Exam 1 Study Guide

Midterm 1 Practice Questions (Acct 201 Fall 2012) 1. Retained earnings at the end of the period is equal to a. retained earnings at the beginning of the period plus net income minus liabilities. b. retained earnings at the beginning of the period plus net income minus dividends. c. net income. d. assets plus liabilities. 2. Pinson Company began the year with retained earnings of $550,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson’s retained earnings at the end of the year? a. 910,000 b. $630,000 c. $1,010,000 d. $480,000 3. Patent would appear in which balance sheet section? a. Intangible assets b. Investments c. Property, plant, and equipment d. Current assets 4. A balance sheet shows a. revenues, liabilities, and stockholders’ equity. b. expenses, dividends, and stockholders’ equity. c. revenues, expenses, and dividends. d. assets, liabilities, and stockholders’ equit y. 5. For 2012 Fielder Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 12,000. There were no preferred stock dividends.What was the 2012 earnings per share? a. $2. 33 b. $0. 40 c. $33. 33 d. $2. 50 6. Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31, 2012 Cash$ 130,000Accounts Payable$ 140,000 Prepaid Insurance60,000Salaries Payable20,000 Accounts Receivable100,000Mortgage Payable 160,000 Inventory 140,000 Total Liabilities$320,000 Land held for Investment150,000 Land180,000 Buildings$200,000Common Stock$240,000 Less AccumulatedRetained Earnings 500,000Depreciation(40,000)160,000 Total Stockholders’ Equity$740,000 Trademarks 140,000 Total Liabilities and Total Assets$1,060,000 Stockholders’ Equity$1,060,000 a. $580,000. b. $430,000. c. $360,000. d. $290,000. 7. Using the following balance sheet and income statement data , what is the total amount of working capital? Current assets$ 14,000Net income$ 24,000 Current liabilities8,000Stockholders’ equity42,000 Average assets 80,000Total liabilities18,000 Total assets 60,000 Average common shares outstanding was 10,000 a. $ 2,000 b. $14,000 . $ 4,000 d. $ 6,000 8. Stockholders’ equity is increased by a. dividends. b. revenues. c. expenses. d. liabilities. 9. McKinney Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. What was their net income for the year? a. $207,000 b. $ 66,000 c. $348,000 d. $273,000 10. The purchase of an asset by paying cash a. increases assets and stockholders’ equity. b. increases assets and liabilities. c. decreases assets and increases liabilities. d. eaves total assets unchanged. 11. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Prepaid Rent c. Retained Earning s d. Common Stock 12. When a company has performed a service but has not yet received payment, it a. debits accounts receivable and credits revenue from services. b. debits revenue from services and credits accounts receivable. c. debits revenue from services and credits accounts payable. d. makes no entry until the cash is received. 13. When a company receives a utility bill but will not pay it right away, it should . debit Utilities Expense and credit Accounts Receivable. b. debit Utilities Expense and credit Accounts Payable. c. debit Accounts Payable and credit Utilities Expense. d. make no entry until the bill is paid. 14. In a service-type business, revenue is considered earned: a. at the end of the month. b. at the end of the year. c. when the service is performed. d. when cash is received. 15. The following is selected information from L Corporation for the fiscal year ending October 31, 2011. Cash received from customers| $300,000| Revenue earned | 370,000|Cash paid for exp enses| 170,000| Cash paid for computers on November 1, 2010 that will be used for 3 years| 48,000| Expenses incurred including any depreciation| 216,000| Proceeds from a bank loan, part of which was used to pay for the computers| 100,000| Based on the accrual basis of accounting, what is L Corporation’s net income for the year ending October 31, 2011? a. $184,000 b. $154,000 c. $152,000 d. $170,000 16. Boyce Company purchased office supplies costing $5,000 and debited Office Supplies for the full amount.At the end of the accounting period, a physical count of office supplies revealed $1,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: a. debit Office Supplies Expense, $3,600; credit Office Supplies, $3,600. b. debit Office Supplies, $1,400; credit Office Supplies Expense, $1,400. c. debit Office Supplies Expense, $1,400; credit Office Supplies, $1,400. d. debit Office Supplies, $3,600; credit Office Supplies Expense, $3, 600. 17. On January 1, 2010, Leardon Inc. urchased equipment for $45,000. The company is depreciating the equipment at the rate of $600 per month. At January 31, 2010, the adjusting entry would be: in Accumulated Depreciation is: a. debit Accumulated Depreciation $600 b. credit Accumulated Depreciation $600 c. cebit Equipment $600 d. credit Depreciation Expense $600 18. The closing entry process consists of closing: a. all asset and liability accounts. b. out the Retained Earnings account. c. all permanent accounts. d. all temporary accounts.

Differences Between Associate Degree Nurse and Baccalaureate Degree Nurse

DIFFERENCES BETWEEN ASSOCIATE DEGREE NURSE AND BACCALAUREATE DEGREE NURSE There are several benefits of having a baccalaureate-degree (BSN) over the associate’s degree (ADN). In this essay, I will discuss how effective communication can be further developed when obtaining the BSN. Next, I will talk about how a BSN can create a more highly qualified nursing workforce. Lastly, it will be explained that getting a BSN will create better career and higher education opportunities.EFFECTIVE COMMUNICATIONâ€Å"Communication is central to human interaction. Without it, people cannot relate to those around them, make their needs and concerns known or make sense of what is happening to them. One of the most basic goals for nursing staff is that their patients and clients and those who care for them experience effective communication†, (Wallis, 2011, p. 35). Effective communication can be further developed by obtaining a BSN and can ultimately lead you to be a better nurse, leader, and professional. Being a nurse of any level, you are communicating important information regarding the patient. If your report is not thorough, you may miss vital pieces of information pertaining to your patients care. It will build a more trusting relationship between your patients, co-workers and supervisors.HIGHLY QUALIFIED NURSING WORKFORCEBSN level nurses will provide a better program than the ADN level nurses with their increase level of critical thinking and using evidence based practice. â€Å"The American Association of Colleges of Nursing (AACN), the national voice for baccalaureate and graduate nursing programs, believes that education has a significant impact on the knowledge and competencies of the nurse clinician, as it does for all healthcare providers† (Fact Sheet, 2012, p. 1). The BSN increases knowledge in psychology, science, sociology, and management. The BSN applies the knowledge that they have learned. With the increase of knowledge in management, they will be able to prioritize and organize the workload of the patients.With the increase of science they will have a better understanding of how the body works and use critical care assessments of the patient with evidence based practice. This will improve patient safety and the care of the patient. The BSN nurses will be more educated in the differences in patient’s culture and way of thinking due to  their increase in psychology and sociology. BSN level will have better outcomes for the patient thus leading to lower mortality rates. â€Å"In the October 2012 issue of Medical Care, researchers from the University of Pennsylvania found that surgical patients in Magnet hospitals had 14% lower odds of inpatient death within 30 days, and 12% lower odds of failure-to-rescue compared with patients cared for in non-Magnet hospitals.The study authors conclude that these better outcomes were attributed in large part to investments in highly qualified and educated nurses, including a higher proportion of baccalaureate prepared nurses† (Fact Sheet, 2012, p. 1). As an example of a patient care situation, two men came into the ER with gunshot wounds, one to the leg and the other to the abdomen. The ADN nurse went straight to the man with the abdomen gunshot, not noticing the man with a gunshot wound to the leg was not breathing. The bullet had hit his popliteal artery; therefore he had lost too much blood to survive. The nurse should have done her quick assessment correctly as evidence based practice has shown. This goes to show that using critical care thinking and evidence based theory not only end in better outcomes but also can saves patients lives.HIGHER EDUCATION OPPORTUNITIESA BSN degree is essential if you want to move to a leadership or management role. Leadership skills are essential when you are a charge nurse, on a committee or in administration. A BSN education will provide you with confidence to excel in these settings. â€Å"The nationâ€⠄¢s Magnet hospitals, which are recognized for nursing excellence and superior patient outcomes, have moved to require all nurse managers and nurse leaders to hold a baccalaureate or graduate degree in nursing by 2013. Settings applying for Magnet designation must also show what plans are in place to achieve the IOM recommendation of having an 80% baccalaureate prepared RN workforce by 2020† (Fact Sheet, 2012, p. 3). One more advantage of baccalaureate-degree program is that it is a bridge for master’s degree level.CONCLUSIONBSN level nurses will provide a better program than the ADN level nurses. Critical thinking, communication, and leading are imperative to the nursing career. â€Å"Professionalism, ethical decision making, accountability, critical thinking, and effective communication are emphasized. This is achieved  through the application of liberal arts constructs, science, health and nursing theories, and the values of the Christian faith within the scope of nursing knowledge and evidence-based practice† (Philosophy, p. 1). Education is the key for success and better outcome of patients.

Questions Week 5 Essay Example | Topics and Well Written Essays - 1250 words

Questions Week 5 - Essay Example f literature include the understanding related with the topic under discussion, the literary settings under which the piece of literature is written and lastly the era in which the author or poet hailed from. This is an amalgamation of a number of different attributes – all of which contribute to the wholesome basis that we know as literature. It would not be wrong here to state that literature is dependent on a number of different variables, most of which belong from the correct narration styles and the manner in which characters relate with the story or poem. If there is a catch within the literary piece, it is most likely that the entire piece of literature could be termed as flawed right from the onset, which would essentially mar the fundamental basis of penning down and thus analyzing the authenticity of genuine literary works and indeed the concept of literature. Secondary sources are a useful tool of measuring the quality of literary works. This is because they relate to the quality literature time and again in different quotations and citations which are placed within these secondary sources. Thus there is a lot of room for understanding what exactly qualifies as a piece of literature that is of the highest quality possible and what is otherwise. One must comprehend the fact that secondary sources give a somewhat correct measure of the comparison that is done between these literary works as the choice of narrations is made pertinent all this while and the words that have been used are more or less in line with the demands of the events, happenings and situations within the poem or story so to speak. This essentially marks the make-up of the literature that we are discussing here. Since secondary sources are themselves a good judge of describing literature over non-literary and un-qualified work, they provide a better yardstick when it come s to comparing one piece of literature over another and vice versa. Secondary sources always depict the authenticity

Snowboarding down a ski slope in Colorado Essay Example | Topics and Well Written Essays - 500 words

Snowboarding down a ski slope in Colorado - Essay Example However, it never turned unattractive or unpractical. After undergoing the 3- year- old training program at the Copper Mountain Ski and Ride School, I decided last weekend that I should venture myself on a major snowboarding trip. What a wonderful experience it was! As I was half-way through my journey, downwards the chaste curves and virgin slopes in the Gunnison-Crested Butte Valley in Southwest Colorado, I felt I had missed a lot all these years. A possessive feeling gripped me that the snows should become my permanent home. strong feeling that, in an aerial view, it would pose the picture of a heavenly cone gifted to the Earth. I wanted to ask someone how he felt about it but people were away at some distance enjoying themselves in the snows. I gave up the idea and stopped for a while to explore the environs and feel its beauty. I could see innumerable slops and icy curves spread over a vast horizon of snows. Overwhelmed by its unending beauty, I sat down and pondered: why should God create this much beauty in this lonely place Why are the minds of people not as beautiful as the beauty of these snows Thinking that God must be having a reason for this kind of set up, I had casually spread my right hand down, leaning back.

America as a Christian Nation Essay Example | Topics and Well Written Essays - 1000 words

America as a Christian Nation - Essay Example And that they do it only by necessity. According to him "injustice is more profitable to an individual than justice." (360 B.C.) However, it has been a popular teaching in Christianity that God gave men free will. And according to C.S Lewis, it is that same free will that made evil possible. (1943) Men are then free to do good as well as evil. Therefore, because of this free will, in my opinion, it doesn't matter whether or not men are born just or not. Nor is the reason why men are unjust, whether by whim or necessity. All that matters is that men have the capacity to be unjust. And it is that capability for injustice that should be constrained, but how It has been argued that the best of all things is "to do injustice and not be punished," the worst is "to suffer injustice without power of retaliation," (Devine 2004) hence the middle ground is what we call justice as imposed by government. And I agree. I believe that it is the existence of the government that constrains this capability of evil. It provides for laws, renders judgment and imposes punishment. I agree with Rousseau when he stated that even if God did not have a hand on the legitimacy of the government, it is God that gave the individuals inalienable rights. (Devine, 2004) And this includes the right to form a unified body to govern them. You need not be Christian. You can be Muslim or Jewish. You may even call your God different names. But I think, if one believes that all men has inalienable rights, he or she must believe that there is a higher power bestowing that right. Because if the contrary was true, that there is no higher power, then men would be the highest power. We are all gods. I don't think that's right. If we are all gods, that would lead to chaos. As such, since the power of the American government emanates from the people, America as a nation must believe in a higher power, a religion. Why Christianity One main reason why America leans towards Christianity more than the other religions is because of history. We have learned in the readings that through conquests, Christianity was spread from Europe, to the American continent. However, there are also other religions brought by immigrants inside America. There is also the fact that there are many who prefers not to believe in any religion at all. But despite that, I still believe that America is still a Christian nation. Why Because of its teachings. No matter if you call yourself an atheist or declare that you believe in some other god, if you practice what Christianity preach, I call you a Christian. So what are these teachings Firstly, Christianity teaches us to be just, to respect and to do no harm to another. These are the basic virtues that lead to the very goal of our Constitution: the protection of life, liberty and property. Secondly, Christianity t

Business , fortune companies Research Paper Example | Topics and Well Written Essays - 1250 words

Business , fortune companies - Research Paper Example The road was long for Adolf, from a 15 year old orphan to working in a local brew station; this gave him his maiden thoughts. Water from the Rocky Mountains, as they say about it, has given Coors and collaborates a decent rise in the corporate world (Enz, 2010). Thus the only way they market their beer, a strategy that has won them a fortune. With no money and no job, Coors has continued to dominate the business corridors until 2005 when he joined ideas with Molson to stick their company as the fifth largest brewing plant in the world. As it dates today, Coors has an outstanding figure of $13.5 billion in assets and $6.2 billion in revenue. Hence Coors Brewing Company is an example of an immigrant’s success story. The virtues of timing, persistence, and smart investment have all worked for the poor Coors and his company. This is the reason why he is in the Fortune 500 U.S.A Companies. Molson Coors spreads its administration characteristics from the management makeup, operations, marketing, and financial structure (Plunkett & Plunkett, 2009). The company’s management structure starts from the President, who is the CEO of: Europe and Asia (Peter Swinburn) -Next in line is the President and the CEO of Molson Canada (Kevin Boyce) -followed by the Global Chief Financial Officer (Stewart Glendinning) -Global Chief People’s officer (Ralph Hargrow) -Chief Commercial Officer (Mark Hunter) -Global Chief Legal Officer/ corporate secretary (Samuel Walker) -Global Chief Synergies Officer (Cathy Noonan) -Global Chief Strategy and Commercial Officer (David Perkins) -and finally the Global Chief Technical Officer (Gregory Wade). As it is typical with many companies, Coors business process has seen it adopt a model of organization, which they call Coors Enterprise Process Structure (Enz, 2010). This has become the formal method and system of duty and reporting the relationship that ought to control, coordinate and

Employees contribution in customer satisfaction, customer retention Dissertation

Employees contribution in customer satisfaction, customer retention and customer loyalty in SME retail organization like SUPERVA - Dissertation Example The peripheral economies have not been able to restructure their economies and introduce reforms to enhance productivity and competitiveness of their economies. 1.1.2 The Irish Economy The Irish economy has been one of the most successful in the world but it has also been among the hardest hit during the economic recession (European Commission, 2012). Up to 2007 Ireland experienced strong economic growth and the living standards in Ireland caught up with the world standards. This occurred as more number of workers entered the labor market. Additionally, higher levels of education resulted in better productivity. EU being declared as a single market made Ireland an attractive destination for inward investments. Between 2002 and 2007 the economy experienced high growth rates but this was at the cost of the Irish households building up personal debts. The real estate sector surged forward to due to increase in bank lending. Due to this, the balance sheets of banks grew disproportionatel y large compared to the size of the economy. In addition to the deposit base, the introduction of the Euro encouraged short-term borrowing from overseas. Risky lending practices by the banks proved to be damaging for the economy and this was evident when the property bubble burst (European Commission, 2012). Because of these anomalies the Irish banks were vulnerable to the global recession in 2007. The collapse of Lehman Brothers, investment bankers of US, led to severe tension in the global financial markets which led to deposit outflows at the Irish banks. 1.1.3 SME Retail sector in Ireland The retail sector in Ireland comprises of over 20,000 food and non-food retailers, mostly SMEs, being both Irish and International in origin (IBEC, 2012). The retail sector employs over 240,000 employees. Retailing offers people career in their own locality. The retail SMEs have invested heavily in the sector in the last decade. As a result of recession, the retail market has shrunk by over one -fifth in the terms of value. The retailers were forced to reduce prices, which in turn impacts the overall profits. However, the operating costs have not been affected due to inflexible rents, hourly pay rates, local authority charges and property service charges. The shrinking of the retail market compelled the retailers to seek help from the government. To enhance consumer spending, focus on employees has been considered a valuable agenda. This is based on the recommendation of Irish Business & Employers Confederation in its election manifesto ‘Delivering the Jobs Agenda’ (IBEC, 2012). 1.2 Competitive advantage through people Human resources are now considered valuable assets as there has been a rise in the status of knowledge workers (Sheehan, 2005). Based on the resource-based view of the firm, human capital has become the source of competitive advantage as Koch and McGrath (1996) contend that a highly productive workforce possess attributes that make it a highly v aluable strategic asset. This has led to the recognition of and commitment to human capital development; this has also caused the shift from traditional personnel management to refined HR practices. Competitive advantage can also be gained by recruiting people from diverse backgrounds regardless of ethnicity, age, gender and other individual characteristics (D’Netto and Sohal, 1999). 1.3 Motivation for Research Retailing is intensely competitive in Ireland as anyone can open a store. This has brought in many new

Benefits of Biomedical Research Using Animals Essay

Benefits of Biomedical Research Using Animals - Essay Example Breast cancer is the most common in American women (American Cancer Society). On the other hand, I went through the signs and symptoms to understand what my aunt was experiencing. The website listed symptoms like swelling in parts of the breast, irritation of the skin, pain in the breast or nipple, and sometimes discharge from the nipple (American Cancer Society). Moreover, I also learned of how cells of cancer grow in an uncontrollable manner and pose the risk of spreading to other parts of the body in what is known as metastasis. After a visit to the oncologist, my aunt level of cancer was said to be a stage that could not be controlled through surgical means. Therefore, the only option viable at the time was the use of chemotherapy. Chemotherapy helps in reducing the growth of cancer cells in the body (American Cancer Society). My aunt was placed on a combination of chemotherapy tamoxifen and Herceptin. However, chemotherapy has been associated with the side effects in human thanks to the recent development that has enabled development of drugs that mitigates side effects. One of such drugs that my aunt had to rely on was Herceptin. The drug acts by focusing on specific genetic alteration and hence has enabled in the reduction of side effects such as hair loss and nausea that is typical in another form of therapies (UCLA). The efficacies of these drugs that have been helpful to my aunt have been proved through animal research. The development of these drugs has been possible through intensive research that has been done on animals (rats) (Animal Research Info). It is the identification of estrogen receptor (ER) in the laboratory that has made it possible to describe the target site specificity of estrogen action in breast cancer (Jensen and Jordan 1). In the 1970s, there was consideration of the use of ER as a target for therapeutics.

What are the historical causes of racial inequality in the United Essay

What are the historical causes of racial inequality in the United States - Essay Example that the white race was superior of the black, which grew at the end of the 1800s, played a big role in validating suppression and the demolishing of the traditional cultures, societies and civilizations of the native peoples of different races and ethnic groups particularly the African slaves who were sold by the Europeans to the Americans during the 19th century and who later became African-Americans. In addition, this set of beliefs and ideas also became a catalyst for regarding or considering enslavement and submission as a humanitarian responsibility or duty. â€Å"In its modern form, racism evolved in tandem with European exploration and conquest of much of the rest of the world, and especially after Christopher Columbus reached the Americas. As new peoples were encountered, fought, and ultimately subdued, theories about â€Å"race† began to develop, and these helped many to justify the differences in position and treatment of people whom they categorized as belonging to different races.† (Wolf 97) Enslavement was the chief cause of the ever-increasing political conflict and opposition around the 1850s in the United States as people started to oppose and contravene racism. This open opposition and the American democracy that made speech and opinion more open was the stepping-stone for the road from slavery to the civil rights movement and later on, towards the ethnic and racial equality around the nation. In retort to an anti-slavery Republican as the winner of the Presidential election, nearly a dozen Southern slave states in America affirmed their separation and breakaway from the United States. Together, they formed the Confederate States of America, also known as the Confederacy. The remaining twenty-five states supported the federal administration called the Union. Began in 1861, the Civil War lasted a total of four years. The reasons and grounds were complicated, and ever since this battle began, its causes have been heated with a lot of controversial

Financing SME Essay Example for Free

Financing SME Essay The definition of Small Medium scale Enterprises (SMEs) varies from country to country. The classification can be based on the firm’s assets, number of employees, or annual turnover along with the loan amount. Central Bank of Sri Lanka defines SMEs as enterprises with less than Rs. 600 million turnover per annum and with a maximum exposure of Rs. 200 million mainly to be classified as a SME for Basel II Capital adequacy calculation and utilization of funds accumulated in the Investment Fund Account in Banks. Whatever the definition, and regardless of the size of the economy, the growth of SMEs throughout the region is crucial to growth of respective economies. Because, SMEs play a critical and important role in providing job opportunities, enhancing the quality of human resources, maximizing the use of local resources, saving foreign exchange, nurturing a culture of entrepreneurship, fostering creativity and opening up new business opportunities etc. Most corporate organizations in Sri Lanka or elsewhere are the establishments started as SMEs in its early stages. Classic examples from our own country may be Nawaloka Group, Access International, Softlogic Group of companies. In most literature, it is mentioned that access to financing has been recognized as a major impediment for many SMEs and its growth, whereas corporate business entities have the advantage over the SMEs in doing so primarily as a result of their formalization. However, according to Juliet Mckee and Kimball Dietrich (2003), most common problems for SMEs are the lack of access to market information and technology, the low quality of human resources and the lack of access to capital. Despite efforts by financial institutions and public-sector bodies to close funding gaps, SMEs continue to experience difficulty in obtaining risk capital. These funding gaps relate to firm size, risk, knowledge, and flexibility. The development literature focus a good deal of attention on issues faced by SMEs in accessing finance. Traditionally, the focus is on obstacles created by financial institutions, mainly by commercial banks or on imperfections in the broader institutional environment. However, SMEs also make decisions about financing and display attitudes that have an important bearing on financing decisions. Therefore, constraints may also appear on the â€Å"demand side† of the financing market. Objective of this article is to discuss the key challenges and issues for bankers pertaining to SME lending, of which, part of them are inherent in SMEs and for others bankers are responsible. 1. Issues of SMEs 1. 1 Lack of financial literacy or weak financial literacy In the literature, lack of financial literacy is designated as informational asymmetries where SMEs typically posses privileged information on their business that cannot be easily accessed or cannot be accessed at all by lenders or outsiders. Reasons for this may vary and also have different perspectives. SMEs are mainly driven by entrepreneurs who have nurtured in their own ways to prospective SMEs. As a result of hard ways of development, they either had no time to devote further education or do not believe in learning. This is evident from the credit applications that are submitted to banks for financing. This eventually leads to low levels of financial literacy among entrepreneurs. Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resource. Though many SME owners are sound in developing business models and working out the profitability of products and services, understanding about the macro picture of the SME’s overall financial standing in terms of profit and loss account, balance sheet and cash flows is week. As a result, they sometimes opt to resort to outsiders or merely depend on themselves in preparation of financial information which may or may not reflect the actual picture of the SMEs. Because of this impediment, banks have no choice, but to depend on collateral for SME financing. At the backdrop cash flow lending is encouraged, financial institutions are struggling to project the SMEs’ sustainable bankability. This is recognized as the main obstacle for banks and financial institutions in financing SMEs. One of the options to counter this impediment is the concept of â€Å"Para accountant†. A Para accountant is an external consultant who uses finance, economics, risk management and technology skills to help organizations prepare and report financial and tax statements according to accounting principles and regulatory requirements. A Para accountant also may review a firms internal controls, processes and procedures to ensure that such controls are adequate. A Para accountant may work on a clients site or remotely. They are not necessarily qualified accountants, however, might be an option. Bankers’ prime objective in this endeavor is to develop reliable sources of information so that they could project the sustainable cash flows of the business. With this objective banks could train their credit appraisal officers as Para Accountants, who will interacts with prospective SMEs and develop a set of financial information while strengthening the banking relationship over a period of time. 1. 2 Entrepreneurs’ knowledge about building a prospective banking relationship A banking relationship is about much more than just selecting a bank to handle a company’s bank accounts. If the relationship is managed well, it can help a company to thrive. SMEs that use more than one bank will need to manage multiple banking relationships. A company will first have a business account (or several) at a retail bank (or banks) for all day-to-day financial transactions. Whether it is retail, SME or corporate, the banks should have a team of business banking advisers on hand, to advise and guide a company. It’s important to ensure continuity— banks usually offer a contact with a designated person and in turn expect to deal with the same person or persons from the company. A good banking relationship depends not only on personal rapport, but also by having a solid understanding of the company and its financial needs. Over time, a banking adviser should build up a good understanding of the company’s preferred ways of doing business and incorporate that into how their banking requirements are handled. There are many advantages having a sound banking relationship for SMEs. The bank is more likely to offer loans and other lines of credit, potentially at preferential rates of interest, if the bank advisers feel there is a good relationship with the company. The bank’s advice can be tailored for the company’s needs and personal style, rather than given generically. In times of crisis, a company having its bank’s support will be crucial. Even if a company is a text-book case of insolvency, strong personal rapport with a company representative means that the bank is more likely to offer leeway if it knows that directors are doing their utmost to keep the company going. Failure to develop a strong relationship, however, means that the SME is likely to miss out on good advice and, crucially, support in times of difficulty. However, unfortunately, many SMEs are not on the right track to understand the importance of having a good banking relationship. Given that no sound financial information are available, at least, SMEs should try to maintain a healthy customer relationship with the financial institution to entice financial needs, especially in difficult periods. It is both Bankers’ and SMEs’ responsibility of developing a prospective banking relationship over a period of time without compromising risk capital. More than the credit facilities, credit plus would be reasonably appropriate to start such a relationship and then move into advanced levels of relationships along with credit facilities. 1. 3 Financial discipline of entrepreneurs As Henry Ford correctly cited, â€Å"Wealth does not come accidently. You have to plan for it. † One’s discipline explains the right behavior and ability to take decisions without emotions. Hence, financial discipline is all about right financial decisions. In order to be financially discipline one should understand concepts of accounting and financial management in SME business. Accounting in general is all about record keeping and developing summary financial reports. Most commonly available financial reports or information are the profit and loss account, balance sheet and the cash flow statement. Unless SMEs keep records of their daily activities, it is difficult to develop financial statements with regard to their businesses. With no financial statements, SMEs will always struggle in making financial decisions. More often, there is no clear distinction between the business finance and the finances of the proprietor. Therefore, it is critical that the lender examines carefully borrower’s all commitments, i. e. , those related directly to the business and those associated with the proprietor’s private life and assets. Lack of Business Planning is a result of weak financial indiscipline in SMEs where investment decisions, working capital decisions, even pricing decisions are based on the entrepreneurs’ values than on facts. The lack of proper financial discipline results in incorrect business decisions, which hampers the sustainability of the SMEs. MacRobert (2002), in his SME manual explains why SME borrowers are different to commercial and corporate borrowers. One of the common reasons is unskilled/ untrained principals. Many SME principals in the Asia-Pacific region are self-starters, often with limited formal education, and minimal training in business management skills. That is not to say that they are incompetent, but that they often lack the capacity to research information on ways to strengthen their businesses, and, indeed, to be aware that such resources even exists. Role of the bankers in this regard is to educate the importance of financial discipline through strong banking relationships. Bankers are one of the key sources, to get SMEs to believe in financial discipline. Bank officers should take the initiatives in this endeavor to educate the SME owners. Role of the Government is also a key imperative in developing required conducive environment through institutional and policy frameworks. Some universities in Sri Lanka have already started dedicated departments to teach courses related entrepreneurship. (Example: University of Sri Jayewardenepura and University of Colombo) and It is important to note that Business studies is part of the GCE A/L curriculum. Recent budget proposals in 2011, 2012 and 2013 has given enough support to encourage SMEs and SME financing and one of the very useful proposals was to direct government banks to set up dedicated SME Branches not only to facilitate SMEs with easy access to finance, but also to educate SME owners and to guide and direct them to right places and people. However, strengthening the institutional framework to develop business development support services is also an imperative. 2. Issues with Banks SMEs are not only critical to the economy, but also to the banks’ profitability. Most diversified banks maintain a substantial percentage of exposure to the SMEs as a strategic investment given the diversity within the SME portfolio itself. It is always profitable, but need to properly evaluate and closely monitor the delinquencies to avoid any credit risks. It is a perception as well as a fact sometimes, that SMEs are always highly risky as explained by many banks. It may be due to several factors including, non availability of financial information, no tax returns, no collateral, one man show, highly sensitive to economic conditions, no proper organizational structure, and many more. These are reasons given to avoid or very conservative underwriting of SME credit proposals. As a result of these reasons, credit policies of financial institutions are based on stringent credit guidelines. 2. Institutional framework with hindering process issues In the case of many developing countries, the above mentioned obstacles to SME financing are exacerbated by institutional and process factors. Most developing countries are still highly concentrated and have uncompetitive banking sectors. This reinforces the tendency to adopt conservative lending policies. Credit policies which mainly cover the credit risk and market risk, endorse a processes which covers many elements to secure exposure, while satisfying the regulator’s requirements. This eventually results in a value driven Credit culture in financial institutions. According to MacDonald and Timothy (2006), management’s credit policy determines how much risk the bank will take and in what form. A bank’s credit culture refers to the fundamental principles that drive lending activity and how management analyzes risk. There can be large differences in their lending philosophy. The three potentially different credit cultures are: values driven, current profit driven, and market share driven. The institutional framework is reflected through the credit policy in this part of the world, the tendency is to inculcate a value driven credit culture, which has the following attributes: Focus is on credit quality with strong risk management systems and controls Primary emphasis is on bank’s soundness and stability and a consistent market presence Underwriting is conservative and significant loan concentrations are not allowed. Typical outcome is lower current profits from loans with fewer loan losses It is evident with lower non- performing ratios prevailing in banks justifies that credit risk is covered with loan risk mitigation factors and discourage granting venture capital to SMEs. Eventually, SMEs need to resort to acceptable securities which hinders them from easy access to finance from financial institutions. 2. 2 Collateral syndrome (Risk avert) Strong value driven credit cultures in financial institutions always tighten the belts in covering credit risk. Unless the financial institutions develop competencies in cash flow based lending, credit officers have no choice but to cover themselves with collateral in risky SME lending. Competencies itself will not drive the business unless the risky lending is rewarded with challenging business targets. Security based lending propositions are gradually becoming unhealthy for economies as it discourages strategically important investment decisions. Government of Sri Lanka recently enacted legislations to ease the pressure on SMEs through amendment of Parate execution where normal civil procedure of debt recovery should be applied for loans below Rs. five million with security of property mortgages. 2. 3 Weak competency in building cash flow based lending propositions Strong value based credit policies encourage security oriented lending and creates knowledge gaps in credit officers. Security oriented lending does not require strict cash flow projections and credit evaluations. Developing cash flow projections is an art and requires overall knowledge about the industry, technology, external factors (external climate) and specific firms (internal climate) along with econometrics modeling to analyze the cash flows. When it comes to large projects, knowledge in project appraisals and risk analysis will help the credit officers to get exposed to project financing. At the backdrop of investor confidence and developing businesses in emerging economies, venturing into risky business propositions is in the agenda of the banking and financial intuitions. Financing SMEs are risky but at the same time profitable, so indeed banks need to develop how best they could mitigate the risk of these ventures. One of the options is to gradually develop a culture of SME financing with confidence through development of competencies in their credit officers. Competency development not only addresses econometric techniques of analyzing and evaluating the credit proposals, but also industry knowledge and exposure, experiences of sick industries and business units, world politics and world economics, knowledge in emerging markets and technologies, behaviors and issues of labor, understanding the entrepreneurship etc. Conclusion Many of the literature examine the issues of financing SMEs world over. However, there are key issues not only from the SMEs point of view, but also from the financial institutions and, government’s point of views. No one can expect the SMEs to nurture in best practices all by themselves. In this regard, the role of financial intuitions is greater, when it comes to inculcate and nurture SMEs in the right directions. The issues for SME financing discussed above are the keys, but there are many others which needs further discussions.

Is Customer Relationship Marketing Strategy Justifiable?

Is Customer Relationship Marketing Strategy Justifiable? In recent years retail banking services have universally adopted relationship marketing / customer relationship marketing strategy as their strategic priority; is this justified in the light of experience and current financial service market place. Chapter 1: Introduction 1.1: Introduction Retail Banking is an evergreen business sector and the potential for innovation is limitless. The increased awareness of the bankers that the customers are the back bone of any business and the stiff competition in the banking sector through the increased penetration and expansion of finance and non-finance organizations venturing into this areas of banking has created an awareness that retaining and serving the existing customer is more critical than searching for potential new customers. This report analyses the extent to which the retail-banking sector is deploying the potential of customer relationship marketing strategy as a strategic priority to develop their business and serve the customers. The report focuses on the fact whether the extensive use of Customer Relationship Marketing strategy in the retail banking sector business is justifiable or not. 1.2: Aim and Objectives The aim of this report is to analyse whether the increased use of Customer Relationship Marketing strategy by the retails banking sector and financial institutions as a core strategy is justifiable or not. This is achieved through the following objectives. To analyse the growth of retail banking sector and the criticality of information in the retail-banking sector and the financials institutions in general. To analyse the effects of using Customer Relationship Marketing strategy and the advantages of Customer Relationship Marketing in mining information in providing a second to none customer service by the banks. 1.3: Background for the study The increased use of Internet banking and numerous tools for customer service by the banks in the UK is the primary reason for the conception of this report. Alongside, the fact that accurate information about the target customers in any business market is the critical factor for the success of an organization is that business sector. Apparently, banking sector is one of the numerous sectors that faces the public on a day-to-day basis and almost every individual in the society is linked with a bank in one form or another which gives the bank an increasing potential to develop their business and investment through identifying potential customers whilst retaining the existing customers. 1.4: Research The research is primarily supported through the use of secondary data like journals, annual reports, textbooks and white papers. The information provided by the journals about the market and the use of Customer Relationship Marketing strategy by banks is concrete and the need for funding to conduct market research either through questionnaire or other methods of primary data collection is the reason for choosing the secondary data source. It is worth mentioning that the information contained in the journals and documents are second to none since the academic journals used in their report are from highly reputed institutions, which publishes reports and papers that are world renowned and valued by numerous academicians. 1.5: Scope of the research The research is primarily focused on the banks in the retails banking sector in the UK. The focus group is the market for the banks in the UK and the different needs of the general public like loans, mortgages, deposits etc that the banks try to mine through the Customer Relationship Marketing strategy. 1.6: Chapter Overview Chapter 1: Introduction This is the current chapter that introduces the report objectives to the reader. Chapter 2: Customer Relationship Marketing in the UK This chapter presents an analysis of the Customer Relationship Marketing strategy and concepts in the business focusing on the UK business sector in general. The advantages of Customer Relationship Marketing strategy in achieving greater customer service are discussed. This is followed by a brief analysis of the use of Customer Relationship Marketing by the banks in the UK. Chapter 3: Retail Banking sector in the UK In this chapter the growth of retail banking and the importance of information in the Banking sector are analysed. This is followed by an analysis of the increasing competition and the bank’s use of information about customers to enhance customer service and identity new customers in the market. The concept of Customer Relationship Marketing initially presented to the reader in the previous chapter on a general perspective is analysed in light of the retail banking and the use of Customer Relationship Marketing as a core strategy by the banks in UK. The analysis is supported with examples of specific organizations in relevant sections of the chapter. Chapter 4: Conclusion and recommendation In this chapter, the results achieved so far are discussed against the objectives and then a conclusion is derived from this discussion. Furthermore, a few constructive recommendations for further research and analysis in this topic are provided to the reader. Chapter 2: Customer Relationship Marketing in the UK Customer Relationship Marketing is increasingly used by many organizations in the UK. The fact that the customer is the central element of a business is the major reason for the increased use of Customer Relationship Marketing strategy by organizations in order to serve their customers efficiently and effectively. The first section provides a general overview of the Customer Relationship Marketing concept to the reader. 1.2: What is Customer Relationship Marketing? Frances Brassington and Stephen Pettitt (2003) speak about relationship marketing as â€Å"A form of marketing that puts particular emphasis on building a longer-term more intimate bond between an organization and its individual customers†. This is mainly due to the never-ending battle of retaining the existing customers and to identify new customers for leveraging revenue and gaining competitive advantage. In today’s highly competitive environment the businesses are increasingly using new technologies and infrastructure to create the long-term relationship identified by Frances Brassington and Stephen Pettitt (2003). This form of relationship marketing is much more refined as Customer Relationship Marketing which is the method of identifying and satisfying the customer needs through efficient use of the resources and the customer information maintained by the company in order to establish a strong relationship with the customer and thereby achieving trust among the cus tomers. From the above definition it is apparent that the concept of Customer Relationship Marketing treats the customer as the primary element for the business and directs all its resources both material and human resource to serve the customer thus gaining competitive advantage in the business. The reason for the increased customer focus in the business is due to the simple fact that a customer is the end user of the product developed by the company and above all the source of revenue for the company, which can be generated only through effective sales and service. This is also intensified further due to the increased competition and the availability of a wide range of products to choose for the customer. The primary focus of Customer Relationship Marketing is on the customer information that the company holds which is analysed for in the light of the company’s goals, vision and mission in order to decide on how efficiently to serve the target customer by the company. This is vital for the reason that the accurate information about the target customer segment is the primary element for the success in the company’s venture in the business either new or existing. 1.3: Customer Service Since the concept of Customer Relationship Marketing embraces customer service, a brief overview of customer service is presented in this section. Philip Kotler (1988) says that the customer forms the backbone of any business. Alongside, it is also well known that customer service is not only for selling the product but the after sales service is what that actually counts in the service of the customers. The effective customer service as identified by Philip Kotler (1988) is mainly thorough improving timeliness in sales support and also by keeping the promise that was made to the customer at the time of sales. Alongside the critical associated with the servicing is costs associated with the services provided by the company to meets its customer needs and requirements. Apparently, a company cannot spend all of its revenue to customer service. Thus the need to maintain the balance between the efficient service and costs associated with the services provided is vital for the company’s success. Frances Brassington and Stephen Pettitt (2003) have identified the following as the three critical factors to be considered while designing the customer service strategy. Customer needs: The needs of the customer are the primary element for a company to promote its products to the customer in that target market. The need of the customer is also the primary factor customer to conduct search for the products that meets his/her needs. Customer situation: The situation of the customer is another critical factor while designing a product, which is essential to identify the customer’s affordability and his/her perception of the production the market. The situation is not only to analyse the customer situation but also to design the effective pricing strategy to meet the customer demands along with the plans to diversify the product range in order to reach more than one target segment of the market based on the quality and price of the products. Any special requirements for customers Special requirements for the customer vary with the kind of product being sold and the need of the customer with that product. In the banking sector for example, a customer applying for a personal loan may like the monthly payments to be charged from his account on a specific date of every month. This level of customisation apparently allows the bank to serve the customer more effectively as well as retain the customer by providing him/her with the desired amount of loan in this instance. The potential of information and knowledge about the customers and the requirements is the key for customizing the service. The three factors mentioned above can be identified only through efficient market research and knowledge of the customer and the target market. This is mainly through treating the information as a vital element for the business. The concept of Customer Relationship Marketing envisages the customer requirements and potential in new target markets through the efficient analysis of the information held by the company about its customer and markets. Alongside, the cost issues associated with the customer service is also drastically reduced with the Customer Relationship Marketing strategy because of the fact that the company initially identifies the right customer for its business and products through the Customer Relationship Marketing concept and thus the customer identified can be served effectively in the first instance itself such that the costs associated with the after sales service that arises mainly due to defects and problems faced by the customer due to purchasing the wrong it em from the market is reduced drastically. 1.4: Market Information and its role in Business In today’s competitive environment market information is critical for the successful promotion of a company’s product. This includes the banking sector as well where the target market is the personal bankers and individuals with a variety of needs. A company in order to maintain effective Customer Relationship Marketing strategy must gain information about its customers, their level of spending and other aspects of their purchase that will benefit the company by customizing the products much more to meet the needs of the customer. The customer information is collected through various methods or research and also through the use of Information Technology to acquire customer information. The customer information can be effectively gained while conducting the sales and receiving payments for the products sold. The use of Electronic Point of Sale (EPOS) in the retail sector for processing payments as well as to communicate the company’s new products to the customer i s one such are to gain information about the market and the customer spending levels in the target market. Identifying the right customer is primarily through effective market research and identifying the potential markets for the company’s products. A bank for example in order to identify its customers must initially research on where to sell its products and then identify its customers through the information gained in the market research. The fact that Customer Relationship Marketing is mainly to promote the products of an organization to its target customers by identifying the customer need and relating it to its products and services makes Customer Relationship Marketing an essential element for a successful business. The Customer Relationship Marketing in the banking perspective is analysed in detail in the next chapter. 1.5: Why Customer Relationship Marketing? From the above discussions we find that the concept of Customer Relationship Marketing is very beneficial for a company’s prosperity and also fact that the business development in new areas is possible through efficient Customer Relationship Marketing in the target markets. But the question why do we need Customer Relationship Marketing is addressed in this section briefly. 1.5.1: Competition The increase in the competition in the UK business markets in the primary reason for the growth of Customer Relationship Marketing. The competition in the market is nearing the point of saturation due to the increase in number of competitors and the increasing awareness among the consumers about products and services. Apparently, a new means of identifying the potential customer in the market and conducting business is critical in the day-to-day business through customisation and quality or service. The financial services sector in the UK alone has seen a tremendous increase in competition with the expansion of non-financial organizations like retail store chains and other business organizations venturing into banking services through own brand credit cards, personal loans, insurance, etc. The competition in the market can be faced only through the effective employment of the information held by the competitors. 1.5.2: Innovation and Growth in Technology Through continuous innovation, the competitors in the UK business markets have invaded its customers through new products and services. The innovation level has also reached a level of saturation that the competitors are now depending on technology to leverage more potential in gaining the customer information so as to present their products in a more customised manner. Alongside, the growth in technology and especially information technology and its expansion in numerous areas of business has also created the opportunity for the organizations in the increasingly competitive environment to leverage the potential of information to identify new business markets and hence reach new customers. The result of the strive for the competitors to deploy the information more effectively in order to create a long term relationship with the customers has resulted in the conception of the Customer Relationship Marketing concept. 1.5.3: Internet and the competition from e-business The growth of Internet and online shopping portals were the first in the business to harness the potential of customer information to reach new markets and expand business. The Internet has broken the traditional barriers of shopping and business itself thus revolutionizing the entire concept of sales and marketing. A statistical Review conducted by Keynote says that the customers purchasing online have increased tremendously since 2001 and the growth is unlimited. The reason for the tremendous growth is that the organizations selling online acquire critical information about the customer’s likes and dislikes and send them with regular updates of their products, which suits their needs. The growth of Amazon especially through promoting their products by presenting the customer with a short list of related products and continuous e mail updates is the classical example for the success of the deployment of customer information in the current business market that is highly compet itive with target customers having a volatile mindset in deciding to purchase a product or service from a given organizations. In the banking and financial services sector in the UK, the growth of internet banking and the increase in customers applying online for financial services like insurance, loans, etc., has created a need for the bankers in the UK to practise Customer Relationship Marketing in order to identify the needs of the customer as well as attract new customers. In the next chapter this is dealt with in more detail with respect to the retail banking and the financial services market as a whole. 1.6: Product customisation: The increase in competition in business has forced the competitors in the UK business markets to present more and more customised products to meet their customer needs in order to retain the existing customer as well as identify potential new customers. The customisation of a product will be successful only through the efficient collection and deployment of the customer information and market information captured by the company. Again the cost issues associated with the customisation and the success of the customized product need the vital information about the customer needs and target market. In banking sector for example a customized loan offer or any other financial service offer is introduced only after extensive research in the market in order to successfully meet the customer needs in the target market. 1.7: Conclusion: From the above discussions in this chapter it is evident that for achieving success and gaining competitive advantage in a business sector, the competitors are increasingly using the potential of customer information and adopting Customer Relationship Marketing strategy to reach potential customers with their products as well as to retain their existing customers. Apart from the competition, the information gained also helps the organization to customize its products and services to its target customers in order to successfully promote the new products and services and effectively allocate its investments for service and production. In the next chapter the Customer Relationship Marketing concept in the light of banking and financial sector is analysed in order to establish whether or not the increasing use Customer Relationship Marketing strategy by the retail banks as a core strategy is justifiable. Chapter 3: Retail Banking sector in the UK The retail banking in the UK has seen tremendous growth in the past few decades. From only a handful of competitors in the 1950s, the banking sector in the UK now consists of many big players like Barclays, HSBC and numerous other banks that are operating at national and international markets. In the next section an overview of the growth in the banking sector especially the increase in the potential and the diversity of products are presented to the reader. 3.1: The growth of retail banking The banking sector in the UK has a century old tradition for serving its customers and stability in the business surviving through the world wars. From the late years of the twentieth century, the banking sector has seen tremendous growth in the UK. The traditional service of lending and deposits have changed into customised services and grown into many new areas of finance especially in the insurance sector as well as expanded the scope of their existing business through continuous customisation and innovation in their products and services offered. This is apparently due to the increased competition and the growing potential of the UK markets for credit cards and personal loans. The tremendous growth of the UK retail-banking sector is evident from its value in the whole European commercial banking market. The UK banking sector alone accounts for 23.9 % of the European commercial banking sector (Data monitor industry analysis on commercial banking sector of UK, 2003), which proves t hat the UK banking sector is growing tremendously. The report further says that the competition in the banking retail-banking sector is intense and the leading companies in the sector are Barclays Plc and HSBC Holdings Plc. A few examples of the Customer Relationship Marketing strategies and the timely execution of the business strategy by these companies are discussed in later sections. The keynote (2003) market report on personal banking says, â€Å"Personal banking is no longer a market exclusively occupied by banks†. This is obviously because of the entry of new competitors from other segments of the financial markets like the insurance companies venturing into the credit cards and personal loans market. Apart from the competition from other financial organizations there is potential growth in the banking industry with the entry of many retailers entering into the banking sector through insurance and other personalised services. This increase in the market potential and the competition in the market proves the tremendous growth of the banking sector in the UK and the penetration of other business sectors into the banking sector which makes it very clear that the traditional process of banking in the counters is long gone and the current banking industry is invaded by competitors from various segments of business other than the actual banks themselves. The process of banking itself has changed tremendously from the trivial paper based banking that was common in the 1970s and the 1980s into electronic banking system with the advent of plastic payment options through debit cards and credit cards and the Automated Teller Machines that can vend cash to the account holders like any other trivial vending machine in the high street. These areas along with the tremendous growth of technology has forced the traditional banks to meet the competition through the efficient use of Information Technology and other innovations in communications like the satellite communications, broadband, etc for the enhanced service to its customers in order to retain the existing customers as well as attract new customers to the banks. The growth in the banking process has primarily concentrated in enhancing the services offered to the customers rather than just treating the customers on the basis of their request on a case-by-case basis, which was the traditional way of banking system in the UK. Alongside, it is worth mentioning, that the innovation has primarily focused on easing the process of banking itself though introducing different channels of payments and also the plastic payment option on the internet and at retail stores which has increased security in transactions as well as prevents the customer from the risk of carrying large amounts of cash with them for shopping which was the case a few decades ago. From the above arguments, it is clear that the retail-banking sector has seen tremendous growth in the past decade and still growing with the increase in the number of competitors and the diversity of the competing organizations. In the next section, a brief analysis of the competition in the banking industry is presented to the reader before proceeding to the analysis of information and its critical nature in the banking sector. 3.2: competition and competitors in the retail-banking sector The retail-banking sector of the UK in the twenty-first century comprises of not only the banks but also competition from other financial organizations and non-financial organizations. The increase in the credit rich market of the UK citizens as well the increased borrowing of the customers has created vast potential for personal finance which is the primary reason for the venture of other organizations in to retail banking. The examples of such competition in the market include the personal finance and loans introduced by TESCO Plc and Asda Plc (A Wal Mart group of company) who are retail superstore chains by business. Alongside, the venture of insurance firms such as Norwich Union are increasingly competing with the high street bankers in the personal loans, savings and other financial services. Apart from the competition on the high street, the competition from the Internet bankers is another potential hurdle for the high street bankers. The increase in the Internet users and the potential of online banking systems eliminating the paper-base trivial banking service eventually increasing the speed of the processing as well as providing customised service to the customers is a major competition to the high-street bankers. Apparently, the web presence and online banking facilities provided by the high street bankers may be an answer to the competition but still the potential of the online customers and the ability to retain a customer over the internet banks is very difficult. 3.3: The potential of information and the Customer Relationship Marketing strategy From the arguments in the above sections we see that the banking sector is tremendously growing and the potential of the financial services offered is immense along with competition that is increasing in geometric progression. Apparently, the competitors in the retail-banking sector rely on the potential of information in order to compete in the market. From the discussions in chapter 2 it is clear that the accurate information about the target market and the customers is essential for a successful venture in the business. The banking sector with the increasing competition relies heavily on the potential of information to customize its products and services to reach new customers as well as retain the existing customers. The increased use of information to mine the consumer requirements is increasing the banking sector. A classical example is the announcement low rate personal loan offer by HSBC bank Plc, in the UK. The bank offered loans at the lowest possible interest rate of a high street bank during the New Year season, which is when a lot of people spend money on purchasing presents and extensive shopping. The strategy of the bank to keep the low rate offer open only to existing customers enabled the bank to attract new customers who were primarily interested in the low interest rate personal loans. Another example is that of Barclays Bank Plc which encourages its customers to choose online and telephone banking in order to speed up the processing time as well improve the service to the customers. The bank through encouraging its customers for telephone banking not only leverages a market share in the electronic banking sector but also effectively reduces the costs involved with the customer service since the bank need not employ a lot of people at the high street branches to serve its customers as well as reduce the expenditure on resources like stationeries etc. It is worth mentioning that both the afore mentioned banks have Internet banking facility and provide services for online bill payments as well as performing several transactions for the customers in a very secured and safe manner. A notable feature of the Barclays telephone banking system with the pass code is that the automated telephone banking system enables the customer to perform the transactions as well pay bills through the phone without even waiting to be served by a representative over the phone. This eventually reduces the costs associated with the service since the personnel employed by the bank is still lesser. Alongside, the rival HSBC has outsourced its call centres to India and has a vast human resource under its command to serve the customers in the UK. The bank serves it customers over the phone quickly and efficiently and the outsourcing of the call centre to India has saved the company a huge part of their costs since the labour costs is less in India when compare d to UK. The above two examples prove that the high street banks in the UK are increasingly using the Customer Relationship Marketing strategy not only to introduce new products but also to improve customer service. The increased use of Internet banking and the electronic services of the banks in the high street is a very good example for this argument. Apart from the afore mentioned facts the customers are served by the retail banks on other channels like the local branch banking, web transactions and customer service centres that provide efficient customer service. 3.4: Diverse Range of products The concept of customisation and diversity in the products are only successful when they are implemented targeting on the right segment of customers. The banks both on the high street and over the Internet offer numerous customized products for attracting the customers as well as improving the customer service in order to retain the existing customers. The introduction of loans for more personalised reasons like car loans, housing loans, etc on top of the personal loans, mortgage services and other financial services provided by the banks both over the internet and at the high streets justifies the arguments that the banks are increasingly customizing and diversifying their products in order to reach new customers as well as server the existing customers. This is achieved only through the efficient use of the customer information gathered by the Customer Relationship Marketing strategy and associated support systems by the competing banks (both traditional and new entrants). Alongside, the banking services provided by the retailers like TESCO, is primarily based on the information they gathered and accumulated over the years of service in the retail industry and identify the potential for the right kind of financial service to the attract its customers to the financial services as well. The fact that the idea of branding and the brand loyalty of the UK customers is the major factor for the venture of these organizations into personal finance. TESCO Plc is ranked number one among the retail superstore chains in the UK thus establishing itself as a retail brand among its customers. This brand image of TESCO supported by the information of its customer and target markets has given the organization the necessary information to venture into the financial services sector thus becoming a potential competitor to the traditional high street banks in the UK. The above arguments make it clear that the Customer Relationship Marketing strategy is widely deployed by the competitors in the retail-banking sector. Alongside, it is also evident that the increased level of customisation and customer service is achieved though the efficient use of the information gathered and deployed by the Customer Relationship Marketing strategy. In the next chapter, the justification whether of not to have Customer Relationship Marketing strategy as a core strategy in the banks is discussed followed by the conclusion. Chapter 4:Conclusion and Recommendation The discussions conducted so far in this report is analysed against the objective of the report in order to create a profound understanding among the readers. The objectives of the report are Objective1: To analyse the growth of retail banking sector and the criticality of information in the

Innocence lost in John Boyne’s Boy in the Striped Pajamas :: John Boyne, Boy in the Striped Pajamas

The Boy in the Striped Pajamas is a fictional tale of the unlikeliest of friends: the son of a Nazi commandant and a Jewish concentration camp inmate. Written by John Boyne and published in 2006 by David Fickling Books, the story was made into a major motion picture in 2008. The novel, set in Nazi Germany, begins when nine-year-old Bruno and his family must move from their lovely home in Berlin to a new house in an unfamiliar place called "Out With." Tempted to explore his new environment, Bruno is told that there are certain places that are "Out Of Bounds At All Times And No Exceptions." Unable to fight his adventuresome spirit, however, Bruno ventures forth into the unknown one afternoon. Bruno comes upon a fence that he follows until he sees a young boy sitting on the other side of the fence. The shoeless boy is wearing striped pajamas and a cloth cap. Bruno also notices that the boy is wearing an armband with a star on it. Bruno makes fast friends with the boy, Shmuel, and they quickly discover that they share the same birthday. The boys discuss their families and where they are from. At the end of their first meeting, Bruno asks Shmuel why there are so many people on his side of the fence and what they are doing there. A few days later, Bruno's father has dinner guests; the man's name is "the Fury" and his date is called Eva. Bruno instantly dislikes the couple. Bruno's sister Gretel, whom he refers to as "the Hopeless Case," is smitten by the man and tries hard to impress him and his lady friend. Bruno, however, is disgusted by his sister's behavior and her budding romance with a young soldier. Much like Bruno hears "Auschwitz" as "Out With," he also incorrectly hears "the FÃ ¼hrer" as "the Fury." Boyner masterfully tells the story from Bruno's perspective; it is clear that the innocence of Bruno's childhood remains intact despite the fact that he is living on the periphery of a death camp and has met Adolf Hitler. Bruno continues to explore the woods near his house and often finds himself at the fence spending time with Shmuel. Bruno brings him food, and the friends lament the fact that they cannot explore together or play a game of football. Shmuel confides in Bruno that he is unable to find his father and he is worried.

A Developing Epidemic in Argentina :: Buenos Aires Journalism Influenza Health Essays

A Developing Epidemic in Argentina BUENOS AIRES, Argentina--December is one of the loveliest times of year in the southern hemisphere of South America. On a typical summer day on a warm, Sunday afternoon, residents of Buenos Aires enjoy a relaxing jaunt along the Avenida de Mayo where one can browse the numerous shops of rare antiquities or simply retire to drinking tea in front of one of the many cafes along the avenue. Families with boisterous children picnic within the many public parks and gardens and bask in the warm sun. Expecting to revel in the long days of summer, I was surprised to find that these scenes that danced in my memory, while fighting sea-sickness en route, have vanished along with the citizens of Buenos Aires. The streets of the city are quiet, day and night. This proud South American city with its traditional colonial origins and its progressive embracement of modernity has become a ghost town of fear, fear of the illness that U.S. citizens know as the Spanish Influenza. According the local authorities, the origins of Influenza was brought by ships traveling from North American ports to Buenos Aires. Currently, port authorities have been cautious with the admission of foreign vessels and have established a quarantine period prior to entry. U.S. clipper ships the Elsie and the Snowdon, along with the steamer, the Royston Grange of Edinburgh have been subject to this quarantine which not only limits their admission into port, but also places an embargo on certain perishable goods. These actions have provided dire consequences for the local economy. Because of a lack of foreign goods, many dock workers are jobless along with local merchants facing scarcities which have greatly inflated the price of certain foods. While this is a serious economic situation, authorities of Buenos Aires feel justified in their restrictions and cite current statistics related to the spread of influenza. As of last Monday, the civil registry in Buenos Aires reported that in one district, as many as 192 deaths from influenza occurred just on that day. Because of this large amount of death, the local cemetery was unable to offer proper burials to 155 of those victims. City leaders are beginning to realize that preventative methods are the best means of defense against influenza. Public address messages about personal hygiene are published in papers and broadcast on the radio.

The Tv Era :: essays research papers

The TV Era   Ã‚  Ã‚  Ã‚  Ã‚  The 20th century marked the beginning of a new era - 'the modern age.'; Some of the greatest minds the human race has ever witnessed lived and worked during the last several decades. These 'fathers of technology';, who arrived well ahead of their time, created the world as people know it. Car, airplane, rocket, are only few of the inventions that prepared mankind for the 180 turn. Some of the inventions found their usage in every day's life, such as: radio, toaster, washing machine…and finally, TV. The TV industry started its development with the invention of the first TV set, somewhere in the early 1950's, and has never stopped growing since.   Ã‚  Ã‚  Ã‚  Ã‚  Discussion whether or not television is a positive part of modern life, might seem arguable from several different viewpoints. Positively or not, the television has affected the life of almost every human being on the Earth…   Ã‚  Ã‚  Ã‚  Ã‚  First of all, people who lived before 'the television era'; could not hear the latest news at any time. The only source of news was the papers. However, without any significant technology involved, the newspapers could only report on the local events. On the top of that, usually such news offered information not accurate enough and too old to interest greater percentage of the population. All the people lived at the slower pace, by not knowing what was going on around them. For instance, a trading person who worked in the United States could hardly find out how British economy did. In the early presidential elections, the newspapers didn't inform enough those who worked on the farms. Therefore, they did not have credibility to vote. Nowadays, the TV campaigns allow us to know about every candidate's move and his beliefs and opinions towards foreign and domestic politics. More important than anything, with the television, ordinary people have a chance to keep track of world affairs. Today, an average person can come home from work, take off his shoes, lean back in the chair and turn on the TV. Then, he has the access to information about Bosnia and the children starving in Central Africa, both taking place thousands of miles away. On the other hand, the same guy maybe just wishes to watch The World Cup soccer match, or his favorite soap opera. The possibilities go to infinity. And how do we get the picture on the TV sets as the final product?

Impact of Product Price and Brand Name on Quality Perception Essay

In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency (For commodities, they are expressed as currency per unit weight of the commodity, e.g. Tshs per kilogram.) Although prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen. Prices are sometimes quoted in terms of vouchers such as trading stamps and air miles. Brand is the â€Å"name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.†Initially, Branding was adopted to differentiate one person’s cattle from another’s by means of a distinctive symbol burned into the animal’s skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. A brand is the most valuable fixed asset of a Corporation. In general, the product is defined as a â€Å"thing produced by labor or effort In marketing, a product is anything that can be offered to a market that might satisfy a want or need. 2.0 PROBLEM ANALYSIS 3.0 OBJECTIVES 3.1 general objectives name on customer’s quality perception of product To assess the effect of price and brand 3.2 specific objectives * To assess the effect of price on quality perception * To assess the effect of brand name on quality perception HYPOTHESES Null hypotheses * There is negative relationship between price and quality perception * There is negative relationship between brand name and quality perception Alternative hypotheses * There is positive relationship between price and quality perception * There is positive relationship between brand name and quality perception LITERATURE REVIEW The consumer quality perception has been a debatable topic for the past so many years around the world; previously many researchers have studied this topic and found exploratory findings in different contexts. The central purpose of the study is to investigate the impact of product price and brand name on consumer’s quality perception of the product. The marketer must inspect the consumer buying behavior by consumer psychological behavior and social concerns (Shabbir et.al 2012). According to Kurtulus et al. (2005) the influence of consumer psychographics on their tendency to purchase retailer brands, that must be valid and reliable so the consumers are more price conscious and prefer and purchase retailer brands. Most of the consumers need convenience and quality products that strongly motivate them to buy the same product more frequently in the future (Ahuja, Gupta, & Raman, 2003). Ahmad, & Vays, (2011) found that the pre-decision time of consumer purchasing behavior recognized solid link with the desire purchasing Behavior of the consumers. Product price The product price factor is always been an important factor in customer/consumer buying process in every context. They always examine price and brand name information differently when they are making judgments on the dimensions of quality: ease of use, usefulness, performance, durability, and status (Brucks, Zeithaml & Naylor, 2000). The marketing managers have to think broader to have a common on two factors such as capability control and strategic dynamic pricing policies (Moe & Fader, 2009). The customer must be facilitated with some packages in products. Bie & Chiao (2001) found that the marketing managers should highlight the service quality as well as but also price fairness in total consumer satisfaction program. According to Chang & Wildt (1998) the price has its significant influence on perceived quality when it is the only information indicated available. According the study of consumer prefers to have a price and quality rather than technical aspects in durable goods (Chui et al. 2006). Brand name Another benefit of branding , from the customer view point,is its ability to increase purchase confidence and enhance customer loyality (Aaker,1991 ; chaudhuri & holbrook ,2001).Brands work by facilitating the the customers buying decesions process.(Doyle,1990).In a competitive market customer face hundred of products and messages competing for attention.the buying decisions are reliant on their past experience and perception about a product and his habitual buying process is associated with brand loyalty

Engage in Personal Development in Health and Social Care Essay

My duty as a childminder is to provide high quality care for children and young people. In order to achieve this I must ensure I am familiar with the EYFS statutory framework (September 2012) and aware of ratio limits in place (3.39 EYFS) I have a duty to provide parents with essential information in order to build successful parent partnerships and help them understand the role of not only myself but Ofsted and the EYFS as well. see more:explain what reflective practice is I have a duty to ensure I have had training and am aware of the Safeguarding and Welfare requirements and the requirements as set out by my LSCB.(3.1 – 3.77 EYFS) I have a duty to ensure I deliver the learning and development requirements as set out in the EYFS statutory framework. I must provide each unique child with opportunities to learn and develop by covering the seven areas of learning (1.1 – 1.13 EYFS) I have a duty to provide an inclusive setting and accommodate where possible for each individual child. I have a duty to regularly assess children in my care with a statutory requirement to provide a progress check at age two. (Sections 2.1 – 2.11) I have a duty to ensure I meet all the legal requirements for paperwork. I have a duty to protect any personal information and records on children including personal details of parents with the exception of safeguarding issues and Ofsted visits. (3.67, 3.68, 3.69 and 3.70) I have a duty to inform the HMRC that I am self-employed and the nature of my business. I am responsible for ensuring that I meet all the requirements of the EYFS and keep up to date with any changes made to it. I am responsible for providing parents with information as set out in the EYFS (3.72) I am responsible for safeguarding every child in my setting. (3.5) I am responsible for implementing policies and procedures to deal with issues effectively (3.3) I am responsible for Risk Assessing (3.63) I am responsible for identifying areas where I may require further training and seek out the relevant courses in order to achieve continuous professional development (3.18 EYFS) I am responsible for my own planning, which will support each unique child’s learning & development in the seven areas. I have a responsibility to  identify next steps for each child (1.4, 1.5, 1.6, 1.7 and 1.9 EYFS) I am responsible for identifying where I may need to adapt or provide support, for example a child whose first language is not English (1.8 EYFS) I have a responsibility to ensure that I am aware of where a child is developmentally and that I may use the Early Years Outcomes statements as points of reference in order to identify areas of strength or weakness. It is my responsibility to provide parents with a progress report when a child is aged 2-3. 2.3 EYFS) I have a responsibility to ensure I keep accurate information on children in my care and that all personal information relating to both child and parents is up to date (3.71), keep accurate attendance records, document all accidents and incidents (3.48 & 3.49), keep up to date logs of any fire drills and their outcomes (3.54) I am responsible for registering with the ICO and storing data in a safe secure way (3.69) I am responsible for completion of my tax return and ensuring it is accurate and a true reflection of earnings and expenses. 1.2 Complete the table below describing how the relevant standards apply to your role Relevant Standards Expectations of your own work role EYFS The EYFS sets out the guidelines from which I must work from and it is extremely important I am aware of the legal requirements set out in it. My roles and responsibilities above have been linked to the relevant sections in the EYFS. National Minimum Standards for Regulated Childcare (Wales) National Occupational Standards This sets out a need for me to consider how I will professionally develop within my role. As part of my professional development I have recently completed a SEF. I found this surprisingly beneficial in not only helping me realise my strengths but also for reflecting on how I can go about further improving. I also keep a CPD log and strive to ensure that as a professional I am keeping myself up to date with the sector, be it though the Pacey magazine, online courses or those that I attend ie First Aid, network meetings. I especially like the fact I have gained CPD hours and certificates for the effort I have put in to further develop, it has given me pride in my achievements Job Description My job description helps me to think about what I need to achieve in order to fulfil my role as a childminder. To provide high quality childcare, adhering to the EYFS statutory guidelines with a sound knowledge of the EYO. It is my duty to ensure children are in a positive, happy and safe environment. To have a sound knowledge of first aid and safeguarding procedures and to ensure training is kept up to date. Common Core The common core provides me with skills and knowledge required in order to work with children, young people and families. In my role as a childminder this would be: Successful Parent partnerships & communication with children, including support for those whose primary language may not be English. Sound knowledge of the EYO and how these are used to observe development in children. Aware of safeguarding procedures and children’s welfare. Supporting children and parents through transition periods i.e. starting school. Being aware of data protection and how to protect confidentiality except in the case of safeguarding. Code of Conduct The code of conduct sets out what is expected and required of me. In my job role as a childminder this would be: To remain professional at all times and ensure relevant paperwork is kept up to date. To promote children learning & development. To ensure children’s behaviour is dealt with in a positive way. To promote equal opportunity and embrace diversity. To respect confidentiality at all times with the exception of safeguarding issues. To work in partnership with parents. To ensure no offensive language is used by myself of visitors.

Merchant Banking

Merchant Banking Merchant banking may be defined as, â€Å"an institution which covers a wide range of activities such as management of customer services, portfolio management, credit syndication, acceptance credit, counselling, insurance, etc. † Merchant Banks are popularly known as â€Å"issuing and accepting houses†. They offer a package of financial services. Unlike in the past, their activities are now primarily non-fund based. One of the basic requirements of merchant banks is highly professional staff with skills and worldwide contacts.The basic function of merchant banks is marketing corporate and other securities, that is guaranteeing sales and distribution of securities. All the aspects- origination, underwriting and distribution of the sale of industrial securities are handled by them. They are experts and good judges of the type, timing and terms of issues and make them acceptable to investors under prevailing preferences and market conditions, and at the sa me time afford the borrowing company, flexibility and freedom that it needs to meet possible future contingencies.They guarantee the success of issues by underwriting them. They also provide all the services related to receiving applications, allotment, collecting money, sending share certificates and so on. The merchant banker normally does not assume all the risk himself while underwriting the issue. Merchant banks offer services also to investors. The range of activities offered by merchant banks is much wider than sponsoring public issues of industrial securities. They offer project finance, syndication of credit, corporate advisory services, mutual fund investments, investment management etc.Services of Merchant Banks †¢ Project Counselling: Project counselling includes preparation of project reports, deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks. It also includes filling up of application forms with relevant information for obtaining funds from financial institutions and obtaining government approval. †¢ Issue Management: Management of issue involves marketing of corporate securities viz. equity shares, preference shares and debentures or bonds by offering them to public.Merchant banks act as an intermediary whose main job is to transfer capital from those who own it to those who need it. After taking action as per SEBI guidelines, the merchant banker arranges a meeting with company representatives and advertising agents to finalise arrangements relating to date of opening and closing of issue, registration of prospectus, launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing of issues is done by the companies in consultant with the merchant bankers. †¢ Underwriting of Public Issue:Underwriting is a guarantee given by the underwriter that in the event of under subscription, the amount underwritten would be subscribed by him. Banks/Merchant banking subsidiaries cannot underwrite more than 15% of any issue. †¢ Managers, Consultants or Advisers to the Issue: The managers to the issue assist in the drafting of prospectus, application forms and completion of formalities under the Companies Act, appointment of Registrar for dealing with share applications and transfer and listing of shares of the company on the stock exchange. Companies can appoint one or more agencies as managers to the issue. Portfolio Management: Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds issued by different companies and government securities. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. †¢ Advisory Service Relating to Mergers and Takeovers: A merger is a combination of two companies into a single company where one s urvives and other loses its corporate existence. A takeover is the purchase by one company acquiring controlling interest in the share capital of another existing company.Merchant bankers are the middlemen in setting negotiation between the two companies. †¢ Off Shore Finance: The merchant bankers help their clients in the following areas involving foreign currency. (a) Long term foreign currency loans (b) Joint Ventures abroad (c) Financing exports and imports (d) Foreign collaboration arrangements †¢ Non-resident Investment: The services of merchant banker includes investment advisory services to NRI in terms of identification of investment opportunities, selection of securities, investment management, and operational services like purchase and sale of securities. †¢ Loan Syndication:Loan syndication refers to assistance rendered by merchant bankers to get mainly term loans for projects. Such loans may be obtained from a single development finance institution or a s yndicate or consortium. Merchant bankers help corporate clients to raise syndicated loans from banks or financial institutions. †¢ Corporate Counselling: Corporate counselling covers the entire field of merchant banking activities viz. project counselling, capital restructuring, public issue management, loan syndication, working capital, fixed deposit, lease financing acceptance credit, etc. bibliography a manual on merchant banking by JC Verma Merchant Banking Merchant Banking Merchant banking may be defined as, â€Å"an institution which covers a wide range of activities such as management of customer services, portfolio management, credit syndication, acceptance credit, counselling, insurance, etc. † Merchant Banks are popularly known as â€Å"issuing and accepting houses†. They offer a package of financial services. Unlike in the past, their activities are now primarily non-fund based. One of the basic requirements of merchant banks is highly professional staff with skills and worldwide contacts.The basic function of merchant banks is marketing corporate and other securities, that is guaranteeing sales and distribution of securities. All the aspects- origination, underwriting and distribution of the sale of industrial securities are handled by them. They are experts and good judges of the type, timing and terms of issues and make them acceptable to investors under prevailing preferences and market conditions, and at the sa me time afford the borrowing company, flexibility and freedom that it needs to meet possible future contingencies.They guarantee the success of issues by underwriting them. They also provide all the services related to receiving applications, allotment, collecting money, sending share certificates and so on. The merchant banker normally does not assume all the risk himself while underwriting the issue. Merchant banks offer services also to investors. The range of activities offered by merchant banks is much wider than sponsoring public issues of industrial securities. They offer project finance, syndication of credit, corporate advisory services, mutual fund investments, investment management etc.Services of Merchant Banks †¢ Project Counselling: Project counselling includes preparation of project reports, deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks. It also includes filling up of application forms with relevant information for obtaining funds from financial institutions and obtaining government approval. †¢ Issue Management: Management of issue involves marketing of corporate securities viz. equity shares, preference shares and debentures or bonds by offering them to public.Merchant banks act as an intermediary whose main job is to transfer capital from those who own it to those who need it. After taking action as per SEBI guidelines, the merchant banker arranges a meeting with company representatives and advertising agents to finalise arrangements relating to date of opening and closing of issue, registration of prospectus, launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing of issues is done by the companies in consultant with the merchant bankers. †¢ Underwriting of Public Issue:Underwriting is a guarantee given by the underwriter that in the event of under subscription, the amount underwritten would be subscribed by him. Banks/Merchant banking subsidiaries cannot underwrite more than 15% of any issue. †¢ Managers, Consultants or Advisers to the Issue: The managers to the issue assist in the drafting of prospectus, application forms and completion of formalities under the Companies Act, appointment of Registrar for dealing with share applications and transfer and listing of shares of the company on the stock exchange. Companies can appoint one or more agencies as managers to the issue. Portfolio Management: Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds issued by different companies and government securities. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. †¢ Advisory Service Relating to Mergers and Takeovers: A merger is a combination of two companies into a single company where one s urvives and other loses its corporate existence. A takeover is the purchase by one company acquiring controlling interest in the share capital of another existing company.Merchant bankers are the middlemen in setting negotiation between the two companies. †¢ Off Shore Finance: The merchant bankers help their clients in the following areas involving foreign currency. (a) Long term foreign currency loans (b) Joint Ventures abroad (c) Financing exports and imports (d) Foreign collaboration arrangements †¢ Non-resident Investment: The services of merchant banker includes investment advisory services to NRI in terms of identification of investment opportunities, selection of securities, investment management, and operational services like purchase and sale of securities. †¢ Loan Syndication:Loan syndication refers to assistance rendered by merchant bankers to get mainly term loans for projects. Such loans may be obtained from a single development finance institution or a s yndicate or consortium. Merchant bankers help corporate clients to raise syndicated loans from banks or financial institutions. †¢ Corporate Counselling: Corporate counselling covers the entire field of merchant banking activities viz. project counselling, capital restructuring, public issue management, loan syndication, working capital, fixed deposit, lease financing acceptance credit, etc. bibliography a manual on merchant banking by JC Verma