A Discussion On Ethics And Law Essay - 1635 Words

Enron, a Discussion on Ethics and Law Leadership’s Role in Ethical Dilemma As documented in a promotional video for Enron, Kenneth Lay states: â€Å"Enron is a company that deals with everyone with absolute integrity. We play by all the rules. . . We want people to leave a transaction with Enron thinking they have been dealt with in the highest possible way, as far as integrity and truthfulness and really doing our business right.† (Enron Vision and Values, 1998, 3:32) Whereas this message was intended to affirm corporate mindset, Lay’s business leadership and conflict resolution promoted the contrary. In 1985, Kenneth Lay founded Enron Corporation to satisfy his personal ambition and insight in the deregulation of energy markets. As many entrepreneurs do, Lay placed a focus on the success and future of his business on the financial performance and growth rate. Although short term success can be gained by focusing solely on the bottom line, long term success can only occur by first meeting the requirements of the law and maintaining in tegrity through ethical decision making. As you will see, Lay’s leadership focus on the priority of enhancing the bottom line actually trumped his ability to promote ethical and legal decision making for his organization. This conflict was the root of the problem that promoted individuals in the organization to make unethical and unlawful decisions on a business level as well as personal level. Kenneth Lay’s Leadership Failure The loss ofShow MoreRelatedStandards For Financial Decision Making926 Words   |  4 Pagesdecision-making, the relationships between fiduciary duties and financial decision-making. The researchers analyze NGA standards, court standards, code of ethics for guardians, accreditation standards, and state standards through the study of Brenda K. Uekert and Thomas Dibble (2012), Boxx Hammond (2010), and Frolik Whitton (2011). The broad discussions of decision-making demonstrate the guardian – a person, who has fiduciary duties to establish standards for making financial decisions (pp. 1278-1279)Read MoreHistory of Mass Media1150 Words   |  5 Pagescoherent discussion. SEMESTER JANUARY-APRIL 2012 SCHEDULE |WEEK |DATE |LECTURE |TUTORIAL |ASSIGNMENTS |DUE DATES | |1 |Jan 9 |Introduction to Mass Media Industries |Discussion on study case |NIL | | |2 | 16 |Books |Group Discussion Read MoreEthics And Ethics Of Ethics775 Words   |  4 Pagesmillion to settle a shareholder lawsuit. We can refer from the two previous examples that ethics education is crucial. The main reason for ethics education is that ethics courses and training would help students, who are going to become future managers and business decision makers, to resolve such ethical dilemmas correctly. As we know that most dilemmas often have multiple decision criteria. Business ethics classes would help students to realize which decision criteria lead to a preference for aRead MoreQuestions On A Ethical Dilemma1482 Words   |  6 Pagesrule, the action is not publicly acceptable, or would harm others - then the action is a ethical dilemma. The first criteria examines the illegality of action. The second criteria asks if the action is a violate of one’s professional or corporate ethic. The third criteria examines the if the dilemma’s relation to individuals’ consciences and personal values. The fourth criteria posits the golden rule as an ethical barometer. â€Å"Would yo u like it [this action] down to you and your† (Matt. 7:12Read MoreUniversalist Theory Of Universalism1237 Words   |  5 PagesUniversalist theories (moral universalism) are meta-ethical positions that claim that there is a universal ethic that applies to all people regardless of their nationality, religion, sex, race, culture, sexuality, and other distinguishing features (Greenwood and Harris, 2011). Universal ethics refer to a moral system that applies to the entire humanity, transcending personal whims, and culture in the process. The justification for this rises from human nature, which is a shared vulnerability of sufferingRead MoreClass Discussion Board Forum And Group Task Presentations882 Words   |  4 Pages1. I have shown a sense of social responsibility by participating in our class discussion board forum and group task presentations. The discussion board was designed to collaborate with peers regarding court cases and topics of law. Through constructive feedba ck, I helped my peers learn additional information regarding the law topics provided in the discussion forum. It was important for me to provide conversation within the online learning environment that was constructive and informative. In additionRead MoreExam for Chapter 1 Essay1217 Words   |  5 Pagesprofessionals were discussing the relationship between law and business. Adam argues that law primarily benefits the owners of businesses at the expense of workers and customers, while Beth takes the opposite position - that law primarily benefits the individual employees, customers and others, at the expense of the owners of businesses. Charlie posits that all parties are better off because of the presence of law, while David asserts that law is not a significant factor in the conduct of businessRead MoreWeekly Schedule1363 Words   |  6 Pages15 16 and Friday, April 03. MBA CLASS OF 2016 SEMESTER II (S II) LIST OF COURSES BEING OFFERED Code Units Course Title Instructor BII FMG IE MACS ME OM 0.5 1 0.5 1 1 1 Business Integration and Innovation Financial Management Islamic Ethics Managerial Accounting and Control Systems Managerial Economics Operations Management Jamshed H Khan Syed Mubashir Ali Kamran Rashid Ayesha Bhatti / M Junaid Ashraf Tanveer Shehzad Hassan Rauf / Syed Zahoor Hassan SULEMAN DAWOOD SCHOOL OF BUSINESSRead MoreThe Code Of Ethics And Systematic Ethics985 Words   |  4 PagesAggressiveness in Financial Reporting. The key of the abstract is to demonstrate the differences in financial reporting between the International Financial Reporting Standards (IFRS) and U.S. Standards (p.477). More in depth the research focuses on the code of ethics and moral duties of company top management. Introduction. The authors study the financial scandals and the recent financial crisis to demonstrate the gap between market processes and accounting standards. The IFRS and U.S. GAAP differ in contraryRead MoreWhat A Cio Should Do993 Words   |  4 PagesFrom the very first discussion where we were tasked to consider what a CIO should do, I was keenly aware of how our own perspectives were such a large part of how we phrased our responses. Regardless of the topic, thinking from the consumer perspective is different from the business or information technology perspective. In this class, it has become apparent that information technology has its own perspective and set of ethics. In this class, we tried to apply traditional ethics to the uses of information

The Effects Of Water Pollution On African People - 1744 Words

An organization describes the effects of water pollution on the african people. Using a blog titled as â€Å"Ghana Water Project† to inform those who are coping with water pollution how serious the issue is, providing solutions to those who want to grasp the issue and take it in their own hands, and supply contact information to our research and the Safe Water Network. The Safe Water Network will receive donation that are given through our blog. The Safe Water Network is an organization that began in 2009 that installed â€Å"locally owned Safe Water Stations that would provide reliable, affordable, safe water to communities in need† (2009, para. 1). As of the water crisis currently in africa has improved because of solutions like the Safe Water Network project and the Rehabilitation of Korle Lagoon and its river. A reminder that water pollution is causing death to wildlife, the environment, and even humanity. As the Safe Water Network’s motto states â€Å"Toge ther we can do more† (2009, para 1). Water pollution is a serious global issue that is massively affecting Africa. The lack for proper sanitation due to poverty and the inadequacy of knowledge that the african people uphold sustain an environment full of injurious pollution. As the people continue to bathe and drink in such water, lives are put at risk. As the â€Å"Ghana Water Project† we assembled an organization to provide education globally about the effects of water pollution and assist in funding the Safe Water NetworkShow MoreRelatedWhat is Hydraulic Fracking?1027 Words   |  4 PagesSouth Africa, Karoo. The Karoo is at risk of contamination of ground water and in possible danger of losing its indigenous ecosystem. The effects of fracking are not only detrimental to the environment but also to the communities around the Karoo. Due to Fracking the air, water and agricultural land are polluted and contaminated and all these factors have a direct impact on the people around the Karoo area and other South Af rican provinces. What is Hydraulic Fracking? Hydraulic Fracking â€Å"Hydro-fracking†Read MoreFarming Methods And Food Crisis Essay1623 Words   |  7 Pagesthat suits their climate, and a method that can meet their population’s food demands. Farming methods are needed in order to meet the world’s future food demands, farming methods negatively affects the environment for instance, through pollution; water and air pollution (Guerci, et al 2013). In order to stop these negative influences farming methods bring on the environment, farmers should innovate new methods of farming that are environmental friendly, for instance; community garden, village farmingRead MoreThe Gold Mining Industry in South Africa Essay1011 Words   |  5 Pagesin South Africa has a large impact on the environment, the economy and social structure in South Africa. The environmental impact of gold mining on the environment includes water, air and noise pollution. The mining industry in South Africa is one of the largest in the world. It provides jobs for hundreds of thousands of people in the mining industry alone. The mining industry also indirectly provides jobs for about 400 000 with the goods and services that the mines require to run succ essfully. SomeRead MoreThe Environmental Issues Of South Africa1726 Words   |  7 PagesFor many years, Africa as a continent has struggled to gain the momentum required to keep up and compete with its neighboring continents. However, things have changed in the last few decades for many African countries in terms of positively making great strides towards achieving better standards of living. Unfortunately, these improvements require incredible amounts of input in order to yield higher output and evidently, much of the input required can be extracted from forests. However, the environmentalRead MoreEnvironmental Racism : Environmental Discrimination1677 Words   |  7 PagesBalogun Grace Dr. McCray Sociology 210 August 28, 2017 Environmental Racism Environmental racism refers to the inappropriate exposure of low-income or minority individuals to heavy chemicals, pollution, toxic wastes, pesticides, and, most importantly, clean air. According to Bullard, environmental racism refers to racial discrimination in environmental policy making, decision making, and/or any practice which results in equitable distribution of environmental burdens borne by society and based onRead MorePollution Context1192 Words   |  5 Pages | |Subject: Life Skills Grade: 3 | |Environmental theme: Pollution | |Learning outcomes: Personal and social well-being. The learner will |Assessment standards: Baseline, and formative Ask the learner to Read MoreEssay on Low Health Expectancy1034 Words   |  5 Pagesperson is expected to live in full health. This essay will argue that the main factors which contributes to low health expectancy in developing countries are malnutrition and environmental pollution and the possible solutions to this problem is eradicating poverty, improving health services and education on pollution and other substitutions to cooking with traditional stoves. The first main factor that contributes to low health expectancy in developing countries is malnutrition. According to NHSRead MoreGuyanas Land Use Issues1229 Words   |  5 Pagespolitical, economic, industrial and the environmental effects on Guyana’s land use, and how they compare it to British Columbia. This inquiry establishes Guyana s land use issues, which include environmental and settlement problems. We chose Guyana’s land use issues because they face lots of problems, and we think that we can pose some resolutions. Some environmental problems they face are climate change, pollution in the air and water, and mining pollution, and a settlement issue they face is immigrationRead MoreSouth Africa: The Vaal Triangle1210 Words   |  5 Pagesgroups and ethnic groups. Sharpeville previously known as Sharpe Native Township, is one of the areas whereby people were separated into different racial groups. Originally the people of Sharpeville were from Top Location, the reason for the relocation was because: â€Å"it was felt black people were too close to Vereeniging for comfort.† [Vaal Triangle Info. 2005]. The relocating of the people took 20 years to happen since the building of houses only began in 1942. [Vaal Triangle Info. 2005]. There areRead MoreWater Supply And Sanitation Within South Africa1745 Words   |  7 Pagesand issues related to water supply and sanitation within South Africa, some are more prominent than others. One of these is the continuously increasing amounts of people moving into the city from smaller areas and villages; these larger, more dense populations of people have also increased the water demand. To keep up and hopefully adapt to these largely increasing needs for clean and readily available water in the cities, many plans to prevent a more widespread lack of water supply and sanitation

Vietnam And Its Effects On The Country - 1015 Words

Introduction Vietnam is world’s 13th most populous country, majorly consisting of Viet and Kinh ethnic groups. Vietnam has Vietnamese as official language and some other languages exist in minority groups. Vietnam adopted â€Å"seclusion† policy which made the country isolated and faced a deep crisis which led them on brink of bankruptcy. After 1995, started globalizing and established relation with United States and Vietnam also became member of WTO in 2006. There are many aspects that helped Vietnam to grow faster. PESTLE (Political, Economic, Social, Technical, Legal and Environmental) analysis helps in analyzing overall business opportunities and ease of doing business in country. Vietnam PESTLE analysis is as follows:- Political Vietnam is politically very stable and with one party control i.e. Communist Party, the country continues to achieve higher political stability. â€Å"Political† aspect is very important for Vietnam as the country continues to have many State Owned Enterprises (SOE) that play major roles in economy of the country. Therefore, it is important for Vietnam to have a stable government that is able to provide good governance and control over SOEs and other business activities. There are some good decisions taken by current government such as freedom of press. However, the country faces some disputes over certain matters such as Vietnam – China and U.S. – Vietnam tensions are major concerns for government. These tensions make it difficult for government toShow MoreRelatedCold War1152 Words   |  5 Pagesthe 1990’s, the Vietnamese had a lot of conflict. America, the Soviet Union, and Vietnam were the three main countries involved in this conflict. This conflict was a built from a cold war perspective. This war created many effects on the world; some were good others were bad. It was mainly between the 2 major powers, the United States, and the Soviet Union. The conflict started during the Cold War, where the two countries were being aggravated by each others ever expanding powers. The United StatesRead MoreThe American Role During The Vietnam War Still Sparks Much Debate Today1390 Words   |  6 PagesAmerican role in the Vietnam War still sparks much debate today. There is a sharp focus on the Americans role in the Vietnam War because of the tragic end for the South Vietnamese. The United States faced much criticism world wide through literature during the war that continued after the war ended in 1975. The American governments reasoning for getting involved was to prevent the spread of communism in South Vietnam and to essentially prevent the domino effect. South Vietnam had no hope of winningRead MoreVietnam And The Vietnam War1711 Wor ds   |  7 Pages â€Æ' The Vietnam War was one of the bloodiest wars in the history of Vietnam. Vietnam use to be a peaceful country until the idea of communism started spreading across Vietnam. Many wanted to stay democratic but saw what happened to the Germans and started to lean towards communism. Many also wanted to stay democratic and still had it hopes high that it will soon get their lives and economy back on track. It later exploded into a huge argument and then leads to a civil war spurring between NorthRead MoreProblems With The Vietnamese War Veterans1609 Words   |  7 Pagesthey were treated and viewed by their fellow countrymen when they returned back home. How did it impact Countries/governments and who protested against the Vietnam War. All these question will be answered on the main paragraphs bellow. What was the problem for the Vietnamese war veterans? Problem that the Vietnamese war veterans faced was the psychological effects which was very common for Vietnam veterans to have. The main cause of this is because it was different compared to other wars in the pastRead MoreThe Vietnam War : A Close Family Friend Of Mine, By The Name Of Federico1527 Words   |  7 PagesRecollection of Vietnam War A close family friend of mine, by the name of Federico â€Å"Fred† Garcia recounts his experience and memories of the Vietnam War era. Fred was born on September 11th, 1949 in Mission, Texas. He attended all four years of high school and two years of college before making his decision to join the United States Air Force, at the age of twenty one. He began his service to the Air Force on June 8th, 1970 until January 1993, a total of twenty three years, although the Vietnam War lastedRead MoreEffects Of The Vietnam War On America1559 Words   |  7 Pages3H, Pd. 8 20 January 2015 Effects of the Vietnam War The Vietnam War is one of the most debatable and controversial wars in U.S. History. To this day people are questioning why we ever entered a war that was over 8,000 miles away. Why would we put our soldiers through such harsh fighting conditions and why would we spend so much money on a war that was not ours? Some people say that U.S. involvement was necessary to help end Communism and important to keep South Vietnam from coming under North VietnameseRead MoreThe Vietnam War On American Society932 Words   |  4 PagesFrench, accentuating the growing success and power that Vietnam held. America was calm at first as they held the belief that Vietnam would serve as a barrier to communism. Unfortunately, when communism kept spreading, America panicked. American troops were sent into Vietnam and the citizens of America were lied to about the reason for the presence of the troops in Vietnam. The years 1964 to 1975 were characterized by the negative effects of the Vietnam war on America n society and how they heightened socialRead MoreThe United States Involvement During The Vietnam War1729 Words   |  7 Pagesinvolvement in Vietnam was the longest war the U.S. has ever took part in and was considered an extended military engagement due to the fact congress never formally declared war with Vietnam (FCNL). The Vietnam War began on November 1, 1955 and lasted for 20 years until April 30, 1975. The war was fought between the communist Northern Vietnamese and the anti-communist Southern Vietnamese after the country was temporarily divided by the Geneva Accords. Americas entering of the Vietnam War proved toRead MoreThe Vietnam War1737 Words   |  7 PagesThe purpose of the Vietnam War, was to end the awful spread of communism. As Ho Chi Minh (North Vietnam’s communist president) fought to which spread North Vietnam’s political uses to Southern Vietnam. With this, the American Military Advisors sought to believe that a fall of Southern Vietnam to commu nist hands, would then lead to a total takeover of neighboring nations to fall under communism. The effect of the neighboring nations falling, was known as the â€Å"Domino Effect†. It all began when TheRead MoreThe Vietnam War Was The War Essay1611 Words   |  7 PagesDuring the1950s North Vietnam was controlled by the Viet Cong (a National Liberation Front.) The Viet Cong were bullying South Vietnam, trying to make them a communist. Most of society will not stand up for the weaker person in a bully situation. The United States is not most of society; they believe you mess with someone your own size. Many people have different views on the Vietnam War: was the war necessary, was the war worth all the sacrifices of American troops lives, what was the United States

Main Economic Characteristics Of A Free Market Economy

Though there are three different types of economies that exist – free market economy, planned (also known as command) economy, and mixed economy, this essay will focus mainly on free market and planned economies. It will examine the main economic characteristics of each of the two economies and compare how they differ from each other, while in relation to the UK public sector. A free market economy is based on supply and demand and all major economic decisions are made by individual economic agents such as households and firms and not by governments, which in turn maximises freedom and behaviour, though there will always be government involvement to a certain extent due to things such as price control (Investopedia, 2015). A free market economy is said to be a ‘pure’ capitalist system that is underpinned by private ownership where workers are able to make the most out of what they earn and are free to spend it on whatever they please (Sloman and Garratt, 2013). Price mechanism is also a characteristic of a free market economy. Price mechanism allocated resources through supply and demand – it relates to the effect the market has when it changes occur to prices and results in supply being equal to demand and demand being equal to supply (Sloman and Garratt, 2013). When it comes to the UK public sector, the majority of goods and services are free market though the country as a whole is not simply a free market economy as there are some aspects which could be consideredShow MoreRelatedMarket vs. Command Economy Essay1069 Words   |  5 PagesMarket vs. Command Economy What is the main purpose of the economic system? The main purpose of the economic system is method used to produce and distribute goods and service. The three economic questions are: â€Å"What goods should be produced?† â€Å"How should these goods and services be produced† And â€Å"Who consumes these goods and services?† The characteristic of a market economics is that self-interest is the motivating force in the free market, self regulating market. The interaction of buyers andRead MoreWhat Are the Main Characteristics of ‘Emerging Markets’? Essay1211 Words   |  5 PagesWhat are the main characteristics of ‘emerging markets’? Introduction During the changing of world economy, it is increasingly common to hear the term ‘emerging markets’ and from news and report. In the mid-1980s, the term ‘emerging markets’ was created by the World Bank, and has significant influence on the global business world nowadays (Gwynne, Klak and Shaw 2003). To raise investor’s attention to those developing countries, there are numerous characteristics springing up which are given byRead MoreExplain how resources are allocated in reference to the different economic systems?1686 Words   |  7 PagesAn economic system is the result of individuals (consumers and producers), groups (firms, trade unions, political parties, families etc) and the government coming together and interacting in a legal and social society. The function of an economic system is to resolve the basic economic problem - scarcity which means that the resources are limited but wants are infinite. This distribution has three dimensions: * What is to be produced * How is it to be produced * For whom is it to be produced.Read MoreThe Main Characteristics Of Emerging Markets1417 Words   |  6 PagesThe main characteristics of ‘emerging markets’ Introduction In recent years,there has been a growing concern about the emerging markets,and it is kind of new economic markets in developing countries which likes mature markets but does not meet a criterion of it,and emerging markets is a relevant concept when it comes to the developed countries.While a variety of definitions of the term of emerging markets have been suggested,this essay will use the definition suggested by Arnold and Quelch(1998)whoRead MorePoland s Economic Reform Plan Of 19891711 Words   |  7 Pagesthe same time, Eastern Europeans finally discovered the opportunity to make a transition from centralized socialism to democratic and decentralized form of market economy that was largely modeled on the Western democracies. The following chapter examines the extent to which Western theoretical and institutional trends influenced Poland’s economic reform plan of 1989. At the same time, it seeks to account for Poland’s own local tradition of neoliberal thought. In so doing, it aims to dispel the oversimplifiedRead MoreAdvantages And Disadvantages Of Traditional Economy1406 Words   |  6 PagesThe economic system, traditional economy, which is the first and the oldest system appears from the ancient age of human beings. The main production is hunting, gathering, fishing, and agriculture. Its characteristics consist of making economic decisions by the guides from experiences of the elders, producing goods for what people need, and the most unique thing is that this system has no currency (Kimberly Amadeo, 2017). So how do merchandises or customers buy something such as bread or meat? TheRead MoreThe Four Main Economic Systems and Their Application in South Africa1426 Words   |  6 PagesIntroduction An economic system is a manner of approach which is used at solving the three main questions which are: What goods and services should be produced and the amount? How much of the scarce resource should be utilised and how will the goods and services will produced? For whom should the diverse goods and services be produced for and where will the production take place? Economic systems don’t always work accordingly but often so vast and complicated but on the contrast its working out justRead MoreThe Problem Of Extreme Poverty1297 Words   |  6 PagesIn the last 10 years, the end of extreme poverty has been a top priority in the inequality equation. A report by the World Economic Forum s Global Risk states that inequality in 2013 is a big global risk. The world should immediately put in place objectives that abolish extreme inequality around the globe. The net income of 2012 from the 100 richest billionaires was $240 billion, which could end extreme poverty 4 times over. Havin g so much money and power in such few hands, causes depressed demandRead MoreThe Theory Of Economics As A Science1182 Words   |  5 PagesThe economy born since the man realizes that he cannot get everything he wants. The economists analyse the economic problems as it happens, without adding their feelings, thoughts or them owns assumptions. Economics is based essentially in scarcity, if there is not shortage there would be no need of Economics as a science. As there are limited resources choices have to be made in order to allocate resources and factor of productions. According to Anderton (2008:30) when this allocation happens, resultsRead MoreHket Case-Strategy1489 Words   |  6 Pagesfactors that have impacted the profitability of the newspaper industry in general and, specifically in Hong Kong, over the last 20 years: Main factors:- Economy and government policies-China adopted Open Door Policy for businesses. This promoted foreign trade and economic investment, and led to evolvement of many business start-ups. In 1980s, the economy was booming, Hong Kong became magnet for international trade, with its high GDP growth rate, averaging to 5.2%. With improved income and GDP

Accounting Theories and its Types

Question: Discuss about the Accounting Theories and its Types. Answer: Introduction This study deals with discussing on accounting theories and its types. In this particular assignment, proper emphasis has been given on understanding the difference between positive accounting theory and normative accounting assumption (Watts and Zimmerman 2016). Accounting is the language of economics that gives managers as well as investors a consistent system so that they can present the assets of their corporation in a way where it should be transparent, informative and consistent at the same time. Positive and normative accounting is the theories that actually help in creating system for investors as well as managers so that they can use these theories in recent times (Balakrishnan, Watts and Zuo 2016). Accounting systems are the consequence of carefully constructed applications that consist of theories that will help in finding the best from other economically accurate method for representing the performance of a company. Economics is both science and art. For instance, an inve stor views at the financial data for determining the most financially stable as well as attractive stocks that they desire to purchase. Addition to that, the money invested in the company comes as a statement regarding what products or services and investor find within the stipulated time. Therefore, the dichotomy in economies explains the ideals of both positive as well as normative accounting (Scott 2016). Positive Accounting Theory As rightly put forward by Jones (2015), Positive accounting theory examines the real life occurrences as well as finds ways for understanding the concept and then predicts how companies address the accounting treatment for those types of transactions. Addition to that, the hypothesis looks at the genuine real world comprising of dealings and proceedings that help in examining how companies accounts for those proceedings and seek to comprehend the financial consequences of those secretarial decisions (Balakrishnan, Watts and Zuo 2016). This theory tries to predict by using the knowledge of how companies will companies will account for dealings as well as actions in the near future. Positive accounting presumption as well as accounting practices are objective and based on facts. This type of accounting focus mainly on analyzing the economic statistics as well as data as it derive at conclusions based on the given figures (Raj and Roy 2016). Three Hypothesis of Positive Accounting Theory There are three theory of positive accounting hypothesis where prediction is organized in definite form. The three hypotheses are as under with proper justification: Bonus Plan Hypothesis- Managers of business firms with bonus plans selects secretarial events that can shift reported earnings from the prospect periods to the present time. It has been done by the managers so that they can increase their bonuses for the recent year (Hendriksen 2016). Debt Covenant Hypothesis- The closer a firm is to violate the accounting-based debt covenants; manager of the firm selects accounting procedures by shifting the reported income from the prospect periods to the present period. It means increase the present earnings where the corporation will violate the debt covenants as well as management need to minimize the constraints for smooth functioning of business organization (Balakrishnan, Watts and Zuo 2016). Political cost hypothesis- It depends upon the superior the political costs faced by the form where the managers selects secretarial procedures that defer reported earnings from present to prospect periods (Gaffikin 2016). How to achieve Positive Accounting Theory Positive accounting theory can be achieved by varying the accounting policies (Balakrishnan, Watts and Zuo 2016) Positive accounting theory can be achieved by supervision the discretionary accruals Positive accounting theory can be achieved by adopting new secretarial standards (Christensen, Nikolaev and Wittenberg?Moerman 2016) Positive accounting theory can be achieved by altering the real variables such as advertising, repairs preservation and research development (Dutta and Patatoukas 2016) Positive accounting theory can be achieved by capitalizing operating expenses in the most appropriate way. Normative Accounting Theory According to Deegan (2013), normative theory of accounting is a deductive process after comparing it with positive accounting theory. Addition to that, normative starts with the theory as well as deuces to exact policies when constructive start with given policies and simplify to the higher-level philosophy. Addition to that, normative accounting practices is one of the form of value judgment where it introduces subjective morality into accounting. Normative theory executes the accounting process where it derives the value based income as well as undertaking the different approaches in the most appropriate way (Balakrishnan, Watts and Zuo 2016). Difference between Positive accounting theory and Normative accounting theory Positive Accounting Theory Normative Accounting Theory Positive theories are descriptive, predictive or explanatory (Balakrishnan, Watts and Zuo 2016) Normative theories are prescriptive Positive accounting theory is an example from the positive theory of accounting that explains and predicts the accounting practice (Christensen and Demski 2012) Normative accounting theory shows true income of a single measurement used for assets and an unique and correct profit figure (Christensen, Nikolaev and Wittenberg?Moerman 2016) Grounded in economic theory Normative theory help in decision-making process when the basic purpose of accounting is to aid the decision-making process of specified users that is presented through accounting reports in way to provide useful accounting data (Christensen, Nikolaev and Wittenberg?Moerman 2016) Advantages Focus on maintaining relationships between individuals that are involved in rendering resources for an organization and are known as agency relationship (Balakrishnan, Watts and Zuo 2016). This relationship will be between : Owners and managers Managers and debt providers Advantages Normative accounting theory is subjective as well as aims at describing what the financial prospect should be for a corporation or an shareholder (Bonin 2013) When to use: Positive accounting theory can be best used for explaining the past financial events and the causes of a business or individual current financial standing (Christensen, Nikolaev and Wittenberg?Moerman 2016) This theory will help in determining the reason as to why a corporation is operating at a net loss and there is a need for implementing of positive accounting practices after comparing actual revenue to actual expenses for a given year This type of theory can be typically used for constructing financial documents like balance sheet as well as cash flow statements. When to use: Normative accounting theory can be best used at the time for setting the future economic policy based on the given theory (Balakrishnan, Watts and Zuo 2016). Mission statement or market strategies of a given company can be included in the business plans that can be further viewed in the normative statements. It is thereby noted that the normative statements reflects the business ideals where any company wants to accomplish within the specified time (Beattie 2014) Working together Proper financial planning for any trade organization or in that case individual requires both positive and normative accounting theory (Christensen, Nikolaev and Wittenberg?Moerman 2016). The factual-based practices of positive accounting theory mainly explains underpinning for companies that engages in normative accounting as well as more unrealistic vision on how corporation operates and still earns profits from their operations. Addition to that, on a large scale, economists are of the opinion that financial policies can be used through normative accounting statements but in actual the normative accounting statements are based on the financial realities that is generated from positive accounting policies (Balakrishnan, Watts and Zuo 2016). Example: If corporate growth allows a company for increasing the shareholder dividends over the previous dividend payments, then the theory on positive accounting will conclude that corporate growth actually causes a rise in the stakeholder dividends. Therefore, most of the bookkeeping as well as data collection align with accounting and positive economic theory (Avel 2014). Example: If a company increases its dividend payment, then they make use of funds for improving the corporate sustainability measures. This is where normative accounting theory is used as it indicates how much money should be invested in those measures for sustaining the corporate growth (Balakrishnan, Watts and Zuo 2016). Therefore, Normative accounting hypothesis deals with the prospect events rather than past information and that is difference from the positive accounting practices as the theory takes into account the past data (Christensen, Nikolaev and Wittenberg?Moerman 2016). Conclusion At the end of the study, it is concluded that both the accounting theories are important depending upon the situation the company faces. Positive accounting hypothesis tries in making good predictions in the actual world proceedings as well as translates into specific accounting transactions. Normative theories, on the other hand, tend to recommend what should be done. The above study clearly defines both the theories, its advantages that give proper insights of information that when these theories should be used by managers and investors. Differences are mentioned in the study because that will help in understanding the fact where theories are used at the time of collecting financial information. Normative theory expresses a decision regarding circumstances that is desirable or undesirable and based upon customary that is feasible. Positive accounting theory, on the other hand, expresses estimation on a situation that actually contains no suggestion of endorsement or displeasure and not based on an average. References Avel, D., 2014. Positive accounting theory: theoretical and critical perspectives.International Journal of Critical Accounting,6(4), pp.396-415. Balakrishnan, K., Watts, R. and Zuo, L., 2016. The effect of accounting conservatism on corporate investment during the global financial crisis.Journal of Business Finance Accounting,43(5-6), pp.513-542. Beattie, V., 2014. Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework.The British Accounting Review,46(2), pp.111-134. Bonin, H., 2013.Generational accounting: theory and application. Springer Science Business Media. Christensen, H.B., Nikolaev, V.V. and Wittenberg?Moerman, R., 2016. Accounting information in financial contracting: The incomplete contract theory perspective.Journal of Accounting Research,54(2), pp.397-435. Christensen, J.A. and Demski, J., 2012.Accounting theory. Irwin/McGraw-Hill. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Dutta, S. and Patatoukas, P.N., 2016. Identifying Conditional Conservatism in Financial Accounting Data: Theory and Evidence.The Accounting Review. Gaffikin, M.J., 2016. A Brief Historical Appreciation of Accounting Theory? But Who Cares?. InPioneers of Critical Accounting(pp. 109-142). Palgrave Macmillan UK. Hendriksen, E.S., 2016.Accounting theory. McGraw-Hill/Irwin. Jones, S.., 2015.The Routledge companion to financial accounting theory. Routledge. Raj, S.K. and Roy, S., 2016. Accounting Theory: An Ethical Perspective of Real Life Scenarios.International Journal of Business and Social Research,6(10), pp.47-55. Scott, W.R., 2016.Financial accounting theory(Vol. 2, No. 0, p. 0). Upper Saddle River, NJ: Prentice hall. Watts, R.L. and Zimmerman, J.L., 2016. Positive accounting theory: a ten year perspective.Accounting review, pp.131-156.

Digital Revolution free essay sample

The digital revolution has been impacting the societies and communities we live in for a while. The digital revolution has impacted many aspects of the world we live in such as health care, communication, robots, and security. One large aspect in which the digital revolution has effected has been human relationships. The digital revolution will continue to negatively effect relationships among humans in the areas of school, work, and home. In the current era, almost everyone uses technology to interact with one another in some form or another. Technology has made both a negative and positive impact on our society, although it has made a mainly negative impact on the relationships among people. In school teachers are turning towards technology to aid their teaching. This can be beneficial for the information getting across to the students, but it changes the relationship from teacher student to technology student. This fact has effected people emotionally in a negative way. Marketing is a process of selling and promoting goods and services, it involves market research as well as advertising.Marketing must keep up with technology as it evolves; if not there would not be any way to market goods or services to societies who have embraced the digital revolution. With this, some marketers will automatically change towards the digital revolution but some will have a hard time adapting towards the digital revolution. Marketing has no other choice but to move towards digital revolution, as that is where the world is moving towards to as well as where the future will be, and so marketing must keep up with digital revolution. Why?Because if marketing does not give in to the ways of the digital age, how will marketers market? Marketing is needed everywhere, whether we want it or not, it has impacted us greatly in many ways. Both the young and old will have to get used to it. The invention of the internet has impacted marketing in a creative way, such as how advertisers and marketers promote or advertise their products or services. With social networking sites such as Facebook and Twitter, it is much easier to reach out to target audiences and also faster. Traditional ethods of advertising and marketing are still used but most make use of the technology today to create better results that before. Those who still use traditional marketing may be left in the dark or poor sales unless they switch to online marketing. Nowadays most societies, have embraced technology, everyone either has a cell phone, laptop, tablet, mp3s or Ipods or Ipads. Retrieving information has become much easier due to the invention of the internet and these gadgets, where we can get information anywhere and anytime whether on the internet, TV, radio etc.Everyone can be kept up to date with what’s going on around the world as well as how companies can keep in touch with their consumers through the internet. News travels fast as well, with the invention of mobile phones, internet and radio unlike before where people had to write letters or even travel in order to get information from one ear to another. Companies like Mango, keep in touch with their consumer through Facebook or through their website, and Star newspapers have also adopted the SMS News updating service, where breaking news is sent to the hand phones, that way the person can be kept updated.Companies are also able to keep immediate feedback from consumers using the internet; it is fast, easy and convenient. It is much easier to reach consumers faster and more conveniently, wh ich builds the relationship between consumers and marketers as communication won’t be such a problem, whether it’s via phone or via internet. With fast feedback, companies can plan and change their ways to please the consumers due to what the consumers has to say. Some companies have questionnaires or feedback page where consumers can express their dissatisfaction or displeasure.The internet has also made paying bills or making payments much easier. With sites such as EBay, consumers can look for what they want online and even purchase it online and have it delivered to them all with click. Banks and insurance companies have adopted this method to make it more convenient for consumers as well as to attract consumers. Transactions between businesses have also changed as they can communicate through email or chat to make communication faster and easier.Some companies such as Dell have a toll free number for customers who have trouble with their gadgets and can call the number and talk to the operator and can repair the gadget by themselves with the aid of the operator on the phone. This saves time and money for the consumers as they do not have to travel to the repair centre and pay for repair services. Advertising has also changed due to digital revolution as they there are many types of media to reach the wanted audience; marketers can customize the way they advertise to grab the consumer’s attention in the most creative way and in many types of media, anytime and anywhere.Advertising today has become very important as it is how marketers let consumers know about their products and services, that is why advertising also has to evolve accordingly to technology. Digital Revolution has also made an impact on consumer behaviour, because as marketing evolves with technology, the consumers will also move into the 21st century, which makes their choices and decisions behind buying a product change.Consumers today, as I’ve mentioned have many choices to choose from and so, logically, consumers want quality products which are affordable. Consumer behaviour has changed, as with the growth of choices, consumers have different likings, particular individualities and buying patt erns due economic, functional and psychological reasons. Today consumers have more power than they did 10 years ago or even 50 years ago, they have choices and opinions, so consumers are very important in determining the success in one’s product or service.There are much more options, varieties of products or service, for example; a washing detergent has more than 10 types of brands or kinds; that is why consumers have more supremacy in the business world, they have options, choices, opinions and decisions. Consumers’ power over purchasing has escalated due to digital revolution, as there is always a new product, or a improved version of a product, etc. These products have set a standard for consumers, so consumers want to be in that standard, in other words they don’t want to be left in the dark and want to follow these technology trends.Technology trends such as the latest games, latest apps, latest gadgets or cell phones. To conclude, Digital Revolution has changed the way we live, the way we see things but most importantly it has changed the future, not only the future of advertising or business but also the world. And at this pace that the world is going, I believe that there is no stopping the ever evolving technologies that are being built, innovated and created today, tomorrow and so forth.