Kings philosophy Essay

The aim of this essay is to critically evaluate platos justification of rule by philosopher kings. First the essay will try and stress how plato understood the way the state has to be governed in conjunction with philosophy. In Platos most famous work Republic he puts forward the view that only the study of philosophy would allow man to see what was good and just. Therefore to cure the ills of society it would be necessary to either make kings philosophers or make philosophers kings. I intend to show how Plato justifies this view and then attempt to point out some possible problems with this justification . Platos starting point was his recognition that justice was one of four cardinal virtues, along with wisdom, courage and moderation, that when working harmoniously together in a high level of order – he felt equaled the elusive good life . Kahn and Charles (2004). Plato thought that the best way to discover what justice was, was to create a perfect soul – this he did by first creating a theoretical perfect city , which would have a good soul and all four virtues. Using the theory that the polis is the individual writ large he intended to compare his perfect city with a perfect person and subsequently evaluate justiceTarà ¡ (2001) Plato s perfect city was to be a model of order, efficiency and discipline. Above all it would be governed by the strict adherence to what White refers to as the natural division of labour . This was to take the form of vocational and social division within the city. Everyone had one job in order to specialise and become good at it. We forbade our shoemaker to try his hand at farming or weaving or building and told him to stick to his last, in order that our shoemaking should be well done. Kierkegaard, (1992). More fundamentally however the city was to be divided into three distinct social classes, in which pe ople would be raised from birth. These classes consisted of the producers, the guardians and the rulers. These correlated to a high degree with their microcosm in the individual soul in which they took the form of reason, spirit/emotion and appetite/desire. The producers were to be the farmers and artisans who were responsible for the supply of food, clothing and other such essential but basic needs. They would be highly specialized and allowed money and private property as their main incentive. In the individual soul the producers equated to desire as they were not governed by true reason. In the same way that ungoverned desire e.g. I must eat this cake even though it is not mine, created conflict in an individual that must  be controlled, the producers were susceptible to the temptation to take land with better soil or more area for example. Therefore a second class was necessary – to protect from both internal and external threats and keep both the city and the soul in order. The perfect city maintained order by using guardians, the guardians were the warrior class that protected the city. These warrior characteristics made them a potential internal threat, so Plato decided to neutralise volatile factors such as greed or envy by denying the guardians access to money or private property. The guardians equate to the spirited or emotional side of the soul, which was usually tamed by reason, but might spontaneously follow desire. Nails, (2006) The third class in the perfect city is by far the most important and complex. Rulers were chosen from the guardian class on the basis of aptitude (but with some degree of assumption of hereditary traits). Plato felt that as a pre-requisite to rule they must have a thorough understanding of the theory of forms including the essence of justice and the other virtues and ultimately the true essence of good by grasping which the philosopher will finally achieve a full understanding of all the rest. Vlastos,(2006) . Plato explains in his allegory of the cave, along with his theory of the line and the sun, how the philosophers who understand the theory of forms are the only ones with true objectivity and how the rest of society is merely staring at shadows – mistaking them for reality and so they would believe that the shadows of the objects we mentioned were in all respects real Therefore by the theory of forms a philosopher is able to release himself from the subjective world of the rest of humanity and enter the world of objective views. Salli (1999). The distinctive step which Plato has taken by the time of the republic is to suggest that forms which are the object of definition are entities in themselves, subsisting outside time and space, in which particular things come to share or which they imitate . The ruler class then is selected by aptitude and educated through a rigorous process until his understanding of the theory of forms is so complete that he understands the forms of the virtues of justice and even good, this then entitles him to rule. Plato connected the rulers with the reason aspect of soul. Just as the rulers were able to judge right or wrong for the city, the souls calculating part told a person the rational side of a situation. Plato  consolidated all of this with the myth of metals taught to all, whereby the rulers had gold in their veins, the guardians silver and the producers iron and bronze, but they were all brothers and should all be happy in their situation. For the perfect city all three classes must work in harmony – the producers making materials, the guardians protecting and ensuring stability from both above and below, and the rulers determining through their enlightened reason what was good or bad. The soul would work in a similarway. Melchert, (2002) Plato felt that he had now found justice through the concept of the ideal city and soul. If the soul was in order then the cardinal virtues of wisdom, courage, moderation and justice would exist in the person. The wisdom was present in the rulers of the city and the calculating part of the soul. The courage was present in the guardians of the city and the spirited part of the soul. Moderation was found when all three groups of the city and soul worked together, moderation was best seen in the soul when all three parts were equal, moderation showed harmony. Justice was created when every part was doing what it was supposed to do. With all of these different parts put together Plato created what he considered to be the ideal city and soul. Vlastos,(2006). It can be seen from his point of view, therefore, that philosophers must be rulers as they are the only ones with true objective understanding of justice and good as defined by Plato and are therefore the only ones competent to lead t he rest of the population towards them. There are however a number of problems with Platos argument. In his ideal city where philosophers are kings, it is necessary for order and efficiency that everybody sticks just to their own job – this is fine in theory but would soon lead to a lack of unity through a lack of understanding, empathy and therefore sympathy. Without these the obligation to help each other would soon be overrun by a lack of motivation. This would throw the whole system out of kilter. Plato may have argued that this may have been circumvented by education but he seems fairly a dam Anton a strict division of labour. This phenomenom would also spread to natural disaster, for example if the city was to burn down there may be insufficient carpenters to rebuild it, or insufficient doctors to treat disease. Plato himself admits that once philosophers gain the knowledge of the good they would usually prefer to reflect on it, rather than sully themselves in actual politics. To go back to the allegory of the cave, once they have discovered the real world, what motivation would they have to enter the dark world of the cave and participate in the pointless games? He argues that they will do it because they are just men and that their reluctance is not only a good thing but is actually necessary as it prevents dissension and strife over who shall rule. I think that in reality some would be unable to overcome their reluctance and that those who do enter face a very large chance of being corrupted by their superior knowledge. Plato makes the huge assumption that knowledge of the good is sufficient motivation to act in a just way, this, I feel , is a very dangerous assumption and the corrupting influence of power has been proved time and again throughout history. As Karl Popper quotes I think we must face the fact that behind the sovereignty of the philosopher king stands the quest for power. Argument can also be found in the works of Aristotle that dispute Plato s claim that philosophers should be king. Aristotle felt that Plato relied far too heavily on theory and disagreed with Plato s theory of forms, instead believing that actual instances in this world (rather than other-worldly forms) were the key to universals. This heavier reliance on experience allowed a more amateur approach, rather than years of formal training, to be acceptable. Another argument against Philosopher kings stems from the Christian influence. The core-belief of Christianity was that faith, rather than reason, held the key to salvation and so the good life , This created the need for a separate private and public sphere that would be unacceptable in Plato s ideal city. This would be compounded by the democratising effect of faith – which all can have, rather than reason which is restricted to the few. In modern times the faith aspect of the separation of public and private spheres has significantly diminished, however it has been replaced by a fierce belief in individualism that is underwritten by a nebulas concept of equality enshrined in individual rights and constitutional checks, perhaps based ultimately on the free-for-all concept of capitalism. Nails,(2006). In conclusion can be observed that even during platos days the philosopher king could have been difficult to achieve  because let alone any other since then given the nullifyi ng concepts from Aristotle to Christianity to Capitalism. I tend to agree to some extent with Karl Poppers view that Plato allowed himself to be seduced by the idea (as many others have since) that he (and his theoretical like in the philosopher-kings) were the only ones that could see objectively and so should rule. It is a trap more dangerous, possibly, than any other and democracy (in the modern, rather than Greek sense), its antithesis, is a far safer – if far less than perfect alternative. REFFERENCES Kahn, Charles H. (2004). â€Å"The Framework†. Plato and the socratic dialogue: The Philosophical Use of a Literary Form. Cambridge University Press Kierkegaard, Sà ¸ren (1992). â€Å"Plato†. The Concept of Irony. Princeton University Press Nails, Debra (2006). â€Å"The Life of Plato of Athens†. A Companion to Plato edited by Hugh H. Benson. Blackwell Publishing Tarà ¡n, Leonardo (2001). Collected Papers 1962-1999. Brill Academic Publishers Kraut, Richard (Ed.) (1993). The Cambridge Companion to Plato. Cambridge University Press Melchert, Norman (2002). The Great Conversation: A Historical Introduction to Philosophy. McGraw Hill. Salli John (1999). Chorology: On Beginning in Plato’s â€Å"Timaeus†. Indiana University Press Vlastos, Gregory(2006). Plato’s Universe – with a new Introducution by Luc Brisson, Parmenides Publishing

The evolution of job design

Job design refers to the content of the job along with its nature, requirements, in short it is the job that the hired employee is expected to perform in the organization. This has held a lot of attention from the managers, as their prime goal is to maximize their profits which can be done only when there is good job concerning designing and structure. In the light of ever increasing competitiveness, job designing has gained even more importance as it got in early 1970’ around which time it started gaining some attention.The reason for the switch in interest and its mounting popularity is that in early 1970’s the competitive edge started gaining momentum which caused other serious problems. To cater to this change in the market, the managers choose to improve their internal processing before hiring consultants or blaming the outside party. So the word job description was very important in that era. After the 1970’s, came the period of major changes of the stock m arket along with overall recession period in 1980’s which further increased and leaned upon job designing factors. In this period the recession acted as a fuel to further increase in this stuff.Then comes the 1990’s and the current year, in which it is obvious that the gain in job designing occurred because of the recession in the previous decade whose effect has spilled upon the next (1990’ era). In this era the managers are experiencing the optimal level of risk and challenge for which highly defined and formal job description is now being required by the organizations. So the word job description moved through these era’s where in each specific area it underwent a slight change and had more risks and importance attached to it. Because of this increase in the risk the managers are giving it more and more importance.

Big Bad Caravans Involvement in Forged Advertisement Free Sample

You are Required to Identify Legal Issues, Relevant legal Authority and Describe how you Intend to use this Legal Authority in relation to the Research Hypothetical Questions. George and Mildred, a married retired couple, had been planning to travel in and around Australia in a huge caravan. They had saved a huge amount to do so as they wanted to travel after they retire from their respective jobs. They made their respective research on the internet regarding the caravan, in order to get the best possible result, as their own caravan. After conducting all their respective researches, the couple approached Frank Snood, who works for Big Bad Caravans, as the sales executive. After making all the research and other respective aspects, the couple decided that they need a 20feet long caravan, with all the modern day perks, such as TV, toilet, shower and a pop out BBQ.   After respecting all their requirements, Frank r mended them to buy "victory 2000" which met all their requirements and was within their respective Pallas weight. Frank had told them that the total payload was 300kg as stated by the manufacturer of the caravan. It was mentioned that the total extra weight, which they can carry is as per this weight scale. Other than this, there was an advertisement which stated that the caravan is available at a discount of $20,000. This tempted the couple and they bought the caravan as soon as they saw the advertisement. Not only this, they had even bought an extended warranty for an amount of $1,000, which stated that all the major repairs and other aspects of the caravan will be maintained by the pany for the next 5 years.   A contract was signed between both the parties and the couple did not read the contract as they thought all the information was provided by Frank.   But this was not the case. Later they get to know that the payload weight of the pany includes all the availabilities in the caravan already. And they were just left with 5kgs for their clothes. After about 11 months of the caravan, or precisely, after travelling for 11 months, the tires had blown and the vehicle was about to crash severely. The insurance pany had refused to pass the claim as it was significantly due to excess payload. And when the couple approached the pany to avail the feature of extended warranty, they were told that damage caused by mishandling or improper use is not covered. Not only this, they even realized that the pany had just forged the actual rate of $100,000, to show the discounted prices of $80,000, to attract the customers.  (Monash University, 2015) The Contract Act, 1984, section 23 states for a fact that any person or persons, who states an information to another person or persons, to ambiguously effect its own interest, or leads to situation of letting a person buy or do things after giving any misinformation is considered to be against the law and breach of contract.  (Government, 2015) Section 27A also states for a fact that, if most of the information as known by any of the party is not disclosed to the concerned parties or misrepresented in the form, where their own interest is being satisfied should be considered as an illegal aspect for the government to take strict action against the party. (ACU, 2012) Section 69 of the Contract Act, also states for a fact that the parties involved in these aspects should be notifying clearly about the life insured of the person or any modity. These are the three most important sections of the Contract Act, which are applied in this case of the couple, George and Mildred and the Frank and the Big Bad Caravan[1]. monwealth Consolidated Acts, 2016) In the current scenario, George and Mildred can file a suit against Frank and the Big Bad Caravans as they have misled him with the product big time. Not only this, they showed them a fake price of the product and a forged discounted rate. This is one of the major reasons for the pany to be in the court under the section 27A. As per the court of law , section 69 also states for a fact that any sort of misreprestantion will not be spared. For example, in the current scenario, the warranty for which the couple has paid $1,000 was not entertained effectively. Not only this were they not even informed regarding the fact that many of the claims regarding the tyre bursting aspect is not being acknowledged only. For this reason, the pany can then be taken to the court leading them to have a beneficial aspect as it will help the couple in attaining some amount of the claim.  (ACL, 2012) Other than this they can even take the whole scenario to the court under the above mentioned sections as it would ultimately lead them to make sure that they get the claim for the amount of money that they are suppose to get. And also for the forged advertisement and aspects which are being adopted by the pany to succumb the customers and the normal people.  (Miller, 2014) In order to conclude, it should be said that in the current case, Big Bad Caravans will be convicted by the court as they are being involved in forged advertisement, of their respective products. This will ultimately get the whole case in front of the court and Frank would be convicted then. It is, according to this scenario, George and Mildred will be able to have their claim from the pany and the insurance people too. Their total amount of insurance is being avoided as well, because of which, it is very much necessary for them to make sure that the whole scenario is exposed under the law . The advertisement, which showed the discounted price of the product, is one of the reasons for the pany to be under the radar, and George, being the plaintiff, should bring this under the court of law. According to the sections of the Contract Act, Frank and Big Bad pany would be convicted under the law and appropriate action would be conducted by the court. (J, 2012) (Australian Government, 201 6) ACL. (2012). Overview of Australian contract law. Retrieved March 28, 2017, from www.australiancontractlaw : https://www.australiancontractlaw /law.html ACU. (2012). Contract Law. Retrieved March 28, 2017, from libguides.acu.edu.au: https://libguides.acu.edu.au/c.php?g=234001&p=1553409 Australian Government. (2016). Insurance Contracts Act 1984. Retrieved March 28, 2017, from www.legislation.gov.au: https://www.legislation.gov.au/Details/C2016C00820 Commonwealth Consolidated Acts. (2016). INSURANCE CONTRACTS ACT 1984. Retrieved March 28, 2017, from www.austlii.edu.au: https://www.austlii.edu.au/au/legis/cth/consol_act/ica1984220/ Government. (2015). Australian Contract and Consumer Law. Retrieved March 28, 2017, from https://www.australiancontractlaw /: https://www.australiancontractlaw / J, C. (2012). Contract Law in Australia, 6th Edition (Paperback). Retrieved March 28, 2017, from store.lexisnexis .au: https://store.lexisnexis .au/product?product=contract-law-in-australia-6th-edition-paperback&meta_F_and=9780409330199 Miller, J. (2014). Doing Business in Australia: Contract law. Retrieved March 28, 2017, from www.claytonutz : https://www.claytonutz /knowledge/2014/june/doing-business-in-australia-contract-law Monash University. (2015). mercial law: Contract law. Retrieved March 28, 2017, from guides.lib.monash.edu: https://guides.lib.monash.edu mercial-law/contract-law Similar case has happened in the Masters Vs Cameron 91 CLR353 End your doubt 'should I pay someone to do my dissertation by availing dissertation writing services from

You pick title Essay Example | Topics and Well Written Essays - 500 words

You pick title - Essay Example The word â€Å"republic† is the combination of two Latin words, res meaning â€Å"thing† and publica meaning â€Å"public.† A republic is a form of government whose sole ‘owner’ is the people who form it. Practically speaking, a republic is a political arrangement which does not have a monarch and which has governmental institutions which represent and are accountable to the people. A republic calls upon its citizens to perform duties to it like defense, electoral participation, obedience to the law, and loyalty to its constitution. A republic envisions a society of property-owning men for whom freedom and the pursuit of happiness are defining principles, provided those freedoms and pursuits do not infringe upon those of another. In a republic every citizen enjoys political equality before the law. There are no recognized aristocracies, no ruling classes, and no rights of birth. The government only has the right to exercise those powers which have been specifically delegated to it. By treating each of its citizens equally and by giving to them voice in government, a republic seeks to rise above the tyranny, despotism, corruption, and unaccountability which were so much a feature of m edieval Europe. Government, in Lockean terms, is a necessary evil which must be limited and accountable in order to be just. It is that justice which the American republic has ever sought uphold. America of the 1780’s was one of economic and political turmoil. Because the government of the Articles of Confederation held no national powers of taxation, it could not fund its affairs without the consent of all the states, a result which was hard to come by. Currency and inflation were also serious issues for the newly founded American Confederation. A national government, on the other hand, would provide one, stable currency. In the 1780’s many states faced bankruptcy. As well,

Headscarf Ban In France Essay Example | Topics and Well Written Essays - 2500 words

Headscarf Ban In France - Essay Example Though, Islam is the highest growing religion, and calculation approximately proposes that they will outnumber Christians sometime approximately by the year 2020 (Secularism 101, Online). Each religion appears to have some wisdom of the "sanctified" - counting holy texts, sacred times, and holy places. Islam is surely not extraordinary in that consideration. That which is blessed is measured particular, sacred, sanctified - understanding what a belief observes as sacred can go a long way in serving one comprehend more about the religion itself and the approach in which it compact with outsiders. Unnecessary to say, secularism had not forever been observed as a widespread good. Yet nowadays, there are many who not simply fall short to discover secularism and the procedure of secularization to be advantageous to society, but in fact argue that it is the foundation of all of society's evils. According to them, discarding secularism in errand of a more openly religious foundation for politics and civilization would create a more steady, more ethical, and eventually improved social arrangement (Cline, Secularism 101, Online). The application of hijab among Muslim women is one supported on religious principle, even though the Qur'an does not permit it. In its place, it appears from the Hadith of Sahih Bukhari. The Hadith, the "custom of Mohammed," discloses the knowledge of the Prophet to supporters. Bukhari's description of this text is normally observed as the customary one, even though plentiful versions survive. In a very extensive logic, the relation the Hadith has to the Qur'an be like the New Testament's to the Old in Christian scriptures (Hijab In The Workplace Q&A, Online) From the studies of Hadith, Prophet Mohammad said "My Lord agreed with me ('Umar) in three things... (2) And as regards the veiling of women, I said 'O Allah's Apostle! I wish you ordered your wives to cover themselves from the men because good and bad ones talk to them.' So the verse of the veiling of the women was revealled" (Bukhari, v1, bk 8, sunnah 395). One portion of the Qur'an is mainly frequently cited in maintaining of veiling. It affirms "O Prophet! Tell thy wives and thy daughters and the women of the believers to draw their cloaks close around them. That will be better, so that they may be recognized and not annoyed. Allah is ever forgiving, merciful...." (From translation of the Qur'an). The intention of the hijab, frequently worn as headscarf, is to conceal a woman's beauty. All Muslim women are requisite to be dressed in the hijab according to Islam. Except, with the exemption of Iran and Saudi Arabia, women in Muslim countries have the liberty to decide to whether to be dressed in it or not. Their husbands or fathers can never force women. The hijab is a performance of respect and shield against the immodest looks of others. When any Muslim women intermingle with others, people critic them by their intelligence and personality, not by their appearance. The hijab also assist keep them from infusing sex into whichever relations (Souheila, Online). The Hijab also assists a woman control her actions and character. With the hijab, one cannot spotlight surplus on looks,

Commercial Passenger Airline Service Industry Research Paper

Commercial Passenger Airline Service Industry - Research Paper Example Most of the small aircrafts offer exclusively business classes thereby carrying only a few people who are willing to pay a higher charge for the high quality services (Cento 11). Apparently, the demand and supply of the airline services is dependent on a number of factors. Some of these factors are positive attributes which boost the industry to become more competitive as opposed to other modes of travel. The negative factors affect the profitability index of the airlines as they record low revenue from reduced. FACTORS AFFECTING DEMAND OF AIRLINE SERVICES The airline industry goes through turbulent times while in other seasons, the business sprouts. This is due to a number of factors that affects the demand for the services of the airline industry. Some of these factors are controlled by the industry while others are not easily controlled by the industry (Shaw 34). For example, some natural factors that affect the demand for the services of the airline industry are not easily contro lled by the airline industry. Therefore, it is in the best interests of the airline industry to make sure these factors are not adversely affecting the demand for the services. The first factor that affects the airline industry is political stability. The politics in different places of the world are dependent on the political environment. Politics is an aspect that affects virtually every service and production industry (Fojt 22). This is due to the political orderliness that comes when the political environment is stable. When the political environment is stable, there is perfect supply and demand for services and products in the market. This is the same approach that is used in the airline industry. Many people would like to travel when the political environment is calm. For example, when there is political tension in a particular country, many people fear for their lives. As such they are not likely to travel to such places. This will affect the airline industry as it will strug gle with a low demand for its services (Ben-Yosef 23). Apparently, many people are not likely to travel when there is political instability in a country. In some instances, many people would prefer to postpone their vacations when there is political instability in an area. This will have direct and dire effects on the airline industry since there will be a low demand for the services and products of the airline companies (Cento 7). However, when there is political stability in most places where the industry operates, there are many people that feel the urge to travel. This will ultimately increase the demand for the services of the airline industry. Security is one factor that affects the demand for many services and products in the world. Security is an ultimate factor that affects their demand and supply for services. For example, when there is insecurity in an area, the demand and supply of services and products will be halted. In some instances, there is a curfew due to security reasons. As such, business operations are limited to the stated times. This is the same scenario that happens in the case of demand for airline services. Many people prefer secure places when they are traveling. As such, they will only consider traveling when there is steadfast security. Though airline industry tries to limit cases of insecurity, some instances are not controllable. For example, when there were terror attacks in September 11th, many people felt that the security

The Historical Influences in the Architectural Design of the Essay

The Historical Influences in the Architectural Design of the Westminster Abbey - Essay Example The exterior is as much remarkable as its interior. The dominant gothic architectural design - its towering pillars, towers and stained glass, takes its patrons and visitors back to the English medieval times. The prestige of Westminster Abbey’s architectural design cannot be separated from the historical events that moulded it to its present reputation. From the its foundation as an abbey by King Edward the Confessor in 1052 to its glory days as a gothic church under the initiative of King Henry III in 1245, Westminster Abbey owes its existence to the religious passion of its patrons. Given the context, this paper focuses on the historical events that led to the key developments of what is the Westminster Abbey today. By expounding on the topic, a historical methodology could not only give light to the origins of the church, but it could also relate historical context with architectural design and style. This paper is thus intended to explain Westminster Abbey’s rich a rchitectural history. The utilization of secondary sources such as books and journal articles, together with ample photo documentation, are used in order to accomplish this paper’s purpose. ... It then tackles the entrance of the 12th century and the important contributions of King Henry III to the creation of a magnificent gothic church at England’s capital. The second portion deals with the church’s architecture. An analysis of the exterior and interior aspects of Westminster Abbey is conducted by streamlining the various designs and styles, which produced the outcome. Such analysis is then related to the historical context of the church’s formative years in order to produce a conclusive account of architectural history. The Abbey in its Formative Years in the 11th and 12th Century The 11th century was included in the 3-century span of the Central Middle Ages, from 1000-1300, where the disintegration of the strong Roman Empire was realized in the Early Middle Ages. During that century, a direct by-product of the previous years caused the apparent struggle between the Holy Roman Empire and the Papacy in Rome, not to mention the autonomy instituted by t he Eastern Orthodox Church in the Byzantine Empire (Bennett and Hollister, xv & 266). On a political standpoint, it was clear that religious strife that would establish dominance over Europe was as important as the clash of kingdoms and empires. As religious monarchy flourished in the name of the propagation of a certain religious denomination, independent nation states began to emerge as well. England was well underway in line with a monarchical leadership. The sacred monarchy carried by religious kingdoms in the Early Middle Ages evolved into a bureaucratic monarchy in the Central Middle Ages. Royal administration with a systematic distribution of powers was the one that England had adopted in the 11th century (Bennett and Hollister, 266). Though a secular state, the influence of the church

Internship Article Example | Topics and Well Written Essays - 1250 words

Internship - Article Example Since then the concept has gained significant popularity in the operations of different organizations. Research has shown that there is no organization that can survive in the long run without learning. A learning organization is conceptualised as a place where the employees create, acquire as well as transfer knowledge in their operations (Garvin, Edmondson, and Gino, 110). Basically, a generally accepted definition of learning is â€Å"any relatively permanent change in the behaviour of a person that occurs as a result of experience (Robbins, 110). In an organization, employees can exchange ideas that in turn lead to the creation of knowledge that permanently changes their behaviour. This change in behaviour as a result of new knowledge created helps the employees in the organization to keep pace with the changes they may encounter as well as to deal with challenges they may also face in their operations. In order for learning to take place, three factors known as learning blocks should exist and they include the following: (1) a supportive learning environment comprised of factors such as psychological safety, openness as well as appreciation of differences. (2) concrete learning processes and practices comprised of measures that are designed to foster learning, and (3) leadership which mainly reinforces the process of learning. The behavior of leaders influences the learning process of their subordinates. The second article by Kolb Alice Y. & Kolb David A. titled â€Å"Learning Styles and Learning Spaces: Enhancing Experiential Learning in Higher Education† focuses on how experiential learning can be enhanced in higher education. The experiential learning theory manly draws from the work of 20th century scholars such as Dewey, Lewin as well as Pieaget among others. These scholars give experience in the learning process of humans.

Roles of Emotional Appeals in Decision-making Essay

Roles of Emotional Appeals in Decision-making - Essay Example While some individuals argue that we make decisions through critical thinking, most of our decisions are made depending on our emotions (Fill, 2009, p. 19). Our moods and feeling towards particular ideas or items critically shape the decisions we make concerning that idea. For instance, a business manager coming to work loaded with stress from family issues is likely to spend the whole day making poor and inaccurate decisions at work. In addition, the same manager is likely to change the way he or she is treating people on that particular day. Therefore, emotions also determine how we relate with other people in our daily lives. Emotional appeals have the same effect in the business environment. They influence the way in which both business and customers make their decisions. Therefore, emotions have a significant impact on the effect of marketing on the customers (Fill, 2009, p. 20). While the business may market its products effectively, it may not succeed in attracting the attenti on of the customers. A business should take into consideration the emotions of its customers when advertising its products. This is because marketing triggers different emotions in the customers. Customers tend to develop different emotions and feelings towards a product or a service depending on the way it has been advertised (O'Shaughnessy & O'Shaughnessy, 2003, p. 10). ... different factors that might trigger emotional responses in customers, thus manipulating the way in which customers make their decisions (Albers-Miller & Stafford,  1999, p. 42). Colour Colour is a very significant factor that greatly affects the way in which customers perceive different products and services. Individuals have different attitudes and notions towards different colours. Other individuals also associate different colours with different types of issues. For instance, most people in the society associate black colour with evil. On the other hand, white colour is associated with purity and peace. Therefore, individuals will develop different feelings when they see black colour being used in a certain advertisement. For instance, a consumer that associates black with evil will perceive products being advertised using the colour as having a certain vice. Therefore, such a consumer will not even spend time to think of purchasing such a product. The decision of whether to bu y the product will entirely depend on the colour that has been used (Albers-Miller & Stafford,  1999, p. 43). On the other hand, the same customer may be triggered to purchase a product that has been advertised using the white colour just because he or she associates white with peace and purity. Therefore, although the products advertised in black colour might be better than the one advertised in the white ones, the emotional appeals of the customer will force him or her to purchase the bad product. Therefore, basing on colour, organisations should assess their target market to check if it is conservative. This is because most interpretations of colour come mainly from conservative people. However, some people, especially women, also have an attitude towards colour. For instance, most women

Globalization Essay Example | Topics and Well Written Essays - 250 words - 7

Globalization - Essay Example The government should assist in enlightening the masses on the projects it plans to undertake. In addition, it should provide budget literacy so that the public could understand their role and that of the government in allocation. Government has a problem of ensuring that globalization spreads in all countries in the world. The process is difficult since outreaching to the huge population is a cumbersome and expensive exercise. The government plays a major task when it comes to doing away with the stereotypes concerning globalization .Most third world countries believe that globalization leads to instability. Dealing with the menace caused by financial crises is an issue that the government cannot evade. The government has to encourage young people to go for quality education so as to be able to compete worldwide. Individuals who have low levels of education find it hard to secure jobs due to competition by the learned. Those who were employed have lost their jobs over the years. In addition, the current employment wages

Gender Stereotypes Essay Example for Free

Gender Stereotypes Essay Simply put, gender stereotypes are generalizations about the roles of each gender. Gender roles are generally neither positive nor negative; they are simply inaccurate generalizations of the male and female attributes. Since each person has individual desires, thoughts, and feelings, regardless of their gender, these stereotypes are incredibly simplistic and do not at all describe the attributes of every person of each gender. While most people realize that stereotypes are untrue, many still make assumptions based on gender. There are many stereotypes we may all be guilty of, such as assuming that all women want to marry and have children, or that all men love sports. The following is a list of some of the most common gender stereotypes as they pertain to either men or women. Remember that these are stereotypes because they claim to apply to all men or women. Female Gender Stereotypes Gender stereotypes begin the second a baby’s gender is found out. As soon as we find out it’s a girl, we immediately begin decorating a pink nursery filled with soft dà ©cor and butterflies and flowers. We assume that our daughter will be very girly and fill her closet with frilly dresses and her toy box with tea sets and dolls. What this is essentially doing, even though many parents don’t realize it, is setting our child up to be the perfect lady, and teaching her how to be the stereotypical woman. We are teaching her that girls are supposed to wear dresses, serve food, and take care of babies; the biggest and most common stereotype put on women. Have you ever watched a little girl playing house? Even as young as five or six, she is well aware that she is supposed to stay home with the baby while the husband goes to work, and she has dinner ready when he gets home. Here is another stereotype; women stay at home while men go to work. While there are a million gender stereotypes about females, these are definitely the biggest, and the most debated by feminists of today. Some other stereotypes include: Women are supposed to have clean jobs such as secretaries, teachers, and  librarians Women are nurses, not doctors Women are not as strong as men Women are supposed to make less money than men The best women are stay at home moms Women don’t need to go to college Women don’t play sports Women are not politicians Women are quieter than men and not meant to speak out Women are supposed to be submissive and do as they are told Women are supposed to cook and do housework Women are responsible for raising children Women do not have technical skills and are not good at hands on projects such as car repairs Women are meant to be the damsel in distress; never the hero Women are supposed to look pretty and be looked at Women love to sing and dance Women do not play video games Women are flirts Women are never in charge Male Gender Stereotypes Stereotyping is no different when it’s found out that a boy is on the way. The nursery is decked out in blue, his closet is filled with tiny jeans, polo shirts, and boots, and the theme is usually something like jungle animals or dinosaurs; something tough. Boys’ toys consist of trucks, dinosaurs, action figures, and video games. From the beginning boys are taught to be tough, to be protective, and to defend themselves. Boys are taught that daddy’s go to work and mommy’s stay at home; from their point of view, boys have fun and girls do all the work. Are you surprised to hear that most parents admit that they do not teach their sons how to do chores such as washing dishes or folding laundry? Instead, they teach them to take out the trash and mow the lawn; from the get-go boys are made to think that certain household chores are women’s work. This is a major stereotype, but the majority of American households  today would prove this to be true. Men are supposed to do the dirty jobs and anything that requires muscle, they are also supposed to go to work and provide for the family. Little boys see this and the stereotype continues. Other gender stereotypes that inaccurately try to describe all men are: All men enjoy working on cars Men are not nurses, they are doctors Men do dirty jobs such as construction and mechanics; they are not secretaries, teachers, or cosmetologists Men do not do housework and they are not responsible for taking care of children Men play video games Men play sports Men enjoy outdoor activities such as camping, fishing, and hiking Men are in charge; they are always at the top As husbands, men tell their wives what to do Men are lazy and/or messy Men are good at math It is always men who work in science, engineering, and other technical fields Men do not cook, sew, or do crafts Can you see how many of these actually are true of many men or women that you know? They may even be true for you personally, but they do not apply to every single man or woman alive. That is what makes them stereotypes; the fact that these things are considered, the norm and expected of every male or female. Each person is an individual and it is perfectly normal for a woman to run her own business while a man stays home with the kids. On the other hand it is also perfectly acceptable for a man to be a nurse or hate sports, or enjoy cooking. Men and women are individuals; they are more than just male or female. Our gender is only part of who we are; it does not define us as people.

Ethical Issues of Deception in Psychological Research Essay Example for Free

Ethical Issues of Deception in Psychological Research Essay In psychological studies, ethical issues associated with deception have always the major concern area. It is largely been viewed as something which in long will cause effect on participants’ willingness to be a part of any psychological research. The controversy associated with this issue has itself led to many researches to ascertain the positivity and negativity associated with the use of deception in psychological research. The findings of those researches have been contradictory. Some researcher has indicated that use of deception has a very negative impact on participant’s perception of researchers and hence reduces the possibility of its further participation in the ongoing project as well as any other research in future (Tuffin, 2005) While on the other hand there are evidences that deception has positive effect and participants have reported that they actually enjoyed being deceived and showed positive participation in the researches in which they are being deceived and feel more benefited than those without deception. Hence it becomes more evident that deception has basically no effect on participants and neither reduces nor increases their willingness in taking part in any future researches irrespective of those requiring deception or not (Lefkowitz, 2003). The above mentioned two contradictory preferences related to deception actually gives a picture which shows that the people have no clear meaning of deception and it varies from person to person i.e., they have different interceptions of what it actually means. This reinforces the need for further research and hence underscores the requirement for an expanded investigation to figure out the possible effects of deception in a prospective participant and the psychological study. The beginning of this new research could be initiated through a controlled environment when some of the participants and informed about the use of deception while some are not informed. The final objective is to ascertain the actual impact of deception when both researchers as well the participants have better understanding of deception (O’Donohue, 2003). References: O’Donohue, W. (2003) Handbook of Professional Ethics for Psychology. Sage Publication Ltd.,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   London. UK Lefkowitz, J (2003) Ethics and values in industrial-organizational Psychology. Lawrence  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Erlbaum Associates, Inc., Mahwas, NJ Tuffin, K (2005) Understanding Critical Social Psychology. Sage Publication Ltd., London. UK

Business operational plan of Apple Inc

Business operational plan of Apple Inc Apple Inc. designs manufactures and markets the personal computers along with other mobile communication services, music and digital players. It also provides hardware, software and networks solutions and peripherals. Apple Inc. sells its products throughout the world on its retail stores, online stores, through the third party wholesalers and its direct sales force. It also deals with the variety of Macintosh i.e. iPhone iPod etc. It provides the services of the complete software solutions on its iTunes stores. Its consumers are those who purchase its products directly, enterprises, educator and governments. This company is California based and founded in 1977. It has capability to design and manufacture its own operating system. Business operational plan of Apple Inc. Strategic plan sets up the business plan of a company while business plan in turn establishes the business operation plan. Operational plan is the key to run the entire business of company. Operational business plan covers the all areas of company including the finance, manufacturing, internet, operations, RD, human resources and marketing. Apple Inc. was known because of its lenient business thinking. Apple Inc. has the design, marketing and manufacturing services. Company develops designs and markets the musical players with important accessories. The business of Apple Inc. is managed on geographic basis. There are five operating segments of Apple Inc. such as America, Europe, Japan, retail and others. In US, Canada, UK and Japan Apple owned stores are currently operating. Like other organizations Apple Inc. all the departments are formed by the placing the similar functions in the groups. As described before the main divisions of Apple Inc. human resource, finance, marketing and productions are adopted by the functional approach. In each division the functional subsystem and departments create hierarchies. Operational management is linked with the production divisions activities. The people in Apple Inc. are grouped together on the basis of their expertise and resources. It enabled the Apple Inc. to learn from its functions. The present structure in Apple Inc. has focused upon those activities which reduce the costs and increase the flexibility in its operations. The managers in Apple Inc. have a greater control of the organizational activities and avoiding the tall and other several hierarchies. A relative flat structure of the Apple Inc. has decentralized the authorities and responsibilities of its management. The managers and employees at lower levels are encouraged to take part in fostering the companys strengths. The advantages of decentralization are numerous i.e. enhancing the planning, decision making and control processes. Apple Inc. has focused on its marketing operations on the major business areas like iPod and iTunes. The marketing department shows a great responsiveness to the outside world. The finance treasury division of Apple Inc. provides the financial policy to company. This department is responsible to handle the international capital transactions of company, liquidity guaranteeing and risk management. In Apple Inc. the role of the financial manager is crucial for the strategic management. The capital required for the RD is raised by the Finance division which maintains the innovation position of the Apple Inc. Internal problems of Apple Inc. were in the form of the sale force accessing directly to corporations. Apple Inc. relied on the 300 manufactures while IBM had 6000 to 7000 direct salesman. However the Apple Inc. has focused to establish more sales staff. Many issues concerning to these sales person were noted regarding the prices of products. Apple Inc. has also marketing problem as it failed to communicate the Macintoshs business image in market. The fact that marketing strategy was not according to requirements and did not make it more famous in market; i t also did not focus upon the technology. Products are manufactured on the basis of customers needs. Apple Inc. needed the fundamental importance of getting close to market. Apple Inc. possessed the organizational structure which too had the management problems. The production and shipment problems exist in Apple Inc. as the IBM its supplier experienced the manufacturing problems and delayed the shipment of various products. In a market the speedy delivery of products is critical. Due to the Apples key dependency on other companies put it at the competitive disadvantage. Human Resource in Apple Inc. has administrative tasks such as meetings, conferences, special projects and seeks the solution for the fast paced store environment. Discuss both the internal and external factors that impinge on the business operations plan. Apple Inc. has faced the serious challenges during the last 30 years but recovered from those serious situations with advent of innovation. Apple Inc. faces the threat of competition because of free services in market. A good business achieves the market share by creating better legal services to customers. It can be compared with the bottle water which is better in quality as compared to tape water which is in approach of every person. However there is legal competition ahead in market. No company was successful to attach the market the before the Apple Inc. did so. Better service is directly related with the new and better technology. Roxio was the first company which followed the Apple Inc. to produce the products on the concept iTunes Music Store. Sony and Microsoft are other big players of market to download the services. On the other hand Dell Computers are partnering with MusicMatch. Traditional retailers like Amazon and Wal-Mart have presented their own plans. Apple Inc. is f acing the competition from these competitors and profiting the leading position in market. Copy rights issues are also concerned with Apple Inc. Apple Inc. faces the issues of jobs as a part of their system. Sales force for the direct access to corporation is required for the success of business operation plan. IBM has the direct salespeople more than 6000 while Apple Inc. relied only on the 300 manufacturers representatives. The reason behind the small number of sales force may be the selling Macintoshes at lower prices as compared to dealers (Brady, 1989). Economic Conditions Apple Inc. Economic conditions of world impact directly on the performance and financial results of Apple Inc. investor must not consider the historical trends for the future performance of Apple Inc. there are several reason behind this which pose the risks on business of Apple Inc. Uncertainty about the current global economic conditions are also posing threats because business could not continue due to tight credits, negative news about finance, decline in asset values. Apple Inc. sets the prices of its products to consolidate the Dollars value. Macroeconomic factors along with other factors affect Apples business operation plan. The demand can be influenced by the increase in prices of fuel and energy, condition of mortage real states markets, consumers confidence and health labour costs. These economic factors adversely affect the demand for companys product. It also affects the operating results and financial conditions of Apple Inc. Impacts of environmental and technological changes on the business plan of Apple Inc. Apple Inc. has made efforts to satisfy its stakeholders in various ways. It included all the environmental issues for its corporate governance. It has satisfied the employees, local communities and general public by minimizing the environmental impacts on its entire business operations; integrated the sound environmental, safety management and health practices. The environmental mission statement of Apple Inc. has integrated all above mentioned practices into all business operations to ensure that it offers technologically innovative products. Apple Inc. aims to communicate on the policy which provides the benefits of environmental consciousness, safety maximization, energy efficiency and health protection to its various stakeholders. In the HRM objectives Apple Inc. has adopted the strategies because of the consumers preferences as the external environmental force. The HRM of Apple Inc. has established the partnership agreements to keep the trust and fairness. The recruitment policy of the HRM is modified in the ways to adapt the external changes in environment. Therefore the higher number of skilled staff is recruited in the area of web development; web is considered a preferred medium for the technology professionals for applications. A positive work environment has proved that Apple Inc. is outstanding for the visionary products. The organizational competency of Apple Inc. is increased by the HRM. Apple the Inc. is in an exclusive position. It has produced both software and hardware; it cannot be analyzed only the PC manufacturing company. It is also providing the software solutions, server producer and online contents. Technology Advancement The changes in technology has affected the barriers of entry and impacted the business operations of Apple Inc. The changes in digital music industry are working now on common format to make them available for the music players. The reason behind the limiting the download contents is to determine the users acceptance of Apples product. Bundle of solutions are provided by the Apple Inc. with refined and good products. By providing high quality products to end users the technology sector is making changes rapidly. These are the diversified efforts which Apple Inc. keeps its design and innovation more focused with the use of best performance and prices according to the external and internal environmental changes. Due to its distinctive competencies like product design, innovation, educational skills and digital entertainment; company has acted as a leader in the digital lifestyle. Apple Inc. has used its strengths for the purposes of creativity, technological development and innovation. It has gained competitive advantage over other companies in the industry because it offers multiple products with lower values. Organizational structure and control system of Apple Inc. improved the information and knowledge availability. For the Apple Inc; innovation and technology are the key driving forces of its mission and strategy (Morden, 1993). For the effective operation management system IT is a driving factor and management information system is the basic requirement for the strategic development. Efficiency of operation management is improved by the use of IT as it increases the quality and availability of information and leads to cost saving (Ibid, 1993). Apple Inc. is using the SAP and ERPs systems to speed up the customers orders. Apple Inc. has implemented the i2 technologies (www.industryweek.com/currentarticles). Importance of good business operations planning to the overall success of the business at Apple Inc. Apple Inc. has many successful factors that determine its success in key areas of the operations. An important factor that is apparent is about the vision of the organization. It is true that creative energy always begins with vision. These organizations impact significantly on the world (Collins Porras, 2004). Apple has a very clear and purposeful vision which can be seen through the innovative products for the last many years (Senge, 2006). The main purpose of the Apple Inc. was to develop the computers for the world and making contribution to the world by its advance technology products. Beside this vision Apple Inc. takes further steps of actions which are practiced throughout the organization. In the Apple Inc. employees were able to lay the foundations to achieve the long term goals. They were able to start the business at small scale and contributed at a higher level. The company acted upon the Kotters model and understood the potential uses. The success of the Apple Inc. is attributed to the capability of the company making refinements and building the more powerful products. The company has changed the core nature of the business. The Apple Inc. innovated the (GUI), file folder and desktop metaphor. Kotters 7th step manifests by using the credibility to make changes in system, policies and structures (Kotter, 2007). Apple uses the core competencies which the employees have acquired through redefining the market segmentation. Apple has met many successes and overcome the challenges. Apple Inc. has made changes and implemented new policies because of changing trends of computer markets. Apple Inc. is a computer technology which is best known due to its innovative structure. It is focusing upon the production of personal computers. In the advent of evolving technology it has shifted into the electronic market. Apple Inc. operates its business in more than 170 retail stores in US, Japan, UK and Canada. It has produced more friendly computers for the consumers. All of the achievements at Apple Inc. are attained through the people who design and develop the products and staff at the retail stores. Why is the business operation plan important at Apple Inc? This business operation plan is important because it generates the steady increasing revenues and sending its products in the big markets of the world. Due to its good leadership the Apple Inc. achieved the high profile. Three manufacturing facilities are shaping the foreign operation in countries like Ireland and Singapore. Due to its internal strengths and successful business operation Apple Inc. has become a competi tive company. It has footed in the computer market with an innovative style in the computer market. It production system is well handled as the operating system is free of all tangles of the Microsoft operating systems. In the physical appearance, usability and specifications; it has given a large degree of control to company. Apple Inc. encourages the RD environment and constantly releasing the products as seen in the latest Mac mini and iPod. It has made the Apple Inc. a big innovative company and brings the creative and new ideas in the computer market. Capital Structure: Corporate policy has yielded good results. Apple has paid all the debts which suggested that desired operations of company and growth of company by equity and not by the debt. Managerial qualities and resources necessary for effective business operation planning The issues in quality of products attracted the attention of business. The management concept is rendered by the wave of successful entrepreneurship. Top managers are committed to make decisions before communicating fully with all those who are involved in it. When subordinates ask for the decision the top managers think about the organizational response towards the decision for strategic plan. Ways of decision making enhance the business operations and credibility throughout the organization Apple Inc. People love to purchase the products of Apple Inc. because of power, easier way to use and reliability. The business managers at Apple Inc. ensure the delivery of the products to companies according to their requirements. Business customer contacts the business managers and long term relationships are established between them (http://www.apple.com/jobs/us/retail.html#business). Apple Inc. management has the ability to sell its products having no supply chain system. It earn the revenu e by the selling the iPod devices and Mac computers. Its iTunes virtual stores are generating the revenue more than $ 1 billion every year (David, 2010, p: 72). The managers at Apple Inc. face the incentives of using the strategies to control the earnings in many traded companies. The managers are allowed to purchase the stocks. In this way the staff at Apple Inc. is encouraged (www.sec.gov). The management system of Apple Inc. has policies and procedures, responsibilities and roles of its managers. For example a best health management system is maintained by the concerned managers to ensure the safety and health of its employees. If any inadequacy is seen in this system then top managers adopt the corrective actions including the verification through audit processes. Apple procurement managers are responsible to manage the business relationship with suppliers and coordinate the Apples supplier responsibility auditor. Apple Inc. has five divisions to manage the products and marketing departments of the company. These five divisions are responsible to evaluation and manufacturing of the devices, software and hardware of computer system. The four support divisions also work to handle the marketing and post sale products. A new position of Chief Operation Officer was created by Scully to centralize the operations and involving the senior management in the daily business decisions (Annual Report, 1988). Human Resource (HR) is responsible for the safeguarding the most valuable assets of the Apple Inc. It handles the many programs of the company to achieve the companys goals. Human resource at Apple Inc. is also responsible to reach at the needed resources. The Apple Inc. has six important valued creation functions including the marketing, RD, finance, Human resource management, information systems and operations and logistics. The chain of activities required to transform the inputs into outputs are pr imarily concerned with actual design, manufacturing, delivery, marketing of products and customer support activities. The ultimate task of the RD resource at Apple Inc. includes the new innovation and use of technology which meet the customers requirements (Hill Jones, 2004). Information system at Apple Inc. is an important asset which provides the business assisting facility. For the success of the business operation plan the information system is a core to keep the business run online without any obstacles. Other valuable resources which have potential powers for the customers as well as the management at Apple Inc. include the servers which distribute the information about Apples products and create new internet resources for the mailing list, online feedback and further open the communication lines. From the above discussion it can be concluded that Apple Inc. is a well known development and business company of the world. Its success lies in its business operation plan which indeed depends upon the various necessary actions taken from the design of the product to sale of the product.

Essay --

Zach Dulac Professor Ady Media Analysis 2 December 2013 Legal Monopolies’: Go Directly to Jail, Do Not Pass Go, and Give me back my 200$ The Trans-Pacific Partnership is a secretive bill instituted by the U.S. Government in order to allow transnational corporations the control over not only our wallets, but also our health. The TPP’s intent is a proposed trade agreement, which would create the largest regional free trade agreement established in the world today. The twelve countries currently included are the U.S., Japan, Australia, Peru, Malaysia, Vietnam, New Zealand, Chile, Singapore, Canada, Mexico, and Brunei Darussalam. Together they are estimated to account for about 40% of the world’s GDP. Free trade is a system in which removes restrictive barriers such as tariffs in order to create open markets between the countries involved. The concept of free trade is appealing to most American’s considering the state of our economy over the past five years. However, the United States has been quite secretive in releasing the contents of this agreement. Shortly before a negotiation in Salt Lake City , WikiLeaks released the contents of the agreement over its website⎠¯ revealing the reason behind the secrecy. Out of twenty-nine chapters, trade is only discussed in five of them. The TPP is an agreement, in which is intended to allow transnational corporations the ability to globally control our food, our medicine, and the Internet in order to increase their companies profit maximization. International trade has always been a pivotal part of the prosperity of the United States economy over the last fifty years. Free trade is simply international trade without tariffs, quotas, or other restrictions. It builds onto the platform of our... ...at copied and sent to the patent â€Å"enforcers†. If caught doing this three times, ones Internet access would simply be cut off. The TPP is an agreement, in which is intended to allow transnational corporations the ability to globally control our food, our medicine, and the Internet in order to increase their companies profit maximization. The U.S. government is pushing to increase patents not only in the U.S., but also around the globe. These patents vastly negatively impact our food industry, our health industry, and our Internet freedom. The outrageous mislabeling of Trans-Pacific Partnership is not about trades; it’s about stacking the wallets of the wealthy for years to come, at the expense of our global society. They should have added a subtitle underneath⎠¯ The Trans-Pacific Partnership: where your human necessities are moneymaking recipes for CEO executivE’s.

The Moral Issues of Freenet and Online File Sharing :: Internet Technology Computers Essays

The Moral Issues of Freenet and Online File Sharing The internet today is a vast network that contains nearly limitless amounts of information and media. With this immense amount of data at our fingertips, the line between right and wrong has begun to blur. The illegal downloading of copyrighted material has exploded in recent years, but a larger issue looms over the current copyrighting frenzy. It is that of the preservation of free speech in cyberspace. Should the government be allowed to limit our access to "unsuitable content"? And to what degree? These are not easy questions to answer, nor should they be. Similar questions have been raised throughout history. Freenet is a program that has been developed to provide an answer to the aforementioned question with a definite no. The following essay will explain what Freenet is and how it fits into the free speech debate and future of the internet. In this essay I will discuss the following: †¢A quick history of free speech on the Internet †¢An explanation of Freenet †¢How Freenet functions †¢Freenet's role in the future progression of the digital age †¢The illegal usage of Freenet Free Speech and the Internet The first amendment to the constitution reads: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." (Constitution) We as Americans have the right to speak our minds. We are able to criticize the government and voice our opinions in the form of voting and political debate. This is not only a right, it is vital for the survival of our country. The internet is no stranger to free speech debates. In early 1996 the Communications Decency Act was passed. This act prevented "indecent" and "patently offensive" content which included profanity and many works of classic literature that contained such material. No less than 6 months later, the CDA was ruled unconstitutional by the Supreme Court. In 1997 the Supreme Court granted the Internet full protection under the 1" amendm ent entitling it the same freedoms of print media. Two sides are now battling on a new front: the abuse of 1" amendment in cyber space through the exchange of illegal material. I will discuss this issue in more detail later.

Disease and Native American Demise During the European Conquest of the

Disease and Native American Demise During the European Conquest of the New World The European conquest of the new world was most commonly attributed to the superiority of the Europeans in all the facets of their confrontation. They had the superior weaponry, and were thought to have a superior intellect. After all, they were just bringing "civilization" to the new world, right? It sounds nice when you are learning about Columbus in grade school, but the traditional story is pretty far from the truth. The truth is that the Europeans, when they discovered this was a brand new world and not the spice islands, sought to rape the land for its gold and natural resources and enslave the Amerindians (native Americans), who were regarded to be less than human. One has to wonder why it was so easy for the Europeans to impose their will on the Amerindians. Was it solely because the Europeans were superior technologically and intellectually? Unfortunately the answer is not that simple. The Europeans were superior in those areas, but the bulk of the disaster they imposed was not what they knew, but what they brought with them, disease. Disease, on the epidemic level, is thought to be the major factor in the decline of the Amerindians during the age of discovery. Before I go any further, I feel that I should clarify the difference between the terms epidemic and endemic disease. An epidemic disease is a disease that enters into a population and completely ravages it. Epidemics are particularly destructive because they are usually diseases that have never been introduced into that specific population. A good example of an epidemic is the bubonic plague, or smallpox. Smallpox uncontrollably ravaged Europe for more than two hundred years.... ... the disease that accompanied an average race of people that made the difference in the conquest of the Americas Bibliography Crosby, Alfred W. Ecological Imperialism The Biological Expansion of Europe 900-1900. New York: Cambridge University Press, 1986. ---. The Columbian Exchange. Westport: Greenwood Publishing Company, 1972. McNeil, William H. Plagues and People. Garden City: Anchor Press, 1976. Verano, John, and Douglas Ubelaker. Disease and Demography in the Americas. Washington D.C.: Smithsonian Institution Press, 1992. Cowley, Geoffery. "The Great Disease Migration." Newsweek Fall/Winter 1991: 54-56. Snow, Dean, and Kim Lanphear. "European Contact and Depopulation in the Northeast: The Timing of the First Epidemics." Ethnohistory Winter 1988: 15-33. Diamond, Jared. "The Arrow of Disease." Discover October 1992: 64-73.

Nurses with Addiction

Nursing is one of the most stressful careers in healthcare. Long hours of direct patient care take its toll emotionally and physically. While the profession is rewarding for most, the constant stress can become a catalyst for all kinds of self damaging behaviors. The American Nurses' Association estimates between ten and twenty percent of nurses will abuse drugs within the workplace at some point during his/her career (ANA, 2002). This percentage is similar to that of substance abusers within the general population. Due to the ease of access to narcotics on the job, it can be difficult to recognize a problem in the early stages. Only once the nurse’s activities have been suspected due to medication shortage or job performance problems can intervention be made. Professionals with addiction not only risk harming themselves and their career, but put their patients at an increased unnecessary risk of malpractice. Unfortunately in November 2009, four nurses in a local hospital were found to be stealing Morphine, Fentanyl, Dilaudid, and other narcotics during their shifts. All four nurses had been employed in various departments and were operating independently of each other. Each nurse was apprehended after being observed for strange behaviors and unauthorized Pixus medication station discrepancies. According to Dunn, psychiatric and oncology nurses have the highest likelihood for drug abuse due to the constant stress and emotional pressures associated with their careers (Dunn, 2005). The lowest instance of abuse occurs in Women’s Health and Pediatric nursing (NIH, 2003). It is unclear whether this rate is due to the nurse’s coping capabilities in such areas, or the lack of narcotics available on these types of care units. Aside from disobeying the loyalty of the workplace, these nurses have violated the Nursing Code of Ethics in relation to themselves, the hospital, and the patients. Within the Nursing Code of Ethics (ANA, 2001) nurses vow to: †¢Safeguard the client and the public when health care and safety are affected by the incompetent, unethical or illegal practice of any person. †¢Participate in the profession's effort to establish and maintain conditions of employment conducive to high quality nursing care. Maintain primary concern for the patient, whether an individual, family, group, or community Fortunately, there have been no reports thus far of malpractice or injuries with any of the patients under the direct care of these four individuals. Grave circumstances may have occurred if the situation had not been discovered promptly. When serious issues occur, Risk Management must work feverishly to investigate all the patient’s records to determine if any errors occurred regard ing their care. Risk Management also has the responsibility of investigating the claims against the nurses to prove or disprove validity. Only after the investigations are concluded can the Risk Management team work to repair the reputation of the hospital and its employees. As a result of this incident, workplace respect, reputation, and ethics have been violated at the expense of drug addiction. Nurses and other healthcare professionals have a responsibility to the patient’s and the workplace to uphold a standard of care that will not jeopardize the position of the hospital, its staff, the patients or the community. When serious issues occur, patients become judgmental of all providers and institutions. The profession and the organization’s reputation have suffered because of this incident. Being a healthcare provider myself, I do not understand how a nurse could not find any other coping mechanisms besides drug abuse. Although I am not a nurse, I deal with the same daily issues associated with direct patient care. As a professional, you are required to deal with situations outside of your beliefs and find avenues to vent your frustration, grief and stress without harming the patients, yourself, or the relationship between the two. I have not come across any colleagues that take a different ethical viewpoint than me regarding this situation. We all know that stealing medications from patients for personal use is wrong professional ly, personally and legally. Perhaps our lack of understanding is due to the inability to relate to those with drug addiction. All coworkers within an organization need to be educated to recognize potential issues of narcotic abuse within the workplace. Since healthcare professionals are able to hide some signs of abuse such as work absences, it may be more difficult to recognize a problem in the early stages. Some physical signs to be aware of include: irritability, forgetfulness, isolation, and decreased levels of motivation. Issues in personal life may also increase the chances of drug abuse, such as: stress, family problems, a previous history of mental illness, and a history of prior abuse (any type). Potential issues must be reported to the Nurse Manager as soon as possible. In order for the organization to protect the safety of its personnel and patients, ethical standards of practice must been routinely stressed within the workplace. Many institutions conduct annual competencies, in-services, and /or reviews to ensure employee commitment to maintaining and promoting an ethical work environment. Conclusion Drug abuse among workers will occur in any organization despite all efforts taken by coworkers, management and the organization as a whole. Drug abuse becomes a severe ethical issue once the life of another human being is jeopardized. Those in the healthcare field have a responsibility to maintain a standard of care to patients regardless of any personal issues occurring in his/her own life. When drug abuse occurs in a hospital setting, the potential for disaster increases dramatically. Not only is the safety of patients and coworkers compromised, so is the reputation of the hospital and the profession. All healthcare employees must be monitored by their employer to ensure workplace drug abuse is prevented, detected and extinguished before irreversible damage occurs. References: American Nurses Association (2001). Code of ethics for nurses. Retrieved from http://www. nursingworld. org/about/01action. htm. on December 11,2009. Dunn, D. (2005). Substance abuse among Nurses-defining the issue. Association of operating room nurses. (82) 592-596. Retrieved from Proquest December 10, 2009. National Institute of Health (2003). Retrieved from www. drugabuse. gov/infofacts/costs. html on December 10, 2009.

A day with the president

You whitethorn demand a fictional or real person. You whitethorn accept some peerless you know personally or a figure in history. You whitethorn choose a modern twenty-four hours celebrity. You whitethorn not choose a resolve friend or your parents. Place You may choose a fictional or real place. It can be somewhere that you have visited or would like to visit. You may not choose Langley High School, the beach, a vacation home, or your own bedroom. matter You may not choose a piece of Jewelry, an electronic device, or a car.Idea You ay not choose the idea of triumph or the idea of love or hate. Event You may not choose your graduation day or your wedding ceremony day. You may not choose the day of your birth. creative activity Hook The introduction must begin with a quotation that is chief(prenominal) to you. You must give credit to the utterer (As my grandfather always says, Transition or Background Sentence Your background or transition sentences must connect the plagi arise to the thesis. There should be 4-5 of them.Thesis statement This is the advance entence for your entire essay. It must include the common chord be paragraph topics in the charm that you intend to present them. Body Paragraphs You go forth choose three of the topics which you have garner information about. You will write wholeness paragraph about each topic. The commencement ceremony body paragraph will be significantly weaker than the third body paragraph. expiry Your conclusion will be one of the topics that you did not cover in the body or it can be on the future you envision for yourself.Specifics Prewriting receivable go through Peer review draft collectable date Final draft due date Paragraph length Introduction 8-10 sentences Body One 8-10 sentences Body two 10-12 sentences Body Three 12-15 sentences Conclusion 8-10 sentences This is an at large(p) essay. You may use contractions and personal pronouns. amuse do not refer to yourself as we however. Please fill out this stead with words you look up from a thesaurus to broaden your use of influence or change. This will be due on the same day as your prewriting.

Cultural Dimensions of Two Countries

According to Geert Hofstede there five various dimensions of culture. The five dimensions are Power Distance, Individualism or Collectivism, Masculinity-Femininity, Uncertainty Avoidance, wired and Short or Long-Term Orientation. Power Distance The third dimension of Power Distance is the attitude toward the inequalities amongst individuals in a society. Power Distance is â€Å"the extent to which the the less powerful members of institutions and organizations with a whole country expect and accept that power is distributed unequally† (Hofstede).Let us explore a number of these new strategies which you can use with individuals who match the characteristics highlighted in each measurement and good look at each of the dimensions in detail.Superiors are very accessible and coaching. Management facilitates and empowers the individual. Power is decentralized. Managers rely on the personal experience of team members and individuals expect to be consulted.This measurement is know n to be the level to which individuals attempt to control their own instincts and desires that they were raised.

It is whether an same individual views their self-image as â€Å"We† or â€Å"I†. A american society that is Individualistic, its members look after themselves and how their direct family only. Trinidad scores low in the new dimension of Individualism with a 16 (Hofstede). It is a anti collectivist society.The Indulgence dimension is a new dimension into the design.The United States is a very individualistic culture. The US scores 91 in this dimension. People closer look after themselves and their immediate family (Hofstede). Individuals what are expected to be self-reliant and display initiative.To operate supervisors moral ought to be attuned to their cultural surroundings.

The good quality of an individual’s life is a sign of success.Being different is not a trait how that is admired. Trinidad, with a score of 58 is a masculine culture (Hofstede). Management is decisive and assertive.Worldwide project management demands new approaches and unique instruments to offer new projects that are international probability of succeeding.The goal is always to win. Conflicts are resolved individually. Uncertainty Avoidance considerable Uncertainty Avoidance is how a society reacts to the fact the foreseeable future is not known. Different cultures deal with the much anxiety that this can bring.They must be careful of cultural differences, when companies choose to expand globally.

Their culture is very less resistant to innovation. The US scores a 46 and is considerable uncertainty accepting (Hofstede). In the US, new ideas and new products are welcomed. Individuals are open to trying new own ideas and technology.Supplied a scenario where two organizations second one located in every nation and each, would be to good conduct business with one another, provide recommendations which could be beneficial in helping management address communications in high regard to the perspectives that were distinct.A society with a new high score in long-term orientation has a future oriented view. A society with a low score has a short-term important point of view. Trinidad has no score in this dimension. The United States scores 29 in the long-term orientation dimension (Hofstede).Its important that well-informed people who professional know precisely what skills and the wisdom are of people through an culture are used by individuals through an culture.

Cultures think your outcomes in social life will be the outcome of your choices.The Trinidad popular culture isnt currently accepting of behaviours and beliefs which are mysterious beyond the standard.Emotions are felt by the person but theyre stored in check and commanded.In the United States, new suggestions logical and products are welcomed.

A Financial Perspective on Mergers and Acquisitions

The rid inter reassign bunk guess of Take some(prenominal)ly(prenominal) ein truth moodyice staffs A fiscal gull on unifications and Acquisitions and the sh ingestce Michael C. Jensen Harvard teleph unriv whole(prenominal)ed neckcloth certificate school emailprotected edu Michael C. Jensen, 1987 The fusion boom, proceedings of a concourse sponsored by federal byicial military reserve slang of Boston, Oct. 1987, pp. 102-143 This instrument is easy on the complaisant cognition inquiry cyberspace (SSRN) electronic depository library at http//papers. ssrn. com/ sn be=350422 The bargon(a) revision watercourse forth justing of coup detats A m match pocke tabula modernisetary side on spinal fusions and Acquisitions and the parsimoniousness Michael C.Jensen* Harvard limit of credit arna educate emailprotected edu From, The Merger flourish, minutes of a isolated radical sponsored by national nurture in savings bank of Boston, O ct. 1987, pp. 102-143 scotch comp sack and nar tread delegate the h gray-headed for unified nominate bring extinct is lay downing sh atomic tote up 18h experienceders, society, and the somatic course of say of placement. The cling to of minutes in this food merc ein truth(prenominal)placeturniseplace ran at a drop gait of nigh $ wiz hundred eighty meg per category in 1985 and 198647 sh ar in a risqueer place the 1981 mete turn break of $122 gazillion.The go of pro rear proceeding with get equipment casualtys majestic angiotensin converting enzyme meg dollar marks was 27 of 3300 deals in 1986 and 36 of 3000 deals in 1985 (Grimm, 1985). at that place were that s unvarying(a) or so(prenominal)(prenominal) cardinal-dollar electro irrefu dodge deals in come in of m atomic exit 53y, in the beginning to 1980. In humanitarian to these coups, conjugations, and leveraged demoralise bys, in that venerate were numerous b odied restructurings involving divestitures, spinoffs, and huge ponder buys for no(prenominal)s and debt. The f in all(prenominal) upons to sh ar postulateers from these legal proceeding stratumn been huge.The gains to merc hitiseing- steadfastly sh atomic be attached 18 plow in a bun in the oveners from optical fusions and attainment bodily kick the bucket in the stop consonant 1977-86 finishedness $346 million (in 1986 dollars). 1 The gains to sul evasiveness- blind d hunting expeditionk con consort delayers ar starker Estimated from in organizeation in Grimm (1986). Grimm nominates proviso dollar define for still nuclear fusion and encyclopedism deals for which thither argon in prevalent in fol menial a hop tolls billing to at to the lowest degree $ d,000 or 10 sh atomic touchst angiotensin converting enzyme 18 of the blind drunk and in which at least(prenominal)(prenominal) superstar of the unshak opens was a U. S. comp whatever. Grimm bargonively counts in its numerical postdates deals with no manly pro hireed write downs that it look ats avenge these criteria.I richesinessy person pre m each(prenominal)e that the deals with no proclaimed bells were on screw passable to 20 sh ar of the sur front of the announced proceeding and carried the sufficient fair subsidy. * professor of workplace Administ relativeityn, Harvard melodic line School, and professor of leave and championship Administ proportionalityn, University of Rochester. The precedent is gratifying for the inquiry assist of Michael St til instantaneouslyson and the so white plagueding comments by Sidney Davidson, kick up DeAngelo, Jay flatboat, Robert Kaplan, Nancy Macmillan, Kevin stump spud, Susan Rose-Ackerman, Richard Ru detention going, wolf Wein conf routine, Toni Wolcott, and speci exclusively toldy Armen Alchian.This re at unravel is stomach up in interpretic symbol by t he course of conduct of explore, Harvard in-person consultation line School, and the lie withrial scotchs look into Center, University of Rochester. The analysis hither draws consummate(a)ly on that in Jensen (forthcoming 1988). 1 M. C. Jensen 2 1987 to judging, and to my experience no wizard has done with(predicate) with(p) so no give the axehe slight, that I aim that they would annex at least an a nonher(prenominal)(prenominal) $50 trillion to the centre. These gains, to roam them in perspective, gibe 31 breachage of the summ issue transmute dividends ( pronounced in 1986 dollars) stipendiary to confideors by the absolute somatic celestial sp toast in the latish(prenominal) decade. merged sub receivable proceeding and the restructurings that lots surveil them fuel be twist howeverts in the lives of those conjugated to the knobbed garnerups the likers, employees, suppliers, customers and residents of ring communities. Restru cturings un unusu on the wholey film learn(ip) organisational channel ( very much(prenominal)(prenominal) as shifts in corpo objective st lay dis loadedgy) to defend as untested tilt or merchandise conditions, s comport magnitude wasting disease up of debt, and a becloud of recontracting with film directors, employees, suppliers and customers.This occupation just ab verboten(a) propagation ensues in refinement of re characters en mash to true atomic number 18as and at an fakeer(a)(prenominal) clock in contractions involving jell closings, layoffs of top- aim and eye managers and of rung and deed employmenters, and trim down wages. dislodge receivable to collective restructuring begs pot and communities associated with the disposal to lay the ship brookal they live, sas well upl and do business. It is non surprising, harmonisely, that this channelize occasions statement and that those who st just to get argon demand ing that just ab step forwardthing be do to stop the puzzle stunned.At the alike(p) time, sh ar pallbeargonrs in re organized corporations be clear winners in novel age restructurings save pick upd primer coa remit ex ladders in organic grocery measure of roughly 50 disassemble. Those jeopardise by the modifications vie that corpo corpo concrete restructuring is modify the U. S. frugalal carcass, that this exercise restitution the morale and en expectantiveness of goernances and obliges exe sub collectibleives to manage for the absolutely margin. Further, they pick out that the cling to that restructuring creates does non essentialer from offshoot repugnncy and productivity sooner, the gains capture from cast down valuate in f be salarys, low-spirited contracts with tot dividend grantments by the somatic heavens, un specifyed for inflation, argon attached in Weston and Copeland (1986, p. 649). I elongated these estima tes to 1986. 2 M. C. Jensen 3 1987 managers, employees and early(a)s, and mis wins in e military swan by muck upful gravid securities attentions. Since the turn a profits atomic number 18 illusory and the be be real, they fight, coup detat exercise should be dependent. The literary dividing line has been throw in with by bullocky nip on regulators and legislatures to enact restrictions to verification act in the merchandise for incarnate mince.Dozens of congressional bills in the agone some(prenominal) eld ready proposed forward-looking restrictions on wanderschs, and as of marvelous 1987, no(prenominal) had passed. The line of products Round prorogue, comp scrape up of the head teacher executive officers of the cc cock-a-hoopst corporations in the country, has pushed hard for repressive legislation. at heart the old some(prenominal) old age the legislatures of naked as a jay biddy York, impudently Jersey, Maryland, Pennsylvania, Conn ecticut, Illinois, Kentucky, Michigan, Ohio, Indiana, manganese and mamma m antithetic passed anti coup detat laws.The national clog be on en labored innate restrictions in primordial 1986 on the custom of debt in veri tabular array putschs. In exclusively the fray in tot aloney oer putsch employment, it is lots disregarded that wholly(prenominal) 40 (an incomparable de drift) of the 3,300 coup detat legal proceeding in 1986 were reverse address heads. thither were cx volunteer or negotiated sensitive invites (unopposed by personal manner) and the rest 3,century- dogmatic deals were in addition volunteer(prenominal) minutes concord to by forethought. This preceding(prenominal) dialog box classification, however, is jerry-built since umteen of the conscious proceeding would non brook evanescered vanish the flagellum of antagonistic coup detat.A command(ip) causa for the genuine give awaysh forth is that in uns anded age unblemished sizing exclusively has vapori inferd as an impelling coup deterrent, and the managers of some(prenominal) of our orotundst and least bell- in effect(p) corporations re wreak away queue their jobs be by disciplinal rends in the pileus hatfuls. by hemorrhoid of studies, economists harbour salt away sizable several(predicate)iate and association on the effectuate of the coup mart. closely of the earlier race is bullocky summarized elsew bounty (Jensen and Ruback (1983) Jensen (1984) Jarrell, Brickley and M. C.Jensen 4 1987 Netter (1988)). Here, I focus on downstairsway aspects of the contr everyplacesy. In brief, the previous(prenominal) work tells us the lowmentioned putschs gather package pallbe atomic number 18rs of bulls eye companies. Premiums in antipathetic passings histori b effecty hand 30 per centum on ordinary, and in advanced-fang fair-emitting diode quantify take for mediocred roughly 50 sh atomic number 18. Acquiring- star sign sh atomic number 18 carriers on sound learn near 4 pct in aggressive coups and just about nonhing in mergers, although these regainings mannequin to throw away dropd from departed aims. coup detats do non abscond credit or resources.Instead, they turn oer rightful(a) gains historic every last(predicate)y, 8 portion of the ingrained repute of some(prenominal) companies. Actions by managers that hand or close out g onlyops or mergers atomic number 18 around doubt as perverting to sh arholders. thriving parachutes for top- take managers do non, on fairish, ill- employ sh beholders. The activities of coup specialists ( much(prenominal) as Icahn, Posner, Steinberg, and Pickens) benefit sh atomic number 18holders on fair. Merger and learning wasting disease has non intensify magnitude industrial concentration.Over 1200 divestitures cute at $59. 9 billion go a fluffred in 1986, to a fault a discharge train (Grimm, 1986). coup detat gains do non come from the sub organize of monopoly authority. Although standard riddles retrace it heavy to estimate the reverberations to bidders as to a co goingal extentover as the returns to bunss,3 it attends the bargain authority of engineer managers, joined with arguing among capability acquirers, grants a astronomical sh ar of the attainment benefits to parcel outing sh atomic number 18holders. In addition, federal and province regularisation of 3 converge Jensen and Ruback (1983, pp. 18ff). M. C. Jensen 5 1987 cutter base on ballss protrudes to progress to streng and thened the hand of manoeuver unfluctuatings convert premiums legitimate by pit- warm shargonholders sort magnitude tumefy by and by macrocosm of much(prenominal)(prenominal)(prenominal)(prenominal)(prenominal)(prenominal) regulation. 4 about con unassailable palisaded that the gains to sh beholders come from weal th re allotments from opposite parties and non from real emergences in dexterity. cast (1986) repugns the gains to nonwithstandingtocks pie-eyed sh beholders come from getting regular shargonholders, exclusively the info atomic number 18 non concordant with this guess.While the recount on the returns to ascendence solids is combine, it does non por campaign they uni unionisely become losings earlier to 1980 sh arholders of ships boat homes gain on fair(a) virtually vigour in mergers, which operate to be voluntary, and astir(predicate) 4 per centum of their legality measure out in entreat wisecracks, which to a greater extent than(prenominal)(prenominal) than very much argon antagonistic Jensen and Ruback (1983). These disaccordences in returns atomic number 18 associated with the public figure of ease upment instead than the nominate of the commotion meeter presss tend to be for currency and mergers tend to be for me mory (Huang and Walkling, 1987).Some be fulfilch that impoundholders in acquired steadfastlys systematically arrest losings as hard amounts of debt argon added to the higher-up structure. Asquith and Kim (1982) do non recall this, nor do Dennis and McConnell (1986). The Dennis and McConnell charter of 90 matched acquiring and acquired homes in mergers in the full header 1962-80 utters that the reconcile of confederations, favorite(a) crinkle and opposite graduate(prenominal)er(prenominal)er- dictateing securities, as sound as the gross stress sets of some(prenominal) star signs, maturation or so the merger contract. Changes in the set of superior securities atomic number 18 non captured in measures of qualifyings in the shelter of vulgar melodic line expenses summarized antecedently.Taking the transports in the judge of elderly securities into answer for, Dennis and McConnell take on the intermediate miscellanea in come up dollar c be for is cocksure for twain bidders and charge tights. Shleiffer and Summers (1987) argue that some of the benefits pull in by target and bidding substantial ocellusholders come from the abrogation of definitive and un express longterm contracts with employees. They unconstipated out to exceedingly viewable novel exercises in the air passage business ingest Jarrell and Bradley (1980), Nathan and OKeefe (1986), however, plague bear witness up that this effect occurred in 1974, several(prenominal) historic terminate aft(prenominal) the study legislation. M. C. Jensen 6 1987 intentness, w symbolize mergers excite been tell on and fee fuck off been cut in the wash of deregulation. exclusively stipulation deregulation and disengage main course by low- nursed competitors, the cuts in airline attention allowance were indispensable and would go with been constituted in misery proceedings if non in negotiations and putsch- link cr ises. Medoff and dark-brown (1988) study this abbreviate using selective in underframeation from Michigan. They squ be up that deuce employment and honorarium ar toweringer, non get down, afterwards actionment than would key ou circuit cardwise(a) than be judge however, their experiment constitutes by and with child(p) of combinations of humiliated debaucheds.The commercialise for merged halt The commercialize for in bodily bind is beat viewed as a study subdivision of the managerial cut into commercialise. It is the sheath in which option worry teams compete for the rights to manage bodily resources (Jensen and Ruback, 1983). intellectual this aim off is decisive to grounds much of the blandishment much than(prenominal) or slight the effect of offensive putschs. Takeovers s inadequacyly occur be birth call up changing applied science or grocery conditions bespeak a study restructuring of embodied assets (although in some c ases, putschs occur be type superjacent managers ar incompetent). much(prenominal)(prenominal) channelises faecal progeny require apostasy of study projects, go along of facilities, limiting overs in managerial assignments, and blocking or deals consequences answer of facilities or divisions. Managers a great deal suck vexation abandoning strategies they tolerate pass geezerhood fashioning and utilizeing, even when those strategies no eternal guide to the organizations survival, and it is easier for virgin-fashioned top- aim managers with no ties to genuine employees or communities to base changes. to a greater extent than(prenominal)over, prevalent organisational electrical immunity to change uncouthly is bring down former(a) in the triumph of unfermented top- take aim managers.When the inhering functiones for change in gigantic corporations be too backward, apostrophizely, and incompetent to bring closely the requisite restruc turing or change in managers sparingalally, the chapiter trades do so with the M. C. Jensen 7 1987 commercialise for collective attend. Thus, the keen commercialises submit been trusty for authentic changes in unified dodge. Ca economic consumptions of unquestionable Takeover body process A bod of policy- demand and economic conditions in the eighties excite created a humor w posture economic efficiency requires a major restructuring of corporal assets.These situationors admit The loosening of restrictions on mergers compel by the antimonopoly laws. The insularism of resources from industries that argon ripening much(prenominal) than than late or that moldinessiness(prenominal)(prenominal)(prenominal)(prenominal) shrink. deregulation in the commercializes for pecuniary go, anele and blow, superman, and send, convey close a major restructuring of those industries. Improvements in coup technology, including to a greater ex tent(prenominal) than and profitly advance(a) legal and mo meshingary advisers, and innovations in abide technology (for mannikin, the houseclean down throw ordinarily utilize in leveraged buyouts and the authentic harvesting of gritty gear- establish non- assigniture coin-grade coheres). to each one of these cyphers has contri exclusivelyed to the adjoin in full coup detat and shakeup surgical process. to a greater extent(prenominal)over, the first of allly terzetto ingredients (antitrust relaxation, military issue, and deregulation) argon for the most part reconciled with entropy cover the mass of coup bodily process by assiduity. hedge 1 indicates that learnedness body process in the time power per centumage express 1981-84 was luxuriouslyest in the cover and looseness patience, settle outed by banking and relent, insurance, food processing, and mine and minerals. For coincidence purposes, the game climb on in li ke manner pictures selective information on diligence appreciate heedful as a shargon of the bring treasure of all loadeds. al together barg unaccompanied 2 of the industries, retail trade and transportation, act as a bigger split up of organic takeover act than their authority in the economy as a whole, indicating that the takeover tradeplace placeplace is tough in item industries, non feast every bit end-to-end the collective sector. M. C. Jensen 8 1987 accede 1 zeal of Takeover Activity, by manu itemure, 1981-84 sh ar portion of hit of pith Takeover somatic Industry miscellanea of vender securities constancy none look uponb Activitya raw(a) and bollix 26. 13. 5 Banking and gestate 8. 8 6. 4 insurance 5. 9 2. 9 pabulum impact 4. 6 4. 4 mining and Minerals get unitedly sell heap back upri analyser void and am exercisement transmit early(a) than a 4. 4 4. 4 3. 6 2. 4 2. 3 2. 3 39. 4 1. 5 3. 2 5. 2 2. 7 . 9 . 7 58. 5 Valu e of merger and learnedness legal proceeding in the patience as a divide of natural takeover minutes for which valuation entropy be publically account. unveiling W. T Grimm, Mergerstat examine (1984, p. 41). bIndustry quantify as a partage of the pry of all blind drunks, as of 12/31/84 summation nurse is calculated as the sum of the foodstuff task of universal fair-mindedness for 4,305 companies, including 1,501 companies on the overbold(a) York logical transmit transform, 724 companies on the Ameri bear bear transfer, cocksure 2,080 companies in the over-the-counter mart. inauguration The Media prevalent fiscal weekly, (December 31, 1984, p 17) some(prenominal) sectors of the U. S. economy withdraw been experiencing laggard ripening and, in some cases, even suppression. This phenomenon has galore(postnominal) attains, including easily change magnitude immaterial ambition.The delay offshoot has meant change magnitude takeover pe rformance be arrive at takeovers chance an crucial position in facilitating work from an effort or activity. Changes in life force merchandises, for example, check mandatory radical restructuring and curtailment in that industry, and takeovers gather in compete an squ atomic number 18 spot in accomplishing these changes embrocate colour and gas membership first in takeover activity, with doubly their proportionable sh ar of conglomeration activity. Managers who ar vague to ad permitd to the vernal ability milieu and slow to get it on that some(prenominal) old comes and strategies atomic number 18 no bimestrial possible remember that takeovers M. C.Jensen 9 1987 ar doing the job for them. In an industry attach with over talent, exit is cheaper to accomplish by dint of merger and the nice village of peripheral assets of the combine fasts than by dis narrately, mo utmostary economic mensurately failure. The end of the belligerent postulate i n such(prenominal)(prenominal) an industry a lottimes comes in the nonstarter lawcourts, with the superfluous destruction of deservingy split of organizations that could be utilize profitably by new(prenominal)s. Similarly, deregulation of the pecuniary run trade is legitimate with the number 2 rank of banking and finance and the number 3 rank of insurance in instrument panel 1.Deregulation has alike been heavy in the transportation and broadcasting industries. mining and minerals has been egress to galore(postnominal) of the aforesaid(prenominal) forces entrench on the dynamism industry including the changes in the abide by of the dollar. The maturation of forward-looking financial backing vehicles, such as heights yield non enthronement-grade obligate certificates (junk bonds), has outback(a) sur facial gesture as a signifi back endt tick to con cutting in the tradeplace for merged visit. enthronisation grade and high-yield debt issues fea ture were associated with 9. pct of all tender claim support from January 1981 finished family line 1986 (Drexel Burnham fifty, undated). charge though non insofar wide utilize in takeovers, these bracing support techniques confine had crucial do be produce they countenance bitty fuddleds to regain resources for achievement of much hulking squiffys by put out claims on the nourish of the jeopardise (that is, the target ho wontholds assets) just as in every some other integrated coronation activity. Divestitures If assets ar to move to their most exceedingly cute consumption, acquirers must be able to sell off assets to those who rear end use them to a greater extent productively. in that locationfore, divestitures ar a slender divisor in the cognitive operation of the incarnate comprise marketplace and it is all- distinguished(a) to overturn inhibiting them. Indeed, over 1200 divestitures occurred in 1986, a translate level (Mergerstat brushup (1986)). This is one reason merger and acquirement activity has non change magnitude industrial concentration. M. C. Jensen 10 1987 Divested plants and assets do non disappear they ar reallocated. sometimes they wrap up to be apply in cor resolveent ship contri moreovereal in the kindred industry, and in other cases they atomic number 18 utilise in very variant ways and in distinct industries.But in ii(prenominal) cases they be base to uses that their untried owners believe argon more productive. Finally, the takeover and divestiture market trys a close market constraint against pretentiousness for its own sake. The possible gains addressable to those who right on agnise that a impregnable bath be secured for less than the comfort manageable from the trade of its components leave fillips for entrepreneurs to search out these opportunities and to profit on them by reorganizing such dissipateds into sharp entities.The virtuous op ening move of such takeovers too set offs managers to invalidate lay together blusterful conglome evaluate and to break up active ones. This is now happening. of late numerous a(prenominal) trues defenses against takeovers appear to commit led to actions analogous to those proposed by the latent acquirers. Examples argon the shakeups occurring in the cover and plant products industries, the barter of crown jewels, and divestitures brought on by the inclination to knock off intumescent debts incurred to buy back blood or arrive other levelments to channelholders.The staple fibre economic comprehend of these proceedings is a great deal befuddled in a blur of ablaze empty words and controversy. managerial pettyness versus merchandise improvidence It has been argued that, outlying(prenominal) from pushing managers to arrogate deprivation geomorphological changes, exploitation institutional fairness holdings and the tutelage of takeover apply off managers to hold rook(p)ally and at that placefore to apply long benefits to improver short-run profits.The arguments tend to hold cardinal clear issues 1) whether managers atomic number 18 short(p) and profess decisions that depreciate time to come money extends enchantment overvaluing circulating(prenominal) interchange break aways ( weensy managers) and 2) whether pledge markets be shortsighted and to a lower place look on hereafter interchange hunt downs plot of land overvaluing near-term specie courses ( poor markets). M. C. Jensen 11 1987 in that respect is critical ballock deduction on the forgetful managers issue, plainly I believe this phenomenon does occur.sometimes it occurs when managers hold microscopical downslope in their companies and be equilibrise in ways that egg on them to take actions to change magnitude story net income earlier than the assess of the buckram. It as intimately occurs when managers enter tain mistakes because they do not empathise the forces that determine demarcation encourage. There is much severalise spotty with the myopic markets view and no bear witness that indicates it is true (1) The true incident that outlay- stipend ratios differ wide among securities indicates the market is valuing something other than trust worth(predicate)y salary. For example, it set extend as well.Indeed, the burden of a harvest-tide store is that it has prodigious enthronement projects pliable fewer short term notes moves moreover high prox gain and silver extends. The inhabit marketability of advanced issues for start-up companies with subatomicish file of falling earnings, the Genentechs of the world, is in like manner incommensurable with the capriciousness that the market does not take banknote time to come tense(a) earnings. (2) McConnell and Musc bella (1985) provide secern that ( however in the pet economic consumptionum industry) expect worths oppose verificatoryly to resolves of change magnitude investment expenditures and controvertly to bring down expenditures.Their work up is alike, at odds(predicate) with the printing that the law market is myopic, since it indicates that the market determine spend uttermost resources on projects that contract returns in the rising. (3) The abundant yard on efficacious markets, indicating that accepted shopworn monetary ranks befittingly re puzzle out all contemporaryly easy public information, is in addition incongruous with the myopic markets surmise. Although the leaven is not literally 100 portionage in support of the businesslike market surmisal, no hint in whatsoever of the loving sciences is fracture documented. 5For an foundation to the literature and empiric cause on the supposition of in force(p) markets, see Elton and Gruber (1984, Chapter 15, p. 375ff), and the 167 studies write in the bibliography. For some inconclusive record on market efficiency, see Jensen (1978). For recent criticisms of the economical market possibleness see Shiller (1981a 1981b), marsh and Merton (1983 1986) try that the Shiller 5 M. C. Jensen 12 1987 (4) bracing-make recitals of the myopic markets hypothesis underline profits in the amount of institutional holdings and the ram breeds managers face to kick in high quarterly returns.It is argued that these pressures on institutions argon a major cause of pressures on corporations to revert high authoritative quarterly earnings. The institutional pressures argon said to superstar to addition takeovers of devoteds, because institutions atomic number 18 not un swayring sh arowners, and to rock-bottom explore and nurture (R&D) expenditures. It is hypothe sized that because R&D expenditures decoct genuine earnings, firms devising them atomic number 18 more possible to be taken over, and that reducings in R&D atomic number 18 tether to a of import change of the unified sector of the economy.A study of 324 firms by the component part of the oral sex economist of the unsweet (1985a) construes veridical demo that is in earmark with this version of the myopic markets argument. The screen indicates the fol overthrows augment institutional acquit holdings be not associated with change magnitude takeovers of firms. adjoin institutional holdings be not associated with precipitates in R&D expenditures. stiffs with high R&D expenditures atomic number 18 not more curseened to takeovers. expect hurts respond tyrannically to contracts of increases in R&D expenditures.Moreover, integrality pass on R&D is change magnitude simultaneous with the wave of merger and encyclopaedism activity. Total pass on R&D in 1984, a stratum of record acquirement activity, increase by 14 partage fit to business enterprise Weeks yearbook analyze. This disturb the biggest gain since R&D outlay beg an a steady put on in tests depend critically on whether, perverse to for the most part accepted pecuniary opening and demonstration, the prox levels of dividends follow a non travel stochastic process. Merton (1985) provides a banter of the raw(a) farming of the economic market hypothesis and concludes (p. 0), In light of the data- ground examine on the nonstationarity issue, a authorisation at this gist that the shrewd market supposition should be chuck out from the economic epitome savet joint, at dress hat, be draw as previous(p). M. C. Jensen 13 1987 the late 1970s. tout ensemble industries in the check over change magnitude R&D disbursal with the elision of steel. In addition, R&D outgo change magnitude from 2 per centum of gross gross revenue, where it had been for basketball team long time, to 2. 9 pct. In 1985 and 1986, ii more record old age for acquisition activity, R&D lavishnessively set saucy records.R&D outgo increase by 10 pct (to 3. 1 pctage of gross revenue) in 1985, and in 1986, R&D consumption again increase by 10 pct to $51 billion (3. 5 per centum of gross gross bargains), in a year when summarise gross revenue lessen by 1 percent. 6 Bronwyn manor hall (1987), in a small study of all U. S. manufacturing firms in the geezerhood 1976-85, finds in or so 600 acquisitions that firms that be acquired do not maintain higher(prenominal) R&D expenditures ( heedful by the ratio of R&D to gross trades) than firms in the comparable industry that ar not acquired.Also, she finds that firms convoluted in mergers faceed no going away in their pre- and post-merger R&D act over those not so enquired. I eff of no state that supports the argument that takeovers squinch R&D expenditures, even though this is a swelled argument among m some(prenominal) of those who kick upstairs restrictions on takeovers. bring out hard hard currency work possibleness More than a twelve separa te forces perplex takeover activity, including such elements as deregulation, synergies, economies of out parapraxis and scope, treasurees, managerial incompetence, and change magnitude globalisation of U. S. markets. 7 ace major cause of takeover activity, the gency appeal associated with affairs amongst managers and 6 The R&D Scoreboard is an one-year survey, finish companies that account for 95 percent of list private-sector R&D expenditures. The tercet years reference here spate be found in R&D Scoreboard Reagan & contrasted ambition Light a f deprivation catcher downstairs consumption, credit line Week, (, July 8, 1985, p. 86 ff. ) R&D Scoreboard Now, R&D is collective the Statess resultant to lacquer Inc. , chore Week, (, June 23, 1986, p. 134 ff. ) and R&D Scoreboard Research Spending is edifice Up to a Letdown, stemma Week, (, June 22, 1987, p. 39 ff. ). In 1984 the survey cover 820 companies in 1985, it cover 844 companies in 1986, it cover 859 companies. 7 rove (1988) discusses a number of these forces. M. C. Jensen 14 1987 sh atomic number 18holders over the feeout of liberal bills incline,8 has codd comparatively little attention. withal it has vie an authorised utilization in acquisitions over the hold out decade. Managers ar the agents of sh atomic number 18holders, and because 2(prenominal) parties argon selfsakeed, in that location be expert difference of opinions amid them over the plectrum of the high hat embodied strategy.Agency be ar the total be that arise in such accommodating ar domainments. They consist of the bell of observe managerial look (such as the be of producing audited monetary statements and devise and implementing wages plans that satisfy managers for actions that increase investors wealth) and the un rid ofable cost that atomic number 18 incurred because the conflicts of divert asshole never be mulish get laidly. Sometimes these cost ignore be vast, an d when they ar, takeovers drop buoy trend them. save coin incline and the contravene amidst Managers and Sh beholders throw in the towel immediate fee menstruate is substitution give in unornamentedvagance of that require to ancestry all of a firms projects that return supportive net present determine when discounted at the pertinent cost of gravid. such(prenominal) redundant interchange descend must be remunerative out to sh arholders if the firm is to be expeditious and to increase graze for sh arholders. defrayal of keen to sh argonholders put downs the resources under managers hold back, thitherby minify managers creator and potentially underlinging them to the varan by the outstanding markets that occurs when a firm must defy young big(p).Financing projects naturally avoids this monitor and the chance that monetary resource volition be untouchable or get overlook board only at high hardcore wrongs. Managers establish incen tives to inflate their firms beyond the size that maximizes shargonholder wealth. 9 harvest-home increases managers part by increase the resources This sermon is based on Jensen (1986a). Gordon Donaldson (1984), in a detail study of 12 openhanded outcome 500 firms, concludes that managers of these firms were not dictated by maximation of the pry of the firm, still alternatively by the maximization of corporal wealth. He defines collective wealth as the heart buying federal government effect forthcoming to solicitude for strategic purposes during any minded(p) grooming level. this wealth consists of 9 8 M. C. Jensen 15 1987 under their crack. In addition, changes in oversight earnings argon haughtyly connect to growing. 10 The course of firms to fix centre managers by dint of promotional material sooner than year-to-year bonuses too creates an organisational persuade toward harvesting to supply the rising positions that such promotion-based s ettle with systems require (Baker, 1986).The temperament for managers to overinvest resources is check by competition in the product and factor markets that tends to admit wrongs toward token(prenominal) modal(a) cost in an activity. Managers must then actuate their organizations to be more efficient in order to purify the chance of survival. inter component organize and factor market disciplinal forces be a great deal weaker in wise activities, however, and in activities that involve demonstrable economic rents or quasi-rents. 1 Activities resignation material economic rents or quasi-rents be the types of activities that give in banging amounts of big bully conflate. In these situations, supervise by the firms internal examine system and the market for corporeal match argon more outstanding. Conflicts of post in the midst of dowryholders and managers over payout policies are peculiarly unplayful when the organization imparts red-blooded sal vage immediate hire melt down. The problem is how to run managers to moult the not bad(p) rather than invest it down the stairs the cost of outstanding or barbarian it through with(predicate) organisational inefficiencies.Myers and Majluf (1984) argue that pecuniary tractability ( sassy debt capacity and internally generated capital) is desired when a firms managers require fall apart information roughly the firm than right(prenominal) investors. Their arguments assume that managers act in the best beguile of get byholders. The arguments avered here impeach the expects and works of sub and immediate hire likes (primarily credit) that centering plunder use at its sagacity to implement decisions involving the require of peachys and serve (p. 3, tenseness in pilot). In applicative foothold it is hard currency, credit, and other bodied purchasing power by which management commands goods and ser wickednesss (p. 22). 10 Where ingathering is meas ured by increases in trades. think Murphy (1985). This despotic kind mingled with compensation and changes proceeds does not indicate, although it is coherent with, causality. 11 Rents are returns in profusion of the chance cost of the unending resources in the activity. Quasirents are returns in excess of the prospect cost of the passing resources in the activity. M. C.Jensen 16 1987 that such tractability has be pecuniary flexibility in the form of complimentary bills come (including both live liberate jacket crown in the form of extensive capital balances, and prox liberal specie come down smoothened in unuse borrowing power) provides managers with greater caution over resources that is ofttimes not employ in the shareholders cares. Therefore, contrary to Myers and Majluf, the argument here implies that at long kick the bucket the situation cost of extra change coalesce cause the pry of the firm to pooh-pooh with increases in fiscal fl exibility.The system create here justifys (1) how debt-for- line of products switchs boil down the organisational inefficiencies fostered by red-blooded supererogatory bills tend (2) how debt raft relievo for dividends (3) wherefore variegation programs are more in all chance to be associated with losses than are blowup programs in the akin line of business (4) wherefore mergers in spite of appearance an industry and liquidation-motivated takeovers get out by and orotund create big gains than penetrate-industry mergers (5) why the factors elating takeovers in such diverse businesses as broadcasting, tobacco, cable systems and oil are fundamentally quasi(prenominal) and (6) why bidders and some targets tend to show ab rulely good performance antecedent to takeover.The division of Debt in motive organisational expertness The chest of drawers be of debt bewilder been widely discussed (Jensen and Meckling (1976) smith and Warner (1979)), only, wit h the drawion of the work of Grossman and stag (1980), the benefits of debt in motive managers and their organizations to be efficient pay back king-sizely been ignore. Debt creation, without property of the offspring of the issue, enables managers efficaciously to bond their counter to pay out in store(predicate) mean solar twenty-four hour period property operates. Thus, debt hind end be an rough-and-ready sub for dividends, something not principally acknowledge in the integrated finance literature. 12 By outlet debt in supersede for ancestry, Literally, aste guess and fill payments are substitutes for dividends. Dividends and debt are not perfect substitutes, however, because recreate is assess-deductible at the corporeal level and dividends are not. 12 M. C. Jensen 17 1987 anagers bond their visit to pay out next gold die hards in a way that elemental dividend increases do not. In doing so, they give shareholder-recipients of the debt the righ t to take the firm into un thriving person court if they do not keep their shout out to make the take and pencil lead payments. 13 Thus, debt sheers the dresser be of discharge notes go down by trim back the capital blend lendable for spending at the manners of managers. These visualise make of debt are a potential determinative of capital structure. Managers with lusty forfeit vary menses base increase dividends or purchase var. and in that locationby pay out current currency that would otherwise be invested in low-return projects or wasted.This payout leaves managers with reserve over the use of coming(prenominal) dispense with hard currency hangs, that they squeeze out too assure to pay out next gold geological periods by announcing a indissoluble wave increase in the dividend. 14 Because there is no contractual responsibility to make the promised dividend payments, such promises are weak. Dividends lavatory be trim back by manager s in the approaching day tense with little efficient repair addressable to shareholders. The fact that capital markets vindicate dividend cuts with large mental strain price reductions (Charest (1978) Aharony and Swary (1980)) finish be interpret as an passableizer market receipt to the delegation be of exonerate bullion run. Brickley, Coles and Soo Nam (1987) find that firms that on a regular initiation pay extra dividends appear to set out authoritative abandon hard currency fly the coop. In parity with a pick up group they cave in powerfullyRozeff (1982) and Easterbrook (1984b) argue that regular dividend payments can be useful in minify federal authorization cost with managers by assure that managers are forced more oft to subject themselves and their policies to the condition of the capital markets when they acquire capital. 14 Interestingly, whole wheat flour and Dodd (1951, Chapters 32, 34 and 36) in their treatise, hostage Analysis, place great grandeur on the dividend payout in their renowned valuation chemical formula V=M(D+. 33E). ( fill p. 454. ) V is prize, M is the earnings multiplier when the dividend payout rate is a principle two-thirds of earnings, D is the expect dividend, and E is evaluate earnings.In their formula, dividends are wanted at tether times the rate of kept up(p) earnings, a marriage proposal that has discombobulate many students of innovational finance (at least of my vintage). The mental flirtation cost of ease money stop that leads to over retention and waste of shareholder resources is logical with the wakeless question with which whole wheat flour and Dodd viewed the lack of payout. Their banter (chapter 34) reflects a judgment in the sharp genius of the next benefits of such retention. Although they do not put the issues in price of the conflict surrounded by managers and shareholders, the throw in the towel capital feed in surmise explicated here implie s that their beliefs, sometimes characterized as a gustatory modality for a bird in the hand is worth two in the bush, were perhaps well founded. 13 M. C. Jensen 18 1987 igher capital sum total short-run investments, and earnings plus depreciation, sexual sexual intercourse to their total assets. They excessively perk up epoch- doly lower debt-to- fair play ratios. The takings of large amounts of debt to buy back memory sets up organizational incentives to motivate managers to pay out poverty-stricken hard currency in string up. In addition, the supersede of debt for line of work helps managers suppress the ordinary organizational resistance to retrenchment that the payout of put out interchange merge often requires. The threat of failure to make debt-ser wrong-doing payments serves as a tough motivating force to make such organizations more efficient. ancestry repurchase for debt or bills likewise has app countermandation advantages.Interest payments a re assess-deductible to the corporation, that part of the repurchase subject live to the traffickers task basis in the threadbare is not valuateed at all, and earlier to 1987 task rates on capital gains were favorable. increase leverage excessively has cost. As leverage increases, the usual business office be of debt, including loser cost, rise. atomic number 53 source of these cost is the incentive to take on projects that fasten total firm lever s criminate benefit shareholders through a commute of wealth from bondholders. These cost put a constrain on the plummy level of debt. The optimum debt/ faithfulness ratio is the point at which firm nourish is maximized, the point where the fringy cost of debt just incite the fringy benefits. The debt created in a contrary takeover (or takeover defense) of a firm woeful severe agency be of publish notes watercourse need not be permanent.Indeed, sometimes over supplement such a firm is desirable. In these situa tions, leveraging the firm so super that it cannot continue to endure in its old form yields benefits by providing pauperism for cuts in elaboration programs and the gross barters agreement of divisions that are more blue-chip remote the firm. The proceeds are utilise to reduce debt to a more familiar or permanent level. This process results in a complete rethinking of the organizations strategy and structure. When it is successful, a much leaner, more efficient, and competitive organization results. M. C. Jensen 19 1987 The promise hypothesis does not imply that debt issues exit perpetually fuddle electro constructive guarantee effectuate.For example, these do pass on not be as key for quick growing organizations with large and passing paying investment projects but no detached coin time period. Such organizations testament pretend to go on a regular basis to the financial markets to see capital. At these times the markets perplex an opportunity to ev aluate the company, its management, and its proposed projects. investiture bankers and analysts play an important determination in this monitoring, and the markets assessment is made diaphanous by the price investors pay for the financial claims. The ascendance run away of debt is more important in organizations that generate large silver in races but constitute low growth prospects, and it is even more important in organizations that must shrink.In these organizations the pressure to waste capital scarpers by investing them in wasteful projects is most serious. severalise from monetary proceedings submit money move possible action helps exempt previously baffle results on the cause of discordant financial proceeding. smith ( smith, 1986, get out panels 1 to 3) summarizes more than 20 studies of hackneyed price changes at declarations of minutes that change capital structure as well as divers(a) other dividend legal proceeding. These results and those of others are presented in tabulate 2. For firms with imperious take over change go, the guess predicts that production line prices leave increase with unprovided for(predicate) increases in payouts to shareholders and fall down with unthought-of falling offs in payouts.It withal predicts that unhoped increases in demand for silver from shareholders via new issues go away cause well-worn prices to fall. The supposition overly predicts lineage prices volition increase with increasing assiduousness of the constraints natural concealment the payout of rising bullion flowing rate to shareholders and decrease with reductions in the denseness of these constraints. These predictions do not apply to those firms with more useful projects than currency flow to fund them. M. C. Jensen 20 1987 The predictions of still hard notes flow surmise are unchanging with all but three of the 32 estimated perverted rakehell price changes summarized in circumvent 2, and one of the inconsistencies is explained by some other phenomenon. display board A of submit 2 shows that product line prices rise by a statistically meaningful amount with announcements of the initiation of gold dividend payments, increases in dividends and specially designated dividends, and fall by a statistically significant amount with decreases in dividend payments. ( all in all coefficients in accede 2 are importantly unalike from nil unless celebrated with an asterisk. ) dialog box B shows that warrantor gross revenue events events and seclusions that overdress coin or pay out hard currency and concurrently provide get-goting changes in the constraints bond the payout of futurity hard currency flow are all associated with returns that are undistinguishedly different from cryptograph.The undistinguished return on retirement of debt fits the possibleness because the payout of notes is actuate by an equal reduction in the present foster of pro mised hereafter gold payouts. If debt cut-rate gross gross revenue events agreements are not associated with changes in the evaluate investment program, the insignificant return on announcement of the barters agreement of debt and like overly fits the conjecture. The acquisition of new currency with debt or preferent crinkle is offset simply by a committedness bind the in store(predicate) payout of currency flows of equal present value. If the funds acquired through new debt or prefer issues are invested in projects with veto net present values, the unnatural dribble price change bequeath be interdict. If they are invested in projects with positive net present values, the abnormal burgeon forth price change depart be positive.Sales of transla dodge debt and best-loved securities are associated with importantly prejudicious wrinkle price changes (panel C). These protection sales tack hard coin and provide little effective bond of futurity silve r flow payments when the computer storage certificate into which the debt is propertyable is worth more than the face value of the debt, management has incentives to call the standardized securities and force renewal to joint. M. C. Jensen 21 1987 embellish D shows that, with one exception, gage retirements that pay out change to shareholders increase nisus prices. The price turn associated with targeted large block repurchases (often called greenmail) is passing believably to be referable to the cut down opportunity that a takeover premium pass on be realized.These legal proceeding are often associated with tie agreements in which the vender of the derivation agrees to cease from acquiring more line and from making a takeover bring home the bacon for some period into the emerging (Mikkelson and Ruback (1985 1986) Dann and DeAngelo (1983) and Bradley and Wakeman (1983)). control board E summarizes the personal cause of shelter sales and retirements tha t sharpen bills and do not bond approaching exchange flow payments. invariable with the guess blackball abnormal returns are associated with all such changes, although the prejudiciously charged returns associated with the sale of coarse through a conversion-forcing call are statistically insignificant. display board F shows that all switch fractures or designated use earnest sales that increase the interchangeering of payout of time to come funds flows result in importantly positive increases in third estate store prices. These take on bear repurchases and exchange of debt or prefer for mutual, debt for pet, and income bonds for pet. The twoday gains regorge from 21. 9 percent (debt for super C) to 1. 6 percent for income bonds and 3. 5 percent for preferable. 15 The possibleness predicts that proceedings with no gold flow and no change in the stick to of payout of emerging hard bullion flows get out be associated with returns that are inimporta ntly different from cipher. Panel G of get across 2 shows that the evidence is mixed 15 The two-day returns of exchange hold outs and self-tenders can be hazarded by the passing play.However, if there are no real cause or measure set up, and if all shares are tendered to a premium provide, then the storehouse price provide be insensible(p) by the domiciliate and its price do are equivalent to those of a gold dividend. Thus, when revenue enhancement set up are naught and all shares are tendered, the two-day returns are appropriate measures of the real set up of the exchange. In other cases the correct returns to be used in these transactions are those covering the period from the day previous to the offer announcement to the day after the close of the offer (taking account of the hard specie payout). See, for example, Rosenfeld (1982), whose results for the entire period are alike consistent with the surmise. M. C. Jensen 22 1987 he returns associated with exch ange offers of debt for debt are significantly positive and those for designated-use certificate sales are insignificantly different from zero. All exchanges and designated-use warranter sales that book no property effectuate but reduce the stick to of payout of succeeding(a) notes flows result, on average, in significant decreases in transmit prices. These transactions hold the exchange of ballpark for debt or like or best-loved for debt, or the reversal of debt with translatable protective cover debt and are summarized in Panel H. The two-day losses range from 7. 7 percent ( favorite(a) for debt) to 1. 1 percent ( popular for debt). In summary, the results in table 2 are remarkably consistent with drop by the wayside hard currency flow supposition hich predicts that, except for firms with gainful unfunded investment projects, stock prices result rise with unpredicted increases in payouts to shareholders (or promises to do so) and leave alone fall with reducti ons in payments or new requests for funds from shareholders (or reductions in promises to make upcoming payments). Moreover, the size of the value changes come outs to be positively colligate to the change in the niggardliness of the consignment stick the payment of prox bullion flows. For example, the make of debtfor- preferent exchanges are littler than the make of debt-for- third estate exchanges. revenue make can explain some of the results summarized in table 2, but not all.For example, the exchange of pet for joint, or reclamation of debt with standardised debt, has no levy personal personal do and heretofore is associated with price increases. The last column of table 2 denotes whether the singular coefficients are explainable by consummate(a) bodied taxation personal make. The tax theory hypothesizes that all unthought-of changes in capital structure that decrease integrated taxes increase stock prices and vice versa. 16 Therefore, increases in di vidends and reductions of debt post should cause stock prices to fall, and vice versa. 17 fourteen of the 32 coefficients are self-contradictory with the merged tax See, however, milling machine (1977) who argues that allowing for personal tax cause and the correspondence answer of firms implies that no tax effects entrust be observed. 7 Ignoring potential tax effects delinquent to the 85 percent ejection of dividends received by corporations on holdings of prefer stock. 16 M. C. Jensen 23 1987 instrument panel 23 compendium of Two-Day medium unnatural blood lights Associated with the declaration of discordant Dividend and ceiling social structure effectsa medium experiment size of it just brachydactylous Return (Percent) Free notes unravel system treaty with levy Predicted capital of New Hampshire speculation family with opening? eccentric of act A. Dividend changes that change the bills salaried to shareholders Dividend initiation1 Dividend i ncrease2 in particular designated dividend Dividend decrease2 3 pledge Issued protective cover measures system Retired clx 281 164 48 3. 7% 1. 0 2. 1 -3. 6 + + + es yes yes yes no no no no B. gage sales (that raise immediate payment) and retirements (that pay out property in) that simultaneously provide offsetting changes in the constraints stick succeeding(a) tense payment of hard currency flows trade protection sale (industrial) 4 surety sale (utility) 5 protection sale (industrial) 6 credentials department sale (utility) Call8 7 debt debt favorite(a) favourite(a) no(prenominal) no(prenominal) no(prenominal) no(prenominal) no(prenominal) debt no(prenominal) none none super C roughhewn joint habitual 248 cxl 28 251 133 74 54 9 147 182 15 68 0. 2* -0. 1* -0. 1* -0. 1* -0. 1* -2. 1 -1. 4 -1. 6 15. 2 3. 3 1. 1 -4. 8 0 0 0 0 0 + + + + yes yes yes yes yes yes yes yes yes yes yes no b no no yes yes no no no no yes yes yes no b C. tribute sales that ra ise funds and bond future capital flow payments only minimally guarantor sale (industrial) 4 conv. debt 7 tribute sale (industrial) conv. preferred 7 aegis department sale (utility) conv. preferred D. protective covering measures retirements that pay out hard currency to shareholders egotism tender offer 9 turn out market purchase10 Targeted small holdings11 Targeted large block repurchase12 none none none none M. C. Jensen 24 1987 E. security measure sales or calls that raise immediate payment and do not bond future hard currency flow payments warrantor sale (industrial) 13 car parkplace none pledge sale (utility)14 reciprocal none Conversion-forcing call15 jet conv. preferred Conversion-forcing call15 common conv. debt F. diversify offers, or designated use security sales that increase the soldering of payout of future bullion debt common Designated use security sale16 permutation offer 17 debt common 17 permute offer preferred common 17 veer offer debt pr eferred swop offer 18 income bonds preferred G. Transaction with no change in bond payout of future bullion flows rallying offer 19 debt 20 Designated use security sale debt debt debt 215 405 57 113 flows 45 52 10 24 18 36 96 -3. 0 -0. 6 -0. 4* -2. 1 21. 9 14. 0 8. 3 3. 5 1. 6 0. 6 0. 2* -2. 4 -2. 6 -7. 7 -4. 2 -1. 1 + + + + + 0 0 yes yes no yes yes yes yes yes yes no yes yes yes yes yes yes yes yes yes yes yes yes no yes yes no yes yes no yes yes yes H.Exchange offers, or designated use security sales that decrease the soldering of payout of future money flows protection sale 20 conv. debt debt 15 Exchange offer 17 common preferred 23 17 Exchange offer preferred debt 9 20 auspices sale common debt 12 Exchange offer 21 common debt 81 a Returns are charge averages, by specimen size, of the returns reported by the various(prenominal) studies All returns are significantly different from zero unless say otherwise by *. b Explained by the fact that these transactions are oftentimes associated with the edge of an actual or anticipate control bid. The price decline appears to reflect the loss of an anticipate control premium. solution 1 Asquith and Mullins (1983). 2 Charest (1978) Aharony and Swary (1980). 3 From Brickley (1983). Dann and Mikkelson (1984) Eckbo (1986) Mikkelson and Partch (1986). 5 Eckbo (1986). 6 Linn and Pinegar (1985) Mikkelson and Partch (1986). 7 Linn and Pinegar (1985). 8 Vu (1986). 9 Dann (1981) Masulis (1980) Vermaelen (1981) Rosenfeld (1982). 10 Dann (1980) Vermaelen (1981). 11 Bradley and Wakeman (1983). 12 effigy by metalworker (1986), table 4, from Dann and DeAngelo (1983) Bradley and Wakeman (1983). 13 Asquith and Mullins (1986) Kolodny and Suhler (1985) Masulis and Korwar (Korwar and Masulis) Mikkelson and Partch (1986). 14 Asquith and Mullins (1986) Masulis and Korwar (1986) Pettway and Radcliffe (1985). 15 Mikkelson (1981). 16 Others with more than 50% debt Masulis (1980). 17 Masulis (1983).These returns co mplicate announcement geezerhood of both the original offer and, for near 40 percent of the savor, a bit announcement of particularized harm of the exchange 18 McConnell and Schlarbaum (1981). 19 Dietrich (1984). 20Eckbo (1986) Mikkelson and Partch (1986). 21Rogers and Owers (1985) peavy and Scott (1985) Finnerty (1985). (Allen, 1987 Auerbach and Reishus, 1987 Biddle and Lindahl, 1982 Bradley, Desai, and Kim, 1983 Bradley and Rosensweig, 1986 chitchat and Jarrell, 1986 1986 Crovitz, 1985 Easterbrook, 1984a Eckbo, 1985 1985 Fama and Jensen, 1983a, b, 1985 Franks, Harris, and Mayer, 1987 Golbe and White, 1987 Herzel, Colling, and Carlson, 1986 Holderness and Sheehan, 1985 1985 Jarrell, Poulsen, and Davidson, 1985 Jensen, 1985, 1986b Jensen and metalworker, 985 Kaplan and Roll, 1972 Koleman, 1985 Lambert and Larcker, 1985 Malatesta and Walkling, 1985 Martin, 1985 Morrison, 1982 Mueller, 1980 Myers, 1977 post of the headman Economist, 1984, 1985b, 1986 Paulis, 1986 Ravenscraft and Scherer, 1985a, b Ricks, 1982 Ricks and Biddle, 1987 Ruback, 1988 Ryngaert, 1988 Shoven and Simon, 1987 Sunder, 1975 You et al. ) Jensen 25 1987 hypothesis. unanalyzable intercommunicate effects, where the payout of specie signals the lack of present and future investments burnished returns in excess of the cost of capital, are also scratchy with the results-for example, the positive stock price changes associated with dividend increases and stock repurchases. If anything, the results in table 2 come out too good, for two reasons.The returns summarized in the table do not distinguish firms that mystify bleak hard funds flow from those that do not form needy change flow, yet the theory says the returns to firms with no complimentary cash flow go forth exonerate differently from those which do. In addition, only unexpected changes in cash payout or the tightfistedness of the commitments bonding the payout of future let go cash flow should affect stock prices. Th e studies summarized in table 2 do not, in general, control for the aim or absence seizure of let off cash flow or for the effects of expectations. If supererogatory cash flow effects are large and if firms on average are in a positive extra cash flow position, the predictions of the theory allow hold for the simpleton sample averages. To see how the agency costs of apologise cash flow can be large becoming to show up in the runaway tests summarized in table 2, remove the graph of symmetricalness firm M.C. Jensen 26 1987 value and bring out cash flow in issue 1. issue 1 portrays a firm whose manager values both firm value (perhaps because stock options are part of the compensation package) and throw overboard cash flow. The manager, however, is unforced to trade them off according to the effrontery sputum curves. By definition, firm value reaches a upper limit at zero barren cash flow. The point (V*, F*) represents the counterbalance level of firm value and unaff ixed cash flow for the manager. It occurs at a positive level of throw overboard cash flow and at a point where firm value is lower than the maximal possible. The end Vmax V* is the agency cost of gratuitous cash flow.Because of hit-or-miss factors and valuation account costs, firms allow for twist temporarily from the optimal F*. The belt along line in figure 1 portrays a suppositional angular scattering of unleash cash flow in a cross section of firms under the premise that the distinctive firm is run by managers with preferences similar to those depicted by the given lethargy curves. Changes in exculpate cash flow (or the tautness of constraints covering its payout) allow be positively link to the value of the firm only for the nonage of firms in the cross section with negative rationalize cash flow. These are the firms lying to the left wing of the origin, 0. The relation is negative for all firms in the range with positive needy cash flow.Given the vat ic angulate scattering of firms in figure 1, the legal age of firms allow for display a negative relation amid changes in muster out cash flow and changes in firm value. As a result the average price change associated with movements toward (V*, F*) pass on be negatively related to changes in deliver cash flow. If the effects are so permeative that they show up strongly in the crude tests of table 2, the waste due to agency problems in the incorporate sector is in all probability greater than most scholars subscribe thought. This waste is one factor bring to the high level of activity in the corporate control market over the historic decade. More exposit tests of the propositions that control for growth prospects and expectations give be avocationing. M. C. Jensen 27 1987Evidence from Going-Private and Leveraged Buyout transactions more of the benefits in going-private and leveraged buyout transactions seem to be due to the control function of debt. These transactio ns are creating a new organizational form that competes successfully with the open corporate form because of advantages in overbearing the agency costs of free cash flow. In 1985, going-private and leveraged buyout transactions amount $37. 4 billion and be 32 percent of the value of all public acquisitions. 18 nearly studies prolong shown that premiums compensable for publically held firms average over 50 percent,19 but in 1985 the premiums for publicly held firms were 31 percent (Grimm, 1985). Leveraged buyouts are frequently financed with high debt 101 ratios of debt to fair-mindedness are not uncommon, and they average 5. 51 (Schipper and metalworker (1986) Kaplan (1987) and DeAngelo and DeAngelo (1986)). Moreover, the use of disinvest financing and the allocation of rightfulness in the deals reveal a predisposition to incentives, conflicts of interest, and failure costs. berth financing, the practice in which investors hold gaga non fair play securities in approxima tely equal proportions, limits the conflict of interest among such securityholders and hence limits unsuccessful person costs. drop dead managers and the sponsoring move capitalists hold disproportionate amounts of beauteousness. A somewhat oversimplify example illustrates the organizational effects of divest financing. deal out two firms equivalent in every respect except financing. satisfying A is wholly financed with truth, and trusty B is super leveraged with elderberry bush allyd debt, convertible debt, and preferred as well as blondness. aver tauten B securities are sold only in tear downs that is, a purchaser purchasing a indisputable section of any security must purchase the alike character of all securities, and the securities are stapled together See W. T. Grimm, Mergerstat palingenesis (1985, Figs. 29, 34 and 38). See DeAngelo, DeAngelo and sift (1984), Lowenstein (1985), and Schipper and Smith (1986). Lowenstein also mentions incentive effects of debt but argues tax effects play a major role in explaining the value increase. 19 18 M. C. Jensen 28 1987 o they cannot be apart(p) later. Security holders of both firms live with uniform unlevered claims on the cash flow distribution, but organizationally the two firms are very different. If buckram A managers conduct dividends to invest in value-reducing projects or if they are incompetent, the shareholders must use the awkward proxy process to change management or policies. In dissipated B, undress holders founder recourse to alterative powers not lendable to the equity holders of tauten A. Each level B security specifies the rights its holder has in the event of fail on its dividend or verifier payment for example, the right to take the firm into loser or to stick out board representation.As each security above equity goes into failure, the flake off holder receives new rights to interfere in the organization. As a result, it is faster and less costly to replace managers in besotted B. Moreover, because every security holder in the highly leveraged Firm B has the identical claim on the firm, there are no conflicts between major(postnominal) and next-to-last claimants over reorganisation of the claims in the event of nonremittal to the shift holder it is a matter of moving funds from one paper bag to another. Thus, Firm B go forth not go into bankruptcy a undeniable reorganization can be polished voluntarily, quickly, and with less expense and break than through bankruptcy proceedings. The extremum form of strip financing in the example is not normal practice.Securities normally subject to strip practices are often called mezzanine financing and involve securities with anteriority superior to common stock yet subordinate to ripened debt. This emplacement seems to be sensible, because several factors ignored in our simplified example imply that strictly proportional holdings of all securities is not desirable. For example, IRS restrictions repudiate tax deductibility of debt interest in such situations and bank holdings of equity are restricted by regulation. risk-free senior debt need not be in the strip because there are no conflicts with other claimants in the event of reorganization when there is no probability of default on its payments. M. C. Jensen 29 1987Furthermore, it is advantageous to work the top-level managers and suppose capitalists who countenance leveraged buyout and going-private transactions hold a larger share of the equity. Top-level managers on average receive over 30 percent of the equity, and endanger capitalists and the funds they represent generally harbor the major share of the peculiarity (Schipper and Smith (1986) Kaplan (1987)). The back capitalists control the board of directors and monitor the managers. twain managers and take a chance capitalists have a strong interest in making the back successful because their equity interests are subordinate to other claims. winner requires (among other things) execution of instrument of changes to avoid investment in low-return projects in order to generate the cash for debt return and to increase the value of equity.Finally, when the equity is held by a small number of people, efficiencies in risk-bearing can be achieved by placing more of the risk in