Lease Financing

INTRODUCTION Financial Services basically mean all those kinds of services provided in financial terms where the essential commodity is money. These services include: leasing, hire purchase, consumer credit, investment banking, commercial banking, venture capital, insurance, credit rating, bill discounting, and mutual funds , stock broking, housing finance, vehicle finance, mortgages and car loans, factoring among other things. Various entities that provide these services are basically categorized into (a) Non –Banking Finance Companies b) Commercial Banks, and (c) Merchant Banks. Financial Services in India is too vast and varied too have evolved at one place and at one time. One of the main entities that offer financial services in India is Non-Banking Finance Companies. These NBFCs registered with Reserve Bank of India mainly perform fund based services to the customer. Fund based services of NBFCs include: leasing, hire-purchase and other asset based services whereas fee b ased services of NBFCs include bill discounting, portfolio management and other advisory services.LEASE FINANCING Leasing as financial service is a contractual agreement where the owner (lessor) of equipment transfers the right to use the equipment to the user (lessee) for an, agreed period of time in return for a rental. At the end of the lease period the asset reverts back to the lessor unless there is a provision for the renewal of the contract or there is a provision for the transfers of ownership to the lessee. If there is any such provision for transfer of ownership, the deal is treated as hire purchase.Therefore, a lease could be generally defined as – â€Å"A contract where a party being the owner (lessor) of an asset (leased asset) provides the asset for use by the lessee at a consideration (rentals), either fixed or dependent on any variables, for a certain period (lease period), either fixed or flexible, with an understanding that at the end of such period, the as set, subject to the embedded options of the lease, will be either returned to the lessor or disposed of as per the lessor's instructions†. HISTORY AND DEVELOPMENT OF LEASING The history of leasing dates back to 200BC when Sumerians leased goods.Romans had developed a full body law relating to lease for movable and im movable property. However the modern concept of leasing appeared for the first time in 1877 when the Bell Telephone Company began renting telephones in USA. In 1832, Cottrell and Leonard leased academic caps, grown and hoods. Subsequently, during 1930s the Railway Industry used leasing service for its rolling stock needs. In the post war period, the American Air Lines leased their jet engines for most of the new air crafts. This development ignited immediate popularity for the lease and generated growth of leasing industry.The concept of financial leasing was pioneered in India during 1973. The Firs Company was set up by the Chidambaram group in 1973 in Madras. Th e company undertook leasing of industrial equipment as its main activity. The Twentieth century Leasing Company Limited was established in 1979. By 1981, four finance companies joined the fray. The performance of First Leasing Company Limited and the Twentieth Century Leasing Company Limited motivated others to enter the leasing industry. In 1980s financial institutions made entry into leasing business.Industrial Credit and Investment Corporation was the first all India financial institution to offer leasing in 1983. Entry of commercial banks into leasing was facilitated by an amendment of Banking Regulation Act, 1949. State Bank of India was the first commercial bank to set up a leasing subsidiary, SBI capital market, in October 1986. Can Bank Financial Services Ltd. , BOB Financial Service Ltd. , and PNB Financial Services Limited followed suit. Industrial Finance Corporation’s Merchant Banking division started financing leasing companies as well as equipment leasing and fi nancial services.There was thus virtual explosion in the number of leasing companies rising to about 400 companies in 1990. In the subsequent years, the adverse trends in capital market and other factors led to a situation where apart from the institutional lessors; there were hardly 20 to 25 private leasing companies who were active in the field. The total volume of leasing business companies was Rs. 5000 cores in 1993 and it is expected to cross Rs. 10, 000 cores by March 1995. PARTIES OF LEASE FINANCING ELEMENTS IN LEASE STRUCTUREThis is an explanation of the elements in a lease – the parties, asset, rentals, residual value, etc. This section would also elaborate the unique features of a lease as different from a regular financing transaction. 1. The transaction: The transaction of lease of lease is generically an asset-renting transaction. What distinguishes a lease from a loan is that in the latter, what is lent out is money; in a lease, what is lent out is the asset. 2. Parties to a lease: There are two parties to a lease: the owner and the user, called the lessor and the lessee. The lessor is the person who owns the asset and gives it on lease.The lessee takes the asset on lease and uses it for the period of the lease. Any one can be a lessor, and any one can be a lessee, subject to usual conditions as to competence to contract, or holding of properties. Ownership is no pre-condition for Technically, in order to be a lessor, one does not have to own the asset: one has to have the right to use leasing: the asset. Thus, a lessee can be a lessor for a sub-lessee, unless the parent lessor has restricted the right to sub-lease. 3. The leased asset: The subject of a lease is the asset, article or property to be leased.The asset may be anything – an automobile, or aircraft, or machine, or consumer durable, or land, or building, or a factory. Only tangible assets can be leased – one cannot contemplate the leasing of the intangible assets, s ince one of the essential elements of a lease is handing over of possession, along with the right to use. Hence, intangible assets are assigned, whereas tangible assets may be leased. The concept of leasing will have the following limitations: 1. What cannot be owned cannot be leased. Thus, human resources cannot be â€Å"leased†.Leasing of immovable properties may have complications: 2. While lease of movable properties can be affected by mere delivery, immovable property is incapable of deliveries in physical sense. Most countries have specific laws relating to transactions in immovable properties: if such law provides a particular procedure for a lease of immovable or real estate, such procedure should be complied with. For example, in Anglo-Saxon legal systems (UK, Australia, India, Pakistan, etc. ), transactions in real estate are not valid unless they are effected by registered conveyance.This would apply to lease of land and buildings, and permanent attachments to land . 3. A lease is structurally a rental for the lease period: with the understanding that the asset will be returned to the lessor after the period. Thus, the asset must be capable of re-delivery: it must be durable (at least during the lease period), identifiable and severable. Leased asset is a necessary pre- condition: The existence of the leased asset is an essential element of a lease transaction – the asset must exist at the beginning of the lease, during the lease and at the end of the lease term.Non-existence of the asset, for whatever reason, will be fatal to the lease. 4. Lease period: The term of lease, or lease period, is the period for which the agreement of lease shall be in operation. As an essential element in a lease is redelivery of the asset by the lessee at the end of the lease period, it is necessary to have a certain period of lease. During this certain period, the lessee may be given a right of cancellation, and beyond this period, the lessee may be given a right of renewal, but essentially, a lease should not amount to a sale: that is, the asset being given permanently to the lessee.In financial leases, is common to differentiate between the primary lease period and the secondary lease period. The former would be the period over which the lessor intends recovering his investment; the latter intended to allow the lessee to exhaust a substantial part of the remaining asset value. The primary period is normally non-cancelable, and the secondary period is normally cancelable. 5. Lease rentals: The lease rentals represent the consideration for the lease transaction. This is what the Lessee pays to the Lessor.If it is a financial lease transaction, the rentals will simply be the recovery of the lessor's principal, and a certain rate of return on outstanding principal. In other words, the rentals can be seen as bundled principal repayment and interest. If it is an operating lease transaction, the rentals might include several elements dep ending upon the costs and risks borne by the Lessor, such as: * If the lessor is bearing any repairs, insurance, maintenance or operation Costs, them charges for such cost. Depreciation in the asset. * Interest on the lessor's investment. * Servicing charges or packaging charges for providing a package of the above service. 6. Residual value: Put simply, â€Å"residual value† means the value of the leased equipment at the end of the lease term. If the lease contains a buyout option with the lessee, residual value would mostly mean the value at which a lessee will be allowed to buy the equipment.If there is no embedded purchase option, residual value might mean the value that the lessee or someone else assures will be the minimum value of the equipment at the end of the lease term. This is typical in case of financial leases where the lessor cannot grant a buyout option to the lessee; for the lessor to protect himself against asset-based risks, he would take an assured residua l value commitment either from the lessee himself or from a third party, typically an insurance company.The residual value might also the value that the lessor assures to pay-back to the lessee in case the lessee returns the asset to the lessor: that is, it might be the value the lessor assures as the minimum value of the equipment. Such a lease, obviously an operating lease because the lessor is taking a risk on asset values, is a full payout lease, but the lessor agrees to refund the guaranteed value on the lessee returning the equipment at the end of the lease term. 7. End-of-term options: The options allowed to the lessee at the end of the primary lease period are called end-of-term options.Essentially, one, or more, of the following options will be given to the lessee at the end of the lease term: †¢Option to buy (buyout option) at a bargain price or nominal value (typical in a hire-purchase transaction), called bargain buyout option †¢Option to buy at a fair market v alue or fixed, but substantial value †¢Option to renew the lease at nominal rentals, called bargain renewal option †¢Option to renew the lease at fair market rentals or substantial rentals †¢Option to return the equipment In any lease, which option will be suitable depends on the nature of the lease transaction, as also the applicable regulations.For example, in a full payout financial lease, the lessor would have recovered the whole or substantially the whole of his investment during the primary lease period. Therefore, it is quite natural that the lessee should be allowed to exhaust the whole of the remaining value of the equipment. Regulation permitting, the lessor provide the lessee a bargain purchase option to allow the lessee to complete the purchase of the equipment. Buyout option may characterize the lease However, in many jurisdictions, it is the existence of such buyout option that demarcates between lease and as hire-purchase: hire-purchase transaction.If t he lessor is interested to structure the lease as a lease and not hire-purchase, he would be advised not to provide any buyout option, but Instead, to allow the lessee to renew the lease to continue the use of the asset. In essence, a renewal option achieves the same purpose as a purchase, but the lessor retains his ownership as also his reversionary interest in the equipment. Fair market value options, either for purchase of equipment, or for renewal, are typical of operating leases, but are really speaking no more than assuring to the lessee a continued use of the equipment.If equipment has to be bought at its prevailing market value, it can be bought from the market rather than from the lessor – therefore, the fair market value option carries no value for the lessee. 8. Upfront payments: Lessors may require one or more of the following upfront, that is, instant payments from a lessee: †¢Initial lease rental or initial hire or down payment †¢Advance lease rental à ¢â‚¬ ¢Security deposit †¢Initial fees Margins in leases are taken as initial rental: The initial lease rent or initial hire (the word hire is more common in case f hire-purchase transactions) is a surrogate for a margin or borrower contribution in case of loan transactions. Note that given the nature of a lease or hire-purchase as asset-renting transaction, it is not possible to expect a lessee's contribution to asset cost as such. Hence, the down payment or first lease rent serves the purpose of a margin. Between advance lease rent and initial lease rent – the difference is only technical. The whole of the initial lease rental is supposed to be appropriated to income on the date of its receipt, whereas advance rental is still an advance – normally an advance against the last few rentals.Therefore, the advance rental will remain as a deposit with the lessor to be adjusted against the last few rentals. Types of Lease Agreements Lease agreements are basically of two types. They are (a) Financial lease and (b) Operating lease. The other variations in lease agreements are (c) Sale and lease back (d) Leveraged leasing and (e) Direct leasing. FINANCIAL LEASE Long-term, non-cancellable lease contracts are known as financial leases. The essential point of financial lease agreement is that it contains a condition whereby the lessor agrees to transfer the title for the asset at the end of the lease period at a nominal cost.At lease it must give an option to the lessee to purchase the asset he has used at the expiry of the lease. Under this lease the lessor recovers 90% of the fair value of the asset as lease rentals and the lease period is 75% of the economic life of the asset. The lease agreement is irrevocable. Practically all the risks incidental to the asset ownership and all the benefits arising there from are transferred to the lessee who bears the cost of maintenance, insurance and repairs. Only title deeds remain with the lessor. Financial lea se is also known as ? apital lease‘. In India, financial leases are very popular with high-cost and high technology equipment OPERATING LEASE An operating lease stands in contrast to the financial lease in almost all aspects. This lease agreement gives to the lessee only a limited right to use the asset. The lessor is responsible for the upkeep and maintenance of the asset. The lessee is not given any uplift to purchase the asset at the end of the lease period. Normally the lease is for a short period and even otherwise is revocable at a short notice.Mines, Computers hardware, trucks and automobiles are found suitable for operating lease because the rate of obsolescence is very high in this kind of assets. Differentiation  Between  Operating  lease  and  Financial  Lease BASIS| FINANCIAL| OPERATING| Meaning| Long-term, non-cancellable lease contracts are known as financial Leases. | A Lease which is a short term one and one which does not cover the useful life on a n asset is called an operating lease. Form| In this type of lease, money is provideby lessor and the asset is purchaseform outside| The lessor is carrying on business of leasing and he holds such assets or is a manufacturer of such asset leases its asset| Maintenance| The lessee undertakes the maintenanceof the asset, paying insurance premiumetc. | In this type of lease, repairs and Maintenance is done by the lessor. | Risk ofObsolescence| In this types of lease, the lessee bearsthe risk obsolescence, so far as heUses the asset. In this types of lease, the lessor Bears the risk obsolescence during the period of the lease| Period of Lease| Period of lease – whole useful life ofAsset. | Period of lease – for short time. | Option to Buy| Option to buy for lessee. | Period of lease – for shot time| Accounting| EntriesAccording to the internationalaccounting standard-17, an entry is made in the balance sheet of the lessee on both the side| No entry is made in the bal ance sheet ofthe lessee under this type of lease,because lease is in the form of a hiredasset| 3. Sale and Lease back: It is a sub-part of finance lease.Under this, the owner of an asset sells the asset to a party (the buyer), who in turn leases back the same asset to the owner in consideration of lease rentals. However, under this arrangement, the assets are not physically exchanged but it all happens in records only. This is nothing but a paper transaction. Sale and lease back transaction is suitable for those assets, which are not subjected depreciation but appreciation, say land. The advantage of this method is that the lessee can satisfy himself completely regarding the quality of the asset and after possession of the asset convert the sale into a lease arrangement.The sale and lease back transaction can be expressed with the help of the following figure. ? The owner (Lessee) of the equipment sells it to a Leasing company (Lessor). ? The Lessor, leases the equipment back to the Lessee. ? Under this arrangement, the assets are not physically exchanged but it all happens in records only. ? The seller assumes the role of a lessee and the buyer assumes the role of a lessor. ? The seller gets the agreed selling price and the buyer gets the lease rentals. Two sets of cash flows occur: The lessee receives cash today from the sale. ? The lessee agrees to make periodic lease payments, thereby retaining the use of the asset. 4. Leveraged Lease: Under leveraged leasing arrangement, a third party is involved beside lessor and lessee. The lessor borrows a part of the purchase cost (say 80%) of the asset from the third party i. e. , lender and the asset so purchased is held as security against the loan. The lender is paid off from the lease rentals directly by the lessee and the surplus after meeting the claims of the lender goes to the lessor.The lessor, the owner of the asset is entitled to depreciation allowance associated with the asset. ? 3 parties to the transact ion. ? Lessor ( Equity investo ? Lender ? Lessee ? The Leasing company (Equity investor) ? buys the equipment, through substantial borrowing, and ? with full recourse to the Lessee and without recourse to it. ? The Lender obtains an assignment of the Lease and a first mortgage of the equipment. 5. Direct Lease ? Under direct leasing, a firm acquires the right to use an asset from the manufacturer directly. The ownership of the asset leased out remains with the manufacturer itself. ? Bipartite Lease – Equipment supplier-cum-Lessor and Lessee. ? Tripartite Lease (Sales-aid-Lease) – Equipment supplier, Lessor and Lessee. Single Investor Lease †¢Only two parties – Lessor and Lessee. †¢Leasing company (Lessor) funds the entire investment, having appropriate mix of Equity-cum-Debt Finance raised by the Lessor, is without recourse to the Lessee Risk Assessment of a Lessee The first step in structuring a lease is for the lessor to evaluate and then quantify th e risk inherent in the lease.Risk results from the degree of credit worthiness of the lessee combined with the collateral and residual value of the equipment to be leased. In general if the lessor deems a lease risky, any of the following variables might be affected: 1. Lease yield increased with all other factors except payment amount remaining constant 2. Additional advance payments required. 3. Security deposit required or increased. 4. Guaranteed residual required in lieu of a purchase option. 5. Lease term shortened. 6. Personal guarantee required. 7. Additional collateral beyond the leased equipment. . Increased late fees for delinquent rental payments (5% if 10 days late plus18% interest for e. g. ) 9. Security interest obtained to facilitate repossession 10. All insurable risk insured. Assignment of the risk inherent in a lease transaction is primarily a credit Worthiness decision. Many lessors as well as bankers or other moneylenders base their evaluation of risk on the 10 C’s. They are: ? Character ? Capacity ? Capital ? Credit ? Conditions ? Competition ? Collateral ? Cross-border ? Complexity ? Currency Lessor RequirementsOnce the lessor has assessed the risk and credit worthiness of the lessee and converted that into structuring variables, the lessor must look to its remaining needs and then to the requirements of the lessee. Meeting the sometimes conflicting needs of the lessor and lessee represents the more difficult part of lease structuring. Sometimes a lessor will insist on structuring an operating lease in order to retain tax benefits while at the same time the lessee desires a capital lease so it too may avail itself of the depreciation and tax benefits.Typical lessor requirements that might be at variance with lessee needs in lease structuring are: ? A yield sufficient to meet the lessor’s after-tax weighted cost of capital ? accounting for the lease on the lessor’s books as a capital lease. ? Tax structure of the agre ement as an operating lease to obtain tax benefits. ? a net lease rather than a full service lease ? Residual dependence- the lessor may want the equipment purchased by the lessee to avoid resale problems. On the other hand the lessor may want the equipment returned at the end of the lease due to its increased value.Advantages of ‘LEASING’ to ‘LESSEE’ There are several extolled advantages of acquiring capital assets on lease: (1) Saving of capital: Leasing covers the full cost of the equipment used in the business by providing 100% finance. The lessee is not to provide or pay any margin money as there is no down payment. In this way the saving in capital or financial resources can be used for other productive purposes e. g. purchase of inventories. (2) Flexibility and Convenience: The lease agreement can be tailor- made in respect of lease period and lease rentals according to the convenience and requirements of all lessees. 3) Planning Cash Flows: Leasing enables the lessee to plan its cash flows properly. The rentals can be paid out of the cash coming into the business from the use of the same assets. (4) Improvement In Liquidity: Leasing enables the lessee to improve their liquidity position by adopting the sale and lease back technique. (5) Shifting of Risk of Obsolescence: The lessee can shift the risk upon lessor by acquiring the use of asset rather than buying the asset. (6) Maintenance and Specialized Services: In case of special kind of lease arrangement, Lessee can avail specialized services of lessor for maintenance of asset leased.Although lessor charges higher rentals for providing such services, lessee’s overall administrative and service costs are reduced because of specialized services of the lessor. (7)Off-The-Balance-Sheet-Financing: Leasing provides â€Å"off balance sheet† financing for the lessee, in that the lease is recorded neither as an asset nor as a liability. Disadvantages of ‘LEASINGâ⠂¬â„¢ to ‘LESSEE’ (1) Higher Cost: The lease rental include a margin for the lessor as also the cost of risk of obsolescence, it is, thus regarded as a form of financing at higher cost. 2) Risk of being deprived the use of asset in case the leasing company winds up. (3) No Alteration In Asset: Lessee cannot make changes in asset as per his requirement. (4) Penalties On Termination Of Lease: The lessee has to pay penalties in case he has to terminate the lease before expiry o lease period. Advantages of ‘LEASING’ to ‘LESSOR’ (1) Higher profits: The lessor can get higher profits by leasing the asset. (2) Tax Benefits: The lessor being owner of asset can claim various tax benefits such as Depreciation. 3) Quick Returns: By leasing the asset, the Lessor can get quick returns than investing in other projects of long gestation period. Disadvantages of ‘LEASING’ to ‘LESSOR’ (1) High Risk of Obsolescence: The lessor has to bea r the risk of obsolescence as there are rapid technology changes. (2) Price Level Changes: In case of inflation, the prices of asset rises but the lease rentals remain fixed. (3) Long term Investment: Leasing requires the long term investment in purchase of an asset, and takes long Time to cover the cost of that assetHire purchase financing Hire purchase is a popular financing mechanism especially in certain sectors of Indian business such as he automobile sector. In hire purchase financing, there are three parties: the manufacturer, the hiree and the hirer. The hiree may be a manufacturer or a finance company. The manufacturer sells asset to the hiree who sells it to the hirer in exchange for the payment to be made over a specified period of time. A hire purchase agreement between the hirer and the hiree involves the following Three conditions: ?The owner of the asset (the hiree or the manufacturer) gives the Possession of the asset to the hirer with an understanding that the hirer will pay the agreed installments over a specified period of time. ? The ownership of the asset will transfer to the hirer on the payment of all installments. ? The hirer will have the option of terminating the agreement any time before the transfer of ownership of the asset. Thus for the hirer the hire purchase agreement is like a cancelable lease with a right to buy the asset.The hirer is required to show the hired asset on his balance sheet and is entitled to claim depreciation, although he does not own the asset until full payment has been made. The payment made by the hirer is divided into two parts: interest charges and repayment of principal. The hirer thus gets tax relief on interest paid and not the entire payment. How does hire purchase work? When a customer buys goods on hire purchase there are three parties involved ? The customer – who buys the goods ?The retailer – who sells the goods The finance company – who provides the finance You make the init ial agreement with the customer. Once the security agreement has been signed you are likely to assign the agreement (including your security interest in the goods) to the finance company. The customer makes payments to the finance company. Whether the security interest will revert back to you will depend on the terms and conditions of your agreement with the finance company. The normal tripartite hire purchase process between the dealer, customer and the finance company is as follows: ?When the business connection between the finance company and the dealer is first established a master agreement may be drawn up regulating the conditions upon which the finance company is prepared to consider the hire purchase transactions submitted by the dealer. ?After the customer has selected the goods he desires to acquire on hire purchase, the dealer arranges for him to complete the schedule to a form of hire purchase agreement. The larger finance companies have theirown standard forms of printe d agreement. In the schedule to the hire purchase agreement the dealer will insert the hirer’s name, address, occupation, and certain other details indicating his financial standing. It is also the dealer’ responsibility to insert details about the price and the installments payable. ? The intending hirer is often required to make a down payment as an indication of the customer’s financial reliability. The deposit or down payment is usually paid to the dealer at the time the proposal form is completed and is normally retained by him as a payment on account of the price to be paid to him by the finance company. The deposit having duly paid the dealer sends the appropriate set of documents to the finance company, requesting the company to purchase the designated goods from him. ?If the finance company decides to accept the transaction, the hire purchase agreement is signed by one of its officers and a copy dispatched to the hirer with instructions as to the mode o f the installments. At the same time as a copy is sent to the hirer, the finance company notifies the dealer that the proposal has been accepted and that it is in order for the dealer to deliver the goods, if he has not already done so. Upon notification of acceptance the dealer delivers the goods to thehirer and obtains the hirer’s signature to a form of delivery receipt constituting an acknowledgement by the hirer that he has received the goods in proper condition. ?The hirer makes payment of hire installment throughout the period of hire ? On completion of the hire term, the finance company issues to the dealer a completion certificate whereupon the hirer becomes the owner of the asset. Key features of Hire Purchase: ? Repayment schedules are flexible. An Offer to Hire can be arranged with no deposit or an amount that suits you. ? Balloon payments at the end of the term can be arranged. ? Esanda owns the goods until the final payment is made, at which point you gain automa tic ownership. ? the interest component of the rental and depreciation on the equipment are tax deductible, provided it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. DIFFERENE BETWEEN Hire  purchase AND Lease  financing Hire  purchase| Lease  financing| 1. Depreciation-  Ã‚  Ã‚  Hirer  Ã‚  Ã‚  is  Ã‚  Ã‚  entitled  Ã‚  Ã‚  toclaim  depreciation. 1. Depreciation-  lessee  is  not  entitledto  claim  depreciation. | 2. Payments-  Ã‚  hirer  Ã‚  can  Ã‚  charge  Ã‚  onlyinterest  Ã‚  Ã‚  Ã‚  Ã‚  portion  Ã‚  Ã‚  Ã‚  Ã‚  of  Ã‚  Ã‚  Ã‚  Ã‚  hire  Ã‚  Ã‚  Ã‚  Ã‚  purchasepayments  Ã‚  Ã‚  Ã‚  Ã‚  as  Ã‚  Ã‚  Ã‚  Ã‚  expenses  Ã‚  Ã‚  Ã‚  Ã‚  for  Ã‚  Ã‚  Ã‚  Ã‚  taxcomputation. | 2. Payments-  Ã‚  lessee  Ã‚  can  Ã‚  charge  Ã‚  theentire  lease  payments  as  expenses  fortax  computation. | 3. Salvage  Ã‚  value-  Ã‚  Once  Ã‚  the  Ã‚  hirer  Ã‚  haspaid  Ã‚  all  Ã‚  installments;  Ã‚  he  Ã‚  becomes  Ã‚  theowner  Ã‚  of  Ã‚  the  Ã‚  asset  Ã‚  and  Ã‚  can  Ã‚  claim  Ã‚  itssalvage  value. | 3. Salvage  Ã‚  value-  Ã‚  Lessee  Ã‚  does  Ã‚  notbecome  Ã‚  Ã‚  Ã‚  the  Ã‚  Ã‚  Ã‚  owner  Ã‚  Ã‚  Ã‚  of  Ã‚  Ã‚  Ã‚  the asset. Therefore  Ã‚  he  Ã‚  has  Ã‚  no  Ã‚  claim  Ã‚  over  Ã‚  theasset’s  salvage  value. Principle of hire purchase 1. Consumer installment credit The ground for distinction here is whether the goods are producer goods or consumer goods. Finance provided to consumers for acquisition of consumer durables is called installment credit. Installment credit for consumers is usually extended in one of the following forms: (a) Personal loan: this is made directly by the lending a dealer may introduce company through the consumer. The loan may be unsecured or secured. E. g. by a mortgage on the borrower’s property. b) Hire purchase or conditional sale: here funds are advanced for the acquisition of particular goods, which the customer take under a hire-purchase or conditional sale agreement, acquiring title on completion of payment. Where title is reserved in this way the agreement usually used is a hire purchase agreement, though some companies use conditional sale agreements. Retail hire purchase agreements take three different forms namely ? Direct collection- the dealer sells the goods to the finance house, which lets them out on hire purchase to the customer.This is the most common form of installment financing and is known in the trade as ‘direct collection’ because the installments are collected under a hire-purchase agreement concluded direct between the finance house and the hirer, as opposed to an agreement between the dealer and the hirer which is later discounted under block-discounting agreement. Usually the finance house collects the installments itself from the hirer, and the dealer d rops out of the transaction. Such transactions are called ‘non-recourse’ for the dealer. ? Agency collection: this is a variant of direct collection.As before the dealer sells goods to the finance company but in this case signs the agreement himself as undisclosed agent for the finance company and as such agent collects installments on behalf of the company, usually in return for appropriate commission. Because the agreements are in practice handled in blocks, this form of hire purchase is also misleadingly referred to as agency block discounting, though it is not a form of block discounting at all since there is no assignment of the agreement by the dealer to the finance company and the dealer is acting merely as an agent. Block discounting: in this case the dealer enters into the hire purchase agreement direct with the customer and later discounts it to the finance company. Agreements are usually discounted in blocks at a time; hence it is called block discounting. On ce the agreement is discounted the finance company becomes entitled to receive rentals from the hirer concerned but quite commonly, in order not to disturb the business relationship existing between the dealer and his customer, the dealer is made responsible for collecting the installments and remitting these to the finance company. c) Credit sale: here the title passes to the customer from the outset. Again the agreement may be with the finance house from the beginning or it may be entered into between the dealer and customer direct and later assigned by the dealer to the finance house. (d) Rental: the renting of domestic goods is fast developing as a form of installment credit. It is increasingly the practice and to a very larger extent in the U. S. , of finance houses to enter direct into rental agreements relating to domestic goods. DOCCUMENTS IN HIRE PURCHASEAll the parties must sign a hire purchase agreement and the agreement, among other things, must specify the date when the hiring commences, the number of installments, the amount of each installment, the time for the payment of each installment, the description of the goods and where the goods are kept. Note that the agreement must be in writing. An oral agreement is not a valid hire purchase agreement. Benefits of Hire Purchase ? Retention of cash flow ? Regular Payments ? Existing credit lines preserved ? Cost of acquisition spread overtime ? Repayment schedules can be structured to suit your cash flow. You can obtain the use of goods for minimal cash outlay, so working capital is not significantly affected. ? You may be able to make use of the taxation benefits of hiring. The Hire Purchase Agreement When you buy goods on hire purchase, you and the seller sign a written agreement. ? How many agreements will be made ? How often to pay ? The amount to pay ? When to pay ? Where to pay ? The name and address of the seller Other information in the hire purchase agreement ? What happens if payment is not made as agreed ? The right to repossess goods if one fails to make payments on time ?One’s obligation to keep the goods safe and in good order ? How to return the goods if one cannot pay. This information may be in the fine print on the back of the agreement. If any of this information is missing from the agreement one may not be liable for some of the cost of credit. The agreement cannot be enforced until the required information has been supplied. Lease Financing in Bangladesh: Bangladesh is a developing country, but the national calamity and political unrest sluggish the industrial growth as well as economic growth of the country.In spites of all these hindrance the growth of leasing companies is a significant indication of our bright prospects. Lease financing was first introduced in Bangladesh in the early 1980s. Industrial Development Leasing Company of Bangladesh Ltd. (IDLC), the first leasing company of the country, was established in 1986 under the regulatory framewo rk of BANGLADESH BANK. It was a joint venture of the Industrial Promotion and Development Company of Bangladesh Ltd. (IPDC), International Finance Corporation, and Korea Development Leasing Corporation.Another leasing firm, the UNITED LEASING COMPANY Ltd. started its operations in 1989. The number of leasing companies grew quickly after 1994 and by the year 2000, rose to16. The leasing business became competitive with the increase in the number of companies and wider distribution of their market share. There are, however, 6 other companies conducting leasing business in the country, although they do not use the word leasing in their names. In terms of money value, the leasing business in Bangladesh increased from Tk 41. 44 million in 1988 to Tk 3. 6 billion in 2000. The leasing companies now operating in the country are Industrial Development Leasing Company of Bangladesh, United Leasing Company, GSP Finance Company (Bangladesh), Uttara Finance and Investments, Bay Leasing and Inves tment, Phoenix Leasing Company, Prime Finance and Investment, International Leasing and Financial Services, Union Capital, Vanik Bangladesh, Peoples Leasing and Financial Services, Bangladesh Industrial Finance Company, UAE-Bangladesh Investment Company, Bangladesh Finance and Investment Company, and First Lease International.Lease financing, as organized in Bangladesh, operates with the following objectives: (a) to assist the development and promotion of productive enterprise by providing equipment lease financing and related services; (b) to assist in balancing, modernization, replacement and expansion of existing enterprises; (c) to extend financial support to small and medium scale enterprises; (d) to provide finance for various agriculture equipment; and (e) To activate the capital market byOperating as managers to the issue, underwriters, or portfolio managers. The functions of a lease business include lease financing, short-term financing, house building financing, and mercha nt banking and corporate financing. In this last group of functions, the leasing business in Bangladesh moved away from regular leasing activities and is now involved in stock-market related activities such as issue management, underwriting, trust management, private placement, portfolio management, and mutual fund operation.Broad capital market operations of the lease financing institutions include bridge financing, corporate counseling, mergers and acquisition, capital restructuring, financial engineering, and lease syndication. Prominent among the sectors of the economy that now receive lease financing services are textiles, apparels and accessories, transport, construction and engineering, paper and printing, pharmaceuticals, food and beverage, chemicals, agro-based industries, telecommunications, and leather and leather products.Commercial banks and development finance institutions (DFIs) have been the traditional lending institutions in Bangladesh. In fact, the concept of leas e financing is a relatively new one in the country. Initially, leasing companies had to adopt the role of educators to make Bangladeshi entrepreneurs aware of the benefits of leasing. However, as DFIs demonstrated poor recovery and fund recycling performances, leasing got the opportunity to develop as an alternative source of funding.A few other factors also contributed to development of the leasing business in the country. For example, the commercial banks have been keener in providing trade financing and FOREIGN EXCHANGE dealings rather than long-term loans because of the risks involved and their longer gestation period. The selection of lease proposals is relatively free from extraneous pressure and is subject to a quality level appraisal. Under lease agreements in the private sector, projects are sanctioned and implemented expeditiously, resulting in benefits in time and cost savings.Private leasing companies also attract clients by providing relatively better services. The down payments in leasing are not high and the gestation period is low. Also, in case of lease financing, incidental costs incurred in the process of import clearing, installation, and commercial production are capitalized, which substantially reduce the initial investment. Leasing companies, however, face some problems in conducting their business in the country. The relatively slow growth of the demand side compared to the fast growth of the lease business is one such problem.This leads many leasing companies to operate in partial capacity. The culture of loan default that prevails in the country is also a deterrent. Leasing companies often find it difficult to raise funds through short- or long-term borrowing from money and capital markets. They are hard pressed to deal with the financial assets because of the present laws of the country, which are also not fully enforceable. Leasing business is gaining increased importance in the economy of Bangladesh with its gradual transformation from an agrarian to industrial one.The government periodically revises the trade and industrial policy to create a liberal business environment both for domestic and foreign investment. Increased investment in the energy sector as well as in power, transport, telecommunications, water and sanitation, and safe disposal of wastes is expected to bring further opportunities for leasing industries. The traditional sources of funds of our country in the financial market are – the Commercial Banks, DFIs and the stock exchange. But these sources are not enough to effectively meet the growing demand of capital investments for industrialization of the country.And the backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. At present there are 11 leasing companies operating there business. The name of the leasing companies: 1. Industrial Development Leasing Company of Bangladesh Ltd. IDLC 2. United Leasing Company 3. Uttara Finance & Investment company Ltd. 4. Phonenix Leasing Company Ltd 5. Bay leasing & Investment Ltd. 6. International Leasing & Finance Company Ltd. 7. GSP Finance company (BD) Ltd. 8. Prime Finance & Investment Ltd. 9. Vonike 0. Prime Bank Ltd. COMPANIES AT A GLANCE IDLC: Industrial Development Leasing Company of Bangladesh limited is established in 1985 as a joint venture public Limited Company with the multinational collaboration of International Development Finance Institution ,Commercial Banks, Insurance Company and Foreign Leasing Corporation. During the past fourteen years of its operation, IDLC has played a catalytic role in providing alternative source of term and capital asset financing to the private sector.IDLC’s primary focus has been in the area of 3-5 year term financial leasing with particular emphasis on balancing, modernization, replacement and expansion (BMRE) of existing units. With its pioneering vision IDLC has not only established lease financing as an ef ficient and quality financial service but also laid the foundation for the creation of ten other leasing companies. Today lease financing has grown to be an industry of Taka 3. 5 billion per annum.IDLC and its institutional shareholders have upheld their commitment towards the development of the financial service sector by offering high quality service to local entrepreneurs. To ensure steady and long term growth as well as to sharpen its competitive edge in a changing and challenging business environment. Short-term Finance which have broadened its customer base and are expected to contribute significantly to IDLC’s growth and profitability. IDLC established its first branch office in Chittagong in 1990. In January 1993, the company offered its shares to the public.In terms of market capitalization, it is ranked among the top 20 listed companies in both Dhaka and Chittagong Stock Exchange. Services offered by IDLC: Lease Financing: IDLC provides lease financing for all types of manufacturing and service equipment including vehicle, computer and medical equipment to all the major industrial and service sector. Short Term Finance: With an objective to provide solution to working capital problems, STF Unit provides different financial services to clients.Emphasis is given to identifying clients’ actual need and in providing customized service to cater them. House Financing: IDLC extends loan facilities to Individuals for purchase of apartments, Business houses professionals for purchase of commercial spaces (office space chamber display center etc. ) Bangladesh Finance and Investment Company Limited (BFICL): A non-banking finance company incorporated in Bangladesh on 10 May 1999 as a public limited company. It began business on 15 February 2000. It’s authorized and paid up capital are Tk 500 million and Tk 23 million respectively.The capital is divided into ordinary shares of Tk 100 each. Major business objectives of the company are carrying out direct trade, term and working capital financing, equity participation, housing finance, fund management,financial and industrial counseling and merchant banking activities of all types. Main sectors in which the company has targeted to lease and invest are transport, electric and electronic goods (including computers), leather, textile, printing, marine vehicles and equipment, steel and engineering, fishing boats and trawlers, medical equipment and small scale industries.BFICL purchases property in its own name and pays 60% to 70% of the total price of a particular property to its supplier. After accumulating and adding all other elevant/ incidental costs with the original purchase price such as transportation, insurance premium, and costs related to letter of credit, and the rent or profit/income margin, the company determines the lease price of the property. Then it signs lease contracts with the lessee, generally for two to four years, and hands over the properties to him f or use.The lease contracts require security or collateral from the lessee in various forms. Lease installments, payable generally on a monthly basis, are determined on the basis of the lease price of properties and other relevant factors. Lease contracts are renewed each year. On the expiry of the lease periods/contracts, the lessee can gain the ownership of the leased property/equipment upon payment of 5% of the transfer value of the equipment as salvage value of the property. Alternatively, the ownership and physical possession of the property goes back to the lessor.BFICL provides lease facilities against one or more of the following securities: (a) bank guarantee/insurance guarantee; (b) easily AM-HIFC Ahsania-Malyasia Hajj Investment and Finance Company Limited (AM-HIFC) is a Sharia-based non-bank financial institution licenced by Bangladesh Bank under the Financial Institution Act 1993. The company follows the model of Malaysia`s pilgrims fund and management institution, popul arly known as â€Å"Tabung Hajj† which focuses on mobilizing savings from would-be pilgrims who intend to perform Hajj in the Holy Land.It invests its excess fund in Sharia-based activities. As a Sharia-based financial institution, adherence to Sharia is of paramount importance to us and this is embodied in out Vision and Mission statement. Bangladesh Industrial Finance Company Bangladesh Industrial Finance Company Limited (BIFC) is a joint venture Leasing and Financing Company, promoted by a group of' Foreign and Local Sponsors. Incorporated as a Public Limited Company in August 1996 and icensed by Bangladesh Bank as a Non-Bank Financial Institution in February 1998, BIFC has been rendering innovative, customized, prompt and cost effective financial solutions to the socio-economic growth of the country. Delta Brac Housing Finance Delta Brac Housing Finance Corporation Ltd. (DBH) is the pioneer, the largest and the specialist Housing Finance Institution in the private sector of the country. After commencing operation in the early 1997, the company has registered commendable growth in creating home ownership among more than 7,500 families in Dhaka and other major cities of the country.At the same time, the company has been playing an active role in promoting the real estate sector to the large cross sections of prospective clients who had but yet unfulfilled dream of owning a sweet home. Fareast Finance ; Investment Limited Fareast Finance ; Investment Limited-a leasing and financing company started its business in the early 2002 to serve its clients with high ethical standards and accountability. Fareast believes that each of its activities must provide satisfaction to its customers and will start progress for them.Financial Management Reform Programme FMRP is a five-year programme jointly financed by the UK Department for International Development (DFID) and the Royal Netherlands Embassy (RNE), and executed by the Ministry of Finance, Government of Ban gladesh. Grameen Bank Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity.GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of Grameen Bank and its Managing Director, reasoned that if financial resources an be made available to the poor people on terms and conditions that are appropriate and reasonable, these millions of small people with their millions of small pursuits can add up to create the biggest development wonder. GSP Finance Company GSP Finance Company (Bangladesh) Limited (GSPB) was incorporated in Dhaka , Bangladesh on 29th October 1995 with the Registrar of Joint Stock Companies and Firms. It started its commercial operation from 17th April 1996 under licence granted by Bangladesh Bank (Central Bank) in accordance with the Financial Institutions Act of 1993. IDCOLInfrastructure Development Company Limited – IDCOL's mission is to promote economic development in Bangladesh by encouraging private sector investment in infrastructure projects. IDLC of Bangladesh Ltd IDLC is a multiproduct financial institution, established in 1985 with the collaboration of reputed international development agencies such as: Korean Development Leasing Corporation (KDLC), South Korea, Kookmin Bank, South Korea, International Finance Corporation (IFC) of the World Bank Group, Aga Khan Fund for Economic Development (AKFED), German Investment and Development Company (DEG).Leasing, initiated by IDLC, today, plays a vital role in the mid term financing of industrial and service enterprises. Over the ye ars, IDLC has served the diverse needs of its customers with product offerings ranging from Home Loans for Individuals to Factoring and Work Order Financing for small and medium enterprises (SMEs) and services such as: Lease Financing, Syndication, Corporate Advisory, Bridge Financing, Underwriting, Issue Management, Private Placement of Stocks and Debt Instruments for Corporate Customers. IIDFCIndustrial and Infrastructure Development Finance Company (IIDFC) Limited is a Development Financial Institution, promoted by wide array of financial institutions like ten commercial banks, from both the public and private sectors, three insurance companies and Investment Corporation of Bangladesh (ICB). Union Capital Limited UNION CAPITAL LIMITED is one of the largest investment banks and fastest growing financial institutions in Bangladesh. Previously, it was known as Peregrine Bangladesh which had its origins and businesses rooted in Hong Kong.Out of the local office of the erstwhile Pereg rine Capital Limited of Hong Kong, Union Capital Limited, Dhaka emerged in early 1998 as a Bangladesh-based company led by a group of the foremost entrepreneurs of the country. Union Capital, within a short span of time, has proved its worth as a most forward-working vigorous organization achieving success with its wide international network and strong local base Leasing Law in Bangladesh Leasing is an asset renting activity, and is therefore, governed by common law. The Contracts Act 1872 applies to contracts of leases.Sections 148 to 171 of the Contracts Act cover provisions relating to bailment. As these provisions are identical to those applicable under English law, the chapter devoted to general law of leasing adequately covers the law in Bangladesh as well. It may be noted that the general law of contracts is limited to bailments of â€Å"goods†. â€Å"Goods† include movable property only – immovable property is not covered by common law. As it the common feature of all Anglo-Saxon legal systems, transactions in immovable properties are covered by a separate system of laws.Taxation of Leases in Bangladesh: The taxation system in Bangladesh has been a subject matter of criticism over a last few years. The system is characterized by a large number of incentives, tax holidays and concessions as a result of which the share of corporate taxation to total tax collection by the Govt. has come down drastically over the past few years. Taxes on corporate profits, of both domestically and foreign owned companies amounts insignificant as a 0. 5% of GDP in Bangladesh, compared with more than 6% in developed nations. The main reason cited for this low contribution is the tax incentives granted by the Govt. Which are very liberal as compared to its counterpart countries. It is probably with tax reform in view that the Govt carried out certain reforms in depreciation laws in Budget 1998-99. Among other provisions, the important change that would ha ve a far reaching effect on leasing companies is the change in

Peaceful Islam Essay

The strategy outlined in â€Å"Fighting the Long War† is a good one. There are, of course, other options. One is to flee and do nothing more than we have already done. Yet, as the presentation’s authors suggest, this would almost certainly lead to the ruin of America. Stopping action now will not clear away centuries of hate and rage, nor will it erase the religious and political goals of a long committed enemy. Those who are less patient and less willing to lose men to a war, might suggested a shorter war, brought about by greater use of force. The military has been tied back and prevented from executing its full power in the Middle East. The United States could, if it wished, use its nuclear weapons against the enemy. Yet it does not. This may be a good thing. Using nuclear weapons would be unquestionably risky. Other countries which boast nuclear technologies might be tempted to retaliate, which could lead to the eventual destruction of American cities. It could also lead to chaos with unpredictable outcomes. Therefore, the best strategy seems to be to follow the long war approach of the presenters. Perhaps the most important point made in the presentation, was that Americans need to understand the nature and necessity of a long war and that they need to be able to trust their leaders. The main objection to involvement in Iraq was not that Sadam Hussein did not need to be stopped – it was that President Bush went in with the wrong motives. Whether the president’s motives were benevolent or malevolent, much of the American public distrusted him and this hurt the war effort substantially. Also of great import is the section on promoting the good points of peaceful Islam. Criticizing a person’s religion often triggers hostility. Those who have already been provoked by maltreatment by non-Muslims are much more likely to be converted violent extremism than those who have lived peacefully among their peers for many years. Promoting Islam’s peaceful movements, then, is a good counter-measure. Likewise, promoting assistance in rebuilding and democratizing Iraq is an excellent idea. Japan has certainly come a long way. It would be nice if Iraq could too.

Why the Early Middle Ages are often referred to as the Dark Ages Essay

Why the Early Middle Ages are often referred to as the Dark Ages - Essay Example In spiritual terms Dark Ages were a period of birth of a new type of personality, a new mentality, both individual and collective. In times when the collection of earthly treasures became impossible, people, following the precepts of Christ, began to collect the treasures of heaven. The Christian religion was gave the support for people and helped not to lose heart and humbly endure all the trials, which he met. Hunger, barbarian attacks, diseases - it seemed that Christian God was testing people in order to prepare believers for promised in the Gospel, "the millennial kingdom of Christ." Philosophers were analyzing not the nature of man - a transient phenomenon, but the divine nature. Theology, which flourished in the High Middle Ages, took its beginning in the monasteries of the Dark Ages. All knowledge about the world of medieval man was based on the knowledge of God.During the Dark Ages the decline of common knowledge took place, and existed science survived only in monasteries, as only Church succeed in preserving of ancient and Biblical writings. So it was assumed, that no-one was literate properly. But not everything was as worse as it seems to be, and in the 19th century a number of sources were found, which proved the existence of culture development. As the Church was powerful, it did its best to promote learning and literacy. In addition, European people were adopting and transforming such legacy of the Roman Empire as Roman law, administrative and taxation practices, literature, trade and economy and so on.

Methods of marketing research Essay Example | Topics and Well Written Essays - 1000 words

Methods of marketing research - Essay Example This differentiate it from Quantitative Research in which a large group of respondents provide data that are statistically analyzed. Qualitative research methods are used primarily as a prelude to quantitative research. They are used to define a problem, generate hypotheses, identify determinants, and develop quantitative research designs. They are expensive and slow. Because of the low number of respondents involved, these exploratory research methods cannot be used to generalize to the whole population. They are however, very valuable for exploring an issue and are used by almost all researchers. Quantitative research is an overall presentation of a research. It defines the problem, the research design and the method of data collection and most of all the data is interpreted using the various statistical tools like The data collected is interpreted and presented using charts, graphs and diagrams to be easily understood. The quantitative technique is more accurate because it involves a large number of sample compared to the qualitative technique. As qualitative technique is a proceeding event to the quantitative technique, it is used to define a problem, generate hypothesis identify determinants, and devel... They are expensive and slow. Because of the low number of respondents involved, these exploratory research methods cannot be used to generalize to the whole population. They are however, very valuable for exploring an issue and are used by almost all researchers. Examples: include focus groups, in-depth interviews, and projective techniques. Why Quantitative is more important in marketing research Quantitative research is an overall presentation of a research. It defines the problem, the research design and the method of data collection and most of all the data is interpreted using the various statistical tools like Parametric tests of a single sample: t test, z test. Parametric tests of two independent samples: two-group t test, z test. Parametric tests of two independent samples: two-group t test, z test Nominal/ordinal level test of a single sample: chi-square, Kolmogorov-Smirnov one sample test, runs test, binomial test and many more The data collected is interpreted and presented using charts, graphs and diagrams to be easily understood. The quantitative technique is more accurate because it involves a large number of sample compared to the qualitative technique. As qualitative technique is a proceeding event to the quantitative technique, it is used to define a problem, generate hypothesis identify determinants, and develop quantitative research designs, and qualitative research design cannot be used to generalize the whole population as it involves a less number of respondents. Example : If pepsi wants to launch its soft drink in a country and the manager wants to research that whether his soft drink (pepsi) would be suitable and profitable to launch in that country, then

Personality and Style Essay Example | Topics and Well Written Essays - 250 words

Personality and Style - Essay Example At work, this is one of the most important characteristics that the management or employers are looking for an employee or member of a team and a leader. My boss will definitely keep me at work because I am the type of person who will not let him down when it comes to my responsibilities and duties. I can be a good leader and the best follower too. I am the type of person who values equilibrium and stability. Thus a person like me will definitely earn more friends and maintain good relationship to colleagues. On the other hand, I cannot please all the people with who I am and what types of personality I have. Being conventional and uncomfortable with change will definitely make it difficult to cope up with other people. With the fast changes that we are currently experiencing in our society, someone who is as steady as I am will surely earn more opponents and critics if not enemies. I can be pessimistic with changes happening in the society because I am someone who just wants to stay and value what is structured and what is customary and traditional. I am not a fan of change because I see it as something destructive of stability and equilibrium which I value the most. A person like me is a person who is very cautious about everything.

Forensic Archaeology Assignment Example | Topics and Well Written Essays - 2250 words

Forensic Archaeology - Assignment Example Popular but somewhat not realistic perception and understanding of forensic science has brought much awareness in public and government and has influenced the court system, that it is now called â€Å"CSI effect† (Toobin, 2007). Forensic archaeology, defined and considered a specific emerging field, consists of tools, techniques and methods, developed for archaeological research purposes, to assist legal investigations. Forensic archaeologists are usually the members of faculty of archaeology deployed to work in close coordination with expert search teams, forensic entomologists, forensic botanists and forensic pathologists to find and investigate buried evidence at crime scenes. Forensic archaeology assists in investigating genocide, war crimes, crimes against humanity, mass disaster victim recovery, and repatriation of war dead (Hunter & Cox, 2005). Forensic archaeology helps to discover and solve the events pertaining to a specific crime scene or disposal site. Generally, each crime scene brings its own unique set of questions requiring answers to unveil the truth as the circumstances of each investigation differ considerably. The questions may include but not limited to the way grave was dug, identities of buried persons, during for which bodies remained buried and presence of any other material in graves that may assist investigations. Constrained by limitation of time and opportunities to access the evidence site, forensic archaeologists devise specific strategies and employ appropriate techniques or a series of methods to optimize the evidence for search and recovery of truth. Thus forensic archaeologist strive to identify the understand the events prior to and around the death and burial, method of death and tools used for burial, and thus help to identify the party or parties involved in crime (Miller, 2010). Usefulness o f Involving Archaeologists Forensic archaeology has several key roles in international war crime investigations including searching, locating and confirming the site such as mass graves, surface scatters and execution sites; excavation, recording, retrieval, recovery, preservation and analysis of evidence. These roles provide sufficient information to determine the existence or refute of a crime, identification of the human remains, their ethnicity, culture, geographical origin, time frame of death and reconstruction of crime scene, the actions of perpetrator and perpetrator’s identity. Such information helps in successful criminal prosecution and identification of victims (Oxenham, 2008). Repatriation of missing and identification of dead in a genocide or war has been the main focus of such forensic archaeological investigations taken place from a humanitarian view. It is worth mentioning that the evidence, which was initially thought to be of humanitarian interest, is now u sed to assist criminal war investigations. In such investigations, the extent to which evidence is required may not be established at initial stages, thus resulting in maximum evidence recovery, high standards of evidence integrity and ability to preserve evidence are emphasized to mitigate any associated risks. Maximum evidence recovery helps to identify victims, reconstruct crime scene and corroborate the witness statements. There are many benefits of collection and analysis of evidence including recovery of remains for proper burial, identification of remains, repatriation of missing, human rights and deterrence to similar incidences. Different artifacts retrieved from crime scene provide information on past events surrounding

Process Improvement Plan Essay Example | Topics and Well Written Essays - 1000 words

Process Improvement Plan - Essay Example Control Chart for Laundry Process Graph between Sorting Time and Days days Control Chart in the above graph between sorting time and days of the week reflects declining trend of time in laundry over the days. Descriptive Statistics of the Laundry Plotting of days on x-axis and sorting time in seconds on the vertical axis is the basis of control charts. CL in the above graph shows the control limit whereas UCL denotes Upper CL and LCL refers to Lower CL within the range of 3?. PIP Steps for Laundry Process through SPC SPC provides statistical measurement of laundry process to apply controls in planning of the laundry process from analytics of data. PDSA cycle consists of the step to apply process improvement plan: (PDSA Cycle, 2007) Plan Variation of cloths distribution in drawer causes the variation in timing of sorting as evident in times measured for sorting in different weeks. Manual measurement of sorting also causes a change in sorting time as it is always approximate. Type of c loth changes in summer or winter season affects the processing time of sorting cloths. Do Segregation of cloths in bins through quick-sorter can minimize the sorting time. It will improve consistency of timings. I will apply appropriate labels on drawers to put clothes in the right bin. Applying labels further assist in arranging cloths in bins and reducing sorting time if clothes are labeled in categories of denim, cotton, delicate, etc. If I can place right cloths in the right category, it will reduce effort of sorting at the time of laundry. Study Study of laundry process for the weeks of observation provides steps of improvement. Control chart further provide insight regarding the impact of changes in laundry process. I study process and impact of changes across six weeks to apply corrective and preventive measurements to optimize the process of laundry for clean clothes in minimum time. Act Chase, Jacobs, & Aquilano (2006) suggest targeting for the next bottleneck after standar dizing the process through reduction in bottleneck. Seasonal Factors affecting the Laundry Process Seasonal factors affect the sorting time of the laundry process as people wear different kind of cloths in winter, summer, or rain. Woolen cloths consume more time in operation of laundry than cotton cloths. Winter season also reduce agility of person that can indirectly affect the timing of laundry. Control Chart Excel is a useful tool for control chart that assists in data driven improvement through applying controls on the process. DMAIC (Define, measurement, analysis, improvement, and control) provides steps for improvement of quality (Chase, Jacobs, & Aquilano, 2006). The six week process of data collection and control measurement of laundry process sets the plan for continuous improvement across the week. Control Limits Aslup and Watson (1993) define the control limit of quality through application of empirical rules between the mean and standard deviation of collected data. The CL refers to mean of the data in the control chart and 3? deviation measures the upper and lower control limit of the chart (Chase, Jacobs, & Aquilano, 2006). Statistical distribution of data dispersion for normal population is shown in the following figure: (Chase, Jacobs, & Aquilano, 2006) 90% Confidence Interval (CI) follows the mathematical formula of ? - z*?/vn to ? + z*?/vn in which significant level is 0.10. Critical value of z for a significant level 0.10 = 1.645

Children's Literature Critique Essay Example | Topics and Well Written Essays - 1250 words

Children's Literature Critique - Essay Example In the first part of the book, the story revolves around Pacman-looking circle, searching for the lost pizza-like piece which completes its being. There is no indication whether Pacman-looking circle is a male or female. Pacman-looking circle looks for the missing pizza-like piece everywhere, asking people it meets along the way if they have seen the missing piece or if they can give directions leading to where the missing piece is. It looks everyone and does not give up with the search since it has high hopes that it was going to find the missing piece. In his search, it sings a melancholic song which it hums to show how sad it was for not finding its missing piece. The song, â€Å"Oh, I am looking for my missing piece; I am looking for my missing piece†¦Ã¢â‚¬  (Silverstein, 1976) makes readers feel the pain the Pacman-looking circle has. Pacman-looking circle finds several pieces a long its way. It tries if they can fit in the space only to be disappointed that they cannot. Some fitThis does not discourage it since it goes on with its search with hopes that it would find the missing piece. The first part of the series comes to an end when Pacman-looking circle finally finds its missing piece. It is intriguing to note that Pacman-looking circle fits the missing piece only to realize that it cannot put up with it. ... Silverstein demonstrates that the missing piece had not come to terms with Pacman-looking circle’s realization that one should be happy with the way they are. It was searching for a piece to make it complete. However, upon meeting the big O, the missing piece is made to understand the fulfillment one gets by understanding one-self. The big O mentors the missing piece and makes it understand that there is no need to look for another piece to make it complete. The content in The Missing Piece series is suitable for young children. This is because at this age, most children normally face challenges of self-acceptance brought about by some of the imperfections they may have. For instance, an albino child may be alienated from his peers because he or she feels out of place. In as much as being an albino is not his or her wish; the child should be made aware that the condition should not be a hindrance to his or her communication and interaction with others. Therefore, by reading th e book, children will get an understanding of how they are. Additionally, will learn to appreciate and love themselves despite the imperfections they have. The book also has basic illustrations and simple phrases that catch the attention of children. For instance, while describing the missing piece’s movement, Silverstein (1976) asserts, â€Å"the missing piece was bumping instead of flopping, and then it was bouncing instead of bumping.† Such illustrations arouse the interests of young children. The front cover of the book also has the picture of the Pacman-looking circle, and it is most certain that children who have a glimpse of it on bookstore shelves would request

Meaning of Life Essay Example for Free

Meaning of Life Essay Personhood Chart This chart contains a grid for different philosophical anthropologies that answer the question of personhood. Complete the following chart in the context of defining what it means to be human according to Christianity, Materialism, and your own Personal View. Refer to the assigned reading for explanation of characteristics listed on the left. Christianity Materialism Personal View Relational God created human beings to live in community. When people lose that sense of love and belonging, they lose their meaning and purpose in life. God created family and the neighbor to be provide the human with the relationship needed for hope and healing. In order to carry out production and exchange, people have to enter into very definite social relations, most fundamentally production relations. Relationships with others should be based off of the materials in which they can provide you with the benefit a person the most. I believe everyone steps into our lives for one reason or another- either good or bad and we need to be the ones to differentiate between the two. Each relationship provides us with a sense of love and understanding on the purpose of our life. Multidimensional There is a vibrant sense of the person in relationship to God and the world through the bodily senses and functions. The body, soul, mind, spirit and even the various body parts are expressions of the wholeness that is the human self. Humans are material objects. They are not immaterial things, or objects, or substances; neither do they contain as parts immaterial selves or souls or entelechies. Their parts are material: flesh and bones and blood, molecules, atoms, electrons. A human is more than a corpse. We are multidimensional and each dimension is important in who we are and how we act in society. Â © 2015. Grand Canyon University. All Rights Reserved. Sexual Jesus showed us that we are sexual beings. Sexuality encompasses the physical, emotional and spiritual aspects of our being. Man and women are supposed to stay faithful to each other and not commit adultery. It is believed to be a physical act between two individuals that creates energy and may result in the creation of a child through scientific means. Sexual behavior affects not only a person’s physical health but also self- image, interpersonal relationships and relationship with God and others. Moral We should choose to act based on good thinking, Scripture and prayer, and the Holy Spirit helps us discern the right alternatives. God knows our intentions are to please him and desire the best moral outcomes for all. The brain and body are a dynamic system interacting with the environment. There is no non- physical entity which could take credit or blame for the outcome of our actions. We learn our morals through trial and error as well as through the relationships we have with others. If we surround ourselves with ethically individuals we too with be ethical. Mortal We are mortals, but God has given us eternal life in Jesus Christ. We die, and yet we live. Poor stewardship of the life God has given us may well exacerbate the death and decay that surround us In order for human beings to survive and continue existence from generation to generation, it is necessary for them to produce and reproduce the material requirements of life Mortality is unavoidable yet difficult. Once someone dies their soul will either go to Heaven or to Hell. Destined for Eternal Life Destined for eternal life: Eternal life is the life one lives after death. By death the soul is separated from the body, but in the resurrection God will give incorruptible life to our body, transformed by reunion with our soul There is no such thing as eternal life. Life begins when the heart starts beating and ends with the heart stops beating. I believe that those who believe will live an eternal life and that those who do not will not. 2 References Plantinga, Alvin. (2010) Materialism and Christian Belief. Retrieved from http://www. andrewmbailey. com/ap/Materialism_Christian_Belief. pdf Shelly, J. , Miller, A. (2006). Called to care: A Christian worldview for nursing (2nd ed. ). Downers Grove, Ill. : IVP Academic/Intervarsity Press.

Euthanasia or Physician-Assisted Suicides Essay Example for Free

Euthanasia or Physician-Assisted Suicides Essay Proponents of euthanasia and physician-assisted suicide argue that terminally ill people should have the right to end their suffering with a quick, dignified, and compassionate death. Opponents of euthanasia and physician-assisted suicide argue that doctors have a moral responsibility to keep their patients alive as reflected by the Hippocratic Oath. Euthanasia or physician-assisted suicide should be legal because terminally ill people should have the right to end their suffering with a quick, dignified, and compassionate death. On October 1, 1976, California Governor Edmund G. Brown Jr. signed the California Natural Death Act into law and California became the first state in the nation to grant terminally ill persons the right to authorize withdrawal of life-sustaining medical treatment when death is believed to be imminent. By 1977, eight states California, New Mexico, Arkansas, Nevada, Idaho, Oregon, North Carolina, and Texas had signed right- to-die bills into law. The World Federation of Right to Die Societies was founded in 1980. Margaret P. Battin, PhD, Distinguished Professor of Philosophy and Adjunct Professor of Internal Medicine at the University of Utah, and Timothy E. Quill, MD, Professor of Medicine, Psychiatry, and Medical Humanities at the University of Rochester, stated the following in their 2004 book Physician-Assisted Dying: The Case for Palliative Care Patient Choice: We firmly believe that physician-assisted death should be onenot the only one, but oneof the last-resort options available to a patient facing a hard death. We agree that these options should include high dose pain medication if needed, cessation of life-sustaining therapy, voluntary cessation of eating and drinking, and terminal sedation. We also believe, however, that physician-assisted dying, whether it is called physician-assisted death or physician aid in dying or physician-assisted suicide, should be among the options available to patients at the end of life. Terminally ill patients feel like life is no longer worth living. Physicians indicated that patient requests for lethal medications stemmed from multiple concerns, with eight in ten patients having at least three concerns. The most frequently mentioned end-of-life concerns during 2005 were: a decreasing ability to participate in activities that made life enjoyable, loss of dignity, and loss of autonomy. The United States 9th Circuit Court of Appeals stated in its 1996 Opinion from Compassion in Dying v. Washington: While some people refer to the liberty interest implicated in right-to-die cases as a liberty interest in committing suicide, we do not describe it that way. We use the broader and more accurate terms, the right to die, determining the time and manner of ones death, and hastening ones death for an important reason. The liberty interest we examine encompasses a whole range of acts that are generally not considered to constitute suicide. Included within the liberty interest we examine, is for example, the act of refusing or terminating unwanted medical treatment Casey and Cruzan provide persuasive evidence that the Constitution encompasses a due process liberty interest in controlling the time and manner of ones death that there is, in short, a constitutionally recognized right to die.' Legalizing euthanasia and physician-assisted suicide would save money for the American healthcare system. The International Task Force on Euthanasia and Assisted Suicide wrote: Savings to governments could become a consideration. Drugs for assisted suicide cost about $35 to $45, making them far less expensive than providing medical care. This could fill the void from cutbacks for treatment and care with the treatment of death. Euthanasia and physician-assisted suicide should be made legal. To do this, all states must follow in California’s footsteps and put right-to-die bills into effect. And anyone with terminally ill loved ones will agree, unless they’re comfortable with loved ones losing their dignity, autonomy, and ability to enjoy life. Works Cited Is There a Legal Right to Die? Euthanasia ProCon.org. Web. 13 Dec. 2011. Should Euthanasia or Physician-assisted Suicide Be Legal? Euthanasia ProCon.org. Web. 12 Dec. 2012. Why Do Patients Request Physician-assisted Death (a.k.a. Physician-assisted Suicide)? Euthanasia ProCon.org. Web. 05 Jan. 2012. Would Legalizing Euthanasia and Physician-assisted Suicide save Money for the American Healthcare System? Euthanasia ProCon.org. Web. 13 Dec. 2011.

Changes In Global Trade And Financial Flows Economics Essay

Changes In Global Trade And Financial Flows Economics Essay Globalisation is the increasing level of economic integration between countries leading to the surfacing of a new market place. Globalisation has resulted in a reduction in trade protection. This is because of the increased interaction between countries has led to the possibility to purchase goods with similar quality to those developed locally, but for a cheaper price. Financial flows throughout the global economy have immensely increased due to more interaction. In the early 1970s industrial development took place in developing countries, so companies moved production oversees, allowing for lower production costs mainly due to cheap labour. In 1983 the financial system was de-regulated and the exchange rate was floated. This means that the value of the Australian dollar is determined by the supply and demand of the currency. This led to greater accessibility of Australian firms to world capital markets and reduced exporting costs. But this increased the instability of the exchange rate. In the late 1980s Australian manufacturers were persuaded to export to the international market through tariffs, subsidies, local content schemes and quotas. This was in order for them to survive in the large international market. There have been major changes in trade patterns that reflect changes in the global economy. An example is the growth of China being directly related to the demand of raw materials. The increased volume of trade between countries can also be attributed to advances in technologies and new trade agreements such as the Australia United States Free Trade Agreement (AUSFTA). Trade growth is also due to the increase in demand of the resources that Australia has high amounts of. The constantly growing Asian economies demand raw materials that Australian companies extract from the land support growth in certain industries. An example of this is the trade between Australia and China. China is in demand of resource commodities in order to expand their infrastructure and support the 8% growth rate. Explain why globalisation has resulted in a reduction of trade protection Trade protection is a form of regulation that is imposed by a government in order to protect certain industries from cheaper oversees alternatives. Globalisation has resulted in a reduction of trade protection. This is because of increased production possibilities in developing countries that have lower wage rates than developing countries, leading to lower costs and greater profits. The removal of trade barriers can occur because a certain country can: Produce a good not available in another country Produce a good for a cheaper price than goods produced locally Produce a good more efficiently, allowing another country to focus on goods that they can produce efficiently Produce a good that is of better quality because of development of technical skills. However, there are trade protection rules in place in order to protect certain industries and to reduce effects of off shoring on domestic markets. Reasons for protection include: Infant Industries: These are industries that are at the beginning of the product lifecycle and have yet to establish themselves in the market. Therefore they have not yet experienced economies of scale (have not produced enough so that the cost of producing is lower in bulk). Because of this it is very difficult for them to compete with large foreign competitors, who take advantage of economies of scale and offer their products at lower prices, domestically. Although this is a reason for protection, if it is not removed at the correct time the industry may become reliant on government protection and never mature. Therefore a balance must be found between protection and allowing domestic industries to mature. Dumping: This refers to the selling of goods in export markets for a cheaper price than the cost of production. This creates revenue for the exporters that are dumping, but destroys the market for the importing company as they cannot compete with the cheap prices. Dumping is prohibited because of its potential to destroy industries quickly. Dumping may occur because a company wishes to: Gain market share, to reduce excess stock or to deliberately destroy competitive, domestic producers. Dumping also affects employment levels, because consumers will purchase the cheaper good, as the law of demand states the lower the price, the more demand there will be. Domestic Employment: Cheap imports reduce the market share of producers because of consumers purchasing cheaper products. As a result of this unemployment may occur in a certain industry because they may not compete. There may be structural change in the domestic economy because of this inability to compete. An example of this is in the United States in the 1980s where consumers preferred cheaper Japanese alternatives, therefore employment in the car industry decreased rapidly and the structure of the domestic economy changed to specialisation in the computer industry. Explain how trading blocs have impacted on protection levels Trading blocs are intergovernmental, multilateral agreements between countries within an area that decrease regulation on each others exports. Trading blocs have impacted on levels of protection. Since trading blocs are intergovernmental agreements, there must be deregulation in order to achieve maximum trade efficiency. An increase in the amounts of trading blocs internationally has led to a decrease in protection levels between countries in the trading blocs. An example of a trading bloc that has eliminated all trade barriers between the members is the European Union. This was established in 1993 and, although there is minimum regulation, there remains a common tariff between the members. The reasons that countries would want to join a trading bloc are: Improved growth, increased efficiency through importing cheaper goods and services, increased competition, economies of scale (larger markets due to free trade, investment in production due to increased trade and increased technolog y. Explain the consequences of deregulation on financial markets Deregulation of financial markets is where the banks have regulations removed from them. Between the years of 1983 and 1985 the financial system was deregulated by: The cessation of interest rate constraints on banks. This allowed banks to, more efficiently, fight for business (in the form of deposits and loans). Floating the Australian dollar: This is where the value of the currency is determined by the supply and demand of that certain currency. This changes the cost to import from or export to Australia, because the value of the dollar fluctuates. There is an inverse relation between the value of the dollar and the cost to import/export from/to Australia. Granting 40 foreign exchange licenses: This allowed foreign banks to enter the Australian financial system, and was done in order to boost competitiveness in the financial sector. In order to make the Australian banks more competitive, the procedure to set up domestic institutions was made more simple. The consequences of de-regulation are to do with the effects of speculation on appreciation and depreciation of the currency. When there is speculation that the value of the Australian dollar will rise, more people will purchase when it is still low. This increased demand will then cause the dollar to rise because of the floating exchange rate (as shown above). This in turn will have a negative effect on exports from Australia because the currency is worth more in comparison to others. An example is if the USA are importing goods from Australia with the Australian dollar buying 40 US cents. There will be more exports from Australia at this exchange rate in comparison to when 1 Australian dollar will by 1 US Dollar. Outline the role of the WTO, IMF and the World Bank in the global Economy The World Trade Organisation is a global establishment that supervises and implements rules controlling global trade. It is at the middle of decreasing trade protection and barriers. The trade policies that are determined by the WTO and multilateral agreements have expanded world trade; therefore it is seen as a symbol of globalisation. The accomplishment of the WTO in decreasing obstructions to trade and encouraging globalisation can be attributed to a reduction in mainly tariffs and quotas. This is done by: Enforcing international agreements and trade rules: Controlling trade disputes Observing trade policies Supervise trade negotiations While many countries have based their development on export and support globalisation entirely, there are many opponents to globalisation that have hindered the WTOs protection reduction scheme through protesting. This is known as the anti-globalisation process and is undertaken by numerous individuals/organisations because they are opposed to transnational corporations having un-regulated power and specifically because of profit maximisation leading to reducing costs which may lead to a more dangerous work place. The success of the WTO is measured by world trade figures. The amount of merchandise trade exports in 1990 was 14 times bigger than in 1950. The International Monetary fund is an establishment that has been set up with the intention to help countries finance trade and assist with balance of payments. Its prime intention is to guarantee steadiness of the worldwide financial structure, the system of exchange rates and worldwide payments that allows countries and its people to purchase goods and services from each other. In short it promotes globalisation. This is completed by loaning funds to nations in crisis to aid them in paying debts, imports and stabilising currencies. Examples of nations needing financial aid are Russia in 1998, many countries in Asia in 1998 and Argentina in 2003. The countries that obtain help from the IMF usually have conditions imposed on them. The types of conditions that the IMF imposes include: An increase in taxes Decreasing financial assistance on food and fuel Requiring members to disclose monetary and fiscal policies Since these reduce the living conditions of the impoverished, the IMF is frequently perceived as supporting global capital at the expense of the poor. It is, in addition, criticised for pushing nations at the beginning of the economic life cycle to open their economies, float their currencies, and reduce manufacturing and trade barriers. Since there are lags, it takes a while for the income levels to rise and demonstrate the benefits of these actions undertaken by the IMF. The World Bank is built as an organisation for financially supporting long standing expansion scheme for developing nations. The loans that are made towards these developing nations have a very low interest rate and are commonly referred to as soft loans. It not only lends money cheaply to developing nations, but also enforces procedures in order to endorse trade, boost exports and deregulation. An example of this is where some farmers in certain impoverished nations are persuaded to harvest produce for global demand, rather than for neighbouring areas. This may be done in order to boost profits from exports for the entire country. Although this may have a negative impact on local areas because rather than having those supplies used for the locals, they are used, instead for use in exports. Analyse how the global credit crisis has changed global trade and financial flows The global credit crisis has affected global trade and financial flows within the economy greatly. The following trade statistics show the trade numbers between the years 2005-08. Year Imports Exports 2004 9.5 10.5 2005 6 6.5 2006 6.5 8.5 2007 2 6 2008 -12 1.5 The trend of the data can be analysed in the following graph. Results taken from World Trade Organisation website: http://www.wto.org/english/res_e/statis_e/its2010_e/its10_toc_e.htm From the results above it can be seen that between the years 2004 and 2008 there was a drastic decrease in the export and import numbers internationally from 10.5% to -12%. This was due to the effects of the Global Credit Crisis. This will be shown below The global credit crisis began having major impacts in 2007, and still has major impacts on most economies in 2010. The global credit crisis began in the 1980s, where gigantic companies produced mechanical goods. At the end of the decade these firms identified that much more money could be made by investing into the financial industry. An example of a company that took part in this exercise was GE, who by the 90s, was making 10 times more money in investment, than in the production of goods. Due to the amount of cheap loans available, they borrowed much and became in debt. This money was then used to invest in financial bubbles. At first hefty profits were made, and many companies followed suit and by 2005 there was 14 so much money invested in speculation, that in value it equalled 14 times the value of the American economy. Debt began being offered to low income earners to in order to make more money and they could not pay it off. This had an incredible impact on the rest of the wo rld, showing the theory that when America sneezes, everybody catches a cold. Australia was one of the less affected countries due to its link with China. The global credit crisis had a large effect on global trade and financial flows. They include: Less demand for goods and services: Since there was far less demand, the price of elastic goods and service will go down, translating into less production, leading to greater unemployment. From this unemployment, there will be less household income therefore less goods and services will be bought. It was like a never ending circle. Less availability of credit: After the banks had gone bankrupt, there was no body to lend money to consumers, meaning spending was minimal. Rapidly decreasing Gross Domestic Product -Australia has developed a foreign debt of almost $A500 billion from borrowing money in order to fix the extended account deficit. There have been major changes in trade patterns that reflect the changes in the global economy. The rapid growth of China and the export of their manufactured goods, have led to a massive increase of raw materials demanded of certain countries like Australia. Results show that in 2003 the exports from Australia to China were triple what they were in 1990. This ever growing link between Asia and Australia has such a large importance that one of the objectives of ASEAN (Association of South East Asian Nations) is to have Australia join so that free trade can occur between them. In conclusion it can be said that the structure and target of Australian trade is greatly affected by the trends of the global economy.

Leo Tolstoy :: Essays Papers

Leo Tolstoy Leo Tolstoy was a Russian author, one of the greatest authors of all time. Leo Tolstoy was born at Yasnya Polyana, in Tula Province, the fourth of five children. His parents died when he was young, and he was brought up by relatives. In 1844 Tolstoy started to study law and oriental languages at Kazan University, but he never earned a degree. Dissatisfied with the standard of education, he returned in the middle of his studies back to Yasnaya Polyana, and then spent much of his time in Moscow and St. Petersburg. After contracting heavy gambling debts, Tolstoy accompanied his older brother to the Caucasus in 1851, and joined an artillery regiment. In the 1850s Tolstoy also began his literary career, publishing the autobiographical trilogy Childhood, Boyhood, and Youth. During the Crimean War, Tolstoy commanded a battery, and was at the siege of Sebastopol . In 1857 he visited France, Switzerland, and Germany to learn more about society and how to improve it. After traveling for a time, Tolstoy settled in Yasnaja Polyana, where he started a school for poor children. He saw that the secret of changing the world was in education. He investigated during his travels to Europe educational theory and practice, and published magazines and textbooks on the subject. In 1862 he married Sonya Andreyevna Behrs, and they had 13 children. Sonya also acted as Tolstoy’s secretary. Tolstoy's fiction originally came out of his diaries, in which he tried to understand his own feelings and actions so as to control them. He read avidly, both in literature and philosophy. In the Caucasus he read Plato and Rousseau, Dickens and Sterne; through the 1850s he also read and admired Goethe, Stendhal, Thackeray, and George Eliot. Tolstoy was convinced that philosophical principles can only be understood in their concrete expression in history. Tolstoy's major work, War and Peace, appeared between the years 1865 and 1869. The epic tale depicted the story of five families against the background of Napoleon's invasion of Russia. Its vast canvas includes 580 characters, many historical, others fictional. The story moves from family life to the headquarters of Napoleon, from the court of Alexander to the battlefields of Austerlitz and Borodino. War and Peace reflected Tolstoy's view that destiny controls everything, but we cannot live unless we imagine that we have free will.

Fire Imagery in Charlotte Brontes Jane Eyre Essays -- Charlotte Bront

Fire Imagery in Charlotte Bronte's Jane Eyre Incomplete Works Cited The prevalence of fire imagery and it's multitude of metaphoric uses in Charlotte Bronte's Jane Eyre expresses two things that could not be expressed openly in the Victorian Period, which are mainly passion and sexuality. Brontes writing was dictated by the morals of her society, but her ideas were not. Jane Eyre was written with the Victorian reader in mind. Bronte knew that if she were to write about these two things directly she would have to face possible rejection of her book. A resolution to this dilemma was to awaken the audience in a way that society deemed not only respectable, but also acceptable. So Bronte creates Jane, and Jane becomes the embodiment of these morals. She takes Victorian psychology of passion on as her own. The psychology of passion then becomes the novel's most dominant theme. Throughout Jane Eyre, passion becomes centrally focused on self-control, female sexuality, and its relationship to Bertha's insanity as images of fire. Jane Eyre's images of fire bring to the forefront the contradictions that Victorian women faced in fulfilling their passionate needs and while maintaining self-control. Jane is confronted with the duality of freeing herself from the constraints of society and her fears of releasing the consuming energy of her sexuality. Jane keeps these feelings and passions in stringent check because she does not want to give in to the fires she feels inside, but is always struggling to do so. David Lodge says this eloquently, "the heat emanates from a source of passionate love, not of vengeance, and the possibility of being consumed by it is as seductive as it is terrifying" (128). Jane thus creates fire and uses this ... ...'s eyes. Through the destruction of Bertha, Jane is able to come to terms with her idea of self-consuming passion. Berth's death was the liberating factor for Jane. It was the release of the suppressed passions that were dwelling inside her. The fires that Jane speaks after the reuniting of her and Rochester are of warmth and happiness. Jane says: "Can you tell when there is a good fire?," which is telling of the fact that she feels the fires inside are of a good nature now. The fires that represent the passions of the characters in the novel have great significance in Victorian society. Bronte knew this and added to it social commentary on passion and sexuality in one of the most ingenious books of its time, Jane Eyre. Works Cited: Bronte, Charlotte. Jane Eyre. London, Penguin Books Ltd.: 1996. (Edited with an Introduction and Notes by Michael Mason).