Articles Of Confederation 4 :: essays research papers

After the Revolutionary War, the United States government was in a state of frenzied disillusion. In an attempt to solve the problem of a lack of a functioning government, the Articles of Confederation were formed. Often times called the “Articles of Confusion';, the Articles of Confederation paved the way to our modern system of government. Out of the unreliable and unstable Articles, the Constitution was formed. Though the Articles instilled a seemingly well functioning governmental establishment, the Articles were far from a flawless governing mechanism.   Ã‚  Ã‚  Ã‚  Ã‚  In the early days of the new British-free America there was a great fear of the new system of government being of the same mold of their former, a monarchy, or even a dictatorship. There was one group of revolutionaries that supported a monarchy being formed. This faction was a section of the Continental Army called the Society of the Cincinnati. They urged the rise of George Washington, a veteran colonial general, as the country’s new king, but Washington refused. In an effort to subside the uproar of the common folk, and to prevent eventual isolation of sovereignty of national affairs unto one person, the Articles granted each state exclusive governing powers over it’s own political matters. By doing this, the Articles prevented the new-formed states from revolting against their own government, and they also gave the states absolute control over their own local and regional matters and political conflicts.   Ã‚  Ã‚  Ã‚  Ã‚  In an effort to create a greater sense of unity and national pride in the States, the Articles forced most states with western land claims to forfeit their claims to the federal government, so that the smaller, less populated states would join the union . This did not make any of the states with western territorial expansion content. They felt that the government was starting to take too much authoritative control. With this in mind, the representatives in congress made the promise that when specified parcels of the lands had a population of sixty thousand or more, they would be eligible for statehood. The requirements that were used for birth into the union are the same that are used today. This helped to suffice the desire to extinguish the current government, and contributed to a greater feeling of pride and unification amongst the states.   Ã‚  Ã‚  Ã‚  Ã‚  A piece of the Articles that was very popular with most of the public was the inability of the government, or congress, to enforce taxes on the general public, or individual states.

An Hour or Two Sacred to Sorrow Essay

In the essay, â€Å"An Hour or Two Sacred to Sorrow,† the writer, Richard Steele, explains to the reader that many unexpected and unfortunate events may occur in our lifetime; however, those occurrences should be looked back upon rather than forgotten. He writes from his own experiences of loss, but continues to include the fact that it is acceptable even satisfying to remember such events. The writer begins by reliving the day his father died. At a mere age of five he remembers knowing something was wrong because no one would play with him, but no recollection as to what was truly amiss in the situation. When he says, â€Å"I†¦fell a-beating at the coffin and calling Papa†¦Ã¢â‚¬  that statement along with, â€Å"†¦ I know not how. I had some slight idea that he was locked up in there,† explains further that he knew something was unsound about the situation just not exactly what it was. He then talks about how his mother smothers him out of her own grie f, which struck his instinct of sorrow for his mother. He then moves on to express the fact that when we’re older we obtain memory better than at a younger age; in addition, he explains that different memories cause different reactions in a person. For instance, when a person passes away all you find yourself remembering is their death not the cheerful memories they left with you. He then elaborates this point by saying, â€Å"†¦ gallant men.. cut off by the sword move rather our veneration than our pity†¦Ã¢â‚¬  Saying this he points out that when a man from the military dies we are more respectful than sorry or upset by the incident. Many people would prefer not to remember the mournful events of their lives, but rather the joyful experiences. In continuation he says that the first beauty he ever beheld was in a virgin. He describes her as ignorantly charming and carelessly excelling, which lead him to understand why death should have a right to her, but it still baffles him why death also seems drawn to the humble an d meek. He watches death become an object of little value when he states, â€Å"†¦ death become the pretty trifler.† He describes the virgins sudden death and the anguish he felt after hearing this news. He then invites friends who had known her, and they began drinking two bottles of wine apiece; however, he finds that no matter how much he drinks it can not erase what had happened the night before. Which gave them all the more reason to recollect the impact she had left on their lives. In conclusion the writer relives past dismal  experiences that stood out in his memory. In many ways life can be full of sorrow, but we must learn how to move on from these events in our lives. on to better times. He explains that many unexpected and unfortunate events may occur in our lifetime; however, those occurrences should be looked back upon rather than forgotten.

Analysis of Kraft Foods

[pic] Kraft Food Analysis of Kraft Food Kraft Foods is an American food and beverage multinational company. It produces and markets many brands to more than 170 countries, and 12 of its brands earn more than $1 billion worldwide annually (â€Å"Kraft Foods†, 2011). Most of the food products which we consume everyday belongs to this company. For instance, some of well-known brands are Jacobs and Maxwell, Milka and Toblerone, Tang and Cipso. It is the successful and popular leading food companies of the world. So, Kraft Foods will be reviewed in terms of values and promises that it communicates with consumers and employees, communication and job satisfaction respectively. Values of the company are shared among its employees. First value of the company is its employees. The company highlights the importance of its employees and their contribution to the company. It emphasized that hardworking and passionate workers, who constantly seeks ways to make content consumers by finding innovation, make the company what it was. After it, Focus, Passion, Speed, Teamwork and Trust are listed as the most important values of company. Those five values describe fundamental structure of organizational process. Firstly, focus on what is needed to improve the business and focus on what is important to make customers happy is like starting point of the process. Generating innovation according to needs is second value of the company. After focus and innovation, Passion which is motive of making better outcome in each work, the next value in order to reach the most desired outcome. You can manage focus, innovation and passion, but you also have a speed as a fourth value of company in order to compete with other food companies. As it is known in the beginning of the paragraph, employees are the key agents who make the name of brand. So, it is normal that fifth value is the teamwork. The final value of it is trust which is the fundamental block of teamwork and organizational communication. Firstly, the company promises to be open and inclusive, because it sees this value as a critical value to create a high-performing organizational culture. Being open to different perspectives make innovation easy and better. It claims that openness and inclusiveness to diversity are so embedded into their way of doing business and into every department of it. They constitute its blocks of organizational culture. Taking into account every possible different perspectives and evaluate them is one of promises which the company gives to its employees. Also, it guarantees that discrimination or harassment based on age, race, disability, national origin, religion, sex, sexual orientation or any other legally protected status are not allowed. If the company is able to approach diversity in a positive manner, this gives workers feeling of recognition and makes them more motivated. When we want to give concrete example, 43% of their mployees are women and 35% of management team is constituted by females. It shows us that there is no gender discrimination on hiring and it opens up to gender diversity. Secondly, it promises employees that they will be work in an international environment. For instance, they can be participated into European/International projects. Other than it, they can join into short-term overseas assignments, and then join into l onger-term assignments when they develop in their career path. Moreover, the company assures training and development programs for employees in order to reach their best level of expertise. These programs are like job training, cross functional projects and corporate training programs. It also promises giving feedback about how employees’ outcome contributes to the business in general. It is obvious that the promises of the company are motivating factor for employees. When we take into account both values and promises of the company, we can conclude that we are open to all ideas, we can discuss about them in a participative context, we can decide collectively and finally we deliver what we decided to others in order to make them be aware of what is going on the company. Their motto is â€Å"We discuss. We decide. We deliver. † The company uses variety of internal communication channels. Social and sports activities are among the practices which HR department prefer to use as internal communication channels. Employees can join sports teams and organized social events including a winter ski day, summer golfing day and a winter family fun day during the holidays. Those enjoyable events are organized by the company-subsidized social committee. They make work atmosphere better and improve communication among workers. It also creates a sense of equity, because every employee has equal access to them. In addition to this, employees can have a chance of socializing and increasing interaction with their co-workers by providing richly physical workplace which contains the fitness facility with free membership, employee lounge with foosball and television, quiet room for meditation and reflection, and a nap room for employees who need a quick break during the day, cafeteria with healthy menus and subsidized meals. While those places offer many opportunities for employees, they can facilitate the internal communication at the same time. The company thinks that every people has different ways of absorbing news and information, every people can use different channels, therefore the company must use very different channels to communicate with its employees. The Kraft Foods is relatively very successful in this issue. It uses face-to-face communication activities such as town hall meetings and lunch-and-learn sessions. Moreover, it has its corporate intranet and internal blog sites. Newsletters, news magazines and e-business updates are also available for employees. The company is also in Facebook. It shares company news. Their community involvement projects and sustainability efforts are announced here. The most important application of it is that some of the Kraft Foods team join to talk about their own areas of expertise to enable information sharing and facilitates internal communication. One of internal communication channel of the company which is very popular is iPhone. Kraft employees use their iPhones for sending email, organizing calendar, and saving contacts. Kraft employees can listen to audio messages, dubbed â€Å"Kraft Casts,† from the CEO and other executives on their iPhones. They are so useful to stay up-to-date on the latest corporate strategies and branding initiatives. It can be also very effective to improve [pic][pic][pic] downward communication. It makes easy information flow from top people in the company like CEOs to all employees. Learning company future strategies or plans by reading from a bulletin is less visual and live compared to by listening and watching from iPhone. There have been many community involvement projects within organization. Employees organized national and international charitable organizations with the support of company. For instance, in my view, the welfare activities serve two functions for the company. Firstly, they can make employees from all levels of organization together. They are one of social events and internal communication channels. They can work for an interdependent goal cooperatively during these charities. Employees from different departments can have a contact with each other and can improve their social relationships with co-workers. In this way, internal communication among employees can be facilitating thanks to them. [pic][pic][pic] Secondly, they can also become an external communication channel for the company. We can encounter much news in the social media when the company performs a charitable activity or subscribes to a relief fund. The company can communicate its brand externally thanks to this news. They can make contribution to the respectability, reliability of company, and at the same increases brand awareness at the same time. In sum, we can consider charitable organizations as both internal and external communications channels. Employer brand of the company is one of external communication channels of it. It can communicate itself through its brand name. While it creates its brand with what it did in the market, the brand creates the company at the same time. There is a reciprocal relationship between two. It can tell the reputation and image of the company in the market via its brand. At the same time, this external communication channels can be a motivating factor for the employees and for the upcoming new employees. The more famous and prestigious brand is, the more people want to work in this company. Its reputation in the market will attract the new employees. Upward communication is less applied in organizations than downward communication. Although there is an open and inclusive workplace for generating diverse ideas, we can not know whether this freedom is also seen in performance evaluation of managers by subordinates. There is not available information about whether subordinate appraisals of managers are applied or are not. Appraisals of supervisors which are done by the subordinates can give feedback about the performance of supervisors. If they take into account these feedbacks, they can be more effective in their working process and managing process. As employees start to recognize that heir feedback is taken into account, upward communication can be also provided. On the other hand, the company has spread all around the world. For instance, one manager who is from Europe can supervise the employees who are from very different and far away country. Thanks to the ways the Internet enables communications like teleconference, a manager can work for a far away office of the company (Waltner, 2010). Although it has so me advantages like company can choose best manager by basing on performance, not basing on location, it can be a barrier to upward communication. While networks for teleconference are available more easily when there is a meeting between senior managers from different departments, it can accessed more difficulty when more subordinate employee need it to communicate with managers. Moreover, the other factor is cultural differences. How much employees want to share their ideas about managers can be change according to culture. For instance, in more collectivistic culture, people can think that making criticism about a person can be perceived as offense by him. So, they don’t want to share its views about him in order to conform existing situation. They can fear of being evaluated negatively by their managers if they give negative feedback about their managers. So, suggestion or complaint boxes can be a good solution for those employees. Attitude surveys are one possible ways of improving upward communication. However, if the results of those surveys about the performance and effectiveness of manager are not taken into account by managers, they have no value (Aamodt, 2010). So, managers also organize a time for discussing the feedback with employees face to face. Although Kraft Foods has those kinds of surveys like many international companies, in my view, it can not effectively discuss its result with subordinates. Because, some employees have still reported some upward communication problem in a website that employees can report reviews about their company anonymously. One of employees says that there is low level of employee participation in decision making. Also, he suggested that the company should take into account the employee surveys (Kraft Foods Employee Review, 2011). Along with that comment, Kraft should initiate more democratic and participative style of management. It can improve upward communication if employees are able to generate ideas or share their concerns about process by including in the decision-making process. The company has all of the channels of communication which are essential in downward communication like bulletin boards, annual reports, newsletters, annual fact sheets or intranets. Although much of communication in organization is downward when compared with upward and although most of channels are available, still downward communication can not reach perfect level. For instance, although the company has a policy manuals or annual reports, they can not function properly, because they have a very technical language. Employees have to read themselves. Interactive meetings to discuss about current company news can be more effective than only transmitting corporate news and facts through written material. For instance, although Kraft Foods Senior Financial Analyst says that the company has many benefits, he suggests that it should improve communication and especially downward communication from middle management (Kraft Food Employee Review, 2011). Although the company has many channels, still some managers don’t really share essential things with employees. Some of them don’t set a proper guideline for what employee will do to achieve its goals. They don’t healthy share about what, when and how employees will do a task. They think that employees have already known those things, because they are their work. They have a problem in taking employees’ perspectives. So, people managerial positions can be received training programmes to improve their communication skill with their subordinates and make them aware of needs and strivings of their subordinates. Do employees really satisfied with their jobs? For instance, Dieter Follens who is the manager of Product Costing Coffee in Kraft Foods Europe said about the company is that it did not provide only a job for him, but it also provides a career in Finance for him. He had worked as an assistant with internal controls, a financial analyst, a cost controller, finance manager in our European Union (EU) Office after Belgium, and product cost manager respectively. This shows us that Kraft Foods provides employees job rotation. It is one of motivating factors of the company. They can satisfy the needs of growth and challenge. Employees feel less boredom and feel more motivated to their jobs. Also, they can understand better how they contribute to the development of the company (Robbins & Judge, 2011). Understanding the effectiveness of individual outcome and the significance of task which are among five core dimensions of Job Characteristic Model explains the satisfying effects of job rotation. Also, Mr. Follens indicated that awareness of contributing to the the growth f company make him satisfied and engaged with job, an even he added that when contribution took place in different ways, then satisfaction turns into real pleasure for him. His comments obviously showed us that job rotation and changes in the job characteristics make workers satisfied. This is the example of satisfied employee. It is impossible to expect that all employees feel and think same things about the company and their position. Also , Dieter works in organizational part of the company. We can analyze Kraft Food Company as focusing separately on white collar workers and blue collar workers. It is a big multinational manufacturing company in the field of food and beverage, so most of its employees are blue collars, in other words, they are hourly workers. While flexile work options were useful for professional employees, they are not good for manufacturing ones. Therefore, employee dissatisfaction was observed among hourly workers in 2001 and 2002 surveys. Fast Adapts Program was prepared in order to decrease the dissatisfaction. It provided workers shift-swapping, single-day vacations and job sharing. Changes in work options make increase in the level of satisfaction one year later (Executive Office of the President Council of Economic Advisers, 2010). The underlying factor that made this improvement was the autonomy, because it offered plant managers the autonomy in deciding the best suitable flexible work options for their own plant and implementing them. One empirical study showed that when the perceptions of nurses about opportunity of structural empowerment changed, changes in psychological empowerment and so in job satisfaction were observed. It means that employees feel more motivated to work and satisfied with their job when they can make work related decisions that will affect themselves (Laschinger, Finegan, Shamian, & Wilk, 2004). We can also form a relationship between this employee empowerment strategy and the Job Characteristic Model. It proposes that any job has five basic dimensions: Skill variety, task identity, task significance, autonomy, feedback. The most relevant dimension to the empowerment programs in Kraft Foods is the autonomy. It can be defined as the degree of freedom which job offer employees about scheduling the work and deciding procedures to implement it. This freedom makes employees more satisfied and intrinsically motivated to job over time by providing to them experienced responsibility and recognition (Robbins & Judge, 2011). We can observe the same pattern in workers of Kraft foods. There are basic key motivators for employees. As in the most companies, compensation and benefits are among key motivator factors of Kraft Foods. For instance, Canada Kraft offers great financial benefits like bonuses for some employees (depending on the position), new employee referral bonuses (up to $1,000 for some positions), and year-end bonuses (to $100,000). Also, it provides health benefits plan including fertility drug treatments. In addition to this, it offers an employee store with discounted food products, dinner catering services (called the â€Å"Kraft Kafe 5 O'Clock Solutions† to take home meals). Also, it provides maternity leave with 100% of salary for 17 weeks. Performance management is one of motivator factors of Kraft Foods. For instance, employees receive individual performance reviews every 6 months in Kraft Canada (Yerema & Leung, 2011). In order to evaluate employees better, managers enroll training programs how to make effective performance reviews. Also, performance evaluation is not only based on one manager’s views, but also it is based on co-workers and other managers who know the employee. In addition to this, it takes a consultant service to make employee satisfaction and engagement surveys better and professionally. In relation to performance management, the most important motivating factor of the company is the training and skills development opportunities for employees. Two motivators are very much related to each other. As the company makes proper performance management, it can organize better training programs according to developmental needs of employees. For instance, Kraft Canada offers tuition subsidies for courses that are related to employees’ position for the development of them. Moreover, it provides professional accreditations; in-house training programs; online training programs; new employee orientation program. In addition to this, the company offers skills development outside the position of employees in Kraft test kitchens like food tastings, cooking classes and culinary presentations. Also, Kraft Foods North America (KFNA) promotes intranet provides professional development resources for its employees including access to training and mentoring. Values and ethics are among key motivator factors of the company. There is an available 15 pages document of Codes of conduct and Kraft Foods Rules of Behavior in the website of the company. It is also translated so many other languages in order to communicate its compliance and values correctly and efficiently with employees from different nations. It states 10 rules which all employees have to be obeyed. For instance, one of the most important rules of it is behaving people fairly. There are some missing motivating factors for employees in the company like clear career path. For instance, Cristina Monterrey who is Human Capital Senior Manager at PricewaterhouseCoopers emphasized that Pwc provide a clear career path to employees. Each employee knows what will be his position in five years. Thanks to this knowledge about their future work life, employees feel more secure and certainty. In this way, employees feel more committed to their work and companies. Other than themselves, an agent helps them organizing their future. Worries about future which can cause stress destroyed in this way and employees work passionately. But, in the case of Kraft Foods, although it provides feedback about performance and training programs according to these feedbacks, there is no available information about a structured career program for employees. In order to make employees more motivated, career plans can be provided for them. Kraft Foods Category Planner in Glenview said that Kraft Foods is a lucrative place to work, but the employees earn every cent they make due to extremely long work hours (Kraft Food employee review, n. d. ). Although he reported that there were lots of opportunities, he paid attention to work load especially for employees with a family. Long work hours can create stress problems, because employees can not balance their work and family life properly. Long hours can be a fundamental dissatisfying factor and it can harm performance along with effect of stress. In my view, there can be some modifications in work schedule. For instance, they can provide alternative or flexible work schedules. Employees start to feel more control over their work by deciding their own working hours. This autonomy and positive effect of change on family life can make employees more motivated to their jobs. References Aamodt, M. G. (2010). Industrial/Organizational Psychology. USA: Wadsworth Cengage learning. Executive Office of the President Council of Economic Advisers. (2010). Work-life Balance and the Economics of the Workplace Flexibility. Kraft Foods. (2011). In Wikipedia. Retrieved November 19, 2011, from http://en. wikipedia. org/wiki/Kraft_Foods. Kraft Foods Employee Review (2011). Retrieved from http://www. glassdoor. com/Reviews/Kraft- Foods-Reviews-E13294. htm. Laschinger,H. K. S. , Finegan, J. E. , Shamian, J. , & Wilk, P. (2004). A longitudinal Analysis of the Impact of Workplace Empowerment on Work Satisfaction. Journal of Organizational Behavior, 25, 527–545. Robbins, S. P. , & Judge, T. A. (2011). Organizational Behavior. New jersey: Pearson. Yerema, R. and Leung, K. (2011). Chosen as one of Canada's Top 100 Employers and Greater Toronto's Top Employers for 2012. Retrieved from http://www. eluta. ca/top-employer-kraft-canada. Waltner, C. (2010). Networking Communications for the Global Corporation: An Interview with Kraft Foods CIO, Mark Dajani. Retrieved from http://newsroom. cisco. com/feature-content? type=webcontent&articleId=5305212. [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic]

Gibsons Passion essays

Gibson's Passion essays The problem of illegal immigration is twofoldone, there is the problem that illegal immigrants take jobs away from American citizens. The second, a more recently recognized threat, is that because illegal immigrants often lay America open to terrorist threats. Approaching this problem must not simply be confined to improving airport security, border patrols and creating less permeable borders. Many high-risk immigrants penetrate the border legally, often with temporary visas. Once in the country, they find work under the table.' Thus, first and foremost individuals who give illegal immigrants employment and who provide financial sustenance for this underground economy must be prosecuted to the fullest extent of the law. Another potential solution that has been offered is introducing a national identification card. However, such a card already effectively exists, that of a driver's license that one must use to board planes. According to David Simcox, "despite a campaign by the American Association of Motor Vehicle Administrators for more uniformity, the formats, security features and databases of state licenses vary wildly. A majority does not require the Social Security number. Only a handful use biometrics, usually fingerprints. And there is a hodgepodge of mutually incompatible formulas for assigning unique numbers to drivers." (Simcox, 2002) This criticism should not be leveled simply upon driver's licenses, but upon all forms of identification for American citizens. A national identity card is less necessary than greater uniformity of all documentation, and more responsible checking for documents that exist. Consider visas, for instance. Surprisingly, even after September 11, the United States government has also failed to enforce time limits on visas of foreign-born nationals. (Camarota, 2002) If the U.S. Government ...

3 Types of Errors in Interpolated Coordination

3 Types of Errors in Interpolated Coordination 3 Types of Errors in Interpolated Coordination 3 Types of Errors in Interpolated Coordination By Mark Nichol Errors in sentences with interpolated coordination, in which a phrase providing additional information is inserted but punctuation and/or words that provide complementary structure are omitted or misplaced, are frequently made but easily avoided, as explained in the discussion and demonstrated in the revision following each example below. 1. It is widely regarded as one of, if not the, greatest films ever made. The flaw in this sentence is simple to detect- simply omit the parenthetical phrase: â€Å"It is widely regarded as one of greatest films ever made.† If the base sentence is syntactically flawed, then the same sentence, with interpolated wording, is also incorrectly constructed. To repair the damage, word the base sentence so that it stands on its own (â€Å"greatest films† must be preceded by the article the within the base sentence), and revise the parenthetical phrase so that it complements the corresponding phrase in the base sentence (â€Å"greatest films† cannot serve both the base sentence and the parenthetical phrase): â€Å"It is widely regarded as one of the greatest films, if not the greatest film, ever made.† An alternative revision that interpolates the parenthetical phrase early but is not as elegant is â€Å"It is widely regarded as, if not the greatest film, one of the greatest ever made.† 2. Mobile apps perform the same or better than they did a year ago. Here, the phrase â€Å"or better than† is not technically a parenthetical phrase because it is not punctuated (though some writers would do so), but it serves the same function- it interpolates additional wording into the base sentence, in this case â€Å"Mobile apps perform the same they did a year ago.† But notice the flaw here: The comparative phrase â€Å"the same as† is missing a word, so revise as shown here: â€Å"Mobile apps perform the same as or better than they did a year ago.† Without this insertion, the erroneous implication is that than serves as a conjunction for both same and better when, according to grammatical rules, it supports only the latter word. 3. Membership or inviting support for the organization is a criminal offense that carries a sentence of up to ten years. A missing word is the problem here, too, but this time it is an absent preposition- membership requires its own preposition so that, similar to the problem in the previous example, it is not misunderstood to share for with â€Å"inviting support†: â€Å"Membership in or inviting support for the organization is a criminal offense that carries a sentence of up to ten years.† (Again, the interpolation â€Å"or inviting support for† could be treated as a parenthesis with bracketing punctuation, but doing so is unnecessary.) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:Program vs. ProgrammeOne Fell SwoopPreposition Mistakes #1: Accused and Excited

PHILOSOPHY AND TRADITIONS IN MANAGAMENT RESEARCH Assignment - 1

PHILOSOPHY AND TRADITIONS IN MANAGAMENT RESEARCH - Assignment Example In this current essay, the researcher has tried to critically appraise the theories with the view of â€Å"Free Will†. It is a philosophical concept that refers to the capability of the economic agent to select a particular option among various alternatives (Free Will, 2014). Most of the philosopher has supported that, the notion of â€Å"free will† is strongly related with the ethical sense of the economic agents and the firm. The term free will refers to the power of the rational agent to select best alternative one from the sort of several options. Various constraints that included in the subject matter of free will concept, includes physical constraints, metaphysical constraint, social constraint and mental constraint. The principle of free will provides implication in various segments, such as ethical, religious, legal and scientific (Williamson, 1998). For example, in science, free will suggests different ways to predict human behaviour. Further, in religious realm; it implies choice of individual action that can increase moral obligation or certain injection to a man and so on. Most of the philosopher suggested that â€Å"free will is strongly linked with ethical obligation and responsibilities of the agents† (Plato.stanford.edu, 2014). In respect to the values of love and friendship, freewill also plays a significant role in building the root of relationships. In economic terms, a firm basically exists and state its decisions in order to make the utmost use of its resources. Firms interact with the market to determine demand and price and then allocate its resources to maximize its profits (Moyle, 1998). Consumers always try to maximize their overall utility whereas business organizer tries to maximize net profit. Thus, theories of firm always adopted and analysed in respect to the changing market and economics. The firm’s theory comprise of several economic theories

Option Pricing Essay Example | Topics and Well Written Essays - 3250 words

Option Pricing - Essay Example Options are used by holders for leverage or for protection. The leverage function helps the holder to control the shares bought for a portion what they would have cost. On the other hand, protection measures are adopted when the holder wants to guard against price fluctuations. He enters into a contract with the rights to acquire the stock for a fixed period and specific price. The contracts, in either case, should be highly observed and monitored for efficient outcomes. The methods used in pricing options have been applied for years and can only be effective if the worth of the option is achieved. This is determined by the probability that on the expiration, the option price will be on a substantial amount of money. Any holder of an option expects a gain on his underlying asset to attain the worth of holding for the time given. The Black Scholes and the Binomial method are the elaborated on below in determining the true worth of an option. The Black Scholes Model: This model dates b ack in the twentieth century in its application. It was developed by Fisher Black and Myles Scholes in 1973 hence the name Black Scholes (Marion, 2003, 16). It is still in use today. This model uses the theoretical call price whereby the dividends amounting during the life of the option is not included in the computation.   Theoretically, the price of an option (OP) has been determined by the formulae given below: In this case: (Simon & Benjamin, 2000, 255; Brajendra, 2011, 372) The variables in the above formulae are expressed as shown below: S is the stock price X is the strike price t is the time remaining until the expiration, denoted as percent of a year r is the compounded risk-free interest rate predominant in the current market v is the annual volatility of stock price.   ln is the natural logarithm N(x) is the standard normal cumulative distribution function e is the exponential function Below are the necessary requirements for validating this model: Dividends are not p aid during the stock period. Variance and interest rate does not change in the course of the option contract. There is no discontinuity in the stock price i.e. a shift from one price to another like the case of tenders. This model applies volatility and normal distribution to determine the movement of options. The Excel add-in format can be used to calculate the normal distribution. Volatility, on the other hand, can be implied or historical. The implied volatility of an option allows market traders to observe the current prices of options to determine how volatile they are. This is done by calculating the standard deviation i.e. v2, and in this case, all other variables have to be known. Nevertheless, historical analysis is not left out. The traders have to observe the performance of the option over past years to assess volatility.