The Balance Sheet Essays - Generally Accepted Accounting Principles

The Balance Sheet Although the balance sheet was first implemented just a couple of centuries ago, it has quckly developed and sophisticated to become nowadays a widely used and powerful tool in the hands of professional users, well known and popular even among the mass public. In spite of its prominence, or may be because of it, the balance sheet can not be easily and fully described in a few words, but still, if we leave aside its various functions and forms and any other subjective factors, we can state that the balance sheet is a summary of an enterprises' assets, liabilities and equity at a specific moment of time. To simplify this description even further we could say that the balance sheet shows an entity's possessions, obligations and others' debts to it. The "objective" point of view however is often too restrictive, and the most simple things many times prove to be rather complex... Among the thousand more complex definitions appended to the balance sheet one of my favorites is the definition given by .... according to which the balance sheet is a statement meant to communicate information about the financial position of an enterprise at a particular point in time, summarizing the information contained in accounting records in a clear and intelligible form, giving information about the financial state of an enterprise and indicating the relative liquidity of the assets, showing the liabilities of the enterprise (i.e. what the enterprise owes and when these amounts will fall due), able to assist the user in evaluating the financial position of the enterprise, being however only part of the data needed by users. Or to summarize this long description with which I completely agree, I could say that although the balance sheet is one of the most outstanding instruments in the hands of financial analysts, managers, investors and other users, its importance should not b e over emphasized, it has to be viewed along with many other documents, and it is far from being the perfect and the "super" financial document. In order to get a more clear, complete and fair picture of the balance sheet, apart from reviewing the definitions given by the experts in this field, we would need to consider as many sides and issues of the subject as possible. Being objective we should have a look at the etymology of the word "balance", the history of this document, its theoretical essence and the basic concepts of accounting implied in it, its forms in the accounting practise. In our attempt however not to become "over-objective" or scholastic, we should also review the aims and purposes of the balance sheet and the extent to which they are fulfilled, the users of this financial statement and their contradictory needs, the negative aspects and restrictions of the balance sheet, and finally the trends of its further development. In short, we have to go further into the matter... The history of the so called financial statements, and the balance sheet among them, can be traced back to Renaissance Italy, where along with the double - entry book - keeping they first evoked to respond to the growing more and more complex needs of the accounting connected with the economic development of the society at that period (expansion of trade activities, development of banking, etc.) and with the transition from the owner - manager model towards limited companies or the breakdown of ownership from control. Obviously these historical events called for the development of new methods and new documents, reflecting the changes. Naturally the word "balance" itself has also an Italian origin ("bilan", "bilanz") though it is formed up of two latin words: "bi" - double and "lanx" - scales. Even from here it becomes obvious that the balance sheet is a sheet or summary of two different aspects of one and the same thing: an entity's financial position. Further to this aspect, we can take a look at the definition of the balance sheet given by John Arnold, Tony Hope and Alan Southworth: "The balance sheet is the most inituitive and easily understood document of accounting. Most of us at some stage in our lives will be required to compute a listing of our possessions. Such a listing of

The Self-Destruction of Humank essays

The Self-Destruction of Humank essays The Self-Destruction of Humankind in R. U. R. In Karel Capeks play R. U. R. (Rossums Universal Robots) the idealistic young Helena Glory arrives at the remote island factory of Rossum's Universal Robots, on a mission from a humanitarian organization devoted to liberating the Robots, which are being sold to the world as cheap labour force. Although Helenas decision to ask Dr. Gall, the head of the Physiological and Experimental Department of R. U. R., to make the robots more human was a foolish, naive miscalculation which leads to the extermination of the human race, she isnt the only one to blame for the destructive consequences of Rossums Universal Robots. Helena Glory arrives at the factory of Rossums Universal Robots as a representative of a group which wants to give more human rights to the robots. This is a contradiction in itself because one cant give something non-human the rights of a human. So in order to achieve her request the robots have to become more like human. But this request is very naive because Helena only considers the non-destructive human characteristics like love, to have a soul and to have a free will. The human features she doesnt think which robots shouldnt have are the will not to have a master just like Radius, a highly developed robot, says to Helena (p. 164). This characteristic is responsible for the formation of a Robot organization. Another charcteristic that the robots gain through Helenas decision is the struggle to increase their own power. Thats why the robtos want to rule over others just like Radius tells Helena (p. 164). The most devastating attribute that the robots acquire is to slaughter an d to dominate. Radius tells Alquist, that it was necessary to slaughter and dominate in order to become human beings (p. 192). This attribute was the one which lead to the extinction of the human race. At first Helena believed that it...

Fostering a positive work place Article Example | Topics and Well Written Essays - 500 words

Fostering a positive work place - Article Example Individuals need to put effort in achieving this type of a relationship. Questions therefore are often asked in to clarifying a good working relationship. It is the one that compromise of trust, respect, support and communication. These are the strategies that a good leader can oversee in order to achieve a healthy relationship among their staff. Trust should be a two way traffic, staff should work hard to earn trust from their colleagues and so their leaders. Trust generally involve integrity, believing in someone and giving them a chance in some highly rated activities. This comes with competence, congruency and constancy where competence involves being authentic, real and conscious about ones work e.g. nursing. When this is achieved, one can easily trust another. Congruency shows some level of unity in what have been agreed in unison. Constancy is the ability to be easily accessed or ones availability. Respect is also a thing to look for when trying to achieve a good and healthy working environment. This is through having unconditional positive regard for each other despite the position at work, social background, race, economic background or even the level of education. It is the belief that every human being has a contribution to make in the world. Support is also one of the major point when strategizing about creation of a healthy working environment. It’s the act of being there for each other at no cost. Nursing profession needs unity to moves its many activities in serving people. Communication is the core point to hit when soliciting for a healthy relationship in an organization. It is a good strategy in increasing positive interaction in the work place. Incentives. It is a reward or bonus given in appreciation of a good did or towards an outstanding performance. It is a vice that good leaders should always inculcate in trying to create a positive relation in a work place. Gifts can be given to all the staff at large and also

Firewall and Internet security Dissertation Example | Topics and Well Written Essays - 2250 words

Firewall and Internet security - Dissertation Example The advancements in technology have almost pulled every individual on earth into the virtual world of cyber pace.As every day passes by, the rapidity with which internet grows has increased exponentially and the world is shrinking smaller and smaller. People living in extremities of the world could easily communicate just like they are doing it when they are in direct contact with each other. The distance is no more a matter of concern. Despite all the advantages of a networked world, the parallel increase in cyber threats has been an alarming factor. Information is the key to success of any individual or organization. When there is a threat to the security of such an important factor and the manner in which networked computers are hacked within seconds of time has put cyber security as one of the top priorities for technology developers. With the advent of these issues, the installation of firewalls has become a mandatory activity for every internet user. Every time a new level of s ecurity is proposed, a new mode of threat is ‘unearthed’ in this virtual world. So, as a precautionary measure, people protect themselves with having both personal as well as network firewalls. Although many kinds of research has been done on the levels of protection offered by network firewalls and personal firewalls, not much has been done on the perspective of providing a comparison between these two types of firewalls. (CHESWICK et. al, 2003) Continuing on these lines, the primary aim of this research is to examine the current literature comprehensively and produce a compare and contrast analysis of these two types of firewalls in regard to the increase in today's internet security. However, since the category of this itself provides a large scope for a complex and more time consuming analysis, the research question is further refined such that it focuses mainly on the following topic - why implementation of personal firewalls in every system in an enterprise is con sidered to be a difficulty when compared to the implementation of network firewalls. The reason that could be given for the choice of this topic is that irrespective of the number of advancements in firewall technologies, no proper solutions have been found yet, to understand the continued ignorance of affording personal firewalls to every system user in an enterprise instead of network firewalls, which are always considered as the preferred option. (Firewalls, 2003) Objectives of the research Based on the above research questions, the primary objectives of the research can be derived. The most common differences between personal and network firewalls (which are explained in the literature review section) are the architecture and design features, the working environment, technical features and other advantages and disadvantages of each type of firewall. Implementing a personal firewall seems to be a tougher task, as the configuration might not be similar for every system. This makes the process of implementation a difficult task. Each time a firewall is implemented; the system components and modules pose certain restrictions that in turn make the process tedious. The situation is entirely different in a network environment. Since the implementation is done on the network as a whole, the task of installing them in individual system is eradicated. In a network environment, the firewall controls the communication and network traffic. As the functions of a network firewall are composed of easier installation management process, it strikes a greater difference from that of a personal firewall. The disadvantage of a personal firewall strengthens the research question, as it indicates the importance of network firewalls. Hence, the analysis of the areas which were described above is considered to be the primary objectives of the research. Literature Review The progress of internet and development of technology has necessitated the need for

International Strategic Alliances(PROJECT TO WRITE IN ACADEMIC REPORT) Essay

International Strategic Alliances(PROJECT TO WRITE IN ACADEMIC REPORT) - Essay Example riteria Decision Making (MCDM) in order to assist the managers of automobile companies when deciding for the best partner alliance and optimize several business goals all at the same time. This report will not only summarize the theoretical foundation of the research but also identify its basic assumptions, research hypothesis, research methodology, and its contribution to the international business literature. In response to globalization, international strategic alliances is now being use as a business strategy in terms of maximizing the companies’ of economics of scale, increasing the efficiency of production in response to the fast changing market environment, empower the business in terms of penetrating a new market, improve the company’s competitive advantage within the domestic and global market, expand the business opportunities of a business organization, reduce the cost of production, and create new business opportunities for the company among others (Czinkota, Ronkainen, & Moffett, 2009, pp. 3 – 6; Wright & Dana, 2003). In line with this, strategic alliances are being used to enable companies establish a long-term business relationship with other companies in order to increase the company’s competitiveness with its competitors (Shahanaghi & Yavarian, 2010). The purpose of the chosen reading will be provided in this report by discussing the main objective of the article. Eventually, the article written by Shahanaghi & Yavarian (2010) entitled â€Å"MODM-MCDM Approach to Partner Selection in Auto Industry. A Case Study on Mazda of Iran† will be summarized in this report. As part of summarizing the theoretical foundation of the research including its basic assumptions or the research hypothesis, research methodology, and the contribution of Shahanaghi & Yavarian’s article in the international business literature will be tackled in details. Shahanaghi & Yavarian (2010) analyzed the international strategic alliances in automobile indusrty

How does macroeconomics factors affect smes in tanzania

How does macroeconomics factors affect smes in tanzania Essay one talked about how macroeconomics factors such as inflation, monetary policy, taxation and international trade affect the economy of Tanzania as a whole. As stated in essay one, this essay will discuss about how these microeconomics factors affect the small and medium enterprises (SMEs) or occasionally known as micro, small and medium enterprises (MSMEs) in Tanzania. In Tanzania (SME Development Policy, 2002), it is at present increasingly recognized that SMEs play an important job in employment contribution, income generation and stimulation of growth in both rural and urban sectors. SMEs can easily be set up given that their requirements in terms of capital, technology, management, etc. are not as demanding compared to large enterprises. SME Development Policy (2002) wrote different countries use different measures of size according to their development level. In the perspective of Tanzania, micro enterprises are those employing up to 4 employees or utilizing capital amounting up to Tshs.5 million. Small enterprises are those that are employing between 5 and 49 employees or with capital investment amounting from Tshs.5 million to Tshs.200 million. Medium enterprises are those employing between 50 and 99 employees or utilize capital investment amounting from Tshs.200 million to Tshs.800 million. The above information can be summarized using the table below: In 2002, the Government of Tanzania (quoted by Aikaeli, 2007) stated that it is estimated that about a third of the GDP originates from the SME sector and employs approximately 20% of the Tanzanian work force. This data shows that SME sector plays a significant role in the economy. According to Morwa (2006), following the privatization drive and the civil and public service reforms which began to take place in the early 1990s in Tanzania, the country observed a considerable increase in the number of SMEs over the last one decade. SME Development Policy (2002) argued that due to the existence of a number of restrictions hindering the development of Tanzania SME sector such as unfavorable legal and regulatory framework, undeveloped infrastructure, poor business development services, limited access of SMEs to finance, ineffective and poorly coordinated institutional support framework etc., the full potential of this sector has yet to be tapped. The anticipated result is to have a considerably increased contribution of the SME sector to economic development of Tanzania. Monetary policy and its contribution to the SMEs in Tanzania: As described in essay one, the Bank of Tanzania is the central bank of Tanzania and in 1995, according to Wikipedia (2010) the bank had one single main objective, which was monetary policy. One of the problems that SMEs in Tanzania face is limited access to finance. The government decided to set up the following schemes to tackle with this problem: Small and Medium Enterprise Credit Guarantee Scheme (SME-CGS): According to BOT (2010), this scheme was set up by the government during the financial year 2004/5. It is executed by the Bank of Tanzania (BOT) in alliance with Financial Institutions. SME-CGS is devised to promote and support SMEs by building up an enabling environment for expansion and making possible access to financial resources, thus speeding up economic growth and job creation. Economic Empowerment Programme (J.K. Fund): In the financial year 2006/7, the government kept aside about Tshs.21 billion. Mkukuta (2008) stated that the motive of the fund is to offer special consideration loans through normal banking practices to empower SMEs, and especially those that are in the rural and urban areas. The execution of the programme is categorized into two phases. The first phase was assigned Tshs.10.5 billion, which were issued under Credit Guarantee Scheme. The CRDB and NMB banks were selected to partake in the first phase. The second phase was also assigned with Tshs.10.5 billion, which were issued to banks and non-bank financial institutions to offer loans mostly to districts that CRDB and NMB banks were not able to cover during the first phase. According to Mkukuta (2008), as of 30th September 2008, loans worth of Tshs.39 billion were issued from the first phase allocation, whereby the CRDB bank issued about Tshs.22.8 billion and 26,384 entrepreneurs profited from this. NMB bank issued about Tshs.16.2 billion and 21,955 entrepreneurs profited from this. In total, the number of entrepreneurs that profited was 48,370. Mwananchi Empowerment Fund: This scheme was commenced in January 2008. According to Mkukuta (2008), since it was launched with limited capital resources of about Tshs.400 million, the government decided to launch the scheme in five regions in the first phase and carry on with other regions subject to the availability of funds. The first phase regions included Lindi, Mtwara, Manyara, Singida and Rukwa. A Memorandum of Understanding (MOU) has been signed between the CRDB Bank and the National Economic Empowerment Council (NEEC), whereby NEEC had agreed to deposit about Tshs.400 million to the CRDB Bank as cash guarantee. The scheme seeks to empower Tanzania citizens to access capital and loans and take part in the economic activities of the country. The following are the objectives of the Fund as given by Mkukuta (2008): Widen investment knowledge among Tanzanians Enhance employment opportunities Offer a connection among institutions, companies and corporations that are registered under the Economic Empowerment Act by bringing coordination in their activities, counseling and developing them Offer loans to private individuals, corporations and institutions under credit guarantee scheme or non-guarantee scheme. Mkukuta (2008) concluded that until 30th September 2008, a total loan worth Tshs.143,770,000 has been issued to two of the first phase regions; Lindi and Mtwara. CRDB BANK LTD TANZANIA: Masuke (2010) stated in his presentation that CRDB Bank is a private commercial bank that was set up in July 1996. CRDB Bank is one of the banks in Tanzania that cannot escape doing and expanding business with the SMEs sector. This is because of the intense competition for the small corporate market. Because of this predicament, CRDB Bank has been compelled to adjust their traditional banking philosophy and practice and seek out methodologies of dealing with the crisis built-in in financing of SMEs in Tanzania. According to CRDB Bank (Masuke, 2010), SMEs are those with: Number of staff between 1 and 100 in the midst of them are relatives of the entrepreneur Capital investment of between Tshs.5 million to Tshs.800 million Requirement of businesses loan amounting Tshs.1 million to Tshs.100 million Annual sales turnover of Tshs.20 million to Tshs.500 million One of the problems faced by SMEs is getting finance from banks. CRDB Bank carried out a survey to uncover what was hampering SMEs from accessing finance. Masuke (2010) wrote that the following were the results: SMEs sector is viewed as a high risk and costly to finance SMEs have poor auditing and accounting framework Lack of enough guarantee schemes to back-up financing SMEs Inadequate knowledge of business operations Failure of borrowers to organize and present applications/business plan that meets the banks requirements. Failure of SMEs to fulfill collateral requirements. According to Masuke (2010), the following are the initiatives that CRDB Bank took to support SMEs: Devise modified products for SMEs: The bank developed two credit products for SMEs: working capital loan and investment loan. The repayment style developed is by installments. In working capital loan, the minimum repayment period was developed to be 3months and the maximum 12months while in investment loan, the minimum repayment period is 12months and the maximum 60months. Capacity building for CRDB staff and SME customers: In building capacity for CRDB staff, the bank had to hire new staffs who specially deal with SMEs. Furthermore, all employed staffs had to go through an intensive training. In building capacity for SMEs, the bank offers free business and loan management training to SMEs. In addition, after training the trainees are provided with booklet called SME Toolkit, which can be used as a reference. Increase the range of collaterals accepted by the bank: Before CRDB Bank implemented the SMEs concept, it used to call for just traditional collateral. But now, the bank has broadened the range of acceptable collaterals to include non-traditional collaterals e.g. Residential License, properties with offer letters, used motor vehicles and machines etc. Introduction of customer relationship concept at branch level: The bank extended the relationship concept to branch level, which can allow the bank to build a strong relationship with its SMEs. The SME concept was executed as a project in 2005. Since then, the project has been a hit with remarkable growth in terms of portfolio and number of customers. International trade and SMEs: Tanzanias ability to face global economic challenges depends on the stage of development of its SMEs. According to OECD Bologna conference (2000), there are four requirements for development of competitive SMEs that meet the criteria to get involved in cross-border business: Provision of effective business support services Availability of long-term finance Availability of a good state of information and communication technology infrastructure Existence of appropriate social capital The following are the strategies that SMEs can adopt when involving in international activities (Young, 1987): Exporting Foreign direct investments (FDI) Strategic alliance Joint ventures Licensing, etc. According to Saiguran (2007), some of the problems that SMEs in Tanzania face include: Lack of appropriate information, knowledge and skills Challenge of small and competitive domestic market Inadequate and inefficient infrastructural facilities Multiplicity of taxes The following are some of the initiatives that were set up in order to promote international trade in Tanzania: The Board of External Trade (BET): This scheme was set up in 1978. The scheme is responsible for: International markets searching Synchronizing foreign businesses requiring to trade in Tanzania Sorting out and helping out involvement in overseas trade fairs, exhibitions, and missions Carrying out Research and Development on external trade According to BET (2007), since the time the scheme was set up, it has been synchronizing and carrying out training programmes in all areas of international trade, holding specialized exhibitions and carrying out market research. Mini-Tiger Plan 2020: this scheme is fed into the National Strategy for Growth and Reduction of Poverty (NSGRP). According to Aikaeli (2007), this scheme is responsible for: Promote competitiveness of Tanzanian products on the global markets Promote exports Create special economic zones. The zones that were created included: Tanzania Export Processing Zones, which was set up by the parliament Act of 2002 and Zanzibar Free Trade Economic Zones Authority (ZFTEZA), which was created in 1992 SMEs Export Credit Guarantee Scheme: this scheme was set up in 2003 by the government of Tanzania through the central bank. The aim of the scheme is to facilitate export trade. According to BOT (2006), the scheme is geared to support SMEs in line with the National SMEs Development Policy. In order to assist the mentioned above scheme in minimizing problems that are affect by SMEs in relation to international trade, the government in collaboration with private non-governmental organization (NGOs) organizes workshops and seminars to sensitize and educate people on how to cope with the existing global challenges. For example, SMEs Competitive Facility (SCF) of Tanzania organized a course with jingle Track IT, Trace IT Tanzania: Competitiveness for Tanzania. According to SCF (2006), SCF grants opportunity for businesses that desire to build up or add to their ability to trade and export. Regardless of all the problems that SMEs face in Tanzania in relation to international trade (Aikaeli, 2007), SMEs still have the potential to effectively compete and gain the benefits of the rapid expending international trade. AMKA: DAR-ES-SALAAM, TANZANIA Tomesen and Gibson (1998) stated that AMKA is a Swahili word meaning awareness or awaken. It is an NGO in Tanzania which specializes in export and marketing-oriented business development services (BDS) to Tanzania SMEs. AMKA was founded in 1994. Its main goal is to: Increase the incomes and numbers of Tanzanians (employees and/or producers) involved in exportsà ¢Ã¢â€š ¬Ã‚ ¦ [And] increase the value of agricultural output in Tanzania via exportsà ¢Ã¢â€š ¬Ã‚ ¦. (Tomesen and Gibson, 1998) In other words, Tomesen and Gibson (1998) wrote AMKAs export/market-focuses technique is to improve business performance by increasing efficiency and turnover through improved access to new markets (domestic and foreign). In quest of the goal, AMKA carries out a variety of activities that target the SME sector. These create a balancing market/export-focused portfolio of services and can basically be categorized into two groups: Training and advisory services providing training in small business development skills and business planning for export. Trade promotion and intermediary services AMKA acts as an agent between producers and customers. It offers market information on export, assist producers who need export facilities and eases the connection between the producers and alternative trade organizations, which are the customers. AMKA also helps producers and intermediary organizations to take part in trade fairs and offer ethical and quality standard audits of producers for external customers and carries out market research AMKAs key income source is the Department for International Development (DFID). In 1994, it endorsed a 4 year funding of $557,053, which was to assist in forming the organization (AMKA). Nevertheless, the awareness strategy of lessening reliance on one donor has been successful. Reliance on DFID funding has lessened from 94% in 1994/5 to 40% IN 1997/8. Important funds from other donors began to enter into the organization. The percentage of internally generated funds has risen from 5% in 1994/95 to 41% in 1997/98. According to Tomesen and Gibson (1998), AMKA successfully serves two groups of customers: SMEs in Tanzania Overseas customers These customers are mainly in two sectors: food-processing and handicraft production. The customer base is extremely different in terms of the organization structure, the number of employees, their activities and main products. The customer enterprises size ranges from 4 to 446 employees. Customer enterprises have a range of structures of ownership, which include: producer groups (groups of self-employed people), co-operative societies, privately limited companies, parastatals, and associations. Originally, AMKAs focus was to develop intermediaries (co-operatives and associations) who could, in turn, deliver services to producers. Nevertheless, AMKA has shifted deliberately towards to offering more services to producers itself directly mainly because of the weakness of these intermediaries and the complexity in increasing their ability. In general, Tomesen and Gibson (1998) concluded that it is obvious that AMKA has had a positive impact on the economy of Tanzania in general and on producers, SMEs in particular. Because of AMKA, some businesses were rescued; others, for the first time, were introduced to exports, or had export sales increased. Effects of Inflation on SMEs in Tanzania: As described in the first essay, Thompson and Vane (1979) argued that inflation can be caused by a simultaneous fall in the value of money. Inflation had continuously pressure Bank of Tanzania in the year 2009-10 due to its double digit and is expected to remain the same due to government expenditure ahead of October elections, the anticipated dry weather and the deteriorating of the shilling. The rate of inflation affects SMEs access to finance. As described in essay one, a high rate of inflation restricts SMEs from access to finance from the banks and other financial institutions while a low rate of inflation widens the SMEs chances of accessing funds. Because of this, inflation is considered as one of the factors that get in the way of the growth of SMEs in Tanzania, in a way that it puts off investors. Investors prefer to invest in countries where currencies are stable and rates of inflation are low. In order to help the SMEs sector, the central bank of Tanzania has set up a chain of strict fiscal measures to control inflation. Professor Benno Ndulu, the governor of the Bank of Tanzania (cited by Emerging Markets Business News, 2010), in an exclusive interview in Dar es Salaam said his institution was acting quickly and resolutely to turn around the rising rate of inflation. He said the bank would remain alert against the risk of higher food and fuel prices firing up the inflations upward spiral. He continued to say that increasing inflation was a worldwide happening and that the Bank was working round the clock to have power over money liquidity in the economy as one of the measures to deal with the problem. As an economics expert, Prof. Ndulu suggested that Tanzania as a nation requires to produce more food for its rapidly increasing population to trim down reliance on costly imported food products, which add up to inflationary pressures. He challenged regulators such as the Energy and Water Utilities Regulatory Authority (EWURA) and others to make certain that when prices of fuel at the global market dro p, such positive changes should be experienced by Tanzania too. The Bank of Tanzania also controls the growth of money in order to control inflation. According to Ballali (2004), controlling the growth of money enables the bank to have influence over the rates of inflation. In controlling the growth of money, the bank targets broad money, M2, which is currency in circulation outside banks, and total deposits detained by commercial banks, not including foreign currency deposits. BANK OF TANZANIA (BOT): The Bank of Tanzania is responsible for controlling the rate of inflation. Ballali (2004) wrote the objective of monetary policy is to attain a low and stable rate of inflation, which has a link with the key objective of the Bank of Tanzania, which is price stability. Therefore, the bank has an obligation of making sure that it sets up monetary conditions that are in agreement with low and stable inflation. According to Ballali (2004), the focus of the Bank of Tanzania is on the Consumer Price Index (CPI), which it uses to determine inflation. The rate of change in the overall CPI is known as the headline inflation rate. The inflation rate, not including food prices is regularly known as the non-food inflation rate. Non-food inflation rate is used to calculate price movements, which are mostly influenced by policy factors, but can also be often affected by external factors. The Bank of Tanzania also keeps an eye on food prices and their index. This is for the reason that food prices are occasionally influenced by non-monetary factors like drought and floods, which can have an effect on inflation significantly in spite of the attitude of monetary policy. The rate of change in food price index is known as the food inflation rate. Ballali (2004) stated that by controlling the growth of money supply, Central Banks have influence over inflation. The Bank of Tanzania targets broad money, M2, which is described as currency in circulation outside banks, and total deposits detained by commercial banks, not including foreign currency deposits. M2 is selected for the reason that it is the monetary aggregate that is estimated to have closest relationship with the rate of inflation. Central Banks usually have influence over reserve money (base money, or central bank money), as stated by Ballali (2004) which is directly connected to money supply in order to control the growth of M2. Reserve money is described as the liabilities of a Central Bank, which consist of currency detained outside banks and banks reserves detained by the Central Bank. Taxation and its effect on SMEs: According to Mittah (2009), there are two classifications of SMEs: SMEs formal these are potential taxpayers who comply with the tax laws, are well structured and keeps records SMEs informal these are not well structured and have complexities in keeping records. Most of the micro taxpayers fall under informal sector There are advantages in grouping taxpayers, which according to Kimungu and Kileva (2007) include: Simple to manage. Simple to recognize. Simple to educate or counsel on taxation issues. Risk minimization. Higher compliance. The tax system is unfavorable for SMEs development. According to SME Development Policy (2002), the business community has the following perception about Tanzanias taxes: The rates of taxes are higher in relation to neighboring countries in the region Taxes are many and collected by a variety of authorities including: the Tanzania Revenue Authority (TRA), some Central Government Ministries (e.g. Lands, Natural Resources Environment Tourism Energy and Minerals etc.) and Local government Authorities. These are some of the reasons why entrepreneurs are ignorant of tax matters and the cost of acting in agreement with tax regulations is regarded as high. While taxation of businesses is a requirement for national economic development, the current tax system inflicts a major weight on SMEs. The following are the strategies that are set up in order to promote compliances in paying tax by the SMEs: Simplify tax systems: for SMEs the tax system is considered to be complicated. Simplifying the tax system can promote voluntary compliance in paying tax. Mittah (2009) stated that Tanzania has opted for the introduction of presumptive tax system to reinstate income tax, VAT and stamp duties. Presumptive tax system was set up in July 2004 with the intention of minimizing the problems that are faced by SMEs taxpayers in abiding by with the laws of tax. Introduce tax incentives to foster SMEs: tax incentives like low tax rate to those who comply with the tax laws can encourage SMEs to comply and abide by with the tax laws. The Sustainable Industrial Development Policy SIDP (1996 2020): SME Development Policy (2002) reported that this scheme was set up in order to place specific stress on encouragement of small and medium industries through the following measures: Supporting current and new promotion institutions Simplification of taxation Licensing and registration of SMEs Progress access to financial services. Persuades informal sector businesses to grow and be formalized. TANZANIA REVENUE AUTHORITY (TRA): TANZANIA TRA is one of the government companies that are responsible for the application of the Value Added Tax (VAT) to SMEs in Tanzania. VAT was set up in Tanzania on 1st July 1998. Formerly, VAT was known as Sales Tax, but it was replaced because it was unable to create adequate revenue as it was narrow-based. According to TRA (2010) in Tanzania, there are two valid rates of VAT: Standard rate, which is 20% Zero rate, which is 0%. This is generally valid to exports. TRA (2010) gave the following main reasons for setting up VAT: Widen the tax base Achieve economic neutrality Encourage exports Achieve its administrative advantages According to TRA (2010), small businesses are those with yearly taxable turnover of not more than Tshs.40 million. By 31st December 2004, Tanzania had about 355,750 businesses that were registered as small size businesses. This group contributes about 0.44% to the TRA domestic revenue collections. Medium size businesses are those with the yearly taxable turnover exceeding Tshs.40 million, but whose yearly total domestic tax payments to TRA do not go beyond Tshs.400 million. By 31st December 2004, the businesses that were registered as medium size businesses for VAT were about 6,815. This group contributes about 13.2% to TRA total domestic revenue collection. Businesses whose yearly aggregate tax payments to TRA exceed Tshs.400 million are categorized as large taxpayers. TRA has registered about 200 businesses as large taxpayers, including non VAT registered traders such as banks and insurance companies, which entirely deliver free from VAT services. This group contributes about 18% o f TRA total domestic revenue collections. From July to December 2004, about Tshs.2,015.2 million of presumptive tax was accumulated from small businesses. TRAs target was to accumulated tax amounting to Tshs.2,887.3 million, leading to a performance rate of 70%. The key reason for not accomplishing their target was caused by the administrative complicatedness of monitoring the businesses under the informal sector, who do not keep records. About Tshs.60,084.8 million was accumulated from medium size businesses during the first half of Tanzanias financial year 2004/5. TRAs target was to accumulated tax amounting to Tshs.59,212 million, leading to a performance rate of 101%. TRA (2010) stated the following were the reasons for good performance from the medium size businesses: There was close follow-up of monthly tax collections in which the estimated collections are verified by 15th of every month. Recovery of outstanding amount of tax Effective audits Close monitoring of those businesses who do not keep records Tight controls over special free of VAT and VAT repayments Staff training Carrying out of the Departmental Actions Plans The challenges facing Tanzania with respect to taxation of SMEs are in particular to those in the formal sector. Kimungu and Kileva (2007) listed the challenges as: Identification Registration Non compliance Poor of non record keeping Kimungu and Kileva (2007) stated in order to tax SMEs, the TRA has engaged in various activities: Taxpayer education and sensitization Block management system door to door survey Presumptive approach to taxation Assessment procedures Collection formalities and procedures. Conclusion: An assessment of every feature involved in macro-economy i.e. inflation affects, implications of taxation, role of monetary policy and role of international trade suggest variable results. Research has revealed that the SME sector plays a significant role in the economy of Tanzania. The results showed that a third of the GDP originates from the SME sector and employs approximately 20% of the Tanzanian work force. Research has also shown that SME sector has many challenges, which need to be addressed effectively. Given the significance of the sector and the need to transform it to a vibrant and dynamic one, it is essential to put in place strategies that will ease the elimination of those challenges so that it can achieve the desired results. One of the problems that SMEs in Tanzania face, in relation to monetary policy is limited access to finance. This problem exists because the SME sector is viewed as a high risk and costly to finance sector. In order to try eliminating this challenge, the government in collaboration with other financial institutions developed schemes such as SME-CGS, J.K. Fund, etc. which were set up with a main objective of helping the SME sector to have access finance. SMEs also face challenges with international trade. The challenge is caused by SMEs lack of knowledge, information and skills needed to effectively compete in a global environment. Apart from setting up different schemes that tackle this challenge, the government in collaboration with private non-governmental organization (NGOs) also organizes workshops and seminars to sensitize and educate people on how to cope with the existing global challenges. Inflation is considered as one of the factors that get in the way of the growth of SMEs in Tanzania, in a way that it puts off investors. Investors prefer to invest in countries where currencies are stable and rates of inflation are low. The rate of inflation also affects SMEs access to finance. A high rate of inflation restricts SMEs from access to finance while a low rate of inflation widens the SMEs chances of accessing funds. In order to help the SMEs sector, the central bank of Tanzania has set up a chain of strict fiscal measures to control inflation. The tax system is considered as being unfavorable for SMEs development. Business community perceive the rates of Tanzania taxes as being high, complicated and that taxes are many and collected by a variety of authorities. In order to tackle this problem, the tax system need to be simplified so that the SME sector can understand how the whole system works and introduction of tax incentives to foster the SME sector to comply to tax laws.

Killer Angels Essays -- essays research papers

The Killer Angels The Battle of Gettysburg brought the dueling North and South together to the small town of Gettysburg and on the threshold of splitting the Union. Gettysburg was as close as the United States got to Armageddon and The Killer Angels gives the full day-to-day account of the battle that shaped America’s future. Michael Shaara tells the story of the Battle of Gettysburg through the eyes of the generals and men involved in the action of the battle. The historical account of the Battle of Gettysburg gives the reader a chance to experience the battle personally and not the history book manner taught in schools. A historical novel gives the facts straightforward and provides no commentary by the people involved in history. The historical account of the Battle of Gettysburg, as seen in Killer Angels, provides the facts of the battle as seen through the eyes of Generals Robert E. Lee, Joshua Chamberlain, James Longstreet, and John Buford. The feelings and inner-thoughts of each General and the conditions of the battle are seen, heard, and felt by the reader in the historical account. Shaara takes historical license with letters, the words of the men, and documents written during the three hellish days of the battle. Shaara avoids historical opinion and provides his own opinion towards the Civil War and the people. The historical account of the Civil War, the Battle of Gettysburg specifically, in Killer Angels conveys the attitude to toward war, attitude towards the Civil War, and cause for fighting the war of General Robert E. Lee, Joshua Chamberlain, James Longstreet, and John Buford. General Robert E. Lee gained stoic and legendary status as the heart and soul of the South in the Civil War, but many did not know his reasons and feelings for fighting the war. War and the slaughter of others did not interest Lee and he felt compassion for the Union. Lee had contradictory feelings towards war and says, â€Å"He was not only to serve in it but he was to lead it, to make the plans, and issue the orders to kill and burn and ruin†¦he could not do that† (Shaara 263). The Civil War is not in the taste of General Lee, but feels it is his duty, and he cannot just stand by and watch the war pass him by. Michael Shaara says of Lee’s reason for fighting the Civil War â€Å", He found that he had no choice†¦Lee could not raise his hand against his own. And so what then? T... ...eiving recognition for saving the high ground and perhaps the battle. Colonel Joshua Chamberlain is given a brigade after the battle of Gettysburg but is wounded six times. He is regarded as one of the greatest soldiers in American history, and receives numerous medals for honor during the Battle of Gettysburg. Ulysses Grant gives him the honor of Major General for heroism and is chosen by Grant as the officer to receive the Southern surrender at Appomattox. Chamberlain is elected the governor of Maine and eventually elected President of Bowdoin College. He dies from his wounds in June 1914 at the age of eighty-three. General Longstreet asks to be relieved of command after the Battle of Gettysburg, but Lee makes him stay. After the war he blames Lee for the loss of Gettysburg, and this does not sit well with people. His theory of defensive war is very advanced for the time. He serves as President of Washington College until his death in 1904. General Lee remains the symbol of all that is proud and noble in the South. He asks to be relieved of his command but it is denied. After the war he asks for pardon from Congress and it is denied until 1970. Lee dies of heart disease in 1870.