The healthcare Law

The healthcare Law The healthcare law that was enacted this spring by the U.S. President Barrack Obama aimed at providing U.S citizens with medical cover. The law established universal medical services to all U.S. citizens and to be paid for by the federal government. The enactment of the law ends the need for private medical insurance in the country that will now provide supplementary medical coverage. Advertising We will write a custom essay sample on The healthcare Law specifically for you for only $16.05 $11/page Learn More The government would fund the national healthcare through taxation and other funds that would replace the health insurance premiums that were initially paid by the citizens. This paper examines the application of economic concepts such as law of demand supply, equilibrium and managerial decisions on this healthcare law. Managerial decision-making Every organization aims at maximizing the profit made by the organization. In order to maximize profits, the organization needs to minimize costs. According to Png and Lehman, the management of an organization has a duty to formulate policies and make decisions that would lead to the achievement of the set goals (36). Given that the business environment is dynamic, firm mangers usually rely on strategic decision making that involves making of decisions based on the strategies that would maximize the use of firm resources. Some of the strategic decisions made by an organization include decisions on cost minimization and effective utilization of firm resources. In order to minimize costs, the management ensures that the operational processes are efficient, cheap quality inputs are utilized efficiently while creating valuable products that satisfy consumer needs. Basing on the managerial decision-making, the federal government is similar to the management of organizations. It needs to ensure that all healthcare needs of U.S citizens are satisfied. Therefore, it sought to satisfy the health care needs by establishing the national healthcare act that would be funded through taxation. This decision to enact the act is optimal because the federal government would establish a healthy nation that would contribute to economic growth positively through increased production. Demand, supply and market equilibrium According to Png and Lehman, both buyers and sellers meet in a market in which there is the exchange of goods and services (121). Economic resources are usually in short supply while the needs that are to be fulfilled using the resources are usually indefinite. In addition, different people and regions are bestowed with different resources that satisfy different human needs. Advertising Looking for essay on health law? Let's see if we can help you! Get your first paper with 15% OFF Learn More Due to different endowment of resources to countries and regions, some countries have a comparative advantage in the production of a given good or service over others. In addition, the differences in resources endowment have made countries and individuals within the country to be dependent on external economies hence; they would always demand the supply of given goods and services for the fulfillment of their needs. The law of demand posits that the demands for goods and services shrink as the prices of the goods/services increases while other things are held steady. Demand is provided in terms of quantity of the goods. The quantities of goods that are demanded by clients differ from one individual to another basing on various factors that affect demand. Fluctuations in the quantity of a given good/service that is required by consumers fluctuates over time based various factors such as the level of proceeds for consumers, the price of the good and availability of substitutes among other factors. The supply of goods and services occurs in the market too. Suppliers provide goods based on the quantity of the goods that consumers require in order to meet their needs. The quantity of goods/services supplied is a function of many factors including the price of the good/service, level of income for consumers, productivity and the amount of goods/services that consumers need in order to meet their needs. The law of supply postulates that the supply of a given good/service declines as the price of the good/service decreases and vice versa with other factors being held steady (Png and Lehman 357). Equilibrium in the market is obtained at the level in which the total of goods/services demanded by clients equates the level of goods/services supplied by different sellers in the same market. At equilibrium, the price at which the sellers sell their products to customers is referred to as the equilibrium price while the equilibrium quantity is the quantity supplied by sellers and bought by clients in the market. At equilibrium, there is no incentive for the suppliers to increase the goods supplied because the price and inco me remains the same in the short term. Advertising We will write a custom essay sample on The healthcare Law specifically for you for only $16.05 $11/page Learn More Similarly, customers have no incentive to increase the amount of goods demanded in the short term. The changes in other factors in the business environment can cause the amount of goods/services supplied and demanded in the market to change. Some of the factors include changes in demographics, income and productivity among other factors (Png and Lehman 123). The economic concepts of demand and supply could also be applied to the healthcare act. The customers in include all U.S. citizens that needs medical care. The supplier is the government. The level of demand would increase if the U.S. population increased or the levels of epidemic or accidents in the country increased. The equilibrium in the provision healthcare services to the citizens would be achieved whenever the supplied services would be equal to the demanded services. Optimization techniques According to Png and Lehman, an optimizing firm should keep producing as long as the marginal costs incurred during production are less than the marginal revenue (183). During the production period, the company should always focus on minimizing processing costs to ensure that it meets its profit maximization objective. An organization should produce until the level in which the magical costs realized in the course of production are equal to the marginal revenue. This is the optimal position of the firm. Any increase in production would result in losses. The management of an organization can alter this position if long-term production capacity is created. This can only happen in new management tools such as investment in new technologies and expansion of production space and plant. The application of optimal techniques to the healthcare law would mean that the federal government should increase the provision of healthcare s ervices as long as the marginal costs incurred in healthcare service provision is less than the marginal tax collected by the government. The optimal level of healthcare service provision would be when the marginal cost of the services is equal to the marginal tax collected. New decisions to use advanced technology and increase healthcare services provision capacity should sought once the government increases service provision at the expense of healthcare costs. Consumer behavior and rational choice Organizations are involved in the production of goods and services while consumers are mainly to make consumption decisions for the produced goods. The theory of demand postulates that consumers demand goods (services) in order to meet their unlimited wants. After the goods/services are provided, the consumers consume them for satisfaction that is measured in terms of utility. Advertising Looking for essay on health law? Let's see if we can help you! Get your first paper with 15% OFF Learn More Consumers are rational in their consumption decisions because they always choose the best basket of supplied goods that would best meet their needs given the prevailing circumstances. They therefore decide the quantity of goods to purchase and the amount of money to spend on the goods. Given the rationality of consumers, the healthcare service consumers in the U.S., the U.S citizens are rational consumers too. They would make decisions on the type of healthcare services demanded. However, the amount of money to spend on the services would not be made by the citizens, but by the federal government through taxation. Demand functions Demand functions indicate the existing relationship between the levels of the good demanded and the determinants of the levels demanded by the customer. The quantity of a given good demanded by consumers is determined by various factors such as the price of the good, the level of income, the prices of other related goods such as compliments and substitute s and tastes and preferences. Given these factors, the demand function of a given good can be expressed as indicated below. D=f(P,I,PXPYT) where D- quantity demanded, P- price of the good demanded, I- Income, PX price of related good x, PY Price related good y and T- tastes and preferences. Application of demand functions in the healthcare law The demand function could also be applied to the healthcare law and the demand of healthcare in the U.S. The U.S. citizens are the consumers of healthcare services provided by the federal government under the healthcare law. The demand of healthcare services in the U.S is determined by various factors such as exposure to risk factors, levels of income, price of healthcare among other factor. The healthcare demand function can be expressed as below. H=f(R,I,P, O) where H- healthcare quantity demanded, R-exposure to risk factors, I-levels of Income, P-charge son the healthcare and O-other factors An increase in any of the causative factors coul d alter the level of healthcare services demanded by the U.S. citizens. For instance, an increase in the number of people exposed to risky environments that could affect negatively their health could increase the demand of healthcare services. An increase in healthcare taxation could reduce the demand for healthcare services because many people would opt for private services. This is similar to an increase in income for U.S citizens. Production theory Production of goods and services entails utilization of various resource inputs such as labor, power, and raw materials among other factors. The theory of production involves the determination of the levels of input factors to be used by an organization to produce a given level of out. An organization would combine different levels of factors of inputs such as labor and capital to produce a given output. However, in the course of productivity, organizations aim at minimizing the costs incurred while ensuring that the profit realized a re maximum. A firm can experience increasing returns to scale if the marginal costs incurred reduce as the produced output increases. Constant returns to scale are experienced whenever the marginal cost realized by the organization is constant as the output produced increases. On the contrary, decreasing returns to scale would be realized if the marginal costs of an organization incurred during productivity would increase as output increases. Therefore, it is advisable that the management of the organization should produce up to that level in which the marginal cost equals the marginal revenue in order to avoid reduction in scale of returns that could lead to an exit from the market (Png and Lehman 319). The application of the theory of production to the healthcare law implies that the government provides healthcare services using capital and labor. Capital used in the productivity of the services includes the buildings, latest technological equipment in public hospital vehicles a mong other capital tools. Labor on the other hand includes all healthcare professionals employed by the state to provide quality healthcare to U.S. nationals. The cost incurred in the provision of healthcare services includes the cost of capital and labor while the revenue is obtained from healthcare taxation. Increasing returns would be realized whenever the marginal cost of providing healthcare services decreases as service provision increases. On the contrary, the federal government would realize reducing returns to scale whenever the marginal costs incurred by the state in providing healthcare services increases as provision of healthcare services increases. The optimal healthcare service output would be at the position in which the level of marginal cost of healthcare service provision equals marginal revenue from taxes (Png and Lehman 170). The federal government in the healthcare sector in the long run should pursue technological change and industrial revolution. This would enable the federal government increase and improve the provision of healthcare services to U.S. citizens. However, the federal government can pursue technological change if it realizes that it is providing healthcare services under decreasing returns to scale. This change of strategy would ensure that the government minimizes costs while maximizing healthcare tax revenue. Work Cited Png, Ivan and Lehman, Dale. Managerial Economic. New York: Willey-BlackWell. 2007.

Can You Take the ACT Without Geometry

Can You Take the ACT Without Geometry SAT / ACT Prep Online Guides and Tips Have you not taken a geometry class yet, or do you feel like geometry's not your strong suit? If that's the case, how well can you do on the ACT without a strong knowledge of geometry? Let's approach this by first considering how many of the math questions on the ACT cover geometry and, its close relative, trigonometry. How Much Geometry and Trigonometry Are On the ACT? The math section on the ACT asks 60 questions in 60 minutes. The exact number of geometry questions varies between 35% and 45%, so you might encounter between 21 and 27 geometry questions, a significant portion. 5% to 10% more cover trigonometry, which might involve relations in right triangles or functions. This equates to about 3 to 6 more questions. To break all of geometry down into more specific topics: Coordinate Geometry, 15-20%, 9 - 12 questions Plane Geometry, 20-25%, 12 - 15 questions Trigonometry, 5-10%, 3-6 questions Total, 40-55%, 24 - 33 questions The remainder of the ACT math sections covers algebra, including pre-algebra, elementary algebra, and intermediate algebra. Let's take a closer look at the concepts covered within geometry and trigonometry. Even if you haven't taken a geometry class, you might have a working or intuitive understanding of some of these concepts. What Concepts In Geometry and Trigonometry Are Covered? Coordinate Geometry Coordinate geometry covers the following concepts: Graphing and relations between equations and graphs, including points, lines, polynomials, circles, and other curves Graphing inequalities Slope Parallel and perpendicular lines Distance Midpoints Conics For example, the following problem tests your understanding of graphing and distance, as well as a basic understanding of what a rectangle is, which overlaps with the next subtopic: plane geometry. Answer: F Plane Geometry Plane geometry questions cover Properties and relations of plane figures, including angles and relations among perpendicular and parallel lines Properties of shapes, like circles, triangles, rectangles, parallelograms, and trapezoids Transformations Proofs and proof techniques Volume Applications of geometry to three dimensions For instance, the following problem asks you to draw on your understanding of parallel lines and properties of shapes, including both angles and relations among parallel lines. Answer: D Trigonometry The trigonometry questions might cover these concepts: Trigonometric relations in right triangles Values and properties of trigonometric functions Graphing trigonometric functions Modeling using trigonometric functions Trigonometric identities Solving trigonometric equations The following example problem tests your understanding of trigonometric relations in a right triangle. Answer: C As you can see, there are several subtopics within each of these areas that might be covered by questions on the ACT. If you have little to no knowledge of geometry or trigonometry, how well can you expect to score on the math section of the ACT? What Score Can You Get Without Geometry or Trigonometry? Let's say you skipped every single geometry question on the ACT and answered all the remaining math questions perfectly. In this scenario, the highest score you could get (out of a maximum 36) would be between 21 and 24. This depends on exactly how many geometry questions there were. However, if you're not familiar with geometry, it's probably safe to assume you don't have much experience in trigonometry, either. So if you skipped all the geometry and trigonometry questions, while answering the remaining ones correctly, the highest score you could get would be somewhere between 18 and 23. Where exactly did I get these estimates? Take a look at the score chart below to see how your raw score gets scaled to a score between 1 and 36 on the ACT. Remember your raw score is simply the number of questions you answer correctly. I cut this scoring chart off at 13, but it is possible to score as low as 1. If you're interested in the full scoring charts of all sections of the ACT, check out this article here. Raw Score Scaled Score Raw Score Scaled Score 58-60 36 38 24 57-58 35 40 23 55-56 34 36-37 22 54 33 34-35 21 53 32 33 20 52 31 31-32 19 50-51 30 29-30 18 49 29 27-28 17 47-48 28 24-26 16 45-46 27 19-23 15 43-44 26 15-18 14 41-42 25 12 - 14 13 As you can tell from the math questions and scoring charts, geometry and trigonometry really are a significant part of the math section of the ACT. So if you haven't taken these courses in school before you're sitting for the ACT, what should you do? ACT Math Takeaways Even if you've never taken a class in these areas, you can still help yourself out a huge amount by studying on your own. Test prep materials are really helpful in breaking down each concept and giving you plenty of focused practice in applying these skills. Some questions, especially those regarding shapes and coordinate geometry, may even be intuitive. You'll likely be able to answer several questions with just a basic knowledge of geometry and some practice. The scenariodescribed above, where you skip all these questions, really never needs to occur, even for students who haven't taken a geometry class yet in their high school career. You might also want to consider taking the SAT instead of the ACT. The SATalso requires your understanding of geometry, but it actually does not cover trigonometry. This article gives you the full breakdown of how much geometry is on the SAT. So don't give up on math; instead, use your gap in knowledge to drive your studying and strengthen your skills with self-studying. It will go a long way toward raising your ACT math score. What's Next? When are you planning the take the ACT? Depending on what year you're taking it, you will have different target scores in mind. Read about what's a good score for a freshman, for a sophomore, and overall for your college applications. Preparation is everything with the ACT. Read these vital tips and strategies for designing your ACT study plan. Are you aiming for perfection? These tips by a full scorer will help you raise your scores and even achieve a perfect 36. Want to improve your ACT score by 4 points? Check out our best-in-class online ACT prep program. We guarantee your money back if you don't improve your ACT score by 4 points or more. Our program is entirely online, and it customizes your prep program to your strengths and weaknesses. We also have expert instructors who can grade every one of your practice ACT essays, giving feedback on how to improve your score. Check out our 5-day free trial: Have friends who also need help with test prep? Share this article! Tweet Rebecca Safier About the Author Rebecca graduated with her Master's in Adolescent Counseling from the Harvard Graduate School of Education. She has years of teaching and college counseling experience and is passionate about helping students achieve their goals and improve their well-being. She graduated magna cum laude from Tufts University and scored in the 99th percentile on the SAT. Get Free Guides to Boost Your SAT/ACT Get FREE EXCLUSIVE insider tips on how to ACE THE SAT/ACT. 100% Privacy. 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Business Strategy Assignment Essay Example | Topics and Well Written Essays - 1500 words

Business Strategy Assignment - Essay Example Since then has undertaken a management course at Edinburgh Business School and tried to implement a number of organisational changes which could motivate his employees to perform better and add to the profitability of the agency. Kenneth tried to apply his learning from the MBA course to implement the transformational leadership style in ASL through different means and making radical changes through the introduction of many new policies. However, most of the new policies introduced by Kenneth did not prove to be fruitful for the agency and a number of issues were found to have crept up as a result of such initiatives taken up by Kenneth. This study entails analysing these issues and problems associated with ASL. Different recommendations have also been made in this study, which can help Kenneth in transforming the fortunes of ASL. This study would try to provide various alternative solutions to eradicate the existing problems faced by the organisation, and help it to increase its pro ductivity and perform better in the forthcoming years. Problem Identification and Analysis The analysis of various issues concerning ASL has been discussed in this section. Most of the issues are related to each of the new policies that have been introduced by Kenneth. First of all, he introduced a mission statement for the organisation. It stated that, â€Å"Our aim at Always Spot-Less is to be the preferred supplier to both our existing and future clientele. We will strive to achieve this by providing an exemplary service, attention to detail, competitive pricing and undertake that we can achieve excellent value whilst maintaining the highest standard in this industry. We will value and listen to our customers.† This mission statement was introduced by Kenneth with the objective of driving all the employees of the organisation towards working for a unified goal or objective. The mission statement of a company mainly highlights the purpose and what it intends to accomplish i n the forthcoming future (M3 Planning, 2008, p. 1). Developing a good mission statement and making it work for the company requires a good understanding of the organisational values and identifying concrete objectives for the company (Talbot, 2003). However, this mission statement is too complex and the organisational purpose is not clear. Moreover, the objectives of the company have also not been identified clearly. The Theory Y management style was introduced by Kenneth for his cleaners. The two factor theory was introduced by Douglas McGregor. This theory is on the basis of two views of X assumption and Y assumption. X assumption are conservative and Y assumption are modern in style (Hollyforde and Whiddett, 2002, p. 144). Implementing Theory Y in the organisation meant that the organisational staff in ASL were no longer being supervised by Kenneth. He thought that this might self-motivate the cleaners of ASL. However, it did not work and the workers of ASL were found to be poor decision makers and they were more concerned about earning money for themselves rather than thinking about achieving the organisational goals or objectives. Next, Kenneth also arranged for weekly meetings for all his staff to discuss the finances and latest developments at ASL. This was done with the motive of making the

Dual Agency and Ethics Conflicts in Correctional Practice Essay

Dual Agency and Ethics Conflicts in Correctional Practice - Essay Example An overlap in the normative framework of offender rehabilitation and punishment develops a unique collection of ethical dilemmas for the practicing persons (Cervantes and Hanson, 2013). The roles of corrections professionals in prisons have changed to reflect a prevailing ideology within the correctional administration which is taken to deemphasize on treatment while emphasizing on custodial concerns and security. Consequently, these professionals experience unique professional and ethical conflicts, dilemmas. Among these conflicts are integrity, inmate custody, security, objectivity, honesty, documentation and decision making. As a manager I developed a six-step policy that controlled the identified dilemmas among others to provide guidelines and address the possible conflicts for the practitioners under my supervision. This was aimed to eliminate vague standards and possible misinformation by the practitioners. The approach below solves the dilemmas and improves the service deliver y to incarcerated individuals (Wilson, 2010). The six identified steps were, identify, analyze, report, discuss, action, follow-up. Under the identification step, the practitioners are entitled to point out the challenges that will build the chances of a conflict within themselves, peers, or with their clients, inmates. There are situation where interests may collide within cases handled by different practitioners in a correction facility, they are supposed to document it in detail to avoid delay in service delivery or injustices that may compromise integrity. The situation is analyzed to check whether it can be solved at this level before escalating it to the next level in management. If it is not possible to clear it here, it is moved to the next phase within the policy, reporting, where it is tabled to the management. From here, the involved corrections professionals delve into the matter in an attempt to eliminate the issue in dilemma. When a consensus is reached,

Fun Loving Girl Essay Example for Free

Fun Loving Girl Essay I have a grown daughter that is on her own with a very special little girl that has stolen my heart. They are most important in my life and always will be. Family is very important to me and I want to be with someone who also values family. This fun loving girl is ready to start taking care of her social life. I keep myself busy as a foster parent and sometimes forget that I need to get out and have some fun. I am a small town country girl who just likes to keep things simple. I work at a hunting lodge so stay very busy during the season. I love what I do and don’t consider it a job. I’ve grown up around guns and like to shoot at the range. Never been out hunting, but would like to see what it is all about†¦.. test the ‘if it flies, it dies’ theory. I shot clays for the first time last fall and really enjoyed it, so looking forward to doing that again. Love to go fishing (and yes, I can bait my own hook), just kicking back and taking it easy, spending time around the fire with friends having a few drinks and lots of laughs. I’d rather look at the stars and kiss in the rain than go to the mall. I like NASCAR and hope to get to a race someday. I think it would be awesome to take a car for a spin around the track too. Demo derbies, stock-car races, dirt track†¦. love the atmosphere. I haven’t been on the back of a bike in a very long time and have always wanted to learn to ride myself, so if you are into that, I am not opposed to having the wind in my hair. I enjoy rock from the 70’s, 80’s and 90’s and country. Never had much opportunity to learn how to two step but would like to learn. I like to go to out of the way places to look at the history, the old buildings and structures and remnants of the past that have been left behind. Antique stores and such are fun to explore and I like going to the local country auctions. I can always find something from the past that catches my eye. Im looking for someone to enjoy life with. Start out slow but have no limits to where it may go. I am a very affectionate girl who loves holding hands in public and giving hugs and kisses because that is how I like to show you that I care and I am really into you! I dont have time to play games†¦.. unless, of course, they are mutually agreed upon. I am adventurous and passionate, so intimacy and romance is a must. You should know that I give like I want to get back and am looking for that special guy that does the same thing. You must have a great sense of humor! I love to laugh and can find humor in just about anything. I believe you have to laugh at yourself before you can laugh at someone else. And I laugh at myself every day! Laughter is a great healer and I try to surround myself with people who laugh at the smallest most ridiculous thing, and can also create their own humor. I am looking for someone to build a relationship with, that special friend to stand by my side through it all†¦the good and the bad. I want someone who also tries to keep a positive attitude in all things. I am determined to be happy, regardless of what life throws at me. I have learned through experience that the greatest part of my happiness will depend on my disposition, not my circumstances. I choose to be happy. I want someone to enjoy life with. I dont need someone to change me or someone to change for me. I am who I am, Im not perfect but I work through my imperfection to be a better person. Life is not certain so I live life with no regrets, I am who I am because of my life and dont live in the past. I look forward to each new day and the adventure it brings. So if there is someone out there who is up to the task, I am ready to have fun. Here is our chance to maybe finding that spark for more. I am looking forward to meeting new people, forming lasting friendships, exploring life and the possibility of ultimately finding my soul mate. If you get what I’ve said here, then hit me up and we can get to know each other.

Euthanasia Essay examples -- essays research papers

Euthanasia & Assisted Suicide â€Å"To be or not to be† Problem: Life is a precious gift containing a wide spectrum of emotions and experiences that make it so sacred. Emotions and experiences are intertwined and are the substance of ones existence. Yet when the pain outweighs the joy of life one begins questioning whether or not to endure. â€Å"To be or not to be† an extremely difficult question, a query that resides souly in desperation a place of pain and darkness. What brings a person to even consider such an act? What is up ahead or around this individual that feeds the need to bail out? It seems that perpetual pain or loss of ones control are both common reasons for this escape. Euthanasia and assisted suicide have both been topics contemplated throughout the history of human civilization. Whether or not one has the right to take their own life and further more get aid in doing so. â€Å"Euthanasia can be traced as far back as to the ancient Greek and Roman civilization where it was allowed to help others die†(Encarta 98). Thi s practice has followed us through the years and has been rejected accepted and considered throughout the globe. â€Å" In the United States the first doctor was charged for performing euthanasia in 1935. Harold Blazer was charged for the death of his daughter a victim of spinal meningitis. After caring for her for thirty years, he placed a rag of chloroform over her face until she died, he was acquitted from charges† (www.angelfire.com/al/jefspage). â€Å"In Holland euthanasia and assisted suicide are both crimes punishable with 12 years in prison, yet it has been a common practice (3,600 cases in 1995 alone) for nearly a decade. These laws are rarely enforced providing physicians follow official guidelines† (Time.com). Currently in the United States controversy swarms on weather or not to allow euthanasia and assisted suicide. †Marian Fredrick stricken with Lou Gehrig’s disease, felt her muscles degenerate to the point where she could no longer hold her head up, or speak. Marian then decided to end her life seeking out Dr. Kevorkian, who helped her find a final peace†(Proposal B). Should we allow a person who is terminally ill, in constant pain, and on the verge of losing control, the right and the privilege to escape from their fading shell? Should they have the â€Å"right† to seek aid and consolation in this important decision? Absolutely, why shou... ...nd taken by God. The meek and uninformed would see the bill as a loss of control and a potential area of abuse. These groups would most likely unite to push agents the bill with a counter â€Å"Right to live† campaign, using the media as well as pushing the populists’ religious and apprehensious pressure points. Pressure on politicians is another poetical threat that the large religious community would exercise, against peoples freedom to chose their own end. Others belief’s should not infringe on the decision concerning ones self, these individuals are free not to participate or believe in this practice, yet to cause another to suffer at their expense is truly unjust. Efforts would have to be increased as a result at better informing the public help people evaluate â€Å"others belief over ones freedom†. Another potential problem is the abuse of this practice, where individuals would be taken advantage of by a devious doctor. The involvement of the st ate with procedures, monitors, and checks would play a important role in reducing if not eliminating abuse. Problems are to be expected, in almost any instance concerning the mass public, yet hopefully the majority can make the right decision.

Berkshire Hathaway Essay

ISSUES Warren Buffet invoked the substance-over-form concept to justify accounting for the GEICO and General Foods transactions as dividends distributions rather than sales of stock. Do you agree with Buffet that the substance of each of the proportionate redemptions was a dividend and not a sale of stock? In deciding how to account for an unusual or unique transaction for financial reporting purposes, should one consider the tax treatment applied to the transaction? Did Peat Marwick have a right to change its position on the proper accounting treatment for the stock redemptions? What factor or factors may have been responsible for Peat Marwick’s decision to change its position regarding these transactions? FACTS In 1983, GEICO announced plans to purchase several million shares of its outstanding common stock for $60 per share. Among GEICO’s largest stockholders was Berkshire Hathaway, Inc., an investment company. Executives of the two companies decided that Berkshire would tender approximately 350,000 if its GEICO shares in the stock buyback plan, which would allow Berkshire to treat the transaction as a proportionate redemption. In a proportionate redemption, the percentage equity interest of on company in a second company is maintained at the level that existed immediately before the transaction. For federal taxation purposes, the proceeds received by the investor company in a proportionate redemption are taxed as dividends by applying the effective intercorporate dividend tax rate. In 1983, that tax rate was approximately 6.9 percent. Berkshire also chose to treat the proceeds from the redemption of the GEICO stock as dividend income in its 1983 financial statements. Berkshire’s audit firm, Marwick, Mitchell & Company, approved that accounting treatment. In 1984, another company in which Berkshire had a significant equity interest,  General Foods, announced a stock buyback plan. Again, Berkshire structured the sale of stock to General Foods so that the transaction qualified as a proportionate redemption. Berkshire also opted to report the proceeds received from General Foods as dividend income in its 1984 financial statements. In late 1984, representatives of Peat Marwick told Berkshire executives that the proceeds of the General Foods stock redemption should not be considered dividend income for financial reporting purposes. Instead, Peat Marwick maintained that the transaction should be recorded as a sale of stock with the difference between the selling price and cost reported as a capital gain on Berkshire’s income statement. This treatment of the transaction was less favorable for financial reporting purposes that the option preferred by Berkshire since it did not allow the total proceeds received from General Foods to be reported as revenue. Peat Marwick’s recommendation annoyed Berkshire’s executives. The accounting firm’s next decision irritated those executives even more. Marwick insisted that Berkshire restate its 1983 financial statements to reflect the GECICO stock redemption as a sale of stock rather than as a dividend distribution. Warren Buffet, Berkshire’s CEO, discussed the GEICO and General Foods stock redemption at length in his company’s 1984 annual report. Buffet disputed Peat Marwick’s contention that the transactions should be treated as sales of stock and not as dividend distributions. He then explained why he eventually agreed to accept the audit firm’s position by saying â€Å"†¦to avoid a qualified auditor’s opinion, we have adopted Peat Marwick’s 1984 view and restated 1983 accordingly.† Buffet as confirmed that Marwick’s decision had no effect on Berkshire’s business with GEICO or General Foods, their cash, taxes, and market value and tax basis of our holdings all remain the same. However, treating the General Foods transaction as a sale of stock reduced Berkshire’s 1984 net income by 8 percent. Applying that accounting treatment to the 1983 GEICO transaction reduced Berkshire’s previously reported net income for 19 83 by 1 percent. The Wall Street Journal reported the disagreement between Berkshire  executives and Peat Marwick that evolved from the proportionate redemption transactions. When asked to comment on Buffet’s criticism of Peat Marwick in his company’s 1984 annual report, a Peat Marwick partner simply noted, â€Å"It’s the client’s prerogative to disagree. Our report speaks for itself.† Another prerogative of an audit client is to change auditors. In 1985, Berkshire retained Touche Ross & Company to audit its financial statements. As required by the Securities and Exchange Commission, Berkshire filed an 8-K statement with that federal agency to disclose the change in auditors. In that statement, Berkshire reported it was â€Å"dissatisfied† with Peat Marwick’s inconsistency regarding the proper accounting treatment for stock redemptions. AUTHORITY/ANALYSIS The substance over form accounting concept means that the economic substance of transactions and events must be recorded in the financial statements rather than just their legal form in order to present a true and fair view of the affairs of the entity. Preparers of the financial statements should use their judgment when employing the substance over form concept, which helps to derive the business sense from the transactions and events and to present them in a manner that best reflects their true essence. In some instances the legal aspects of transactions and events may have to be disregarded in order to provide more useful and relevant information to the users of financial statements. The concept of substance over form is imperative to the representation and reliability of information contained in the financial statements. A proportionate stock redemption is a transaction in which ownership interests are redeemed proportionate to the total shares outstanding. As a result, each shareholder owns the same percentage of the company after the redemption as before. Buffet was justified in recording each of the proportionate redemptions as a dividend and not as a sale of stock, because although GEICO and General Foods repurchased their stocks, Berkshire still maintained the same percentage of equity interest as it did before the transaction. Also, Buffet followed federal taxation purposes, which stated  that the proceeds received by the investor company in a proportionate redemption are taxed as dividends; therefore the transaction was recorded as dividends not sale of stock. By placing the responsibility on the preparers of the financial statements to actively consider the economic reality of transactions and events to be reflected in the financial statements, it will be more difficult for the preparers to justify the accounting of transactions in a manner that does fairly reflect the substance of the situation. According to the PCAOB’s AU Section 316.66, â€Å"†¦the auditor may become aware of significant transactions that are outside the normal course of business for the entity, or that otherwise appear to be unusual given the auditor’s understanding of the entity and its environment. The auditor should gain an understanding of the business rationale for such transactions and whether that rational (or the lack thereof) suggests that the transactions may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets.† (PCAOB, 2002) AU Section 314.21 states that the auditors’ understanding of the entity and its environment consists of an understanding of several aspects, including industry, regulatory, and other external factors (PCAOB, 2002). Taxation would be an example of the regulatory aspect; therefore, one should consider the tax treatment when deciding how to account for unusual transactions. In the case of Berkshire Hathaway, Inc., since the IRS considers proportionate redemptions to be equivalent to dividend distributions, and the proceeds from the repurchasing of stock are taxed as dividends; to ensure consistency, the transaction should have been recorded as dividends. The PCAOB states that the auditor should recognize an adjustment to correct a misstatement in previously issued financial statements to ensure the company’s financial statements remain consistent in the auditor’s report, especially if the matter has a material effect on the financial statements (PCAOB, AU 508.16, 2004). Since Peat Marwick was the auditing firm, it had the right to change its position on the proper accounting treatment for the stock redemptions, and since Berkshire wanted to preserve the unqualified  opinion, the company complied with the auditors. In order for Peat Marwick to maintain its reputation as professional auditors and providing quality audits, the firm decided it was in their best interest to record the GEICO and General Foods transactions as sales of stock by Berkshire, rather than as the receipt of dividends. Under this accounting approach, a portion of the cost of the Berkshire’s investment in the stock of each company would be charged against the redemption payment and any gain would be reported as a capital gain, not as dividend income. This is an accounting approach only, having no bearing on taxes; although, Peat Marwick agreed that the transactions were dividends for IRS purposes. Since the change in accounting treatment reduced Berkshire’s net income by 1% and 8% in 1983 and 1984, respectively, Peat Marwick might have deemed this as material and thought it was necessary to correct the way the transactions were recorded. According to the PCAOB, in evaluating consistency of financial statements, the auditor should evaluate a change in accounting principle to determine whether: the newly adopted accounting principle under GAAP, the method of accounting for the effect of the change is in conformity with GAAP, the disclosures related to the accounting change are adequate, and the company has justified that the alternative accounting principle is preferable (PCAOB, AU 508.17A, 2004). Any of these factors may have been responsible for Peat Marwick’s decision to change its position regarding these transactions. Although recording the stock redemption as a dividend complied with taxation rules under the IRS, it may not have been in accordance with GAAP. Berkshire may not have justified that recording the stock redemption as a dividend was preferable. Although it was preferable to Berkshire, because total proceeds from General Foods would have been reported as revenue, increasing Berkshire’s net income; it may not have been preferable to all the users of Berkshire’s financial statements, because net income would have been over stated. Lastly, in Berkshire’s letter to its shareholders, it stated that the GEICO and General Foods transactions were â€Å"virtually† identical, except  that General Foods repurchased its stock over a period of time in the open market, whereas GEICO had made a â€Å"one-shot† tender offer. In the General Foods case we sold to the company, on each day that it repurchased shares, but left Berkshire’s ownership percentage unchanged. Maybe this difference triggered Peat Marwick to look back into the stock redemption, where they found discrepancies with the accounting treatments and recommended that Berkshire make adjustments to report the transactions appropriately. RECOMMENDATIONS/CONCLUSIONS After Berkshire’s 1984 audit, the company released Peat, Marwick, Mitchell & Company as its auditing firm. Berkshire reported that it was â€Å"dissatisfied† with Peat Marwick’s inconsistency regarding the proper accounting treatment for stock redemption. Corporate non-liquidating distributions to shareholders are usually treated as dividends income; however, distributions that qualify as stock redemptions are treated the same as a sale of stock by the investor to the investee. Therefore, capital gain treatment normally results. Corporate shareholders prefer stock redemptions to be treated as dividend income, because corporate shareholders received the benefits of the dividends, which are deductible and in most cases escape taxation. Qualifying stock redemption results in capital gains that are fully taxable at the corporation’s highest marginal rate. Warren Buffet employed the substance over form concept while accounting for Berkshire’s stock redemption transactions. Since the IRS considers proportionate redemptions to be equivalent to dividend distributions and are taxed accordingly, Buffet justified the accounting treatment used to record these truncations. References http://www.accountax.us/Taxation-%20Corporations%20Lecture%20V.pdf http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-00314.pdf http://pcaobus.org/standards/auditing/pages/au508.aspx http://www.berkshirehathaway.com/letters/1984.html http://pcaobus.org/standards/auditing/pages/au316.aspx#au_316.52

A brief history of shia muslims

It is a fact that Muslims all over the world are divided in two large groups -Shias and Sunnis. They have strong differences in political and religious views.Though they share the same Quran and Hadith but their interpretation of Islam has very few things in common (Lucas, 2008). That is why they have been at logger-heads throughout Islamic History. Both claim to be the righteous one and regard another one as strayed away from the right path.Shia literally means group or comrade. And Shias were originally those people who were with Hazrat Ali and were normally called as Shia-e-Ali, i.e., comrades of Ali or his companions. Later on ‘Ali’ was dropped and they are now only called Shias.It is interesting to know their history. How they came to existence is a good point to start from. When the Prophet (pbuh) passed away the question of his successor rose and each group among Muslims claimed his right to form the government.Ansars (Muslims of Medina) and Mohajireen (Muslims of Mecca who had migrated to Medina) were strong claimers but the matter was sorted out amicably when somebody from the righteous companions narrated one Hadith in favor of Mohajireen (Lucas, 2008). As a result Hazrat Abu-Bakr was made the Caliph.When he was on his death bed, he appointed Hazrat Umar as his successor and he ruled for ten years without any dissent. When he was fatally wounded and people lost their hope of his recovery, they asked him to appoint his successor following the toe of his predecessor. Initially, he declined but when they insisted too much he suggested six names including the names of Hazrat Usman and Hazrat Ali.Majority of Muslims preferred Hazrat Usman to Hazrat Ali and ultimately he was made the Caliph. He ruled for twelve years but in the last phase of his tenure, he was accused of nepotism.Actually, there was a Jew named Abdullah Ben Saba. He had a long grudge against Muslims due to several reasons. He could not tolerate it that Muslims prospered and dev eloped in such a short span of time. It was beyond his patience that Islam had been spreading so rapidly.But he was shrewd enough to realize the fact that he was incapable of fighting Muslims who were the most powerful in the world then. So he put upon himself the guise of a Muslim and came to Iraq among Muslims who had just converted to Islam and were quite unaware of the fact that Islam abolishes every claim on the ground of birth, caste, race and kinship. It doesn’t buy the argument that a ruler’s son should be made the ruler when his father dies though he may be bereft of the qualities of a ruler.These ideas were not known to these new comers in the fold of Islam. They were familiar with the ways of their old monarchs who followed the general rule of hierarchy in which the son automatically occupied the throne of his father when he passed away. In the absence of a son the close relative was crowned.Therefore when Abdullah Ben Saba came to them and said that very gr ave injustice has been done to Hazrat Ali as his caliphate has been usurped by others, they were easily convinced. They thought it their bound duty to stand for Hazrat Ali and provide him with his due right.Abdullah Ben Saba had hatched a very dangerous conspiracy. He never touched the Muslims of Mecca or Medina as he was fully aware that they will easily find out him as a bloody conspirator and will reject his wrong ideas. So he chose the soil of Egypt and Iraq for the propagation of his hierarchal ideas. Muslims of these places were new converts and were therefore easily deceived.In a nutshell, Abdullah Ben Saba spread his snare with too much care. He managed to spread rumors against Hazrat Usman. He got people write letters from Iraq to Egypt and Egypt to Iraq and from different parts of the Islamic Empire to Medina spreading the rumors that the Muslims of those places were suffering from different problems due to the inefficient rule of Hazrat Usman.People were aghast with these news. They strongly suspected that Hazrat Usman was not dealing with problems properly. A committee was formed which looked into the alleged problems. It found all the charges baseless and pointed that there were a few mischievous people in those province who wrote all these letters aiming at disrupting the rule and order of the Islamic Empire.But being very lenient Hazrat Usman let all these miscreants scot free and did nothing against them. Ultimately, they felt encouraged and came marching to Medina with the sole intention to assassinate Hazrat Usman.Hazrat Usman tried to clear their doubts with arguments and they lost their ground logically and were forced to return as they had no legitimate cause to rebel against Hazrat Usman.But they assembled again outside Medina and produced a fake letter of Usman in which it was stated that they should be punished by the governors of their provinces after their returning. Claiming this false charge they surrounded Hazrat Usman’s hou se and slain him brutally. After the assassination of Hazrat Usman, people were at the mercy of these rebels.The entire empire felt itself in the grip of anarchy. Hazrat Ali saw all these and was too much worried about the affairs of the community. He was approached by the same rebels to take the rein of the caliphate. He hesitated as he was fully aware that though those people insisted on their allegiance to him but they were basically against the very soul of Islam.They were introducing such a version of Islam which had nothing to do with the Islam he knew. But he was also requested by those sincere and age-old companions of the Holy Prophet who had selected his three predecessors. Therefore keeping the welfare of Islam above any consideration he accepted the responsibility of caliphate and was made the fourth rightful Caliph.Events which unfolded afterwards paved the way for the tow major division of Muslims which seems destined to remain unbridgeable till the last Day of Judgmen t. So it is clear that this difference of views was political in nature.But the early Muslims were so much religious that nothing could claim their attention except that which had some religious ground (Esposito, 2005). They were so much religiously charged that only religion could satisfy them. In this manner they were easily cheated by conspirators like Abdullah Ben Saba and his companions.It is noteworthy that there were a few sincere Muslims too who were of the opinion that Hazrat Ali had been the most deserving candidate of Islamic caliphate after the death of the Holy Prophet due to his relation and station in Islam.He was an important member of the household of the Prophet and was one of those few people who had embraced Islam in the very beginning. There were other grounds also which are not accepted by all sects of Islam such as his being protected from the possibility of committing any mistake, etc.Thus Shias came into existence and flourished. Later on they developed thei r ideology systematically. Now their ideas are very sophisticated and particularly their notions of ‘imamat’ are very complex. They hold the view that only those people who are completely protected from any potential sin deserve to be made Caliphs or Imams.Thus they believe that there are twelve Imams such as Hazrat Ali, Hazrat Hassan, Hazrat Hussein, etc. It is also noteworthy that all the Shias are not of the same view nor they follow only one ideology.   There are fissures and cleavages among them too and they are ripped apart in their ideology. But as a matter of fact they did not undergo any divisions during the imamate of the first three Imams: Ali, Hassan, and Hussein.But after the martyrdom of Hussein, the majority of the Shias accepted the imamate of Ali Ben Hussein al-Sajjad, while a minority known as the Kisaniyah believed that the third son of Ali, Muhammad bin Hanafiyah, was the fourth Imam as well as the promised Mehdi, and that he had gone into occultat ion in the Radwa mountains and one day would reappear.After the death of Imam al-Sajjad the majority of the Shias accepted his son, Muhammad al-Baqir as Imam while a minority followed Zayd al-Shahid, another son of Imam al-Sajjad, and became known as Zaydis.Following Imam Muhammad al-Baqir, the Shias accepted his son Ja'far al-Sadiq as Imam and after the death of Imam Ja'far the majority followed his son Imam Musa al-Kazim as the seventh Imam. However, one group followed the older son of the sixth Imam, Ismail, who had died while his father was still alive, and when this latter group separated from the majority of Shias it became known as Ismailia.Others accepted either ‘Abdullah al-Fatah or Muhammad, both sons of the sixth Imam.Finally, another party stopped with the sixth Imam himself and considered him as the last Imam. In the same way, after the martyrdom of Imam Musa al-Kazim the majority followed his son, Ali al-Rida, as the eighth Imam. However, some stopped with the se venth Imam and became known as the Waqifiyah.

Marsupials - Marsupialia - The Animal Encyclopedia

Marsupials - Marsupialia - The Animal Encyclopedia Marsupials (Marsupialia) are a group of mammals that like most other groups of mammals bear live young when the embryos are in an early stage of development. In some species such as the bandicoot, the gestation period is as short as 12 days. The young crawl up the mothers body and into the her marsupium- a pouch located on the mothers abdomen. Once inside the marsupium, the baby attaches to a nipple and nurses on milk until it is large enough to leave the pouch and better fend for itself in the outside world. Larger marsupials tend to give birth to a single offspring at a time, while smaller sized marsupials give birth to larger litters. Marsupials were common in many areas of North America during the Mesozoic and outnumbered placental mammals. Today, the only living marsupial in North America is the opossum. Marsupials first appear in the fossil record from South America during the Late Paleocene. They later appear in the fossil record from Australia during the Oligocene, where they underwent diversification during the Early Miocene. It was during the Pliocene that the first of the larger marsupials appeared. Today, marsupials remain one of the dominant land mammals in South America and Australia. In Australia, a lack of competition has meant that marsupials were able to diversify and specialize. Today there are insectivorous marsupials, carnivorous marsupials, and herbivorous marsupials in Australia. Most South American marsupials are small and arboreal animals. The reproductive tract of female marsupials differs from placental mammals. In female marsupials there are two vaginas and two uteruses whereas placental mammals have a single uterus and vagina. Male marsupials also differ from their placental mammal counterparts. They have forked penis. The brains of marsupial are also unique, it is smaller than that of placental mammals and lacks a corpus callosum, the nerve tract that connects the two cerebral hemispheres. Marsupials are quite varied in their appearance. Many species have long back legs and feet and an elongated face. The smallest marsupial is the long-tailed planigale and the largest is the red kangaroo. There are 292 species of marsupials alive today. Classification Marsupials are classified within the following taxonomic hierarchy: Animals Chordates Vertebrates Tetrapods Amniotes Mammals Marsupials Marsupials are divided into the following taxonomic groups: American marsupials (Ameridelphia) - There are about 100 species of American marsupials alive today. Members of the group include opossums and shrew opossums. American marsupials are the older of the two lineages of modern marsupials, which means it was members of this group that later migrated to Australia and diversified.Australian marsupials (Australidelphia) - There are about 200 species of Australian marsupials alive today. Members of this group include the Tasmanian devil, numbats, bandicoots, wombats, marsupial moles, pygmy possums, koalas, kangaroos, wallabies and many others. Australian marsupials are further divided into five groups.

About Zaha Hadid, First Woman Architect to Win a...

About Zaha Hadid, First Woman Architect to Win a... Born in Baghdad, Iraq in 1950, Zaha Hadid was the first woman to win a Pritzker Architecture Prize AND the first woman to win a Royal Gold Medal in her own right. Her work experiments with new spatial concepts and encompasses all fields of design, ranging from urban spaces to products and furniture. At the age of 65, young for any architect, she died suddenly of a heart attack. Background: Born: October 31, 1950 in Baghdad, Iraq Died: March 31, 2016 in Miami Beach, Florida Education: 1977: Diploma Prize, Architectural Association (AA) School of Architecture in LondonStudied mathematics at the American University of Beirut in Lebanon prior to moving to London in 1972 Selected Projects: From parking garages and ski-jumps to vast urban landscapes, Zaha Hadids works have been called bold, unconventional, and theatrical. Zaha Hadid studied and worked under Rem Koolhaas, and like Koolhaas, she often brings a deconstructivist approach to her designs. Since 1988, Patrik Schumacher had been Hadids closest design partner. Schumacher is said to have coined the tern parametricism to describe the curvaceous, computer-aided designs of Zaha Hadid Architects. Since Hadids death, Schumacher is leading the company to fully embrace parametric design in the 21st Century. 1993: A fire station for the Vitra Company in Weil am Rhein, Germany2000: Inaugural Serpentine Gallery Pavilion, London, UK2001: Terminus Hoenheim-Nord, a park and ride and tramway on the outskirts of Strasbourg, France2002: Bergisel Ski Jump, Austria2003: The Richard and Lois Rosenthal Center for Contemporary Art in Cincinnati, Ohio2005: Phà ¦no Science Center in Wolfsburg, Germany2008: Pedestrian Bridge and Exposition Pavilions, Zaragoza, Spain2009: MAXXI: National Museum of 21st Century Arts, Rome, Italy2010: Sheikh Zayed Bridge, Abu Dhabi, UAE2010: Guangzhou Opera House, China2011: Riverside Museum of Transport, Glasgow, Scotland2011: Aquatics Centre, London, United Kingdom; and post-Olympic reconfiguration in 20142011: CMA CGM Corporate Headquarters, Marseille, France2012: Pierres Vives, Montpellier, France2012: Heydar Aliyev Center, Baku, Azerbaijan2012: Eli and Edythe Broad Art Museum at Michigan State University in East Lansing2012: Galaxy SOHO, Beijing, China2013: Hadid Res idences for CityLife, Milan, Italy 2014: Messner Mountain Museum at Plan de Corones, South Tyrol, Italy2017: Expected completion of Hadid Tower, office skyscraper for CityLife, Milan, Italy2017: Expected completion of One Thousand Museum Condos, Miami, Florida2022: (proposed) al-Wakrah Stadium, Qatar Other Works: Zaha Hadid is also known for her exhibition designs, stage sets, furniture, paintings, drawings, and shoe designs. Partnerships: Zaha Hadid worked at the Office for Metropolitan Architecture (OMA) with her former teachers, Rem Koolhaas and Elia ZenghelisIn 1979, Zaha Hadid opened her own practice, Zaha Hadid Architects. Patrik Schumacher joined her in 1988. Working with senior office partner, Patrik Schumacher, Hadids interest lies in the rigorous interface between architecture, landscape, and geology as her practice integrates natural topography and human-made systems, leading to experimentation with cutting-edge technologies. Such a process often results in unexpected and dynamic architectural forms.- Resnicow Schroeder Major Awards and Honors: 1982: Gold Medal Architectural Design, British Architecture for 59 Eaton Place, London2000: Honourable Member of the American Academy of Arts and Letters2002: Commander of the British Empire2004: Pritzker Architecture Prize2010, 2011: Stirling Prize, Royal Institute of British Architects (RIBA)2012: Order of the British Empire, Dames Commander of the Order of the British Empire (DBE) for services to Architecture2016: Royal Gold Medal, RIBA Learn More: Zaha Hadid was the first woman to win a Pritzker Architecture Prize. Learn more from Citation from the 2004 Pritzker Prize Jury.Zaha Hadid: Form in Motion by Kathryn B. Hiesinger (Philadelphia Museum of Art), Yale University Press, 2011 (catalog of commercial designs, made between 1995 and 2011)Zaha Hadid: Minimum Series by Margherita Guccione, 2010Zaha Hadid and Suprematism, Exhibition Catalog, 2012Zaha Hadid: Complete Works Source: Resnicow Schroeder biography, 2012 press release at resnicowschroeder.com/rsa/upload/PM/645_Filename_BIO%20-%20Zaha%20Hadid%20Oct%202012.pdf [accessed November 16, 2012]

Phd proposal Dissertation Example | Topics and Well Written Essays - 1500 words

Phd proposal - Dissertation Example There is enough scope for both qualitative and quantitative analyses on the topic. Academic research can help to explore the existing ideas and find out new implications. This research proposal, therefore, includes review of the relevant literature that inspired the selection of the topic. The proposal also focuses on the theory to which the research will relate, the methodology supposed to be used and original contribution to knowledge by the research. Research Question Leadership and management: Can transactional leadership theory add new dimensions to the future leadership practices? Research Objectives 1. Explore the concepts of transactional leadership theory. 2. Compare transformational and transactional leadership theories. 3. Find out innovative implications and methods for organisational learning and knowledge management 4. Combine the concepts of the theory with the futuristic idea of empowering leadership. 5. Find out innovative ways to apply the theory in today’s g lobal business environment with the help of case studies and academic research. Review of the Literature Transactional leadership theory has the potential to develop innovative models in the context of modern and future management practices. Some principal concepts entailed in the theory are: 1. People can perform optimally when the commands are clear and definite. 2. A justifiable system of punishment and reward motivates the workers. 3. Monitoring the subordinates is an imperative so that the business expectations are fulfilled. 4. Obedience should be ensured among the subordinates. (Bass, 1985) For a while, this sort of theoretical approach may appear to be based on the older conventions and beliefs. However, re-emergence of this theory in the sphere of modern management research can be observed in the works of Harman and Bitz (2008). According to them, studies considering knowledge management (which is critical in today’s information based global business environment) and leadership as rational variables are limited. Future practitioners may consider exploring the concepts of transactional leadership theory and its dimensions in relation to knowledge management. In this context, it must be mentioned that all leaders exhibit both transformational and transactional leadership attributes which can amply help in knowledge transfer, sharing and creation (Harman and Bitz, 2008). â€Å"Some observers view transactional leadership as the poorer version of transformational leadership, noting that the latter has a more noble or moral drive.† (Andrews, Connell and Wescott, 2010). However, this view can be strongly dismissed because â€Å"Where transactional leaders foster societies that are open and focused on public value creation, and where learning is accommodated by progressive authorizing mechanisms, agents will have space to explore new beliefs, pursue good struggles, experiment with latent abilities, and ultimately generate change that benefits others (even if there is no transformational leader appealing to higher ideals).† (Andrews, Connell and Wescott, 2010) Experimental and quasi-experimental studies conducted by Avolio and his associates show that researches on path-goal model and transactiona