The Cash Flow Analysis Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3783 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? A cash flow statement is a statement which explains the various sources from which the funds are raised and the uses to which these funds are put. Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a companys financial reports since 1987, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a companys operations are running, where its money is coming from, and how it is being spent. Don’t waste time! Our writers will create an original "The Cash Flow Analysis Finance Essay" essay for you Create order Chapter 2.Structure of Cash Flow Statement The cash flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. Therefore, cash is not the same as net income, which, on the income statement and balance sheet, includes cash sales and sales made on credit. Cash flow is determined by looking at three components by which cash enters and leaves a company: core operations, investing and financing. Operations Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a companys products or services. Generally, changes made in cash, accounts receivable, depreciation, inventory and accounts payable are reflected in cash from operations. Investing Changes in equipment, assets or investments relate to cash from investing. Usually cash changes from investing are a cash out item, because cash is used to buy new equipment, buildings or short-term assets such as marketable securities. However, when a company divests of an asset, the transaction is considered cash in for calculating cash from investing. Financing Changes in debt, loans or dividends are accounted for in cash from financing. Changes in cash from financing are cash in when capital is raised, and theyre cash out when dividends are paid. Thus, if a company issues a bond to the public, the company receives cash financing; however, when interest is paid to bondholders, the company is reducing its cash. Chapter 3.Cash flow analysis -An Introduction Cash flow analysis is the study of the cycle of your business cash inflows and outflows, with the purpose of maintaining an adequate cash flow for business, and to provide the basis for cash flow management. Cash flow analysis involves examining the components of business that affect cash flow, such as accounts receivable, inventory, accounts payable, and credit terms. By performing a cash flow analysis on these separate components, one is able to more easily identify cash flow problems and find ways to improve your cash flow. When planning the short- or long-term funding requirements of a business, it is more important to forecast the likely cash requirements than to project profitability. Whilst profit, the difference between sales and costs within a specified period, is a vital indicator of the performance of a business, the generation of a profit does not necessarily guarantee its development, or even the survival. Normally, the main sources of cash inflows to a busine ss are receipts from sales, increases in bank loans, proceeds of share issues and asset disposals, and other income such as interest earned. Cash outflows include payments to suppliers and staff, capital and interest repayments for loans, dividends, taxation and capital expenditure, loans given.etc. Net cash flow is the difference between the inflows and outflows within a given period. A projected cumulative positive net cash flow over several periods highlights the capacity of a business to generate surplus cash and, conversely, a cumulative negative cash flow indicates the amount of additional cash required to sustain the business. Cash flow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, interest received etc. and then analyzing in detail the timing of expected payments relating to suppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, interest payments etc.. When this net cash flow is a dded to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained. Chapter 4.Objectives of Cash Flow Analysis Optimum Utilization of operating cash Implementation of a sound cash flow analysis and management is based on rapid generation, efficient utilisation and effective conversion of its cash resources. Cash flow is a circle. The quantum and the speed of the flow can be regulated through prudent financial planning facilitating the running of business with the optimum cash balance. This can be achieved by making a proper analysis of operative cash cycle along with efficient management of working capital. Cash forecasting Cash forecasting is backbone of cash planning. It forewarns a business regarding expected cash problems, which it may encounter, thus assisting it to regulate further cash flow management. Lack of planning results in spasmodic cash flows. For any organisation, cash is the lifeblood that keeps it the business going .That is why, Cash Flow Analysis and its management has been gaining importance with organisations that view the services as a crucial part of their corporate strategies. Managing the cost of cash There is always an opportunity cost of maintaining excess cash balance.ie. if the firm is maintaining excess cash the it is missing the opportunities of investing these funds in a profitable manner. Similarly if the firm is facing shortage of cash, then it may be required to arrange funds on an emergency basis to appropriate any imbalances in the cash flow. Therefore, cash flow analysis help in determining the appropriate cost of raising cash and the effective deployment of funds. Chapter 5.Uses of Cash Flow Analysis Cash flow analysis is used to evaluate the liquidity of a company, to find out ratios like the net present value and the internal rate of return, to act as a validating input for net income created by accrual accounting methods. A company can use a cash flow statement to predict future cash flow, which helps with matters in budgeting. For investors, the cash flow reflects a companys financial health: basically, the more cash available for business operations, the better. However, this is not a hard and fast rule. Sometimes a negative cash flow results from a companys growth strategy in the form of expanding its operations. By adjusting earnings, revenues, assets and liabilities, the investor can get a very clear picture of what some people consider the most important aspect of a company: how much cash it generates and, particularly, how much of that cash stems from core operations. Chapter 6.Process of Cash Flow Analysis I am working as a summer intern in the finance department of Motilal Oswal Securities Ltd. I am trained for managing the cash flow statement on a daily basis wherein the inflow and outflow of cash was managed and monitored. The different sources of funds with the respective uses are mentioned in brief. The process of cash flow analysis is described below. Initially we obtain the funds position by identification of sources of cash (funds) as follows: Issue of Commercial papers and Non-Convertible debentures Motilal Oswal Financial Services (MOFSL), the parent company as well as Motilal Oswal Securities Ltd, the broking arm, issue Commercial Papers and Non Convertible Debentures during appropriate market timings. These securities assist in the arrangement of funds required for funding the capital and revenue expenditure, working capital requirements and supplementing the growth operations of the company. The process of issuance and the corresponding co-ordination with NSDL , IPA ( Issuing and paying Agent), banks and subscribers is looked after by the respective department and the information of the funds availed is known and communicated while preparing the cash flow statement. We, thus, include the amount as an inflow of funds. Balances in Client Settlement accounts and own accounts with the banks, Fixed Deposits, Loan against shares, ODs, Bank Guarantees, Short Term loans The company maintains different kinds of accounts for different segments like NSE Cash segment, Own and Client Settlement Account and NCDEX Settlement Account for Commodities, NSE Futures and Options Client and Settlement accounts, BSE Client Account and settlement with different banks. These accounts facilitate effective coordination of funds obtained from the clients from the corresponding exchange as well as the companys own funds traded over the exchange. The firms own funds as well as the clients funds are available for optimum utilization at the consent of the client. Thereby these funds are reflected as an inflow in the cash flow statement. Loan facilities are provided by the banks for adequate working capital requirements especially during immediate need of funds when during the days of high market trading considerable requirement of margins in the form of cash needs to be parked in the exchanges. The concept of margins is explained further. Thereby funds available by th ese means are employed for further usage. Banks also provide non fund based facilities in the form of Bank Guarantees: A bank guarantee is an irrevocable commitment by the issuing bank to make a payment, at the request of its client, to the beneficiary specified in the bank guarantee, subject to the beneficiary filing a request with the bank to that end, and the fulfilment of the terms and conditions of such bank guarantee (conditional bank guarantee); before the expiry date of the guarantee and up to the amount specified therein. By issuing an unconditional bank guarantee, a new legal relationship is established, which is independent from the underlying transaction, whereby the issuing banks payment obligation arises subject to the beneficiary requesting such payment, irrespectively of any disagreements the parties may have regarding the fulfilment of the underlying transaction; i.e. the payment obligation arises at the time of the first call and without the need to assess the n ature of the legal relationship. For availing bank guarantee, the banks require authorised letters stamped and delivered with the necessary certificates of creditability as a part of their documentation formalities. Usually the amount of Bank guarantee (BG) is availed against different collaterals like corporate guarantee and /or personal guarantees provided by the promoters to the extent of certain percentage and the remaining in the form of fixed deposits placed with bank, shares pledged of the value after haircut of 50% .Different banks have different specifications. There exists a BG commission for usage of the bank guarantee around 1.5-5% of the amount availed as BG as against the creditability of the company in the industry .BG commission is charged upfront with the issuance, and the charge is amortised over the period of the BG. Also facility of Loan against shares (LAS) is available where loans can be availed against the pledged value of the shares owned by the firm . Overdrafts (OD) are available for working capital requirements and are charged for the period of use of OD amount. They are also availed against fixed deposits placed by the bank and any shares pledged with the bank for the same. Similarly Short Term Loan facility is provided against the collateral of FDs, Shares, and Corporate Guarantee .They are majorly used for furnishing the margin requirements of the exchange. The CASH FLOW STATEMENT also shows the position of the bank accounts with the varied details discussed above .The picture below can give a fair idea about the daily status of funds with the banks. It shows the position of funds with bank on a particular day. It shows the funds in the different accounts along with the interbank and inter account transfers in the form of RTGS, investments and redemptions. The funds obtained or utilised by way of DVP trades, CP/NCD issuance, FDR placement and high value clearing are specified in the bank position statement. Also t he exchange payin /payout for client settlements and collections obtained from the client accounts are shown; thereby the net position of the bank on a daily basis is ascertained. Client funds of Cash, F O and settlement figures are bifurcated to give the exact position of the funds that are held on behalf of clients and the own funds ,that can be further utilised for revenue generation. Funds employed in the form of margins in the exchange in the respective segment are also shown. Similarly, positions for other banks are also prepared and mailed to the banks on a daily basis. Interbank funds transfer As mentioned earlier, the company has various accounts with different banks for different purpose. As and when the fund requirement arises from one account to another or from one bank account to fund another bank account during the business conducted in the day, the corresponding RTGS( Real Time Gross Settlement ) is undertaken and request are processed through faxing of letters containing the respective instructions. Some Banks also provide the facility of auto sweep wherein the funds are transferred into accounts where there is a shortfall from accounts having surplus funds. This ensures adequate funds for immediate deployment. Money payout of funds invested in NSE and BSE: Capital segment and Futures and Options segment The companys own funds as well as those of the clients, when traded over the exchange into buying or selling of shares and other securities result in money payouts/payins and accordingly the funds available with the company increases or decreases. Particular files of communication of the same are updated from the exchanges on daily basis which assist in giving a true picture of the funds received or to be paid. They are thus updated in the cash flow statement. The settlement of Equities as prescribed by the exchange is on T+2 basis and Futures and Options on T+1 basis. Thereby the next days position of settlement with the clients and the exchanges is shown in the cash flow so as to ascertain the requirements of funds for the coming day .Accordingly the cash provisions can be planned out and money can be arranged on time. It is known as the Provision Payin/Payout for coming settlement day (Ledger Bal) Day after tomorrow and these figures are obtained from the back office systems . They are thus updated in the cash flow statement. Margin releases from the exchanges As a stock broking firm, Motilal Oswal Securities have to arrange for appropriate margins in the exchanges for the dealing of its clients in different segments like equities, derivatives and commodities regularly. These margins can be in the form of Bank Guarantee, Fixed Deposits, Cash, Shares and Mutual Funds pledged with the exchange up to a certain proportion ( limit given by the exchange to any stock broking house).They act as a collateral in the event of any default of the payin of the companys clients or the company itself as against the volume of trade conducted over the exchange. The CASH FLOW STATEMENT includes the average margins parked with the respective exchanges and the corresponding bifurcation of the margins in the form of Bank Guarantees, FDRs and cash. It also depicts the proportion of FDRs (Fixed Deposit Receipts) and shares pledged against the bank guarantees in the different banks. This is reflected in the pictures below. It helps in ascertaining the positio n of the application of the funds and helps in analysing the leverage obtained by way of borrowed funds. As the funds are released from the exchanges, they get available for further use the next day and can be invested or deployed appropriately. The following illustration gives a fair view of the margin statement. The margin report is updated on a daily basis by the concerned department and thus, the margin provisions and releases are updated in the cash flow statement. It gives a fair idea of the percent of total collateral parked with the exchange on a daily basis along with the funds actually utilised. Thus we can accordingly decide about the further deployment of funds in the exchange. Loan availed from the holding company As Motilal Oswal Securities stands as a subsidiary of the parent company, Motilal Oswal Financial Services Ltd, it is facilitated with easier loan provision facilities and funds can be availed from the parent company as and when required. Redemption of Investments in Mutual Funds As the cash flow statement is prepared, the surplus funds are invested in Liquid mutual Funds schemes of huge corpus funds and AUMs (asset under management).Cash is generated when funds that are invested are redeemed and the dividend accumulated thereon. This is generally processed on a daily basis whenever the surplus cash is ascertained. Liquid Mutual Funds enable easy liquidity coupled with less risk, as the risk is mitigated by investment into varied stocks of correlated returns by the asset management company. Arbitrage transactions Motilal Oswal Securities Ltd. has a particular department that analyses the revenues that can be made by way of arbitrage transactions. Different strategies are employed for taking advantage of the arbitrage opportunities in the capital and futures market. Generally the company deals in cash futures .Considerable profits can be booked while the deal involves less risk. The company makes revenues by way of capitalizing on the difference in the value of scrip of equity and futures over the period by employing a combination of different long and short strategies both in the cash market as well as futures market. The amount of revenue generated in the process is informed during the preparation of the cash flow statement. We thus update the amount while preparing the cash flow statement on a daily basis. DVP Institutional releases DVP known as DELIVERY VERSUS PAYMENTS arise when the company, on behalf of it Foreign Institutional Investors (FIIs) undertake the responsibility for provision of funds to the custodian bank of the FIIs when the buy or sell of the shares take place. Fund parked in with the custodian banks are released after the confirmation and are available with the company for utilisation. DVP is further elaborated in the outflow segment. Client Collections Information about the value of the trade conducted over the day and the amount accumulated is conveyed by way of collections obtained from the clients. Consolidated figures of each segment .i.e. NSE and BSE: Cash and FO is electronically communicated by the respective department and the amount is updated in the cash flow as an inflow of funds available for further utilisation. This includes the brokerage earned. After obtaining the Funds availability position, the deployment of the cash is decided. For efficient and cost effective utilisation of the cash resources, the application sources are effectively analysed and the different requirements taken into consideration are as follows: Provisions for salary, bonus, TDS, Advance Tax, Dividends, Operating Expenses Salary and bonus, TDS, Advance Tax provisions, Dividends to the shareholders and the operating expenses for every month is calculated by the accounts section and the total figure is communicated for making the appropriate provisions as and when required. Thereby funds are provided for these revenue expenditure items. Investments in Mutual funds ,fixed deposits, securities and derivatives Funds available have to be put to best possible use .Most cost effective alternatives combined with least exposure to risks result in the majority of the investments in liquid mutual funds with no entry and exit load and a diversified risk approach. Easy liquidity supports daily investments and redemptions and thereby surplus funds in good proportions are invested in the liquid mutual fund of well rated firms like Reliance, ICICI, UTI and FORTIS Mutual Funds having huge corpus funds and considerable Assets under Management. Funds not needed daily can be locked in for a longer period with the banks in the form of fixed deposits with a better rate of return and can be further utilised in for availing bank guarantees and overdrafts against the fixed deposit receipts. As per the direction from senior authorities regarding investments in securities and derivatives, appropriate provisions are made in the cash flow statement and the funds are provided accordingly. Loan Repayment Loans availed from the holding company are repaid with the surplus funds available with the subsidiary company. Accordingly the provisions are made and the position of the net available funds is prepared with the cash flow statement. Margin funding Margin funding refers to the funding of the clients portfolio by the stock broking firm upto a certain percentage .It depends on the segment as to whether the client wants to deal in equity or derivatives .The amount of Margin funding depends on the creditability of the client and their relationship with the company over the period. A certain percentage of interest is charged for the purpose of margin funding. It facilitates easier availability of funds during bullish markets when the clients indulge in vast amount of trading and require funds in excess of their portfolio value. In order to provide for margin funding, appropriate provisions are made and accordingly the transfer of funds are processed by electronic funds transfer on a daily basis. DVP funding Funds are provided for the Deliver Versus Payment (DVP) transaction entered into, by the companys trading unit. This comes under the institutional broking and distribution segment of the company. Thereby appropriate funds are reserved for funding DVP trades. DVP can be elaborated as follows: Monitored by RBI FII Governed by SEBI Guidelines CUSTODIAN BANK Indian Stock Exchange Stock Broker MOSL The above sketch represents the Indian context where a FII is required to be registered with SEBI, RBI and also needs to have an agreement with a Local Custodian as per RBI, SEBI requirements. As per RBI the amounts brought in by FII and maintained in designated account is fully-repatriable outside India including the sales proceeds. It is also important to note that an FII cannot deal in any activity directly without a Custodian to honour its trades. FII registration and monitoring is one of the most cumbersome processes in the capital market today as the FD I cap is highly regulated in our country. In spite of such constraints too the business from this segment is the highest today as compared to historical statistics. Therefore Working capital requirements are visible for funding FII orders in the form of Exchange Margins and Pay-in towards stock exchanges. Payments towards overdrafts, loans, BG commission Provisions are made for payments of overdrafts availed through the banks and the repayment of loan against the shares pledged .Payments are effected through electronic transfer BG commission towards the bank guarantee facilities provided are paid on an average monthly basis. Accordingly provisions are made for the same in the cash flow statement and the outflow is reflected. Client Payouts Funds available with the company include the deposits of the clients in their respective trading and settlement accounts with the company .As and when the net settlement takes place with the clients, the payouts are reflected and fund credited to the clients accounts. This is reflected as the outflow of funds in the cash flow statement.

A Common Question About My Parent s Nationality - 855 Words

A common question people like to ask is â€Å"Where are you from?† I’ve always wrestled with how to properly answer this question. I didn’t know if I should answer with my birth place, my parent’s nationality or the area I spent most of premature life at. My family have moved a lot over our life time, so much that people started to question if my parents where in the military moving from base to base. But they weren’t, my parents emigrated from Nigeria to America in the mid 1980’s. Their first stop in America was Dallas, Texas. In Dallas my mother gave birth to both of my older sisters. My family struggled for a well before I was born. My mother worked as a cleaning lady in a hotel and my father was an ice-cream man driver. After 7 years of the hot state which is Texas, my parents decide to go north and move to Minneapolis, Minnesota in pursuit of having better education and career options, so they could properly take care of the family. On September, 24, 1994 I was born in Children’s Hospital of Minneapolis, Minnesota, but nearly a year later my family was the road again. After I turned 1 years old, I and my family move to Tulsa, Oklahoma. We came to Tulsa because both my parents once again found better career jobs as Nurses. I spent a short amount of time in Tulsa. I started preschool at key elementary. I made good friends in my preschool but those friendships where short loved because after I turned about 4 years old, me and my family where back on the road again. This timeShow MoreRelatedThe Identity Of A Country Like The United States Of America1258 Words   |  6 Pagesidentifies you in many different ways like your nationality, culture, and your level of education.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The real question is, whether there’s a connection between language and identity. Others may disagree, but I feel that there may be a strong connection between the two. 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Li Fung free essay sample

2. Intermediaries such as Li Fung need to be paid. Why, after paying Li Fung a fee, buyers and suppliers still find it valuable to deal through an intermediary? In other words, why don’t they trade directly? Li Fung provides an interface between multiple buyers and suppliers by linking larger retailers in the developed world to a network of suppliers and factories throughout Asia.Buyers still find it valuable to deal through an intermediary because the experience and connection of Li Fung in Asia could reduce the transaction costs associated with the haggling, uncertainties and headaches as compared to buyers and suppliers bargain directly. Due to strong bargaining power over small suppliers in Asia, Li Fung has the abilities to provide both low-cost and quick, responsive sourcing. For firms that emphasize brand reputation, Li Fung strongly enforces the policy to prevent substandard quality and labour abuses. We will write a custom essay sample on Li Fung or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Suppliers pay intermediary for the access to global market because Li Fung has over 70 offices in more than 40 countries. When Li Fung encourage buyers to enter into long-term sourcing arrangements with them, it has pooled the sourcing needs of different buyers and using the pooled demands it is better positioned than individual buyers at incentivizing suppliers and also encouraging suppliers to enter into long-term arrangement. Essentially, sourcing for multiple buyers provides Li Fung with a certain flexibility in meeting the commitment to provide future business to a supplier.Why is Li Fung able to emerge stronger during the 2008-09 global economic crisis? Global financial crisis had lead to cost cutting in all industries, most multinationals, big brands and retailers. In order to slash cost, having a department in the organisation just for procurement has become unnecessary as outsourcing could well perform similar task at lower cost and better outcomes. By leveraging local k nowledge and relationship with wide range of suppliers, Li Fung able to manage supply chain of high-volume, time-sensitive consumer goods produced throughout Asia. Li Fung specializing in product sourcing could also assist retailers to manage their inbound logistics while buyers can focus more effort on their outbound logistics such as distribution channels to reach end consumers. Multinationals who set up their own buying office tend to rely on floating tenders and other competitive rituals that ensured low prices with acceptable quality. However, in a fast changing world, it is evident that there is disadvantage where by in natural a long term sourcing arrangement would restricts firms to employ new suppliers in case of a need arise.Eventually this will cause firms to become less responsive. Alternatively, Li Fung able to exploit the relational advantage of intermediation that simultaneously provide flexibility of competitive sourcing and the confidence of long-term relationship. Li Fung posses the triple As in its supply chain management competency that is considered as a competitive capability against competitors; Agility, Adaptability, and Alignment. Under external shocks, an agile supply chain can quickly react to unexpected shifts in supply and demand. Assume that, if there is any sensitive disruptions caused by a wide range of different causes such as natural disasters in one of the city in Asia which affect production of certain components. Li Fung’s complex supply chain could easily shift to any one of its other 8300 suppliers and ensure no interruption in meeting its customers’ demands. Adaptability, refers to the ability to reconfigure supply chain in response to longer term external changes. Surely, this requires regular monitoring of global trends in politics, social and technology.Providing that Li Fung owns neither factories nor is it in any business of directly retailing the vast majority of the products it sources, it has the flexibility of choosing which buyer to match to which supplier. To illustrate, if a buyer is unsatisfied with the existing suppliers’ pricing, Li Fung could provide the service to seek for more appropriate suppliers who fit buyer’s requirement. Alignment refers to the balancing both suppliers and buyers’ interests in the supply chain. Conceptually, power and trust are the two key elements to achieve alignment. Due to unequal power between firms and suppliers, a recognized and reputable intermediary like Li Fung definitely possess high bargaining power to facilitate legitimacy and efficiency of the whole supply chain. Given that it is possible that either buyers or suppliers can come from a bigger firm, Li Fung plays an important role as a neutral intermediary or third-party logistics provider to effectively balance the interests in the supply chain.

Modular Arithmetic Essays - Algebra, Computer Arithmetic

Modular Arithmetic Modular arithmetic can be used to compute exactly, at low cost, a set of simple computations. These include most geometric predicates, that need to be checked exactly, and especially, the sign of determinants and more general polynomial expressions. Modular arithmetic resides on the Chinese Remainder Theorem, which states that, when computing an integer expression, you only have to compute it modulo several relatively prime integers called the modulis. The true integer value can then be deduced, but also only its sign, in a simple and efficient maner. The main drawback with modular arithmetic is its static nature, because we need to have a bound on the result to be sure that we preserve ourselves from overflows (that can't be detected easily while computing). The smaller this known bound is, the less computations we have to do. We have developped a set of efficient tools to deal with these problems, and we propose a filtered approach, that is, an approximate computation using floating point arithmetic, followed, in the bad case, by a modular computation of the expression of which we know a bound, thanks to the floating point computation we have just done. Theoretical work has been done in common with , , Victor Pan and. See the bibliography for details. At the moment, only the tools to compute without filters are available. The aim is now to build a compiler, that produces exact geometric predicates with the following scheme: filter + modular computation. This approach is not compulsory optimal in all cases, but it has the advantage of simpleness in most geometric tests, because it's general enough. Concerning the implementation, the Modular Package contains routines to compute sign of determinants and polynomial expressions, using modular arithmetic. It is already usable, to compute signs of determinants, in any dimension, with integer entries of less than 53 bits. In the near future, we plan to add a floating point filter before the modular computation.

Compensation System of State Farm Insurance

Compensation System of State Farm Insurance Every business organization has its own philosophy, which drives it towards big success. The same is true for insurance companies that offer different types of insurance covers. Usually, the founders of any organization architect the philosophy under which it will operate.Advertising We will write a custom research paper sample on Compensation System of State Farm Insurance specifically for you for only $16.05 $11/page Learn More The inception of State Farm Insurance Company dates back to 1922 when one farmer, George Mercherle opted to work as an insurance agent because his health conditions could not allow him to continue farming. He turned out to be one of the best sales representatives for an insurance company he was working with. However, at one point, Mercherle was not happy with the company’s insurance policy to farmers. According to him, the company oppresses farmers through low insurance rates and poor business practices. Farmers paid high pre miums despite the fact that they incurred less compensation incidents and drove less kilometers that those staying in urban areas. Over time, Mercherle recommended new policies that detailed new modalities of selling insurance to farmers and city folks. Nonetheless, the employers turned down the offer and instead, told him to go and start his own insurance company. Driven by desire to offer better insurance, Mercherle and other people with same views started State Farm Insurance Company. The policyholders became the owners of this automobile insurance company and in 1928, the company started to decentralize starting from an area office in Berkeley, California. By the year 2000, State Farm had grown into a great insurance empire with over 27 regional offices and 1000 service centers all over United States and Canada. (Rhonda, 2010, p.1). The philosophy of State Farm Insurance lies in offering insurance coverage at an affordable price in tandem with flaxen claim resolution. This philo sophy has been the driving gear of State Farm Insurance Company and today, with 76,500 workers and over 16,000 insuring agents, the company posses with 67 million policies and an asset base of US$ 25 billion-making it the biggest fiscal institution in United States. The current philosophy of â€Å"Good Neighbor† is a reckoning force behind State Farm success. This philosophy has remained vital in establishing different insurance covers at affordable price to consumers. For example, under home insurance cover, State Farm insurers all types of houses ranging from single homes to condominium leasing houses. Perhaps what State Farm ought to do is to insure letting houses against burglary, defacement or conflagration in line with the philosophy.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Where fire has destroyed houses, State Farm through their Good Neighbor philos ophy, should provide alternate accommodation while awaiting repair of destroyed property. However, through this philosophy, State Farm covers all expenses arising from such disasters. (State Farm Corporate Website, 2010, p.1). Most insurance companies offer general life insurance, which does not include health. However, State Farm offers general health insurance in addition to disability and long term care insurance coverage. The philosophy of Good Neighbor that is, offering affordable insurance to consumers has seen many American homeowners receive health care insurance at a time when they need medical services most. The introduction of long term care is so far one of the best insurance coverage targeting the old, persons with disabilities, and the injured. In the current global economic downturn, underprivileged people can access health care services or health care insurance premiums at a cheaper price thanks to â€Å"Good Neighbor† philosophy from State Farm. (Case Study: State Farm, 2010, pp. 1-5). As a mode of enhancing this philosophy, State Farm should target Young Adults aged between 18 and 25. This is because there are over 33 million uninsured persons in America falling in this age gap. With the philosophy, State Farm should provide insurance brands to students and young adults falling in this age gap in order to detach them from other insurance and make them independent. Additionally, since State Farm prefers business model (use of agents) rather than insurer model (use of call centers and internet), there is high probability that in the current information technology age, many persons falling in this age do not have an elusive insurance coverage. Business model has its advantages that include job creation among other things. However, the Good Neighbor philosophy of State Farm can reach young adults easily now that many of them are prone to internet than attending call centers. Many young adults perceive State Farm as conservative and one tha t clings to traditional ways of doing business. However, with the Good Neighbor philosophy, which targets all people the adoption of insurer model through call centers and internet, will see young adults seek insurance brands from State Farm. (State Farm Plans Book Ucla 2010, 2010. p.1). State Farm is a mutual insurance company belonging to many policyholders. The first capital of starting State Farm came from policy holders who until now remain owners. Although currently comprising of shareholders, the company does not pay form of dividends to shareholders. Instead, all dividends including profits and status belong to policyholders.Advertising We will write a custom research paper sample on Compensation System of State Farm Insurance specifically for you for only $16.05 $11/page Learn More This is the reason why State Farm continues to expand as policyholders choose to use their financial earnings to expand the company. Additionally, the structure protects the company’s finances in that, even if share prices drop or shareholders stage demonstrations, the company will still move on smoothly as this appears no issue. Current statistics indicate that State Farm is the most successful insurance company in United States especially as car and home insurer. This is because of its Good Neighbor philosophy that includes affordability and ability to handle claims fairly and squarely. The mission statement of State Farm is to assist people to deal with arising risks, recuperate from misfortunes and attain their objectives. In order to exhibit good neighbor philosophy, State Farm embarks in market partnership with insurance consumers build on shared values such as financial empowerment, honesty, mutual trust and eminent insurance services. (Case Study: State Farm, 2010, pp. 8-10). Reference List Case Study: State Farm. (2010). Retrieved from http://webcache.googleusercontent.com/search?q=cache:P_Z_aLyoxjkJ:jomc279.files.wordpress.com/2009 /08/casestudy_abbr.pdf+outline+the+current+compensation+philosophy+for+your+organization+StateFarm+Insurance+Companyhl=engl=ke Rhonda, C. (2010). State Farm Mutual Insurance Company. Retrieved from http://insurance.suite101.com/article.cfm/state-farm-mutual-insurance-company State Farm Corporate Website. State Farm Insurance Company. (2010). Retrieved from statefarm.com State Farm Plans Book Ucla 2010. (2010). Retrieved from slideshare.net/karlaliu/state-farm-plans-book-ucla-2010

Syntactical issues for a education bilingual Research Paper

Syntactical issues for a education bilingual - Research Paper Example For this reason, English speakers have the difficulty in choosing the gerunds, which can fit a specific context or the infinitive ending of a verb if they need to translate the language. While there is a specific way of determining the different ways through which gerunds are formed in Spanish, some cases are difficult to determine in interpretation of the different things from Spanish to English may not be straightforward. For example, in forming gerunds with Spanish word that end with -er, -ar, and –ir, the addition of the words are added the –ando for all that end with –ar and –iendo for all words ending with the –er and –ir. This may be a form that people may have ease in interpreting but still this could pose a difficulty in interpreting the different words that the English language use in different contexts. In interpretation of the words that end with the –ando or iendo, the English speakers interpret them as by adding –i ng at the end of the of the verb form of the word. This makes it easy to understand the meanings of all the words that appear in the language in both language and interpret them with ease of determination of the endings (Jehle par 2-3). In understanding the gerunds, however, there are words that take only the verb form only in Spanish but in English, they are either verbs or nouns in the language. For instance, the word viviendo in Spanish, which means living in the English language has the form of a verb only in Spanish but is both a verb and a noun in English. Another word like bablando, which means speaking in Spanish, may take the verb and a noun and therefore, may make it difficult to determine the correct meaning of the word. This means that an English speaker may have difficulty in determining the best way to translate the different forms of the words that they need to use in the English form from the Spanish language. For instance, those who are learning to use the Spanish m ay encounter difficulty to determine whether a word written in Spanish is either a verb or a noun in English (Schwartz and Causarano par 1). In having gerunds in the Spanish language, there are special cases that are common in the language use, which do not necessarily take the form of –ando for -ar or –iendo for –er and ir. This is because some forms of gerunds take the other forms of gerund, which is not the usual even though they may end with similar letters from at the end. These are determined by the endings of the stem of the sentence in which case, it is not obvious to determine when an English speaker is using it. Some of the special cases of determination of gerunds in Spanish include the change of –iendo to –yendo in some cases of words whose stems have a vowel ending that is in its basic form of the word. For instance, the word caer in its continuous form becomes cayendo and in the same case, the word leer will take the form of leyendo i f there is addition of a gerund. Another special case is some words have their own change of the stems, which may take change of –o- to –u- or to –ue- so that they may have their own gerund. For example, in addition to the gerund of the word dormir, the word changes to durmiendo, this does not take the form of the first stem and then the normal ending of the gerund (Jehle par 3-7). In terms of infinitive there are

Mathematical Model Research Paper Example | Topics and Well Written Essays - 1250 words

Mathematical Model - Research Paper Example Introduction A model is a representation or an abstraction of a real or abstract system or a process. Thus, mathematical modeling is the process of representing real or abstract phenomenon using mathematical tools, which includes mathematical notations, formulas, relations, and symbols. Models are necessary since they enable scientists define a problems, understand data, organize thoughts/ideas, make predictions and communicate with the world (Bender, 2000, p. 23). Most real problems or phenomenons are complex and, therefore mathematical models enable us to capture certain key aspects of the phenomenon. Usually, it is impossible or unnecessary to represent some facts about a phenomenon since they are either too complex or unnecessary. Models can take many forms, including statistical models, dynamical systems, or game theoretic models, differential equations (Korotayev, Malkov & Khaltourina, 2006). Other forms of mathematical models use logic and they are mainly applied in humanities and philosophy. Although models represents real phenomenon they do not necessarily agree related experimental measurement. This has been a basis for advanced theories to define the related phenomenon. The role that mathematical models Figure 1 Brief History There are two basic types of mathematical models namely deterministic and empirical models. ... Through these models, scientists were able to explain basic physical properties such as motion. Newton’s models have been fundamental in Newtonian mechanics, which is still a fundamental aspect of modern mathematical physics. Initial models were deterministic and, they enabled scientist to write explicit mathematical formulas connecting two or more variables. Some of the well-known Newtonian models include The models occur naturally for a point mass m moving in space. such models could not be applied on multivariate problems. This necessitated the development of empirical models that are based on experimental observations. Key Developments Key developments in mathematical modeling include application of computer software to solve numerical equations resulting from mathematical models. Other developments involve the application of abstract theories in the development of models. Early models relied on experimental theories that resulted in deterministic models. However, advances in the field have proved that other branches of mathematics such as topology, algebra, and analysis are of equal significance in formulating mathematical models. Indeed, mathematicians are exploring the possibility of abstract approach in formulating models. Mathematical Content Fundamental theory in mathematical model is dependent on outcomes of natural laws and phenomenon. For instance, models of population studies have to incorporate basic theories on the subject. For example, the models have to account for population growth rate, implication of diminishing resources, carrying capacities of the environment, predation, death, and decay. Consequently, modelers have to have concrete knowledge in formulating natural problems using mathematical