Challenges of Small and Medium Enterprises in Kenya

SMALL AND MEDIUM-SIZED ENTERPRISES SME stands for small and medium-sized enterprises – as defined in EU law: The main factors determining whether a company is an SME are: 1. Number of employees, and 2. Either turnover or balance sheet total | |Employees |Turnover |or |Balance sheet total | |Company category | | | | | |Medium-sized | 250 |≠¤ â‚ ¬ 50 m |≠¤ â‚ ¬ 43 m | |Small | 50 |≠¤ â‚ ¬ 10 m |≠¤ â‚ ¬ 10 m | |Micro | 10 |≠¤ â‚ ¬ 2 m |≠¤ â‚ ¬ 2 m†¦show more content†¦Credit constraints operate in variety of ways in Kenya where undeveloped capital market forces entrepreneurs to rely on self-financing or borrowing from friends or relatives. Lack of access to long-term credit for small enterprises forces them to rely on high cost short term finance. There are various other financial challenges that face small enterprises. They include the high cost of credit, high bank charges and fees. The scenario witnessed in Kenya particularly during the climaxing period of the year 2008 testifies the need for credit among the common and low earning entrepreneurs. Numerous money lenders in the name of Pyramid schemes came up, promising hope among the ‘little investors,’ that they can make it to the financial freedom through soft borrowing. The rationale behind turning to these schemes among a good number of entrepreneurs is mainly to seek alternatives and soft credit with low interest rates while making profits. Financial constraint remains a major challenge facing SMEs in Kenya (Wanjohi and Mugure, 2008). National Policy and Regulatory Environment The national policy and regulatory environment has an important impact on technology decisions at the enterprise level. The structural adjustment programs (SAPs) implemented in many African countries are aimed at removing heavy policy distortions, which have been viewed as detrimental to the growth of the private sector. SAPs tend toShow MoreRelatedFinancial Issues Affecting Kenyatta Market Women Entrepreneurs Of Nairobi962 Words   |  4 PagesFINANCIAL ISSUES AFFECTING KENYATTA MARKET WOMEN ENTREPRENEURS OF NAIROBI, KENYA 1. Introduction i. Background Information According to Creighton Yieke (2006), women in Kenya constitute a subordinate, disadvantaged and muted group who are routinely treated as inferior and who face coerced sex, harmful cultural practices, stigma and discrimination. Their inferior legal status in relation to marriage inheritance, guardianship, property ownership, places them in disadvantaged position economicallyRead MoreThe Adoption Of Knowledge Management Systems Essay1089 Words   |  5 Pages Adoption of Knowledge management systems as an IS /IT business strategy by SME’s in Kenya. Abstract In shaky, uncertain economies, small and medium enterprises often take the biggest blow in periods of slow or no business. When there are minimalistic orders, the impact is immediate as most of these firms don’t have a wide array of products compared to big firms. As a small organization, it’s always important to have a proper Information technology portfolio to help them carry out proper analysisRead MoreFACTORS AFFECTING GROWTH OF SMALL SCALE ENTERPRISE IN KENYA1866 Words   |  8 PagesCHALLENGES AFFECTING THE GROWTH OF SMALL SCALE ENTERPRISES IN KENYA (A Case study of Wajir Soko Mjinga Market) A Research proposal Submitted in Partial Fulfillment for the Award of Diploma in Business Administaration to the Mount Kenya University JULY 2013 ACKNOWLEDGMENT I take this occasion to thank the Almighty GOD for blessing me with his grace. I extend my sincere gratitude to my MKU supervisors for giving the right guidance whileRead MoreEconomic And Social Development Efforts Has Benefited Women As Much As They Have Benefited Men Essay2552 Words   |  11 Pagesway of development programs and projects. By so doing, it was and still is expected that women’s situation would improve. The BNA emphasized the reduction of income inequities between men and women (GOK, 2005). It is for this reason that women in Kenya have for quite a long time now been encouraged to undertake businesses. Entrepreneurship is increasingly recognized as an important driver of economic growth, productivity, innovation and employment and it is widely accepted as a key aspect of economicRead MoreFactors Affecting Tax Compliance of Small and Medium Scale Enterprises in the Advent of the Eac Common Market.1751 Words   |  8 Pages2006; Cowell, 1992; Kirchler, 1999; Wenzel, 2002, 2004). A number of such social psychological factors have been used to explain the complexity of taxation compliance behavior. Kenya is ranked among low-income countries or low-compliance countries with hard task of ensuring efficient and effective tax administration. â€Å"Kenya Revenue Authority is supposed to promote compliance with Kenya’s tax and to ensure responsible enforcement by highly motivated and professional staff thereby maximizing revenueRead MoreHarnessing Knowledge Management For A Competitive Advantage Essay2117 Words   |  9 PagesHarnessing Knowledge Management for a competitive advantage: A framework for SMEs in Kenya. Abstract Over years, the economic impact of Small and Medium Enterprises in our societies is significant. For instance, In Kenya, over 50 percent of jobs were created by this sector in 2005 leading to growing the country’s GDP but despite their impact, they often take the biggest blow in periods of slow business. (Sedej Justinek, 2014). When there are reduced orders, cancelation of orders, delayed paymentsRead MoreVision 20305053 Words   |  21 PagesINTRODUCTION Kenya vision 2030 aims to create a cohesive, equitable and just society based on democratic principles grounded in the existing, rich and diverse cultures in Kenya. The vision 2030 is based on three pillars namely Economic, Social and Political. The economic pillar seeks to ensure prosperity for all Kenyans through economic development programs in key sectors aimed at achieving an average gross domestic product (GDP) of 10% per annum up to 2030. The social pillar aims at buildingRead MoreIntroduction Advertising is often referred to as above the line expenditure, a term which is1700 Words   |  7 PagesFaulu Kenya Limited was founded by Food for the Hungry International (FHI), a Christian relief organization, Loan scheme program that targeted the economically active poor in Mathare. From its humble roots as a loan scheme in 1991, Faulu is currently one of the top Deposit Taking Micro Finance Institution(MFIs) in Kenya have successfully developed a platform aimed at banking the previously unbanked though a variety of savings, credit, micro insurance and mobile banking solutions (Faulu Kenya web link)Read MoreGlobalization For Small And Medium Sized Enterprises And Companies From Developing Countries1713 Words   |  7 Pagesworries have spurred the public discussion, in particular when it comes to developing countries. Do you agree? Please provide the pros and cons of globalization for small and medium-sized enterprises and companies from developing countries. Illustrate your argumentation with practical examples. Define recommendations for policy-maker of a small developing country and describe how supranational institutions can support the efforts of developing countries to successfully participate in the globalisationRead MoreCan Banana Value Chain Help Eliminate Hunger in Uganda and Tanzania?2510 Words   |  11 Pagesand eliminating hunger among rural and urban poor in Uganda and Tanzania. We provide a comprehensive analysis of banana consumption and productivity in the two countries and we scope the challenges and opportunities for providing more efficient and enhanced production and marketing focusing on smallholder enterprises along the commodity value chain. To undertake this study we extensively reviewed published data and grey literature from national programs across the EAC and international sources to

The Victory Of The Battle Of Issus, And The Conquering Of...

However, the accuracy of the film takes a turn when transitioning from Alexander taking over gaining more power and taking over the thrown and the battle of Gaugamela. Covering Alexander’s accomplishments concerning the defeat of the rebellion of Thebes, the battle of Issus, and the conquering of Tyre would have drastically increased the running time of the film, but these events are important to understanding Alexander’s overall triumph. Before his father, Philip, died a Greek city called Thebes showed their loyalty to him, but with Alexander’s rise to the throne, they attempted to take back their freedom. Alexander handled this conflict expeditiously by capturing and annihilating Thebes. Like the defeat of Thebes, the battle of Issus was skimmed over. This battle was important in showing Alexander’s success against the Persian army. He gained this success by attacking the king of Persia himself and causing him to retreat. After this, Alexander blockaded Tyre with the intent to conquer. This attack was extremely brutal and was described by Plutarch as one that was, â€Å"performed with so much vigour that the Tyrians retired, and the town was carried that very day.† (Plutarch) Once he conquered Tyre, Alexander was faced with the reality of the amount of men he lost and became so infuriated that he obliterated half of the city. The lack of these details from Stone’s rendition of Alexanderâ €™s life causes a failure in the development of his merciless and remorseless attitude.Show MoreRelatedThe Success Of Alexander The Great1374 Words   |  6 Pageseffectively utilize these new innovations. He was a skilled tactician, and his combined use of infantry, cavalry and terrain brought him victory on many occasions. Although his army was not nearly the size of the Persian Army, it was much more skilled. Because of the smaller size, Alexander was able to effectively control all sectors during battle. During the Battle of Issus, Alexander strategically chose what seemed to be unfavorable ground to throw his enemy off guard. Although the Macedonians are greatlyRead MoreThe Epic Father-Son Battle: Phillip Ii Versus Alexander the Great5165 Words   |  21 PagesFather-Son Battle: Phillip II versus Alexander the Great Chris L. Word Count: 1595 During the times of ancient Greece, perhaps one of the most influential and known powers was Macedonia. Macedonia’s empire existed from the 800s BC to 146 BC and is principally known for the accomplishments of it’s leaders: Phillip II and his son, Alexander the Great. Phillip II worked internally in the regions near Greece strengthening his country, while Alexander operated very far from Greece, conquering much ofRead MoreAlexander The Great Has Truly Shaped And Inspired The Entire World2294 Words   |  10 Pagespredicted that Alexander would be ‘invincible’, or ‘unconquered’. Alexander from a young age had the pressure and desire to succeed and rise beyond his father’s success. Alexander would complain to his friends that whenever his father won a military victory, â€Å"my father will leave no great achievement for me to show the world.† Philip had created a huge and powerful empire that young Alexander aspired towards. Philip claimed descent from the legendary strongman and son of Zeus, Hercules and OlympiasRead MoreAlexander The Great s Influence On The Persian Empire1453 Words   |  6 Pagesmilitary which had started off as simple civilians were trained into full blown warriors. Along with these changes, came the developments of things such as catapults and siege towers. The siege towers being initiated later on by Alexander during the Battle at Tyre. Although, none of this could have been possible if Alexander had not shown the qualities needed within a leader. He was a strong and righteous leader, in which he led by example. He kept his men taken care of and he was extremely devoted to theirRead MoreAlexander: The Not So Great1850 Words   |  8 PagesGreece. At the Battle of Chaeronea the Greeks were defeated and Alexander displayed his bravery by destroying the elite Greek force, the Theban Secret Band. Some ancient historians recorded that the Macedonians won the battle thanks to his bravery† (Web, Project of History of Macedonia). Although Alexander would be the victor of this battle, his age may be to blame for his arrogant attitude in moving forward throughout his reign. Over the course of his reign, there would be four major battles with deathRead MoreAnalysis Of Alexander IIi The Great King Of Macedonia And Conqueror Of The Persian Empire1584 Words   |  7 PagesBC in Pella, the ancient capital of Macedonia.1 Alexander’s childhood had a major impact on his later life and his military strive. At a young age Alexander watched his father turn Macedonia into a mass military power. His father won many great battles all throughout the Balkans. When he was just twelve years old, he showed off his horse riding skills to his father and many others. He tamed a Bucephalus, a rowdy steed. Bucephalus was supposedly unable to be ridden, and all who had tried to tameRead MoreAlexander the Great: Strenghts and Weaknesses as a Person, Statesman and Leader1357 Words   |  6 Pageshas held an eminent place in history. Arguably one of the greatest men the world has ever known, the Macedonian King accomplished many great feats in his short, but glorious life. During his reign, Alexander played several roles in the process of conquering the Persian empire, and in the assessment of his character, aspects of Alexanders capabilities of both strengths and weaknesses must be explored in him as a person, a statesman and a leader. Alexander was a complex, inscrutable man of passionRead MoreThe Life Of Alexander The Great1264 Words   |  6 Pagesassassinated by a Macedonian noble, right as he had begun his plans to invade Persia. Why he was killed is still a mystery today, though it is possible that Alexander and his mother were partially responsible. With Philip of Macedonia dead, his plans of conquering Persia were left to his son, heir, and the new king, Alexander. Once Alexander had been named king of Macedonia, he was thrown into a series of uprisings that his father’s death had triggered. He quickly forced his way into Northern Greece, andRead MoreA Report On Alexander The Great Essay1269 Words   |  6 Pagesquote proved that he was a lion when he defeated the Thracians and captured the tribe’s stronghold renaming it Alexandroupolis. Two years later Alexander was given a commanding post when the Macedonian army invaded Greece. It is said that at the battle of Chaeronea, when the Greeks were defeated, Alexander was one of the main reasons the Macedonian army prevailed. When King Philip II married another woman, Cleopatra, it created a great rift between the family. Alexander the Great had multiple spousesRead MoreAlexander the Great Essay13163 Words   |  53 PagesEdition 9.2 SYNOPSIS Introduction Alexanders Parents Prince Regent Alexander and Philip Philips Reign Alexander becomes the King Alexanders European Campaigns Invasion of Persia The Battle of Granicus Asia Minor and the Battle of Issus Conquestof the Phoenicia AlexanderinEgypt Alexanderin Mesopotamia The Battle of Arbella Campaign eastward, to Central Asia Alexanders Death Hellenistic Era Epilogue Introduction. Alexandros III Philippou Makedonon (Alexander the Great, Alexander III of Macedon)

What Makes You Happy - 923 Words

Particularly, genuinely true consistent happiness is achievable through an attitude of gratitude. Throughout the generations, humans have long sought to grasp the concept of living in a consistent state of happiness. Proof of this can be found in the constitution of the United States, as their forth fathers placed emphasis on the freedom to the pursuit of happiness. In today’s culture, it is often heard the saying. â€Å"Do what makes you happy†. Likewise, Parents tell their kids to choose true happiness as a priority in their lives. The emphasis on happiness comes from a true fact. In comparison to unhappy individuals, happy individuals are more productive at work and have higher incomes, are more tolerant, creative, decisive, persistent, emphatic, have more friends and better marriages (Seligman, 2002) Abascal, J., Brucato, L., Stephenson, P., Brucato, D. (2009). Furthermore, consistent Happiness might be a bit more complex that one may think. It is a road of many paths, some path that move or disappear and some that lead in the wrong direction. Even so, gratitude may be the road map to consistent happiness. First of all, to some people, happiness based on positive emotions may be short lived. As ever changing human beings, evolution has taught us to adapt, survive and sustain ourselves by forming communities, stablishing civilization and adhering to climate and circumstantial changes. Even so now, as a part of our adaptability, we tend to adapt to fortunate circumstancesShow MoreRelatedWhat Makes You Happy?896 Words   |  4 Pageslake. The evening is nice and peaceful, the weather is just right, and you’re enjoying a bonfire with your family and friends. This in particular makes me happy. The question is, what makes you happy? Is it family, friends, music, food, money? The list just keep on going. The happiness in our lives is endless. There are many factors that contribute to a happy and fulfilling life. Some psychologists are begi nning to understand a variety of aspects that contribute to living a successful life. Such as lifeRead MoreWhat Makes You Happy And Don  ¬Ã‚ ¥ T Be Afraid909 Words   |  4 PagesStrength is what makes people to keep trying over and over again. Don’t cry, don’t let those tears fall, my mind said. Never give up; if someone else can do it, you can do it too. Look for what you want and follow the path you want to, for your life. Do what makes you happy and don ´t be afraid, if it is meant to be yours it will be. In this way you might find some troubles and bumps to avoid, but nothing that with a little bit of divine help call â€Å"Faith† cannot fix. These ones were the words a voiceRead MoreWhat Makes A Happy Marriage Doesn t Mean You Have A Perfect?910 Words   |  4 PagesRomance â€Å"A happy marriage doesn’t mean you have a perfect spouse or a perfect marriage. It simply means you’ve chosen to look beyond the imperfections in both.† ~Fawn Weaver If you’ve been married for any significant amount of time, you surely realize by now that having and keeping a great marriage takes work, it doesn’t just happen. It takes unconditional love, trust, communication, patience, forgiveness, compromise, and more than just a little bit of romance. Remember those days when you were firstRead MorePersonal Note On Happiness And Happiness968 Words   |  4 Pagessomeone what makes them happy, you more than likely would receive a million different answers. The general definition of happiness or being happy is a state of well-being and contentment, or a pleasurable or satisfying experience. An individual’s definition of happiness more as excitement increase in the tendency to choose ab exciting option over a calming option; and defining happiness more as feeling calm increase the tendency to choose a calming option over exciting option. So, what makes peopleRead MoreThe Book Happy : Happy896 Words   |  4 PagesWhat is happiness? The answers are endless, some people finding something more relatable than others. In the United States, we are given the freedom of speech, and everyone has his or her own opinion. Based on opinion it makes the world a different place. We are not all the same which is better. Happiness is someth ing that can be taken it different ways, like the way it looks and feels but scientist and personal experiences show how it really is. Personally what makes me the happiest is on sportsRead MoreWhat Makes Up a Happy Family Essay1299 Words   |  6 PagesWhat Makes Up a Happy Family Is There Such A Thing? Estefania Ayala Keiser University Abstract Family is important as it is also important to have a happy family. We might think at times what makes a happy family? Is there such a thing as a happy family? Or is it possible to have a happy family. Having a happy family as we all might know is not an easy task to do, but it is neither impossible. What we can do is search for element to guide us through a happy family. I understand that no oneRead MoreThe Importance Of Happiness713 Words   |  3 PagesHappiness is a choice, and its only our choice. No matter what the circumstances are in our lives, we get to choose what emotion we want to react with. People show different ranges of emotions which can be caused by other people, but ultimately we choose our emotions with our mind and hearts. It doesnt matter what has happened in your life today, you can still choose to be happy. By choosing to be unhappy you put yourself in a sorrowful and melancholia mindset, which isnt good for your mentalRead MoreThe Happy, Film, You Look At Yo urself And How You View The Meaning Happy1345 Words   |  6 PagesAfter watching the â€Å"Happy† film, you look at yourself and how you view the meaning happy. You begin asking yourself questions to find an answer after analyzing your life, Am I truly happy? Why am I or am I not happy? Everyone in the documentary shared what made them happy and some had nothing but didn’t care because they were surrounded by family and friends, which showed that’s all they needed. What moved me after watching the film was how happiness is taken for granted. What people I encounterRead MoreDefining What Happiness Is All About Essay921 Words   |  4 PagesDefining What Happiness Is All About By Vaishnavi S | Submitted On June 10, 2012 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Expert Author Vaishnavi S What is happiness? There is no definitive meaning to happinessRead MoreLife Is An End Activity Based Solely Upon Us Through Choice, Virtue, And Character1307 Words   |  6 Pagesthousand years apart. Osteen a very well known pastor, gives a sermon on modern views of how to be happy. He makes it very clear throughout his sermon that happiness is a choice. For example he clearly says, â€Å"Happiness is a choice†. He also states, â€Å"You only allow things you want to frustrate you† here he is implying that you can allow things to frustrate you. If you can allow something to frustrate you, or be unbothered by it then it becomes a choice. Osteen also touches on the subject of your character

Analysis of Commercial Advertisement Essay examples

Analysis of Commercial Advertisement Television commercials are television programming produced by any organisation to provide message in the market about their product or services. It is one of the most popular methods to attract customer and provide them information about their products or services. Here we would be analysing TV commercial to understand it and its effects and whether it is proving for what it are made. We have heard a very common slogan named as â€Å"RedBulls Gives You Wings†. It is the very popular television advertisement of RedBulls energy drink with many advertisement prints and different characters. We have seen the advertisement in which a bird pisses on a man and after that man took out a RedBull energy drink from†¦show more content†¦Red Bull Origin :: Energy Drink :: Red Bull.) Market share and strategy - RedBull had dominated the market of energy drinks all over the world. Its main mission is to provide an energy drink made with natural ingredients which provide energy to man, women or children in their day to day life. It provides instant energy which helps college students or working people to maintain their energy and keep doing their work with full enthusiastic way.The Red Bull brand had created a great impact on the mind of its customers by its product results and pricing strategies which make it a larger energy drink on the market.(The Top 15 Energy Drink Brands.) RedBull is also different from other energy drinks that it uses half the quantity of caffeine and sugar than any other competitors energy drink. RedBull had produced many advertisementsas TV commercials and also increases their sales with the help of magazines, internet and billboard advertising. Advertisements in magazines are limited because there are only few magazines which suits to pu blish RedBull advertisements in them. Internet advertising will gain the response of the particular audience as it truly depends on people using online services. Billboard advertising is also a very good method for attracting customers, but it should be placed at the placesShow MoreRelatedAdvertisement Analysis : The Television Commercial1448 Words   |  6 PagesAd selection: The television commercial was telecasted in November 17, 2008 (11 years ago) through known as banned comedy type commercial. It’s a controversial ad produced by Pepsi co where a kid tried to get drink from vending machine included both Pepsi and coke. He put down 2 cokes under feet and reached the higher button to get Pepsi. At the very beginning this advertisement was telecasted in TV channels but after imposing new advertising law this ad banned. Ad Justification In carbonatedRead MoreOpdivo Advertisement Analysis. Medical Commercials Are1125 Words   |  5 PagesOpdivo Advertisement Analysis Medical commercials are something that the general public have learned to phase out if it has nothing to do with them or anyone they know. These prescription drug advertisements are usually jam-packed with too much information and often leaves their audience snoring. However, the newest commercial for Opdivo (Nivolumab) recently caught my attention. Through its use of emotional tones, symbolic visuals, and hopeful tagline, Opdivo is able to capture the interest of someoneRead MorePortrayal Of A Woman s Independence1400 Words   |  6 Pageswoman’s independence in television advertisements. The goal was to determine if there was a difference in how women are portrayed in TV commercials when they target male and female dominant audiences based on a woman’s independence. I hypothesized that more commercials will portray woman as independent when targeting female audiences than when targeting male audiences. Fifty commercials were recorded from two different networks: Bra vo Network, to analyze the commercials directed towards a females dominantRead MoreRhetoral Analysis : Budweiser Commercial1170 Words   |  5 PagesRunning head: RHETORIC ANALYSIS ESSAY​​ 1 Rhetoric Analysis Essay Name Institution Rhetoric Analysis Essay Introduction Budweiser has produced many commercials for marketing purposes. However, none of those are as iconic as the one they used to pay tribute to the victims of the September 11. Known as the Budweiser commercial, some of the television viewers only had a chance to watch it from YouTube because it was aired just one time February 3, 2002, during theRead MoreEffects of TV Commercials on Consumers1134 Words   |  5 Pageseffects of television commercials before this. A television commercial is used to spark interest in a product or services; without this influential and dominant form of advertisements, the majority of the companies and their respective products and services would not maximize their ability to reach various consumer bases (commercial. laws). Effects of TV commercials on consumer: Many of the researches have been conducted to see the influence of advertisement or TV commercials on consumer.The findingsRead MoreThe Impact Of Nutrition Information On Advertisement Of Fast Food Chains Essay1313 Words   |  6 PagesThe impacts of nutrition information on advertisement of fast food chains The fast food industry in the U.S. has rapidly expanded in the past few decades (Hwang, 2013). In 2014, the industry has created a 3% current value growth, indicating its robust and continued ability in the U.S. market overall (Euromonitor, 2015). This strong increase has largely changed Americans’ lifestyle and eating habits; the amount of money they spend on fast food is more than that on education, readings and videos (SchlosserRead MoreThe Effect Of Women s Media1517 Words   |  7 Pages Alejandra Mendez December 8, 2015 The Effect of Women Identity in Media Research Question: How does the way that women are portrayed on television commercials and advertisements affect the way women are seen in society? Thesis: Woman portrayed on television commercials are stereotyped, sexualized, and have limited roles which affects the way women are seen in society because they are seen as weak, sexualized objects who are dependent upon men. It is important to establish theRead MoreVisual Analysis : The Flies 932 Words   |  4 PagesVisual Analysis Summary: The commercial starts out with a dark brown haired woman, named Ashley, sitting on a couch holding a small wooden alien figurine. She then proceeds to say â€Å"I love your apartment Brian† as a man, Brian, and a monkey are walking up from behind the couch. The monkey climbs over the couch and sits next to Ashley. As the monkey, Frank, sits next to Ashley, Ashley says â€Å"and Frank is so well behaved†. Brian leaning on the couch from behind says â€Å"yeah we’re best buddy’s. I’m goingRead MoreFear and Sex Appeal of Advertising810 Words   |  3 PagesThat is why advertising often appeals to such base, human instincts as fear and sex. The sexual element of the one-sided appeal of the Secret Deodorant commercial entitled Fear of Being Exposed is evidenced by the use of a young, slender beautiful woman in a party dress lifting up her arms and looking seductively at the camera. The deodorant commercial suggests to the targeted woman consumer that she wants to be desirable, which means selecting a deodorant that does not leave heavy build-up under theRead MoreAdvertising : The Magic System786 Words   |  4 Pages Commercial Culture Williams, R. (1980). Advertising: The Magic System. 170-195. Premises 1. While this article focuses on British history, Williams argues that the nature of advertisement has changed from a system to attract â€Å"specific attention† (similar to modern day classifieds) to a system that broadcasts â€Å"commercial information and persuasion† (p. 170, 184) 2. This change in advertising methodology is paralleled to changes in social and economic structures (p. 170, 177-178) 3. Through capitalism

Emerging Economies Asia Pacific Countries †Myassignmenthelp.Com

Question: Discuss About The Emerging Economies Asia Pacific Countries? Answer: Introducation Chand (2005) stated that the need for harmonisation of accounting standards has arrived due to developing single set of high-quality accounting standards that can be used by business corporations around the world. The harmonisation of accounting standards will help in achieving congruence between the financial reporting systems of different business entities that making it easy for the end-users to analyse and interpret the financial information disclosed by any business entity. The IASB (International Accounting Standards Board) has directed the business corporations around the world to prepare their financial reports as per the IFRS (International Financial Reporting Standards). However, the adoption of IFRS in different countries is largely influenced by the country-specific contextual issues that are restricting the harmonisation of IFRS. As such, it can be said that the harmonisation of IFRS is possible with the combined efforts of regulators, standard-setters, financiers, busin ess community and the accounting professionals. The various countries in the Asia-Pacific region have successfully adopted IFRS for enhancing the global competitiveness of their business corporations (Chand, 2005). As per the Albu, Albu, and Alexander (2014), the implementation of the IFRS standards by the Asia-Pacific countries has presented various challenges in front of the accounting professionals regarding the use of fair value accounting. As such, the use of fair value accounting in Malaysia has reported many challenges due to country-specific issues. The IFRS 13 standard has directed business entities to use fair value accounting as it provides realistic information about the current market price of assets and liabilities. The fair value accounting is regarded to be better method as compared to historical cost approach that records the historical price of assets and liabilities. The accounting-standard setting bodies in Malaysia are emphasising on the use of fair value accounting with the increasing need for protecting the interests of the end-users. There are various other emerging Asia-Pacific economies that are adopting the use of fair value accounting approach besides Malaysia such a s Australia, New Zealand and Singapore with the only exception of Bangladesh (Albu, Albu, and Alexander, 2014). According to He, Wong and Young (2012), the historical cost accounting method reflects the initial price of assets and liabilities at the time of their purchase and does not provide any information relation to the current market valuation. As such, it lacks reliability and therefore fair value accounting method is largely preferred by the business corporations in the Asia-Pacific countries to match the needs and expectations of the end-users of realising reliable information to be used in making investment decisions. The use of fair value measurement techniques by the business entities in Malaysia has facilitated the easy comparison and evaluation of assets and liabilities through the general purpose financial statements. It has helped in developing a systematic approach for valuing the financial instruments of a business entity that provides reliable and comparable information about its financial performance. Also, the fair value of assets and liabilities also help in estimating the predicting their future values that can help the investors and creditors to make informed decisions (He, Wong and Young, 2012). Qu et al. (2012) stated that the regulatory Authority of Malaysia and the Malaysian Accounting Standards Board has mandated the public listed companies under the securities commission Malaysia for the use of fair value accounting but still it remains optional for private companies. Thus, it can be said that fair value accounting is still not adopted completely in the business corporations of Malaysia. This is due to some criticism regarding the use of fair value approach during the preparation of the general purpose financial statements. The major criticism as argued by many accounting professionals regarding the use of this approach is that it introduces high volatility in the financial statements. This is because the valuation provided by this approach is not adequate sometimes and thus it is said that volatility is the price of investor confidence (Qu et al., 2012). Fair Value Measurement implemented by the 2 Malaysian Companies and 2 Australian Companies In order to analyze the use of fair value accounting in the 2 Australian companies and 2 Malaysian companies, there is need to select such companies from the list available from the respective countries stock market. The 2 Australian companies selected for this purpose are Wesfarmers and Woolworths and 2 Malaysian companies selected are BERHAD and MISC BERHAD. There is need to understand the adoption of IFRS by the Malaysian Accounting Board before comparing the accounting of two countries. Before the adoption of IFRS, Malaysian Accounting Board follows the US GAAP to perform their accounting reporting work. After the implementation of IFRS by the IAB for all the countries and made them mandatory for all, Malaysian Accounting Board has decided to take IFRS and made their own country Malaysian GAAP which will be applicable on the listed companies under the Malaysian stock exchange. The standards referred to in the Malaysian GAAP are known as Malaysia Financial Reporting Standards. In Australia, AASB takes care of the adoption of the accounting standard and their implementation in their financial reporting guidelines. After the introduction of IFRS, AASB has decided to make changes in their AASB (Accounting standard) so that there will similarity between them. The use of fair value of measurement as described under IFRS 13 has helped a lot i n valuing the assets and liabilities in the books of accounts (AASB13, 2015). This has enhanced the capability of users of the annual report to interpret the financial information and to measure the profitability of the company. There is almost similarity between the Australian GAAP and Malaysian GAAP regarding the disclosures made for the fair value measurement as both the countries has adopted the standards defined in IFRS. After looking at the financial reports of both the companies of Malaysian companies (Pensonic Holding BERHAD and MISC BERHAD) it has been found that MFRS 13 is used for measuring the fair market value of assets and liabilities. MFRS 13 (Accounting of Financial Instruments) has been upgraded in year 2011 keeping in view the IFRS 13 standards regarding the same (MASB, 2017). MFRS 139 allows the mixed measurement of the three main categories and they are measurement of comprehensive income, realized profit or loss and amortized cost (MISC BERHAD, 2016). In relatio n to measurement of the financial instruments, the higher of cost or last known market price in case the active market quotes are not known to the company. In addition to this there are many assumptions that are needed to make by the company before presenting the financial report (Pensonic Holding BERHAD, 2016). This includes use techniques of valuation that is related to use of inputs from market and other estimates. The fair value accounting used by both the Malaysian companies is given under notes to accounts with detailed description of each measurement (MISC BERHAD, 2016 and Pensonic Holding BERHAD, 2016). On the other hand, Australian GAAP (AASB 13) defines the concept of fair value measurement. Mostly all the points have been copied from the IFRS 13 with some small differences to adjust with requirement of Australian companies. In order to better present the difference, the following table will help a lot (Wesfarmers, 2016 and Woolworths Group, 2016). Difference between Fair Value Measurement by the Australian Companies and Malaysian Companies Component of Income Statement of balance sheet AASB 13 implication upon and as implemented by the Australian Companies MFRS 13 implication upon and as implemented by the Malaysian Companies Preparation of Consolidated Financial Statements Australian companies have presented their financial items at historical cost basis other than the financial instruments that are available for sale (Wesfarmers, 2016 and Woolworths Group, 2016). Malaysian Companies have also presented their financial items at historical cost basis but their no description about the financial instruments (MISC BERHAD, 2016 and Pensonic Holding BERHAD, 2016). Items related to business combination Australian Companies use the fair market value concept to measure the value of company to be acquired but there are no defined guidelines regarding the same, such as if business combination has been carried out in installment than there will no concept of revaluation of assets or financial instruments. Malaysian companies have followed the set of clearly defined assumptions regarding the cost of acquisition and their measurement in books of accounts. Goodwill and other intangible assets There is separate accounting standard that deals with the accounting of intangible assets. Goodwill is measured after the business combination at cost (initially) and after that it is treated with any impairment loss (Wesfarmers, 2016 and Woolworths Group, 2016). Here, goodwill is measured in same way as Australian companies do but there is difference of presentation under notes to accounts. Depreciable Assets Assets that are presented under the non-current assets section are measured after deducting the depreciation for the year from their book value. There is also a concept of charging depreciation according to their remaining useful life in some cases (Wesfarmers, 2016 and Woolworths Group, 2016). Malaysian Companies follows same concept as Australian companies do, but depreciation is charged at predefined rate without giving effect of useful life of year (MISC BERHAD, 2016 and Pensonic Holding BERHAD, 2016). Financial Assets These assets are measured according to the risk management system and are divided on the basis of years of maturity (Wesfarmers, 2016 and Woolworths Group, 2016). Separate accounting standard (MFRS 139) is used to measure these assets (MISC BERHAD, 2016 and Pensonic Holding BERHAD, 2016). Here are some of pictures from the Annual reports that provide use of fair value measurement concept by the Australian companies Measurement of Financial Assets Goodwill and Other Intangible assets Property, Plant and Equipment Here re some of pictures from the Annual reports that provide use of fair value measurement concept by the Malaysian companies Business Combination Depreciation rate of fixed assets Goodwill and other intangible assets Financial Assets Use of fair value accounting since IFRS harmonisation in Malaysia in improving the quality of information disclosure The publicly-traded firms are adopting the use of fair value accounting (FVA) approach since IFRS harmonisation for improving the quality o their financial reports. The FVA is being widely recognised as a method of providing more accurate, comprehensive and timely information relative to the asset price by incorporating the effect of market movements during their valuation. The increasing complexity and volatility in the markets is causing the need for investors to determine the actual worth of an asset. The use of fair value accounting method is advocated by the accountants who seek implementing more precision in the assets and liabilities valuation. As such, it has improved the quality of financial disclosure by depicting the value of assets and liabilities as per the economical conditions. The business entities operating in Malaysia are subject to their different accounting frameworks, that are, old Financial Reporting Standards (FRS), private equity reporting standards (PERS) and Malaysia Financial Reporting standards (MFSR). The MFRS has only achieved congruence with the IFRS standards and is presently implemented only by the publicity-listed companies in Malaysia (Dignah et al., 2016). As such, it can be said that integration of IFRS by Malaysia has increased the reliability of accounting through the use of fair value accounting approach. The FVA approach has improved the quality of disclosure by decreasing the trading risk and thereby enhancing the trading volume. The increased transparency in the business operations through the use of fair value accounting approach has resulted in improving its shareholder base and also promoting foreign direct investment. Besides, this it has helped to large extent to the Malaysia government for economic planning through improving the interpretation of the financial accounting by the regulators, businesses and professionals (Alaryan et al., 2014). It has facilitated in developing a positive business environment and improved the global competitiveness of the Malaysian business entities. Also, the FVA approach as improved the direct investment by achieving the trust and confidence of foreign investors and thereby leading to busine ss expansion. The expansion of business firms has helped in improving the job opportunities in Malaysia and thereby promoting the economic growth and development of the country (Hassan Percy and Stewart, 2006). However, the use of fair value accounting in the publicly traded companies is regarded to be difficulties it requires gaining large number of assumptions and disclosing the information relating how they are derived. Also, there exists a possibility of underlining the overall worth of a business entity at the expenditure of assessing the performance of the management. The approach continuously assesses the influence of market fluctuations on the assets and liabilities thereby resulting in incorporating high volatility in the financial reports (Hanefah and Singh, 2012). The use of fair value approach through regarded to a better technique for predicting the realistic value of assets at a time for investors but they allow want historical value of assets for measuring the cash flows. Also, historical method helps the management in accurately determining whether it has achieved its stated operational goals and objectives. Thus, the improvement in quality of financial disclosure by the use of fair value accounting is still a topic of debate. The accounting-standard setting bodies is recommend to adopt the use of both the fair value and historical cost accounting method for achieving the stakeholder trust and confidence. Also, the regulators need to emphasize on the use of fair value accounting in private companies for promoting transparency in their business operations as well (Sidik, and Rahim, 2012). References AASB13. 2015. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB13_08-15.pdf [Accessed on: 20 September, 2017]. Alaryan, L. A., et al. 2014. The Relationship between Fair Value Accounting and Presence of Manipulation in Financial Statements. International journal of accounting and financial reporting 4 (1), pp. 221-237. Albu, C. t. l. N., N. Albu, and D. Alexander. 2014. When global accounting standards meet the local context? Insights from an emerging economy. Critical Perspectives on Accounting 25 (6), pp. 489-510. Chand, P. 2005. Impetus to the success of harmonization: the case of South Pacific Island nations. Critical Perspectives on Accounting, 16(3), pp. 209-226. Dignah, A., et al. 2016. Fair Value Accounting and the Cost of Equity Capital of Asian Banks. Jurnal Pengurusan 48, pp. 125 135. Hanefah, H. M. M. and Singh, J. 2012. Convergence towards IFRS in Malaysia: issues, challenges and opportunities. International Journal of Business, Economics and Law 1, pp. 43-47. Hassan, M. S., Percy, M.,and Stewart, J. 2006. The value relevance of fair value disclosures in Australian firms in the extractive industries. Asian Academy of Management Journal of Accounting and Finance 2 (1), pp. 41-61. He, X., T. J. Wong, and D. Young. 2012. Challenges for Implementation of Fair Value Accounting in Emerging Markets: Evidence from China. Contemporary Accounting Research 29 (2), pp. 538-562. MASB. 2017. [Online] Available at: https://www.masb.org.my/pages.php?id=19 [Accessed on: 20 September, 2017]. MISC BERHAD. 2016. Annual Report 2016. [Online] Available at: https://www.misc.com.my/media/1554/misc-ar-31-12-2016.pdf [Accessed on: 20 September, 2017]. Pensonic Holding BERHAD. 2016. Annual Report 2016. [Online] Available at: https://www.pensonic.com/phocadownload/Annual-Report/PENSONIC%20Annual%20Report%202016-Part%202.pdf [Accessed on: 20 September, 2017]. Qu, W., et al. 2012. Does IFRS convergence improve quality of accounting information? - Evidence from the Chinese stock marketing. Corporate Ownership Control 9 (4), pp. 187- 196. Sidik, M. H. J., and Rahim, R. A. 2012. The Benefits and Challenges Of Financial Reporting Standards In Malaysia: Accounting Practitioners Perceptions. Australian Journal of Basic and Applied Sciences 6 (7), pp. 98-108. Wesfarmers. 2016. Annual Report 2016. [Online] Available at: https://www.wesfarmers.com.au/docs/default-source/reports/2016-annual-report.pdf?sfvrsn=4[Accessed on: 20 September, 2017]. Woolworths Group. 2016. Annual Report 2016. [Online] Available at: https://wow2016ar.qreports.com.au/xresources/pdf/wow16ar-financial-report.pdf [Accessed on: 20 September, 2017].

Capital Formation Essay Sample free essay sample

1. WHAT IS CAPITAL FORMATION? ITS ROLE IN ECONOMIC DEVELOPMENT Capital formation is one of the major factors in economic development. It is the addition in the stock of both stuff and human capital by doing available a portion of society’s presently available resources. Capital formation consequences when some proportion of society’s present income is saved and invested in order to increase stuff every bit good as human capital. The significance of capital formation is that socitey does non use to the demands and desires of immediate ingestion but directs a portion of it the devising of capital goods. tools and instruments. machines and conveyance installations. workss and equipment. all the assorted signifiers of existent capital that can so greatly increase the efficiency of productive attempt. † Efficiency productiveness of capital In the modren economic life the importance of capital has increased. As human life depends upon circulation of blood like wise modern industrial system is running on the footing of capital. The importance of capital can be viewed from the followers: * Addition from the Natural Resources. Use of natural resources without capital is impossible. to make mines and discover minerals. development of woods and cultivation of harvest. capital is required. * Economic Development. Although goods are produced with the aid of four factors of production and individual factor of production is useless yet capital has gained an of import place in the modern production construction. The economic status of states are now judged from capital ownership. * Higher Populating Standard. Capital halps in increasing agricultural. industrial. mineral. production and services development i. e. . National Income. If the rate of addition in national income is greater than the population growing rate. populating standard improves. * Efficiency of Labour. Capital increases the efficiency of labor. Labour can increase production with capital many times. * Decrease in the Cost of Production. With the e ngagement of capital. cost of production lessenings. production additions and quality of merchandise improves and people get it at lower monetary value. Significance of Capital formation. The importance or significance of capital formation in the procedure of economic development of a state is briefly given below. * Constructing up of substructures. The edifice up of sound substructure like. route. railroads. communicating system. power etc. is an of import significance of capital formation. It greatly helps in interrupting the barbarous circle of poorness in the state. * Adoption of modern techniques of production. Capital formation helps in the usage of modern techniques and acceptance of complex methods of production for rapid growing in production in big graduated table industries. * Qualitative betterment of human resources. Capital formation plays an of import function in the qualities betterment of human resources. The outgo incurred on human resource development like instructions. wellness environmental protection. societal public assistance etc. contributes to better wellness of the people and in the entire productiveness of the state. * Proper use of natural resources. The equal volume of capital formation makes it possible to use the natural resources of a state to the maximal extent and therefore increase the rate of economic growing quickly at a higher rate. * Technological advancement. Technological advancement requires higher rate of capital formation. The technological betterments helps in acquiring more end product form the same resources. * Development of agribusiness and industrial sectors. Capital formation helps in the modernisation of agribusiness and industrial sectors in a state. The usage of latest techniques of production helps in take downing cost of production and increasing production. * Higher rate of growing in national income. Capital formation is playing an of import function in lifting the existent per capital income and GDP of the state through improved productions in different sectors of the economic system. * Expansion of economic activates. Capital formation helps in increasing the supply of goods in a state. It therefore helps in commanding rising prices and brining stableness in the economic system in the long tally. Capital formation leads to increase in effectual demand and besides in investing. * Building im port permutation industries. Capital formation helps in edifice and enlargement of import permutation industries. The decreased demand of the foreign goods helps in work outing the job of inauspicious balance of trade. * Reduction of foreign debt. Higher rate of capital formation makes a state ego sufficient in the production of goods and reduces the load of foreign debt. Beginnings of Capital Formation There are two beginnings of capital formation:( a ) Internal Sources ( B ) External Beginnings* Internal Beginnings: Internal beginnings consist of domestic nest eggs. borrowing from the populace. revenue enhancements. shortage funding and external beginnings consist of grants. loans. investing and foreign AIDSs. * Use of Billboards: 70. 5 % of entire population is populating in rural countries. 65 % of entire population is literate and due to limited banking installations people keep their nest eggs in the form of billboards. They besides keep gold and Ag in the form of decorations for the interest of their self-respect. pride and societal position. In Pakistan 4 % entire national income is kept as billboards and is non invested in productive intents. For this it is necessary to increase the banking installations in rural countries. * Through Taxs: If sufficient measure of capital is non available through voluntary nest eggs and by the usage of billboards the authorities receives su m through direct and indirect revenue enhancements for capital formation and for this intent either new revenue enhancements are imposed or revenue enhancement rate is increased. While enforcing new revenue enhancements it is necessary that it should non impact private investing nor the load of revenue enhancement is as such that it lowers the buying power of the people. It is besides necessary that revenue enhancement roll uping staff is honorable hardworking and efficient and people do non avoid revenue enhancements. * Through Borrowing: Government can increase rate of capital formation through adoption from the general populace and fiscal establishment but these adoptions should non impede the private investing. * Domestic Savingss: In developing states salvaging rate is about 12 % to 15 % while it should be raised from 15 % to 20 % of GNP. Increase in voluntary nest eggs is to curtail domestic ingestion. Rigorous enforcement of bing revenue enhancements allows the authorities to coerce nest eggs and cut down disposable income. But this method may increase nonvoluntary nest eggs and diminish voluntary nest eggs. In Pakistan the ratio of salvaging to GNP is approximately 16 % which is really low. * Public Borrowing: Government borrows from the persons. by selling them its securities through cardinal bank. * Restriction on Consumer’s Imports: Restriction on imports will increase the nest eggs of the persons and this addition in nest eggs will increase the rate of capital accretion. To restr ict ingestion through rising prices is besides unsafe for development procedure. * To Remove Cloaked Unemployment: To take cloaked unemployment is another manner to increase capital formation. These unproductive workers can be employed on undertakings e. g. Roads. irrigation and building with the nominal sum of capital. A displacement of labor from agricultural sector to industrial sector. would do possible higher rate of development. It is a hard attack as it involves the preparation for new occupations. extra capital equipment houses and other overhead capital. In agribusiness sector there is cloaked unemployment equal to 20 % . Capital formation can be increased by taking cloaked unemployment in rural sector. These unproductive workers can be employed on large undertakings like roads. irrigation and building etc. with nominal investing. It will increase the income degree of the people in rural sector. This technique will increase production and there will be no danger of rising prices. * Deficit Financing: Deficit funding is regarded an of import beginning of capital formation. In the developed states this method is used for increasing effectual demand and guaranting co ntinued high degrees of economic activity. In the less developed states. it is used for bring forthing nest eggs by triping unemployed or underemployed resources. If capital is non available through traditional beginnings the authorities borrows from the Central Bank. Central Bank issues currency notes for this intent without any warrant which is called shortage funding. But this procedure is non free from danger because it creates rising prices. if supply of goods and services does non fit the bing demand. If capital is non available through traditional beginning. the authorities borrows from the Central Bank. Central Bank issues currency notes for this intent without any warrant which is called shortage funding. But this procedure is non out of danger because it creates rising prices if supply of goods and services does non fit with economic activity. * External Beginnings: If internal beginnings are deficient so rate of capital formation can be increased through external beginnings which include the undermentioned: * Foreign Aid and Loans: In present times some of the states receive assistance loans for development coders and for other long term undertakings. These AIDSs and loans can be received from authoritiess. international fiscal establishments and other pool states. But these AIDSs and loans should non be conditional and the rate of involvement should be low. * Foreign Investment: Some of the International fiscal bureaus have invested in Pakistan and have provided services of trained individuals to increase the capital formation. * Decreasing Consumer Goods Imports: Foreign exchan ge can be saved by diminishing import of consumer goods and the saved foreign exchange can be used for the import of industrial natural stuff. machinery and modern engineering.