Wuthering Heights Heathcliff Personality Essay free essay sample

Personality Heathcliff is one of the main characters in the renowned novel, Wuthering Heights, by Emily Bronte. Heathcliff is such a memorable character due to his unique personality and how he approaches and engages conflicts in his life. Whether Heathcliff’s actions spark sympathy or lead to disappointment with his conduct, some characteristics of his personality do seem to stand out throughout the novel. Traits such as his unwillingness to forgive those for events in the past, his selfish nature, or even the deep emotion that emerges through this seemingly dark figure. In the novel Heathcliff is betrayed by those around him. He is forced to do servant duties by Hindley, who he lives with for many years. As if this is not degrading enough, he begins to lose the love of his life, Catherine, because Heathcliff can no longer provide her with the luxurious life to which she is accustomed. We will write a custom essay sample on Wuthering Heights Heathcliff Personality Essay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This betrayal probably is what caused him to develop his unforgiving nature, especially since it causes dramatic alterations to his lifestyle, cripples his chances for a successful future, and leaves him emotionally distraught. In chapter 7 of the novel Heathcliff says, â€Å"I’m trying to settle how I shall pay Hindley back. I don’t care how long I wait, if I can only do it at last. † This quote shows the grudge he holds against Hindley and his unwillingness to forgive him. Quotes like these can be plucked out from various chapters in the novel, but they all reveal the same thing about Heathcliff. No matter whether it has been a week or years, he seems to hold his grudges and be unable to forgive. Another trait that Heathcliff exhibits throughout the novel is his selfish side. I believe this side emerges hand in hand with his unforgiving nature. I think when his world is crashing down around him he decides that he is the only person he can trust and he developes a fear of building a bond that can be severed leading him to be selfish. This selfishness is also reflected in his love affairs as he yearns to be with Catherine once again, not for her own good but simply because he cannot live happily without her. This trait is reflected well when Heathcliff exclaims, â€Å"Catherine Earnshaw, may you not rest so long as I live on. † This quote shows that he could care less if Catherine is able to rest. Instead Heathcliff wants to assure that Catherine will not be freed from her internal conflict before Heathcliff is able to put to rest his own emotional battles. Although many of the traits that Heathcliff is guilty of possessing are on the negative side, he does show great love and emotion in some portions of the novel. This is the side of Heathcliff’s personality that can really make one feel sympathy for him, as it seems that his deep love probably contributes to his negative side. Heathcliff so desperately wants Catherine to return to him that he can hardly live through a day without his emotional tornado wrecking his relations with others. Heathcliff really shows that he wants nothing more than Catherine’s love when he confesses to her his feelings even while she is married. If he loved you with all the power of his soul for a whole lifetime he couldn’t love you as much as I do in a single day. † The fact that Heathcliff is completely unable to move on and get over his feelings for Catherine really display his emotional nature. Heathcliff is one of those characters that will only be fully understood by the person who created the character. For everyone else there will always be room for discussion and disagreements concerning the unforgiving, selfish, yet desperately e motional personality of Heathcliff.

Rosencrantz and Guildenstern

After reading Rosencrantz and Guildenstern are Dead by Tom Soppard, I thought that such a literary masterpiece of that same caliber could not be equaled. However, Samuel Beckett, author of Waiting for Godot has also created a stunning work about two lost men seeking a point to their existence, always looking to the nonexistent for enlightenment. This similarity is so striking that in several points during the story, Rosencrantz and Guildenstern merged with Estragon and Vladimir, so similar were the two characters in some respects. One of many things that made Estragon and Valdimir similar to Rosencrantz and Guildenstern is their inclination to play games with world. Rosencrantz and Guildenstern played the question game where they would ask each other nothing but questions. Ros: We could play at questions. In turn, Estragon and Vladimir also seek ways to distract themselves from the realities of life through word games. Estragon: Thats the idea, lets abuse each other. They turn, move apart, turn again and face each other. Vladimir: How time flies when one has fun! Another striking similarity between the two plays was the constant way in which the main characters questioned everything. These questions, in both cases, stemmed from the main characters amazing lack of memory. Guil: ...Whats the first thing you remember? Ros: Oh, lets see....The first thing that comes into my head, you mean? Guil: No-the first thing you remember. Ros: Ah. (pause) No, its no good, its gone. It was a long time ago. Guil: (Patient but edged) You dont get my meaning. What is the first thing after all the things youve forgotten? Ros: Oh I see. (Pause) Ive forgotten the question.

CW1 Rooms division systems Essay Example | Topics and Well Written Essays - 2250 words

CW1 Rooms division systems - Essay Example   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Deadline & schedule. The twenty rooms will be constructed between November 1 to 30 2006 in order to open to the coming December clients and seminar(Hardill, 33) participants. The planning which includes the design, specifications and contracts will be ready by the end of October 10, 2006.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Planning. The design, specifications(Croak, 51) and contracts will be ready by the end of   June in order to give time for the construction team to acquaint itself with the room construction technicalities.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Budget. Since only local room construction materials will be used, except the room door which will be imported from another country, and only expert construction crews will be hired, the cost of construction will be budget conscious. The budget will funded by   loans with the bank and investments from prospective shareholders in the stock market. The budget will easily be recovered within five years’ time based o n a well researched project feasibility study.   .  Ã‚   The hotel staff will hire an outside building contractor to renovate(Hands et al, 33)   all the rooms of the company. The company will save more money because there will lesser   raw materials wastes when skilled carpenters and their co –workers   work together because as the famous saying  Ã‚   goes, united we stand, divided we fall.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Segmentation. The clients will be concentrated on the couples, their family which includes their children and seminar participants. The entire room can easily be converted to a seminar room that has a capacity to seat around one hundred fifty persons.  Ã‚  Ã‚  Ã‚  Ã‚  

Book Report on Don't Fire Them, Fire Them Up by Frank Pacetta Essay

Book Report on Don't Fire Them, Fire Them Up by Frank Pacetta - Essay Example Although he mentions that an individual is an essential element in any organization, the role of the team or group is emphasized more in the book. This perspective eliminates possible jealousy and unhealthy competition within the organization, thus creating an atmosphere of teamwork and cooperation. Pacetta outlines principles that are doable in both non-military and military settings since the underlying principles of motivation and teamwork are essential in any successful organizational environment. LEADERSHIP IN MANAGEMENT 3 Leadership Principles in Management There are several principles on effective leadership that Frank Pacetta discusses in his book. According to â€Å"The One Minute Manager† author Kenneth Blanchard, leadership skills focused on people are significant for leaders who know that the work force is the primary resource of any organization (Nohria & Groysberg, 2008). In Pacetta’s (1994) book, he touches on the extraordinary potential of a well-directe d and highly motivated human spirit. Although some say that the book is more of a marketing and sales guide because Pacetta (1994) first applies his ideas on marketing and sales, the overall concept discussed in the book is applicable to any organizational setting, corporate or non-corporate. In the book, creating loyalty and developing trust is one of Pacetta’s (1994) important leadership principles. Loyalty and trust creates an atmosphere of teamwork and dependability. Additionally, he mentioned that establishing accountability and encouraging the process of giving constructive feedback is a vital part in an organization. The value of accountability pushes the concept of professional ethics, while feedback encourages working on possible areas of improvement that support continuous development. Generating passion and enthusiasm is also deemed essential. One must remember that a happy employee is a productive employee (Mrudula, 2006). Pacetta (1994) also mentions that a leade r’s ability to enliven, manage, and rebuild an organization is a necessary attitude that encourage employee trust to the organization’s management team. It reflects the internal strength of the organization, thereby promoting a sense of security among employees or members of the organization. To top it off, a leader’s capacity in pushing the organization to the top and maintaining its status at that level develops a sense of pride among every member of the organization. A leader is considered as the LEADERSHIP IN MANAGEMENT 4 one having command responsibility in every aspect of the organization, therefore making the position both challenging and crucial. Pacetta (1994) asserts that although there are normally 3 main reasons for organizational failures --- namely poor leadership, lack of enthusiasm, or skills deficiency --- poor leadership is almost always the main factor why organizations fail. The practicality of the leadership principles presented by Pacetta ( 1994) makes them applicable not only in corporate situations, but also in military settings. In order to realize success and continuous growth within any organizational set-up, there must be strong leadership skills and tactics, and flexibility in methods and processes building and

Marketing plan for Riverford Essay Example | Topics and Well Written Essays - 2500 words

Marketing plan for Riverford - Essay Example The measure has also downgraded the staff level into a manageable number with the delivery system maintained. Cost of the merchandize transacted The summation of the products sold to the clients within the next three years will be obtained from the sellers who have been tasked with keeping a record of the orders completed (Kotler, Keller, Brady, Goodman, and Hansen 2009, p16). Based on the past records, the records have suggested that Riverford affords to deliver to at least 600 homes within England on a daily basis. With the launch of the website service, the number is expected to rise to a minimum of 1000 deliveries daily. The transport cost per delivery is expected to cost 15% of the total delivery made, generating a profit of 23% of the total expenses used in production. The costs of internet services included in the profit ratings include $235 per month, which includes the e-mail service fee. Other Costs The number of trucks to be added in the new delivery routine is expected to be added in the field. The total cost per truck will hike by 10% within the next two years costing $500,000 per truck. The growth would be based on the ability of the company to employ new employees on the management field with four supervisors on the new branches to cost $2500 monthly. The demoted clients are to be compensated as they have helped generate the needed profit and will cost the company an additional $5000 annually for the next three years. The money used in rent for the new offices to be established to complement the existing blocks is estimated to be costing the financial departments a total of $4, 500/month. The other facilities needed would be new refrigerators to preserve some of the products and extra expenses on the packaging that would utilize the biodegradable packing bags to preserve the environment. There is the need to engage in other marketing ventures to sell the newly attained idea to present online marketing franchise (Baker & Hart 2007, p34). The marke ting ventures would include presenting the products on online magazines, covering magazine ads and utilizing community advertising spaces. The company wishes to extend the services to a market beyond the UK presentation hence the desire to collaborate with major restaurants like McDonalds. This would cost an added fee of $1500/month in employing skilful advertisers. The above mentioned criteria can be analyzed to present the vision to present the new service on the desired demographic. The leading groups to be served would be included in the family and company setting (Kotler, Keller, Brady, Goodman, and Hansen 2009, p41). Break even To achieve the desired goods for retention of the employees and deficit the expenditure, there is the need to produce monthly sales of $50, 000 to cater for the incurred costs. The assumption would be placed in the need to venture into new strategies of advertising and completing the sales. The company expects to realize elimination of the competition f rom small-scale businesses and adopt the system of product selection and delivery. Sales forecast The sales have picked up since the company started supplying fruits to the customers who appreciate a wider concentration of the products needed. There company also presents an establishment of the branches that not only specialize in the vegetables, but also witness participation in producing juice that sells the

Development of Credit Facilities in Sierra Leone

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

Nucor Case Analysis :: Finance Business Essays

Nucor Case Analysis Case summary: Nucor is the world’s largest recycler, recycling over 10 million tons of scrap steel annually. Nucor descended from auto manufacturer Ransom E. Olds, who founded Oldsmobile. The company evolved into the Nuclear Corporation of America, which was involved in the nuclear instrument and electronics business in the 50’s and early 60’s. Over the next five years, Valley Sheet Metal, Vulcraft Corporation and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering several money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management then decided to integrate backwards into steel making, and in 1972 they adopted the name Nucor. Since then Nucor has established itself as a leader in the steel industry through efficiency and innovation. It now employs more than 7,000 people worldwide and has experienced tremendous growth under its new CEO Daniel R. DiMicco. SWOT Analysis Strengths †¢ Low Cost Producer †¢ Employee/Manager ial Relations Leading Innovator †¢ Low Debt Load †¢ Overall industry leader Weaknesses Dependency on scrap metal Company Profile - Nucor Corporation is the largest steel producer in the United States and had net sales of $11.3 billion in 2004. -Nucor's origins are with auto manufacturer Ransom E. Olds, who founded Oldsmobile and then Reo Motor Cars. -The reorganization resulted in restructuring and eliminating money-losing businesses which left only the steel joist business called Vulcraft -Vulcraft operated in Florence, South Carolina and Norfolk, Nebraska -Management then decided to integrate backwards into steelmaking by building its first steel mill in Darlington, South Carolina in 1968 -In 1972 the company adopted the name Nucor Corporation -By 1985 Nucor was the seventh largest steel company Situational Analysis General External Environment ï  ¶Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Sociocultural - Nonunion workers got paid more than 85% of the states they worked in -Recycled more than 10 millions tons of scrap metal annually ï  ¶Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Technological -Began using a twin shell electric furnace to increase production and lower costs and increase market share -Developed and implemented strip casting overseas to eliminate a step in the steel making process ï  ¶Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Demographic -Economic slow down in early 90’s led to a decreased demand for steel -By 1995 the steel industry was the best it was for 20 years ï  ¶Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Economic -Import values decreased for all steel products from 1998 to 1999 -U.S. steel producers facing higher energy costs ï  ¶Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Global -Increasingly tough environmental rules -Cheaper imports for steel Industry Analysis – Nucor has established itself as a leader in the steel industry through efficiency and innovation. Industry Driving Forces of Change ïÆ' ¼Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Increased demand on a global scale due to increase in manufacturing across the world, opposite in U.

Bangladesh capital market

It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange operated by SEC. It also consists of a dedicated regulator, the Securltles and Exchange Commission (SEC), since, it implements rules and regulations, monitors their implications to operate and develop the capital market. It consists of Central Depository Bangladesh Limited (CDBL), the only Central Depository In Bangladesh that provides facilities for the settlement of transactions of dematerialized securities In CSE and DSE.Dhaka Stock Exchange was set up on 28th April, 1954 that started formal trading on early 1956. Post-independence government did not promote a capital market during the first five years, and it was activated again in 1976 with 9 issues on board. In 1995, a second bourse, the Chittagong Stock Exchange, was set up with sophisticated loglstlc support and modern management. Two stock exchanges exist in Bangladesh Dhaka stock Exchange (DSE) Chittagong Stock Exchange (CSE) One Investor must know about these markets before he/she goes for an Investment.To make this report more understandable and specific, we will only focus on Dhaka tock market. â€Å"The stock market is an important ingredient of the financial system in Bangladesh. It is an important avenue for channeling funds to investors through mobilizing resources from individuals. In view of the rapidly Increasing role of the stock market, volatility In stock prices can have significant Implications on the performance of the financial sector as well as the entire economy. There exists important link between stock market uncertainty and public confidence in the financial market.The policy makers usually rely on the market estimate of volatility as he barometer of the vulnerablllty of the stock market. Stock return volatility represents the variability of day-to-day stock price changes over a period of time, which is taken as a measure of risk by the relevant agents. High volatility, unaccompanied by any change in the real situation, may lead to a general erosion of Investors' confidence In the market and redirect the flow of capital away from the stock market.Excessive volatility also reduces the usefulness of stock price as a reflector of the real worth of the firm. Volatility, however, is not an evidence of rrational market behavior or inefficient markets. Stock return volatility is usually asymmetric in its response to past negative price shocks compared with the positive shocks, but what factors drive volatlllty over time Is not clear. Moreover, Increase In firm-specific risk appears to adversely affect its stock valuation.This note analyzes 2003-2007 and draws some policy implications. † Dhaka Stock Exchange (DSE) â€Å"Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in MotiJheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exc hange is the first stock exchange of the country. As of 9 December 2009, the Dhaka Stock Exchange had 671 listed companies with a combined market capitalization of $34. 2 billion. Dhaka Stock Exchange (DSE) is a public limited company.

What Does Feminism Stand For Who are These Creatures who call themselves Feminists

What Does Feminism Stand For Who are These Creatures who call themselves Feminists A layman views feminism as being focused on women gaining equal rights to men. However, this is a very simplistic way of addressing feminism. In reality, feminism is much more complex and larger than merely describing equality for women (Weisberg 234).Advertising We will write a custom essay sample on What Does Feminism Stand For? Who are These Creatures who call themselves Feminists? specifically for you for only $16.05 $11/page Learn More Feminist philosophy espouses various hidden as well as non-expressed desires of all the people with regard to human equality. It is both an intellectual commitment and a political movement that seeks for womens justice as well as an end of all kinds of sexism (Dutt 238). Generally, people disagree on a number of issues. For instance, they are against of the common definition of sexism. This question should reflect their craving for equality and measures which are to be done to achieve it. Whilst many people can easily def ine feminism, there is a need for deeper understanding of what feminism is and who qualifies to be termed a feminist. Feminist concept varies in two ways in majority sociological hypotheses (Walker 89). Firstly, it is the function of a multidisciplinary, multicultural as well as worldwide community, which consists of not only sociologists, but also professionals from several other professions, artistic authors as well as political activists. Subsequently, feminist sociologists operate with a dual goal to expand a deepen sociology by reviewing professional understanding. It is also necessary to take into account breakthroughs being attained by feminist scholars and to grow a crucial comprehension for a culture in order to alter the globe in guidelines considered much more humane. Various feminists want the society to accept that there is no strategic means of unifying different sexism instances and correspondingly, the lacks of a strategic unity in what constitutes feminism. Rather f eminism should be viewed as an avenue for coalition building (Dutt 236). Different entities operate to deal with various forms of oppressive actions; some entities handle oppression against females as of fundamental concern.Advertising Looking for essay on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, feminists are motivated by the pursuit for social justice. The feminist inquiry offers a wide range of standpoints with regard to social, cultural, economic, as well as political aspects (Duplessis and Ann 34). Understanding feminism begins with developing an undertaking of the theory itself, as well as the politics surrounding it. Further, the sub-entries of feminism include aspects like disability, globalization, sex work, human trafficking, as well as sexuality, among others (Walker 99). These aspects extend the understanding as well as the scope of feminism. Different cultures, even without their own comprehensi on describe various aspects of feminism uniquely. For instance, within the African culture, feminism will show much focus on fighting the tradition that deters progress of women. In such societies, women have for long been sidelined in decision making and generally treated as the weaker sex (Kiss 343). The society has shaped women to be ‘submissive’ to men regardless of whether they are being oppressed or not. This is very much unlike the western civilization where women have long been accepted as participants within every process in the society. However, within such a society, another aspect of feminism emerging is the role of sexuality (Walker 102). As one would ask, is the western culture treating women as sexual objects? Broadly speaking, most societies describe feminism goal as being to end oppression and hence stresses that women oppression is not only unjust but an unethical practice. The perspective is likely to differ within diverse cultures and it must be ackn owledged that women oppression goes beyond the rhetorical sexism. Emerging issues from diverse cultures include: classism, homophobia, racial feminism, ageism, as well as ableism, among other areas (Jaggar 98).Advertising We will write a custom essay sample on What Does Feminism Stand For? Who are These Creatures who call themselves Feminists? specifically for you for only $16.05 $11/page Learn More What is sure, is that all societies agree that unequally is unjust, thats why feminists should fight for their rights to restore the justice. However, a closer look emphasizes that accomplishing feminism goals necessitates dealing with racism, as well as economic exploitation suffered by women (Jaggar 67). Information from different cultures reveal that women from different racial backgrounds suffer from different forms of exploitation. The plight of women in African societies definitely differs from that of white women, or Indian women. This implies that femini sts must address the issue of race. A fundamental question to query the racial perspective is how often a white woman will get similar treatment as the one accorded to a black woman (Delphy 87). Moreover, one can watch the media display pictures of women from different backgrounds and the plight they suffer. Feminism is a fight for liberty that is one of the larger battles to eliminate all forms of superiority. It is important to understand how patriarchal domination shares ideologies with racial foundations as well as other forms of oppression (Herrman and Abigail 131). The feminism aspect cannot be eradicated while leaving intact the other aspects. Such knowledge plays an important role in both feministic theory and practice. Feministic theory is a generalized from this point. It is meant to be wide ranging system constituted of ideas about social life as well as human experience based on a woman-focused viewpoint. There are three ways by which feminism is woman centered. Firstly, it begins with investigation, which seeks to establish the situations and experiences encountered by women in the society (Herrman and Abigail 132). Secondly, feminism puts women at its centre by seeking to view the world from an exclusive vantage point for women within the social sphere.Advertising Looking for essay on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thirdly, feminist theory acts as a critical basis for activitism on behalf of the female-kind. It attempts to create a world where all humankind can live as equals. More answers are still general after decades of posing the question to the women’s plight in the society. Women are found within all social scenarios. Where they are absent, it is due to the fact that they don’t have the ability or desire, but due to the fact that there has been a purposive endeavor to leave them out. Where there are women, they have exercised roles extremely diverse from the well-known conception of them (with regard to roles of being passive wives or girlfriends as well as mothers). In fact, as wives and mothers as well as in a sequence of various other tasks, females have, alongside men, actively produced the ideals of being desired (Kiss 345). Females are actively present in the majority of social circumstances, professions, publics as well as community roles where a blind eye has been turned to the women’s contribution. Furthermore, female roles in a lot of social circumstances, whilst crucial, are diverse ranging from, much less fortunate compared to, to beings subordinate to men. Paying no attention to the role of women in society is a key to notice inequality. Feminisms second fundamental query, then, is: Why are things the way they are? The initial query demands for an explanation of the social community, the second query requires an explanation of the community. Feminisms responses to these types of queries provide people with a common social concept. Delphy, Christine. Close to Home: A Materialist Analysis of Womens Oppression, Trans. Diane Leonard. Amherst: University of Massachusetts Press, 1984. Duplessis, Rachel and Ann, Snitow. The Feminist Memoir Project: Voices from Womens Liberation, New York: Random House, 2008. Dutt, Martin. â€Å"Reclaiming a Human Rights Culture: Feminism of Difference and Alliance.† In Talking Visions: Multicultu ral Feminism in a Transnational Age, ed., Ella Shohat. Cambridge, MA: MIT Press, 1998, 225-246 Herrman, Anne and Abigail, Stewart. Theorizing Feminism: Parallel Trends in the Humanities and Social Sciences, Boulder, CO: Westview Press, 2007. Jaggar, Alison. Feminist Politics and Human Nature, Lanham, MD: Rowman and Littlefield, 1983. Kiss, Elizabeth. â€Å"Feminism and Rights.† Dissent, 42.3 (2002): 342-347. Walker, Margaret. Moral Understandings: A Feminist Study in Ethics, New York: Routledge, 2005. Weisberg, Kelly. Feminist Legal Theory: Foundations, Philadelphia: Temple University Press, 1993.

Avoid Capital Offenses When Using Job Titles

Avoid Capital Offenses When Using Job Titles Avoid Capital Offenses When Using Job Titles Avoid Capital Offenses When Using Job Titles By Mark Nichol When it comes to mechanical aspects of writing, few details seem to trip writers up as much as capitalization: when to use uppercase letters, and when to use lowercase letters. Specific job titles preceding a person’s name are capitalized, but descriptions are not. For example, â€Å"Marketing Director John Doe† is correct, but â€Å"Marketing Chief John Doe† is not, unless â€Å"marketing chief† is John Doe’s actual title. After a name, titles are lowercase regardless of whether they are specific or general: â€Å"John Doe, marketing director at ABC Industries.† If you modify even a specific job title, such as noting that someone no longer holds a position, what appears to be specific becomes an apposition, part of a job description rather than a title: â€Å"former marketing director John Doe.† Some style guides disregard this last rule, and some publications choose to capitalize â€Å"president† when referring to the head of state even when the word appears in isolation from the title holder’s name, but this is an unnecessary nicety. Likewise, ordinary job titles in isolation are never capitalized. For example, the job title in â€Å"The park ranger asked for our permit† is a mere description, and needs no emphasis. Job titles are at times absurdly attenuated, and placing them before a person’s name can wear readers out. Confronted with a magnificent moniker like â€Å"Oracle Principal Product Manager for Windows Technologies John Doe,† relax the identification a bit: â€Å"John Doe, Oracle’s principal product manager for Windows technologies† (the proper name Windows remains capitalized even after the name), is a gentler approach. Capitalization of job titles and general descriptions alike is permitted in direct address when you are writing to someone (or transcribing a speech directed at them) and using the title or description in place of a name: â€Å"That’s an order, Sergeant†; â€Å"I’ll get right on it, Chief.† Capitalize formal and informal family-relationship labels, too, as in â€Å"If only Father were here† and â€Å"I’ll tell Mom!† but not in â€Å"Wait until your father gets home!† or â€Å"I saw your mom yesterday.† Terms of endearment aren’t capitalized, either: â€Å"I’ll get it, dear.† Most terms of respect are capitalized (â€Å"I object, Your Honor†), but â€Å"sir† or â€Å"ma’am†/†miss† are not (unless you are addressing a letter or an email, in which case you should write â€Å"Dear Sir† or the equivalent). The take-away about titles: Capitalization is seldom called for. Unless you’re using a person’s exact job title, and only the job title, immediately before that person’s name, chances are you shouldn’t capitalize it. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Style category, check our popular posts, or choose a related post below:Comparative Forms of Adjectives40 Fish IdiomsThe "Pied" in The Pied Piper

Documenting the Media Revolution Essay Example | Topics and Well Written Essays - 1500 words

Documenting the Media Revolution - Essay Example Broadband Policy and Competitiveness†). One of the leading US associations, the Entertainment Software Association (ESA), stated that 49% of US households are delicately assuming the use of console through playing various computer games and it is not only affecting the teenagers but also the other varied age groups. Contextually, it also needs to be highlighted that the Internet is not only influencing the use of television simultaneously – it is becoming a great challenge for other mass communication media, i.e., newspaper, journal and books, to cope with the ever-increasing reach of the Internet (â€Å"Who is Playing†). Thesis Statement The paper intends to shed light on various factors regarding how the continuous increase in the use of computer as well as the Internet has vastly affected the habits of watching television. This is not only a concerning issue for the US but also has posed a great challenge to the other communication media throughout the world, e specially in developed and developing countries. Through the enormous effort of the World Wide Web (WWW) and with the emergence of a number of technological marvels created by a few software developers, it has resulted in significant changes in terms of the process of traditional TV viewership by providing various interesting ways of spending leisure time. Question 1 With regard to the first question in terms of the decreasing amount of viewership of TV by the teenagers and other age groups and enormous development of the Internet usage, various scholars and researchers have worked dedicatedly to find out the actual reason behind it. In relation to this crucial aspect, The New York Daily News (NYDN) provided a statistics of Nielsen’s research report on 19th September, 2012, showing that Americans spend around five hours a day watching TV. However, the report also has shown a significant concerning factor that the teenagers in between the age group of 12-17 are not interested in traditional TV watching. As a result, they are only spending around 3 hours for entertainment purposes among which most of the time they are watching videos via smartphones (â€Å"People Watch More Television†). The enormous indulgence in computer and the Internet has not only touched the teenagers but also has shown a significant spread amid various age groups till sixty years. This is because as per the obtained figures, it has come into light that only people belonging to the age group more than sixty spend approximately eight hours a day watching television. On the other hand, as per the report publication of The Telegraph of the United Kingdom, it is quite apparent that the Americans are in the number one position in terms of Internet surfing in the worldwide context (â€Å"Americans Spend Most Time on the Internet†). Besides Internet surfing in terms of video game playing, the Entertainment Software Association (ESA) provided a report showing that the average age group is 30 in

Sabor Inc Case Analysis Study Example | Topics and Well Written Essays - 750 words

Sabor Inc Analysis - Case Study Example The standardization strategy also aimed to increase inventory turnover 20 times of the present rates. According to the company’s management, standardization will help increase sales and help prevent stock-outs. In addition, the company believed that standardization of its products would provide opportunities for lowering the company’s products thereby making the company gain a competitive edge over its rivals. Sabor Inc. had, for many years, sold air humidification and filtration units alongside its heating and cooling units. Air filtration units accounted for 7% of the total company sales. However, the manufacture of Marconil significantly increased the sales of the air filtration units as a percentage of the total sales. The Marconil was a new high-tech, thin, system of filtering small particles from the air. Sabor Inc. air filtration units became very popular due to the high number of people suffering from asthma and allergic reactions. Marconil was cheaper compared to electronic cleaning methods. Marconil cleaning system was popular due to its ability to kill airborne bacteria when used with ultraviolet light units. The Marconil filtration system led to increased sales of the Sabor Inc. air filtration system. Since the launch of the Marconi air cleaning system three years ago, the company has experienced impressive sales records. The sales have often exceeded the sales forecasts by the company’s marketing department. In the first year of its launch, the marketing department projected Marconi sales at $1million but the actual sales stood at $11 million. In the second and third years,the actual sales were $29 million and $ 72 million far beyond the sales forecasts of $15 and $40 million respectively. However, the marketing department predicts that sales growth will level off for the next three years. A. The company can contract Marconi air