Role of Banks in the Economic Development Essay Example for Free

Role of Banks in the Economic Development Essay Bank: An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks,drafts, and notes; certifies depositors checks; and issues drafts and cashiers checks. Features of Bank: †¢ Money Dealing †¢ Acceptance of Deposit †¢ Grant of loan and advances †¢ Payment and withdrawal of deposits †¢ Transfer of funds †¢ Portfolio management †¢ Foreign Exchange dealing Banking; In general terms, the business activity of accepting and safeguarding money owned by other individuals and entity and then lending out this money in order to earn a profit. Banking is a business of accepting deposits and lending money. It is carried out by financial intermediaries, which performs the functions of safeguarding deposits and providing loans to the public. In other words, Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand and can be withdrawn by checks, draft order and so on. Banking Company: Any company, which transacts the business of banking Banking System: Banking System is a principal mechanism through which the money supply of the country is created and controlled. The banking system enables us to understand Commercial Banks, Secondary Banks, Central Banks, Merchant Bank or Accepting Houses and Discount Houses but to exclude the Saving Banks and Investment and other intermediaries. Number and types of Banks: The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. Commercial Bank: A bank offering checking accounts, savings accounts, certificates of deposit, personal and business loans, and other, similar services. Commercial banks charge fees and/or interest for many of their services, though they may pay interest on other services. A retail bank is often an individual branch of a commercial bank where one may procure these services. The main functions of commercial banks: The main functions of commercial banks are accepting deposits from the public and advancing them loans. However, besides these functions there are many other functions which these banks perform. All these functions can be divided under the following heads: 1. Accepting Deposits: The most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks. For example, fixed and low income group people deposit their savings in small amounts from the points of view of security, income and saving promotion. On the other hand, traders and businessmen deposit their savings in the banks for the convenience of payment. 3. Over-Draft: Banks advance loans to its customer’s up-to a certain amount through over-drafts, if there are no deposits in the current account. For this banks demand a security from the customers and charge very high rate of interest. 4. Discounting of Bills of Exchange: This is the most prevalent and important method of advancing loans to the traders for short-term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. In this way, businessmen get loans on the basis of their bills of exchange before the time of their maturity. 5. Investment of Funds: The banks invest their surplus funds in three types of securities—Government securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc. Other securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks units of UTI, shares of Regional Rural banks etc. 6. Agency Functions: Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows: 1. Banks collect checks, drafts, bills of exchange and dividends of the shares for their customers. 2. Banks make payment for their clients and at times accept the bills of exchange: of their customers for which payment is made at the fixed time. 3. Banks pay insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest etc. as per directions. 4. Banks purchase and sell securities, shares and debentures on behalf of their customers. 5. Banks arrange to send money from one place to another for the convenience of their customers. 7. Miscellaneous Functions: Besides the functions mentioned above, banks perform many other functions of general utility which are as follows: 1. Banks make arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, legal documents etc. 2. Banks give reference for their customers. 3. Banks collect necessary and useful statistics relating to trade and industry. 4. For facilitating foreign trade, banks undertake to sell and purchase foreign exchange. 5. Banks advise their clients relating to investment decisions as specialist 6. Bank does the under-writing of shares and debentures also. 7. Banks issue letters of credit. 8. During natural calamities, banks are highly useful in mobilizing funds and donations. 9. Banks provide loans for consumer durables like Car, Air-conditioner, and Fridge etc. Central Bank: The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort. Function of Central Bank: In the monetary and banking setup of a country, central bank occupies central position and perhaps, it is because of this fact that this called as the central bank. In this way, this bank works as an institution whose main objective is to control and regulate money supply keeping in view the welfare of the people. Central bank is an institution that fulfills the credit needs of banks and other credit institution, which woks as banker to the banks and the government and which work for the economic interest of the country. 1. Monopoly of note issue: Note issue primarily is the main function of a central bank in every country. These days, in all the countries where there is a central bank generally it has got the monopoly of the sole right of note issue. In the beginning this was not the function of central bank, but gradually all the central bank gas acquires this function. There are many advantages of the note issue by central banks some important ones are as follow: 1. Central bank controls the credit creating power of commercial bank. By controlling the amount of currency in circulation, the volume of credit can be controlled to quite a large extent. 2. People have more confidence in the currency issued by the control bank because it has the protection and recognition of the government. 3. In the event of monopoly of note issue of central bank, there will be uniformity in the currency system in the country. 4. The currency of the country will be flexible if the central bank of the country has the monopoly of note issue because central bank can bring about changes very early in the volume of paper money according to the needs of business, industry and messes. 5. The system of note issue has some advantages. If the central bank of the country has the monopoly of note issue, all such advantages will accrue to the government. 2. Bankers, Agent and Adviser to the Government: As banker to the government, central bank provides all those service and facilities to the government which public gets from the ordinary banks. It operates the account of the public enterprise. It mangers government departmental undertaking and government funds and where there is a need gives loan to the government. From time to time, central bank advice the government on monetary, banking and financial matters. 3. Custodian of Cash Reserve of Commercial Bank: Central bank is the bank of banks. This signifies that it has the same relationship with the commercial banks in the country that they gave with their customers. It provides security to their cash reserves, give them loan at the time of need, gives them advice on financial and economic matter and work as clearing house among various members bank. 4. Custodian of Nation’s Reserve of International: Central bank is the custodian of the foreign currency obtained from various countries. This has become an important function of central bank. These days, because with its help it can stabilize the external value of the currency. 5. Lender of The Last Resort: Central bank works as lender of the last resort for commercial banks because in the time of need it provides them financial assistance and accommodation. Whenever a commercial bank faces financial crisis, central bank as lender of the last resort comes to its rescue by advancing loans and the bank is saved from being failed. 6. Clearing House Function: All commercial bank have their accounts with the central bank. Therefore, central bank settles the mutual transactions of banks and thus saves all banks controlling each other individually for setting their individual transaction. 7. Credit Control: These days, the most important function of a central bank is to control the volume of credit for bringing about stability in the general price level and accomplishing various other socio economic objectives. The significance of this function has increased so much that for property understanding it. The central bank has acquired the rights and powers of controlling the entire banking. A central bank can adopt various quantitative and qualitative methods for credit control such as bank rate, open market operation, changes in reserve ratio selective controls, moral situation etc. Other functions Besides the 7 functions explained above, central banks perform many other functions that are as follows: 8. Collection of Data: Central banks in almost all the countries collects statistical data regularly relating to economic aspects of money, credit, foreign exchange, banking etc. from time to time, committees and commission are appointed for studying various aspects relating to the aforesaid problem. 9. Central Banking in Developing Countries: The basic problem of underdeveloped countries is the problem of lack of capital formation whose main causes are lack of saving and investment. Therefore, central bank can play an important role by promoting capital formation through mobilizing saving s and encouraging investment. Role of banks in the Economic development: There should be no anonymity as about the importance of Banking in the Economic development of a developing country like Bangladesh. Banks performs some vital role that are conducive to economic development are as follows:- 1. To create generate capital market. 2. To play effective role in the Economy by supplying capital. 3. To persuade quench, bill of exchange etc. for easy mode of exchange 4. Financing of industries. 5. Financing of Trade and Commerce and rendering services to its chants. 6. Financing of Agriculture. 7. To maintain balance of foreign trade and to check price hike in the market by controlling credit.

Anti-traditional Conception of Sex in Pounds Coitus Essay -- Pound Co

Anti-traditional Conception of Sex in Pound's "Coitus" Â   Critics have been fascinated and often baffled by Ezra Pound's shifting poetic style, which ranges from the profound simplicity of "In a Station of the Metro" to the complex intertextuality of the "Cantos." Pound's significance derives largely from his constant resolve to break traditional form and ideology, both literary and poetic. What is particularly unique about Pound, however, is that as he continually establishes precedence, he rarely abandons his thorough knowledge and appreciation of classical literature, drawing heavily from his literary and historical education in even his most groundbreaking works. "Coitus," one of Pound's early short works, exemplifies both his interest in the simple, efficient techniques of vorticism and his homage to the classics, interrelating them to create a statement that is unique and anti-traditional. Â   COITUS The gilded phaloi of the crocuses are thrusting at the spring air. Here is there naught of dead gods But a procession of festival, Â   A procession, O Giulio Romano, Fit for your spirit to dwell in. Dione, your nights are upon us. The dew is upon the leaf. The night about us is restless. Â   Although classical allusions and imagist influences are an essential part of "Coitus," it is the disturbingly stark sexual force that dominates its tone. However bluntly carnal the poem seems, it does not at any point explicitly mention sex, except in the unmistakable directness of the title. Pound renders his tone through a montage of classical allusions and phallic imagery which resemble the vorticistic Japanese haiku; the beginning and ending two lines share similarities with Pound's... ...ion, yoking allusive fragments of western culture with elements of modern life. By combining the ancient with the new, Pound produces disturbing and sexually centered anachronisms that capitalize on the previous history of literature but also revolutionary modern theories; psychological, sexual and literary. As a whole, "Coitus" is an atom of knowledge, capable of splitting and exploding into far reaches of historical and literary realms, yet instantly and intriguingly disturbing for its modern sexual tone. Â   Â   The following poems are borrowed from page 109 of Personae: The Collected Shorter Poems of Ezra Pound, 1926. Â   Â   IN A STATION OF THE METRO The apparition of these faces in the crowd; Petals on a wet, black bough. Â   ALBA As cool as the pale wet leaves of lily-of-the-valley She lay beside me in the dawn. Â  

Media Corruption Essay

‘Whoever controls the media, controls the mind† In today’s world, the media has become a necessity just like food, clothing, and shelter. The media was ideally designed to be impartial and unbiased – to provide information, news, and knowledge that is objective and socially constructive. Unfortunately, in recent times, because of its money making approach the media has adopted a biased approach that is benefitting politicians and the corporate leaders. Sadly, the media is known to be resorting to â€Å"Paid News† – news that is published or broadcasted to benefit a certain class of people who have huge economic power and who wield that economic power to buy â€Å"The News† in their favor. The viewer’s/readers of such â€Å"Paid News† are at such a loss with this information that lacks integrity and they can be easily misled. Actually the readers/viewers are deceived in to believing â€Å"Paid News† which is indeed misrepresentation of the truth.. Article 19 of the Constitution of India â€Å"Reach to the public† – states the right to freedom of speech and expression to media .When this freedom is misused by the media, it becomes a prime reason for media corruption, and more or less the willingness of Indian Govt. to eradicate this problem. The objective of this paper is to highlight the roots and remedies of media-corruption in India and to create awareness about the general public about the distortion of news/information by the media – to enable viewers to discern, and not be uninformed consumers of the news. Key words: necessary, money making approach, freedom.

Flannery O Connor s `` A Good Man Is Hard And Find ``...

â€Å"Counting other people’s sins does not make you a saint†¦Ã¢â‚¬  -Unknown. Some people go through life with the preconceived notion that they are better than everyone else. They base their opinion on the way people look and how they act. Some people believe that if they have more material things than another person has, that makes them superior. These narcissistic individuals are only concerned with the popularity and superiority that they have on this Earth, but they fail to realize eventually we will all be the same: a pile of skull and bones six feet under. No matter a person s race, attractiveness, social or financial class, every single human being will be the same in the end. God is the number one ruler and only He can judge us. American writer, Flannery O’Connor, makes known in her short stories â€Å"A Good Man Is Hard To Find† and â€Å"Revelation†, that the meaning of life is centered in people s Redemption by Christ. In both stories, the main characters believe that they are superior to everyone else. The main characters face violent or traumatizing situations or events that pushes them into a moment of crisis that awakens or changes their faith and in the end God grants them grace. In O’Connor’s short story A Good Man is Hard to Find, the idea that the meaning of life is centered in people s redemption by Christ is the most important message to me. The two main characters, the grandmother and the Misfit, both hoard many flaws and sins. However, they both receive grace in thisShow MoreRelatedFlannery OConner and the use of grotesque character in Good country people and a good man is hard to find1226 Words   |  5 Pageswriting (Holman 61). Almost all of O Connor s short stories usually end in horrendous, freak fatalities or, at the very least, a character s emotional devastation. People have categorized O Connor s work as Southern Gothic (Walters 30). In Many of her short stories, A Good Man Is Hard To Find for example, Flannery O Connor creates grotesque characters to illustrate the evil in people. Written in 1953, A Good Man Is Hard To Find is one of O Connor s most known pieces of work and has receivedRead MoreSummary Of A Good Man Is Hard And Find By Flannery O Connor1114 Words   |  5 Pages Man is Hard to Find Theme Essay: Religion ENG1300/ Literature Anthony Copeland December 16, 2014 In the short story, â€Å"A Good Man is Hard to Find† by Flannery O’ Connor, the major theme in this story to me is how religion plays such a larger role in some lives more than others. The grandmother, a prime example for this, shows throughout the story that having â€Å"faith† isn’t a saving grace and misplaced faith could possibly get you killed. The major confrontationRead More Comparing Characters in OConnors A Good Man is Hard to Find and Revelation841 Words   |  4 PagesComparing Characters in OConnors A Good Man is Hard to Find and Revelation The grandmother and The Misfit of Flannery OConnors A Good Man is Hard to Find are backward, opposite images of each other. However, the grandmother does have similarities with the character, Ruby Turpin in OConnors short story, Revelation. The grandmother is portrayed as being a selfish self-involved woman who wants her way, a person with little memory, just a basic old woman living with her only son. TheRead MoreA Good Man By Flannery O Connor1795 Words   |  8 PagesJada Brandon 11-26-2015 English 261 Final exam A Good Man is Hard to find in this Story Considered as one of the best short story authors in her era, Flannery O Connor wrote many short stories before her death in 1964. A faithful Catholic, religion was a primary theme in her works; she wrote mostly about southern life with religious themes recurring in her work. One of her most famous stories was the 1955 short story A Good Man Is Hard to Find. The story depicts the heartless execution of aRead MoreThe Grotesque Pursue Of Goodness2189 Words   |  9 PagesMarcos Norris ENGL 290 5 May 2016 The Grotesque Pursue of Goodness in A Good Man is Hard to Find by Flannery O’Connor â€Å"The great advantage of being a Southern writer is that we don’t have to go anywhere to look for manners; bad or good, we’ve got them in abundance. We in the South live in a society that is rich in contradiction, rich in irony, rich in contrast, and particularly rich in its speech† (Flannery O’Connor). Mary Flannery O’Connor was born in 1925 in a Catholic family in the south of the UnitedRead MoreComparative Analysis Of O Connor s Stories Essay1923 Words   |  8 PagesComparative Analysis of Irony in O’Connor’s Stories Flannery O Connor wrote as a Catholic and a Southerner, commonly writes about epiphanies and redemption. Flannery O’Connor writes about characters that aren’t quite following the right path, but continue their life believing they are. Her background as a catholic can be seen in her writing, she believes in epiphany, â€Å"epiphany that results in resurrection and rebirth† (Keil par. 4). She is a talented writer, who wrote about many different literaryRead MoreThe Lame Shall Enter First 32248 Words   |  9 Pagestheir Christian faith will have, in these times, the sharpest eye for the grotesque, for the perverse, and for the unacceptable†¦. To the hard of hearing you shout, and for the almost-blind you draw large and startling figures. —Flannery O’Connor, â€Å"The Fiction Writer and His Country†1 Long before the likes of Raymond Carver, George Saunders and Lydia Davis, Flannery O’Connor was writing biting, grotesque gothic tales, scattered with strong religious and moral overtones. Her symbolic stories contrastedRead MoreThe, A Good Man Is Hard, And Where Are You Going, Where Have You Been1676 Words   |  7 Pagesnature of evil is in all aspects, unmistakably, prominent within the two apologues A good man is hard to find and Where are you going, where have you been. In Flannery O Connor s A good man is hard to find, the audience can be apprised of the confrontation between Good vs. Evil. Comparable to Joyce Carol Oates Where are you going, where have you been, the reader is also presented with the strife of Good, alternative Evil. It is, with these two encounters, one can assimilate the significance

The Major Empires Of West Africa From 1200-1500 - 1174 Words

1) What were the major empires of West Africa from 1200-1500? What were their major industries, modes of social organization? What were their standards of living and lifespans compared to Europe? The Mali empire was established in 1235. It was the largest and the richest empire in the African Middle Ages. During this time Malian emperors relied on a small central administration, which was primarily concerned with finances and justice. (Patterns of World History pg. 400) The empire financed itself through tributes and taxes, but their main source of income relied on trade. The Mali would often trade long distance through merchants and scholars. In Timbuktu, the Mali would produce or mine for salt, creating a Salt Trade Hub in Timbuktu. Timbuktu was also important because it was one of the most important scholarly cities in the world that held massive libraries. Mansa Musa the Malian ruler who annexed Timbuktu. He wanted to share his wealth with his people, so he founded a college, a library, and part of Sankore Mosque. Mansa Musa lived a very lavish and luxurious life and tried to share that life with his people. This actually put in the gold markets in relapse because he put too much gold into circulation, but it influenced Malians to become scholars and at a higher standard of living. The Great Zimbabwe was a kingdom that was established in 1250. This kingdom was a culmination of various southern African kingdoms. While most settlements within the kingdom were dedicated toShow MoreRelatedThe Earth and Its People: Chapter 13 Outline1629 Words   |  7 PagesTropical Africa and Asia (1200 – 1500) Ibn Battuta 1. Young Muslim scholar 2. Completed the pilgrimage to mecca 3. logged 75,000 miles of travel in 29 years 4. Powerful states and commercial systems were only made possible by local farmers, fishermen and pastoralists Tropical Lands and Peoples The Tropical Environment 1. Africa lies almost entirely within the tropics, as do southern Arabia, most of India and all of the Southeast Asian mainland and islands 2. In the lands aroundRead MoreAp World History Units 1-3 Study Guide Essay4374 Words   |  18 Pagesspread of the Bantu-speaking peoples over southern Africa can be best explained by their * Knowledge of agriculture 5. Characteristics of complex civilizations * Specialization of labor * Trade and cultural diffusion * Written languages * Complex political order and power 6. Evidence proves that the Mesopotamians * Traded extensively with peoples as far away as Anatolia, Egypt, India 7. Major effect of Neolithic Revolution * The establishmentRead MoreThe Philosophers And Theologians Of The Middle Ages1837 Words   |  8 PagesEuropean geography. Possessed with the knowledge of other countries and empires, but unable to actually travel there, these thinkers were tormented by their lack of information. Relying on stories told by merchants and sailors, local tales and legends, as well as varied and inaccurate ancient histories, they tried to cobble together maps, travelogues, and books detailing as much of the world as they knew, or believed existed. From these sometimes accurate and often fanciful accounts of mythical beastsRead MoreEssay on Change Analysis Chart Postclassical (600-1450 C.E.)8730 Words   |  35 Pagesgold-salt trade? Dont you mean the Pax  Mongolica? | * Trade was very international. * Silk roads linked Eurasia, and goods traded hands many times along the roads. | * There was still international trade. * The silk roads were still in use as major trade routes. | * New trade routes were made, such as the Indian Ocean routes, and old routes were expanded upon, like the silk roads. * Trade routes became more safe under the pax romana. | * Trade was still very global. * The Silk roadsRead MoreEarly Civilizations and the Dawn of the Medieval Age Essay3703 Words   |  15 Pagesonly covers a part of this period. The reason for this is that history is essentially based on written documents However the art of writing become known to man, only after 3000 B. C. 1.1 History : Meaning and Importance The word history is derived from the Greek noun historia meaning inquiry or research. Aristotle regarded it as a systematic account of a set of natural phenomena, whether or not chronological ordering was a factor in the account. The term history has now come to be appliedRead MoreThe Birth of Civilization18947 Words   |  76 Pages1 The Birth of Civilization Mohenjo-Daro Figure. Scholars believe this limestone statue from about 2500 B.C.E. depicts a king or a priest from Mohenjo-Daro in the Indus valley in present-day Pakistan. Does this figure seem to emphasize the features of a particular person or the attributes of a particular role? Hear the Audio for Chapter 1 at www.myhistorylab.com CRAIMC01_xxxii-031hr2.qxp 2/17/11 3:22 PM Page xxxii EARLY HUMANS AND THEIR CULTURE page 1 WHY IS â€Å"culture† considered a definingRead MoreAncient History Practice Test Essay2381 Words   |  10 Pagespart of the Egyptian empire. His son Aziru made contact with the Hittite king Suppiluliuma I, and eventually defected to the Hittites. The Amurru kingdom was destroyed by the Sea Peoples around 1200 B.C. 2. Napata - Napata was a city-state of ancient Nubia on the west bank of the Nile River, at the site of modern Karima, Northern Sudan. It was founded by Thutmose III in the 15th century BC after his conquest of Nubia. 3. Gaza (ancient) - The name Gaza is first known from military records ofRead MoreJudaism And The Jewish Prayer3766 Words   |  16 PagesDeuteronomy. †¢ Abraham- considered the first monotheist and father of Christianity, Judaism, and Islam David- A king of Israel who helped Israel achieve its greatest glory. After Saul and before Solomon. Saul- the first king of Israel who ruled from 1022-1000 B.C.E. Solomon- son of David who ruled after his father and maintained the position of Israel Philo of Alexandria- Hellenistic Jewish philosopher Martin Buber- Austrian Jewish philosopher and author of Thou and I Maimonides (Rabbi Moses benRead MoreArgumentative Essay on Telivision Is the Leading Cause of Violence in Todays Society9353 Words   |  38 PagesBrahminabad was reduced to ballast.[13] A few months later, further north, Johns brother William Bruntons section of the line ran near another ruined city, bricks from which had already been used by villagers in the nearby village of Harappa at the same site. These bricks now provided ballast along 93 miles (150 km) of the railroad track running from Karachi to Lahore.[13] Excavated ruins of Mohenjo-daro, with the Great Bath in the front. In 1872–75 Alexander Cunningham published the first Harappan sealRead MoreChristianity as a Unifying Influence in the History of Europe6059 Words   |  25 Pagesand architecture and its Papacy it had united the peoples of Europe. By the thirteenth century all of Europe was Christian. Its ideas penetrated every aspect of life and every political and economic arrangement. Its churches could be seen in the major cities as well as the mountainside villages of rural Europe. Its bishops were part of the politics of countries at the highest level and for many centuries its clergy played the role of civil servants to the European rulers. It helped form the foundations

Benefits And Benefits Of Employee Benefits - 1195 Words

Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’. Case Study 2 When it comes to becoming a Benefits Coordinator there aren t any formal education or certification qualifications. Many Benefits Coordinators learn their craft through on the job learning/training. Some employers require†¦show more content†¦Health insurance is one of the major benefits that encourages employees to stay with an organization even in difficult situations. With health insurance companies attract and retain qualified employees. According to Optima Health (â€Å"Starting in 2015, employers with 50 or more full-time equivalent employees are required to offer affordable, minimum-value group health insurance. If they don’t, they may be assessed government penalties.† n.d.). There are other helpful health insurance benefits such as deducting 100 percent of their employees health insurance cost as a business expense. If the organization is incorporated the owner’s insurance cost is also deductible. But if it’s a small business with less than 25 employees, they may be able to receive a tax credit if they’re with a small group insurance. If there’s 50 or more employees the business is eligible for a larger group health insurance which offers lower rates. Also with employee health insurance employees have a bigger chance of being able to pay medical expenses. In addition to valuable benefit retirement saving plans are essential part of your future financial security. All employees are encouraged to save for retirement. Tax advantages are also accessible to business owners that offer retirement plans. All pension plans are either qualified plans or non-qualified plans. (The Pros and Cons of Offering Employees Retirement Benefits. (n.d.). â€Å"Qualified plans meet the requirements of the

Financial Case Analysis Management

Question: Describe Capital structure and Investment Decision Answer: Capital structure and investment decision making are the two important aspects of financial management. The given scenario illustrates the current position of the company and discusses the perception of the president of the firm regarding the investment opportunity (Berk and DeMarzo, 2007). Various aspects are considered in order to decision and arguments presented by the President. The company has not been performing well in the recent years. Percentage of debt is significantly high in the capital structure of the firm. In this situation, the company has been considering a new project. It has been estimated that the cost of the project will be $ 400 and the value of the project is $ 500. Hence, the net present value of the project is $ 100 and it is profitable for the company. It has been found that the total earnings of the company will enhance by $ 60 each year. Now there are two options for financing the project: debt and equity. If debt is chosen, the percentage of debt will increase and it will lead to a drop in the bond rating of the firm. Therefore, it will not be a good option (Artikis, 2007). In case of equity financing, the company will require fund of $ 400 and price of each share is $ 2. Hence, the company need around 200 shares. Earlier, the company had 1000 shares and now the total number of shares will be 1200. It has been estimated that the new earning per share will be $ 0.55 and earlier it was $ 0.60. In this situation, the president of the company has decided to postpone the project. He has argued that it will cost too high for the business to opt for debt in order to finance the new project. It is true as it will lead to high cost of capital as well as decline the bond rating (Patel and D'Souza, 2007). Additionally, the president has rightly presented the second major reason for delaying the new project. It has been found that the earning of share will decline as the market value of the equity will be less than the book value. Hence, the investors will not be interested (Berk and DeMarzo, 2007). Additionally, assessing the current market conditions it has been observed that the equity market is depressed. It is a major cause behind the lower market value of the equity. It will be a rational decision to wait for the market to improve. The president of the firm has rightly argued that the project should be delayed until the market index improves. When the equity market will be improved, the market value of the equity will be greater than the book value. Hence, the earnings per share will not decline and it will contribute in attracting the investors (Ross, Westerfield and Jaffe, 2005). Hence, it can be stated that the president of the firm has given correct logics for delaying the profitable project. References Artikis, G. (2007).Capital structure. [Bradford, England]: Emerald. Berk, J. and DeMarzo, P. (2007).Corporate finance. Boston: Pearson Addison Wesley. Patel, P. and D'Souza, R. (2007).Uncovering knowledge structures of venture capital investment decision making. [Washington, D.C.]: SBA Office of Advocacy. Ross, S., Westerfield, R. and Jaffe, J. (2005).Corporate finance. Boston: McGraw-Hill/Irwin.