Separation of Powers in U.S. Government Essay Example

Separation of Powers in U.S. Government Essay The Founding Fathers of the early American Constitution examined various political and modern theories as their guide in establishing a government that truly supports their aims and aspirations as a people who wish to be rid of the destructive clutches of the British Empire, one of which is the principle of separation of powers advanced by Baron de Montesquieu.This paper will examine the concept of separation of power and its evolution since the start of the Philadelphia Convention in 1787 up to the present.Separation of PowersThe concept of separation of power as theorized by Baron de Montesquieu states that the â€Å"legislative, executive, and judicial power function of the government—the power to make laws, the power to carry out laws, and the power to uphold the laws—should rest with the different branches of government† thus, reducing the possibility of tyranny. (Johnson, Aldrich, Miller et al, 1990, 45). In the adoption of a Federal government in 1787†™s American Constitution, de Montesquieu’s theory of separation of power was approved, thus, drawing line separating the powers held by each of the branches of government.The three branches of government were allocated with its own powers some of which are shared among them. The system was designed to reduce the risk of abusing its power by a single branch acting independently from the other branches. According to Johnson et al (1990, 51) no branch can carry out its powers without some degree of cooperation from the other branches.In a dissenting opinion of Justice Louis Brandeis in Myers v. United States,272 U.S. 52, 293 (1926) opined that the â€Å"separation of powers was adopted by the Convention of 1787, not to promote efficiency, but to preclude the exercise of arbitrary power. The purpose was, not to avoid friction, but, by means of the inevitable friction incident to the distribution of governmental powers among three departments, to save the people from autocracy. †It is this concept that minimizes the risk of one branch to completely take over the government or stray too far politically from the other branches making this design as a   key factor in the Constitutions’ survival, assuring evolution in government rather than revolution.Though this was the case, due to Constitutional provisions couched in general terms, tensions and conflicts regarding individual interpretation by the branches arise.The Constitutional ProvisionsThe American Bar Association painstakingly listed the power of each branch and its relation to the other branches.There are various provisions in the Federal Constitution that outlines the blending power of the check and balance or the separation of powers.The first three Articles found in the Constitution define the powers of each branch. Article 1 defines Congress’ powers; Article II defines the Executive branch’s power; and the Judicial Power is defined in Article III.Federal JudiciaryAlexa nder Hamilton’s The Federalist Paper revealed that among the three branches it is the judiciary that is the least powerful branch. A lifetime tenure and good behavior as well as a guaranteed salary is the Constitution’s protection for the judiciary to maintain its independence. The judiciary possess the power of judicial review of all actions taken by executive or Congress. It was in a landmark case of Marbury v. Madison (1803) that the judicial review, as a power of the Courts, was first exercised and it was also in this case that Supreme Court first coined the word and established its presence as a formidable branch in the Federal System.   The judicial power is a passive power for it needs cases and controversies brought before the court for it to exercises such power (Separation of Power, n.d.).The judicial power of individual judges is limited to the following: â€Å"[j]udges must explain their decisions in written opinions; [j]udges most follow the precedents established by the decisions of higher courts; and [j]udges decisions are subject to review by courts of appeals† (Separation of Power, n.d.).The executive and legislative branches possessed the following powers to check or balance the power of the judiciary. The following: [t]he federal courts are staffed by judges nominated by the President; [t]he courts rely upon the executive branch for enforcement of their decisions; [c]ongress has control over the judiciarys budget (although it cannot reduce a judges salary); [c]ongress has the power to impeach federal judges who misbehave in office; and [c]ongress may begin the process of amending the Constitution if it disagrees with the judiciarys interpretation of the Constitution† (Separation of Power, n.d.).CongressIn Congress, the Constitution provides numerous powers, to wit: budgetary power, â€Å"including the authority to raise taxes, borrow money, and spend money; [p]ower to declare war and to raise and support militar y forces; [p]ower to regulate immigration, the mail, patents and copyrights, and commerce between the states and with foreign countries; and [p]ower to establish federal courts below the United States Supreme Court.† Also, the â€Å"Constitution provides that Congress has the power to pass any law necessary and proper to give effect to its named powers (Separation of Power, n.d.).Congress’ power could be checked through the Presidential veto on any proposed legislation; and the Supreme Court’s power to review the constitutionality of a law if it is challenged in a case brought before the Court.The ExecutiveAside from the oversight power to federal agencies that implement the passed law of Congress, the Executive through the President possessed the following powers: â€Å"[p]ower as Commander in Chief of the armed forces; [p]ower to make treaties, nominate judges to the federal judiciary, and appoint officers of the government, subject to the advice and consent of the Senate; and [p]ower to pardon individuals convicted of federal crimes.†The Congress and the Court could check the Executive through the following modes: â€Å"[t]he Senates power to ratify treaties the President has signed and to consent to the Presidents nominees for federal judgeships and other government positions; â€Å"[t]he power of Congress to impeach and convict the President for ‘treason, bribery, or other high crimes and misdemeanors;’ [t]he federal judiciarys power to declare executive actions unconstitutional if they are challenged in court† (Separation of Power, n.d.).The Conflict Surrounding the Separation of PowersJames Madison’s Federalist Paper No. 51 stated that [a]mbition must be made to counteract ambition.  Thus, the concept of separation of powers is not designed to maximize efficiency but rather to maximize freedom.Through the years various conflicts were witnessed by the American People on the issue of separation of powers which stem from the various interpretations of the branches concerned on a given Constitutional provision, couched in general terms, prone to abuse.Executive EncroachmentTwo views on the â€Å"executive powers have been articulated by past presidents.   One view, the strong president view, favored by presidents such as Theodore Roosevelt essentially held that presidents may do anything not specifically prohibited by the Constitution.   The other, weak president view, favored by presidents such as Howard Taft, held that presidents may only exercise powers specifically granted by the Constitution or delegated to the president by Congress under one of its enumerated powers† (Exploring Constitutional Conflicts: The Separation of Powers. n.d).In the case of â€Å"Youngstown Sheet ; Tube Co. v Sawyer (1952) arose when President Harry Truman, responding to labor unrest at the nations steel mills during the Korean War, seized control of the mills.†   In a close de cision, the Supreme Court held that the President’s power is not limited to those powers expressly granted in Article II.  In the case of Dames and More v Regan (1981) â€Å"considered the constitutionality of executive orders issued by President Jimmy Carter directing claims by Americans against Iran to a specially-created tribunal. The Court, using a pragmatic rather than literalist approach, found the executive orders to be a constitutional exercise of the Presidents Article II powers† (Exploring Constitutional Conflicts: The Separation of Powers. n.d).Congressional EncroachmentsIn INS v Chadha (1983), the Court declared the resolution passed by Congress to nullify by resolution a disapproved action by an agency of the executive branch for its failure to comply with the requirements for legislation spelled out in Article I, Section 7 of the Constitution.  In Bowsher v Synar (1986), the Court invalidated a provision of the Balanced Budget Act that authorized the U.S. Comptroller General to impound funds appropriated for domestic or military use after the determination of a deficit by the federal budget   . The Court reasoned that by allowing the US Comptroller General is in [the] essence [of] a legislative veto.   Morrison v Olson the Court considered the constitutionality of the Independent Counsel (or special prosecutor) provisions in the Ethics in Government Act as not â€Å"an attempt by any branch to increase its own powers at the expense of another branch, and that the executive branch maintained meaningful controls over the counsels exercise of his or her authority† (Exploring Constitutional Conflicts: The Separation of Powers. n.d).Executive Privilege and ImmunitiesExecutive privilege, the right of the President to withhold certain information sought by another branch of government, was first claimed by President Jefferson in response to a subpoena from John Marshall in the famous treason trial of Aaron Burr.   The Supr eme Courts first major pronouncement on the issue, however, did not come until 1974 in United States v Richard Nixon, which involved the Watergate Scandal. The Court held that   the Constitution does indeed contain an executive privilege which was presumptive and not absolute.   Balancing the interests in the Nixon case, the Court opined that the privilege do not   extend to the requested Watergate tapes   Finally, in Clinton v Jones (1997), the Court rejected President Clintons argument that the Constitution immunizes   him from suits for money damages for acts committed before assuming the presidency.   The case arose when Paula Jones filed a suit alleging sexual harassment by Clinton in an Arkansas hotel room in 1991 while Clinton served as Governor of Arkansas† (Exploring Constitutional Conflicts: The Separation of Powers. n.d).Congressional Immunity under the Speech and Debate ClauseThe Federal Constitutional Framers â€Å"sought in various ways to guarantee the independence of each of the three branches.   The President was protected against criminal prosecutions while in office, answerable only in an impeachment trial with a super-majority required for a conviction.   Members of the federal judiciary were given lifetime tenure, with a guarantee that their compensation would be maintained.   To ensure free discussion of controversial issues in Congress, the framers immunized members of Congress from liability for statements made during a House debate:   for their ‘speech or debate’ they shall not be questioned in any other place. In 1979, in Hutchinson v Proxmire, the Court considered whether the immunity for Senate and House debate extended beyond the floor to cover press releases and statements released to the media.   The Court concluded that the Speech and Debate Clause protected only official congressional business, not statements for public consumption† (Exploring Constitutional Conflicts: The Separat ion of Powers. n.d).Congressional Encroachment on  Judicial Powersâ€Å"In Ex Parte McCardle (1868) the Court decided it lacked jurisdiction to consider the habeas corpus petition of William McCardle, a Vicksburg, Mississippi newspaper editor arrested by military official for writing incendiary editorials about the federal officers then in control of Mississippi during Reconstruction.   Although McCardle made his petition under the 1867 Habeas Corpus Act, Congress repealed the provision authorizing McCardles petition AFTER the Court had heard arguments in his appeal.   Although it was obvious that Congress repealed the provision in an attempt to specifically deprive McCarldle of the opportunity to gain release from military custody, the Court nonetheless upheld the validity of the Act and found itself without jurisdiction â€Å"(Exploring Constitutional Conflicts: The Separation of Powers. n.d).ConclusionThe concept of the Separation of Power has created a dynamic, vibrant a nd dynamic democracy such as that of the United States. It provides powers for each of the branches and these powers were to be used not in isolation but in collaboration with other branches.This concept maintained our individual freedoms from the tyranny or abuses that could be wrecked by any of the three branches in our government.Indeed, James Madison’s Federalist Paper No. 51 is enlightening when he stated that [a]mbition must be made to counteract ambition.  Thus, the concept of separation of powers is not designed to maximize efficiency; but designed to maximize freedom.

The Chemistry of Theobromine

The Chemistry of Theobromine Theobromine belongs to a class of alkaloid molecules known as methylxanthines, which naturally occur in as many as 60 different plant species and include caffeine (the primary methylxanthine in coffee) and theophylline (the primary methylxanthine in tea). Theobromine is the primary methylxanthine found in products of the cocoa tree, theobroma cacao. Effects of Theobromine on Humans Theobromine affects humans similarly to caffeine, but on a much smaller scale. Theobromine is mildly diuretic (it increases urine production), is a mild stimulant, and relaxes the smooth muscles of the bronchi in the lungs. In the human body, theobromine levels are halved between 6-10 hours after consumption. Theobromine has been used as a drug for its diuretic effect, particularly in cases where cardiac failure has resulted in an accumulation of body fluid. It has been administered with digitalis in order to relieve dilatation. Because of its ability to dilate blood vessels, theobromine also has been used to treat high blood pressure. Dangers of Theobromine Cocoa and chocolate products may be toxic or lethal to dogs and other domestic animals such as horses because these animals metabolize theobromine more slowly than humans. The heart, central nervous system, and kidneys are affected. Early signs of theobromine poisoning in dogs include nausea and vomiting, restlessness, diarrhea, muscle tremors, and increased urination or incontinence. The treatment at this stage is to induce vomiting. Cardiac arrhythmias and seizures are symptoms of more advanced poisoning. Different types of chocolate contain different amounts of theobromine. In general, theobromine levels are higher in dark chocolates (approximately 10 g/kg) than in milk chocolates (1-5 g/kg). Higher quality chocolate tends to contain more theobromine than lower quality chocolate. Cocoa beans naturally contain approximately 300-1200 mg/ounce theobromine (note how variable this is!).

3 Alternative Trucking Careers to Consider

3 Alternative Trucking Careers to Consider Have a truck driving career, but feel like a change? Sick of the solitude of the long haul and all the heavy lifting? Don’t feel like sitting in a cab for quite so many hours each day, but don’t feel qualified for anything else? Don’t stress. There are actually plenty of alternative careers for qualified truckers out there. You just need to get yourself in the game. 1. DispatchWhile you’d still need some training, who better than a trucker who knows the ropes to work dispatching loads? You’re familiar with the lifestyle and the lingo, and the ins and outs of hauling. Check with your current employer first, for ease of 401k, IRA, and health insurance transfer, then branch out.2. LoadingIf you don’t mind the heavy work and a probable pay cut (dock workers often make less than an OTR driver), you could easily get a more stable 9-5 kind of job- even at your own company- on the loading dock. You’ll be home a whole lot more, and could have a regular schedule for once.3. ManagementYou’ve thought of being an owner-operator, but you’re starting to feel even more ambitious. Why not step into the big leagues? Get yourself some educational training in business administration (try vocational schools and two year associates programs, or even online enrichment programs, to get some certification). A bit of business education combined with your existing experience and skills would make you an asset in trucking company management. You could work for an existing company, or even make it your goal to run your own someday. Either way, you’ll be out of one driver’s seat and into another.

Brain Cancer Research Paper Example | Topics and Well Written Essays - 2500 words

Brain Cancer - Research Paper Example The growth of cancer cells in the brain tissue is termed as brain cancer. A tumor or mass of cancer tissue is formed by the cancer cells. These tumors affect the functions of the brain, such as memory, muscle control and memory. Tumors are classified as malignant, when they are comprised of cancer cells. On the other hand, tumors consisting of non – cancerous cells are termed as benign (Davis & Stoppler, 2013). Furthermore, cancer cells resulting from brain tissue are termed primary brain tumors; whereas the cancer cells that spread to the brain from other sites in the body are termed as metastatic brain tumors. It has been projected, by the available statistics that brain cancer could develop in approximately 22,000 individuals per year. Moreover, 13,000 deaths could occur due to cancer (Davis & Stoppler, 2013). Symptoms Individuals with glial origin tumors depict general, non – focal signs and symptoms, or focal manifestations pertaining to the specific region of the brain where the tumor is located. The most frequently observed symptoms among such individuals include headache, nausea, vomiting, generalized seizures and alterations in the level of consciousness. Headache tends to accompany several instances of brain tumors; nevertheless, only a few individuals with headache have a brain tumor (Pan & Prados, 2003). Headache tends to be the sole symptom in a fifth of the patients with brain tumors. Such headaches vary between moderate to severe, tend to be intermittent, and pronounced to a greater degree in the early morning, or increase with coughing and other actions that enhance the intracranial pressure. Headaches that are associated with increased intracranial pressure tend to be generalized, non – focal and non – lateralizing to the location of the tumor. Furthermore, tumors can be localized by headaches that are not associated with enhanced intracranial pressure (Pan & Prados, 2003). In 15% of the cases, the initial manifestat ions of brain tumors are seizures. In addition, 30% of the individuals with brain tumors could develop seizures in the long run. Usually, seizures transpire along with the slower developing and superficial tumors that involve the sensorimotor cortex (Pan & Prados, 2003). Some of the rapidly developing brain tumors may not present seizures as a distinguishing feature, but may do so eventually. With respect to adults, the onset of a new seizure necessitates neuroimaging, so as to eliminate the presence of a brain tumor as the underlying cause. Brain tumors have been seen to prevail to the extent of 10% among patients suffering with generalized seizures (Pan & Prados, 2003). With regard to children, seizures had been observed to result from intracranial tumors in less than a hundredth of the instances. This could be indicative of the fact that the majority of the central nervous system lesions in children transpire infratentorially. All the same, if a child exhibits seizures that tend to be difficult to control, then magnetic resonance imaging techniques have to be used, in order to evaluate the condition. In general, the brain tumors that cause seizures in children tend to be slow growing neoplasms (Pan & Prados, 2003). Increase in intracranial pressure can cause vomiting in a patient with glial tumors. On rare occasions, such vomiting can be due to invasion by the tumor of the vagal nucleus in the posterior fossa. Sometimes, a rapid

Marketing Management Tesco&Asda Case Study Example | Topics and Well Written Essays - 3000 words

Marketing Management Tesco&Asda - Case Study Example It considers all the future cash flows of that customer arising from him consuming in the future. Customer relationship management should lead to increased CLV. When one thinks of maximizing CLV, one has to take a long term perspective and hence focus on customer retention rather than just making a sale. This, coupled with the concept of the Pareto principle - that 80% of a company's sales come from 20% of their customers - has made firms have realized that retaining that 20% is integral to their increased profitability (Jobber, Lancastor, 2006) Tesco is the UK's biggest retiler chin who sells everything to stisfy customers' needs such s books, grocery, household equipment, flowers, wine etc. (yhoo finnce 2003) Tesco hve stores in UK, republic of Irelnd, Frnce, Hungry, Polnd, Czech Republic, Thilnd, South Kore nd Tiwn. Through these stores they employ 260 000 people which 65,000 of these re employed overses tht giving them ccess to popultion of 280m cross 10 mrkets. Their gol is to crete 21 000 new jobs in the coming yer. Their min mrket is in the UK where 55 new Tesco stores where opened in 2002, which results in 729 stores now. Their profit in 2002 ws 1,221m before tx compred to previous yer when the result 1,070m. The Tesco group re lso offering non-food division nd retiling services. The non-food division consists of their own opticins. In order to mke it esier for customers for tht reson they cn buy both their grocery nd medicine t the sme time. Tesco re lso the owner of gs sttions. The retil services re offering personl finnce such s life insurnce nd generl insurnce (home, cr, pet, trvel), credit crds nd lons nd sving schemes nd their own webpge (yhoo finnce 2003). s of its 2006 yer end Tesco ws the fourth lrgest retiler in the world. The three lrgest re Wl-Mrt, Crrefour nd Home Depot. METRO ws only just behind nd might move hed gin if the euro strengthens ginst the pound, but METRO's sles include mny billions of wholesle turnover, nd its retil turnover is much less thn Tesco's. t 25 Februry 2006 Tesco operted 1,897 stores in the UK (25.9 million squre feet, 2.395 million m) nd 814 outside the UK (32.8 million squre feet, 3.02 million m). In the UK, there re 83 Tesco Extr stores; 447 Tesco superstores; 161 Tesco Metro stores; 277 Tesco Express stores nd 910 recently-cquired T&S stores still to be converted (see 'Moving in on the convenience ("c-store") sector', below. Tesco's mrket cpitlistion on 31 December 2005 ws 26.035 billion ($44.8 billion), which ws the lrgest of ny retiler bsed outside the United Sttes. Tesco is incresingly trget for people in the UK who dispprove of the effects supermrket chins cn hve on frmers, suppliers nd smller competitors. sd SD ws founded in 1965 when group of Yorkshire frmers decided to go together. SD's successes led to prtnership with the Wl-Mrt fmily from U.S. in 1999. The mission SD hs is to be "Britin's best vlue retiler, exceeding customers needs", (SD 2003) offering prices 10% lower thn min competitors on product such s fresh food, clothing, home, leisure nd entertinment goods etc. The compny lso offers hll lmb nd chicken to meet the demnd of Muslim customers, this long with rnge of ethnic foods, found in Hong Kong nd Jmic. SD ssures tht the "slughter process re crefully set nd monitored by SD's Product Development Tem". (SD 2003) SD hs currently 255 stores nd 19 storehouses throughout the UK nd is plnning to open 10 new stores

Capital Structure Essay Example for Free

Capital Structure Essay Capital structure is how a company finances its overall operations and growth by using funds from equity or debt (Investopedia, 2012). Of course, every company must determine its preference on its debt-to-equity ratio and determine which capital structure works best for them. Some approaches to analyzing capital structure are: 1.EBIT – EPS: This analyzes the impact of debt on earnings per share (EPS). Optimizing shareholder’s wealth is the optimum goal and therefore, this approach analyzes the high EPS based on an expected range of earnings before income taxes (EBIT). 2.Valuation: Determines impact of debt use on shareholder’s value by determining the level of debt at which the benefits of increased debt no longer outweigh the increased risks and expenses associated with financing (Wenk, 2012) 3.Cash Flow: Analyzes a firm’s debt capacity by using the weighted average of cost of capital (WACC). The WACC is a calculation of a firm’s cost of capital in which each capital source (bonds, stock and other long-term debt) are proportionally weighted to determine how much interest the company has to pay for every dollar it finances (Investopedia, 2012). Look more:  capital budgeting examples essay Part of Competition Bikes’ (CB) main consideration in the decision to merge or acquire Canadian Biking is working capital. Lets use the EBIT – EPS approach to determine how to maximize shareholder return while minimizing the cost of capital. We currently know Canadian Biking’s moderate sales forecast of EBIT figures for the next 5 years (Year 9 – 13), therefore we can apply the EBIT – EPS approach to choose an optimal capital structure. The total of capital sources in each of the 5 years is $600,000. We will use EBIT – EPS to determine which assortment of bonds*, preferred stock, and common stock is the best option to increase Canadian Biking’s EPS. The five alternative capital structures include: Option 1: 100% Bonds (fully financed) Option 2: 50% Preferred Stock 50% Common Stock (no bonds) Option 3: 20% Bonds 80% Common Stock Option 4: 40% Bonds 60% Common Stock Option 5: 60% Bonds 40% Common Stock *Annual bond interest rate is 9% After using the EBIT – EPS approach using the forecasted EBIT amounts for Years 9 through 13, we can average the EPS for each of the 5 years to determine which capital structure produced the highest EPS. The EPS averages computed for the capital structure options are: Option 1: Average EPS = .0452 Option 2: Average EPS = .0542 Option 3: Average EPS = .0526 Option 4: Average EPS = .051 Option 5: Average EPS = .0494 Based on the EBIT – EPS approach, the recommended capital structure is option 2, â€Å"50% preferred stock 50% common stock†. This is the best capital structure mainly because there are two things to consider: 1) long-term debt and associated interest expense and, 2) equity and # of common shares. Option 2 is the best capital structure because there are no bonds and therefore, no interest expense. For example, if we look at option 1 in Year 9, and the bond interest is 9%, then the bond interest expense is $54,000 (.09*600,00). This lowers the income before taxes by $54,000. Although companies can finance debt and use the interest expense deduction to lower their taxable income, it doesn’t make sense for Canadian Bikes to fully finance their capital, because the interest expense costs outweigh the benefit of the tax deduction, resulting in a significant decrease in total income available for common stock. Additionally, because the capital structure consists of 300,000 shares of preferred stock, the company must pay dividends of 5%, reducing the company’s total income available for common stock by $15,000 (.05 * 300,000). Although this reduces the total income available for common stock, the company will maximize its EPS by only having 50% capital in common stock. This reduces the total number of common shares outstanding, which means less shares to divide the total income among. Therefore, Option 2 is the most optimal capital structure that considers minimizing long-term  debt expenses and the optimal number of common shares in order to maximize shareholder return. CAPITAL BUDGETING: Competition Bikes’ is considering building a manufacturing facility in a new Canadian location. The total investment for this project would be $600,000 USD. This consists of $400,000 to build the facility and an additional $200,000 in working capital to support operational costs. The company has projected cash flows over the next five years; therefore we can use cash flow budgeting methods such as net present value (NPV) and Internal Rate of Return (IRR) that consider time value of money for long-term investments (Pearson Education, Inc., 2008). Net present value analyzes the profitability of a project by determining the difference between the present value of the project’s cash inflows and outflows followed by subtracting the initial investment. (Investopedia, 2012). The decision rule applied to NPV is fairly simple, if the NPV is positive, invest; if the difference is negative, do not invest. Competition Bikes applies NPV to forecasted low and moderate sales for the next 5 years. After using the forecasted sales for low demand, the total present value (after subtracting cash outflows from inflows) is $560,719. If we subtract the initial investment of $600,000 from this amount, the NPV is -$39,281. This is a significant warning that the company should not proceed in building a manufacturing facility. On the other hand, if we use the forecasted sales for moderate demand, the total present value is $608,447. If we subtract the initial investment of $600,000, the NPV is $8,447. Therefore a positive NPV indicates the company should proceed with building the manufacturing facility. The biggest concern is determining which NPV to lean towards based on low or moderate sales. Unfortunately, the risk of having low sales outweighs the profitability benefit of having moderate sales. It is too risky for CB to move forward with the investment based on the NPV of low sales (-$39,281). In order for the company to profit from this investment, CB would need to have a moderate sales demand at minimum! The present value in NPV is calculated using an interest rate, also known as the required rate of return. CB’s required rate of return is 10%. When this interest rate is altered or calculated to make the total present value equal to the initial investment, the NPV becomes equal to zero; this is called the internal rate of return (IRR) (Pearson Education, Inc., 2008). The IRR is what a company can expect to earn from investing in the project and the higher the IRR, the more desirable the investment. The calculated IRR for low demand cash flows is 8.2% and the IRR for moderate demand cash flows is 10.4%. Based on these IRR figures, the company should not pursue the capital investment because the average IRR between both low and moderate sales is 9.3%. This is below the company’s required return on capital (hurdle rate) of 10% to pursue a capital investment. Again, the company would need to have a moderate sales demand, at minimum for this capital investment to be profitable and should therefore not pursue building a new manufacturing facility. WORKING CAPITAL: CB must effectively obtain and manage working capital for the expansion of the operation. CB must first look at their operating cycle, cash conversion cycle and free cash flow factors in order to improve production and management of working capital. Let’s discuss the company’s current status of each of the working capital and cash flow factors and determine how the company can improve in these areas. First, the operating cycle involves CB sending the distributor a monthly invoice for all raw materials ordered with terms of net/30 days. This can be improved by renegotiating the payment terms will distributors to net/15 days. This would increase cash flows by improving payment turn around time and accounts receivable collections. Additionally, the company can improve its relations with its distributers to increase effectiveness of its collection process. Another operating cycle factor is ordering and paying for inventory. Currently, the company pays for inventory in the month following production and all inventory ordered for the month is used leaving inventory levels (at the end of each month) at consistent levels. In order  to improve working capital the company should utilize and lower its year ending inventory balance. For example, at the end of Year 8, the company had $91,573 worth of inventory left over. The company should utilize the current inventory on hand before ordering similar raw material items. This will decease cash flows and leave fewer inventories on hand at the end of the year. Currently the average time in inventory is 25 days. This is a substantial turnaround time currently, however in the future, the company can consider replacing labor workers with fixed asset items to improve production time. This will satisfy customer demand by decreasing delivery time and improve cash flows by invoicing customers more frequently than 25 days after production. CB’s cash conversion cycle factors also impact working capital. Currently, the CB’s suppliers invoice at the end of the month for orders that month with terms of net/15. CB does an excellent job of preserving its cash flows by paying the invoices on the 15th of the month following the order.. CB can improve its working capital by negotiating for longer payment terms, i.e. net/30 days, allowing for more time for the company to earn money to pay their invoices. If this is not possible, the company can improve its forecasting measurements for ordering supplies and order the majority of the supplies needed for the month at the beginning of the month. This would increase the amount of time the company has sufficient supplies on hand without having to pay more money, (because the suppliers will still invoice for the orders at the end of the month, regardless of how early in the month the supplies were ordered). This can increase working capital because it acts as a contingency plan, to reduce the likelihood of running out of supplies, avoiding delays, or ordering supplies in excess. Free cash flow factors also affect CB’s working capital. Currently, the company recognizes depreciation in both manufacturing overhead and as depreciation expenses depending on the fixed asset. The company can use their depreciation data to increase management of cash flows by predicting when the company will have to spend a significant amount of money to replace an asset when its useful life expires. This will prepare CB for those unwanted although necessary – fixed asset costs. Currently the  corporation’s marginal tax rate is 25%. The company can consider obtaining working capital by financing debt. This will leave the company with an interest expense at the end of the year, which is deductible from gross earnings and results in paying lower taxes. After CB improves its working capital, let’s discuss how CB can use its working capital for the lease vs. buy option for a factory building in Canada. CB can use its working capital to cover the $50,000 down payment (or buy out option if they decide to lease) and $200,000 for operational costs of the new factory. According to the data provided for the lease vs. buy option, the lease option will preserve cash outflows of $12,339, (purchase cash outflows are $333,999 and lease cash outflows are $321,660). Therefore, the company should lease the manufacturing facility to preserve cash outflows. Leasing the facility will also allow CB to deduct annual interest payments (6% interest) from the gross earnings to lower their tax payments. This will increase the company’s net earnings at the end of the year, also resulting in higher retained earnings and increased shareholder value. MERGER OR ACQUISITION: CB should consider many factors when deciding to merge or acquire Canadian Biking. Let’s analyze the pros and cons between a merge vs. acquisition and determine what the best move would be for CB. First off, if the company were to merge with Canadian Biking, the potential EPS would increase by approximately .021. This shows potential for increased ownership earnings, but is it significant enough? At the same token, the price/earnings ratio for Canadian Bikes at the end of Year 8 was 9 and CB’s was 70. This shows that CB’s current investors are expecting greater earnings in Year 9 and are willing to pay $70 for $1 of current earnings. This is not the case with Canadian Biking’s investors. Unfortunately a low P/E ratio of 9 indicates that investors are not expecting a significant growth in company earnings. This raises a concern if the merge will result in a potential increase of .021 in EPS. On the other hand, a merge would result in lower costs because CB would not be purchasing Canadian Biking outright. Canadian Biking also has a lower cost competition bike that can decrease production costs and complement CB’s current bike model being offered. This will result in  greater net earnings and cash flows. If the company were to acquire Canadian Bikes, CB can expect a gradual increase in cash inflows over the next 5 years. However, the current offered sales price for Canadian Biking is $286,000; this is 30% more than what the company was valued at, at the end of Year 8. Although CB has enough working capital to make the purchase, it would take 5 years of gradually increasing cash inflows to recoup the price tag of $286,000. This means it could take approximately 5 years, before shareholders saw a significant increase in earnings per share. Based on the pro and cons, CB should merge with Canadian Bikes to lower their production and delivery costs, increase net income, EPS and cash flows, and preserve working capital. The price to acquire Canadian Biking is simply unreasonable based on predicted cash inflows over the next 5 years. The merger will enhance CB’s market position in Canada by having a local distributer to handle all customer orders and provide cost effective and great customer service to the growing Canadian market. References Investopedia. (2012). Capital Structure. Retrieved from http://www.kotzinvaluation.com/articles/capital-structure.htm Investopedia. (2012). Weighted Average Cost of Capital. Retrieved from http://www.investopedia.com/terms/w/wacc.asp#axzz2Azkq4E2V Investopedia. (2012). Net Present Value. Retrieved from http://www.investopedia.com/terms/n/npv.asp#axzz2Azkq4E2 Pearson Education, Inc.. (2008). Horngren Accounting. Retrieved from http://wpscms.pearsoncmg.com/wps/media/objects/6716/6877765/hha08_flash_main.html?chapter=nullpage=1042anchory=nullpstart=nullpend=null Wenk, D. (2012). Using an optimal capital structure in business valuation. Retrieved from http://www.kotzinvaluation.com/articles/capital-structure.htm

Working as a Housekeeper Essay -- essays research papers

Today's workers and families are overworked and stressed. After working through a 9-to-5 job, feeding and putting the children to bed, the last thing anyone wants to worry about is cleaning the house. Weekends are spent running errands and spending quality time with friends and family members. Therefore, many families are looking for outside assistance with housekeeping. In the past, housekeepers were thought of as the "hired help" and were thus treated like 18th century scullery maids. This is no longer the case. Housekeepers have reached a well-deserved level of respectability for their highly appreciated services. Starting a house cleaning business is an easy job for most people because there is very little start up cost involved. To help you get started, here is a step-by-step set of instructions to send you on your way to engaging in this highly profitable business. The first thing that you need to do before seeking out your clientele is to develop a business plan and policy. For starters, you need a name. Choose a name that denotes an air of sophistication. You don't want a name like, Tim's Cleaning Service or A-1 Cleaners. Those names are much too common and do not reflect any sort of professionalism. Try something original such as, Homestead Helpers. Such a name stands out from the many "fly-by-night" and unreliable services. Once you've chosen a name for your business, the next important step to take is to insure your business. As a house cleaner you are a sole-proprietor. This entitles you to the status of an independent contractor. This means that your profession is no different than that of a plumber, electrician, or a freelance writer. Insurance is a must have. For one thing, it eases the minds of your future clientele. Put yourself in their shoes; would you want an uninsured person coming into your home, handling your personal articles, and perhaps doing so while unattended in your home? Probably not. Having insurance will put you on top of the list for jobs, as most house cleaners do not carry insurance. The insurance will also give you piece of mind. You will not have to worry about your personal assets being seized in a lawsuit because someone accused you of stealing a family heirloom. Unfortunately, as with many service professions, dishonest people have tarnished the respectability of independent contractors, so you'l... ...ou money on graphics and design. A business card display ad catches people’s attention far quicker than a worded classified ad. Given the independent contractor status, and depending on the tax laws of your state, you are eligible for various tax deductions. For example if you own your own home, you can set up a small office space and take deductions for the square footage of the space, utilities, a computer, office supplies, phone calls, and cleaning supplies that you might purchase. Also, advertising and insurance costs are tax deductible. Many of the same deductions can be used for people who rent their home or apartment. Check with your local state's laws of taxation to see which deductions you can use. House cleaning is a highly profitable profession, with some house cleaners making $15-17 an hour, so be sure to report all of your income to the IRS. As an independent contractor, you can open an IRA account and start saving toward your retirement. In conclusion, I feel housekeeping is a respectable profession. The payment can be benevolent, and you can pick up habits for your own home, to keep a respectable looking residence. Also, no special talents or education is required. Working as a Housekeeper Essay -- essays research papers Today's workers and families are overworked and stressed. After working through a 9-to-5 job, feeding and putting the children to bed, the last thing anyone wants to worry about is cleaning the house. Weekends are spent running errands and spending quality time with friends and family members. Therefore, many families are looking for outside assistance with housekeeping. In the past, housekeepers were thought of as the "hired help" and were thus treated like 18th century scullery maids. This is no longer the case. Housekeepers have reached a well-deserved level of respectability for their highly appreciated services. Starting a house cleaning business is an easy job for most people because there is very little start up cost involved. To help you get started, here is a step-by-step set of instructions to send you on your way to engaging in this highly profitable business. The first thing that you need to do before seeking out your clientele is to develop a business plan and policy. For starters, you need a name. Choose a name that denotes an air of sophistication. You don't want a name like, Tim's Cleaning Service or A-1 Cleaners. Those names are much too common and do not reflect any sort of professionalism. Try something original such as, Homestead Helpers. Such a name stands out from the many "fly-by-night" and unreliable services. Once you've chosen a name for your business, the next important step to take is to insure your business. As a house cleaner you are a sole-proprietor. This entitles you to the status of an independent contractor. This means that your profession is no different than that of a plumber, electrician, or a freelance writer. Insurance is a must have. For one thing, it eases the minds of your future clientele. Put yourself in their shoes; would you want an uninsured person coming into your home, handling your personal articles, and perhaps doing so while unattended in your home? Probably not. Having insurance will put you on top of the list for jobs, as most house cleaners do not carry insurance. The insurance will also give you piece of mind. You will not have to worry about your personal assets being seized in a lawsuit because someone accused you of stealing a family heirloom. Unfortunately, as with many service professions, dishonest people have tarnished the respectability of independent contractors, so you'l... ...ou money on graphics and design. A business card display ad catches people’s attention far quicker than a worded classified ad. Given the independent contractor status, and depending on the tax laws of your state, you are eligible for various tax deductions. For example if you own your own home, you can set up a small office space and take deductions for the square footage of the space, utilities, a computer, office supplies, phone calls, and cleaning supplies that you might purchase. Also, advertising and insurance costs are tax deductible. Many of the same deductions can be used for people who rent their home or apartment. Check with your local state's laws of taxation to see which deductions you can use. House cleaning is a highly profitable profession, with some house cleaners making $15-17 an hour, so be sure to report all of your income to the IRS. As an independent contractor, you can open an IRA account and start saving toward your retirement. In conclusion, I feel housekeeping is a respectable profession. The payment can be benevolent, and you can pick up habits for your own home, to keep a respectable looking residence. Also, no special talents or education is required.