serious harm.’ ‘Good risks and hazards in play provision are those that engage and challenge children, and support their growth, learning and development. These might include… loose materials that give children the chance to create and destroy constructions using their skill, creativity and imagination. Bad risks and hazards are those that are difficult...
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...IT operation, security and management issues to an external service provider or vendor, outsourcing any portions of an organization's Information System has significant risks that can sometimes become detrimental to the outsourced organization. According to the Commission on Government Outsourcing, "when outsourcing an organization exposes itself to significant risks in terms of security, accuracy, and completeness of information (Holroyd City Council, 2008)". Comprised in the rest of this document is an exclusive examination of four different outsourcing activities and the associated risks that an organization needs to be aware of. Let me begin with the use of an external service provider for data storage for an organization. This situation is mostly attributed to midsized and few large business with less capital to develop and operate a databases of their own. They may neither have the finance to purchase and operate a database adequately nor the additional funding to hire a skilled IT team to manage a database in-house. In an attempt to effectively and securely manage their data at a lower and affordable budget, many of these organizations choose to outsource their data storage. Even though outsourcing of their database helps an organization to save on cost, there are many risk involve with outsourcing data to external service providers. Among the risks associated with outsourcing an organization's data is vulnerability of data. An organization's outsourced data faces...
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...Arguelles, Amanda Marie Co, Darlene Angelini R. Assignment 2 I. Given: U W e W Where α is a parameter (1a) To prove that more is preferred than less, we need to show that this individual’s preferences are nonsatiated. This can be shown by satisfying the condition, would show that for every one unit increase in wealth, satisfaction will increase as well. For this utility function, we will get: U (W ) 0 . This W U (e W ) 0 (e W )( ) 0 e W 0 W Because W > 0, we can then conclude that more is preferred to less consumption given the utility function. (1b) To prove that the consumer is risk averse we must show that this utility function has diminishing marginal utility wherein the condition that the marginal utility from an extra increase of utility decreases as your payoff increases. Hence, this would represent risk-aversion since the bigger the amount of money that is at stake, the higher satisfaction from winning is offset by an even higher dissatisfaction from losing. For this utility function we get: U 2 (e W ) 0 must be satisfied. This means 2W U 2 (e W ) U 2 (e W ) ( e W )( ) 2e W 0 0 2 2 W W Since the second order derivative of the function gives a negative value, we could say that the consumer is risk averse. (2a) There are two measures of risk aversion that was developed by Pratt and Arrow. The first measurement would be the absolute risk aversion coefficient/index. This measurement...
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...Religion as a Behavioral Regulator One of the biggest roles religion plays in American society is behavioral regulation. For years there has been a continual debate about whether religion is necessary for behavioral regulation since there are societal laws intact. However, what most fail to recognize is that a majority of the laws followed today are based on religious teachings (Nahid, 2017). Moreover, religion plays a large role in American society by adding an extra layer to behavioral regulation that laws have a hard time regulating or can not regulate at all. Risky Behaviors. An example of this added layer of protection comes into play when looking at risky behaviors such as alcohol and drug consumption, amongst others. When looking at...
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...a recent study using functional magnetic resonance imaging (fMRI), images taken of the brains of young men revealed major differences in what is called “white matter” between two separate groups of participants. The University of Turku in Finland under the direction of SINTEF claims young men that make quick decisions in risky situations have a highly developed neural network and are “smarter” than low risktakers. First each participant was given a personality test to assess the risk-taking propensity and susceptibility to peer influence. By doing this the researcher was able to separate the 17 right-handed, 18-19 year old males into two groups, high and low risk takers. The two groups reported to the Department of Radiology of the Turku University Hospital for two practice sessions. During the sessions they were shows a driving game with sets of 20 stop-light intersections. They learned how to play the game and then reported back for four testing sessions in an MRI scanner. The first two sessions were performed under a non-competition social setting and the last two sessions by surprise were under social pressure of a peer competition situation. Measurements were taken of the participants at each moment that decisionmaking took place wether to stop at the yellow light or try and make it through. Results showed that high risk-takers didn't hesitate for long before they made the decision. Low risk-takers found themselves hesitating and thinking about possible outcomes...
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...Case 2: Ethics To adjust or Not to Adjust: The case of BNB Credit Union ACCT 315-01 September 5 2013 Personal Ethical Code What do you consider to be right and wrong? I am a Buddhist. What I believe to be right is to follow five precepts of Buddha: abstaining from harming living beings, stealing, sexual misconduct, lying, and intoxication. In addition, I will follow rules and regulations made by specified society or countries or organizations. On the other hand, not following the conducts mentioning above will result in wrong doings for me. What is your priority in life? My priority in life is to stay alive with good health and to obtain a regular and sufficient income. My top priority is to make my family, as well as the people around me happy by providing love, support, financial security, care and protection. How far are you willing to go to make money? I do not have specific limits when it comes to money, but I need a sufficient income to afford a normal, comfortable life. Truthfully, I want as much money as I could get, but it must be from honest and legal business practice. Honestly, since my country, Myanmar, is a developing country, I would like to make enough to contribute to my society. How do you wish to treat others? I will treat people in a nice and friendly manner, even if they are not treating me nicely during our first meeting. However, the next time we meet, I will be careful with people who were not nice to me because they could possibly...
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...mortgage banks and repacked them to MBS. People like Mike Francis were link to the global of money. Mike Garner, an employee at Silver State Mortgage, the largest private mortgage bank in Nevada, bought the individual mortgages and bundled 200 or 300 of them together, and then sold them up the chain to Wall Street investment banks, to guys like Mike Francis. The pool of money demand for these bundled mortgages was increasing. Mike Garner’s bank had to lend to people who would not qualify for traditional loans. Many of these people had no income and no assets. Mike Garner’s bank lowered the standards to issue as many as mortgages. People didn’t have to show W-2 to get loan approval from Mike Garner’s bank. Mike Garner approved more and more risky loans as he and other employee were paid...
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...in theory and in practice, because risk management costs money but does it actually add more value to a corporation? This article explores the circumstances where the management of risk may lead to an increase in the value of a corporation. Risk, in this context, refers to the volatility of returns (both positive and negative) that can be quantified through statistical measures such as probabilities, standard deviations and correlations between different returns. Its management is about decisions made to change the volatility of returns a corporation is exposed to, for example changing a company’s exposure to floating interest rates by swapping them to fixed rates for a fee. Since business is about generating higher returns by undertaking risky projects, important management decisions revolve around which projects to undertake, how they should be financed and whether the volatility of a project’s returns (its risk) should be managed. The volatility of returns of a project should be managed if it results in increasing the value to a corporation. Given that the market value of a corporation is the net present value (NPV) of its future cash flows discounted by the return required by its investors, then higher market value can either be generated by increasing the future cash flows or by reducing investors’ required rate of return (or both). A risk management strategy that increases...
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...Introduction Managing portfolio and investing in stocks is very risky and could be tricky, as a result, financial experts and investors view it as necessary or smart to know what to expect when they invest. Due to this, different statistical models have emerged to attempt to scientifically measure the potential returns on an investment. The Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT) are two of such models. The purpose of this essay is to critically compare the Arbitrage Pricing Theory with the Capital Asset Pricing Model as used by fund managers in the United Kingdom. Captial Asset Pricing Model (CAPM) When Sharpe (1964) and Lintner (1965) proposed the Capital Asset Pricing Model (CAPM), it was seen as a leading tool in measuring if an investment will yield in positive or negative returns. It attempts to explain the relationship between investment risk and expected reward of risky securities (Ushad, 2011; Reilly and Brown, 2011; Heshmat, 2012). The CAPM helps to determine the required rate of return for any risky asset (Reilly and Brown, 2011). “The CAPM states that the expected return on a security or a portfolio equals the rate on a risk-free security plus a risk premium” (Heshmat, 2012: 504). It indicates that the expected return on an asset has a positive linear relationship with the non-diversifiable risk of the security (beta) (Heshmat, 2012). Ushad (2011) explains that the CAPM is based on the premise that higher returns should be...
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...One of these behaviors being getting the proper amount of exercise. Teens are encouraged to participate in 60 minutes of exercise every day. Doing so will decrease of chance of obesity and heart disease while increasing the likely hood of maintaining your mental, cardiovascular, and muscular health. It is also important for not only teens but for people in general to eat a well balanced diet. The perfect diet may vary from person to person depending on their situation, but in most cases a healthy diet is high in vitamins and minerals and will provide you with enough energy to for the day through proteins, carbohydrates, and fats (eaten in moderation). Eating a healthy diet will decrease the chances of obesity and will help increase your cardiovascular and digestive health. Another important factor that contributes to a healthy life style is getting the proper amount of sleep every night. Doing this will ensure that you are stable both mentally and emotionally. Participating in healthful behaviors may take a little extra effort, but in the end it is definitely worth...
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