Internal Control Of A Group Company Accounting Essay

AbstractionToday, the argument of internal control is progressively of import to group companies. It is normally believed that a group is rather complex which would do a hard in pull offing hazards between different parts. The bankruptcy of Enron Corporation in 2001 is a milepost in the growing history of internal control. After that incident many establishments in the universe published their studies for teaching corporations ‘ internal control. This thesis introduces the thought of internal control, and the comparative back uping theories of building an internal control. Besides, explore the construction of a group company, and its concern of how to set up an inside internal control system. Finally, give a constructive decision of a group ‘s internal control by a instance survey of BP group.ContentEntire Wordss: 10221List of figuresFigure 1i?sThe COSO Cube Figure 2i?sDesign of balanced scored card Figure 3i?sBP ‘s system of internal control Figure 4i?sCurrent ratio of BP Group 1 Figure 5i?sCurrent ratio of BP Group 2 Figure 6i?sReturn on assets of BP Group ( 2007-2011 ) Figure 7: Daily Stock monetary value alteration of BP Group, compared with the FTSE all portion from 2008 to 2012Chapter 1 Introduction1.1 Aims of the surveyIn this twenty-four hours and age, the issue of internal control is progressively of import to group companies. It is normally believed that a group is so complicated which may doing a hard of pull offing the hazard occurs between the interior parts of a group. The bankruptcy of Enron Corporation in 2001 is a milepost in the development history of internal control. After that astonishing fiscal fraud instance, SEC ( Securities and Exchange Commission, U.S ) passed the Sarbanes-Oxley Act to modulate listed companies in order to accomplish a fiscal transparence. Among the act, subdivision 404 ( SOX 404 ) proposes the issue of ‘internal control ‘ , it requires each one-year study should incorporate an internal control study which shall foremost ‘state the duty of direction for set uping and keeping an equal interna l control construction and processs for fiscal coverage, and secondly contain an appraisal, as of the terminal of the most recent financial twelvemonth of the issuer, of the effectivity of the internal control construction and processs of the issuer for fiscal coverage ‘ ( Nadler and Kros, 2008:243 ) . Harmonizing to this SOX 404 act, different specific establishments in different states make out the elaborate guidelines for corporations. For illustration, in U.S. COSO ( Committee of Sponsoring Organizations of the Treadway Commission ) proposed guidelines in 1992 and 2004 for pull offing a house ‘s hazard and modulating their internal control system. In United Kingdom, FRC ( Financial Reporting Council ) makes out the Turnbull counsel as a administration codification of internal control. Those two are similar in contents.1.2 Administration of the thesisThis thesis is divided into seven chapters and organised as follows. Chapter 1 studies the backgrounds and aims of this survey. Chapter 2 is a literature reappraisal about the comparative surveies of internal control and group construction. Chapter 3 introduces the definition and how to implement an internal control by incorporating COSO and Turnbull counsel, which includes the intents, rules, and constituents of internal control activities. Chapter 4 is about a survey of back uping theories and their deductions for set uping an internal control system, which including bureau jobs, portfolio theories, institutional economic sciences, LLSV theories and Balanced scorecard. Chapter 5 emphasises the internal control in a ‘group ‘ company and the importance of scheme of a house by explicating the definition, features and an internal control frame for a group company. Chapter 6 is a instance survey of BP Group as the research methodological analysis, by look intoing and researching BP group`s internal control construction ; roll uping comparative fiscal informations to verify the effectivity of BP group`s internal control activities. Chapter 7 proposes a decision.Chapter 2 Literature ReviewBecause of the topic of this thesis is ‘internal control of a group company ‘ , therefore there are chiefly two sorts of articles are being collected. One is the documents about how to set up an internal control system, and the other is about the construction of a group company. Bower and Echlosser ‘s ‘internal control – its true nature ‘ in 1965 is normally believed as the earliest article in discoursing the internal control issue. This article debates the impression of internal control. He pointed out the intents of internal control are to do fiscal information system more dependable and to safeguard assets. In add-on, the true nature of internal control could be defined and saw by puting a fiscal information system. It is normally believed that a fiscal information system can run with small or no internal control. However, the fiscal information system can be reinforced by adding an internal control. Besides, adding internal control responsibilities could straight beef up the fiscal system. Such responsibilities can diminish the mistakes and fraud causation by people. ‘Internal control responsibilities are necessary because of the mental, moral, and physical failings built-in in people ‘ ( Bower and Echlosser, 1965:339 ) . Nevertheless, due to the early clip of this article, the writers did non discourse the application of internal control on corporations. Gauthier ( 2006:11 ) in his article of ‘Understanding internal control ‘ points out that the construct of internal control is non new. This article observes what each populace sector fiscal director and board member should cognize about internal control. Finish analyzing the indispensable grounds of fiscal studies which with a fraud ; the Treadway Commission believes that it is due to a deficiency of internal control system. Therefore, organisations supported the Treadway Commission to plan a Committee of Sponsoring Organizations ( COSO ) to modulate concern operations in endeavors. COSO defined five indispensable constituents to vouch a model of internal control inside a company is acceptable or comprehensive: a. control environment, b. hazard appraisal, c. control activities, d. communicating, and e. monitoring. However, there is no perfect model of internal control. Internal control ‘s nature is hazards ‘ variegation, instead than turning away. Spira and Page ( 2003 ) hold the position that the release of the Turnbull counsel is a program of the UK authorities, which intend to beef up corporations ‘ internal control. The counsel aligns internal control with hazard direction. Besides, this article discovers the alteration of building the argument about internal control and hazard direction with the UK company administration sphere by using a sociological position on hazard. In add-on, this article provides an of import support on the UK companies ‘ internal control frame. Soderquist ( 2000:375 ) points that ‘the current legal construct of the corporation is simple: a corporation is an unreal individual, and the inquiry for legislative assemblies, tribunals, and attorneies is whether this construct serves their demands. ‘ This article chiefly discusses different hypotheses in building corporations, provides utile information for researching the construction of corporations. Furthermore, this essay observes the bing legal construct, mensurating its utility and uncovering its bounds, thereby suggesting a sound corporation construct. Chandler ( 1992 ) examines concern companies ‘ operations and patterns from a historical position. He in add-on explores the value of the house from four economic theories, which are the neoclassical, the principal-agent, the dealing cost and the evolutionary ( Chandler, 1992:484 ) . Furthermore, explicating the beginning and growing of modern industrial corporations. This article besides provides a utile thought in explicating internal control in different types of group companies. Tsay ( 2010 ) deeply researches the Sarbanes-Oxley Act of 2002 ( SOX ) . He points that the subdivision 302 of the Sarbanes-Oxley Act requires direction of listed public companies should unwrap every alteration of their internal control systems. SOX subdivision 404 to boot requires that a direction has an duty on measuring the effectivity of its internal control systems and the rating study should be audited by a registered accounting house ( Tsay, 2010:53 ) . In January 2009 the Committee of Sponsoring Organisation of the Treadway Commission ( COSO ) published Guidance on Monitoring Internal Control Systems. The counsel runs a theoretical account to program and implement an internal control rating plan for the direction of a house. Besides, this article gives a cherished advice on uniting COSO counsel and corporations ‘ internal control system. More specifically, the paper solves the job of how to use COSO ‘s five constituents ( control environment, hazard appraisal, con trol activities, communicating, and monitoring ) with a corporation ‘s internal control system. Kiyak ( 2004:3 ) proposes ‘a theory-driven, testable, incorporate model that specifies the interrelatednesss between cardinal strategic concepts that define a planetary company: corporate planetary scheme, organisational construction, direction procedures, organisational civilization, corporate leading, and fiscal and market public presentation ‘ . The paper develops common definitions of the strategic concepts, and farther runs an empirical work by utilizing a web-based cross-sectional study in American transnational corporations. As the decision Kayak points that the procedure of corporate globalisation is a complicated interaction of multiple dimensions. ‘Skillful coordination and constellation of these cardinal facets are necessary to accomplish the coveted benefits of globalisation in transnational corporations ‘ ( ibid ) . This paper provides a utile advice on corporations ‘ globalisation from positions of planetary scheme, steadfast civilization a nd market.Chapter 3 What is internal control?3.1 IntroductionsIn this twenty-four hours and age the issue of endeavors ‘ internal control has become a hot argument during both academic and practical degree, because of the rapid developed direction theories and information engineering. Those new alterations demand enterprises to set up the modern corporation system which so includes an internal control system, for avoiding the happening of fiscal or non-financial catastrophes. A sound effectual internal control system could assist corporations heighten the quality of accounting information, protect the investors and understate the operation hazards. In this chapter, the definition of internal control would be discussed foremost, and so there are the grounds why a company need internal control. Finally, are the rules, intents and constituents of set uping an internal control system inside a corporation.3.2 Definition of internal controlThe earliest construct of ‘internal control ‘ occurred in 18th century, at that clip business communities used the simple mode which is to clear up comptrollers and tellers, for forestalling fraud and vouching the truth of histories. But with the increased graduated table of concern, the above simple method is going progressively uneffective in covering with complicated personal businesss inside company. More and more faculty members focus on researching for a better direction of houses. Consequently, in 1949, the American Institute of Certified Public Accountants issued a specific study entitled â€Å" Internal Control † specifying it as a â€Å" safeguarding of assets † , the â€Å" ensuring of the truth and dependability of accounting informations † , the â€Å" publicity of operational efficiency † and the â€Å" attachment to order direction policies † ( ABeam Consulting, 2009:2 ) . However, this definition was criticised by some faculty members for the range of duty of hearers was extended excessively far, for doing statements in favor of a narrower account of the construct of internal control. Bower and Echlosser ( 1965:338 ) pointed out that the last 2 of the above 4 facets of the definition of internal control, the â€Å" publicity of operational efficiency † and the â€Å" attachment to order direction policies † , have created many jobs of reading for hearers. In order to clear up the confusion, Statements on Auditing Procedure ( SAP ) No.33 and No.29 divide internal control into two parts, â€Å" accounting controls † and â€Å" administrative controls † . In add-on, SAP No.33 farther point ed out that the independent hearer is foremost concerned with accounting controls, the ground of which is that hearers bear straight on the dependability of the fiscal information. Accounting controls comprise the program of organisation and all methods and processs that are concerned chiefly with, and associate straight to, safeguarding of assets and the dependability of the fiscal records. They by and large include such controls as the system of mandate and blessing, separation of responsibilities concerted attempt with record maintaining and accounting studies from those disquieted with operations or assets detention, physical controls over assets, and internal auditing ( Bower and Echlosser, 1962:338 ) . Administrative controls comprise the program of organisation and all methods and processs that are concerned chiefly with operational efficiency and attachment to managerial policies and normally relate merely indirectly to the fiscal records. They by and large include such controls as statistical analyses, clip and gesture surveies, public presentation studies, employee preparation programmed, and quality controls ( ibid ) . However, Bower and Echlosser believed that the duality of the above two controls is merely overcast the arguments, non work out the job. The intent of internal control is to safeguard assets, and to guarantee the dependability of accounting information. However, ‘because of the mental, moral and physical failing inherent in people, it is necessary to set up a system of internal control in accounting study processs ‘ ( ibid:339 ) . By uniting their research Bower and Echlosser redefined the construct of internal control as follows: Internal control comprises the program of organisation and all of the co-ordinate methods adopted within a concern to safeguard its assets, look into the truth and dependability of the information produced by the fiscal information system ( ibid ) . Furthermore, Bower and Echlosser ( 1965: 340 ) believed that hearers should complete seven internal control responsibilities, they are: Supervision Clerical cogent evidence Admiting public presentation Transfering duty Protective step Reappraisal Confirmation and rating In 1992, the Committee of Sponsoring Organizations of the Treadway Commission ( COSO ) released a study named internal control — Integrated Framework which has been widely used in America and adapted by many other states. This study provided a cardinal counsel for set uping and implementing effectual internal control. In this papers, COSO defined internal control as follows: Internal control is a procedure, effected by an entity ‘s board of managers, direction and other forces, designed to supply resalable confidence sing the accomplishment of aims in the undermentioned classs: Effectiveness and efficiency of operations Dependability of fiscal coverage Conformity with applicable Torahs and ordinances ( COSO, 1992 ) . This model is important in the development of internal control, because it breaks out the tradition manner that AICPA dominates the comparative research, hence doing out a more specific and applicable model. By reasoning the COSO ‘s definition, it could be summarised into the undermentioned points: First, everyone inside the corporation is the participant, including managers, direction and employees. Furthermore, all the participant of internal control is contending for the three aims ( Effectiveness and efficiency of operations, Reliability of fiscal coverage, Conformity with applicable Torahs and ordinances ) . Finally, internal control is non a separate portion of a house ‘s matter, while it is a procedure, which running through the whole direction and disposal of corporations. In 1999, Turnbull Committee issued the Guidance for Directors on the Combined Code ( 1999 ) besides known as the â€Å" Turnbull Report † , which is a papers designed for the listed companies of London Stock Exchange. This publication defined internal control every bit good as COSO, from facets of accounting information dependability, internal control process, aims and rules. However, Turnbull study has the invention parts compared with the COSO 1992. It proposed that an endeavor ‘ internal control activities should be viewed as the necessary constituent of their civilization, because internal control system reflects the house ‘s operating environment. The study besides pointed that internal control as a important portion of hazard direction of an endeavor, would be helpful for carry throughing its strategic end. The constitution of internal control system would assist the endeavor to understate the fiscal loss, in order to forestall the strategic end from act upon ing by a possible bad fiscal public presentation. Furthermore, the study believed that internal control activities could advance working efficiency and result, safeguard assets and detect fraud seasonably. Additional, because of the continually developing hazard faced by a house, internal control system reduces, but can non extinguish the possibility of hapless opinion in decision-making ; human mistake ; control processes being intentionally circumvented by employees and others ; direction overriding controls ; and the happening of unforeseeable fortunes ( Financial Reporting Council, 2005 ) . A good system of internal control therefore provides sensible, but non absolute warrant of a house which will non be hindered in accomplishing its concern aims.3.3 Reasons why companies need internal controlInternal control system is an of import direction tool for safeguarding and protecting assets, particularly in the large, complicated corporation. By and large talking, a sensible applicat ion of internal control system could cut down losingss in bring forthing activities, and prevent the inside participants breach Torahs or ordinances. Besides, it helps to make an environment in which employees feel just. Following are some elaborate points of why companies need internal control. First of all, internal control keeps a high quality of a house ‘s internal and external accounting information. Under the internal control system, each accounting process runs carefully and cautiously, thereby taking a true, just and accurate accounting study, which makes inside managers and outside investors clear with the true operating circumstance of the house. Second, internal control plays a cardinal function of diminishing a house ‘s operating hazard. It is normally believed that a deficiency of supervising consequences in fiscal errors, which even threats the traveling concern of a house. The thought of internal control gives houses ‘ internal hearers the counsel ; provides them a series of judgement codifications in each procedure of concern, to better oversee comparative forces. Furthermore, a sound internal control system is a demand of a house ‘s accomplishment of long-run strategic end ( ibid ) . Long-time traveling concern of a house requires it has the ability of bearing tremendous operating force per unit areas. This force per unit area could be fiscal or non-finical. For illustration, a house should non merely concentrate on the external alteration of economic, policies and selling development, but besides notice the alteration of inside forces, the physique of enterprise civilization. Internal control system as a multifunction tool unifies the above demands. Finally, in order to maintain assets ‘ accurate and complete, internal control system provides efficient direction and supervising manners, to forestall the human mistakes or errors from harming the safety of assets. Additional, internal control could diminish the personal businesss of blowing resources because it includes the control of cost as its contents.3.4 Principles of internal controlThe rule of internal control means the guidelines or criterions of how to construct an internal control system. In the first topographic point, internal control activities must see their handiness ( Spira and Page, 2003 ) . It requires the house makes out sensible and suited control ordinances for implementing. The control ordinances should be written in the paperss as houses ‘ subjects. However, the ordinances should be neither excessively rigor nor excessively loose, because that would impact employers and employees ‘ ardor of executing plants. In add-on, planing an internal control system should to the full see the cost. The primary aim of internal control is to understate the possible hazard of losingss. If the internal control activities ‘ cost exceeds the control additions, it would go an unfavorable action. Therefore, corporations should use sagely when planing their internal control system. Furthermore, internal control of corporations should non cover every facet of activities. However, it should concentrate on the crucial processs which will deeply impact the house operating. For case, hearers might pay more attending on the opinion of house ‘s investing and funding activities because those personal businesss are normally company with hazards, while, for the low-risk day-to-day modus operandis, excessively much investing equals a waste of resources.3.5 Purpose and Components of internal controlThere are many readings about the intents of internal control. Among them, the COSO study gives the most widely recognised and sensible 1: aˆÂ ¦provide sensible confidence of accomplishing corporate mission, aims, ends and desired result while adhering to Torahs and ordinances ; let the company to accurately describe successes and results to the populace and interested 3rd parties. Serve as a common footing for directions, managers, regulators, faculty members and others to better understand endeavor hazard direction, its benefits and restrictions, and to efficaciously pass on about endeavor hazard direction ( COSO, 1992 ) . The constituents of internal control are normally including control environment, hazard appraisal, control activities, information & A ; communicating, and monitoring ( ibid ) . Those five parts explain what factors a sound internal control system should cover.Figure 1i?sThe COSO Cube( Beginning from: www.sox-online.com, 2012 )a†¦ . Control environment Control environment is the foundation of all the other constituents, it concludes the factors that would impact the house ‘s runing processs such as a house ‘s unity and ethical values, set of board of managers & A ; audit commission, direction ‘s doctrine and operating manners, organisational construction, assignment of authorization and duty and human resource policies and procedures ( ibid ) . A complete, sensible environment is the warrant and foundation of a sound control system, because it makes internal control system easy to be established. a†¦? . Risk Assessment Hazard means a sort of unexpected position of things, and hazards happen anytime and anyplace. A corporation may under the hazards from both internal and external in anytime ( Gauthier, 2006:13 ) . Therefore, a house needs to measure the possible hazards. More specifically, a house should place and analyze hazards which may happen in operating activities and fiscal studies. Designation is to recognize and fix adequate steps in progress for the possible hazards. For case, a house should measure the possible hazards of alterations in information about external competitions, macro-economic policies and the tendency of developing engineering. Furthermore, the internal policies, forces, and the operating construction. Analysing hazards means to measure the chance of hazards and how the hazards can impact the house, and how the house can understate the loss of inauspicious influence. a†¦? . Control activities Control activities are proposed to accomplish detailed control aims in order to understate the hazards. They are the peculiar processs, policies and patterns that are planned to safeguard concern aims. The control activities are wide-ranging, includes the undermentioned parts. a. Sufficient Segregation of Duties In a house, plants of mandate, recordkeeping, and detention should divide from each other to maintain the independency of section. For illustration, tellers and comptrollers ‘ plants should be separated clearly in order to forestall a fiscal pandemonium. B. Suitable Mandate of Dealingss and Activities Inside the corporation, there are two sorts of mandate: general and specific, the former is acceptable for everyday actions for which there are general policies to follow. However, for some specific minutess, peculiar mandate is required on a individual footing. c. Sufficient Documents and Records During the house ‘s operating, there would bring forth immense figure of fiscal or non-financial paperss and records. Internal control activities require consecutive paperss so lost points are noticed. Furthermore, it requires the economic informations are prepared as near to the covering clip as possible. Furthermore, the format of records requires well-designed instructions and proper infinites. Constitution of processs and policies Internal control activities need a set of processs to steer the patterns. In add-on, backup and recovery processs are besides necessary for the unexpected hazard. e. Independent Performance Checks Employers may bury or intentionally neglect to obey processs, or they may be careless unless person regulates and observes their everyday plants ( Gauthier, 2006:13 ) . Therefore, independent cheque is an indispensable process. a†¦? . Information and Communication Information and communicating support internal control by conveying orders from direction to employees in a signifier and a clip frame that allow them to carry on their control activities efficaciously ( COSO, 1992 ) . a†¦Ã‚ ¤.Monitoring Mentoring is a process to measure the quality of internal control sporadically through ongoing and specific appraisals. Monitoring could include both internal and external supervising of internal control by direction, employees, or outside parties. For many corporations, particularly big 1s, it is indispensable to construct an internal audit section for a better proctor.Chapter 4 Supporting theories and their deductions for set uping an internal control system4.1 IntroductionIn this chapter, some interesting theories would suggest to explicate how internal control is generated, and supply academic support for a corporation to set up its internal control system.4.2 Agency theoryThe root of bureau job is the separation of ownership and direction. After 19 century, companies began to spread out their selling because of a development of engineering. The traditional manner of household houses which uniting ownership and direction became progressively unfavorable for roll uping money for e nlargement ( mom ) . In order to work out this job, partnership, so corporations occurred. Stakeholders provide the necessary financess and a detached direction takes duty for pull offing the company. This separation could do full usage of stockholders ‘ capital and the direction ‘s cognition. However, there is a new job when dividing ownership and direction. First of wholly, the stockholders intend to make is to maximum their ain wealth, and derive the best return of the investing. However, the direction of a house prefers to see its ain benefits, such as the fillip, repute, working environment, vacations and so on. Therefore, it is non possible to extinguish the bureau job wholly. Furthermore, the stockholders as the investors in selling can utilize portfolio to understate their hazards, so they hope the direction invests the high return undertaking. However, the direction is hard to diversify their input. Therefore, comparing with stockholders, direction are risk-averse, and they normally give up those high hazard undertakings although which could increase the wealth of stockholders. Furthermore, information dissymmetry exists between stockholders and direction. Management take part the day-to-day operation of a houses, know the current fiscal and runing information, while the proprietors lack the professional cognition, and they do non straight take part the direction work, therefore can non do a just opinion of the work of direction. In add-on, because of an already mandate, the proprietor could non carry on a entire supervising. Thus the action of inauspicious choice and moral jeopardy would be done by direction. Through the brief sum-up of bureau job, a consequence is that it is necessary for a house to set up a sound internal control system, to organize the struggle of wealth between the ownership and direction. Although an internal control may increase the cost of operating, a company still needs it to forestall fund frauds and lower fiscal hazards. In add-on, through long-time internal control activities companies would happen equilibrium between bureau cost and value upper limit.4.3 Financial hazard and portfolio theories4.3.1 Definition of hazard‘Risk is a term frequently used to connote downside hazard, intending the uncertainness of a return and the potency for fiscal loss ‘ ( Verschoor, 2006 ) . The consequence of a hazard might be good, or non. Following are some characters of hazards. First, hazards are nonsubjective, every company can non wholly extinguish them. Additionally, hazards are besides unsure, they occur anyplace and anytime. Third, hazards are related to the return of undertakings. ( fm ) . It means when a topic bears a high hazard, it may derive a high return. That is why person feels like put on the lining.4.3.2 The type of hazardsa. hazard of macro environment This is a comprehensive hazard implicate the outside economic environment of houses ‘ mark state, such as the political hazard and societal economic hazard ( ibf ) . b. hazard of profession Because of the economic rhythm of a profession, corporations may confront the possible cycling recession which would convey the lessening of net incomes. For illustration, the market of general touristry would bear a slack season in winter. c. hazard of micro environment This hazard peculiarly occurs in the specific houses during their operating activities, because of the errors of employees, the failure in concern determination of direction and so on ( ibf ) .4.3.3 The step of hazardScholars tend to utilize math theoretical accounts to measure the hazard during the concern operating. By measuring the possibility of different state of affairss may happen, an expected return can be calculated by the undermentioned equation: Tocopherol ( R ) – expected return Rn – undertaking N ‘s return rates Pn – the possibility of undertaking N It is normally believed that a discrepancy ( VAR ) of the equation represents the hazard, therefore: ( frequency modulation ) Through this simple equation people could cipher the hazard easy, but this method is undependable because of the mistake in computation.4.3.4 Particular concern: the fiscal hazard of a house‘Financial hazard an umbrella term for multiple types of hazard associated with funding, including fiscal minutess that include company loans in hazard of default ‘ ( Investopedia, 2011 ) . Markowitz ( 1952 ) reported that ‘a scientific discipline has evolved around pull offing market and fiscal hazard under the general rubric of modern portfolio theory ‘ . He besides pointed that ‘in modern portfolio theory, the discrepancy of a portfolio is used as the definition of hazard ( ibid ) . There are chiefly three elaborate hazards as follows: Recognition hazard is most merely defined as the potency that a bank borrower or counterparty will neglect to run into its duties in conformity with in agreement footings ( Basel Committee, 1999 ) .A Investing hazard refers to the possible failure in the undertakings investing. It may destruct a whole corporation due to an inaccurate computation of the expected return of undertakings. Assetss impairment hazard refers to the loss of touchable or intangible assets due to unsure factors. For illustration, a replacing trade good possibly a strong challenge for the original manufacturers. Besides, new engineering and merchandise life rhythm would be a menace for entrepreneurs.4.3.5 Management of hazardThere are some manners for corporations to cover with the above hazards: Hedging, Reduction, insurance and acceptation. Hedging refers to avoiding hazards by utilizing compensatory actions, for case, do non publish securities in states that have terrible rising prices ; shut the subordinates in political relations unstable states ( ibf ) . Decrease agencies take actions to take down the hazard, for case, utilizing fudging contract to avoid foreign exchange hazard. Insurance is a manner to reassign the hazard by buying suited insurance merchandises. In this state of affairs, the hazard of a house will reassign to others. Acceptation refers to to the full accept the hazard of operating activities. It requires a house has a strong capital modesty. In general, a house seldom chooses to accept hazards.Institutional EconomicssInstitutional economic sciences accents larning, development, and restricted reason. It initial occurred on the twentieth century, and the representative economic experts are Thorstein Veblen, John R. Commons, and Wesley Mitchell ( Rutherford, 2008 ) . Hamilton ( 1987 ) pointed that ‘old institutionalism rejects the decrease of establishments to merely gustatory sensations, engineering, and nature. Tastes and outlooks of the hereafter, wonts and motives, are non merely determined by the nature of establishments, but besides limited and shaped by them ‘ . When people live and work in establishments on a regular footing, it shapes their universe positions. Basically says that traditional institutionalism focal point on the lawful foundations of an economic system and the evolutionary, used, and calculated procedure. The fluctuations of the establishments are surely a effect of the very inducements shaped by such establishments, and are hence endogenous ( ibid ) . Categorically, institutionalism is a traditional manner to response the current economic orthodoxy.4.5 LLSV theoryIn 1997, four celebrated jurisprudence and finance bookmans, La Porta, Lopez-de-Silanes, and Shleifer are from Harvard University, and Vishny is from the University of Chicago, issued the article ‘Legal Determinants of External Finance ‘ . LLSV ( 1997:1149 ) reported that states with poorer investor protections, measured by both the character of legal regulations and the quality of jurisprudence enforcement, have the smaller and narrower capital markets. In peculiar, Gallic civil jurisprudence states have both the weakest investor protections and least developed capital markets, particularly as compared to common jurisprudence states. LLSV ( ibid ) further discussed the relationship of jurisprudence and external finance, they pointed out that the legal environment has a immense consequence in the size of capital markets over states. LLSV ( 1998:1151 ) examines legal regulations covering the protection of corporate stockholders and creditors, the beginning of these regulations, and the quality of their execution in 49 states. The consequences display that common-law states normally have the strongest, and Gallic civil-law states the weakest, legal protections of investors, with German and Norse civil jurisprudence states located in the center. They besides notice that concentration of ownership of portions in the largest public companies is negatively related to investor protections, while consistent with the hypothesis that little, diversified stockholders are unlikely to be of import in states that fail to guard their rights.4.6 Balanced scorecardThe thought of Balanced Scorecard was proposed ab initio in 1992 by Kaplan & A ; Norton. They claimed that traditional fiscal accounting steps such as return-on-investment ratio and earnings-per-share rate might offer confusing signals for companies` uninterrupted bett erment and invention ( Kaplan and Norton, 1996 ) . ‘The traditional fiscal public presentation steps worked good in the industrial epoch, but they are out of measure with the accomplishments and competences companies are seeking to get the hang today ‘ ( Kaplan and Norton, 1992:71 ) . It means that the traditional financial accounting techniques focus on recording and gauging the past economic activities of corporations while it can non supply a wholly advice about companies ‘ current and future funding and puting events. Furthermore, in the current society of concern information, companies should take several factors such as clients, providers, employees, invention into consideration ( ibid ) . Therefore, balanced scorecard was offered from four chief positions to measure houses ‘ public presentation: the fiscal, client, internal concern procedure, invention and acquisition ( ibid ) . The purpose of balanced scored card is to take houses ‘ visions into actions ( Kaplan and Norton, 1996 ) .Figure 2i?sDesign of balanced scored cardBalanced mark card requires persons inside the group set up their ain scorecards, and on occasion look into the public presentation of scored cards. This result is related to their personal fillip. Mark cards are normally built based on four facets: fiscal, client, internal concern procedure, invention and acquisition. First, to recite non-financial informations, ‘What you step is what you get ‘ ( Kaplan and Norton, 1992:71 ) . It means to construe groups ‘ objects and thoughts into a series of aims, steps, ends and enterprises, which makes non-financial elements seeable and assessable ( Kaplan and Norton, 1996 ) .The above theories ‘ practical deductions for internal controlIn order to observe how internal control is generate, and why corporations should set up a sound internal control system for maintaining a good concern operation, the above portion introduces theories including bureau job, fiscal hazard and portfolio theory, Institutional Economics, LLSV theory and balanced scorecard. From a comprehensive position, following are some practical deductions of the theories for internal control. In the first topographic point, bureau job requires an internal control to protect the company owner`s benefits. In other words, bureau job is the root of internal control. Economists assume that resources can be divided into the undermentioned three: land, capital and engineering, and presume that what people pursue is to maximize their ain public-service corporation. With the uninterrupted development of productive forces, the graduated table of production of endeavors continuously expand, the proprietors of the company, though they have the economic resources such as land and capital, but non needfully hold the ability to pull off a concern ; However, directors occupy proficient resources, but no capital. In order to apportion resources expeditiously, the proprietors hire directors who have the ability to stand for them to take responsible for the operation of the endeavor. This action produces a separation of ownership and direction. But, the end of operators is non consistent wi th concern proprietors. The proprietor intend to maximize the value and make wealth for themselves, while the end of corporate directors are higher incomes, benefits and repute, which is consistent with the premise of economic adult male in the economic sciences, that is chase of their ain public-service corporation maximization. Furthermore, because of directors take responsible for day-to-day concern activities, they are able to make and hold on more concern fiscal information than the corporate proprietor, this is an information dissymmetry. Asymmetrical information can easy allow directors to do inauspicious choice and moral jeopardy, besides say that concern directors use private information to prosecute single public-service corporation maximization, the consequences of that may damage the endeavor ‘s value. Thus, bureau theories provide academic support for the reason of internal control. Besides, internal control as a powerful tool has utilised by the endeavor propriet ors for a better proctor. Second, fiscal hazard and portfolio theories propose to what widen internal control activities should accomplish. The bureau jobs lead to an happening of bureau cost, the being of bureau cost brings the hazard for proprietors. Thus the proprietors set up internal control system for modulating directors. Based on the comparative investing theory, in the same return rate, people prefer to take a undertaking with smaller hazard. Although there exists hazard of internal control costs, sing the world that investors normally can non to the full invest portfolios efficaciously to cut down a hazard, internal control hazard is still to be considered when judging an endeavor. Furthermore, institutional economic sciences makes internal control good organised. In order to cut down the bureau job caused by the hazard, proprietors would automatically supervise and control directors, inquire them to vouch and be responsible for the concern consequences. Some fiscal dirts show that the voluntary established internal control system does non run into the demands of the proprietors on the hazard control. Gradually, internal control system is developing to legal commissariats inside corporations. The institutionalisation of internal control is the consequence of concern enlargement. In bend, the institutionalisation of internal control strengthens the protection of the proprietor. Furthermore, LLSV theory of investor protection points out that when the capital market develops to a certain extent, the demand of protecting investors in capital markets in different states and different economic system is the same. The significance of set uping internal control is to protect investors efficaciously. Harmonizing to the theory of LLSV, mature capital markets require the mature internal control system, and internal control system criterions in developing capital market will bit by bit go rigorous as the mature market. Finally, balanced score card is a good practical manner of internal control. Balanced Scorecard ( BSC ) is a nucleus strategic direction and execution tool. It divides information into 4 dimensions, and makes it easy to be measured. The chief intent of BSC is to change over the endeavor scheme into elaborate actions, to foreground the comparable advantage. Inside the balanced scorecard, the factor of ‘financial ‘ and ‘internal procedure ‘ require endeavors set up sound internal control system, in order to vouch the accomplishment of endeavor scheme.Chapter 5 Internal control towards Group companiesIntroductionWith the progressively incorporate planetary economic system, the competition between states is really a competition between large companies and groups. In recent old ages, the group company has become an of import force and indisputably occupies a important place in the whole economic system, no affair in its size, efficiency or impact. However, after the lessons of Enron, Barings Bank and other serious incidents, it is concluded that: the success of internal control of a corporation is straight related to the company ‘s destiny. Corporations should rapidly set up a sensible system of internal control. The building of corporations ‘ internal control system should foremost guarantee the subordinate operating as a self-financing independent individuality. Second, prosecute the group ‘s overall involvements. However, the solution to the job of the effectivity of internal controls of the whole corporation is non simple, due to the many beds of direction inside the corporation, directors in the headquarter could merely through the indirect bid and control to restraint and proctor subordinates. The constitution of the group ‘s effectual internal control system is a cardinal to continuously better the overall value of a corporation and heighten the nucleus fight of the group. In this chapter, foremost introduce the definition and features of a group company. Additionally, the relevant survey provides a theoretical footing for farther researching the internal control manner. Then, in the last subdivision of this chapter we focus on a strategic way which uniting with characteristics of a corporation to transport out internal control`s relevant frame survey.Definition of group companySoderquist ( 2000 ) believes that a corporation is a configuration of relationships holding a varied and changing hierarchal construction. There is an ununderstandably big figure of relationships that can take topographic point in corporations, furthermore, many of these relationships will continuously change. A group is an gathering of parent and subordinate companies that function as a solo economic topic via a common beginning of control ( ibid ) . The impression of a group is frequently used in the revenue enhancement jurisprudence, accounting and house jurisprudence to clear up the rights and duties between companies. If a company involves in wholly different concerns, it is normally named a pudding stone.Features of group companyWhen it comes to group companies, people normally wonder what advanced a little and individual administration to go a multiple and complex group administration. Chandler ( 1992 ) points out that the thought of the group company is an account of alternate relationships between market and houses. In other words, the modern multiple endeavors ( groups ) will replace the traditional little companies when the direction and addendum inside a house could supply higher productiveness and net incomes, lower costs than the coordination of the outside market mechanism. Besides, it is a transmutation from the market behavior into corporations` internal buying behavior. For illustration, antecedently commercial activities are performed by several concern units, now through the restructuring or even amalgamation of corporations to make a trading internalization. Such internal dealing brings the undermentioned benefits for the expanded endeavor groups: First, minutess between inside units as a everyday work, which cut down the dealing costs. Second, for the production and selling ‘s integrating, information costs bead significantly. Finally, the coordination of integrating makes a steadfast to the full uses societal resources, hence heightening its efficiency. In this procedure, the types of parent and subordinate companies are the undermentioned three: First of wholly, concern enlargement. Corporations form a new subordinate driven by merchandise invention and industrial upgrading, to make a horizontal or perpendicular strategic integrating of subordinates. Second, capital driven. In order to accomplish the mark of strategic development, corporations use the methods of keeping, acquisition, amalgamation and equity engagement to command subordinates ( Soderquist, 2000 ) . Third, regional enlargement. The parent company develops specific regional markets, domestic markets or international markets based on the scheme demands of internal resources sharing, decrease of internal dealing costs and location advantage of market. All in all, no affair what sort of enlargement corporations are using, the indispensable features of a group company is that there is a parent-subsidiary based perpendicular organizational construction. In decision, the group does hold an independent legal position. More specifically, groups are consisted by a parent company with several subordinates, in other words, the group as the parent company includes a figure of subordinate companies. Subordinates are controlled by a parent company through keeping securities. Furthermore, equity and belongings rights are the nexus between a parent company and its subordinates. Furthermore, from the position of internal organizational relationships, on the one manus, the parent company and subordinates both have the independent legal position ; on the other manus, the parent company vertically controls low-level endeavors by busying equity or belongings rights.Fiscal Risks of a group companyDue to the big figure of subordinates, it is hard to to the full incorporate the resources inside a group. In add-on, the characteristics of fiscal hazards of a group are besides different from traditional endeavors and harder to work out. The first hazard of a group is possible debt default. Because of the so many direction beds inside parent company and subordinates, the hazard of debt default would be magnified ( Diana, 2005 ) . For case, each subordinate could be a guarantee topic, besides, could be a adoption organic structure. Some kinds of catastrophes such as inappropriate guarantee and big scale debt default would happen, doing a bad influence of the whole group ‘s repute. Even though, consequence in a prostration of a group. The 2nd 1 is a hazard of investing failure. Inside a group, the central offices can non acquire all the information of each subordinate, therefore it is hard to expeditiously supervise and measure each subordinate ‘s investing undertakings ( Buehler and Shetty, 1975 ) . Once a failure occurs, the loss of investing would be immense, to boot result in a big figure of non-performing assets and bad debts, thereby diminishing the net incomes of parent company. Furthermore, the benefit struggle between parent and subordinate company increases the fiscal hazard of a group. Harmonizing to the rational adult male theory, both parent and subordinate company are prosecuting their ain benefits maximal, therefore doing a batch of struggles in day-to-day concern operating. At the same clip, such many beds of direction consequence in a high direction cost and low efficiency. All of the above features increase the possibility of a group ‘s fiscal loss. Finally, a large group ‘s fiscal hazard would act upon the prosperity of regional economic system. More specifically, the parent company non merely impact the determination of subordinates but besides affect the steady of regional economic system. A prostration of a group would do a terrible societal and economic effect ; infinite failures of groups in the universe have confirmed this position.Specifications for a group ‘s internal controlIt is normally believed that an internal control system is designed for a peculiar administration. However, when speaking about a group company ‘s internal control system, things become complicated. It is stupid to utilize the same internal control contents between a group company and a common endeavor, because they are different in the facet of organizational construction, fiscal system and ability of bearing hazards. The nucleus of a group ‘s internal control is to use conjunct ends or schemes to aline and compress inside s ubordinates. Furthermore, strengthen the preparation of forces of internal control system, and finish the mechanism of incentive direction. Aiming to make a consensus of that the group is belong to the full participant includes investors, direction and employees. Because of the big figure of subordinates of a group, internal control for a group company may hold several particular characteristics and specific demands. First of all, unlike the little simple endeavor, in a group company internal control must cover the whole entity, which including both top-down and down-top control. For case, the parent company needs to supervise subordinates ‘ fiscal position, frailty versa ; subordinates should besides execute control activities towards the determination ordered by the parent company for avoiding an unsuitable order. Second, the control powers of different subordinates are non same ( Spira and Page, 2003 ) . For illustration, the types of subordinates include wholly-owned subordinates, joint stock company and keeping company. The parent company could merely execute a rigorous control to those close subordinates such as whole-owned houses, nevertheless, to those weak-linked companies, internal control activities are no demand and non poss ible to be perfect. Furthermore, unlike the common simple endeavor views the accounting and concern operation as the nucleus of internal control, a group tends to set ‘capital control activities ‘ as its cardinal procedure. In other words, the aim of a group ‘s internal control is to vouch a safe transmutation of hard currency flows from subordinates to the parent company. Therefore this kind of internal control is concentrating on the control of capital base on ballss in and out inside subordinates. Finally, manners of the parent company performs internal control in subordinates are assorted and different, because the control power is different. For case, for the wholly-owned subordinate, the parent company could straight delegate CEOs to take the direction, in add-on, scrutinizing and supervising the fiscal studies and budgets in order to command the capital flow. However, for the joint stock company or keeping company, the parent company could utilize their righ ts of vote in the general meeting of stockholders, to near an influence on the determination of targeted subordinate ‘s concern activities.Chapter 6 Research Methodology – a instance survey of BP groupAfter presenting the specifications for a group company, now a celebrated and typical group company is necessary to be analysed for back uping the points this thesis proposed. BP group as the sample of this instance survey is typical and constructive. In this chapter, we will present BP group ‘s internal control construction, and so carry on some informations analysis to verify the effectivity of BP ‘s internal control.6.1 BP group ‘s system of internal controlIn chapter 3 we have briefly introduced the COSO model and Turnbull study, they are celebrated instructions to endeavors for set uping an internal control system. However, when using those instructions into a group company, some revisions should be proposed. One of the most of import ‘revisions ‘ is to unclutter a long-run ‘strategic end ‘ of a group. The board of BP group takes duty for directing and oversing the whole company. The board has proposed a planetary end for BP group, which is to maximize long-run stockholder value through the allotment of its resources to activities in the oil, natural gas, petrochemicals and energy concerns ( BP PLC, 2010:32 ) . BP group keeps a wide system of internal control, which includes the general set of direction systems, procedures, organizational constructions, behaviors and criterions that are employed to carry on their concern and deliver returns for stockholders ( ibid ) . This internal control system is considered to run into the demands of internal control of the Corporate Governance Code in the UK and of COSO ( Committee of Sponsoring Organizations of the Treadway Commission ) in the US ( ibid ) . It solves hazards and how we can respond to them every bit good as the whole control environment. Core constituents of the system of internal control are: ‘the control environment ; the direction of hazard and operational public presentation ( including in relation to fiscal coverage ) ; and the direction of people and single public presentation ‘ ( ibid ) . The undermentioned image shows a comprehensive debut of BP group ‘s internal control system.Figure 3i?sBP ‘s system of internal control( Beginning from: BP.PLC Annual Report 2010:93 )The item contents of the control system are showed in the graph. Among the dynamic pie graph the hazard direction and operational public presentation should be viewed as a important portion. It includes concerns place, prioritize, manage, proctor and better the direction of hazards on a daily footing to fit them to cover with jeopardies and uncertainnesss ( BP PLC, 2011:123 ) . This enables the most of of import hazards can be identified. Mentioning to the facet of proctor, it is of import for BP to carry on a centrally control and proctor. BP`s centrally controlled procedure as a portion of internal control system, it consists of the undermentioned constituents: Accountabilities of forces of the group, to corroborate that there are reappraisal and mandate of proven militias engagements independent from the working concern and that there are effectual controls in the blessing procedure and verification that the proven militias estimations and the related fiscal influences are reported in clip ( ibid:90 ) . Capital allotment procedure, the proxy authorization is trained to prosecute in capital undertakings that are compatible with the bringing of the group ‘s concern program ( ibid ) . An official reappraisal procedure proposes to guarantee that both proficient and concern criterions are met old to the committedness of capital undertakings. Internal audit is to analyze whether the group ‘s internal control system is good designed and runing efficaciously to satisfactorily respond to put on the line that are of import to BP ( ibid ) .6.2 A confirmation of the effectivity of BP ‘s internal controlOn April 20th 2010 that was a catastrophe for BP group, due to the leak oil of Mexico gulf. This incident brought a black consequence of which BP had to pay 1000000s lbs to reconstruct the environment of Mexico gulf. However, from the chance of this thesis, it is a good opportunity to verify and analyze the effectivity of internal control system of the mark company after experienced such a hazard.6.2.1 Liquidity analysisThis portion aims to prove the ability of cashing of BP. Due to an incident of leak oil, BP must apportion immense figure of money to pay the Restoration work. Thus a information analysis towards BP ‘s liquidness could be a opinion for BP ‘s periodical internal control public presentation. Current ratios are viewed a swayer of a company ‘s liquidness. Following are graph of current ratio of BP Group.Figure 4i?sCurrent ratio of BP Group 1( Datas from: www.wikinvest.com, 2012 )Figure 5i?sCurrent ratio of BP Group 2( Datas from: www.wikinvest.com, 2012 )Form the image above, it is clear that in the 2nd one-fourth of 2010 the current ratio dropped evidently from 1.13 to 0.96, chiefly because of a immense hard currency outgo of environment Restoration work. While, from the 3rd one-fourth of 2010 the ratio had a steady addition from 1.01 to 1.25 ( till one-fourth 2 of 2011 ) . It is showed that BP group usage about 1 twelvemonth to increase their liquidness for the possible payment for the Restoration work. After the one-fourth 3 of 2011, the current ratio restored to the normal value ( around 1.15, above 1 ) as shows before the incident. To reason, from the chance of liquidness informations, BP ‘s internal control system was effectual and showed a speedy reacti on to the incident in seting their liquidness.6.2.2 Profitability and stock value analysisIn this portion, return on plus rate and stock monetary value would be used to analyze BP ‘s profitableness and stockholders ‘ assurance.Figure 6i?sReturn on assets of BP Group ( 2007-2011 )( Datas from: Thomson ONE Banker, 2012 )It is clear that in 2010 the return on assets was minus ( -1.22 ) due to a big figure of compensation payments decrease the return rate. However, merely 1 twelvemonth yesteryear in 2011 BP kept their return on assets rate to be 8.98 % . It is incredible for a company to hold such strong recovery ability but BP did it. It besides shows the hazard direction work of BP is first-class.Figure 7: Daily Stock monetary value alteration of BP Group, compared with the FTSE all portion from 2008 to 2012( Datas from: Thomson ONE Banker, 2012 )However, the stockholders seemed non to be that confident with BP. Harmonizing to the stock monetary value graph, it is easy to be concluded that before the Mexico incident, the stock public presentation of BP were ever better than the whole stock market, nevertheless, after the oil leak incident the stock performed worse than the FTSE all portions. Therefore, it shows that investors ‘ are non that confident with BP group. Due to stockholders ‘ subdued reaction to the stock, it shows that the internal control of BP has a job in communicating with public. Therefore, BP needs a more comprehensive sweetening in communicating with stockholders, investors and citizens.6.3 RestrictionsThere are chiefly two restrictions about this instance survey. First of wholly, the informations collected from the one-year study would non stand for the existent concern fortunes. It is normally believed that before a listed company releases its study they would use accounting houses to fancify their fiscal studies, thereby doing an mistake between written and true public presentation. Therefore, the analysis based on t his would non accomplish a complete carnival. In add-on, the stock market public presentation can non 100 % shows the true rating of a company. From the position of psychological science, investors have a ‘Herd behavior ‘ , which means people tend to carry on the same actions as most of market participants conduct. Take BP for an illustration, after the leak oil incident all the people plans to sell the stocks, therefore doing an unreasonable uninterrupted low monetary value of stock. Furthermore, a hapless public presentation of BP ‘s stocks is non merely due to the Mexico incident, but besides the planetary economic recession. Thus it would act upon the equity of the researching consequence.6.4 DecisionAlthough a sound internal control system has been established inside BP group, it is still hard to easy cover with the black incident. Furthermore, the protecting map of internal control it is still limited because hazard can non be wholly eliminated. However, the substance of internal control is a variegation of hazards, non turning away. Therefore, via the fiscal information analysis, the effectivity of BP group ‘s internal control is fundamentally satisfied.Chapter 7 DecisionThis thesis foremost reviews the construct of internal control, and so introduces relative back uping theories of internal control. In add-on, research the construction of a group company, and its issue of how to set up an inside internal control system. Furthermore, a instance survey of BP group is showed to intensify the points proposed in the former portion. After the instance survey of BP group, some valuable positions and inventions about how to hone a group ‘s internal control are concluded as the decision portion. In chapter 3 we have introduced the COSO model and Turnbull study, they are elaborate instructions to houses for set uping an internal control system. Here, we will discourse a group company ‘s internal control constituents by uniting the COSO and Turnbull instructions. When speaking about a groups ‘ internal control, we must foremost find the aims of internal control. COSO ( 1992 ) defined the aims of internal controls from three facets: economic system and efficiency of operations, dependability of fiscal and direction studies and conformity with Torahs and ordinances. Although the diverseness ends set by the COSO study can be more orientated to the internal control, but triggered a pandemonium of ends in coordination. COSO ( 2004 ) studies amended ‘reliability of fiscal and direction studies ‘ into ‘reliability of studies ‘ , this new definition of ‘reports ‘ screens endeavors ‘ all studies, including fiscal studies. In add-on, the COSO ( 2004 ) fr

“Good Country people” and “Where are you going, Where have you been?” Essay

There are many similarities between the short stories â€Å"Good Country People† and â€Å"Where are you going, Where have you been?†, most notably their characters. Both stories contain a female protagonist, and a male antagonist, whose confrontations start out relatively normal, and progress to more and more surreal and twisted endings. Their main characters, Hulga and Connie, are shockingly similar, and yet strangely different, one a 15 year old wishing to be older and beautiful, the other a bitter 32 year old, wishing to be younger and ugly. These stories tell the tales of impressionable young women who are tempted by the delights of strange men, only to prove to themselves in the end how naive they really are. In â€Å"Where are you going, Where have you been?†, Connie starts out as most teenage girls seemingly would – she wants to be more daring, to appear older, to experience more of the world. She sneaks away from childish pursuits, to the teenage or adult world, to drink and kiss boys rather than shop for school clothes, to see movies in a steamy car instead of in a theater. She talks of being beautiful as if it were her only good grace – beauty, to her, is the ultimate goal. She wants to be older, and more beautiful, and this is her downfall. Her foolishness, and her naivety is what appeals to Arnold Friend in the first place. Arnold Friend, a stranger, appeals to her early on in the story. He is older, more powerful, and smarter. She is frightened, of course, but intrigued, and it is her yearning for the adult world, and the adult life, that, in the end, causes her downfall. She is suckered in by the convincing conman who uses his words to appeal to her weaknesses. She is tricked into being what Arnold wants her to be by his smooth words and his faà §ade of confidence. She’s toyed with, played for the naà ¯ve fool she is, who is far too young for the world she wants to be a part of. Only at the very end of the story does she begin to realize what she has gotten herself into. She shows her true colors once she is confronted. In â€Å"Good Country People†, Joy is a relatively normal girl with some not-too-normal problems. For one thing, her leg got blown off when she was younger in a bizarre hunting accident. This physical change made her completely self conscious, and essentially ruined her life. She could no  longer be happy being herself, because she sees herself as true ugliness now. Thus, she feels forced to make herself what she thinks she is. She hates beauty now, and changes everything about her to seem ugly. She’s been to college, and yet still acts childish. She’s trying to be young, and ugly. And Manley Pointer notices this quality of her, and takes advantage of her. No matter how ugly she tries to be, he still tries to (or at least pretends to) like her for who she is. Hulga is, regardless of her ugly campaign, extremely flattered, and lets her guard down long enough for Manley to get away with her glasses, her leg, and more importantly, her dignity. She is also played f or a fool based completely on her own insecurities. She too is a victim of a conman who notices that things aren’t always what they seem. Connie and Hulga are very similar, as characters, and yet very different all the same. They both have their insecurities, and they are both easily preyed on by conmen and smooth talkers, but their insecurities are in entirely different realms. They both want what the other has, and due to this, they are constantly trying to be someone else, not themselves, and this is what makes them so easy to attack. They don’t know who they really are, and they think they want to be something else. This naivety is their downfall – they pretend to be something else, join a group they shouldn’t be in, and they are tempted by the men in these groups. But, when the tables turn, and their men aren’t what they appear to be, Connie and Hulga revert completely, from relatively confident phonies to sniveling little girls, helpless and hopeless, in their fake lives. These two women are seemingly innocent, random bystanders picked by older smarter conmen. However, one could easily hold them responsible for their own fates. Not that the victim in a crime is to blame, but, honestly, if you leave your car door open, with the keys inside, and the motor running, while you go inside a store for a few hours, how can you possibly seem shocked when it gets stolen? These two women, whether they believe it or not, are waving hundreds of flags at these conmen – â€Å"Please target me!†Ã¢â‚¬ ¦ â€Å"Take my leg!†Ã¢â‚¬ ¦ By openly flaunting their insecurities and by allowing themselves to be charmed to the point of trusting the conmen, they are, if not wholly, then at least partially responsible for their own fates. They reached their  own conclusions, and they got what they deserved. Connie and Hulga are the same person, essentially – a woman with different problems wishes to be something that they are not, and wiser and smoother conmen see this, and take advantage of them. In the end, they are proven to be the phonies that they really are, and are left more vulnerable, and more open, than they were before they tried to infiltrate the world in which they didn’t belong. If there were a shared moral to these stories, and there is most definitely not an obvious one, they’d both be somewhere along the lines of â€Å"Be happy with what you have, because you might not belong anywhere else†, and in the cases of Connie and Hulga, this moral fits perfectly. They are the same person with different circumstances, and they are so easily preyed on by the wiser smoother conman. As these stories blatantly state, be happy with what you have. You might not fit anywhere else, and one day, someone might just call you on your bluff, to disastrous conseque nces.

5 Parts of the Writing Process Essay Example for Free

5 Parts of the Writing Process Essay ? 1. Pre-Writing – Before you sit down to write something, you need to figure out what you are going to write about. 2. Drafting – Once you have planned out your ideas, the next step is to start drafting, or writing. 3. Revising – When you revise, you are looking at the parts of your document and making sure that each part works together to make a coherent whole. 4. Proofreading – When a person is finished the â€Å"writing† step of the process and have revised your work, then it is up to the writer to take a step back and look at the writing for errors and correct them. 5. Delivering – Delivering in its simplest form refers to a text that is meant to be read to an audience. 5 Resources to Help You Improve Your WritingSkills 1. Writing Clearly: A Self-Teaching Guide by Dawn B. Sova With Writing Clearly: A Self-Teaching Guide, you’ll discover the answers to these questions and many more about the basics of communicating effectively through the written word. Each chapter in this hands-on guide focuses on key steps in the writing process, identifying the shared and differing skills demanded by each type of writing; from a persuasive essay, a business letter, or a scientific report. The straightforward, structured format makes it fully accessible, providing an easy-to-understand overview for everyone from students beginning to build skills, to adults looking to improve their writing, to the experienced writer hoping to further hone skills in a certain area. This book allows you to build gradually on what you have learned at your own pace. Questions and self-tests reinforce the information in each chapter and allow you to skip ahead or focus on specific areas of concern. Packed with useful, up-to-date information, this clear, concise volume is a valuable learning tool and reference source for anyone who wants to develop or improve his or her basic writing skills. 2. Report Writing Skills Training Course by Margaret Greenhall  This book makes report writing a step by step process for you to follow every time you have a report to write. Margaret’s understanding of how people read and remember gives a unique view to the process of report writing. This book brings you her tried and tested training techniques to make the process of writing a report straight forward. 3. The Writer’s Workplace with Readings: Building College Writing Skills by Sandra and John Scarry John Scarry and Sandra Scarry present writing instruction in a clear and manageable form, with step-by-step explanations to help build and maintain students’ confidence in their writing. The result of many years of classroom teaching and research, this comprehensive and time-tested resource reflects the authors’ understanding that every student is unique, with different backgrounds and interests that must be accounted for as they engage in the writing process. This offers instructors the opportunity to customize their own version of the book by including or excluding any sections that they do or do not teach in their course-making this a text that reflects not only the students’ needs and experiences, but their instructor’s as well. 4. Writing With Power: Techniques For Mastering the Writing Process by Peter Elbow A classic handbook for anyone who needs to write. This book speaks to everyone who has wrestled with words while seeking to gain power with them. Here, Peter Elbow emphasizes that the essential activities underlying good writing and the essential exercises promoting it are really not difficult at all. Employing a cookbook approach, Elbow provides the reader (and writer) with various recipes: for getting words down on paper, for revising, for dealing with an audience, for getting feedback on a piece of writing, and still other recipes for approaching the mystery of power in writing. By taking risks and embracing mistakes, Elbow hopes the writer may somehow find a hold on the creative process and be able to heighten two mentalities–the production of writing and the revision of it. From students and teachers to novelists and poets, Writing with Power reminds us that we can celebrate the uses of mystery, chaos, no planning, and magic, while achieving analysis, control, explicitness, and care in whatever it is we set down on paper. 5. Steps to Writing Well by Jean Wyrick  Writing well is just a step away! This book gives the student the ultimate step-by-step guide to writing effective essays. With the author’s clear, practical advice and student-friendly tone, you’ll find it easy to begin, organize, and revise your writing-from choosing a topic to developing your essay to polishing your prose. Interesting readings in a variety of styles offer useful examples of the types of essays you’ll most often be assigned in your composition and other college classes. 5 Parts of the Writing Process. (2017, Jan 26).

Critically discuss how childhood and youth research builds on a series Essay

Critically discuss how childhood and youth research builds on a series of values, beliefs and images about children and young people. Suggested approach - Essay Example The aim of participation is to ensure good outcomes for children and young people themselves, community and organization. The involvement of children and young people is likely to be important to them if they can identify that their views have a consideration and have made a difference. Effective participation means that the involvement of young people and children leads to change (Bucknall 2014). Researches that involve children and young people bring up ethical concerns that involve: Researchers need to respect the developing nature of young people and children to be involved in deciding whether to participate in research. Their level of maturity has an effect on whether his/her consent is important or enough to authorize participation (Cooper 2014). iii. Young people who are developing- They are able to understand some relevant information, but they remain vulnerable. There must be consent of these young people which may not be sufficient to authorize research. Research on children and young people reveal make things concerning this group of people. Scientists, scholars and researchers have carried out investigations on young people and came up with various conclusions. Investigating the sexual behaviors of the young people is a very interesting adventure. There is a common belief that young people are very active sexually. In their adolescence stage of life, young people normally experience various biological changes that may confuse them. Irrespective of geographical location, children and young people experience biological changes that affect their physical appearance. The question in the mind of researchers is whether a person’s environment affects their sexual behaviors. In order to solve this question, research must be done. Young people who live in urban places are exposed to many things in life. The urban environment tends to provoke the young people to

There has been an increased presence of non-state actors in the field Research Paper

There has been an increased presence of non-state actors in the field of international dispute resolution. Discuss the significa - Research Paper Example In recent years however, non-state actors, including NGOs, individual personalities, and even private corporations have also become more involved in the management of these international disputes. This is a significant development especially as greater transparency and participation of the NGOs at the WTO and the ICSID can be ensured. This paper shall discuss significance of such move in eventually securing transparency and improved participation of non-state actors in the actions and decisions of the WTO and the ICSID. Initially, this paper shall discuss incidents wherein non-state actors have taken a greater role in the field of international dispute resolution. The relevance of their role in terms of transparency as well as improved participation shall also be presented. A focus on the role of non-state actors in relation to international financial institutions shall also be discussed in this paper in order to better understand the impact of non-state actors on the international c ommunity. Body The elements involved in maintaining and building states calls for the assistance and participation of all state and in this case, non-state actors. Capable states are those which have strong and responsible as well as vital forces to ensure peace, prosperity as well as public goods for the people (Ulimwengu, 2007). The state has long been considered the primary focus of these processes, and the non-state actors have a crucial role to play in supporting these national and government processes (Mabogunje, 2000). It is therefore important to determine who these actors are. It is also important to identify the aspects of governance where they can assist and to understand better how they work, their style of interventions, and the barriers interfering with their actions (Catbagan, 2011). In Africa, the role of the non-state actors have been especially significant in terms of ensuring the security and public safety of non-state territories, and those territories where issu es of insecurity have impacted on state capacity in terms of security management (Ulimwengu, 2007). Issues and challenges in governance and development have prompted the need for assistance from non-state actors. This was the same in different parts of the world, including Asia, Africa, and even Europe. As transitions in African rule were observed, major shifts in political relations were also observed (Ulimwengu, 2007). The end of the Cold War was seen alongside efforts to democratize African countries and in the midst of these challenges, non-state actors emerged in the form of NGOs and other related organizations (Woodward, 2013). In Easter Europe, some of these groups had a crucial role in toppling the communist regimes. This was seen in Poland with the union-based Solidarnosc, including other movements in Romania, East Germany, and the Soviet Union (Heines, 2010). There is not much evidence to indicate whether these actors persisted in their role within the post-communist regim es; still, their roles have been acknowledged and their possibilities have also been considered for other areas. Non-state actors have become more accepted in the international community in the past few decades as politicians, sociologists, and mediators have sought their expertise especially where certain state actions have to be understood in terms of impact and sustainability (Ulimwengu, 2007). Non-state actors include NGOs and are generally understood within civil

The importance of cultural diversity in one's life Essay

The importance of cultural diversity in one's life - Essay Example Through improved communication and a broader sense of understanding, culturally diverse communities can achieve success that is unparalleled in homogenous populations. The wide influx of ideas and practices in a culturally mixed group enriches a community and allows for greater intellectual, economic, and spiritual growth within the population. Cultural diversity is becoming ever more important in an increasingly global society and also has an accepted facet in day to day life. Cultural diversity spears economic growth and can help in the reduction of world poverty (UNESCO). Distinct cultures are capable of interacting in an economically advanced manner that will help not just the motherland, but other countries in need as well. Besides economical benefits, cultural diversity also enriches the human soul. Through the exchange of cultural ideas, individuals experience intellectual, emotional, moral, and spiritual growth (UNESCO). For example, millions of people worldwide now practice yoga as a form of exercise and spiritual relaxation. This would not be possible without the exchange of ideas between cultures. All cultures can stand to gain valuable insight into economic and emotional health by exchanging ideas. Multiculturalism within a community encompasses many distinct groups and interests. Race, gender, class, and sexual orientation are some of the categories that help decide the relationships between different cultural groups (Rendon). The key to success in environments with extensive multiculturalism is acceptance and tolerance. This is in opposition to monoculturism in which the group of people is homogenous or not mixed as in multiculturalism. A culture that is completely homogenous may view cultural diversity as a threat to social life, education, or financial well being (Rendon). However, homogenous groups of people are becoming more rare as the world continues to grow. Most college campuses are mixed gender, as well as mixed race, mixed socio-economic status and mixed gender orientation. For this reason, it is important to establish acceptance and communication within multicultural campuses. Diversity is nothing something that should be viewed as a threat, but something that sho uld be embraced as a positive force. As communications, transportation, and biotechnology continue to improve, the world will continue to move towards a global culture instead of distinct cultural areas. It is important to recognize a degree of cultural unity in order to give validity to laws passed by international bodies, such as the United Nations (Ayton-Shenker). International law is designed as rules for the global community and does not establish differences between particular countries. As diverse as the world is, these unifying bodies provide a sense of group belonging to the global community (Ayton-Shenker). In this sense, cultures that are as different as China to Brazil to the United States are all held to the same standards under international law. The knowledge that can be attained by accepting other cultures is perhaps the most important aspect of cultural diversity. Rudolph J. Marcus accounts for this wealth of information in his article, "Harvesting the advantages of cultural diversity." He states, "working together across paradigms can be fruitful. Some behaviors and practices on both sides help this process,

Study of management Essay Example | Topics and Well Written Essays - 250 words

Study of management - Essay Example Health insurers don’t need applicants to undergo a genetic test. The article from Forbes magazine (2008) states that the former president George Bush signed the Genetic Information Non-discrimination Act (GINA) into law to prevent discrimination of people who receive genetic test by their employers. Weiss (2008) states that the genetic discrimination has its consequences for example if an employer used genetic test to access the cost of insurance to an employee it would discourage the rest of the employees from seeking the test (P. 224). In reference to the article, management theory that is for or against the article is libertarian theory. This means if an employer or any other equal employee is for the theory they are against genetic discrimination. If they are against the theory, they support genetic discrimination. The article from Forbes magazine has taught me that it is unethical and illegal for an employer to discriminate potential employees based on their genetic characteristics for example, color of skin gender or disability which does not affect the work performance. Employers too are to keep the confidential the medical information of their employees thus they may find themselves on the risk of legal charges. The article teaches about practicing business ethically by not discriminating potential employees just because they are genetically disordered. Every employee should be giving an equal chance to display their professionalism in an organization. The government has clearly stated that it’s illegal to judge the capability of someone using their genetic information. Moreover, the government also has banned the use of genetic testing to deny both health insurance and employment opportunities. Health insurers might not need one to undergo a genetic test, but the customer can volun teer (Analytica, 2008). In conclusion, I aim to apply what I have learnt in my practice, by not judging other employees according to their genetic disorder, rather than

Cultural Music Essay Example | Topics and Well Written Essays - 2500 words - 1

Cultural Music - Essay Example Cultural music is confronted to the misconception that represents music in the boundaries of its functions. However cultural music should not be considered in the limitations of modern musical instruments, it depicts the traditions and norms to which we belong. Moreover cultural music depicts those values, which we have put in oblivion today and which became our identity as these presents our roots that our predecessors left. Cultural music addresses questions not just about music but about the nature of contemporary culture, because changing perceptions of music have less to do with the music itself than with changes in other cultural practices, values, and attitudes. What we are going to explore in this paper are the values, cultural music uphold, its historical significance, where it came from and the factors that distinguishes the cultural music from that of popular culture. We would put light across factors like religious rituals, social rituals, materialism and how it developed .

The Value of Digital Privacy in an Information Technology Age Research Paper

The Value of Digital Privacy in an Information Technology Age - Research Paper Example In the wrong hands, unauthorized access to information may lead to the destruction of vital information or usage of information for destructive purposes. Another way through which individuals can access private information is through phishing. Spear-phishing, in particular, has become increasingly common. It involves hacking individuals’ computers or accounts by sending e-mails to individuals’ accounts. These e-mails often get citizens to provide sensitive information. They are personal, crafty and deceitful messages that easily pass security protections. According to security software maker RSA, about one in every 300 emails in 2011 was a phish. Data cables are also used to access private information. Network cabling companies collect personal and non-personal information. Different cabling companies have different terms of use in regard to privacy. The companies, through their websites, collect information ranging from names, physical address, e-mail address, age, pas sword and other information necessary to conduct business with these companies. This information may then be used to facilitate citizens’ use of websites, to send information to citizens and to conduct business. ... Access to private information may lead to crimes such as identity theft, fraud, defamation, slandering and discriminatory practices. Also, gaining access to confidential information increases the risks of such information being disclosed. This causes dissatisfaction and encourages mistrust in individuals. In America, identity theft has become increasingly common and it destroys an individual’s financial reputation. Invasion of personal privacy shows inefficiency on the government’s part and other organizations that keep citizens’ records. Access to private citizen information through computer applications has greatly facilitated investigations into financial crimes, drug crimes and sex crimes (Soghoian, 2011, 18-20). Therefore, law enforcers are able to track crimes across borders. Because criminals have established highly complex networks across the globe, computer applications enable law enforcers to deter international crimes. Technological advancements go a g reat length in facilitating security and policing. Through soliciting â€Å"suspicious information†, the police and law enforcers can prevent crimes that threaten humanity and the dignity of humanity such as terrorism and identity theft. Determine what measures citizens can take to protect private information or information they do not want to be disclosed. To guard private information, citizens can implement measures that recognize the dangers of unwarranted access to private information. Preventive measures should be promoted to limit these dangers.

Lotus Car Rental Alternative Fuel Assessment Essay Example for Free

Lotus Car Rental Alternative Fuel Assessment Essay Introduction The creation of a fleet of alternative fuel sourced automobiles would be a wise decision for the Lotus Car Rental Company. There are two major issues that are on the minds of people these days, the environment and money. By creating a fleet of alternative fuel based automobiles the Lotus Rental Care Company can help ease the fears of people in both categories. By having the ingenuity to have a fleet of alternative fuel automobiles; the Lotus Car Rental will set themselves apart from the rest of the rental car companies. Lotus Car Care will be the leaders in environmentally safe car rentals. The following research paper will discuss the background of this topic, the costs of working with alternative fuel automobiles, the technical aspects of alternative fuel, the environmental aspects of alternative fuel as well as discuss some recommendations for the Lotus Car Rental Company. Background The Lotus Car Rental Company is looking into adding a fleet of alternative fuel sourced vehicles to their supply. Alternative fuel sourced vehicles are classified as being resources other than petroleum. A few of these sources are produced here locally and some are derived from renewable sources. They often produce less pollution than does gasoline. (Alternative Fuel Vehicles, 2012). Hybrids are also considered to be an alternative sourced vehicle. A Hybrid vehicle is one that utilizes more than one form of onboard energy to achieve propulsion (Edmunds.com, 2009). Financial Feasibility Several factors influence the financial feasibility of adding alternative fuel vehicles to the fleet: vehicle cost, maintenance, advertising, and return on investment. Additional considerations include: market share, future growth, and implementation cost. The first consideration is the cost of adding hybrid vehicles to fleet inventory. Individual vehicle cost ranges from $23,000 to $37,000 and the models available include Honda Civic, Volkswagen Jetta, Lincoln MKZ, and Lexus ES300H (Almeida, 2009). Fleet costs would be less depending on number of units purchased and vehicle upgrades. Lotus Rental Car’s rentals fall into three categories: economy, mid-size, and luxury. Based on a cursory review of Lotus Rental Car’s primary income producers, the number of hybrid vehicles added should fall within the three to five percent range for each category. The initial outlay should equal or be less than the number of vehicles within each specific category that will be retired within the purchase year. For instance, if ten percent of economy vehicles will be retired then five percent of the new vehicles purchased will be hybrid. By timing the introduction of the new hybrid vehicles with inventory retirement the initial cost outlay will be mitigated. The anticipated maintenance costs will be similar to the previous year’s cost and no change is expected. Income from vehicles retired is expected to equal the same percentage as non-hybrid automobiles and will not constitute a negative financial impact. Advertising is a major consideration, although the cost is not expected to increase. Target markets will be in major cities where Lotus Rental Car’s already has a large presence. Urban centers with environmentally conscious drivers are the best place to begin a new hybrid product line. Adding information regarding the new line to existing websites provides maximum exposure with minimal cost. Other markets include environmentally conscious corporate businesses that already have a corporate account with Lotus. Market share and future growth is connected to advertising and return on investment. The implementation costs are minimal. The monthly return on investment is tied to advertising, environmental activity, and rental cost. Advertising includes national campaigns and local markets. The rental market incorporates online sales and local customers. The majority of travelers will book a rental vehicle prior to arriving at the rental company. Pricing will play an important factor in a rental commitment. Up-sale will increase income potential. Economy vehicles rentals begin at $9.99 and increase, depending on the current sales program. The cost may decrease, depending on the number of days booked, special pricing, and additional sale of navigation, XM radio, and infant seats. However, the average rental price for an economy vehicle is $29.99 per day and hybrid vehicles rent from $65.99 to $159 per day. The return on investment per day would range from $35 to $129. It is clear the automotive industry is offering a variety of hybrid vehicles in response to customer demand. The future of the automotive industry includes alternative fuel vehicles of all models. As the automotive industry embraces hybrid sales that increase their market share, so should the vehicle rental industry. Entry into a new product line will have higher costs than non-alternative vehicles until the product becomes well immersed into the market. In the case of hybrid vehicles it is prudent that Lotus Rental Car adds hybrid vehicles to their urban centers and joins the environmental movement along with major vehicle manufacturers. It is clear that as time passes, a portion of new business will gravitate toward rental car companies that offer alternative fuel vehicles. Lotus Rental Car company will lose future market share and the expense of entering the hybrid market will increase if Lotus Rental Car company enters the market after its competitors (Schueneman, 2009). Technical Aspects One of the many advantages of owning a hybrid vehicle is saving money at the pump. Unlike your standard gas running car, this on average would do about 21 mpg highway and city driving. Hybrids on average are doing 30 mpg highway and city. An article written on nationalgeographic.com it shows the actual fuel saving over a year span â€Å"The average American driver between the ages of 34 and 55 drives 15,291 miles annually. Divide this annual mileage figure by 21 miles to the gallon for the standard model, and you will find that you would buy about 728 gallons of gasoline a year. In contrast, if you divide the annual miles figure by 30 for the hybrid, you would determine that the annual gas purchase would be of about 510 gallons. You would save 218 gallons of gas a year with the hybrid. Multiply this by a conservative $3.50 a gallon for a dollar savings of $763. By selecting the hybrid over the standard model, you would make up for the $5,560 difference in sticker price in seven to eight years. Subtract the maximum tax incentive and you could recoup the $2,160 difference in less than three years. Thus, in this example, you would save money either by paying full price and driving your hybrid for more than eight years, or by driving it for more than three years with a tax credit.†(Nationalgeographic.com by Lynne Haley Rose). So although the price tag is little higher on hybrids you will easily make your money back in the gas savings. Most people may think,† Yeah, you save on gas, but don’t get the as much horsepower when you purchase a hybrid vehicle.† The idea of combining electric and gas does seem to leave much room for speed and maneuverability. This assumption is not true; yes hybrids do have smaller gas engines, but they make it up with their electric engine. Coupled with the gas engine, the electric engine can send power to various parts of the car, mainly the wheels. This is a very good advantage over standard horsepower, because it could actually supply more power to the car; which increases its speed. With all this talk about horsepower and speed, we begin to think about maintaining a hybrid car. Once again, just because it’s a hybrid doesn’t mean it’s more expensive. Most of the basic normal maintenance requirements like oil changes and tune ups cost about the same as standard cars. They even have their own perks. A standard car requires an oil change every 3,000 miles; whereas hybrids are every 6,000 miles. One of the most expensive items on a hybrid is the car’s battery; which can run you up to 3,000 dollars. Don’t let this number scare you, because these batteries have no real recorded life expectancy â€Å"a long time† is what I kept seeing in my research. As said in (8 Reasons to Buy a Hybrid Car) â€Å"Theres no difference between a hybrid and the gas-powered car parked in your garage — it can accelerate just as quickly and cruise just as fast on the highway, and it handles just as smoothly. Most important, hybrids are just as safe to drive.† (By Alan Rider Parents.com). Hybrids have come a long way since the first Prius 10 years ago. They’ve excelled in mpg, horsepower and style. There are a number of hybrids out there now and many styles to choose from in the standard and luxury lines. As far a comfortable ride, hybrids and standard cars are the same. Now, of course, if you go out and get a Lexus hybrid you’re going to have more luxuries than if you purchased a Toyota hybrid. Most cars you get know have all of the technical capabilities available and if they don’t they can be added. Technology will not stop growing and with that so will the new age of hybrids. Environmental Aspects Petroleum based fuels can create harmful emissions like carbon dioxide; nitrous oxides, and particulate matter, all of which degrade the environment (â€Å"5 things you need to know about alternative fuel vehicles,† 2008). These methane, carbon dioxide, nitrous oxide and other gasses are known as greenhouse gases. When these gasses build up they contribute to global warming. HybridCar.org claims that Hybrid vehicles produce 80 percent less greenhouse gases than conventional fuel based vehicles (Hybrid Cars And Pollution, 2005). Toxicity is another problem with petroleum fuel based vehicles. The producing of some forms of alternative fuels can create fewer toxins than those produced by traditional fuel vehicles. For instance, biodiesel is a fuel that is created from leftover vegetation like corn stalks. Biodiesel is biodegradable and non-toxic which makes it safe for the environment. Noise pollution is also a form of pollution. Car engines can produce 110 decibels of noise, which is twice as loud as a normal conversation.. The noise will come from the fuel pump, pistons and compressors that create the combustion and cycle the fuel. Vehicles with alternative fuel sources such as hydrogen fuel cells will produce no sound or vibration as they require no moving parts to produce fuel. Recommendations The research has shown that a fleet of alternative fuel sourced vehicles would be the best idea for everyone involved. The positive feedback generated by offering this fleet of vehicles would be astounding. The market for rental cars with alternative fuel capabilities is very small and the Lotus Car Rental Company would have the market cornered. The cost of maintain a fleet of these vehicles are no different than that of petroleum fueled vehicles. The consumer that is able to rent these vehicles will also benefit by being able to save more money on energy for the vehicle. The environment will also benefit from this addition to the Lotus Car Rental fleet. The amount of pollution and emissions that can be cut back will be helpful to the surrounding community and the future generations to grow up in the community. Conclusion The creation of a fleet of alternative fuel sourced automobiles would be a wise decision for the Lotus Car Rental Company. After conducting much research, the decision to incorporate a fleet of alternative fuel sourced automobiles would be in the best interest of the public as well as the company. The research has shown the monetary benefits, the technical benefits as well as the environmental benefits of acquiring a fleet of alternative fuel sourced automobiles. The benefits of having a positive company reputation are enormous. Having an environmentally friendly car rental company has the potential of being a lucrative decision. Living a green lifestyle has become an important thing in this day and age. The Lotus Car Rental Company will have cornered the market by having an entire fleet of environmentally friendly automobiles. References Alternative fuel vehicles. (2012). Retrieved from http://www.fueleconomy.gov/feg/current.shtml Edmunds.com. (2009). Retrieved from http://www.edmunds.com/fuel-economy/what-is-a-hybrid-car-how-do-hybrids-work.html Almeida, A. (2009, August 13). Average Cost of a Hybrid Car. Retrieved from CarsDirect: http://www.carsdirect.com/car-pricing/whats-the-average-cost-of-a-new-hybrid-car Schueneman, T. (2009, February 12). Enterprise Rent-a-Car Adds 5000 Hybrids to its Fleet of Fuel Efficient Cars. Retrieved from sustainablog: http://sustainablog.org/2009/02/enterprise-rent-a-car-adds-5000-hybrids-to-its-fleet-of-fuel-efficient-cars/ 5 things you need to know about alternative fuel vehicles. (2008, July). greencar.com, (), . Retrieved from http://www.greencar.com/articles/5-things-need-alternative-fuel-vehicles.php Hybrid cars and pollution. (2005). Retrieved from http://www.hybrid-car.org/hybrid-cars-pollution.html