Merck and River Blindness

Onchocerciasis, known as river blindness, is caused by parasitic worms that live in the small black flies that breed in and about fast-moving rivers in developing countries in the Middle East, Africa, and Latin America. The disease, if untreated causes extreme discomfort and eventually, blindness. In 1978, the World Health Organization estimated that over 300,000 people were blind because of the disease and another 18 million were infected. At the time, there was no safe cure (Trevino, & Nelson, 2011).In 1978, Merck, while testing invermectin (a parasite killing drug for animals), found that invermectin killed a parasite similar to the one that caused river blindness. The problem for Merck was that river blindness generally only affects people in very poor areas and there was very little chance to recoup their financial investment by selling the drug.The ethical dilemma represented by this situation is focused on what course of action Merck should take. Does Merck invest precious res ources (both time and money) into testing and developing a drug that will not increase their profits? Or should Merck invest the resources knowing that their work, while not profitable, has the potential to save millions of lives and end the suffering of tens of millions more?On the Merck website, I found this listed first among their Values: Our business is preserving and improving human life. We also work to improve animal health. All of our actions must be measured by our success in achieving these goals. We value, above all, our ability to serve everyone who can benefit from the appropriate use of our products and services, thereby providing lasting consumer satisfaction (Our values, 2008). Corporate success (profit) vs. Corporate philosophy, while it is easy to  talk about ethics and charity, the river blindness scenario was a huge test of Merck’s corporate character.Section 2: StakeholdersAfter reading the case in our textbook and going out to read about this river bl indness issue, I have changed my opinion on who the stakeholders are in this situation (compared to what I wrote in the weekly discussions). The stakeholders, in my opinion are:1)Merck shareholders and investors 2)Merck employees 3)Merck management 4)People affected by (or potentially threatened by) river blindness This list is not a ranking of stakeholder importance as that is truly a subjective measure based on your view of the situation.Merck shareholders and investors may or may not share the company’s â€Å"people first† vision. For this group, the impact must be looked at in light of how the development of a drug (that will most likely be given away for free) affects the return on their investment. We have to remember that not all investors are rich billionaires like Warren Buffet, some are average, working class folks who rely on their investment income to help them survive. People invest in Merck because they expect a certain reasonable return on their investme nts and Merck has a responsibility to act in the best interest of their shareholders. If Merck decides to spend time and money on a philanthropic endeavor, how does the investment of time and manpower affect their other drug trials?Merck employees are stakeholders because their livelihood depends on Merck making enough profits to continue paying them. A few years ago I would not have viewed employees in this light but the more I learn about the company/employee dynamic, I begin to understand that employees, whether or not they have some financial interest in the company (other than salary), have a vested interest in the success of the company. Like the shareholders, employees make a choice to invest in a company. In their case, it is an investment of time and their investment is tied to  professional growth. Merck must make decisions that do not recklessly jeopardize the future of their employees.Merck management’s stake in this is similar to that of the employees. The diff erence is that not only are they invested professionally; the management team has been given stewardship over the Merck brand and corporate identity. They must make the decisions that set the company’s path so that the brand is financially successful while being true to the corporate vision that was discussed earlier.Last, but certainly not least, we get to the people who are affected by the river blindness disease. These people have voice in what Merck chooses to do but at the same time they are the reason that Merck is in business in the first place. As of 2006, estimates are that 37 million are infected with, and up to 100 million people are at risk of contracting, river blindness (Hearney, 2007). For a company like Merck that claims to be more concerned with people than profits, these people are definitely stakeholders in Merck’s decision to move forward with invermectin trials.Section 3: Analysis Based on Ethical TheoriesCultural relativism means that any decision is right (or wrong) depending on whose side you are taking at the moment. Because the United States doesn’t have a single, ethical baseline that guides our actions, each individual view holds equal weight and there is no absolute right or wrong. For this case, Merck could decide to cut the research on invermectin, order it’s scientists to not discuss the issue, and sit back while millions of people suffer through a horrible existence without a second thought. People who oppose Merck’s decision would have no standing to say anything about the decision because it is the right decision for the business culture in which Merck operates.For the suffering masses, this decision could be viewed as something akin to the Nazi decision to kill millions of Jews but based on the cultural relativistic school of thought, their view would not be any more important or morally superior than Merck’s. Part of the problem with this theory is that we are forced to accept barba ric actions as acceptable (burning people at the stake, cannibalism, beheading, â€Å"honor† killings,  stoning, etc.) because it is accepted by another culture. I find it ironic that there would have been a huge public outcry (from the very people who support cultural relativism) if Merck had decided to stop testing and not develop the drug. In general, these â€Å"liberal and enlightened† folks are only tolerant of the cultures and people with whom they agree.The teleological approach to this dilemma would require an examination of the issue and a breakdown of all the possible consequences of the various options presented.StakeholderDevelop – HarmsDevelop – BenefitsDon’t develop – HarmsDon’t develop – Benefits Merck ShareholdersCosts of development causes delays in other projects. Lost revenues cause stock price to drop. People on fixed incomes lose dividend money and are forced to live in poverty.Positive public reaction t o charitable act. More investments, higher stock prices.NoneFocus resources on other drug lines could result in higher profits, increasing stock prices. Investors make more money and their standard of living increases.Merck EmployeesCompany loses money, loss of profits forces layoffs.Chance to contribute to a worthwhile cause. Work on invermectin could lead to breakthroughs in other drugs.Loss of respect for Merck leadership. Perception that values are overshadowed by financial considerations.Focus on more lucrative products, increasing profits and salaries/benefits. Merck ManagementLoss of time/resources forces delays in other projects/products. Delays cause stock to drop.Loss of job.Public confidence spikes, stock price goes up. Influx of cash allows us to expand other projects.Public confidence crashes. Backlash forces investors to pull out. Jobs lost due to loss of capital. Focus on more lucrative products, increasing profits and salaries/benefits. People affected by river blind nessPossible fatal side effects (similar to other drugs).Cure for disease increases standard of living.Continued suffering from disease.None.Using the chart above, we would look at how the benefits and harms balance out to maximize the benefit for society. Obviously, using this method, we can see that the benefits of continuing the research and development of this drug has the potential to save millions of lives while the potential harms  are restricted to the loss of some profits and the possible delay of some other drugs. This approach isn’t about right or wrong; as long as the maximum societal benefit is reached, the actions taken to get to that point are not part of the equation.The deontological approach removes the harm/benefit comparison and focuses on the duty and obligation of Merck to do the right thing once they discovered that there was a possible cure for this disease. Merck’s corporate values statements show that this is the approach they choose to take in their daily operations. Profits are not the prime motivator, helping people is what they are all about. In this case, Merck decided to continue the research and help the people regardless of the consequences involved.According to the Merck website, since 1987, Merck has donated more than 2.5 billion tablets of MECTIZAN ® (ivermectin) in more than 30 countries worldwide. According to some deontological approaches, certain moral principles are binding, regardless of the consequences. Merck’s stance now matches up with what George W. Merck said in 1950, â€Å"We try never to forget that medicine is for people. It is not for profits. The profits follow, and if we have remembered that, they have never failed to appear. The better we have remembered that, the larger they have been.†As someone who follows the deontological approach myself, I can appreciate how difficult it can be to remain committed to this principle. Merck is a business and as such it doesn’t ex ist to give money away. I have argued that the people who invest in Merck have a huge stake in what the company does but part of the investment process is doing due diligence and research to make sure you are comfortable with how a company operates.Merck devotes an entire section of their website to Corporate Responsibility and they have detailed information on the initiatives they support. Part of the culture at Merck is one of giving back to the community and helping others so for Merck, the decision to develop invermectin was an easy one. Having a strong moral and ethical foundation makes it easy to make the right decision when faced with â€Å"easy† decisions that fall into the ethical gray area.The virtue ethics approach would looks at the motivations and intentions of  the decision maker as opposed to the results of his or her actions. In this case, if Merck had decided not to pursue the research and the CEO stood up and explained that the reason was because they had an obligation to their shareholders to focus on developing products that would be profitable, he would have been right due to the professional expectations of his office. CEO’s are supposed to make companies profitable, period.As long as Merck was operating legally, the moral questions about the results of the decision are not relevant to the virtue ethics approach. If the board announced that Merck, based on their stated corporate values, was going to continue to expend time and resources on a cure for river blindness even though it wasn’t a profitable project, their motivation for action would be guided by Merck’s established values and the sense of corporate responsibility that is important to them. Neither position would be wrong regardless of the outcomes because both courses of action were guided by the best intentions of their leadership.Section 4: Conclusion and RecommendationsIn this case, I feel that Merck made the proper decision based on their core c orporate values and the deontological approach to ethical decision-making. While I might have gone a different direction if I was making decisions for Merck, it is obvious from all my research that this program is helping millions of people each year. I was wrong about the river blindness issue in my original discussion post, this isn’t just about philanthropy or looking good for the public, this program (and the many other like it) run by Merck is all about being true to their core values.Even when they could not get financial backing for this project, they did what they felt was right regardless of the cost. The success of the river blindness campaign led Merck to begin providing ivermectin to treat lymphatic filariasis (Elephantitis) in Africa (Voelker, 1998). I am not so naà ¯ve as to think that Merck isn’t reaping some benefits from these programs but whatever small reward they are getting is well deserved when measured against the lives they have touched.There a re no recommendations I could make for Merck in the way they handle these situations. Merck’s actions are consistent with their stated policies  and they have managed to thrive while ensuring that the original intent of their founders (people before profits) is not lost in the rush to be commercially successful.

Cbs Tells Sodastream to Revise Brand-Bashing Super Bowl Essay

Every year, the Super Bowl attracts some of the best and most high-priced advertising in the world. But it also lures a horde of publicity-seekers claiming their commercials have been censored or rejected by the host network. In nearly all cases, the complaining marketers never really had a shot at the Super Bowl, thanks to shoddy production values, truly objectionable content and, more often than not, the inability to pony up more than $3 million for an ad. And it’s a common occurrence for the network to ask event sponsors to tweak or edit the content for a variety of reasons (which also can yield a PR bonanza if a sponsor cries foul — just ask serial offender GoDaddy.com). But SodaStream, a mainstream advertiser that some time ago purchased a spot in the game’s fourth quarter, said this wasn’t a PR gambit. So what’s the issue? The content of its planned commercial seemed to have concerned CBS because it was a direct hit at two other Super Bowl spo nsors and heavy network TV advertisers: Coke and Pepsi SodaStream, which sells home soda-making machines, has already run afoul of authorities in the U.K. for a Bogusky-crafted spot indicating its product is more environmentally friendly than established sodas; the spot shows branded bottles and cans of soft drinks exploding into thin air. For the Super Bowl, it hoped to up the ante with a spot depicting truck drivers clad in clothing with Coca-Cola and Pepsi marks on them, according to Ilan Nacasch, SodaStream’s chief marketing officer. â€Å"We really tried to comply with the standards† set by CBS, he said. At the same time, he added, â€Å"We were taking it to a new level, and that’s the level where they apparently judged to be going too far.† Interestingly enough, Pepsi has scored big points with viewers over the years by showing Super Bowl ads with Coke deliverymen abandoning their employer wholesale for a sip of a Pepsi drink. Of course, Pepsi (and, for that matter, Coke) buys multiple ads in the Super Bowl each year, as well as spends millions of dollars on other broadcast-TV advertising. Another Super Bowl sponsor, Anheuser-Busch InBev with Pepsi this year for in-store displays and promotions. A CBS spokeswoman said network executives declined to comment. â€Å"Bummed,† Mr. Bogusky, famous for his work at CP&B still in the game with an older spot we tweaked.†

International Business and Global Strategy Essay

In-Depth Market Analysis of two target markets: China and Argentina China is a great world exporter receiving large amounts of foreign investment and is a member of the World Trade Organization (WTO). Entering the market therefore will be easier than when China was not part of the WTO. According to The World Fact Book (2010) by 2009, China had a population of 1. 34 billion. Although its population growth is not very high at 0. 49, the population is the highest in the world and provides for ample market for Body Shop International Plc (BSI plc. ). China has an income distribution of 51. 10. This indicates that the distribution of purchasing power is standardized. BSI plc does not have to specialize in its clientele and can anticipate a wide market for its products. China’s mean age stands at 35. 2. In the age demographics, China’s largest age bracket is the 15-64 yeas age category. This makes up for 71. 9% of the population as in 2008 where men were estimated at 491,513,378 and women at 465,020,030 (The World Fact Book. 2010). For BSI plc this creates a large market since beauty products are usually consumed by this age group. In terms of education, China population is educated with a literacy rate of 92% (The World Fact Book. 010) . The overall enrollment for elementary, secondary and higher education is at 69. 1. This is a good indicator that beauty products would be well received and are a part of the population that can appreciate its use. China’s growth of the Gross Domestic Product (GDP) was at 8. 70 in 2009. This GDP has been on a rising trajectory and is expected to continue as China continues to rise as an economic power. This provides for a secure market with good financial indicators that investment would respond favorably and quickly. The per capita gross income at 6600. 0 is also high making it easier for BSI plc to invest widely. The disposable income at 2. 60 represents a China’s purchasing power. BSI plc would be able to promote its products and the conditions are favorable for household spending. The continued rise in GDP growth will increase the spending habits of the population as the disposable income becomes more elastic. Inflation would negatively affect BSI plc and that is why the low inflation rate in China provides for market security against rising of prices. In china the population has continued to increase its cosmetics buying. At 46. 80 the population indicates a sizable spending on cosmetics. This creates a potential for BSI plc to garner a market share. China presents some difficulties in terms of ease of conducting business and economic freedom. However, foreign investment is still welcome and the government has opened the doors for foreign investment. Argentina is one of the countries in South America that have been experiencing economic growth. It therefore presents itself as a great target market. Its population of in 2009 was 40. 1 Million. The population growth is not very high at 1. 17 but the country has a viable market population. Argentina has an income distribution of 51. 90. This indicates that the distribution of purchasing power is high and standardized. BSI plc therefore can anticipate a wide market for its products without having to cater for a specialize clientele. Argentina’s mean age stands at 30. In the age demographics, Argentina’s largest age bracket is the 15-64 years at 63. 5% with the men standing at 12,961,725 while the women stand at 13,029,265 (The World Fact Book. 2010). For BSI plc this creates a large market since beauty products are usually consumed by this age group. According to The World Fact Book (2010) Argentina population is educated with a literacy rate of 97. %. This is a good indicator that beauty products would be well received and are a part of the population that can appreciate its use. Argentina’s growth of the Gross Domestic Product (GDP) was at 0. 20 in 2009. This GDP is low. This provides for a less secure market whereby BSI plc’s investment may take longer to respond favorably and quickly. Despite the global economic crisis Argentina and most of the Latin America were not acutely affected. The per capita gross income at 10200. 0 is also high making it easier for BSI plc to invest widely. The disposable income at 1. 0 represents a moderate purchasing power for Argentina. BSI plc would be able to promote its products as the conditions give room for moderate household spending. Inflation would which would negatively affect BSI plc stands at 4. 20. In Argentina spending on cosmetics has also increased although it is at 25. 40. This means BSI plc still has potential to make an investment in Argentina’s existing market. At 127. 0 Argentina represents favorable ease with which BSI plc can do business in Argentina. It also has good economic freedom. Foreign investment is welcome. Contacts and Competitive Analysis  Contacts are important in that they would allow BSI plc to gather information that is relevant to its venture. That is why the chamber of commerce assists foreign companies conducting business their country. It also offers its members relevant business contacts and information about Argentina. Through events and opportunities the Chamber also enables businesses to meet with government officials and key players thus facilitating relations. Contact with the ministry of foreign affairs is also important to BSI plc. The ministry is responsible for trade agreements and policies. By having the Ministry’s contacts, BSI plc can make necessary plans to attend and benefit from the ministry’s consular and diplomatic activities. As the ministry seeks businesses and companies that would increase investment in their country, BSI plc would have an opportunity to market itself to the target countries. Contacts of possible suppliers, importers and buyers are helpful so that a company can establish business relations within the industry. The choice of Alibaba Company is ideal in that it is a recognizable global distributor with very strong financial and corporate growth according to Alibaba. om. (1999-2010). China Target Market potential The market potential in China is quite high at 2530500000. This is calculated from number of potential consumers, the frequency with which the consumers buy in a year and the price of the product. This represents the potential of the cosmetic industry in China which BSI plc targets. Company Sales Potential BSI plc sales potential is dependent on the market share it will capture out of the potential market. If BSI plc secures a market share of 13. 5 %, it will estimate whether it can meet the demand of its target. Competitors Analysis  Lush Company provides competition for BSI plc. According to Lush (19950-2010) its main product is body butter. The location of its headquarters is in China providing it with advantages of proximity. BSI plc is localized and thus there are policies that favor it against foreign companies. This helps it keep its prices affordable. Lush has been in business for the past 32 years giving it long experience in the industry. Lush Company caters to the local market in China and has specialized in the product demands of the local population and tailored the product to suit the particular needs of the Chinese target market. Its employees number 1200 giving it good human resource. Lush has also invested in e-commerce offering customers its products even where it does not have retails and wholesaler stores. They vary their prices in response to the market. In their promotion strategy Lush aims to protect its reputation and maintain its image. Their products they have chosen to use to promote the quality of their product is care butter, Tuca &Tuca perfume, Tuca& Tuca massage oil, and Black stocking. Regulatory Environment for the industry In China, the regulatory environment would regulate cosmetic products. This is because although a company would use the Automatic import licensing granting its cosmetics products freedom from import controls, the importation of materials like plastic need monitoring. FDI regulations and implications for BSI plc China is becoming the greatest receipient of FDI and as such it is poised for economic growth and increased capital that places BSI plc in a great position for growth if it makes investment. The government regulates foreign investment according to WTO regulations and its economic goals where China is now quite open to and is keen to attract foreign investors. Argentina Target Market potential The market potential in Argentina is high at 41250000. This is calculated from number of potential consumers, the frequency with which the consumers buy in a year and the price of the product. This represents the potential of the cosmetic industry in Argentina. Company Sales Potential BSI plc sales potential is dependent on the market share it will capture out of the potential market. If BSI plc secures a market share of 3. 5 %, it will estimate whether it can meet the demand of its target. Competitors Analysis L’ Occitane Company provides competition for BSI plc. Its main product is mini shea butter/L’ Occitane body toner. According to The body Shop (2009) BSI plc deals with sweet almond oil in its moisturizers. The location of its headquarters is in Argentina providing it with advantages of proximity. BSI plc is localized and thus there are policies that favor it against foreign companies. This helps it keep its prices affordable. L’ Occitane has been in business for the past 34 years giving it long experience in the industry. L’ Occitane Company caters to the local market in Argentina and has specialized in the product demands of the local population and tailored the product to suit the particular needs of the Argentinean target market. Its employees number 2000 giving it great human resource. L’ Occitane has also invested in e-commerce offering customers its products even where it does not have retails and wholesaler stores. They vary their prices in response to the market. L’ Occitane uses advertising, personal sale and product promotions as its promotional strategy. The products it uses include shea cocoa butter, Almont body care, verbena liquid soup honey and lemon scented and summer Travil Hair care. Its target market is 14 years and above both male and female. Regulatory Environment for the industry In Argentina, one of the key regulations would be in business conduct and tradition. Companies have to publish their Technical barriers to trade (TBT) measures. It contains duty and obligations related to the business and operation of TBT investigation Points. Companies have to confirm their recognition of the Code of Good Practice. Argentina the Bureau of Customs is the governmental agency is strict in the enforcement of the tariff and Customs laws and regulations. Importation of goods is governed by a numerous of import policy. FDI regulations and implications for BSI plc Argentina is currently not attracting much foreign investment due to its slow economic development and inflation rate. Although the government is using the WTO regulations and working hard to increase investment, there is difficulty for foreign companies because of high interest rates.

Services Marketing and Customer Relationship

Spring 2010 (Jan-Jun) Master of Business Administration-MBA Semester 4 MK0006 – Services Marketing and Customer Relationship Management – 2 Credits (Book ID: xxxxxxx) Assignment Set- 1 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q. 1 a. What do you mean by physical evidence in services? Give examples. (5 marks) b. Write a note on service development. (5 marks) Q. 2 a. Briefly explain the terms â€Å"customer expectation† and â€Å"customer perception†. (6 marks) b. What are the different bases for segmentation? 4 marks) Q. 3 Recall the different services offered in a bank. Evaluate the different characteristics of services that you found excellent, average and poor in the particular bank. How do you think the bank can improve its services? (10 marks) Spring 2010 (Jan-Jun) Master of Business Administration-MBA Semester 4 MK0006 – Services Marketing and Customer Relationship Management – 2 Credits (Book ID: xxxxxx x) Assignment Set- 2 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q. 1 a. Discuss strategy formulation and implementation in services. (4 marks) b. Explain the scope of CRM. (6 marks) Q. 2 a. What do you mean by CRM? What are the emerging trends in CRM? (5 marks) b. Write a note on service quality with an illustration. (5 marks) Q. 3 Determine a service marketing mix for an established airline. Assume that the airline operates in more than 30 different countries and its customers are mostly regular ones. How can it distinguish its services from other competing airlines, so as to attract newer passengers? (10 marks)

Relationship between benefits sought and consumer profiles in Essay

Relationship between benefits sought and consumer profiles in different market segments - Essay Example in relation to its main competitors. The management decision problem for the research was finding of the relationship between benefit sought and consumer profiles in different market segments. The research question for the study was that how can Apple Inc. examine benefits sought and consumer portfolios to bring continuous improvement in market performance. The researcher collected the data in a proper format using questionnaires and analyzed it from all aspects. The researcher thoroughly researched the internal and external business environments’ factors of the selected company by visiting different people related to the company, as well as some customers. Along with that, the researcher also collected information about the company’s market performances and compared them with the performances of its competitors. The whole research took around two months, which included, visits to different people, collection of information, analysis of the collected information, and pr eparation of the report. 2. Background Research Apple Inc. is an American multinational firm, which deals with the manufacturing and selling of electronic products. Some of the main products, which Apple Inc. develops for its customers, include computer systems, laptops, iPhones, iPods, and IPads. The company’s headquarters are based in California. The company has employed over 60,000 employees all over the world. Apple Inc. tends to protect its market share by delivering high quality products to the customers. The company earned nearly 105 billion dollars in 2011 going ahead of its main competitors, which include Dell Inc. and Hewlett-Packard Company. The figure reveals its market share in the world of digital electronics. Apple’s successful marketing strategy has been the key to the achievement of competitive advantage for the company. Apple’s target market includes people who like to have a better user experience with the products and are willing to pay a bit more for quality. Apple’s target market also includes professionals, technology lovers, and businesspersons. This research paper would cover the ways benefits sought and consumer profiles can help Apple Inc. gain success in the world of digital electronics. The researcher would examine different internal and external business factors and their relationship with the performance of the company. There is not much research carried out in these areas in the past, which is the reason why I want to explore these areas. Moreover, there is also a need to find out the mechanism using which Apple Inc. can achieve a sustainable competitive advantage in the local and international markets. 2.1 Literature Review External and internal business environments play a vital role in improving performance of a company in the market. The main point of consideration for a company is the way it deals with both external and internal environments. External business factors include economic factors, te chnology factors, social and cultural factors, political and legal factors, and competition.1 â€Å"Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class†.2 Some of the internal factors of a company’s business environment include employees, capital, cash flows, stability, and risk-taking.3 For any company, the main mission is to get competitive advantage in the market by achieving high graph of sales. Companies use an appropriate marketing mix to achieve this mission. â€Å"

Financial accounting Research Proposal Example | Topics and Well Written Essays - 2750 words

Financial accounting - Research Proposal Example Asset Liabilities Equity Income Expenses. UNDERLYING ASSUMPTIONS Two core assumptions applied while making financial statements are: 1. Accrual Basis: Accrual basis of accounting record the revenues when realized and incur expense when they occur. All the income and expenses are recorded in the accounting record when they actually occur not at the time when cash has flown in or out of the business activity. Therefore in accrual base accounting all the records are reported in the financial statements in the period to which they relate to. Example: Following example adopted from Gibson, Charles H., 1998. Financial Statement Analysis: Using Financial Accounting Information, 7th Ed. South Western. Slight numerical values have been altered. Suppose: 1. Manufacturing concern sold merchandise for $15,000 on credit this year. This merchandise cost $900 when purchased last year. 2. It purchases inventory this year in the amount of $20,000 on credit. 3. Paid to suppliers f merchandise $13,000 this year. 4. Collects cash sales $7,000. Accrual Basis Cash Basis Sales $ 15,000 COGS $ 9,000 Income $ 6,000 Receipts (inflow) $ 7,000 Payment (outflow) $ 13,000 Loss ($ 6,000) It is seen that accrual basis shows a profitable position where else cash basis indicates a loss. Cash basis doesn't indicate the time period for the recognition of revenue and occurrence of cost. It shows the cash inflows and outflows. For this purpose separate statement is prepared whish shows the cash position and named as Statement of Cash flow. When using accrual basis of accounting,...The end users of the financial statements can be customers, investors, suppliers, government agencies, student body, economist or general public. The International Accounting Standard Board, a privately owned body based in London presented a document in July 1989 which became framework for the preparation & presentation of financial statements. On this framework all the IAS are based and determine the financial statement preparation and the information they contain. Accrual basis of accounting record the revenues when realized and incur expense when they occur. All the income and expenses are recorded in the accounting record when they actually occur not at the time when cash has flown in or out of the business activity. Therefore in accrual base accounting all the records are reported in the financial statements in the period to which they relate to. It is seen that accrual basis shows a profitable position where else cash basis indicates a loss. Cash basis doesn't indicate the time period for the recognition of revenue and occurrence of cost. It shows the cash inflows and outflows. For this purpose separate statement is prepared whish shows the cash position and named as Statement of Cash flow. Going concern assumption believes that business entities will remain in business for indefinite period of time. That the operations will continue in the future years.

Regionality Writing Portfolio Essay Example | Topics and Well Written Essays - 3000 words

Regionality Writing Portfolio - Essay Example Influence slave trade produced on the African continent is immense, for nearly 400 years of slave trade deprived Africa of around 12.5 million of labor force. Buying slaves – previously captured people of other ethnic groups and tribes – from coastal kingdoms, Americans and Europeans halted development of the entire West Africa through affecting local husbandry, agriculture and handicraft (Rowntree et al., 2014). Moreover, collaboration and grafting leaders of coastal kingdoms, the traders instigated conflict between different African nations and eventually caused wars. In the internal wars, Africa hardly had any wealth accumulation and lost around 100 million of labor force, for many able-bodied people died. At the same time, establishment and strengthening of economic and political entities was heavily impeded by the fact that many African communities had to hide from the slave traders through relocation of their settlements and thus were more interested in survival t han in development of countries or increase of economic might. In general, Atlantic slave trade that thrived until the 19th century facilitated the flow of labor force from Africa’s interior to the expanding territories of the New World, which were in need of more workers. As a result, many African regions were left underdeveloped and rather poor due to lack of labor force and – owing to efforts of their future colonizers – absence of efficient centralized states. This made Africa vulnerable to further colonization by European state.