Investment Banking Essay

â€Å"A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations. Investment banks also provide guidance to issuers regarding the issue and placement of stock†. Investment banking involves raising money (capital) for companies and governments, usually by issuing securities. Securities or financial instruments include equity or ownership instruments such as stocks where investors own a share of the issuing concern and therefore are entitled to profits. They also include debt instruments such as bonds, where the issuing concern borrows money from investors and promises to repay it at a certain date with interest. Companies typically issue stock when they first go public through initial public offerings (IPOs), and they may issue stock and bonds periodically to fund such enterprises as research, new product development, and expansion. Companies seeking to go public must register with the Securities and Exchange Commission and pay registration fees, which cover accountant and lawyer expenses for the preparation of registration statements. A registration statement describes a company’s business and its plans for using the money raised, and it includes a company’s financial statements. Before stocks and bonds are issued, investment bankers perform due diligence examinations, which entail carefully evaluating a company’s worth in terms of money and equipment (assets) and debt (liabilities). This examination requires the full disclosure of a company’s strengths and weaknesses. The company pays the investment banker after the securities deal is completed and these fees often range from 3 to 7 percent of what a company raises, depending on the type of transaction. Investment banks aid companies and governments in selling securities as well as investors in purchasing securities, managing invest ments, and trading securities. Investment banks take the form of brokers or agents who purchase and sell securities for their clients; dealers or principals who buy and sell securities for their personal interest in turning a profit; and broker-dealers who do both. The primary service provided by investment banks is underwriting, which refers to guaranteeing a company a set price for the securities it plans to issue. If the securities fail to sell for the set price, the investment bank pays the company the difference. Therefore, investment banks must carefully determine the set price by considering the expectations of the company and the state of the market for the securities. In addition, investment banks provide a plethora of other services including financial advising, acquisition advising, divestiture advising, buying and selling securities, interest-rate swapping, and debt-for-stock swapping. Nevertheless, most of the revenues of investment banks come from underwriting, selling securities, and setting up merg ers and acquisitions. When companies need to raise large amounts of capital, a group of investment banks often participate, which are referred to as syndicates. Syndicates are hierarchically structured and the members of syndicates are grouped according to three functions: managing, underwriting, and selling. Managing banks sit at the top of the hierarchy, conduct due diligence examinations, and receive management fees from the companies. Underwriting banks receive fees for sharing the risk of securities offerings. Finally, selling banks function as brokers within the syndicate and sell the securities, receiving a fee for each share they sell. Nevertheless, managing and underwriting banks usually also sell securities. All major investment banks have a syndicate department, which concentrates on recruiting members for syndicates managed by their firms and responding to recruitments from other firms. A variety of legislation, mostly from the 1930s, governs investment banking. These laws require public compa nies to fully disclose information on their operations and financial position, and they mandate the separation of commercial and investment banking. The latter mandate, however, has been relaxed over the intervening years as commercial banks have entered the investment banking market. An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client’s agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities. Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass–Steagall Act) until 1999 (Gramm–Leach–Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation. There are two main lines of business in i nvestment banking. Trading securities for cash or for other securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) is the â€Å"sell side†, while dealing with pension funds, mutual funds, hedge funds, and the investing public (who consume the products and services of the sell-side in order to maximize their return on investment) constitutes the â€Å"buy side†. Many firms have buy and sell side components. An investment bank can also be split into private and public functions with a Chinese wall which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information. An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to Securities & Exchange Commission (SEC) and Financial Industry Reg ulatory Authority (FINRA) regulation. Investment banking is a field of banking that aids companies in acquiring funds. In addition to the of new funds, investment banking also offers advice for a wide range of transactions a company might engage in. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. In the United States, it was illegal for a bank to have both commercial and investment banking until 1999, when the Gramm-Leach-Bliley Act legalized it. Through investment banking, an institution generates funds in two different ways. They may draw on public funds through the capital market by selling stock in their company, and they may also seek out venture capital or private equity in exchange for a stake in their company. Investment bankers give companies advice on mergers and acquisitions, for example. They also track the market in order to give advice on when to make public offerings and how best to manage the business’ public assets. Some of the consultative activities investment banking firms engage in overlap with those of a private brokerage, as they will often give buy-and-sell advice to the companies they represent. The line between investment banking and other forms of banking has blurred in recent years, as deregulation allows banking institutions to take on more and more sectors. With the advent of mega-banks which operate at a number of levels, many of the services often associated with investment banking are being made available to clients who would otherwise be too small to make their business profitable. Careers in investment banking are lucrative and one of the most sought after positions in the money markets. A career in investment banking involves extensive travelling, gruelling hours and an often cut-throat lifestyle. While highly competitive and time intensive, investment banking also offers an exciting lifestyle with huge financial incentives that are a draw to many people. HISTORY & DEVELOPMENT OF INVESTMENT BANKING: Investment banking began in the United States around the middle of the 19th century. Prior to this period, auctioneers and merchants—particularly those of Europe—provided the majority of the financial services. The mid-1800s were marked by the country’s greatest economic growth. To fund this growth, U.S. companies looked to Europe and U.S. banks became the intermediaries that secured capital from European investors for U.S. companies. Up until World War I, the United States was a debtor nation and U.S. investment bankers had to rely on European investment bankers and investors to share risk and underwrite U.S. securities. For example, investment bankers such as John Pierpont (J. P.) Morgan (1837-1913) of the United States would buy U.S. securities and resell them in London for a higher price. During this period, U.S. investment banks were linked to European banks. These connections included J.P. Morgan & Co. and George Peabody & Co. (based in London); Kidder, Pea body & Co. and Barling Brothers (based in London); and Kuhn, Loeb, & Co. and the Warburgs (based in Germany). Since European banks and investors could not assess businesses in the United States easily, they worked with their U.S. counterparts to monitor the success of their investments. U.S. investment bankers often would hold seats on the boards of the companies issuing the securities to supervise operations and make sure dividends were paid. Companies established long-term relationships with particular investment banks as a consequence. In addition, this period saw the development of two basic components of investment banking: underwriting and syndication. Because some of the companies seeking to sell securities during this period, such as railroad and utility companies, required substantial amounts of capital, investment bankers began under-writing the securities, thereby guaranteeing a specific price for them. If the shares failed to fetch the set price, the investments banks covered the difference. Underwriting allowed companies to raise the funds they needed by issuing a sufficient amo unt of shares without inundating the market so that the value of the shares dropped. Because the value of the securities they underwrote frequently surpassed their financial limits, investment banks introduced syndication, which involved sharing risk with other investment banks. Further, syndication enabled investment banks to establish larger networks to distribute their shares and hence investment banks began to develop relationships with each other in the form of syndicates. The syndicate structure typically included three to five tiers, which handled varying degrees of shares and responsibilities. The structure is often thought of as a pyramid with a few large, influential investment banks at the apex and smaller banks below. In the first tier, the â€Å"originating broker† or â€Å"house of issue† (now referred to as the manager) investigated companies, determined how much capital would be raised, set the price and number of shares to be issued, and decided when the shares would be issued. The originating broker often handled the largest volume of shares and eventually began charging fees for its services. In the second tier, the purchase syndicate took a smaller number of shares, often at a slightly higher price such as I percent or 0.5 percent higher. In the third tier, the banking syndicate took an even smaller amount of shares at a price higher than that paid by the purchase syndicate. Depending on the size of the issue, other tiers could be added such as the â€Å"selling syndicate† and â€Å"selling group.† Investment banks in these tiers of the syndicate would just sell shares, but would not agree to sell a specific amount. Hence, they functioned as brokers who bought and sold shares on commission from their customers. From the mid-i800s to the early 1900s, J. P. Morgan was the most influential investment banker. Morgan could sell U.S. bonds overseas that the U.S. Department of the Treasury failed to sell and he led the financing of the railroad. H e also raised funds for General Electric and United States Steel. Nevertheless, Morgan’s control and influence helped cause a number of stock panics, including the panic of 1901. Morgan and other powerful investment bankers became the target of the muckrakers as well as of inquiries into stock speculations. These investigations included the Armstrong insurance investigation of 1905, the Hughes investigation of 1909, and the Money Trust investigation of 1912. The Money Trust investigation led to most states adopting the so-called blue-sky laws, which were designed to deter investment scams by start-up companies. The banks responded to these investigations and laws by establishing the Investment Bankers Association to ensure the prudent practices among investment banks. These investigations also led to the creation of the Federal Reserve System in 1913. Beginning about the time World War I broke out, the United States became a creditor nation and the roles of Europe and the United States switched to some extent. Companies in other countries now turned to the United States for investment banking. During the 1920s, the number and value of securities offerings increased when investment banks began raising money for a variety of emerging industries: automotive, aviation, and radio. Prior to World War 1, securities issues peaked at about $ 1 million, but afterwards issues of more than $20 million were frequent. The banks, however, became mired in speculation during this period as over 1 million investors bought stocks on margin, that is, with money borrowed from the banks. In addition, the large banks began speculating with the money of their depositors and commercial banks made forays into underwriting. The stock market crashed on October 29, 1929, and commercial and investment banks lost $30 billion by mid-November. While the crash only affected bankers, brokers, and some investors and while most people still had their jobs, the crash brought about a credit crunch. Credit became so scarce that by 1931 more than 500 U.S. banks folded, as the Great Depression continued. As a result, investment banking all but frittered away. Securities issues no longer took place for the most part and few people could afford to invest or would be willing to invest in the stock market, which kept sinking. Because of crash, the government launched an investigation led by Ferdinand Pecora, which became known as the Pecora Investigation. After exposing the corrupt practices of commercial and investment banks, the investigation led to the establishment of the Securities and Exchange Commission (SEC) as well as to the signing of the Banking Act of 1933, also known as the Glass-Steagall Act. The SEC became responsible for regulating and overseeing in-vesting in public companies. The Glass-Steagall Act mandated the separation of commercial and investment banking and from then—until the late 1980—banks had to choose between the two enterprises. Further legislation grew out of this period, too. The Revenue Act of 1932 raised the tax on stocks and required taxes on bonds, which made the practice of raising prices in the different tiers of the syndicate system no longer feasible. The Securities Act of 1933 and the Securities Exchange Act of 1934 required investment banks to make full disclosures of securities offerings in investment prospectuses and charged the SEC with reviewing them. This legislation also required companies to regularly file financial statements in order to make known changes in their financial position. As a result of these acts, bidding for investment banking projects became competitive as companies began to select the lowest bidders and not rely on major traditional companies such as Morgan Stanley and Kuhn, Loeb. The last major effort to clean up the investment banking industry came with the U.S. v. Morgan case in 1953. This case was a government antitrust investigation into the practices of 17 of the top investment banks. The court, however, sided with the defendant investment banks, concluding that they had not conspired to monopolize the U.S. securities industry and to prevent new entrants beginning around 1915, as the government prosecutors argued. By the 1950s, investment banking began to pick up as the economy continued to prosper. This growth surpassed that of the 1920s. Consequently, major corporations sought new financing during this period. General Motors, for example, made a stock offering of $325 million in 1955, which was the largest stock offering to that time. In addition, airlines, shopping malls, and governments began raising money by selling securities around this time. During the 1960s, high-tech electronics companies spurred on investment banking. Companies such as Texas Instruments and Electronic Data Systems led the way in securities offerings. Established investment houses such as Morgan Stanley did not handle these issues; rather, Wall Street newcomers such as Charles Plohn & Co. did. The established houses, however, participated in the conglomeration trend of the 1950s and 1960s by helping consolidating companies negotiate deals. The stock market collapse of 1969 ushered in a new era of economic problems which continued through the 1970s, stifling banks and investment houses. The recession of the 1970s brought about a wave of mergers among investment brokers. Investment banks began to expand their services during this period, by setting up retail operations, expanding into international markets, investing in venture capital, and working with insurance companies. While investment bankers once worked for fixed commissions, they have been negotiating fees with investors since 1975, when the SEC opted to deregulate investment banker fees. This deregulation also gave rise to discount brokers, who undercut the prices of established firms. In addition, investment banks started to implement computer technology in the 1970s and 1980s in order to automate and expedite operations. Furthermore, investment banking became much more competitive as investment bankers could no longer wait for clients to come to them, but had to endeavour to win new clients and retain old ones. ORGANIZATIONAL STRUCTURE & CORE BANKING ACTIVITIES: Investment banking is split into front office, middle office, and back office activities. While large service investment banks offer all lines of business, both sell side and buy side, smaller sell side investment firms such as boutique investment banks and small broker-dealers focus on investment banking and sales/trading/research, respectively. Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, an activity very important to an investment bank’s reputation. Therefore, investment bankers play a very important role in issuing new security offerings. Front Office: Investment Banking: Corporate finance is the traditional aspect of investment banks which also involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A). This may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Another term for the investment banking division is corporate finance, and its advisory group is often termed mergers and acquisitions. A pitch book of financial information is generated to market the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry, such as healthcare, industrials, or technology, and maintain relationships with corporations within the industry to bring in business for a bank. Product coverage groups focus on financial products, such as mergers and acquisitions, leveraged finance, public finance, asset finance and leasing, structured finance, restructuring, equity, and high-grade debt and generally work and collaborate with industry groups on the more intricate and specialized needs of a client. Sales and Trading: On behalf of the bank and its clients, a large investment bank’s primary function is buying and selling products. In market making, traders will buy and sell financial products with the goal of making money on each trade. Sales is the term for the investment bank’s sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on a caveat emptor basis) and take orders. Sales desks then communicate their clients’ orders to the appropriate trading desks, which can price and execute trades, or structure new products that fit a specific need. Structuring has been a relatively recent activity as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities. In 2010, investment banks came under pressure as a result of selling complex derivatives contracts to local municipalities in Europe and the US. Strategists advise external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. This strategy often affects the way the firm will operate in the market, the direction it would like to take in terms of its proprietary and flow positions, the suggestions salespersons give to clients, as well as the way structures create new products. Banks also undertake risk through proprietary trading, performed by a special set of traders who do not interface with clients and through â€Å"principal risk†Ã¢â‚¬â€risk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. The necessity for numerical ability in sales and trading has created jobs for physics, mathematics and engineering Ph.D.s who act as quantitative analysts. Equity Research: The research division reviews companies and writes reports about their prospects, often with â€Å"buy† or â€Å"sell† ratings. While the research division may or may not generate revenue (based on policies at different banks), its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. Research also serves outside clients with investment advice (such as institutional investors and high net worth individuals) in the hopes that these clients will execute suggested trade ideas through the sales and trading division of the bank, and thereby generate revenue for the firm. There is a potential conflict of interest between the investment bank and its analysis, in that published analysis can affect the bank’s profits. Hence in recent years the relationship between investment banking and research has become highly regulated, requiring a Chinese wall between public and private fun ctions. Asset Management:[pic] The asset management division manages money for institutions, such as mutual funds, and wealthy individuals. The business is divided into three sub-divisions. Asset Management Division has the responsibility to co-ordinate and facilitate in term of Strategic and Development Programme in Asset Management. Data Management, Performance Managing and Information in Asset Management. †¢ Fund Management: This division manages a number of funds, each with a different focus and strategy. For example: the asset management division may have three funds, one focused on private equity investments in emerging markets, another dealing with arbitrage trades, and yet another that buys and holds corporate debt. Clients can choose to place their money with either of these funds. Some banks, such as Bank of New York Mellon, manage exchange-traded funds that are accessible to retail investors. The bank earns revenue by charging a fee for assets under management, and sometimes by charging a commission based on returns. †¢ Private Banking and Wealth Management: The division manages banking activities of extremely wealthy individuals. Apart from providing regular banking services, such as check clearing, the division also advise such individuals on tax strategy and investments. They work closely with other parts of the asset management division to provide a comprehensive service, e.g. work with fund management to invest in different strategies. †¢ Prime Brokerage: The division deals with professional asset managers, such as mutual funds and hedge funds. Their services include executing trades on behalf of these clients, holding custody of their assets, and advising them on potential opportunities. For example: When Berkshire Hathaway (BRK) needs to buy a certain security from public markets, it uses a prime broker to buy and hold the security on its behalf. The division works closely with the Sales and Trading division. Additionally, the prime brokerage can also help its clients (hedge funds) to find investors. Middle Office: This area of the bank includes risk management, treasury management, internal controls, and corporate strategy. Risk management involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent â€Å"bad† trades having a detrimental effect on a desk overall. Another key Middle Office role is to ensure that the economic risks are captured accurately (as per agreement of commercial terms with the counterparty), correctly (as per standardized booking models in the most appropriate systems) and on time (typically within 30 minutes of trade execution). In recent years the risk of errors has become known as â€Å"operational risk† and the assurance Middle Offices provide now includes measures to address this risk. When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation. Additionally, corporate treasury is responsible for an investment bank’s funding, capital structure management, and liquidity risk monitoring. Financial control tracks and analyzes the capital flows of the firm, the Finance division is the principal adviser to senior management on essential areas such as controlling the firm’s global risk exposure and the profitability and structure of the firm’s various businesses via dedicated trading desk product control teams. In the United States and United Kingdom, a Financial Controller is a senior position, often reporting to the Chief Financial Officer. Corporate strategy, along with risk, treasury, and controllers, also often falls under the finance division. Back Office: Operations: This involves data-checking trades that have been conducted, ensuring that they are not erroneous, and transacting the required transfers. Many banks have outsourced operations. It is, however, a critical part of the bank. Due to increased competition in finance related careers, college degrees are now mandatory at most Tier 1 investment banks. A finance degree has proved significant in understanding the depth of the deals and transactions that occur across all the divisions of the bank. Technology: Every major investment bank has considerable amounts of in-house software, created by the technology team, who are also responsible for technical support. Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading. Some trades are initiated by complex algorithms for hedging purposes. Firms are responsible for compliance with government regulations and internal regulations. †¢ Principal Investing and Proprietary Trading:[pic] Investment banks have attempted to increase their return on equity by investing their own capital into certain ventures. The bank invests its own capital by taking a equity or debt stake in corporations with the aim of influencing the management. The motive is very similar to that private equity investors — the bank tries to profit by turning around companies. The bank can also take short-term positions in the market with its own capital. This is known as proprietary trading, and the bank attempts to earn a profit by correctly predicting market movements. Proprietary trading is very different from normal sales and trading operations — where the banks revenue is primarily dependent on the volume of trade it executes on behalf of its client. The notion of the bank risking its own capital can be traced back ever since banking was invented. J.P. Morgan, founder of J P Morgan Chase, was an extremely successful investor. However, in recent years, Goldman Sachs has been the leader in this field — in 2007, the bank profited greatly from the proprietary trades that it made against the sub-prime market. In many cases, the banks allow other investors to invest in such ventures (and charge a management fee). This puts them in direct competitor with hedge funds and private equity firms for both investors and investing opportunities. INVESTMENT BANKING IN THE 20TH CENTURY: In the mid-20th century, large investment banks were dominated by the dealmakers. Advising clients on mergers and acquisitions and public offerings was the main focus of major Wall Street partnerships. These â€Å"bulge bracket† firms included Goldman Sachs, Morgan Stanley, Lehman Brothers, First Boston and others. That trend began to change in the 1980s as a new focus on trading propelled firms such as Salomon Brothers, Merrill Lynch and Drexel Burnham Lambert into the limelight. Investment banks earned an increasing amount of their profits from proprietary trading. Advances in computing technology also enabled banks to use more sophisticated model driven software to execute trades and generate a profit on small changes in market conditions. In the 1980s, financier Michael Milken popularized the use of high yield debt (also known as junk bonds) in corporate finance and mergers and acquisitions. This fuelled a boom in leverage buyouts and hostile takeovers (see History of Private Equity). Filmmaker Oliver Stone immortalized the spirit of the times with his movie, Wall Street, in which Michael Douglas played the role of corporate raider Gordon Gekko and epitomized corporate greed. Investment banks profited handsomely during the boom years of the 1990s and into the tech boom and bubble. When the tech bubble burst, it precipitated a string of new legislation to prevent conflicts of interest within investment banks. Investment banking research analysts had been actively promoting stocks to investors while privately acknowledging they were not attractive investments. In other instances, analysts gave favourable stock ratings to corporate clients in the hopes of attracting them as investment banking clients and handling potentially lucrative initial public offerings. These scandals paled by comparison to the financial crisis that has enveloped the banking industry since 2007. The speculative bubble in housing prices along with an overreliance on sub-prime mortgage lending trigged a cascade of crises. Two major investment banks, Bear Stearns and Lehman Brothers, collapsed under the weight of failed mortgage-backed securities. In March, 2008, the Federal government began using a variety of taxpayer-funded bailout measures to prop up other firms. The Federal Reserve offered a $30 billion line of credit to J.P. Morgan Chase to that it could acquire Bear Sterns. Bank of America acquired Merrill Lynch. The last two bulge bracket investment banks, Goldman Sachs and Morgan Stanley, elected to convert to bank holding companies and be fully regulated by the Federal Reserve. Moving forward, the recent financial crisis has weakened both the reputation and the dominance of U.S. investment banking organizations throughout the world. The growth of foreign capital markets along with an increase in pools of sovereign capital is changing the landscape of the industry. The growing international flow of capital has also opened up opportunities for investment banking in new financial centers around the world, including those in developing countries such as India, China and the Middle East SIZE OF THE INDUSTRY: Global investment banking revenue increased for the fifth year running in 2007, to a record US$84.3 billion, which was up 22% on the previous year and more than double the level in 2003. Subsequent to their exposure to United States sub-prime securities investments, many investment banks have experienced losses since this time. The United States was the primary source of investment banking income in 2007, with 53% of the total, a proportion which has fallen somewhat during the past decade. Europe (with Middle East and Africa) generated 32% of the total, slightly up on its 30% share a decade ago. Asian countries generated the remaining 15%. Over the past decade, fee income from the US increased by 80%. This compares with a 217% increase in Europe and 250% increase in Asia during this period. The industry is heavily concentrated in a small number of major financial centres, including City of London, New York City, Hong Kong and Tokyo. Investment banking is one of the most global industries and is hence continuously challenged to respond to new developments and innovation in the global financial markets. New products with higher margins are constantly invented and manufactured by bankers in the hope of winning over clients and developing trading know-how in new markets. However, since these can usually not bepatented or copyrighted, they are very often copied quickly by competing banks, pushing down trading margins. For example, trading bonds and equities for customers is now a commodity business, but structuring and trading derivatives retains higher margins in good times—and the risk of large losses in difficult market conditions, such as the credit crunch that began in 2007 . Each over-the-counter contract has to be uniquely structured and could involve complex pay-off and risk profiles. Listed option contracts are traded through major exchanges, such as the CBOE, and are almost as commoditized as general equity securities. In addition, while many products have been commoditized, an increasing amount of profit within investment banks has come from proprietary trading, where size creates a positive network benefit (since the more trades an investment bank does, the more it knows about the market flow, allowing it to theoretically make better trades and pass on better guidance to clients). The fastest growing segments of the investment banking industry are private investments into public companies (PIPEs, otherwise known as Regulation D or Regulation S). Such transactions are privately negotiated between companies and accredited investors. These PIPE transactions are non-rule 144A transactions. Large bulge bracket brokerage firms and smaller boutique firms compete in this sector. Special purpose acquisition companies (SPACs) or blank check corporations have been created from this industry.

Basic Legal Environment

Regarding the scenario the best way to go in that situation will be a partnership. The reason for that being, it cause he has little financial skills and management skills. From what I know regarding starting a business. If you do not have the skills or do not know much about the process, then you will need help starting and running the business. Everyone has their own way to of doing things so that decision it really you to you. Just make sure that you make the right one for you and your family. Abstract This paper will address the issues of sole proprietorship, partnership, and corporation. This will discuss the advantages and disadvantages for all three. This will also discuss which will be the best way to go when starting a business and why. There some advantages and disadvantages to each type of business. Depending on how much say the owner wants to have in the decision making of the business. If it was I starting a business the best would be corporation or ever better a Limited Liability Corporation (LLC). The reason for that being is that if anything happens to the business the liability does not fall back on you. There will be hard getting help with the start up cost, because with this type of business in the beginning, creditors will use individual for credit situations. Out of the three types of businesses, the best would be Sole Proprietor because the owner has 100% of all decisions and it is easy to start up, even though all debt falls back to the owner personally. This would be to the best way if you are starting up a new business. As you grow you can easily which it over to a partnership or corporation. Conclusion When starting up a business there are many decisions the make and questions to be asked. If you do not make the right one it can come back on you in the long run. I have learned a lot from starting my businesses that I have started in the past. Now I have a successful business that will go a long way.

Steve Bennett joined a company called Intuit

This paper deals with issues relating to a newly hired CEO of an existing company. The CEO incorporates his own ideas and systems into that company to change the flow of productivity. His implementations had successes and failures. It is important to note the criticism as such in order to best determine what he could have put into place. In January of 2000, an individual by the name of Steve Bennett joined a company called Intuit. Intuit is responsible for the Quicken software, and Bennett served as the company’s president and chief executive officer.There were several factors leading to the success of Intuit. First and foremost, Bennett was not without experience. He spent the past twenty-three years at General Electric and was benefited by the already in-place expertise that Intuit’s already in-place expertise. Bennett’s goal was to have the leaders at all levels of Intuit make decisions that benefited the whole company. However, twenty-four months after his ac ceptance into the company as CEO, Intuit was still struggling with this new concept and the steps Bennett implemented to reach that concept.Several tense moments developed between existing managers. One of the steps was that managers were now expected to concentrate on their own work but also on the work and development of the entire organization. In doing this, the managers were expected remain accomplished. Bennett felt that roles were unclear and not clean cut. There seemed to be no cross organizational procedures in place and he aimed to fix that. It wasn’t long before his intentions became confusing, as the primary focus and responsibility of the managers was convoluted.What formed as a result was a staggering chasm between the two parties. Chaos ensued, as employees were left to weed through new changes, more rules and altered procedures. Many employees made the choice to leave. Others were asked to leave. While it is evident that Bennett initially had a shortcoming in bringing the company together, he was able to write job descriptions and performance objectives for all his direct reports. Nonetheless, the corporate structure of Intuit was weak upon his arrival.Bennett believed in shared vision and collaborative functioning, a concept utilized successfully by other executives and praised in the business. In response to the article All the Wrong Moves, for example, critic Christopher McCormick, praises an executive for â€Å"asking the right questions of the experts in his organization†¦that would lead to more cross-functional collaboration. As a result of collaboration and analysis, Bennett was able determine key players in the organization and was also able to bring in new personnel, reshape the budget and set a new pattern for the future.Critics have argued that Bennett came in too fast and upturned the applecart too swiftly. Perhaps his changes were too liberal for an otherwise conservative operation. Or, as Hauke Moje stated in his All the Wrong Moves critique, it is necessary to â€Å"install firm management rules and build trust within the company. † However, there is no doubt that, as a result of the restructure, the company’s performance has indeed increased and numbers multiplied. Those who survived the initial turnover wave and stayed with the company were rewarded for their patience and assistance.It is necessary to state that Steve Bennett had the expertise to make real changes as well as expectations of success. While this forced some into insecurity about their jobs, Bennett was persistent. He was, as a result, successful in under-layering and transforming Intuit into a collaborative company. He didn’t surrender, even when the road looked bleak. References: Steve Bennett, CEO Intuit – webpage Harvard Business School†¦. Intuit, Inc. Transforming an Entrepreneurial Company into a Collaborative Organization Garvin, David (2006). All the Wrong Moves. Harvard Business Journal.

Unity (1918) and the Evolution of Disease Essay

Unity (1918) and the Evolution of Disease - Essay Example The evolution of the disease itself (and, indeed, any disease) unfolds in much the same way as the action in Unity, with people going through biological and psychological reactions to the illness, as the people in the town react to the disease itself. The purpose of this paper is to explore the similarities between the way a disease evolves and how the community evolved in reaction to Spanish Influenza. The community of Unity went through several changes from paranoia and fear to blame and devastation, as a disease would. The action in Unity relies on an infection metaphor in a number of ways. In the play, Kerr uses the small town itself as a representation of the Canadian national front with the influenza itself representing a German invader, as in the just-ended First World War. The fear of the disease is similar to the fear of the enemy, an interesting topic considering the historical setting of the play. Biologically, most people have a fear of becoming ill, and a further fear of death. The Spanish Influenza was likely to kill because of its virulent nature, and the fear of death here can be found in both the fear of invasion and the fear of disease. It is interesting that Kerr here combines the infection metaphor with the historical context to add further depth to the play. Infection and war have very similar ways of manifesting themselves, usually becoming worse without action . The war is a useful backdrop for an infection metaphor, because it highlights the similarities between the two. In Unity the inhabitants of the community fight against the infection in very militaristic terms, using expressions such as ‘take up arms’. In the medical world, similar lexis is used when considering how to combat disease; we ‘fight’ an infection, and ‘kill’ a fever. As an illness manifests itself, medicine becomes more useful to ‘combat’ the disease, and as a war starts, it is necessary to ‘combat’ the enemy. Kerr uses these similarities very wisely, particularly by bringing in a third concept of ‘combat’ centred on the town of Unity and their attitudes towards the Spanish flu, intricately using all three concepts in a similar way. The town of Unity, before the disease hits, has a fear and a paranoia of the Spanish Influenza, even going to such lengths to ban trains from stopping in the town and going to extreme lengths to prevent the spread. This can be compared to the more modern paranoia about the AIDS epidemic. In this case, many people that have no connection to the disease have a fear of catching it, which is a similar reaction to many diseases. Before Unity has any direct contact with the Spanish flu, extreme measures are taken to prevent the disease. There are a number of actions by governments worldwide to instil fear about the AIDS epidemic, too, which is metaphorically very similar to the actions taken by the town of Unity in reaction to the Spanish flu. It has been shown that fear of disease is one of the most common fears surrounding an epidemic (Mast, 1998), so Kerr uses this similarity wisely and accurately. The character Beatrice explains this best; ‘The town has been quarantined. Not because of illness but because of fear of illness’. The first member of the community to fall ill is Michael, a non-local. The treatment of Michael completely changes when Unity finds out he has the Spanish flu, he is treated like ‘

Does obesity reshape our sense of taste Essay Example | Topics and Well Written Essays - 750 words

Does obesity reshape our sense of taste - Essay Example ng to the results, the average-weight mice were able to taste the sweetness unlike the overweight where only a few from the sample had few taste cells hence their reaction was very weak (Hacker 1). However, not all the overweight mice gave a response to the sweetness. The results from the mice experiment clearly shows that obesity changes a person’s relation to food but it still does not explain how this happens. Relatively, Kyle goes a step further to explore this aspect by referring to past studies that analyze how obesity leads to alterations of brain and nerves that control the tongue and cells of tasting in the human system. The article states out that most of the studies consider all the above factors but none has ever discussed widely about the tongue cells; those that interact with what people eat (Hacker 1). Based on this argument, Kyle puts to light that the taste cells are the first to encounter the effects of obesity, which is evident from the findings from the journal that the overweight mice had minimal taste cells affecting their response. As part of the conclusion, the article states out that the explanations given from most of the studies lack clarity on how changes in taste embolden obesity; however, one clear thing is th at most overweight people have an extreme craving for sweet and salty food yet average or slim people detect the stimuli of such food better. Largely, a cause for this might be the fact that the overweight mice consume more sweets than the average weight mice to get an equal satisfaction of the sweetness. Resolutely, the article encourages a study of the topic because establishing a clear relationship between sense of taste, plumpness and desire for food would form a good platform for coming up with new strategies that encourage healthier diets (Hacker 1). Additionally, an utter comprehension on how the taste cells increase or decrease creates an opportunity to reverse the process or even treatment especially due to the factor

Sociology - Written Review (1000 words) - PREMIUM WRITER NEEDED MAJOR Essay

Sociology - Written Review (1000 words) - PREMIUM WRITER NEEDED MAJOR IN SOCIOLOGY - Essay Example l personage who offers them his intentions, his sentiments, rather than his acts, far their consumption.† (1977: p 261) He also emphasises on the nature of and need for the intimate relationships among the individuals by making a comparison of present-day intimate socio-cultural relations with those of the past. The writer vehemently sustains the very fact that the modern man takes intimacy as the ethically beneficial act, a source of personality development and the way to overcome social evils from the environment. This type of philosophy and the desire for solving the individual problems through moral values may put the very meanings of intimacy in serious jeopardy. â€Å"This ideology of intimacy†, Sennett declares, â€Å"defines the humanitarian spirit of a society without gods: warmth in our god.† (1977: p 259) The feelings of alienation in the past have given birth to the present day intimacy. The writer is of the opinion that reckoning the past memories brings disappointment and remorse, and pushes man to perform something wrong in utter remorse; but it should not be the only mania to be recollected from the past; rather, a comparative analysis of the olden days is highly supportive in detecting the quintessence of customs, norms, mores and traditions prevailing in the contemporary times. In addition, such analyses facilitate the individuals alter their life style accordingly, as the distances between the individuals have left indelible imprints on them on the one hand, and have made them learn how to go closer to family, friends and relations on the other. â€Å"The past†, Sennett views, â€Å"built a hidden desire of stability in the overt desire for closeness between human beings.† (1977: pp 259-260) The people witnessed inadequate approach towards interaction even with the close relations during 18th and 19th centuries, particularly during the last deca des of the Victorian Era, which brought untoward modifications in socio-cultural unit. Hence, people

Construction Projects Funding Sources Essay Example | Topics and Well Written Essays - 1250 words

Construction Projects Funding Sources - Essay Example The researcher states that the American Recovery and Reinvestment Act (ARRA) has outlined special requirements which are to be adhered to in construction projects. All public construction contracts must contain these requirements so as to enable the funding of these construction projects. The applicable state construction contract rules should be adhered to in acquiring contracts for the projects funded under the ARRA. The following are some of the ARRA requirements; all the workers employed by contractors should be paid at rates that are not less than those that other workers doing similar projects in the same locality. The Buy American Act; all the construction materials being used in the construction projects of public property should be manufactured in the country. The construction contract will be terminated if these rules will not be adhered to. ARRA is always strict that these funds should be committed to the projects fully. In contract funding, there is a wide variety of fund ing methods. One of the funding sources is through the use of Cash reserves. This is money that is deposited in the bank accounts of clients. A client can fund a construction project through the use of short-term bank deposits in form of savings or fixed deposits, cash deposited in bank accounts in the form of savings or money that was invested in the money markets and treasury bills. Money market instruments are financial instruments that are given by banks and other financial institutions or from the government. These instruments can vary from treasury bills and certificates of deposit that are thought to be of very low risk. Most of these instruments have low returns, but, at the same time, they are very safe since they are supported by the state and reputable institutions. A client might have invested in the money markets, hence, if the client wants to fund a construction project, then the client will have to sell the treasury bills or certificate of deposits and use the cash ac quired to develop his/ her construction projects.

The Role of the Clinical Nurse Specialist as an Advance Practice Nurse Research Paper

The Role of the Clinical Nurse Specialist as an Advance Practice Nurse - Research Paper Example The operational scope of clinical nurse specialists is wide, and this offers them a wide scope of coverage in their service delivery. The spectrum of operation includes dealing directly with patients, nursing personnel and the wider organizational structure of management concerned with issues of policy formulation and research implementation. The clinical nurse specialists may thus participate in the direct care of patients or engage in indirect care processes, which affect the care of a wider part of the patient population. Therefore, a clinical nurse specialist could take part in patient evaluation in one instance and in the next instance be part of a team building or overhauling a unit of healthcare professionals by making policies and recommendations on new evidence-based incorporations. The role of the clinical nurse specialist pervades the whole healthcare continuum, which includes interaction with the three important elements of the care system including the patient, nurse and system. These spheres overlap in the care continuum, and the roles of the CNS reaches all these spheres in an effort to improve nursing care and patient outcomes (Newhouse et al., 2011). The only difference in the operational set up is that the roles of the clinical nurse specialist vary subtly as s/he moves from one sphere to another in particular practice instances (Canam, 2005). Purpose of the Clinical Nurse Specialist as an Advance Practice Nurse The

Ancient Egypt Essay Example | Topics and Well Written Essays - 250 words

Ancient Egypt - Essay Example Just like any other style quality, both sculptures have a meaning to the people of Egypt. The social statue figures make a difference in the lives of the Egyptians by serving as memories of their traditions. Any portrait is made for the purposes of religion, political or social use. Hence, all the carvings have a meaning to a specific group of people that they were made for (Swetnam-Burland, 2014). Public display translates to the social position and affiliations of the people in Egypt. Mankaure and his queen portrait, for example, serve as a remembrance of the Old Kingdom royal to the people of that dynasty. The Narmer pallets represent the political and social classes of the people. Both scriptures depict power in their style. Another similarity is that the two scriptures represent the start of a new thing in Egypt. While Mankaure represents the Old Kingdom, Narmer pallets present the beginning of art.

Cell Theory and Knowledge and Understanding Essay Example for Free

Cell Theory and Knowledge and Understanding Essay Explain how the advance in technology allowed the progressive accumulation of knowledge and understanding of the cell theory The technological advancements, in the scientific field, have opened opportunities for scientists to accumulate knowledge and understanding of the cell theory and have thus provided justification to the living organisms that exist. Notably, prior to the proposal of the cell theory, limited knowledge and understanding of what humans comprised of was evident and thus the theory of spontaneous generation was brought forth. This theory, which has been disproved by Virchow in 1855, suggests that living matter arouses spontaneously from non-living matter. As a consequence of limited technology, many people believed this theory as technological inventions like the light compound microscope, which showed life, were non-existent at the time. Evidently, in 1665, Robert Hooke, an English scientist, invented his own compound microscope and observed the cellular nature of the cork. The topic of cells was brought forth and from this moment, in 1674 Leeuwenhoek viewed microscope animalcules and in 1838, Schleiden and Schwann produced the cell theory, stating that all living things are made of cells and cells are the basic unit of organisms. Moreover, the technological introduction of stains were developed and assisted scientists to efficiently see cells and their internal structures. This staining technique, as a result of technology, created a contrast between the transparent material and its background, presenting a clear image of the cell. Therefore, through the technology advancement in staining techniques, the processes of the cells and nuclear division of the cell were visible. Significantly, towards the end of the 19th century, compound light microscopes had been developed to a point where the resolving power of microscopes was diminishing, with difficulty in separating objects. The next scientific breakthrough was evident as a result of the invention of the electron microscope, in 1933, which had a magnification of up to one million times and can show detailed images of internal structures. Thus, the accumulation of knowledge of the cell theory being radical, present the idea that the advancement of technology has had a tremendous impact on the cell theory.

Code of Ethics and Safety in Engineering

Code of Ethics and Safety in Engineering Abstract With a safe product, we have no worries of using it because there is no risk that going to occur. But we must know that nothing in this world is perfect. Any accident can happen to any one of us out there. Engineer always involve themselves with design and creation of new things which demand for a good quality and safer product. Safe Design must comply with the applicable law, requires knowledge and capability, must attempt to foresee potential misuses of the product, must meet standard of accepted engineering practice and must verify every final design. After the process that being followed by the engineer themselves, so it is up to the user to use it in the right way. This project is expected to give awareness to the engineering ethic course student on the term risk, safety and accident in the real world. INTRODUCTION What can we say about Engineering Code of Ethics in this topic? To be simple, it is related to the engineers to produce products that are safe for the society. It is also important that they are the main role in preventing accidents of their invention. We must know that nothing can be 100% safe and perfect, but still engineers are required to make products as safe as reasonably possible.[1] Firstly, we must know that safety is about freedom from the occurrence or risk of injury, danger or loss. So, engineers have to follow the process or designing his product in order to make it safe as possible. Safe design is a process of hazard identification mainly at the design stage or controlling risk as early as possible to health and safety in the planning and design of products, systems or process. Through risk assessment, design option will be generated to eliminate Occupational Health Safety (OHS) hazards or to minimize OHS risks of injury to those who make the product and to those who used it.[3] In response to societal demands for safer products and workplaces, governments, businesses, engineers and others who are involved in innovation are requiring that safety be a fundamental principle in design. Design is a fundamental engineering activity. Engineer always involve in design, development and creation of new or improved products, process, systems and services. Hence, quality and safety in design should be fundamental in engineering concerns, not only to ensure that the code of engineering ethic is to be practiced but also to maintain a good reputation in engineering profession for better sense to develop products, processes and systems.[3] Safe design plays a big role in design objective, including practicability, cost and the functionality of the designed-product. Safe design is the process of successfully achieving a balance of these objectives. To ensure a total safety in a design, safe design needs an understanding of the each stage in the life of a designed product, starting with the initial conception to the end life of the product. Poor design can result in low productivity, higher maintenance, higher employment and workers compensation expenses and reduced asset life. These economic costs are in addition to human costs of injury, illness, disease and disability.[3] As we all know that accidents can always occur in anytime. It is usually happened on the user itself although the product that being used is already being design in term of safety and the usage too. It is case to case basis situation. It depends on whom to be blame. It may seem that engineers sometime bear no responsibility for any accident that happened. However, engineer must understand that the system or products that he is working on and to attempt to be creative in determining how things can be designed to avert as many mistakes by people using the technology as possible.[1] As we design something, we must also consider the manual and procedure for the use of the device or technology of the design. It is for the user itself. Engineers have to follow the design rules and in fact they have to pay the risk by designing something so that any accident can be averted. By generating the owners manual, maybe the user can use the device or the technology in the right way and it also can reduce the chances of getting any accident that can lead to death or injury. So engineers are born to help the people in the world by inventing the advance technology and designing it with the prospect of safety too. SAFE DESIGN CRITERIAS 1) Safe Design must comply with the applicable law All the design must meet their specifications and standards to ensure a good and safe design. Federal safety laws are different for each departments or industries. For example, International Maritime Organization (IMO) has an important part to play for adopting legislation for ships. IMOs safety legislation deals with the ship and passenger while The SOLAS (Safety of Life at Sea) do concern with passenger safety and with lifesaving equipment on passenger ships. While for electrical field, The National Electrical Safety Code (NESC) is a set of rules to safeguard people during the installation, operation, and maintenance of electric power lines. The NESC contains the basic provisions considered necessary for the safety of employees and the public. Although it is not intended as a design specification, its provisions establish minimum design requirements. PPL Electric Utilities Corp. (PPL) has developed design specifications and safety rules which meet or surpass all requirements specif ied by the NESC.[3] 2) Safe Design requires knowledge and capability In this case, engineers need to have and be able to demonstrate required knowledge about the design that he or she is about to build. They must have knowledge about the workplace hazards and any harmful effect because some of the design or project involves the prevention that may have potential to release hazardous material or energy. Such incidents will affect the environment such as toxic effects, fire or explosion and will drive to other consequences such as serious injuries, property damage and loss production. These are the basis possibilities that engineers must concern and implement ways to avoid any danger causes.[4] 3) Safe Design must attempt to foresee potential misuses of the product Engineers are professionally responsible for ensuring that their products or system are safe enough before they are established. They are legally bounded through law and regulations to ensure that their designs are safe from concept through disposal. To ensure a safe design, engineers must foresee the possibilities about the misuses of the products and implement ways to minimize the cautions of product misuses by the users. By adopting a safe design approach, it is possible to design-out health and safety hazards to create a design options that meet both clients need and our obligations as an engineer.[2] 4) Safe Design must meet standard of accepted engineering practice. Accepted engineering practice is a safety issues that involve fundamental ideas about how we view the world and what we believe is important and right. A designer has a responsibility to ensure that their conceptions do not put the others on risk. They cant just create the design by simply ignore insignificant risk even it consumes lots of cost. For example, it might be less important for a small house to install lightning protection but it is a must for such a large factories or tower to do so and to meet the standard of specification.[3] 5) Safe Design must verify every final design For good engineers, they must always find alternatives about how to improve their current products to improve safety effect besides implementing new ways of design. However, after designing, the products and finished devices must be tested rigorously to see whether the products are safe and meet the specifications needed. For fresh graduate engineers, they would be expected to work under the supervision and guidance of more experienced engineers, while they gain experiences. This is very important as fresh engineer will attempt to make more mistakes as they have lack of experiences.[2] DESIGNING FOR SAFETY Safety is generally interpreted as implying a real and significant impact on risk of death, injury or damage to property. In response to perceived risks many interventions may be proposed with engineering responses and regulation being two of the most common. Better safe than sorry by Bruce Erion, President of the National Broadcast Pilots Assn, a simple but crucial for designers to bear with. One version of the process for safety design, taken from the finding of Wilcox will be thoroughly elaborated. Some of the steps are including defining the problem and generate as well as analysing several solutions before implementing the design Consideration of safety should be an integral part of the design process at the various stages. Designers should assess the design as it progresses and if any significant hazard is identified the design should be altered to eliminate the hazard where reasonably practicable, or otherwise to reduce the risk where reasonably practicable [4]. As the design progresses from concept to detail, consideration of safety issues moves from general aspects to specific aspects. The most important contribution that a designer can probably make is at the concept and early design development stages of a project when project-wide and system hazards are being considered. Another important thing that an engineer needs to consider is to minimize the inherent danger in the process as could as possible. It is good if we can excluded any potential danger in our design rather that to cope with or otherwise avoided Hence, dangerous substances or reactions are replaced by less dangerous ones, and this is preferred to using the dangerous substances in an encapsulated process[3]. Trevor Kletz said that to eliminate the hazard completely or reduce its magnitude sufficiently to eliminate the need for elaborate safety systems and procedures. Furthermore, this hazard elimination or reduction would be accomplished by means that were inherent in the process and thus permanent and inseparable from it. Here we focus on the specific area of pertaining to engineering design. We believe that engineering design constitutes an interesting starting point for ethical issues in engineering, both for educational and research purposes [3]. The first step that designer need to consider is to define the needs and requirements and often involves determining the constraints. Consideration of safety should be an integral part of the design process at the various stages. Designers should assess the design as it progresses and if any significant hazard is identified the design should be altered to eliminate the hazard where reasonably practicable, or otherwise to reduce the risk. Before some design has been done, we must consider all the pros and cons before implementing every single one. We have to recognise if there any design trade off of the products. In order to build a stadium for example, Stadium A gives a more astounding structure but less safe compared to Stadium B that is very safe but the structural design is not that remarkable. Which one will we choose to build? Here, we need to generate several solutions in order to decide the best selection to choose but as a good designer, safety is always be the main priority Hence, after several solutions have been listed with their advantages as well as disadvantages, they need to be analysed. Safer products, processes and systems will result and that ultimately benefits business and society generally, now and in the long term, because it minimises injury and illness and provides for a better social and workplace environment. This step involves determining the consequences of each design solution and determining whether it solves the problem. The aspect of the design process is connected to, or brings about possible negative consequences, for people other than the designers involved; hence it is a must for engineer to test the solution whether they are safe enough before each of product has been released. Then after completing the solution testing, the design is ready to implement. In the nutshell, safety must come first in every design to avoid any unwanted accidents in the future and subsequent criminal or civil action against us RISK-BENEFIT ANALYSIS Risk-benefit analysis is the comparison of the risk of certain cases to its related benefits in the real world. Exposure to personal risk is recognized as a normal aspect of every daily routine life in human being. We accept a certain level of risk in our lives as necessary in order to obtain some particular benefits. In most of these risks one feels as though he or she have some sort of control over the real situation. For example, driving a car is a risk most people take every day. The controlling factor appears to be their perception of their individual ability to manage the risk-creating situation. However, analysing the risk of a situation is very dependent on the individual that doing the analysis. When individuals are exposed to involuntary risk or risk which they have no control, they tend to avoid the risk that they faced. Under these conditions, the individuals will favor to have the risk to be as much as one thousand times smaller than for the same situation under their pe rceived control.[7] Let us consider the adequacy of this way of dealing with uncertainty with the help of the simple conceptual model of risk management described by Figure 1. It characterises risk management as a non-monetized form of cost-benefit analysis. Figure1: simple conceptual model of risk management The model postulates that everyone has a propensity to take risks this propensity varies from one individual to another this propensity is influenced by the potential rewards of risk taking perceptions of risk are influenced by experience of accident losses ones own and  others individual risk taking decisions represent a balancing act in which perceptions of  risk are weighed against propensity to take risk accident losses are, by definition, a consequence of taking risks; the more risks an  individual takes, the greater, on average, will be both the rewards and losses he or  she incurs.[6] To make it simple, there are three kind of risk as shown in the figure 2. Figure 2: three kinds of risks Virtual risks are products of the imagination which work upon the imagination. The less conclusive the science relating to a particular risk, the more liberated are peoples imaginations. directly perceptible risks are managed instinctively and intuitively. Science illuminates many of the connections between behaviour and consequence, sometimes so successfully that previously invisible risks become directly perceptible. However estimates of such probabilities are usually of limited value to those seeking guidance about what to do in the face of uncertainty. There are at least as many problems attaching to the probability estimates as there are to the value estimates by which they are multiplied.[6] ACCIDENT Accident is an unexpected event that will be interrupt any completion of an activity, and that may be include injury or property damage. . Work accidents can occur due to unsuitable protective clothing and gear and insufficient training or non training. Injury can also be caused by careless co- workers and poor lighting. The employers should provide safe place of working, safe system of working and safe methods of working. When the accident was investigated, the important part is to find out what is the causes of the accident. It will use as a guideline in order to prevent similar accident in the future. The objectives of the investigation accident is actually to find out the facts that can guide to take the actions and not to find the fault. The investigation of the accident can be conducted by someone who have experienced in accident causation and have experienced about investigation technique. Besides that, the person must be have a knowledgeable about the working process or condi tion, the procedures and the person involve.[1] Most of the accident happen maybe because of some human error or else. For example, when doing the investigation, the accident is occur due to the worker carelessness. The accident happen still must be to investigate if there are not involve any injury or property damage because any hazards can be corrected for in the future apply. Accident can be considered into a several type which is procedural, engineered and the systemic. For procedural accident, it is the most common happen and it will give the someone to make a bad decision or choice and will not follow the established procedures. The procedural accident are quite well to understood and can be minimize with the appropriate way for example with the given training to the workers, more supervision, and must have laws or regulations .For engineered accident, it caused by flaw in the design. Failures in the choice of material, devices not operating properly, devices or parts not operating well under all circumstances. Engineered failure should be anticipated in the design stages and should be caught and corrected during testing. However, it not always to anticipate in every condition that will be encountered, and sometimes testing doesnt occur over the entire range of possible operating condition. Engineered accident cam be understood and alleviated as more k nowledge is gain through testing and actual experienced in the field.[1] For systemic accident, it is quite hard to understand and not easy to control it. They are characteristic of every complex technologies and the complex organizations that are required to operate them. For example in airline industry which have a very complicated system that involve many working people including baggage handler, machine, pilot, and so on. In designing some project, there are so difficult to detect any systemic accident since there are many small and seemingly insignificant factor that can be considered. As the designer and engineer, we suppose to understand the complexity of the system working and try to design something which the accident occur can be minimized. CASE STUDY CASE STUDY FOR SAFETY DESIGN Case Study 1 Safe Design: Employee received electric shock while trying to adjust damaged connector linking coin operated box to photocopier. 50mm connector jutting out at 90o on side of copier unsafe workplace-equipment layout obstructing access to electrical power outlet Preventive Actions Reopen case worksite preventive / brainstorming session with staff thru process of consultation, hazard ID, risk control measures. Re-layout photocopier and book shelf Case Study 2 Safe design: Nov 2004 Exhaust fumes from diesel engine at basement got into the air conditioning intakes on Floors 4 to 7, building was evacuated. When building was first built, there was no restriction to exhaust ventilation. With development, adjacent buildings were causing environmental restriction to existing exhaust ventilation systems, creating unsafe and uncomfortable workplace environment! Corrective action: Building owner to fix Preventive Actions: Development Act LG admin controls BCA building regulations controls Building Designers responsibility Case Study 3 Safe design: Jan 2005 Maintenance worker received electric shock after coming into contact with an LIVE evaporative cooling system isolation switch filled with water. Cause: Water droplets from the filter pad splashed onto the fan-motor power cable and gradually gained entry into the conduit and switch housing through gravity feed. Safe Design Consideration: Install a 90o elbow facing downwards at the cable entry point from the inside of unit to create the lowest dip point by design. Sealing the conduit entry point with silicone rubber or equivalent may not provide a permanent  barrier. CASE STUDY FOR ACCIDENT Case Study 4: Collapse of Stadium Terengganu Image of Terengganu Stadium Collapse In 2 JUNE 2009, the Stadium of Terengganu collapse after one year of being built. It was officially opened by the Yang di-Pertuan agong sultan Mizan Zainal Abidin. The roof of the stadium is named after him in Gong Badak, Kuala Terengganu collapsed in early morning of 2 June 2009 and causing damage to the few cars that was park in the vicinity. Fortunately no one was injured in this accident. The frame structure of the roof of the 50,000-seat stadium came crashing down around 7.30 am and none of the stadium staff were at the premises yet. 60 percent of the roof at the stadium that was built at a cost of RM270 million and opened on 10 May 2008, collapsed, including that above the royal box at the grand stand. Overall damage was estimated at RM35mil. Meanwhile, even after the debris from the 2,500-tonne roof has been cleared, the Terengganu government is  unable to say if the stadium is safe  as the impact of the collapse is not known. Some causes of the collapse of this new stadium were identified. It is maybe because of components used and work quality did not meet the specifications; design factor was not appropriate; roof was not constructed properly; quality control was not carried out at the project site; weak supervision during the construction process; lack of skilled workers; and shortage of experts and experienced consultants. A notice has been issued to the contractor to repair the 50,000-seat Sultan Mizan Zainal Abidin Stadium which is the biggest stadium in the East Coast but no response so far[9]. Case Study 5: The Crash of Valujet Flight 592 Image of Valujet Flight 592 In May 1996, Valujet Flight took off from Miami International Airport, heading for Atlanta. Theis Valujet Flight offered cheap fares to Florida and other popular destinations. It cost savings were achieved in part by hiring other companies which is Sabre Tech to perform many of the routine operations that keep an airline flying including the routine task of replacing oxygen generator canisters in some of its DC-9s. The canisters are located above the passenger seats and are used to provide oxygen to the passengers through masks should the cabin pressure somehow lost. The canisters contain a core of sodium chlorate, which is activated by a small explosive charge. This small explosion is initiated when the passenger pulls the oxygen mask toward herself. A chemical reaction within the canisters liberates oxygen, which the passenger breathes through the mask. During use, the surface temperature of the canister can be as high as 500F, which is normally not a problem, since the canister is well ventilated. To ensure that the canister will operate properly when needed, the oxygen generator canisters must be replaced periodically. Valujet maintenance rules made it clear that when the canisters are removed, a bright yellow safety cap must be installed on them to ensure that the explosive charge is not inadvertently set off. Unfortunately, Sabre Tech didnt follow this rule while performing this work. Instead, tape was applied where the caps should have been gone, and the canisters were placed in five cardboard boxes and left on a shelf in the hangar. However, two of the Sabre tech mechanics marked on the paperwork that the caps had been installed and signed off on the job. Within minutes after leaving the runway, the DC-9s electrical system started to fail and the cockpit and passengers cabin began filling with smoke. The pilots immediately called the Miami tower for permission to return and began to descend and turn back toward the airport. However, the situation becomes worsened because of fire started melting the control cables and the pilots become shrouded in smoke. The plane suddenly banked sharply and descended rapidly. The descent was so fast and causes the traffic control radar in Miami no longer able to register an altitude for the airplane. Amazingly, either through the efforts of the pilot or because the autopilot come back on, the plane becomes leveled off again. The airplane was now at only 1000 feet above the ground. The air traffic controllers in Miami radioed the pilots and attempted to send the aircraft to the closer airport at Opa Locka, Florida. Instead, the plane was rolled sharply to the right and facing nose down crashed into the Everglades. The two pilots, three flight attendants and 105 passengers on board were killed instantly in this accident. The subsequent investigation into this accident indicated that the fire was caused by the accidental firing of at least one of many chemical oxygen generators that were being carried in this plan to send back to Valujet headquarters in Atlanta. This chemical oxygen generator is the canister that had been removed from another Valujet airplane. The heat generated by this canister caused a fire in the cargo hold beneath the cockpit that ultimately brought this plane down. The investigation showed that this accident is not a flow in the airplanes design, but rather was attributed to a series of the oxygen canisters. These canisters were improperly secured and supposedly shouldnt have been on the airplane at all. One of the most important duties of an engineer is to ensure the safety of the people who will be affected by the products that he designs. As we have seen, all of the codes of ethics of the professional engineering societies stress the important of safety in the engineers duties [1][8]. CONCLUSION There are so many small insignificant factors that engineer doing that occur the accident. It may seem that the engineer has no responsibility and not alert about the law of safety and regulation. However, the engineer must understand and learn the complexity and the system that he is working on and also to be creative in determining how things can be design to avoid the accident happen again. Many of the risks can only be expressed by probabilities and no more educated guesses. Furthermore, there are synergistic effects between probabilities especially in a new and innovative design. Because of that, the engineer must design a product as safe as possible. Base on the designing for safety, the risk can minimize much more easierThe risk can minimize if the engineer spending more time to recheck the design cycle before sell it. It is because of to make sure that the product safe to use. Even though the price quite expensive, especially in the design cycle before the product has been built or is on the market, but the engineer must make sure that the product have a safety prevention and high quality. The prudent and ethical thing to do is to spend as much time and expense the design correctly so as to minimize future risk of injury and civil actions. The method to help analyze and to determine a project to proceed is risk benefit analysis. This method can summarize that the only ethical way is to implement risk-benefit by sharing the benefit between the engineer and society. As a conclusion, the product not surely 100% safe, but the engineer must design a product more effectively and follow the ethical law as a guideline.

Impact of the Internationalisation of Renminbi (RMB)

Impact of the Internationalisation of Renminbi (RMB) Impacts of the Internationalisation of renminbi (RMB) on global economic order Bryan Tan Xian Zhen China is currently the largest goods trading nation and has the second largest economy in terms of GDP after United States (US). Goldman Sachs in 2011 stated that China could overtake US in terms of GDP as earliest as 2019.In the following essay, I will like to focus more on the positive impacts of China’s currency, renminbi being internationalised and the effects on the prevailing economic order which US is leading the pack. A country’s currency which has â€Å"reserve currency† status will be able to influence the global economy and politics which also in turn reflect its global strength. Since financial crisis 2009, Chinese government started to promote more eagerly and widely the internationalisation of renminbi which is currently not fully convertible yet. Internationalising the currency means renminbi will be used as a medium of exchange across China’s borders and as the store of value as a reserve currency. We must acknowledge that there will be positive impacts from the internationalisation of renminbi. Nevertheless, internationalisation of renminbi will also caused negative repercussions namely on current global economic order as spill-over effect. One of the negative impacts is that China’s exports will become less competitive and relatively less cheap as renminbi is prone to revaluation if the currency is internationalised. China’s current account may deteriorate and trade surplus will decrease. Besides, liberalisation of China’s capital market by internationalising the renminbi could lead to massive amount of inflow or outflow of capitals which will destabilise the economy and being vulnerable to global speculative attacks which caused the Asian Financial Crisis 1998. Drastic and rapid financial reforms like internationalisation of renminbi could also risk the internal stability and the governing position of communist party of China (CPC) as China’s local state owned enterprises (SOE) will suffer the most since they over rely on the state regulated low renminbi exchange rate, this could possibly create a downward spiral when SOEs start to lay off their workers to reduce cost. On the other hand, renminbi being internationalised will have positive impacts on the world economy and enhance China’s position in the global economic order. China could embrace the opportunity as the world largest trading nation by internationalising renminbi. Presently, renminbi is underutilised with only 0.24% world payment settled in renminbi (CNY) against its importance in world trade which China accounts 11.4%. With renminbi being more widely used in cross border trades, it facilitates more business transactions and trades with China’s onshore companies and the rest of the world; this will also lead to more capital inflow and foreign direct investment from abroad which are beneficial as fund for economic growth. For example, small medium enterprises (SME) in China benefit most since they can receive better rate of loans as well as more capital to expand their business while acquiring better equipments which will induce the economic productivity in long run. Moreo ver, cross border trade settlement also prevent excessive foreign exchange cost and risk due to fluctuation in the foreign exchange open market. To illustrate, recently People’s Bank of China had expand the clearing and settlement of renminbi payment facilities to Frankfurt and London which promote more business transactions in Europe trading zone and more convenient to the corporations. Therefore renminbi being an international currency, could prevent China falling into middle income trap as a result of rising minimum wages, less competitive exports and less growth in productivity, by promoting the ease and convenience of investing and trading with China. This will in turn strengthened or at least maintained the position of China being one the leading power in the global economic order. Currently, US dollar has been shaping the global economic order as the dominant reserve currency for the last three decades which account approximately 60% of total foreign exchange reserves of countries. However since the collapse of Bretton Woods System 1971, US dollar is just a fiat money which is inconvertible to commodities such as gold. Thus, US dollar is vulnerable to lose its dominant reserve currency status particularly when the people lost confidence of its value due to the huge injections of US dollar into the market by the US Federal Reserve to ease the recession which in long run it might cause hyperinflation. This incident had make renminbi as a possible alternative to US dollar as a store of value in the route to become the next world key reserve currency which provides people with more choice and liquidity. Commodity is essential for every country’s economic growth including natural resources such as steel, natural gas and petroleum which are mostly linked to US dollar. Some also refer US dollar as petrodollar since members of OPEC (Organisation of the petroleum countries) are require to trade petroleum for US dollar, this in turn create a constant demand for US dollar regardless of US domestic economic condition since most countries need to import petroleum and this further reinforce US dollar status as the world reserve currency. However, USA had taken the opportunity to issue more debt denominated in USD and run large budget deficit without devaluing it drastically in view of US dollar being the â€Å"petrodollar†. Besides, US dollar tends to fluctuate more lately as the US economy is still in recession with high unemployment rate and weak domestic spending. As a result, companies and countries are force to hedge against the US dollar or even the commodity price; this i n turn caused higher transaction cost for hedging purposes and also less positive economic outlook which lead to lower business investment in the future. So, actually China could exert its power as a global economic powerhouse by permitting the trade of natural resources particularly with Africa to be settled in renminbi. China’s check and balance action could benefits itself and other countries by urging US policymakers to be more sensitive with the spill-over effects caused by their decisions and also strengthening China’s position in current global economic order. Despite, the Chinese government begun to promote vigorously the internationalisation of renminbi, currently China do not appear to possess the huge appetite to make renminbi as the next sole dominant reserve currency by replacing US dollar. Instead some experts believed that Chinese government will prefer to challenge the current global monetary system by having renminbi as one of the key reserve currencies alongside with Euro, Sterling Pound and Yen which will affect the current global economic order by strengthening the economic position of countries who are in a favourable situation due to this outcome while restraining the global economic influence of USA. Actually if Chinese government decided to carry out this plan, they could enjoy more benefits by having multiple currencies comprising equally in the total foreign exchange reserves of countries without bearing the huge sole responsibility of being the only dominant reserve currency. In addition, with China’s lack of strong sustainable economic growth in the coming years, it is unlikely for renminbi to claim the reserve currency status easily, as a result of China’s aging working population, growing income inequality among the lower middle class and the upper class, insufficient energy and food resources, rising political tension with its’ neighbouring countries like Vietnam and Japan due to disputable islands. Therefore, it is more practical for China to aim to become one of the key reserve currencies instead of the sole dominant reserve currency which will automatically enhance their role in the current economic order with more bargaining power at the world stage. In short, it is not difficult to write off the possibility of renminbi in replacing US dollar solely as the next largest global reserve currency since China having to face many challenges ahead ranging from regional political tension to China’s internal social unrest. However, China’s renminbi is more likely to become a international currency and also one of the key reserve currencies alongside Euro Pound in the coming years, if the Chinese government continue to advocate the development of renminbi internationalisation with credible commitment at the expense of China having cheaper price of exports. As a result, internationalisation of renminbi will have more positive impacts on the current economic order by being the medium of exchange as a international currency which facilitate and ease the trade settlement of goods and commodities with more liquidity. Besides, renminbi can be used to store the value of assets as one of the world key reserve currencies and also pro vide alternative to the people. Thus, Internationalisation of renminbi had established China as a force to be reckoned with, in the global economic order. (1405 words) References: Dr Zha Xiao gang, â€Å"The International Political Economy of Renminbi Internationalization†, Fifth session, IISS Seminar, 2012, pages 1-10. SWIFT, â€Å"RMB internationalisation: implications for the global financial industry†, white paper, 2011, pages 2-4. Richard Fisher, â€Å"Internationalization of the Renminbi†, report on the conference, 2012, pages 3-11.

Feminism in Uncle Toms Cabin by Harriet Beecher Stowe Essay -- Femini

Feminism in Uncle Tom’s Cabin  Ã‚   While Harriet Beecher Stowe’s Uncle Tom’s Cabin overtly deals with the wrongs of slavery from a Christian standpoint, there is a subtle yet strong emphasis on the moral and physical strength of women. Eliza, Eva, Aunt Chloe, and Mrs. Shelby all exhibit remarkable power and understanding of good over evil in ways that most of the male characters in Stowe’s novel. Even Mrs. St. Claire, who is ill throughout most of the book, proves later that she was always physically in control of her actions, however immoral they were. This emotional strength, when compared with the strength of the male characters, shows a belief in women as equals to men (if not more so) uncommon to 19th century literature. In 1848, the first ever Women’s Rights convention was held in Seneca Falls, New York. Though Stowe did not attend, many of those who were strong in the abolitionist movement, such as Fredrick Douglas and Amy Post, did. Thus a correlation was drawn between the abolitionist movement and women’s rights. Both fights were about equality, so naturally those who were supportive of emancipation were supportive of gender equality as well. Uncle Tom’s Cabin not only follows the life of Uncle Tom, spanning from the time he is sold from his longtime master until Tom’s death, but also follows the life of Eliza, another slave who lives on the Shelby plantation with Tom as the novel begins. But unl... ...Topsy, but help her repent as well, for Topsy later says, "I will try, I will try; I never did care nothin' about it before" (94). Uncle Tom’s Cabin contains almost as basic of a moral as any story could; love has no physical barriers. The goal of Stowe’s novel is to show that in terms of race. But at the same time Stowe shows it in terms of gender as well. By making the female characters more morally righteous than the male characters and displaying the women’s physical feats more overtly than the men’s, Stowe enables the audience to see a side of women relatively unseen in 19th century American culture. Works Cited Stowe, Harriet Beecher. "Uncle Tom’s Cabin." New York: Grosset & Dunlap, 1927    Feminism in Uncle Tom's Cabin by Harriet Beecher Stowe Essay -- Femini Feminism in Uncle Tom’s Cabin  Ã‚   While Harriet Beecher Stowe’s Uncle Tom’s Cabin overtly deals with the wrongs of slavery from a Christian standpoint, there is a subtle yet strong emphasis on the moral and physical strength of women. Eliza, Eva, Aunt Chloe, and Mrs. Shelby all exhibit remarkable power and understanding of good over evil in ways that most of the male characters in Stowe’s novel. Even Mrs. St. Claire, who is ill throughout most of the book, proves later that she was always physically in control of her actions, however immoral they were. This emotional strength, when compared with the strength of the male characters, shows a belief in women as equals to men (if not more so) uncommon to 19th century literature. In 1848, the first ever Women’s Rights convention was held in Seneca Falls, New York. Though Stowe did not attend, many of those who were strong in the abolitionist movement, such as Fredrick Douglas and Amy Post, did. Thus a correlation was drawn between the abolitionist movement and women’s rights. Both fights were about equality, so naturally those who were supportive of emancipation were supportive of gender equality as well. Uncle Tom’s Cabin not only follows the life of Uncle Tom, spanning from the time he is sold from his longtime master until Tom’s death, but also follows the life of Eliza, another slave who lives on the Shelby plantation with Tom as the novel begins. But unl... ...Topsy, but help her repent as well, for Topsy later says, "I will try, I will try; I never did care nothin' about it before" (94). Uncle Tom’s Cabin contains almost as basic of a moral as any story could; love has no physical barriers. The goal of Stowe’s novel is to show that in terms of race. But at the same time Stowe shows it in terms of gender as well. By making the female characters more morally righteous than the male characters and displaying the women’s physical feats more overtly than the men’s, Stowe enables the audience to see a side of women relatively unseen in 19th century American culture. Works Cited Stowe, Harriet Beecher. "Uncle Tom’s Cabin." New York: Grosset & Dunlap, 1927   

D. H. Lawrence Essay -- Biography Biographies Essays

  Ã‚  Ã‚   It is a divided issue whether D. H. Lawrence is to be considered a friend or a foe to the feminist movement. On one hand, he advocates an egalitarian man-woman relationship, on the other, his notion of equality seems rather subject to qualification. His reference to the ideal monogamous partnership as "phallic marriage" (Spilka 7) is certainly a cue that must be taken up. Why is marriage "phallic" unless the phallus is privileged in the expression of sexuality? (de Beauvoir 205) The idealisation of gender relationships leads to an essentialisation of gender, which is itself at the source of patriarchal domination. Is Lawrence really a liberator of sex, or only of patriarchal sex? Does he grant more independence to the women in his novels than his predecessors or just a little more freedom within the confines of established expectations? The answers to these will be that Lawrence is not a raving misogynist (as has been suggested), but is certainly a long way from perfectly enlightened.    Rupert Birkin, the Lawrentian leading male of Women in Love, extols a philosophy of "star-equilibrium" in which the partners of a love relationship remain separate and individual, not blurred into one another, but together in knowledge of their difference. (WIL 230)    "Why not leave the other being free, why try to melt, or absorb, or merge? One might abandon oneself utterly to the moments, but not to any other being." (WIL 269) These "moments" are where one falls out of personal concern and into the rhythm of the organic universe. "Because of his belief in the life-force, he has generally been called a 'vitalist.' But 'organicist' would come much closer to the mark, since the goal of life, for Lawrence... ...over. London: Mandrake Press, Ltd., 1996. _ _ _. Letters to Bertrand Russell. Ed. Harry T. Moore. New York: Gotham Book Mart, 1948. _ _ _. Women in Love. Ware, Hertfordshire: Wordsworth Editions, Ltd., 1996. Millett, Kate. Sexual Politics. Garden City, NY: Doubleday & Company, Inc., 1970. Ross, Charles L. Women in Love: a Novel of Mythic Realism. Boston: Twayne Publishers, 1991. Spilka, Mark. The Love Ethic of D. H. Lawrence. Bloomington: Indiana University Press, 1955. Tuma, Keith, ed. Anthology of Twentieth-Century British & Irish Poetry. New York: Oxford University Press, 2001.          1[1] "The ordinary Englishman of the educated class goes to a woman now to masterbate [sic] himself. Because he is not going for discovery or new connection or progression, but only to repeat upon himself a known reaction." (Letters 33)