Storm Born Chapter Twenty-One

I shot up, anger coursing through my body as I stared at that smug face. A heavy, bejeweled crown sat atop his brown hair, and he wore a close-fitting black satin dinner jacket. â€Å"Don't look at me like that, Lady Markham,† he told me in a voice both pleasant and hostile. â€Å"Dorian will not protect you if you start trouble in his home, no matter how advantageous you are as a lover.† â€Å"Fine. I'll just have to kill you somewhere else.† â€Å"Your plan didn't work so well last time.† â€Å"Neither did yours.† He leered. â€Å"That dress is exquisite, you know. It outlines every part of your body beautifully.† I crossed my arms instinctually. â€Å"Don't waste my time with compliments.† â€Å"Just tossing in my own bid for your body, just like everyone else here.† â€Å"Yeah? Haven't you paid attention? None of their compliments have worked either.† â€Å"Bah. They're petty lordlings and leeches scraping for power,† he said with a sneer. â€Å"The general consensus is that you've refused everyone simply because you've yet to be approached by anyone worthy.† He cut a glance at Kiyo as he spoke. â€Å"Or maybe because I'm with Dorian. Not that it makes any difference. I'd fuck that trowe over there before I'd go anywhere near you.† â€Å"I think I'd like to see that, especially considering he comes to your knees.† â€Å"If this is the part where you tell me how well-endowed you are, save it. There's nothing you can say that would get me near your bed, so just give it up and leave.† His features hardened, a cold and sardonic smirk turning up his lips. â€Å"I suppose I can't argue with that. Not that it matters. I won't be alone tonight.† He stepped aside, just barely, and inclined his head. I followed the motion across the room. Jasmine Delaney stood among a group of gentry nobles. She was watching us, an unreadable look on her face. A long dress, heavy with brocade and jewels, draped her slight form, and her gray eyes looked even more enormous than last time. I clenched my fists, remembering the look on my mom's face when she described her captivity. Wil's picture of a lonely girl, lost in her fantasy world, circled around my mind. â€Å"I will kill you, you bastard. But first I'll make sure you beg me for it.† I sounded like Volusian. â€Å"Eugenie,† murmured Kiyo, laying a hand on my wrist. His voice was firm and cautionary. He apparently feared I'd do something stupid. It was a good fear. Aeson seemed unconcerned. â€Å"Those are kind of extreme measures, don't you think? Especially when there are much simpler ones.† â€Å"Such as?† He shrugged. â€Å"I'll turn her over to you tonight.† â€Å"Let me guess. If I go live with you instead?† â€Å"No such commitments. Come with me just for Beltane. One night, and both you and she walk free. Not a bad offer, especially since there are still a number of men out there plotting to carry you off for an extended period. Considering the other drivel that's approached you, you could do a lot worse. I'm powerful. Rich. Influential. A worthy consort.† I looked Aeson up from head to toe, glanced at the still-watching Jasmine, and then turned back to him. â€Å"I think I'd rather just kill you.† He gave me a mocking bow, face still hard. â€Å"I look forward to the attempt.† He started to walk away, then gave Kiyo a considering look. â€Å"I suppose you could pick worse men to father your child. This one's already proven he can do it.† Aeson swept away from us and headed back to his group. Sliding a possessive arm around Jasmine, he leaned over and kissed her hard, pressing her body up against his. With the difference in their heights, he looked like he was molesting a small child – which, I supposed, he actually was. Puberty be damned. The anger that sight inspired in me solidified into ice as I turned back around to face Kiyo. The look on his face made something inside of me curl up into a ball. â€Å"What's he talking about?† He started to open his mouth and then paused, apparently reconsidering what he wanted to say. My incredulity exploded. â€Å"Kiyo! This is where you tell me he's full of shit and you have no idea what he's talking about.† â€Å"Eugenie†¦Ã¢â‚¬  he began slowly. â€Å"Oh, my God.† I turned around. The ice inside of me melted and made me queasy. â€Å"You have a kid you never told me about. You have a kid somewhere.† â€Å"No. Not yet.† I spun around. â€Å"What the hell is that supposed to – † I stopped. â€Å"Maiwenn. Maiwenn is pregnant.† Poor Maiwenn. Poor sick and weak Maiwenn. I'd heard a number of comments made about her condition and never questioned it. It was a sign of my distraction in the last month. Gentry didn't really get sick. They could get killed in battle, die from an infected wound, or die of old age. That was about it. Even now, looking across the room, I saw her sitting and talking with a few others. She was smiling but looked pale under her tan. The dress she wore was loose and voluminous. The one she'd worn at my house had been similar, albeit not made of silk. She wasn't currently showing off her body. â€Å"You should've told me,† I whispered. â€Å"Yes,† he said simply. â€Å"I should have.† â€Å"You should have told me!† I repeated, my voice loud and strained. Most of the room's noise muffled my cry, but a few people nearby gave us curious looks. â€Å"Shh.† Kiyo took my arm and steered us back toward the wall. â€Å"I was waiting. Things were so uncertain between us. I wanted to have a steady foundation before I told you.† â€Å"Did you ever consider that telling me now might help that ‘steady foundation'? What happened to all the honesty rhetoric?† â€Å"And how would you have taken it?† he asked quietly. â€Å"You've had a hard enough time knowing she and I were together at all.† â€Å"No, I haven't.† â€Å"Eugenie, I see it in your face whenever her name's mentioned.† â€Å"It doesn't matter. This is big.† He shook his head. â€Å"It happened in the past. She and I aren't together. We're friends now. You and I are together.† â€Å"So what? You're not going to do anything with this baby because you guys aren't together anymore?† â€Å"No! Of course not. I'll be there for the baby, and I'll support Maiwenn as much as that requires.† â€Å"Then that's not the past,† I snapped. â€Å"That's your future. My future too if you were planning on being with me.† His face turned even more sober than it had been. â€Å"You're right,† he said after several drawn-out moments. â€Å"It was wrong of me. I'm sorry. I thought I was protecting you.† I gave a harsh laugh that bordered dangerously on being a sob. â€Å"Yeah. Everyone wants to protect me lately. My parents did too. You guys think if I don't hear bad things, then they won't exist anymore. But you know what? They do still exist, and I do end up hearing them. And I wish to God that I could have heard them from the people I love first.† I turned and started walking away. Kiyo grabbed my shoulder. I tried to tug out of his grasp. â€Å"Don't touch me,† I warned. â€Å"We're done here.† â€Å"What are you saying?† â€Å"What do you think? You think I'm going to smile and forgive all this? I can barely forgive my parents, and I've known them my whole life. I've barely known you for a month. That doesn't really count for much.† He flinched. The hand on my shoulder dropped. â€Å"I see,† he said stiffly, face darkening. â€Å"Then I guess we are done here.† â€Å"Yeah.† We stood staring at each other, and where heat once had smoldered between us, only a lonely chasm remained. I turned on my heels and stormed across the room without even knowing where I went. Eager men approached me, but I brushed past them all, apparently showing the arrogance Shaya had said was expected of me. I just couldn't face them right now. It was too much. All of it. The crazy propositions. My so-called legacy. Aeson and Jasmine. Maiwenn and Kiyo. Oh, God, Kiyo. Why had he done this to me? I'd tried to write him off after our first night together, and he'd made me care about him again. Now it only hurt twice as much. The words from last night came back to me. You're mine. Apparently not. I stopped in the middle of the crowded ballroom floor with no clue where I was going. I'd gotten disoriented somehow and forgotten where the exit was. The throne was over there, so that meant – â€Å"Yo, Odile. Some party, huh?† My navigation attempts were interrupted by Finn's approach. I still hadn't adjusted to seeing him in his more humanlike Otherworldly form. â€Å"Finn! I need you to get me out of here.† He frowned. â€Å"You can't leave yet. Etiquette says – â€Å" â€Å"Fuck etiquette,† I snarled. â€Å"Get me out. I want to be alone.† His standard cheery expression faded. â€Å"Sure thing. Come on.† He led me not toward the main doors but rather to a small doorway tucked near a corner. Delicious smells wafted out from inside. This was some sort of back way to the kitchen. A number of scurrying servants gave us startled looks as we passed through twisting corridors and banks of ovens, but Finn moved with purpose, never breaking stride. People tend not to question if they think you know where you're going. With a flourish, he gestured me to a small alcove far from the bustle of the cooks. Hooks with cloaks and coats covered the walls, and I realized this must be where the staff had stashed their personal things. A small bench sat below the hooks. â€Å"Good enough?† Finn asked. â€Å"Yes. Thank you. Now go away.† I sat down and wrapped my arms around myself. â€Å"But shouldn't I – â€Å" â€Å"Just go, Finn.† I could hear the tears in my voice. â€Å"Please.† He gave me a mournful, almost hurt look and then walked away. The tears took a long time to come, and even then, they did so reluctantly. Only a couple streaked down my cheeks. I had felt helpless with the mud elemental, but this was a different kind of helplessness, one with mental, not physical, consequences. My heart ached inside for Kiyo, and my stomach burned with fury against Aeson. Neither ailment looked to have a remedy anytime soon. I don't know how long I sat there before Dorian came. I could only make out his shape in my periphery, but the scent of cinnamon gave him away. He sat down beside me for a long time, saying nothing. Finally, I felt his fingertip gently run along my cheek and wipe away one of the tears. â€Å"What can I do?† he asked. â€Å"Nothing. Not unless you'll let me break hospitality and go do some damage.† â€Å"Ah, sweet one, if that were possible, I would have long since strangled several of my nobles, lest I be forced to listen to more of their idiotic blather.† â€Å"What's the point of being a king, then?† â€Å"Not sure that there is one. The food maybe.† â€Å"You make a joke out of everything.† â€Å"Life's too painful not to.† â€Å"Yeah. I guess.† We lapsed into silence until Dorian called someone's name. A moment later, a small, harried servant appeared. â€Å"Bring us some of that chocolate cake Bertha made. Two slices.† The man hurried off. â€Å"I'm not hungry,† I mumbled. â€Å"You will be.† The cake arrived. It was one of those flourless kinds, so it was more like cake chocolate than chocolate cake. Raspberry sauce pooled around it. I found myself eating every bite. â€Å"Better?† Dorian asked. â€Å"Yeah.† â€Å"You see? I told you it was the food.† I set the plate on the floor and tried to give voice to an idea that had slowly been percolating in the back of my head. An idea that probably would never have dared surface had I not been so furious at Aeson and Kiyo tonight. Indeed, it was Aeson's preposterous proposal that had reminded me of it. â€Å"Dorian?† â€Å"Yes?† â€Å"When we first met†¦you told me that if I slept with you, you'd go with me to get Jasmine. Does that offer still stand?† The first surprised look I'd ever seen on him crossed his face. I took a certain amount of pride in realizing I'd finally caught him off-guard. â€Å"My, my,† he said softly. â€Å"This is unexpected. So. Desperation and fury achieve what all my charms could not, hmm?† A flush spilled over my cheeks. â€Å"Well, no†¦it's not like – â€Å" â€Å"No,† he said abruptly. â€Å"The offer does not still stand.† â€Å"But I thought – â€Å" â€Å"I saw you fight with Aeson and the kitsune. I won't have you come to my bed out of some misguided sense of revenge on the two of them.† He was right in a way, I realized. This was my means of getting back at both them. Aeson for flaunting Jasmine. Kiyo for breaking my heart. â€Å"Please,† I said. â€Å"I'll do it. I-I don't mind. And anyway†¦I have to get Jasmine back. I can't handle her being with him anymore.† Dorian was quiet for a long time. Finally he said, â€Å"All right.† I snapped my head toward him. â€Å"You mean it?† â€Å"Certainly. We'll go back to my room and see how you do.† â€Å"See how – ? What's that supposed to mean?† Was the deal contingent on how good I was in bed? He smiled. â€Å"I'll get Nia to take you back. I have to mingle a bit more and will join you soon.† Nia arrived as if by magic and did exactly as he'd said. Once alone in his massive chamber, I paced restlessly, reconciling myself to sex with a full gentry. It would be easy. Nothing to it. I just had to lay there. Gentry didn't carry diseases like humans. I couldn't get pregnant. One night, and I could finally get revenge on that bastard Aeson and the smug look on his face. And yes, Dorian had been right: I'd be getting revenge on Kiyo too. Who knew? Maybe sleeping with Dorian would fill the terrible, aching hole Kiyo's betrayal had left in me. â€Å"Admiring the view?† asked Dorian when he finally entered. I stood by the huge picture window, staring at my own reflection in the dark glass. â€Å"I'm never here in daylight. I've never seen what it looks like.† â€Å"It's lovely. You'll see it in the morning.† I supposed I would. He took off the heavy robe, poured a glass of wine, and sprawled back on the pile of pillows on his bed. The move seemed less an initiation into sex and more of an expression of fatigue. He looked very ordinary. Very human. â€Å"You look tired.† I leaned against the bedpost, watching him. He exhaled heavily. â€Å"It's hard work amusing one's admirers – as you can no doubt attest to. How'd you like your first royal party? Tell me who you spoke to. Your night must have been more tedious than mine.† Gingerly, I sat on the bed's edge and recounted the night for him. I gave my opinions and offered up as many details as I could on my many solicitations. Names eluded me, but Dorian could identify the culprits pretty easily based on other identifying information. He laughed so hard at my accounts and opinions, I thought he'd start crying. Swinging himself up gracefully, he slid over on the satin coverlet to sit beside me. â€Å"You poor, poor thing. No wonder you like hunting us down. Although, I confess after my own equally inane experiences tonight, I might have a few names to give you.† â€Å"You shouldn't say things like that.† He shook his head and laughed. â€Å"Stay here long enough, and you'll say them too.† Those gold and green eyes watched me, glimmering with both affection and desire. For a moment, I could almost believe Dorian wanted me for me and not for my human fertility or connection to a prophecy. Resting his hand on the back of my neck, he kissed me, and I had no more time for questions. We'd kissed a lot by now, and his lips still held that same silky softness, that careful precision and control. I was used to this, and it warmed up every part of me, but tonight's inevitable conclusion loomed before me. My lips almost faltered but still managed to kiss him back. I could do this. It was easy†¦right? He gently lay me back on the bed, still kissing me as he rested his body partially across my own. The heat and weight of him triggered something pleasurable within me, even as some part of my brain suddenly started pining for Kiyo and recalling every bad thing I'd ever been taught about gentry. My breath quickened but not from passion. No, no, I chastised myself, forcing my body to not go rigid. This is Dorian. There's nothing to be afraid of. But I was afraid. This didn't feel right. I couldn't let myself do it, even though I knew there was no reason not to. I hung out with gentry now. I had titles. I wanted to learn their magic. I wanted to kill Aeson. And yet, somehow, some part of me refused to give into this final – Dorian broke away from me and sat up. â€Å"It's as I thought. You don't want to really do this. You're afraid of me.† I half sat up, propping on my elbow. Swallowing, I tried to breathe more steadily. â€Å"Didn't you say once that you wanted me to be afraid?† â€Å"Not this afraid. Besides, your heart is a bit muddled tonight.† He rose from the bed and casually poured another goblet of wine. Sipping from it, he walked over to the window and stared at the nothingness, just as I had earlier. â€Å"W-what are you doing?† â€Å"I told you before. I don't take women who don't want me.† He kept his back to me, but his voice held that usual carefree tone. Like everything was still just one big joke. I wondered if he was upset. I couldn't read him at all. â€Å"Er, wait†¦Ã¢â‚¬  I scrambled off the bed and grabbed his arm, nearly spilling the wine. â€Å"What are you saying? We have to do this. I swear, it doesn't matter. I want to do this. Really.† â€Å"Maybe. You don't look at me like you do the kitsune, but I've felt your desire before. It's a fleeting thing, though, and it can't quite win against that part of you that says not to submit to one of the shining ones.† â€Å"Maybe we can ignore that part.† He laughed and touched my cheek. â€Å"I adore you, you know that? I'm so happy I met you.† I swallowed, anxious and desperate. â€Å"Please, Dorian. I want to get Jasmine. We have to do this.† â€Å"We aren't doing anything like that. Not tonight, I'm afraid.† He walked away and sat back on the bed near the headboard, just as he had earlier. â€Å"I will, however, make you a deal. We will postpone our arrangement until you're ready. In exchange for this grace period, I add the further caveat that we won't go to Aeson until you've made some suitable progress with your magic.† I thought about our last couple of dismal lessons. â€Å"That might take awhile†¦.† â€Å"Then it takes awhile. Really, if you want every edge you can get to defeat him, you'll be better off knowing something about your power, even if it's small. Your weapons are strong, but if they're gone†¦then they're gone.† I wanted to fight him on this, to tell him I couldn't wait that long. Fuck the magic. Fuck my prudish resistance. We should get the sex over with and just grab Jasmine. But I knew he was right. On all levels. He didn't deserve my body without my mind being into it, and I did need every advantage I could get. â€Å"Well, then†¦can we practice tonight? Seeing as how nothing else is going on?† If I distracted myself, maybe I'd stop hurting for Kiyo. â€Å"No point in bothering with tact, eh? Very well, then, let's see what we can accomplish.† I dragged a chair into the middle of the room while Dorian produced some more cords from his never-ending supply. â€Å"Beige and violet,† he said, holding them up. â€Å"To match your dress.† â€Å"It's ‘champagne.'† He didn't tie my hands this time, but he did completely bind my torso. Again, he used intricate patterns as he worked, integrating unique braids and weaves. The purple silk crisscrossed around my breasts, and each time his hand brushed some sensitive part, a secret thrill would run through my body. What was the matter with me? If I could have these physical reactions, then why couldn't I have sex with him? The binding took forever, just like always. It made me so impatient, but Dorian clearly enjoyed it. He worked with infinite patience, careful of every weave and knot. When he finally finished, he stood back and surveyed me, just as he had the last two times. â€Å"Very nice,† he observed, eyes taking me in. A strange thought occurred to me as I sat there. I willingly let him do this to me, but really, it was a leap of faith. My arms might be free, but as he stood over me, I realized how helpless I was. How totally in his power I was if he wanted to abuse it. But he didn't. He never did. After blindfolding me, I heard him fetch the water pitcher from the other room. Once it was apparently hidden, he returned to the bed. I heard the bed shift under his weight, the sound of more wine pouring out. â€Å"Have at it,† he said. I focused just like I'd done in our last two lessons. My mind expanded, reaching out into the room, trying to find the water I supposedly had an affinity for. I repeated the same exercises, visualizing moisture and wetness. The way it felt and tasted. Yet, when I pointed to where I thought the water jug sat, he told me I was wrong. So I tried again. Three more times, to be precise. Failures each time. I heard him yawn. â€Å"Would you like to call it a night? I dare say this bed is big enough for us to sleep chastely in. Or, if you wish, I have no qualms about sleeping on the sofa in the other room.† â€Å"No,† I said stubbornly. â€Å"I want to try again.† â€Å"As you like.† Again, I went through the motions, hating them yet burning with need. I wanted to do this. I wanted to control the power. I might have failed at sex tonight, but I would not fail at – â€Å"It's there,† I said suddenly. â€Å"Where?† I pointed, and in my outstretched hand, I could almost feel something wet. It was so easy. How had I not noticed this before? â€Å"It's right beside you. Really close. If you're still lying on the bed, I'd say†¦elbow level. Maybe on the table.† He stayed quiet. â€Å"Well? I'm right, aren't I?† â€Å"Check the rest of the room.† My hopes crumbled. â€Å"I was wrong again.† â€Å"Just check. See if the water is somewhere else.† I didn't get his game. Why the vagueness? Had I found it or not? But I tried again, reaching out into the room. That spot near him pulsed to my senses. The water was there, I knew it. So what was this all about? Another spot suddenly called out to me. I reached for it without using my hands this time, and that same strong pulsing reached back. And with that sensation came a slight tingle, only a spark, but it whispered of the power I'd felt in the dream-memory. â€Å"Okay. Right by the door. On the floor, I think.† â€Å"Yes.† The response was surprisingly simple and clear. No jokes or games. â€Å"Right? I'm right? Really? You're not just messing with me so we can go to bed?† I heard his soft laugher as he walked to the door and then approached me. Taking my hand, he dipped it down into a ceramic pitcher, and I felt cool water slide over my hand. I laughed, ecstatic and empowered. I felt like splashing it on both of us. â€Å"So what'd I find the first time then? By the bed? It must have been something, judging from your reaction.† â€Å"Indeed it was.† He took the pitcher away, walked toward the bed, and returned to me. I felt his arm move toward me, and then the scent of something strong and fruity touched my nose. â€Å"The wine,† I realized. â€Å"I found the wine.† â€Å"Yes. Quite remarkable too, considering I'd almost drank it all.† He set the decanter down and untied my blindfold. â€Å"Now, my dear, it's time to go to sleep.† He knelt before me and started the tedious process of undoing all those ties and knots. I waved my free hands. â€Å"You want help?† He shook his head. I could smell the wine on him. â€Å"No. Leave me my simple pastimes, please.† â€Å"Are you drunk?† â€Å"Probably.† He worked steadily on freeing me from the cords, his fingers a little less precise than they'd been earlier. I again felt that strange chill over being so ensnared. Released at last, I stood up and stretched. â€Å"Can I have some of that?† I wanted to celebrate, and after weeks of good behavior, I realized I could safely drink here. Funny that the safest place for me now would be in a gentry's keep. He held up the decanter. There was probably only one glass left. He eyed it askance for a moment and then took off his shirt. Perplexed, I watched him walk over to the door and stick his head out. â€Å"Yes, sire?† I heard a voice say. â€Å"We need more wine!† declared Dorian in a booming voice. â€Å"Lady Markham and I have a lot more to do tonight.† â€Å"Right away, your majesty!† â€Å"Hurry, man. You have no idea how demanding she is. I can barely keep her satisfied as it is.† I heard boots running on the stone floor. Dorian shut the door and turned to me. â€Å"Your wine will be here shortly, and my prowess will no doubt be proclaimed throughout the castle.† I rolled my eyes at his show. â€Å"So did I pass the test?† â€Å"Hmm?† â€Å"You said I had to make progress in magic before we could go get Jasmine.† â€Å"Oh. That. Well, this wasn't exactly progress.† â€Å"The hell it wasn't.† He sat next to me on the bed. â€Å"You found the water. Now you have to do something with it. Your enemies won't be impressed when you inform them there's a lake just over the next hill.† I sighed. Great. â€Å"So what's the next step?† â€Å"Next you make the water come to you.† â€Å"Huh. Well. That at least sounds more exciting.† â€Å"Not really. Mostly we do exactly the same thing except you just sit around and try to make it move.† â€Å"You're the most boring teacher ever.† He grinned and gave me a quick kiss on the cheek, just as a knock sounded at the door. â€Å"It all depends on what you want me to teach you.†

International Hr P

International HR Project: Procter & Gamble Co. Rachel Angelina Walker Morrisville State College BSAD 415 International Human Resource Management Dr. Linda F. Turner February 10, 2013 Organizational Background P&G is a global manufacturer and marketer of branded consumer products. The company markets its products in over 180 countries spanning Americas, Europe, EMEA and Asian region. In the company profile (The Proctor and Gamble Company), P&G’s organizational structure is explained as being comprised of global business units, global operations; global business services and corporate functions.The company is organized into two global business units: beauty and grooming, and household care. The main focus of this business unit is new product upgrades, innovations and marketing plans. The company profile (The Proctor and Gamble Company) also states that P&G is one of the world's largest consumer goods companies. â€Å"Its products reach 4. 4 billion people worldwide. P has the s trongest portfolio of brands in the industry, with 50 leadership brands that generate 90% of the company’s sales and profits† (p. 123).P has a leading market position and strong brand portfolio which provides them with a competitive advantage. The 2012 company profile (The Proctor and Gamble Company) recorded revenues of $83,680 million, an increase of 3. 2% over 2011. P listed North America as the company's largest geographic market, this accounts for 39% of their total revenues. â€Å"P&G generates revenues through five reportable segments: fabric care and home care (32. 1%* of the total revenues in 2012), beauty (24%), baby care and family care (19. 4%), health care (14. 6%) and grooming (9. %)†(p. 103). The current global operations that comprise P&G's Market Development Organization involve â€Å"go-to-market† plans at the local level with dedicated retail customer, trade channel and country-specific teams. It is organized into five geographic units: North America, Western Europe, Central and Eastern Europe/Middle East/Africa, Latin America and Asia which comprises Japan, Greater China and ASEAN/Australia/India/ Korea. For 2013, the company will be forming a joint venture in the Asian geographic unit. Intricacies of Global OrganizationsAs we prepare to expand our operations to China, we will begin by creating an international design and structure. There will be several stages that our company undergoes in an attempt to break into the Chinese market successfully. First, we plan to engage in portfolio investment in order to purchase stock from the local firms in China. Procter & Gamble Co. is a worldwide recognized company established in many markets across the globe. Therefore, although we will be emphasizing the exportation and sales of our products in the Chinese market, this stage will not be a very big operation due to our already existing global familiarity.At this time, our company will take on light training to ensure that our employees have the capabilities to do business across borders. As stated previously, we already operate across several boarders so the training will just ensure some skill sharpening among existing employees who will be affected by our expansion to China. The second stage in creating our international structure will be sales. In this stage we will be focusing on hiring managers, or training existing managers, who will specialize in purchasing and sales in China.The next stage deals with our method of entering the Chinese market, we have chosen to gradually expand into China by beginning with licensing. By doing this we have located firms that already exist in China that are capable and experienced with manufacturing our products. By licensing, we are able to cut costs and be more integral in the local community allowing for a more seamless expansion into Chinese market. The only person that will be involved in these operations from Procter & Gamble Co. will be the Sales Negotia tor that we have hired and trained.Technology will be an important tool in the vital relationship between our negotiating manager and our licensing operations. Our final and most exciting stage will be the joint venture that Procter & Gamble Co. has set up in China. We will be partnering with a local company who we will do business with for the contracted time of three years which we decided was ample time to get started in the market. A joint venture is defined as the corporation of two or more businesses in which they share assets, profits, loss and even gave a control in the organization.Both parties bear the risk of loss, as well as, a share in the assets in a joint venture. Advantages: 1. Sharing the economic risk. 2. Using larger funds 3. As a joint venture, companies will access larger funds for the production and products. Therefore, there will be greater chances of company’s growth. Disadvantages: 1. Shared profit: Both the parties have to share the profit and that m ay be the written agreement. 2. Importance of Joint Venture agreement. It is better for both the parties if everything gets clarified on the paper before signing in to the joint venture agreement. . Undesired outcome: As there will not be one party who will be liable to supervise the departments so there can be disputes and lawsuits. Employees from each company will be assigned to the new China based entity. An equal share of managers and workers from each company will be hired and re-trained to align culture and company goals among employees. P will incorporate best policies and practices from both entities in order to create equality among the IJV for employees from each entity. As we expand our operations to China, Procter & Gamble Co. ill utilize a ‘transnational’ business strategy. As a company we want to localize our company as much as possible to the Chinese community while remaining somewhat familiar to our domestic employees who will be moving with our operatio ns to China. The transnational approach allows us to attempt to maximize both global and domestic responsiveness and integration. The goal is for us to appear as a local firm in the communities we are locating to. Other attempts to localize will include various charities and fundraising for culturally important issues in the community.The company will maintain a functional structure in order to simplify communication across our many global expansions. (Dibadj, Powers & O'Connor, 2012, p. 12). Another issue that must be addressed is the role the Chinese government plays in our economic activities. There are obviously many differences between doing business in a democratic government and doing business in China which is a communist country. â€Å"As the most populous nation in the world, China offers awesome potential markets for multinationals.Currently, multinationals dominate FDI in China, but they are faced with very different risks and characteristics from the local Chinese ente rprises that have traditionally served as China’s major investors† (Chitakornkijsil, 2011, p. 1). Some of the downfalls the Chinese economy were illustrated in a study by Chitakornkijsil (2011) which concluded, â€Å"†¦the accumulating information gained from these investments shows very mixed results. Telephones cannot be connected to each other. Many Chinese are reluctant to talk to strangers. Others are bankrupt† (p. ). The government’s activity will affect our global operations in China because the lack of technology, like lack of telephones, causes a communication problem for both marketing and internal communication. Also, the social differences like not communicating with strangers may make it hard for HR to integrate the domestic and Chinese cultures in the workplace. Another risk associated with entering China is as, â€Å"†¦for intellectual-property violations, many regard China as being in a league of its own. The nation is a major wo rld center of counterfeiting.Copyright violations are conducted by unscrupulous business people and abetted by the employees of the multinationals being ripped off. Some mainland-based Western pharmaceutical manufacturers put the counterfeit rate at 10 percent or more. Increasingly, as multinationals suffer losses, decisions about whether to make further investments in China may be dropped altogether or put on hold. The counterfeiting issue influences P&G's ability to raise the prices of products because counterfeiters can undercut on price.In addition, when counterfeiters sell unsafe or inferior products, they undermine and harm its owner’s reputation and undermine loyalty to the brand with customers† (Chitakornkijsil, 2011, p. 4). Despite the various detrimental characteristics of doing business in China, there are many encouraging qualities as well. One of the benefits was mentioned by Chitakornkijsil (2011) is, â€Å"The opportunity to have access to the most popul ous nation in the world, China offers awesome potential markets for multinationals† (p. 1).Also, there are various ways to avoid the implications described previously like copyright fraud. â€Å"Various foreign multinationals depend on joint ventures with local partners to decipher the local terrain. The local partners ideally would provide knowledge of local conditions and business environments†¦However, for now, China remains a high-risk but high-potential market. † (Chitakornkijsil, 2011, p. 11). I feel confident in the joint venture we have contracted and the extensive research we’ve done about the Chinese economy.As Chitakornkijsil (2011) stated, the joint venture will ideally provide knowledge of local conditions and ultimately prevention of local issues. Although there are risks that Procter & Gamble Co. will be taking by expanding to China, it is a high-potential market and as the Senior Executive for HR, I feel the potentials outweigh the risks. Cul tural Implications and Differences The following table demonstrates some of the many cultural differences P employees will face when integrating with our Chinese counterpart. We will prepare our employees as well as the employees joining the IJV with proper cultural training.This training will be mandatory for all positions affected by the joint venture; all employees will be compensated and rewarded for completed training. At the end of training, employees will be tested for competency as it relates to their individual position in the IJV. |   |Chinese |Americans | |Conception Of the Self |Collectivist: Higher value placed on group cooperation |Individualist:   Higher value placed on self-reliance.Self-promotion| | |and individual modesty. |is more accepted. High value placed on â€Å"freedom† from externally | | | |imposed constraints. | |Social Relationships |Formal, hierarchical. People most comfortable in the |Informal, egalitarian. People most comfortable with thei r social | | |presence of a hierarchy in which they know their |equals; importance of social rankings minimized. | |position and the customs/rules for behavior in the | | | |situation. | | |Friendship |Small number of close, lifelong friends who feel deeply |Large collection of â€Å"friends† and acquaintances which changes over | | |obligated to give each other whatever help might seem |time and involves only limited mutual obligations. | |required. | | |Obligation |Relationships with other people involve reciprocal |People avoid interdependent relationships and situations that might | | |obligations. |entail long-term | |Task vs. Relationship Orientation |Relationship-oriented:   Maintaining a harmonious |Task-oriented.Relationships are less important than getting the | | |relationship has priority over accomplishing tasks. |work done. | |Harmony vs. |Avoid direct confrontation, open criticism, and |Willing to confront directly, criticize, discuss controversial | |†Truth† |controversial topics. Concern maintaining harmony and |topics, press personal opinions about what they consider â€Å"the truth. | | |with â€Å"face. |Little concern with â€Å"face. † | |Role of laws, rules, and regulations |More faith in personal relationships than in written |Written rules presumably apply to everyone and are assumed to produce| | |rules and procedures for structuring interactions. |fair, reasonable procedures and decisions. | |Time Consciousness |Relatively more attention to the past and to the |Less interested in the past; eye on near-term future. | |longer-term future. | | |Ascribed vs. Achieved Status |Traditionally, a person's status in the society was |People's status is based mainly on their own achievements, including | | |based importantly on inherited characteristics such as |education obtained and level of success realized in their line of | | |age, gender, and family.This is changing. |work. | (Selmer, 2008, p. 208). The cultu ral differences mentioned in the chart will be at the core of our training seminars. We will strive to provide employees with better understanding so that employees from both entities can integrate and feel equally understood by the company. Various Facets of the IHRM function As we globalize, Procter & Gamble will explore the locations within China that we find desirable for our company’s expansion and identify the HR challenges that will arise as we re-locate to these areas.The nature of Chinese markets is different than the United States which means that our company has to think carefully about what the given geographical locations have to offer. After careful research and deliberation we have decided to focus on China’s Tier 1 cities (Shanghai and Beijing). These areas are highly populated areas with a large, middle-class representation and income levels well above the national average. Tier 1 cities are China's most mature markets in terms of consumer behavior, an d are typically the most suitable testing ground for foreign companies with limited experience in China.As mentioned previously, we will be staffing our international joint ventures with employees from both our company and the firm we are joining in China. Although we will be using employees who are already with the companies, there will still be a selection and training process in place to ensure that the best fit employees are selected for this opportunity. Recruiting We will be utilizing and internal recruitment strategy within our firms here and also within our partner’s firm abroad to recruit employees. We will use company resources such as; bulletin boards, company intranet, email, and referrals.It may be difficult finding people who are willing to move overseas so recruiting sources should find candidates who have high receptivity to international careers which reflects their attitude toward working internationally. These include their personality, prior international experience, age, gender, marital status, and education. Each firm will hold a recruitment session on the first of the month to educate employees about the opportunity and encourage them to apply. There will be an application for this position where employees will be entered to bid for the job openings along with employees from our international partner’s firm.This will ensure that employees from both firms are equally considered for all positions. Selection After all applications are received, hiring managers from both firms will collaborate to consider the qualifications of each candidate for the positions applied for. The maturity of the candidate and their ability to integrate with new and foreign culture and policies will be strongly considered. It is also important that P&G screens candidates for most suitable personal characteristics, such as adaptability and desire to learn and experience new things and new people.During this selection of individuals, our hiring manage rs will collaborate with the partner firm’s hiring managers through a series of selection including; phone interviews, skill testing, and a final panel interview. Also, by collaborating with the managers from our joint venture we can ensure that employees from both firms are being represented equally and fairly. Management Another key decision to be made is whether to employ expatriates in senior management positions or whether to localize these roles.Employing expatriates tends to be seen to offer greater operational control, although is also more costly in terms of salary packages, relocation costs, insurance and other expenses. Also, most expatriate managers have a very limited local knowledge of Chinese cultural and business practices, and very seldom have the Chinese language skills necessary for dealing with Chinese companies on a day-to-day basis. â€Å"A key benefit of hiring a Chinese manager is the local market knowledge and deeper understanding of Chinese business they bring to the role.Not only are salary and insurance costs lower for local employees, but Chinese employees very often have existing contacts with suppliers, customers and local government authorities that can be fully utilized† (Shen & Edwards, 2008, p. 45). Unfortunately, in many industries the supply of highly skilled local managers with industry experience is extremely limited, and employers may still be forced to pay a premium to attract the right caliber of employees. Equally, staff turnover rates are extremely high in China and retaining quality managers over the long term is challenging.Losing local managers will also risk losing access to their networks and local market knowledge. Due Diligence Due diligence is an important action when setting up in China for the first time. P&G’s objective of due diligence as we globalize is ultimately to verify the trustworthiness of partners and employees, and to identify any red flags before proceeding with any sizeabl e investment. Although some basic due diligence can be carried out in-house, nowadays there are also numerous legal and risk assessment consultants with offices in China that provide business intelligence, individual background checks, and risk analysis consultancy.Compensation There are a number of different options for establishing a worldwide compensation system. P&G has chosen what we feel is the most fair and uniform system of compensation which is referred to as the HQ scale. In this approach, worldwide salary levels are established at headquarters with differentials for each affiliate subsidiary according to their differing costs of living and local geography. This way every employee will be paid uniformly and there will be no ambiguity between the pay of expatriates and local employees.Also, in efforts to support integration of cultures, there will be raises based on the completion of diversity training. P&G will also offer bonuses for those employees who achieve specific bu siness goals as well. Benefits Companies in China provide their employees and workers with a variety of benefits. Benefits are an important component of a company's compensation package for attracting and retaining its employees. The benefits, in addition to base salary, serve as incentives to the employees and encourage them to enjoy working for P.Benefits at P will include health coverage, income protection, reimbursement accounts and other programs such as Tuition Reimbursement, Employee Assistance Program, Commuter Benefit Program and Adoption Assistance. Eligibility for benefits will depend on partners paid hours which must be a minimum of 240 hours in each calendar quarter. This is uniform with the requirements of local employees which will ensure that compensation is fair across both local and global operations. Taxes Another common concern is tax liability.As the employer, P is liable to pay income tax – in the form of Pay As You Earn (PAYE) – and every three m onths give the tax certificate to the employee. As far as employee income taxes, we will adhere to the current laws in China which are as follows: China Tax Rates 2012 †¢ The tax on an individual's income is progressive. As at 2013, an individual's income is taxed progressively at 3% – 45%. †¢ The 2013 corporate tax rate for domestic and foreign companies is 25%. †¢ Small companies pay 20% corporate tax in certain cases.Overseas Income †¢ An individual and company who are Chinese residents are also taxed on their income outside China and receive a credit for overseas taxes. †¢ Qualification for residence for an individual: Permanent residence in China while an individual who has no permanent residence in China but has lived in China for less than 5 years is taxed on his income in China, or overseas income that has its origins in China. †¢ Individuals staying in China more than five tax years are taxed on their worldwide income too.Table of Income Tax Rates in China for an Individual in 2013 |Tax % |Monthly Income (CNY) | |3% |1 – 1,500 | |10% |1,501-4,500 | |20% |4,501-9,000 | |25% |9,001-35,000 | |30% |35,001-55,000 | |35% |55,001 – 80,000 | |45% |80,001 and above | (New income tax rates for China employees, 2009, p. 4). Performance Management P has a systematic process by which we involve both local and international employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Our employee performance management includes: †¢ planning work and setting expectations, †¢ continually monitoring performance, †¢ developing the capacity to perform, †¢ periodically rating performance in a summary fashion †¢ rewarding good performanceWell-Being of the International Workforce The employee health, safety, and well-being are very important topics for P and will require extra attention by the firm in many ways. We will have to increase our attention to employee’s well-being around the world. Since we have more employees at risk because of increased global trade we will establish a more detailed health and safety policy on a global basis for all employees involved in the IJV to China. We will also have to deal with specific health and safety concerns in China such as the higher air pollution and the risk of kidnapping and/or terrorist attacks. Legal and Regulatory Environment in ChinaAlthough China's entry to the WTO in 2001 helped to liberalize China's trade environment to some extent, many industries remain heavily regulated. There are still a lot of industries that remain off-limits to foreign companies and many industries where severe limitations remain in place. â€Å"As China's economy develops, it is also accumulating a growing number of industry-specific regulations and standards, which both domestic and foreign companies should conform to. China has a host of different minist ries and regulatory organizations that are responsible for industry regulations and laws. This makes it very difficult for foreign businesses to comply† (Shunfeng, Chengsi, & Jianghuai, 2012, p. 24).In attempt to organize and comply with these regulations, P&G has done large amounts of research in attempt to unravel the web of complex laws and regulations, and try to understand which authorities have primary responsibility for implementing them. References Chitakornkijsil, P. (2011). Risks and Opportunities for Foreign Multinational Companies in China. International Journal of Organizational Innovation, 4(2), 15-24. Dibadj, A. , Powers, S. , & O'Connor, M. (2012). Procter & Gamble: Time for Action — Enabling Growth Through Lower Costs and Increased Investments. Bernstein Black Book – Proctor & Gamble: Time For Action – Enabling Growth Through Lower Costs & Increased Investment, 1-213. New income tax rates for China employees. (2009).China Business Review, 21(2), 4. Selmer, J. (2002). The Chinese connection? Adjustment of Western vs. overseas Chinese expatriate managers in China. Journal Of Business Research, 55(1), 41-50. Shen, J. , & Edwards, V. (2008). Recruitment and selection in Chinese MNEs. International Journal Of Human Resource Management, 15(4/5), 814-835. doi:DOI: 10. 1080/0958519042000192960 Shunfeng, S. , Chengsi, W. , & Jianghuai, Z. (2012). INDUSTRIAL UPGRADE, EMPLOYMENT SHOCK, AND LAND CENTRALIZATION IN CHINA. Contemporary Economic Policy, 30(4), 523-532. doi:10. 1111/j. 1465-7287. 2011. 00266. x The Procter & Gamble Company. (n. d). Company Profile Retrieved from Marketline.

International Financial Reporting Essay Example | Topics and Well Written Essays - 3000 words - 3

International Financial Reporting - Essay Example anges in a given period, cash flow statement for the period, financial position statement in the period’s balance sheet, comprehensive income statement and the notes which include a summary of explanatory notes and the accounting policies. Any given entity may apply titles for the stated above statements other than those referred to above. A fair presentation as well as compliance with the International Financial Reporting Standards (IFRSs) is the emphasis of IAS 1.15. The use of the relevant IFRSs which contain additional disclosures as necessity calls for is usually presumed to have an end result of a set of financial statements which reflect a fair presentation as IAS 1.15 states. (iasplus.com, 2010) According to the definition given under IAS 1’s stipulations, fair presentation is the requirement that there is a faithful representation of the transaction effects, other events as well as the conditions with emphasis on the recognition and definitions criteria for income, assets, liabilities and expenses stated in the framework. That entity which ensures that its financial statements are in accordance with the IFRSs shall do an unreserved and explicit statement of its compliance in the notes. Also any entity that describes its financial statements as complying with IFRSs where the case is contrary, then that entity will be in contravention with the IFRS requirements. (ec.europa.eu, 2010) The reporting is required for general purpose financial statements as IAS 1 says. The main objective of these financial statements is to give information concerning the position of the business financially, cash flows and performance which is useful to various users while making decisions economically. So as to meet the objective, the entity’s financial statements provide such information as; liabilities, assets, equity, expenses and income cash flows and changes in equity. This information combined with notes to financial statements helps the users of such statements to

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Organizational Culture and Team Effect Paper - Assignment Example A culture may take a long period of time to develop, however, it is incorporated through consistent expectation and examples brought forth from the leading executives of the business organization, and its members of staff (Thompson, 2008). Furthermore, the culture of an organization will develop across different aspects of the operations of a company, and this includes the social behavior of the company (Martin, 2002). Social culture involves the manner in which employees of the business organization interact with one another. This is throughout their course of work or day. For example, there may be an existence of a common area that is preferable for conversations regarding topics that are outside of protocol or work (Ashkanasy, 2000). Employees of the organization may be the people responsible for developing this type of culture. As new people are brought in, they would try to adapt to the cultural practice that is in place, or introduce a different cultural perspective. This is fo r purposes of determining how they would interact with their fellow work mates. Therefore, organizational culture plays an important role in affecting the development, efficiency and effectiveness of a team within an organization. Leaders of an organization are responsible for developing the culture of an organization. This is through their experiences. Top managers of an organization will surround themselves with important members of a team (Lee, 2011). They would rely on these members to perform a variety of activities that supports the goals and beliefs of the organization (Dixon, 2000). It is possible to reflect this culture to any activity of the organization, i.e. the office dà ©cor, cubicles that separate the work place of an individual, the method of communication between employees, work place eating habit, etc. The details of this kind of a culture may become evident, based on the style and frequency which the management of an organization communicates it

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Success of Kennedy Administrations in the Cuban Crisis - Essay Example During the public stage of this situation, low-level reconnaissance missions on a two hour basis were eventually ordered by Kennedy. Then, on 25, Th the quarantine line was pulled back, increasing the levels of DEFCON’s military readiness. Later on, Khrushchev Soviet’s then Premier wrote a letter proposing the removal of Soviet missiles and personnel only so that the U.S. would assure them that they would not invade Cuba, and this was on 26th. However, 27th October was regarded as the worst day of the crisis because a U-2 which was flying over Cuba was shot down with Khrushchev, making another demand which was the removal of missiles belonging to the US, which were situated in Turkey in return for their missiles in Cuba. This was also through a letter where the Attorney General Robert Kennedy later on, suggested that they agree with the first letter only. Finally, tensions eased from 28th October when the Soviet agreed to dismantle their missile installations and remova l of light bombers from Cuba as long as the US would not carry out a military invasion of the Island.During the public stage of this situation, low-level reconnaissance missions on a two hour basis were eventually ordered by President Kennedy. Then, on 25, Th the quarantine line was pulled back, increasing the levels of DEFCON’s military readiness. Later on, Khrushchev Soviet’s then Premier wrote a letter proposing the removal of Soviet missiles  and personnel only so that the U.S. would assure them that they would not invade Cuba.

Business to Business Assignment Example | Topics and Well Written Essays - 2250 words

Business to Business - Assignment Example The paper tells that trade or business has always been one of the vital factors that have regulated the growth and development of any civilization. It has not only helped in the advancement of civilization but also been instrumental in the process of globalization. However, with the passage of time, the process of globalization and modernization has brought significant changes in the social, cultural and economic aspects of human race. The most significant change can be observed in the field of technology which has dramatically altered and influenced the business activities. The process of globalization and modernization has made the global business environment very attractive with business organizations being able to access overseas markets with least constraints compared to earlier times. However, on the other hand, due to globalization, the global business environment has become much more competitive with the introduction of free trade policies. . In this regard, Hope and Maeleng have identified free trade policy as a â€Å"competition-enhancing device†. In order to cope with this increase in competition, business organizations are constantly trying to bring in a number of improvements in their business activities and hence, they clearly identify the importance of business activities and associated stakeholders. Business related transactions can happen between any two individuals, or government and non-government organization. In this age of technological advancements, business organizations are trying to maintain transactions in electronic medium. The use of internet backed technologies like e-commerce has revolutionized all types of business transactions, be it business to business or business to customer transactions3. Relevant Literature In the post-modern business scenario, business models have been transformed with the changing nature of the business environment. In order to survive in the market, business organizations are constantly trying to incorporate technological advancement in their business process. E-commerce and e-business are two most vital technological advancements in this field. There are a number of reasons that has initialized such technological advancements. Barbara Parker has identifies major factors that brought such technological changes in the business process. Some of them are like increased process of innovation through research and developments; necessity of developed working process and lifestyles; demand for better interconnectivity in global market etc4. Due to these initiatives, the business organizations are currently enjoying better leverage for growth and development. The nature of the business model in an organization depends on the nature of commercial activities that they are engaged in. A business to business transaction is one in which a business organization interacts with another business organization. Example, in the case of manufacturers of automobile parts, they will be dealing wit h other automobile manufacturers who directly supply finished products to the market for sales... However, the company that buys automobile parts from another company and delivers the final product to the customer, is engaged in both commercial transactions, business to business and business to consumers. The primary focus of this paper is on the business to business commercial transaction and hence, the analysis and discussion aim to cater the same. Many post-modern organizations are incorporating latest technologies to enhance the value of their business by offering better customer services. In the process of business to business transactions, technologies like e-business and e-commerce influence the value chain of the company as the traditional value chain transforms to a new upgraded one. Value chain of a business includes its primary and supporting activities. The incorporation of e-business technologies in

What Made Amitaba Buddha's Pureland Speical to Sentient Beings Essay

What Made Amitaba Buddha's Pureland Speical to Sentient Beings - Essay Example However, Pureland Buddhism exalted the idea that even people who had no special knowledge could eventually one day reach the purelands if they had the desire to reach them. Pureland Buddhism stresses that â€Å"†¦ordinary beings are not born in a land of [a buddha in his body of] glory [because they have not ... can earn this distinction if they take refuge in the Vows of Amitabha Buddha and aspire for Birth in his Pure Land†¦Ã¢â‚¬ 1 This is a revolutionary concept because usually it has been necessary for someone to devote his or her life to religious practice before one can become an arhat, or person who is a foe destroyer. A foe destroyer is basically a person who has cleansed himself of all delusions, any hatred, and any greediness. Once the person becomes an arhat, he or she is enlightened and has reached the pinnacle of his or her spiritual practice. What is so amazing about Pureland Buddhism is that one can reach the stage of nirvana in Pureland practice, without h aving to be an arhat. This is significant because it was previously thought, in many situations, that a person would have to dedicate his or her entire lifetime in order to attain the worlds of the purelands available. However, it is now known that one need not be anyone special or revered in order to attain buddhahood in Pureland Buddhism. Simply the desire to want to have that knowledge grants the person to reach the purelands. Any ordinary, feeling or â€Å"sentient† beings have access to the Purelands if they so desire. That leads one to the next point. As long as someone had not committed one of the five inexpiable sins in Buddhism, reaching the purelands was possible for an ordinary person. These five inexpiable sins—which are basically sins that cannot be atoned for—include the following: 1) killing one’s mother; 2) killing one’s father; 3) killing an arhat (foe destroyer); 4) drawing blood from a tathagata (a buddha’s body); and 5) c ausing dissension within the sangha (the spiritual community). These are sins that cannot be forgiven. As long as none of these sins have been committed, the person is still able to achieve getting to the level of navigating any purelands through which the person desires to travel. Sentient beings, feelings beings, therefore, must not commit any of the five inexpiable sins in order to be able to attain the level of entering into the purelands. Anyone who had right intentions as a sentient being also was able to access the purelands with his or her own mind. Multiple worlds lay just beyond the reach of the ordinary person whose heart was in the right place. As such, that is how Pureland Buddhism differs from other branches of Buddhism. â€Å"[T]he most important statement of the buddha's covenant with sentient beings [was] promising to bring them to his Pure Land if they have the right attitude†¦Ã¢â‚¬ 2 In Pureland Buddhism, what is most essential is a person’s intentio ns. If the seeker has the right attitude, and he or she has a pure and good heart—it is much more likely that the seeker will find what is being searched for, which are the purelands. In search of the purelands, it is thought that anyone who sincerely has the desire to attain them will indeed be able to access them—not including those people who have committed any of the five inexpiable sins. In order to have proper intentions, it is important that the seeker purify his or her mind and make sure that his or her heart has only good and true intentions. That means that he or she is honest with everyone in every sense of the word. Some people are truthful but they are emotionally

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Noam Chomsky's Theory of Universal Grammar and Development of Language Abilities in Humans - Coursework Example   According to Chomsky, the process of language acquisition is genetically programmed and occurs as a consequence of the complex mental processes in the human brain. Simply stated, individuals possess inherent abilities and capacities, needed to understand the principal rules of grammar and apply them to construct meaningful sentences.Ample evidence supports the Chomskyan thesis. A profound analysis of language typology by Herman (2009) shows that all languages within and beyond the Austronesian group exhibit the same grammatical characteristics and operate the same list of grammatical conventions. These conventions reflect the ways, in which sentences in different languages are constructed (Kay & Fillmore 1999). Crain (2009) uses disjunctions to show, that children have a grammatical view of language different from that of adults, meaning that they develop their language structures, based on the a priori knowledge of grammatical rules. That the changes in language do not prevent c hildren from acquiring and learning it is one of the principal arguments in favor of the UG thesis. However, not all scholars readily agree with this viewpoint.Language diversity refutes a belief in grammatical universality across languages. The absence of certain grammatical categories in different languages further challenges the UG viewpoint. Ultimately, the UG thesis itself is a result of the lack of observational and analytical skills in professional linguists.The current state of literature does not fully support the UG thesis but does not reject it. Objectively, Chomskyan theory exemplifies one of the essential dimensions of scholarly research into English grammar and other languages and creates a foundation for future linguistic research. Even if Chomskyan universal grammar theory seems to neglect the differences between languages and the cultural/ social factors affecting language development, it operates strong arguments supporting the generalization and standardization of grammar patterns across languages. Apparently, future research must concentrate on the investigation of genetic mechanisms and their role in first and second language acquisition by English learners.

Human Service Profession- Mental Health Counselor Essay Example for Free

Human Service Profession- Mental Health Counselor Essay Counseling has a major emphasis on prevention. Mental health counselors work with individuals and groups to promote optimum mental and emotional health. Counselors may help individuals deal with issues associated with addictions, substance abuse, family, parenting, marital problems, stress management, self-esteem and aging. Mental health counseling brings a unique approach to the mental health care professions. People who receive such counsel are labeled unhealthy, wrong or ill (Smith, Robinson, 1995, p. 158). The goals of a mental health counselor are based on specific principles. The basic principles are responsibility, autonomy, client and consultee welfare, mis-representation, consultant-consultee relationship and confidentiality. Counselors believe in the basic human need and the potential for emotional and intellectual growth of their client system and consultee. 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If the client and consultee result in any difficulties the consultee may revoke his practice with the client. Remuneration is the question of payment between the counselor and client. This standard will safeguard the best interest for the client and counselor. The consultant and the consultee relationship is a well excepted concept in the cousultation practice. It is often difficult to slip into a therapist role, but the counselor must maintain a professional role of his specialty. Such a relationship on a personal note, could destroy the goal of helping the client. Confidentiality is another principle counselor’s use. Confidentiality agreement upon the counselor and client is specific information that cannot be shared with any other parties, unless a written agreement is signed upon. It is in the process of building trust between the client and the consultee to safeguard any information between any other parties (Fanibanda, 1976, p. 550-552). Mental illness effects a wide array of the population. The population consists for different races, sex, social class, and criminals that are effected by mental disabilities. Social class is one of the most common characteristics of the mentally ill. The social lower class is linked to more serious cases for the development of the mentally ill (Fox, 1990, p. 344). Mental illness is the primary cause for the homelessness. It is estimated between 72 and 82 percent of the homeless are mentally unstable, based on an Australian study (Johnson, 2011, p. 29-30). Presently it is whether minority groups are disproportionately represented among the mentally ill, but minority groups such as African American and the Latino population appear not to suffer from this as much as the Caucasian population. This is a surprising fact due to that more minorities are exposed to more risk factors. Minorities tend to be relatively poor, and lack resources to prevent social and vocational disability and to promote long term recovery (Snowden, 1997, p.236). The criminal population is another amongst the mentally ill. People with a mental illness are three times more likely to become incarcerated than be admitted to a psychiatric facility. Correctional institutions have become the largest providers of mental health treatment in the United States. Statistics show that 14.5% of male and 31 % of female inmates have a mental illness. Mental disorders can arrange from schizophrenia spectrum disorder, schizoaffective disorder, schizophrenic form disorder, brief psychotic disorder, delusional disorder, psychotic disorder, bipolar disorder, major depressive disorder and depressive disorder (Gross, 2013, p. 175). Counseling is not only received by the mentally ill, it is also received by people dealing with stress. It can be stress of a new job, relationships, family, finances, and addictions just to name a few. Many people that even consider themselves normal and stressed receive counseling. Many of these people seek counseling because it has a high effect on health. Health problems such as chronic heart disease, depression, and psychomatic illness (Brown, Brooks, 1985, p. 860). Mental health counseling is a treatment on its own, while other forms of mental disorders can be treated with medication. Mental health counselors are readily available for face to face treatment or even over the web. Over the web counseling is often easier for clients because of travel needs. Many would argue that e-counseling is not as efficient as face to face, but 90% of clients that have used e-therapy said it worked (Alleman, 2002, p. 199). As stated before counselors try to provide prevention with clients. Prevention means the confronting and lightening the major cause of mental disturbance. In the mental health field, demands for examination of moral and scientific beliefs and begin to take action for change. One on one treatment even if successful, is not considered prevention. Public health teaches that no mass disease or disorder has ever been controlled or eliminated by individual treatment or an increasing number of therapists. However for individual therapy it is proven to lower individual emotional disorders. Treating clients and preventing emotional disorders are done reducing or eliminating the noxious agent, strengthening the resistance of the host, and preventing the transmission of the noxious agent to the host. The principle of the noxious agent is str ess. All stress that leads to an emotional disorder is unwanted (Albee, 2013, p.37-40).

Investment Banking Interview Essay Example for Free

Investment Banking Interview Essay Standard Questions: 1. Walk me through the highlights of your resume. What is your story, walk through the decisions you have made, and how that relates to your current interest in Investment Banking.. 2. Why investment banking? Why our bank? 3. How do you value a company? 4. To what extent have you created and used financial models before? Discuss your excel modeling skills. 5. Why did you choose McCombs? 6. What other firms are you interviewing with and why? Are you interviewing with consulting firms also? What career opportunities are you exploring other than I-Banking? 7. What were your grades in college? What were your grades for the first semester at McCombs? What was your GMAT score? 8. What qualities would you consider most important for a career in I-Banking? What are your greatest strengths? What are your weaknesses? 9. What do you understand the responsibilities of an associate/summer associate to be? 10. Describe a current event in the market (i.e., LTCM at the end of 1998)? 11. What questions do you have for me? Always have at least two questions prepared per bank. Resume-and personality questions: †¢ Why should I take you instead of someone from Wharton? †¢ Why should I pick you over the other qualified candidates at McCombs? †¢ What made you choose your undergraduate institution? Why did you pursue a major in _____? †¢ What was your favorite class at McCombs so far? Why? †¢ What classes are you currently taking to get ready for the summer? †¢ What are your 5-10 year long term career plans? †¢ What are your proudest accomplishments? What is your most challenging professional experience? †¢ Are you a leader or a follower? Give me an example where you were successful in both roles? †¢ What do you do to relax? †¢ Tell me a joke. †¢ Who has influenced you the most, besides family members? †¢ Say you are at a meeting with a client and your MD is giving a presentation. You suddenly notice a mistake in some of the calculations, which you have prepared. Do you mention it? When? What do you say? †¢ What is one skill that you think is most relevant to Banking? †¢ You seem to like marketing, why are you interested in finance? †¢ What is one word that describes you best? †¢ How would your groupmates describe you? How would you characterize yourself in the group dynamic? If I spoke with your groupmates, what would they say you needed to improve? †¢ Highlight your quantitative accomplishments. †¢ Describe an ethical decision you had to make? †¢ What do you read? Whats your favorite book? †¢ As an associate, what tasks would you like to spend most of your time doing? What percent of each day do you see yourself spending on those tasks? †¢ What is in a pitch book? †¢ What’s been your greatest challenge since beginning McCombs? Greatest accomplishment? †¢ Describe a time you failed, why did you fail, what did you learn? †¢ Describe a time you had to work with someone you didn’t like, or with a difficult person. Finance questions: †¢ What is a LBO? Why lever up a firm? †¢ What makes an attractive LBO? †¢ From a Private Equity firm’s perspective and from a modeling perspective: What are the 3 inputs that matter for an LBO Model? o Answer: Leverage Ratio, Equity Contribution, Estimated Returns, †¢ Why might a company choose to issue debt vs. equity? †¢ What could a company do with excess cash on the balance sheet? †¢ How would you calculate a firms WACC? What would you use it for? †¢ What does Beta mean? Where would you find a firms Beta? How and why would you unlever a Beta? †¢ What is the CAPM? †¢ How do you calculate the firm value for the following firm? †¢ What would greater impact a firms valuation, a 10% reduction in revenues or 1% reduction in discount rate? †¢ What major factors affect the yield on a corporate bond? †¢ How would you evaluate the creditworthiness of manufacturer with three factories in different locations throughout the US? †¢ Company A trades at a P/E of 20. Company B trades at a P/E of 10. Both are considering acquiring Company C, which trades at a P/E of 15. For which of the two acquiring companies would the deal be dilutive. For which would it be accretive? Explain why for each. †¢ Suppose you are buying a new fixed asset part cash and part debt. Talk through how it affects all the financial statements. Financial market questions: †¢ Where is the market going? Bond, equity and foreign exchange? Where do you think interest rates will be in the next 12 months? †¢ What happened in the markets in the past three months? †¢ Do you read the Wall Street Journal everyday? Whats on the front page today? †¢ What industry do you follow and what numbers do you look at to determine if a firm is doing well in the industry. Accounting questions: †¢ What are deferred taxes? How do they arise? †¢ What is working capital? How would you calculate it? †¢ What is EBITDA? Why is it so widely used as a proxy for Operating CF in the financial sector? †¢ Say you knew a companys net income. How would you figure out its cash flows? †¢ Walk me through the 3 major financial statements o What are the major line items of a Cash Flow Statement. o What is the difference between the balance sheet and the income statement? †¢ What is goodwill? How does it affect net income? †¢ A firm is using LIFO, and the COGS start decreasing. What are effects on I/S, BS and CFS? †¢ What is the difference between Purchase and Pooling accounting? Under what circumstances would you use one or the other? Questions on Investment Banks: †¢ Do you understand the lifestyle issues associated with this proffesion? Why dont you have an problem with these issues? †¢ What is your greatest concern about investment banking? †¢ Why I-Banking vs. Consulting? Sales Trading? Research? Finance in Industry? †¢ How does your past career qualify you for a position in investment banking? Why are you not going back to prior career? †¢ What do you hope to accomplish over the summer? †¢ What department do you want to work for inside I-banking and why? †¢ Who is in the bulge bracket? †¢ Rank firms on Wall Street and where do we fit? Who is our competition (in the major categories)? What differentiates our firm? What are our firms strengths? Weaknesses? †¢ If you were the CEO of our firm, what major changes would you implement? †¢ Describe a typical day of an investment banking associate? Technical Questions: †¢ What makes a proposed acquisition accretive? †¢ Suppose a proposed acquisition is accretive, how would you make it less accretive? †¢ What are the main factors in determining if a deal will be accretive or dilutive? †¢ Walk me through how the purchase of equipment effects the 3 statements. †¢ Walk me through the effects on the 3 statements given that a firm has to retroactively change the method of depreciation for last year’s financial statements. Previously, the firm’s fixed assets carrying value was $100M, with no salvage value, an estimated useful life of 10 years, and straight line depreciation. The salvage value has been determined to be $50M, but the useful life of the asset and method of depreciation has not changed. o Effect on Cash? Cash Flow Statement? †¢ What is the different factors to consider when choosing between Enterprise Value and Equity Value Comps? †¢ When you are trying to scale down the number of firms in your selected Comp universe, what would you look at to decide which Comps to include and which to pull out of the Comp universe? †¢ What types of discounts/premiums would you apply after determining valuation based on a Comp valuation? Why?

The Implication of creative accounting on the firms

The Implication of creative accounting on the firms This project will explore several definitions of creative accounting and the range of reasons for a companys directors to engage in creative accounting. It explores the nature and occurrence of creative accounting practices within the context of ethical considerations. In addition, it considers the various ways in which creative accounting can be found and summarizes some empirical research on the nature and incidence of creative accounting. The role of the auditors in detection creative accounting is discussed, drawing evidence from several empirical studies. Then, it will illustrate the source of data, the sampling method and the data analysis technique that had been chosen for this research. Finally, the paper concludes with the analysis of possible solutions for the creative accounting problems. Chapter 1 Introduction Manipulation of financial information is known by several terms. In USA the preferred term and widely used is Earnings management whereas in Europe the favored term is Creative Accounting and also this term will be used in this study. The term can be defined in different ways. However, primarily it is a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business. Further definition will be explored later in this paper. Creative accounting occurs when managers involve in changing the accounting figures to alter financial reporting. The motive behind the alteration is either to mislead stakeholders about the poor performance of a company or attract new contract and investment that depend on figures in statements. This research will apply the previous study in some scandal cases, such as Enron to find out whether it has same motive as mentioned by other authors. In addition, it will show the way in which managers have used creative accounting to committed fraud. The rest of study is organized as follows. In chapter 2 the literature is reviewed to pinpoint certain definition of creative accounting and explore the motives behind creative accounting. In chapter 3 the research method is employed to identify the relevance of creative accounting to Enron annual reports. In chapter 4 the paper will discuss major finding, recommendation and conclusion of the study. In chapter 5 different sources of the study will be listed including articles, journals and so on. Rationale of study: Many fraudulent cases had been found in the past few years. These scandals had been made by directors and managers of the organizations. There are numerous victims who suffered from misuse of the position starting from shareholders, going towards employees and end up with societies. Although most of these organizations have been audited by external auditors, the fraud has been occurred within the firms. This is because the auditors give only a reasonable assurance of their view on the financial statements and even some of them involved in fraud like Arthur Andersen. There are many people who are still not aware of how the company may use creative accounting in manipulate the accounting figure and hence committed fraud. This paper will explore the ethic and the way of using creative accounting providing with practical example. Aims and Objectives: To understand the meaning and explore definitions of creative accounting. To explore several reasons or motives of the using CA by companys managers. To list and explain the techniques of creative accounting. To understand the role of auditors and responsibilities in deduction of CA. To identify whether the auditors (both external and internal) play role in minimizing the CA in corporation. To find out the implication of CA on the countrys economy. Limitations of Study The research had successfully obtained the financial statements of Enron Corporation for four years started from 1997 till 2000. However, there was failure in collection the adjustment reports figure except for income and long term debts. These missing figures might be important to use in methodology for accurate judgment. Furthermore, the time to accomplish this study was slightly short to collect some important data for this research. Chapter 2 Literature Review There are various scholars who defined creative accounting (CA) in different views. These are as follows. Involves the repetitive selection of accounting measurement or reporting rules in a particular pattern, the effect of which is to report a stream of income with a smaller variation from trend than would otherwise have appeared. (Copeland, 1968) Is any action on the part of management which affects reported income and which provides no true economic advantage to the organization and may in fact, in the long-term, be detrimental. (Merchant and Rockness, 1994) Whereby the true financial performance of a company is distorted by managers for private gains (Klein, 2002) It has noticed that although scholars from different decades had defined the CA, they agree the basic concept of CA which is use knowledge of accounting rules to manipulate accounting figure to show the faulty result of the organization performance. The reasons and motivations of creative accounting Various authors have studied about the issue of management motivation towards creative accounting. There are many reasons. One of these was mentioned by: Shafren (2009) concluded based on his analysis of Satyam Company that the stakeholders are interesting on companys financial statements because there are mean to show how the firm is performed and its position in market. Therefore, managers try depicting these figures in such way to send positive indicator to the investors. The investors always attracted if annual statement is superb. Thus, to express this view mangers aim to modify the statement by means of tricks of CA. In other hand, the directors also have their own reasons as their bonuses may decide in proportion with the profit they made or reported. Lttner et al (1997) have also agreed that when the manger bonuses and stock options are depend on the company performance there is likely that the manager modify the figures upward to get the desired result. other motivation was mentioned by Dharan and Lev (1993) who Showed in their study of The valuation consequence of accounting charges that an organization used CA when its share price started to fall following the increase in share price which it reported previously. This reason arises when company face great pressure from a variety of obligations and constraints based on amounts reported in statements. For example: based on survey of US bank managers, they found that when a new bank manager hold responsible for an entity there is inspiration to adjust loan provision so he makes sure that any losses occurred by previous manager can be covered from this provision. Whereas Beatty and Harris (2001) said that mangers may manipulate the accounting figures in such way to reduce the burden of tax levies or to allow them to pay lowest possible income taxes by providing that the cost involved is less than the income tax benefit. Niskanen and Keloharju (2000) agreed in their research of earning cosmetics in a tax-driven accounting environment: evidence from Finnish public firms which is based on European companies that the corporate tax could be the reason for CA used by managers of the company. These are some of common motives for CA. However, the most noticeable motives are modifying the accounting figures to show positive indicator to investors and downward the firm income for tax purpose. Therefore, stakeholders should at least to be aware of these two areas. If there were more independent directors in the board then there will be less motivation or even it can be eliminated. Therefore, the best way in elimination this practice is not to know the ways that can be occurred but to appoint more independent directors. Techniques of creative accounting Largay (2002) wrote in his article of Lessons from Enron regardless of the high regulation exist in some countries like USA, the accounting environment afford great flexibility. The potential way for CA and the techniques can be found in certain areas. One of the techniques which can be used in CA as mentioned by Schipper (1989) is flexibility in regulation. He added in the article of Commentary on creative accounting that accounting regulation provides a great flexibility in choosing any policies that are set by International Accounting Standard Board, for example it allows the non-current assets to be valued either at historical cost or at revalued amount. Thus, if management decide to change policies of the company it may easy to deduct in the year of change but it is much difficult to be identified after sometimes probably after few years. Another point is the lake of regulation in some area existing in almost every country. AS it can be seen in Romania and Spain where there are few mandatory requirements for stock option and recognition of pension liabilities. CA can also be finding as the discretionary position of the management that may used in some items to obtain stability in financial position. This had explained by McNichols and Wilson (1988) that manager may decide to increase or decrease the provision of bad debts to adjust the desire result. The timing of some transactions also offers mangers the opportunity to increase the revenue and give an impression result when net profit is not adequate. For instance, company has an investment in historical cost which can be sold at current value (i.e. at higher value) where operating profit is showing an adverse figure. The third technique mentioned by the author is the artificial transactions that are usually use to manipulate balance sheet amount or to move the profit figure between accounting periods. This can be achieved by entering the related transactions with third party like a bank. Suppose an arrangement had made with bank to sell the asset to bank and lease back the same asset for the entire of its useful life. The arrangement consists of selling the asset at lower or higher value than i n an uncontrolled transaction and the compensation is from the difference of rental price. The another technique had explained by Gramlich et al (2001) in which they said that firms may attempt to manipulate balance sheet in order to change the liabilities classification to improve liquidity ratio. Most of time this manipulation is occurred to improve the investors perception. Although there is not much difference between 298 million and 301 million, investors perceived the latest amount more than the earlier one. The International Accounting Standard had been created to reduce or even eliminate the accounting fraud that is occurred by the management of the organization. However, sometimes IAS unintentionally play role in committing fraud by providing different ways of treatment of an item in financial statements. All of the techniques have one motive which is to makes FS more attractive on the view of stakeholders. The role of auditors and their responsibilities After many alleged scandal cases occurred in last decade, many individuals, such as shareholders have lost confidence on the audit firms. They are wondering the responsibility of the auditors in deduction the fraud and whether they played key role in committing fraud. According to Audit Committee Institute (2007) auditors should be aware of all circumstances that lead the firm to face a pressure from both within and outside the organization and thus, encouragement firm to involve in inappropriate earnings management (creative accounting). The independent audit should be often alert of the possibility occurrence of CA and should deeply understanding the companys processes in modifying accounting policies, estimates and judgments in order to assess these processes. Donaldson and Palmer (2003) were mentioned in conference the role that auditors played in accounting scandals of Enron and WorldCom. The auditors failed to resist pressure faced by the manager and therefore, accept the misleading financial statements i.e. they involved in fraud. Auditing may depend on external sources to verifying data. However, if the employees of the company have an intention to defeat the auditing function, they can cooperate with individuals outside the company, so even the best auditors will be unable to protect investors from such conduct at all cases. The role of auditors in minimizing the CA in the firm It had mentioned above how the auditors were involved in corporate scandal. However, internal and external auditors are also play role in at least to minimize these scandals when the audit standards, accounting standards and ethical code of conduct have been properly used. Ebrahim (2001) had mentioned in his study of Auditing Quality, Auditor Tenure, Client Importance, and Earnings Management: An Additional Evidence how the quality of auditors can be effective on earnings management or CA behavior. He used sample that listed in NASDAQ, NYSE and AMEX. The data was collected for 9 to 11 years. The sample included only the firms with fiscal year ended i.e. December 31. He found that the quality of auditor and the firm size had no relation with creative accounting. Amat et al (2008) argued in their empirical study of Earnings management and audit adjustments: An empirical study of IBEX 35 constituents the view of Ebrahim (2001). The sample of the study was collected from IBEX 35 index (Spain). It had collected a sample size of 42 companies for period between 1997 and 2004. The study attempted to explore the role of auditors in prevention of the creative accounting practice. As the result, this study had supported the significant role of auditors in financial market particularly in the prevention of CA practice. Clikeman (2003) mentioned in his journal of Auditors on Alert for Earnings Management that the external auditors are not only the staff who detect the CA practice but the internal auditors also have a duty and role in prevention such a practice and to comply with various requirements of the standards and Acts, such as Auditing standards and Sarbanes-Oxley Acts. The internal auditors have many measurements available to assist them in detection unethical practices. the trend analysis to find out extraordinary variations in revenues and expenses and cutoff testing which enables to monitoring sales and purchases in income statements of the company for the years end. These are some of the tools available for the auditors to detect any suspicious occurred and reported to the board. Director should be the one who should detect fraud at the first place as he is in position that allows him to access to every single part of the business. Thus, the government and the regulatory should have to improve the rules of the board of directors and management teams rather than focusing only on the auditors responsibility. Although there are many regulations for the auditors to conduct their work efficiency, there were many corporate scandals cases recently. This indicates that there are still some weaknesses in these standard and regulations. The implication of CA on the countrys economy Everyone is concerning about CA including analyst, regularities and government due to its impact not only on the firm but also on the countrys economy. The previous studies had found that the CA has a negative effect on the economy as a whole especially when it leads to large corporate scandal. One of the recent articles of these affect was by Hugh (2009). Hugh (2009) explained in his article of Creative Accounting and Italys Growing Unemployment Problem how the CA affected the Italy economy. He mentioned two types of unemployment benefits that are available in Italy. The Ordinary Redundancy Funds which applies in uncertain event, such as market crises and the Extraordinary Redundancy Fund that available in the case of bankruptcy. To benefit from this scheme, Companies cheating different states by sending their employees home under redundancy procedures and then informally re-employment and paying them under the table. The procedure will allow the firm to pay only 30% of the salary and remain will be paid by the state government. This is lead to the Italian underground economy around 15% of the total GDP for the state i.e. à ¢Ã¢â‚¬Å¡Ã‚ ¬ 300 billion per year. The firms might benefit from the aid but they are distorting the market and discouragement the future of more productive companies. Others like Bernoth and Wolff (2006) had found in their study of Fool the market, Creative Accounting that the CA increases the risk premium. They used the portfolio model of five interest differential and modified it to investigate the implication of CA on bond yield spreads between countries. The modifying process of the model had carried on by assuming that the government might used CA to make the observation of financial position of the country difficult to observe. They found that when the country discloses transparent information, the CA increases the cost of borrowing significantly (if it becomes known) especially in the case when the market is unsure the extent to which the CA exist. On other hand, Sopelsa (2010) warned in his article of US Creative Accounting could repeat Greek Tragedy that US could face the same problem as Greece heavy debt if it does not control its spending and deal with its structural deficit. This is due to the engagement in CA for years by USA similar to those that occurred in Greece. The US government did not secure the Federal Reserve and government sponsored entities, such as Fannie Mae into its financial statements. As the result, the total debt to GDP had reached to 85 percent and may going to be at 100 percent in two years. Thus, the situation would be worsening if it goes to the foreign loans. The government has to impose tight budget control, alteration social security, deal with health care costs and restructure tax system to generate more revenues. The CA would lead to economy bubble in country like US as had mentioned by Sopelsa (2010). Instead of blaming the audit firms or the companies that had been got into hot water (involved in scandal), the government should concern first why it is happening. Unfortunately, some governments are aware of what happening neighborhood or far away country but they do not see the problems in their own countries. They already knew the danger of the CA; therefore they have to find solution to avoid the fraud in the future. Chapter 3 Methodology This paper is restricted to secondary data that had collected from various source including journals (weekly and quarterly), articles, news paper, magazine, financial reports and so on. It had reviewed certain literatures which were collected from different sources (as mentioned above). Later in this chapter, the sampling, data analysis and presentation will be explored. Sampling of companies and Data collection The researcher verified a major accounting scandal that had been occurred last decade, such as Enron, Freddie Mac, Halliburton, Merrill Lynch and the recent case of Bernard L. Madoff hedge funds. These samples were randomly chosen from various cases. Last but not least, among these alleged fraud one sample had been selected which is Enron Corporation. The financial data of Enron was collected from its annual reports from the year of 1997 to 2000 (see appendix). 3.2 Data analysis and presentation The Enron Corporation US Energy Company was commenced in 1932. It became as a group of company in 1979. It employed approximately 22,000 staff in over 40 countries worldwide. It ranked in Fortune 500 as seventh largest company that operated in American, sixth largest energy Company and one of the leading company in communication, paper and pulp in the world with reported revenue more than $ 100 billion. In late 2001, Enron forced to fill up chapter 11 of bankruptcy protection after disclosed fraud and being sued by investors and creditors to claim their privileges. It was one of the largest bankruptcy cases in the US history. According to Holmes (2006) Kenith Lay (CEO of Enron) used creative accounting as a way to modify reports that allowed them to create artificial shortage by increasing prices about ten times. In this paper the financial ratios will be used to illustrate the affection of CA on companys annual reports. The ratio will be analyzed for 4 years from 1997 to 2000. Enron net income should be reduced in 1997, 1998, 1999 and 2000 by $96 million, $113 million, $250 million and $132 million respectively. It was also found that companies long-term debts should further added to the one which had reported previously. By the end of the year 1997, the additional debt should be added to give the total of $14103 million. Similarly, the extra amount of $ 561 million and $685 million should be included in 1998 and 1999 respectively to reflect the actual long-term debts of the company. The company should also add the amount of $628 million in 2000 to adjust its debts figure. These balances can be seen as follows: These were the major items which required adjustments (there were other adjustments which were not taking into account in this study). Next, it will show how the some ratios affected by these adjustments. Although the gap between the reported amounts is not much different from the adjustment balance, it is significantly important after cumulatively adding these differences for the years. Furthermore, these are information where only available at the time. There are additional adjustments required in balances for some other items, thus the gap will further increase between the reporting and adjustment balance. It can be found that the major change was in return on share capital which had reached to 2.6% of the gap between the two balances in 1999 (look to the above table). The gearing level was high especially in 1997. This indicated that company had too much debt. The debt level decreased significantly in 1999 to 65% after the adjustment that might gave to company a little hope to overcome the problem but its gearing level had increased again approximately to 70% in 2000. This explained why Enron had used CA as it wanted to hide what was going in the company. 3.3 Data presentation The below bars chart are an illustration of affection of the CA on the companys balance. 3.4 Finding It had been founded that after the adjustments in income and long term debts, there were significant changed in returns on capital and in net profit. However, there were other figures that need to be adjusted, thus the affection will be even much greater. Therefore, it leaded to misguide the public by allowing them to think that the company was in good position and it was a good investment to them but actually it was suffering from heavy debts. This was one of the companies that used the CA practice. There were other companies that exercise the CA, such as Duke Energy. As the result, there was a significant negative impact on that industry which in turn had badly affected on US. The accounting manipulation that had used by Enron affected investors much greater that what had shown above as some bogus figures were not included in this paper. Chapter 4 Conclusion and Recommendation 4.1 Conclusion Many corporate accounting scandal cases had occurred since 1980. One of the earliest scandals was an Australian Nugan Hand Banks and the latest case of Lehman Brothers and Golden Sachs. Yet, the will be many accounting scandals may the world face if nobody try to improve the procedures to prevent the CA. The paper had discussed various issues regarding to creative accounting. It had explained why the companys directors involve in CA to commit fraud. The most common reason is the one that mentioned by Dharan and Lev (1993) and it said; when the company wants to increase its share price. The paper had explained some of the techniques of CA which can be used by the firms including changes in accounting treatment, adjustments in provision of bad debts, movements of the figures between the accounting period and many more. It had also discussed about the responsibility of the auditors, especially external auditors, in corporate scandal and how to detect the potential fraud. In addition, it had also explained the role of the auditors in minimizing the risk of CA by disciplinary following the audit standards and some other regulations. The quality of auditors is also play important role in detection the fraud. Finally, the literature review warned the affection of CA on the economy. It had found that in some cases the CA increased the rate of interest and it would lead to heavy debt burden to country that exercising CA as what happened in US. Moreover, it would affect the GDP as in case of Italy. In methodology, it had talked about the sampling and from where the data was collected. Then, it had analyzed annual report of Enron Corporation form the year 1997 to the year 2000. It had found the earnings of the company that reported were difference from the one after adjustment. As the result, it had given a bogus report to the stockholders. 4.2 Recommendation Many issues had occurred because of the CA, some had already mentioned in this paper and remain were discussed by the others. Some are blaming the auditors whereas others are saying it is the government responsibility. However, there are many people are involved in the CA. To overcome the problems of this practice, the researcher had given various suggestions from different point of view which can be seen below. From the investors point of view, they can follow certain steps to reduce the risk of CA. The investors should not depend only on companys financial statements in deciding of whether it is worthy for their investments. They should also seek for second professional opinion because sometimes the F.S accomplished with material misstatement. The investors should diversify their investments widely and not to keep them in one basket. Although it is difficult to eliminate risk, the investors can reduce such it through spreading their security into wide range of companies or even investing in other countries so if there is any loss in one company resulting from the practice, they will gain in another one. Therefore, the investors can make profit from their average returns regardless of some negative investment that included in portfolio. From the companies point of view, they should appoint more independent directors to take care of public interest, thus avoiding personnel interest. This would lead to the more honest in reporting of the company situation. I case if there is a tragedy event, they will solve it in prudent way rather than using unwelcome practices. They should also appoint qualified audit committee with high level of experience and honesty to detect the material misstatement that could occur in the F.S. Moreover, the audit committee will take all the necessary steps to prevent such fraud. Whereas from the governments point of view, it should select appropriate standards and follow excruciating punishment against those who breach the rules. In addition, although there are some countries not allowing the auditor firm to provide more than one service, there are some governments allow the firm to provide various services to its client. This should be avoided in each country. Chapter 5