Intermediate Accounting 14th Chapter 5

Questions 1. The balance sheet provides information about the nature and amounts of investments in enterprise resources, obligations to enterprise creditors, and the owners’ equity in net enterprise resources. That information not only complements information about the components of income, but also contributes to financial reporting by providing a basis for (1) computing rates of return, (2) evaluating the capital structure of the enterprise, and (3) assessing the liquidity and financial flexibility of the enterprise. 2. Solvency refers to the ability of an enterprise to pay its debts as they mature.For example, when a company carries a high level of long-term debt relative to assets, it has lower solvency. Information on long-term obligations, such as long-term debt and notes payable, in comparison to total assets can be used to assess resources that will be needed to meet these fixed obligations (such as interest and principal payments). 3. Financial flexibility is the abil ity of an enterprise to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities.An enterprise with a high degree of financial flexibility is better able to survive bad times, to recover from unexpected setbacks, and to take advantage of profitable and unexpected investment opportunities. Generally, the greater the financial flexibility, the lower the risk of enterprise failure. 4. Some situations in which estimates affect amounts reported in the balance sheet include: (a)allowance for doubtful accounts. (b)depreciable lives and estimated salvage values for plant and equipment. (c)warranty returns. d)determining the amount of revenues that should be recorded as unearned. 5. An increase in inventories increases current assets, which is in the numerator of the current ratio. Therefore, inventory increases will increase the current ratio. In general, an increase in the current ratio indicates a company has better liqui dity, since there are more current assets relative to current liabilities. 6. Liquidity describes the amount of time that is expected to elapse until an asset is converted into cash or until a liability has to be paid.The ranking of the assets given in order of liquidity is: (1) (d) Short-term investments. (2) (e) Accounts receivable. (3) (b) Inventory. (4) (c) Buildings. (5) (a) Goodwill. 7. The major limitations of the balance sheet are: (a)The values stated are generally historical and not at fair value. (b)Estimates have to be used in many instances, such as in the determination of collectibility of receivables or finding the approximate useful life of long-term tangible and intangible assets. c)Many items, even though they have financial value to the business, presently are not recorded. One example is the value of a company’s human resources. 8. Some items of value to technology companies such as Intel or IBM are the value of research and development (new products that are being developed but which are not yet marketable), the value of the â€Å"intellectual capital† of its workforce (the ability of the companies’ employees to come up with new ideas and products in the fast changing technology industry), and the value of the company reputation or name brand (e. . , the â€Å"Intel Inside† logo). In most cases, the reasons why the value of these items are not recorded in the balance sheet concern the lack of faithful representation of the estimates of the future cash flows that will be generated by these â€Å"assets† (for all three types) and the ability to control the use of the asset (in the case of employees). Being able to reliably measure the expected future benefits and to control the use of an item are essential elements of the definition of an asset, according to the Conceptual Framework. 9.Classification in financial statements helps users by grouping items with similar characteristics and separating items with different characteristics. Current assets are expected to be converted to cash within one year or one operating cycle, whichever is longer—property, plant and equipment will provide cash inflows over a longer period of time. Thus, separating long-term assets from current assets facilitates computation of useful ratios such as the current ratio. 10. Separate amounts should be reported for accounts receivable and notes receivable.The amounts should be reported gross, and an amount for the allowance for doubtful accounts should be deducted. The amount and nature of any nontrade receivables, and any amounts designated or pledged as collateral, should be clearly identified. 11. No. Available-for-sale securities should be reported as a current asset only if management expects to convert them into cash as needed within one year or the operating cycle, whichever is longer. If available-for-sale securities are not held with this expectation, they should be reported as long-term inves tments. 2. The relationship between current assets and current liabilities is that current liabilities are those obligations that are reasonably expected to be liquidated either through the use of current assets or the creation of other current liabilities. 13. The total selling price of the season tickets is $20,000,000 (10,000 X $2,000). Of this amount, $8,000,000 has been earned by 12/31/12 (16/40 X $20,000,000). The remaining $12,000,000 should be reported as unearned revenue, a current liability in the 12/31/12 balance sheet (24/40 X $20,000,000). 14.Working capital is the excess of total current assets over total current liabilities. This excess is sometimes called net working capital. Working capital represents the net amount of a company’s relatively liquid resources. That is, it is the liquidity buffer available to meet the financial demands of the operating cycle. 15. (a)Shareholders’ Equity. â€Å"Treasury stock (at cost). † (b)Current Assets. Include d in â€Å"Cash. † (c)Investments. â€Å"Land held as an investment. † (d)Investments. â€Å"Sinking fund. † (e)Long-term debt (adjunct account to bonds payable). Unamortized premium on bonds payable. † (f)Intangible Assets. â€Å"Copyrights. † (g)Investments. â€Å"Employees’ pension fund,† with subcaptions of â€Å"Cash† and â€Å"Securities† if desired. (Assumes that the company still owns these assets. ) (h)Shareholders’ Equity. â€Å"Premium on capital stock† or â€Å"Additional paid-in capital. † (i)Investments. Nature of investments should be given together with parenthetical information as follows: â€Å"pledged to secure loans payable to banks. † 16. (a)Allowance for doubtful accounts receivable should be deducted from accounts receivable in current assets. b)Merchandise held on consignment should not appear on the consignee’s balance sheet except possibly as a note to the finan cial statements. (c)Advances received on sales contract are normally a current liability and should be shown as such in the balance sheet. (d)Cash surrender value of life insurance should be shown as a long-term investment. (e)Land should be reported in property, plant, and equipment unless held for investment. (f)Merchandise out on consignment should be shown among current assets under the heading of inventories. (g)Franchises should be itemized in a section for intangible assets. h)Accumulated depreciation of plant and equipment should be deducted from the plant and equipment accounts. (i)Materials in transit should not be shown on the balance sheet of the buyer, if purchased f. o. b. destination. 17. (a)Trade accounts receivable should be stated at their estimated amount collectible, often referred to as net realizable value. The method most generally followed is to deduct from the total accounts receivable the amount of the allowance for doubtful accounts. (b)Land is generally s tated in the balance sheet at cost. (c)Inventories are generally stated at the lower of cost or market. d)Trading securities (consisting of common stock of other companies) are stated at fair value. (e)Prepaid expenses should be stated at cost less the amount apportioned to and written off over the previous accounting periods. 18. Assets are defined as probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. If a building is leased under a capital lease, the future economic benefits of using the building are controlled by the lessee (tenant) as the result of a past event (the signing of a lease agreement). 19. Battle is incorrect.Retained earnings is a source of assets, but is not an asset itself. For example, even though the funds obtained from issuing a note payable are invested in the business, the note payable is not reported as an asset. It is a source of assets, but it is reported as a liability because the com pany has an obligation to repay the note in the future. Similarly, even though the earnings are invested in the business, retained earnings is not reported as an asset. It is reported as part of shareholders’ equity because it is, in effect, an investment by owners which increases the ownership interest in the assets of an entity. 20.The notes should appear as long-term liabilities with full disclosure as to their terms. Each year, as the profit is determined, notes of an amount equal to two-thirds of the year’s profits should be transferred from the long-term liabilities to current liabilities until all of the notes have been liquidated. 21. The purpose of a statement of cash flows is to provide relevant information about the cash receipts and cash payments of an enterprise during a period. It differs from the balance sheet and the income statement in that it reports the sources and uses of cash by operating, investing, and financing activity classifications.While the income statement and the balance sheet are accrual basis statements, the statement of cash flows is a cash basis statement—noncash items are omitted. 22. The difference between these two amounts may be due to increases in current assets (e. g. , an increase in accounts receivable from a sale on account would result in an increase in revenue and net income but have no effect yet on cash). Similarly a cash payment that results in a decrease in an existing current liability (e. g. , accounts payable would decrease cash provided by operations without affecting net income). 3. The difference between these two amounts could be due to noncash charges that appear in the income statement. Examples of noncash charges are depreciation, depletion, and amortization of intangibles. Expenses recorded but unpaid (e. g. , increase in accounts payable) and collection of previously recorded sales on credit (i. e. , now decreasing accounts receivable) also would cause cash provided by operating activities to exceed net income. 24. Operating activities involve the cash effects of transactions that enter into the determination of net income.Investing activities include making and collecting loans and acquiring and disposing of debt and equity instruments; property, plant, and equipment and intangibles. Financing activities involve liability and owners’ equity items and include obtaining capital from owners and providing them with a return on (dividends) and a return of their investment and borrowing money from creditors and repaying the amounts borrowed. 25. (a)Net income is adjusted downward by deducting $5,000 from $90,000 and reporting cash provided by operating activities as $85,000. (b)The issuance of the preferred stock is a financing activity.The issuance is reported as follows: Cash flows from financing activities Issuance of preferred stock| $1,150,000| (c)| Net income is adjusted as follows:| | | Cash flows from operating activities| | | Net income| $90,000 | | Adjustments to reconcile net income to net cash provided by operating activities:| | | Depreciation expense| 14,000| | Premium amortization| (5,000)| | Net cash provided by operating activities| $99,000| (d)The increase of $20,000 reflects an investing activity. The increase in Land is reported as follows: Cash flows from investing activities:Investment in Land| $(20,000)| 26. The company appears to have good liquidity and reasonable financial flexibility. Its current cash debt coverage ratio is 1. 20, which indicates that it can pay off its current liabilities in a given year from its operation. In addition its cash debt coverage ratio is also good at . 80 which indicates it can pay off approximately 80% of its debt out of current operations 27. Free cash flow = $860,000 – $75,000 – $30,000 = $755,000. 28. Free cash flow is net cash provided by operating activities less capital expenditures and dividends.The purpose of free cash flow analysis is to determine the a mount of discretionary cash flow a company has for purchasing additional investments, retiring its debt, purchasing treasury stock, or simply adding to its liquidity and financial flexibility. 29. Some of the techniques of disclosure for the balance sheet are: (a)Parenthetical explanations. (b)Notes to the financial statements. (c)Cross references and contra items. (d)Supporting schedules. 30. A note entitled â€Å"Summary of Significant Accounting Policies† would indicate the basic accounting principles used by that enterprise.This note should be very useful from a comparative standpoint, since it should be easy to determine whether the company uses the same accounting policies as other companies in the same industry. 31. General debt obligations, lease contracts, pension arrangements and stock option plans are four items for which disclosure is mandatory in the financial statements. The reason for disclosing these contractual situations is that these commitments are of a lo ng-term nature, are often significant in amount, and are very important to the company’s well-being. 32.The profession has recommended that the use of the word â€Å"surplus† be discontinued in balance sheet presentations of owners’ equity. This term has a connotation outside accounting that is quite different from its meaning in the accounts or in the balance sheet. The use of the terms capital surplus, paid-in surplus, and earned surplus is confusing to the non-accountant and leads to misinterpretation. Brief Exercise 1. Current assets| | | Cash| | $ 30,000| Accounts receivable| $110,000| | Less: Allowance for doubtful accounts| 8,000| 102,000| Inventory| | 290,000| Prepaid insurance| | 9,500| Total current assets| | $431,500|Exercise (a)If the investment in preferred stock is readily marketable and held primarily for sale in the near term to generate income on short-term price differences, then the account should appear as a current asset and be included with trading investments. If, on the other hand, the preferred stock is not a trading security, it should be classified as available-for-sale. Available for sale securities are classified as current or non-current depending upon the circumstances. (b)If the company accounts for the treasury stock on the cost basis, the account should properly be shown as a reduction of total shareholders’ equity. c)Shareholders’ equity. (d)Current liability. (e)Property, plant, and equipment (as a deduction). (f)If an asset in process of construction is being constructed for another party, it is properly classified as an inventory account in the current asset section. This account will be shown net of any billings on the contract. On the other hand, if the asset is being constructed for the use of this particular company, it should be classified as a separate item in the property, plant, and equipment section. (g)Current asset. (h)Current liability. (i)Retained earnings. j)Current asset. ( k)Current liability. 4. GULISTAN INC. | Balance Sheet| December 31, 20XX| Assets| Current assets| | | | Cash| $XXX| | | Less: Cash restricted for plant expansion| XXX| $XXX| | Accounts receivable| XXX| | | Less: Allowance for doubtful accounts| XXX| XXX| | Notes receivable| | XXX| | Receivables—officers| | XXX| | Inventories| | | | Finished goods| XXX| | | Work in process| XXX| | | Raw materials| XXX| XXX| | Total current assets| | | $XXX| | | | | Long-term investments| | | | Preferred stock investments| | XXX| | Land held for future plant site| | XXX| |Cash restricted for plant expansion| | XXX| | Total long-term investments| | | XXX| | | | | Property, plant, and equipment| | | | Buildings| | XXX| | Less: Accum. depreciation— buildings| | XXX| XXX| | | | | Intangible assets| | | | Copyrights| | | XXX| Total assets| | | $XXX| Liabilities and Shareholders’ Equity| Current liabilities| | | | | Salaries and wages payable| | $XXX| | | Notes payable, short-term| | XX X| | | Unearned subscriptions revenue| | XXX| | | Unearned rent revenue| | XXX| | | Total current liabilities| | | | $XXX| | | | | | Long-term debt| | | | |Bonds payable, due in four years| | | $XXX| | Less: Discount on bonds payable| | | (XXX)| XXX| Total liabilities| | | | XXX| | | | | | Stockholders’ equity| | | | | Capital stock:| | | | | Common stock| | XXX| | | Additional paid-in capital:| | | | | Paid in capital in excess of par—common stock| | XXX| | | Total paid-in capital| | | XXX| | Retained earnings| | | XXX| | Total paid-in capital and retained earnings| | | XXX| | Less: Treasury stock, at cost| | | (XXX)| | Total stockholders’ equity| | | | XXX| Total liabilities and stockholders’ quity| | | | $XXX| 7. Current assets| | | | Cash| | $ 92,000*| | Less: Cash restricted for plant expansion| | 50,000| $ 42,000| Equity investments (fair value) (cost, $31,000)| | | 29,000| Accounts receivable (of which $50,000 is pledged as collateral on a bank loa n)| | 161,000| | Less: Allowance for doubtful accounts| | 12,000| 149,000| Interest receivable [($40,000 X 6%) X 8/12]| | | 1,600| Inventory (lower-of-cost (determined using LIFO)-or-market)| | | | Finished goods| | 52,000| | Work-in-process| | 34,000| |Raw materials| | 187,000| 273,000| Total current assets| | | $494,600| 8. a. Dividends payable of $1,900,000 will be reported as a current liability [(1,000,000 – 50,000) X $2. 00] b. Bonds payable of $25,000,000 and interest payable of $2,500,000 ($100,000,000 X 10% X 3/12) will be reported as a current liability. Bonds payable of $75,000,000 will be reported as a long-term liability. c. Customer advances of $17,000,000 will be reported as a current liability ($12,000,000 + $30,000,000 – $25,000,000). 12. VIVALDI CORPORATION| Balance Sheet| December 31, 2012|Assets| Current assets| | | | Cash| | $197,000| | Debt investments| | 153,000| | Accounts receivable| $435,000| | | Less: Allowance for doubtfulaccounts| 25,000| 4 10,000| | Inventory| | 597,000| | Total current assets| | | $1,357,000| | | | | Long-term investments| | | | Debt investments| | 299,000| | Equity investments| | 277,000| | Total long-term investments| | | 576,000| | | | | Property, plant, and equipment| | | | Land| | 260,000| | Buildings| 1,040,000| | | Less: Accum. depreciation| 352,000| 688,000| | Equipment| 600,000| | | Less: Accum. epreciation| 60,000| 540,000| | Total property, plant, and equipment| | | 1,488,000| | | | | Intangible assets| | | | Franchises| | 160,000| | Patents| | 195,000| | Total intangible assets| | | 355,000| Total assets| | | $3,776,000| Liabilities and Stockholders’ Equity| Current liabilities| | | | Accounts payable| | $ 455,000| | Notes payable (short-term)| | 90,000| | Dividends payable| | 136,000| | Accrued liabilities| | 96,000| | Total current liabilities| | | $ 777,000| | | | | Long-term debt| | | | Bonds payable| | 1,000,000| |Notes payable (long-term)| | 900,000| | Total long-term liabili ties| | | 1,900,000| Total liabilities| | | 2,677,000| | | | | Stockholders’ equity| | | | Paid-in capital| | | | Common stock ($5 par)| $1,000,000| | | Paid-in capital in excess of par| 80,000| 1,080,000| | Retained earnings*| | 210,000| | Total paid-in capital and retained earnings| | 1,290,000| | Less: Treasury stock| | 191,000| | Total stockholders’ equity| | | 1,099,000| Total liabilities and stockholders’ equity| | | $3,776,000| | | Sales| | $7,900,000| Investment revenue| | 63,000| Extraordinary gain| | 80,000| Cost of goods sold| | (4,800,000)| Selling expenses| | (2,000,000)| Administrative expenses| | (900,000)| Interest expense| | (211,000)| Net income| | $ 132,000| | | | Beginning retained earnings| | $ 78,000| Net income| | 132,000| Ending retained earnings| | $ 210,000| Or ending retained earnings can be computed as follows: Total stockholders’ equity| | $1,099,000| Add:Treasury stock| | 191,000| Less: Paid-in capital| | 1,080,000| Ending re tained earnings| | $ 210,000|

The Relationship between Education and Income

I TheRelationship between Educion and Income The basic aim of this study is to analyze the link between instruction and income degree. For this ground primary information of marketing staff of Engro Corporation was gathered. This research included 40 functionaries of Engro Corporation. We gave study paper or questionnaire to all of them and besides informed them the ground behind this study so they give right replies. Introduction Education is the chief pillar for any country’s economic sustainability. Education ever play a major function in promotion of any state. Education plays a cardinal function in heightening human values of any state. In many parts of the universe, instruction is good known as built-in portion of human rights. Now instruction is considered more of import than of all time because the universe is going a planetary small town so more and more competition is out at that place. Technology and new innovations are distributing by each passing twenty-four hours. Therefore to get by with this challenge of progress tech epoch states need to bring forth more and more educated and gifted population. As a consequence, poorness and favoritism eliminates itself. For all underdeveloped states it’s of import to transport out all possible attempts to educate their people. Resulting in better homo life criterions, better economic growing and more and more productiveness in all economic sectors. Pakistan as a developing state, it’s in country’s favour to increase literacy rate which automatically decrease poorness ratio in state and addition and prolong societal well-being. With each passing twenty-four hours, demand of skilled and educated workers is increasing in all parts of the universe. This demand proves that both instruction and income are built-in portion of each other. More educated people in state consequences more ratio of income per capita. As literacy rate in Pakistan is really low as comparison to SAARC states. In past few old ages Pakistan authorities seeking to diminish this illiteracy spread. To accomplish this end Government of Pakistan is increasing figure of schools and enrolling good experienced and skilled instructors in all states of Pakistan. More over authorities chief accent is on primary instruction, as primary instruction is the anchor of instruction construction. Due to all these attempts by the authorities, in recent old ages encouraging consequences are popped up. But still there is long long manner to travel. Besides one instruction system is the demand of clip so that every pupil get equal chance to acquire same criterion of instruction so there is no favoritism and stumbling among rich and hapless. Some other factors besides leave immense impact on degree of income. Training and experience despite of the instruction are besides really of import portion to increase or keep degree of income. The degree of demand that exists for the type of labour you are skilled/trained/educated to supply. How long you have been making that peculiar occupation, senior status societal networking and dependability are besides really of import portion. This study is based upon following aims:To detect the verifiable nexus between instruction and income degree.To detect link between the variables itself.To detect short tally relationship between variables.To detect the possibility of causality effects between the variables in Pakistan.Population The population is infinite for this research and all the marketing staff of Engro corporation of Pakistan is included in the population. Target population The population which is traveling to be studied here are the selling employees of Engro corporation of Pakistan Appropriate sampling Techniques A ) Simple Random Sampling The appropriate ground to utilize the simple random trying that, it allows each point in the population to be included in the sample with equal chance of being selected. B ) Stratified trying It is appropriate as the selling staff of Engro corporation of Pakistan can be divided into different groups on the footing of their appellation, inducements and some other similarities. After doing these groups any component from any group can be selected in the sample. C )Convenience Sampling As no planning is required for this sampling and the research worker can choose any sample which is most convenient for him or her so this sampling technique can besides be used. Adopted Sampling Technique Convenience sampling is adopted for this research The restriction involved in this sampling is that, any sort of biasness could go on during trying. For illustration, convenience sample can take to the under-representation or over-representation of peculiar groups within the sample. Sample Size for Current Study 40 selling forces are selected as a sample for this research Nature of Datas The nature of informations for this research is primary. Data aggregation tools/Sources As the nature of informations is primary for research so:The questionnaire was used for the aggregation of informations and it is given bellowGenderMale ( B ) Female2 ) What is your instruction degree? ( a ) Matriculation ( B ) Bachelors or below ( degree Celsius ) Maestro or above 3 ) What is your per month income? ( a ) Below 20,000 ( B ) 20,000 to 40,000 ( degree Celsius ) Above 40,000 2 ) The inquiries for this research are self created and these are selected for the questionnaire because they are relevant to our research. 3 ) Numerical graduated table is used for the above questionnaire because it is largely used for ordinal informations or where there is some interval in the information. Data disposal Procedure As the information under our consideration is primary so:The questionnaire were delivered to the respondents by manus.We told the respondents about our research intent so they were ready to give serious response.By manus the questionnaires were collected back from the respondentsSoftware for Data Analysis SPSS is used for the analysis for the information in this research. Calciferolata AnalysisDescriptive StatisticssNitrogenMeanStd. Deviationinstruction401.6250.74032income degree402.0000.78446Valid N ( list wise )40income degreeFrequencyPercentageValid PercentageAccumulative Percentagebelow 200001230.030.030.020000 to 400001640.040.070.0above 400001230.030.0100.0Entire40100.0100.0The information shows In the sample of 40 selling forces ofEngrOCorporation of Pakistanthere are 12 employees whose income is below the 20000 and 16 employees holding income in between 20000 to 40000 and there are merely 12 employees who are holding the income above 40000.EducationFrequencyPercentageValid PercentageAccumulative Percentagematriculation2152.552.552.5unmarried mans or below1332.532.585.0Masterss or above615.015.0100.0Entire40100.0100.0The information shows In the sample of 40 selling forces ofEngrOCorporation of Pakistanthere are 21 employees holding matriculation grade and 13 are unmarried mans and merely 6 holding the maestro grades.genderFrequency%Valid %Accu mulative %male3382.582.582.5female717.517.5100.0Entire40100.0100.0The information shows In the sample of 40 selling forces ofEngro Corporation of Pakistanthere are 33 employees are male and merely 7 are females. Education degree ( Variable ) N=40 Mean=1.6250 Standard Deviation=0.74032 Income degree ( Variable ) N=40 Mean=2 Standard Deviation=0.78446 . SecondtatisticalHypothesiss The best manner to find whether a statistical hypothesis is true would be to see the whole population. Since that is frequently impractical, research workers use a random sample from the population. There are two types of statistical hypotheses.Null hypothesis. The void hypothesis, denoted by H0, is normally the hypothesis that sample observations result strictly from opportunity.Alternate hypothesis. The alternate hypothesis, denoted by H1or Ha, is the hypothesis that sample observations are influenced by some non-random cause.Study HypothesisThe hypothesis for this research is( H1 ) Income degree is dependent of instruction.( Ho ) Income degree is independent of instructionAppropriate AnalysisIn our research we are seeking to happen out the independency of income degree with regard to the instruction so the trial of independency ( Chi-square ) will be used for the analysis of the above said subject.Chi-Square Trial EducationObserved NExpected NResidualMatriculation2113.37.7unmarried mans or below1313.3-.3Masterss or above613.3-7.3Entire40Chi Square trial give us the undermentioned tabular arraies in it the Observed Frequency of matriculation employees are 21 and Expected Frequencies 13.3 the remainders are 7 and 13 ascertained frequences of unmarried mans and remainders are -3 and in Masterss 1303 are observed and -7.3 remainders mean the informations are non explicating them.Income degreeObserved NExpected NResidualbelow 200001213.3-1.320000 to 400001613.32.7above 400001213.3-1.3Entire40Trial Statisticssinstructionincome degreeChi-Square8.450a.800aDf22Asymp. Sig..015.670a. 0 cells ( .0 % ) have expected frequences less than 5. The lower limit expected cell frequence is 13.3.The Chi Square expression is X2 = ( O – Tocopherol ) 2/E where O is the Ascertained Frequency. Tocopherol is the Expected Frequency in the corresponding class is  ­sum of df is the â€Å" grade of freedom † ( n-1 ) X2 is Chi Square. As the value of chi-square for instruction is greater than 0.5 so it is concluded that the income degree is dependent of instruction so void hypothesis is rejected for this research†¦ Hydrogenistogram A histogram is a graphical representation of the data..the informations should be quantitative veriables. It is foremost introduced by Karl Pearson. The figure shows the information is usually distributed and histogram is symmetric or normal. In the instance of Education the figure shows the histogram is right skewed and more educated employees holding more income and less educated employees holding low income. Calciferoliscussion andConclusion We get a Equation as Simple Equation: More Education = More Income The findings indicate that instruction factors play a important function in doing income.there is direct relation ship between income and instruction as the income addition instruction besides addition. Besides suggest that giving more to instruction is to cut down the degree of income inequality within a country..As state can construct a strong foundation for economic success by puting in instruction. States can increase the strength of their economic systems and their ability to turn and derive high-wage employers by puting in instruction and bettering figure of knowing employees. Investing in instruction is besides best for province s in the long tally, since workers with higher incomes make portion more through revenue enhancements over the class of their life-times. So in Pakistan there is demand to increase Govt budget for instruction so everyone can acquire instruction.As largely people have low income either by ain ego or parents so they don’t continue their surveies so literacy rate is up and frailty versa income degree low.in our state as instruction disbursals is really high a adult male holding low income cann ot continue the ducation and cant participate in growing of economic system of their state. Calciferolirections for future Research 1.Future research should see some other veriables like accomplishments, experience, competency, diligence, fortune, 2.It should be addressed to increase the apprehension. 3.This survey was merely on corporate sector of Pakistan, but it should be conducted in other sectorsof state. 4.In this stresearch information was primary holding few variables ; if this restriction can be increase in the hereafter so consequences will be moreaccurate. 5. Future research should be done into different Sectors so as to detect the consequence of income on instruction at international degree.

Finance Coursework Example | Topics and Well Written Essays - 1250 words

Finance - Coursework Example The only difference however is that we do our business online. This is an advantage to the business as an online presence gives it an increased global presence at the same time helping it minimize operation costs to zero since there are no fixed costs to be paid out such as rent and other utilities. The main reason why I chose this line of business was due to the fact that after intense market research, I found out that there is always a demand for alcoholic beverage all year round. Alcoholics will always drink alcohol whether they have enough income or not. Although lack of income may mean reduced alcohol intake, it does not mean they will completely not drink. It with this conclusion that I decided to start this business as there was going to be steady cash inflows for the business throughout the year. Also, alcoholic drinks being fast moving consumer goods, there will always be a high demand for the products and extensive distribution networks and it is due to this reason that I c hose to be a cybermediary as there will always be a demand for the goods and to gain access to a large company. b) Analysis of break even. Break-even point is the level of sales at which profit is zero According to Atrill and McLaney (2011) at break-even point; sales are equal to fixed cost plus variable cost. In analyzing the break even, one normally needs the three pieces of information: Fixed costs, variable costs and average price per unit. Fixed costs are those minimum operating costs in a business that do not change no matter how many units one sells. They include rent, utilities, bank charges among others. Since Cape e- distributors is an online platform, it does not have any fixed costs as per now. Variable costs per unit-These are those costs that vary and depend on sales volumes. Average price per unit; Since you're able to choose exactly where to set your prices. Start by looking at your competition, and how they price their products. Break Even Analysis Formula therefore is: BEQ = Fixed costs / (Average price per unit – average cost per unit) Fixed cost =0 Average price per unit in year 1 is 55 Average cost per unit in year 1 is 11 Substituting into the formula = 0/(55-11) Therefore the break even quantity is zero. All the other break-even quantities for the subsequent years will be zero because there are no fixed costs for our firm. This is due to the fact that it is an online firm hence no operating costs are incurred. c) Analysis of business performance using financial ratios Profitability Ratios They use margin analysis to give an indication of whether a firm is generating enough returns on capital employed. For Cape distributors the gross profit margin is 91%, the net profit margin is 91% while the return on capital employed is 103%.With such high profitability ratios, it means that the firm has really minimized on its costs and the sales are increasing steadily.A high profitability ratio means that the firm is really good at cost contr olling Pandey (2008). Liquidity Ratios These are the ratios that show whether a firm is able to meet its short term obligations as and when they occur. I n other words they measure solvency of the firm. For our business, the liquidity ratios calculated are current ratio which is regarded as a test of liquidity for a company. It expresses the 'working capital' relationship of current assets available to meet the company's current obligations. The other liquidity ratio is the creditor

Consistent Application of IAS on European on Companies Essay

Consistent Application of IAS on European on Companies - Essay Example The Europe Union has been aiming to have an efficient capital market (Toporowski, 2000; Davis, 1997; Dermine and Hillion, 1999) for its Member States through an efficient and effective financial information system in a transparent European capital market even prior to the Enron scandal in 2002.   The subsequent US scandals in securities market may have triggered the early adoption of IAS in 2002 to require its application to all listed companies in Europe as of 2005. For EU, the issue of efficient capital market is of course broader than the issue of these international standards. Attainment of EU’s purpose therefore under this field is part of its desire for economic advantages (Carroll, Thomas, 1983; Slavin, 1996; Samuelson and Nordhaus, 1992)   of its   member states in the global economy as it hastens its economic integration (Graetz, et. al, 2006; Halkos and Salamouris, 2003, European Economic Integration, 1994). The Enron scandal cannot be separated from the failur e of the US generally accepted accounting principles (GAAP) on financial reporting (Choi and Fisch, 2003) that became the basis for the European Union (EU) members to be unable to find their trust on said accounting rules and conventions.   Persuading the US to change its GAAP with the IAS due to ineffectiveness of the former in the Enron scandal is part of the process. With European Commission having urged the SEC to adopt IAS in February 2002, an overwhelming adoption of the IAS by European Parliament in March 13, 2002 was evident by a vote of 492 for, 5 against and 29 abstentions. The European Parliament endorsed the Commission’s proposal for all EU listed companies to follow standards issued by the International Accounting Standards Board in their consolidated financial statements not latter than 2005.   Non-listed companies on the other hand were permitted to decide whether to adopt IAS. Member States were also given the option to exempt some companies temporarily fr om IAS requirement under some cases until 2007. The option is only available in the case listed companies in the EU and in on a non-EU exchange and are following another set of internationally accepted standards and in the case of   companies that have only publicly traded debt securities (Deloitte Touche Tohmatsu, 2008e).  

The value of an education Essay Example | Topics and Well Written Essays - 3500 words

The value of an education - Essay Example One of the most well-known facts about society’s advancement is the fact that from an archaeological perspective, we have banded together to increase our chances of survival. At its root, this suggests that we band together to work together and to learn from one another. Learning from a person is what modern education is today. Society can only progress forward due in part to education and without it, it is a wasteful experience. Education progresses people beyond their limits, allowing for improvements that would not be otherwise possible. It becomes more concrete when perceived from the lens outside of what is commonly understood and held. The implications of a good education can become a persuasive argument for socioeconomic development. One can identify trends within any society to see that education is a tool for success when building a middle class and to some extent, solidifying the community. However, education is a complex issue that holds different keys and locks, al l of which cannot be answered through a singular answer. The importance of an education is valued through what it can grant, provided that individuals help to support their educators but are often hindered by aspects like geography, familial dynamics, and income; which should be overcome if one looks to improve society. Economic development can bring about change in its purest and simplest form. At its core, it can be said that an education has a key role in improving the quality of life and well-being. This is an important aspect of society.

Personalized Marketing Essay Example | Topics and Well Written Essays - 1750 words

Personalized Marketing - Essay Example Recent research has confirmed that most firms have several tiers of customers in terms of profitability and that these tiers often have different service expectations and needs. According to Valarie Zeithaml, Roland Rust and Katharine Lemon (2001), it's critical that service firms understand the needs of customers with different profitability tiers and adjust their service levels accordingly. So more and more marketing led organizations are moving towards personalized/customized relationship marketing to know and filfill the actual needs of the customers. This new orientation has its roots in American (Berry, 1982) and Nordic (Gummensson, 1987) concepts. Supporters of this new form of marketing argue that in order to survive in the markets which has become more competitive and more turbulent, organizations must move away from managing transactions and instead focus on building long lasting customer relationships ( Webster,1992). Research by Kevin Gwinner, Dwayne D. Gremler and Mary Jo Bitner (1998) suggests that relationships create value for individual customers through such factors as inspiring greater confidence, offering social benefits and providing special treatment. Piyush Kumar (1999) emphasizes that relationships strengthen in a business to business are dependent largely on the quality of the interactions between individuals at each of the partnering firms. As r elationships strengthen over a period of time, he observes the service provider's personnel often assume the role of outsourced departments and make critical decisions on behalf of their clients. In the process of developing relationship with customers, personalization has been preceded by mass customization. Mass customization emphasized on satisfying a specific segment of the customers from a production perspective (Pine II et al., 1995) whereas personalization specifically depends on satisfying the needs of an individual. So reaching out to an individual customer, knowing the needs of the customer and then providing product or services required is all about personalizing the marketing. In the hyper competitive situation and advent to interest and database about individual customer has equipped companies to customize their product or services according to individual customer. Prior to advent of electronic/internet communication, personalization was available only to selected few for selected product or services at premium prices (Mattilla, 1999). Personalization of marketing has taken place due to emergence of internet technology and providing opportunities to the organization to have one to one relationship with the customer. Riecken (2000) states, personalization is about building meaningful one to one relationship; by understanding the needs of each individual and helping satisfy a goal that efficiently and knowledgeably addresses each individual need in the given context. Personalization of product or services increases the differentiation and helps in positioning of the product or services. Customizing the product or services to the needs of single customer has been facilitated by the modern information technologies. More and more information about customers and their needs of services and products is the basic requirement of personalization. Differe nt methods of data gathering about customers i.e. customers profile give an insight of new

British Law Essay Example | Topics and Well Written Essays - 2250 words

British Law - Essay Example This separate rule of law has made it possible for certain legal measures to be created in a balanced response to the needs and the demands of those individuals that are involved in certain considered situations. Besides that, the empowerment of the law is further aided through the effective separation of powers that the royalties and their subjects are under. Even though the entire European region answers to the central power of a royalty, the queen, they are still considered to be under very democratic governance in terms of realizing the society's freedom to do what they perceive to be rightfully lawful under the legal systems of the country. Why is this so Although the central command of the government comes from the queen, her subjects are the ones directly involved in the work3. There is even this thought that says "the queen reigns but the queen does not rule"; a particular line that dispenses the thought that the UK system of law does not rely only on one monarch's decision but that of her advisers who feed her with the ideas that conform to her beliefs, making possible changes in the society in case some adjustments need to be made. Democratic accountability is a huge consideration for the creators of the law. The people are free and ought to have their own rights even when dealing with the most serious issues in the society4. In every law, it is then recognized that the rights of the people are rightly realized and given proper attention to. Hence, from creating the law towards implementing it, it could be noticed how the UK government intends to give each individual the rightful cause of their being through providing them the respect and recognition of rights that they deserve to have. 2. Making reference to relevant case law, explain and critically examine the different approaches adopted by the courts in deciding whether a particular decision is unlawful on the ground of bias. The British court receives the greatest if not the highest recognition in the UK society. Standing as the judge of all, and the law implementation agent in the society, the British court is noted for its unbiased view of the people, both those who are in power and those who are not. The principle of the rule of law which suggests that "no one is above the law, even those who are in power" depicts a great fact that is recognized by the British court every time it handles cases that involves different parties having disagreements between each other5. This principle subjects everyone accountable to the law without any exceptions given. However, as it could be realized, humans make mistakes and the British court is ruled by human individuals and are thus expected to make mistakes every now and then but of course not all the time. No matter, the British court recognizes mistakes and definitely puts an end to it. The legal guidelines on investigating particular cases that involve ground bias provides a clearer explanation as to how agents of the law who becomes biased during a

Case study Example | Topics and Well Written Essays - 250 words - 96

Case Study Example The need to assume a leadership role in corporate social responsibility also supports necessity of the wind turbine that has a great potential to reduce water and other environmental pollutions. The application is likely to reduce ocean pollution, ocean acidification from exhaust gases, and ocean warming, effects that can extend to land environments. The move will also support the company’s values of ethics, value for change, and optimism and perspective (Silverman, n.d.). Shared value creation ensures utilities for social benefits, and not just an organization’s profitability (Schmitt, 2014). Initiatives for better inland waste management, towards marine environment conservation are one of the forms of shared value creation that HAL might implement. In awareness forums and development of plants for proper waste disposal, HAL will prevent marine pollution from inland waste and at the same time develop rapport with the public. A positive corporate image will benefit HAL’s competitiveness. Establishing a research and development center for better marine conservation and towards better facilities for marine travel utilities is another form of shared value creation that HAL could implement. Results are likely to reduce such pollutants as grey and black water and improve customers’ utility. Of greatest significance is however effects of marine conservation to public utility (Silverman, n.d.). Silverman, M. (n.d.). Protecting our oceans: Sustainability at Holland America Lines. Oikos. Retrieved from:

Leadership "Persuade five or more people to do some note-worthy Essay

Leadership "Persuade five or more people to do some note-worthy activity together for at least two hours that they would not otherwise do without your intervention" - Essay Example Moreover, different external and internal factors call these challenges (Recognizing the Challenges of Leadership, n.d.). The external challenges can be one’s inability to take advantage of the opportunities and inability to resolve conflict situations connected with the lack of financing or the presence of interpersonal problems. The internal challenges can be lack of confidence, impatience or intolerance. Depending on the leadership style, according to Wall Street Journal (n.d.), those democratic, pacesetting, visionary or commanding styles influence leaders in their reaction on such challenges and decisions-making in a completely different manner. Recently I got acquainted with the volunteers at the shelter for homeless people and they told me how great it would be if more people took cared of homeless and could contribute to the collecting of certain things for poor people or those disabled that have no possibility to leave their homes. For that reason, I have decided to organize an informal meeting of my friends, former colleagues, in order to help in the shelter and in particular to gather clothes and food for homeless and poor people. Due to the inability to meet everyone personally and the busy way of life of each of the team member, I have arranged meeting with my friends for further discussion of the problem. We agreed to meet at the same cafà © and I have prepared a short informative speech so everyone would know about the purpose of our further help. Sofia, John, Rachel and Lisa were my former colleagues with the experience of administrative work and dealing with many people, while Ana used to organize different corporate events. Therefore, their professional experience would help volunteering at shelter. However, the idea of helping to collect clothes and then deliver them to the shelter was not welcomed much. My idea of helping people inside shelter was also challenged. Sofia and Rachel were

Article and lyrics comparison Essay Example for Free

Article and lyrics comparison Essay The songs â€Å"Have you Forgotten† by Darryl Worley, and â€Å"Where have all the flowers gone? † by Pete Seeger are two songs that both deliver strong messages regarding two different wars. â€Å"Have you Forgotten? † which is a song composed to convey emotions regarding the war in Iraq delivers messages that are meant to sway people to hate war. It describes the war and all its horrors by questioning if people have in fact forgotten what it is like to be in a war and so have become indifferent of the one that was currently being fought. â€Å"Where have all the flowers gone? † on the other hand, which is written during the period of the Vietnam war is another song written as a series of progressive questions terminating in the sad reality that the war in Vietnam had caused so many deaths. While the song does not in any way specify whose death had been more deserved or valued in the Vietnam War, it proceeds to question these deaths in an attempt to question the war itself. In an article, John Pareles describes that, â€Å"Songs that touched on the war in 2006 were suffused with the mournful and resentful knowledge† (2010) This is quite obvious in the song by Worley, for instance, in the lines from the chorus, â€Å"Have you forgotten, how it felt that day? / To see your homeland under fire/†¦And you say we shouldnt worry bout Bin Laden†¦Ã¢â‚¬  (7-8, 12) the song seems to be didactic and even moralizing in its approach and its perception of how people perceived the war. These lines, in relation to what Pareles describes, are in fact resentful in that they express how people are indifferent about this particular war. In addition, Pareles (2010) also states that, â€Å"Immediate responses to 9/11 and to the invasion of Iraq arrived along familiar lines. There was anger and saber-rattling at first†. This expresses how the emotions had died down when the war had began to drone on. There was only the desired response initially which eventually died down. Hence, Morley’s song very accurately describes this indifference by questioning America about its stand on the war and how America can seemingly be uncaring of what was going on. So, in the last few lines of the song, one finds, â€Å"Have you forgotten / About our Pentagon / All the loved ones that we lost / And those left to carry on† (27-30) as the song shifts from being fierily questioning of the objectives for and reactions to the war to being deeply emotional, appealing to the better judgment of the listeners as if pleading that everybody be more reactive because the war was not just any kind of war, but it was something that took away so much from those who were in it. Songs during the Vietnam War were equally as questioning, perhaps because that particular also had grey areas when it came to the goals and objectives of the battle. In 1963 musicians began directly questioning the Vietnam War. † (Anderson) and so, in the song â€Å"Where have all the flowers gone? † by Seeger, this questioning tone is also employed. However, noticeably in the song, as it progresses, the repeated lines go from questioning where the flowers are to where the graves are; (1-40) looking at each of the stanzas, however, the more interesting recurring line is â€Å"When will they ever learn? † (7-8, 15-16, 23-24, 31-32, 39-40) which serves the same function as the ‘Have you forgotten’ theme of the earlier song. So, in effect, this song by Seeger not only questions but also admonishes the listeners, perhaps because, â€Å"Their music stated traditional folk themes, ones which were being voiced in the current civil rights crusade: justice, peace, and brotherly love. † (Anderson) Looking at these two songs side by side one can easily conclude that while both were about different wars at different periods the main message delivered is don’t people ever get tired of wars albeit the painful and agonizing effects of these exercises? So, if war songs are to be evaluated according to these two songs which are separated by decades in between, the sentiment of people when it comes to war has not changed significantly which is probably due largely to the reality that nobody wants wars regardless of the reasons. So, while both of the songs question the audience or the listeners, the questions in both songs are meant to indirectly remind the listener of the horrors of war and to admonish and enjoin the listener to remain faithful to the precepts of peace, justice and love while actively protesting whatever justifications the government makes for conducting these bloody exercises. Works Cited Anderson, Terry. American Popular Music and the War in Vietnam. (): 51-65. Print. Pareles, John. Pop Music and the War: The Sound of Resignation. New York Times. N. p. , 2 Jan. 2007. Web. 15 July 2010. http://www. nytimes. com/2007/01/02/arts/music/02songs. html . Seeger, Pete. Where Have all the Flowers Gone. arlo. net. N. p. , 2003. Web. 15 July 2010. http://www. arlo. net/resources/lyrics/flowers-gone. shtml. Worley, Darryl. Have you Forgotten?. Lyrics007. N. p. , 2007. Web. 15 July 2010. http://www. lyrics007. com/Darryl%20Worley%20Lyrics/Have%20You%20Forgotten%20Lyrics. html.

Virtual project management

Virtual project management Section 1: Literature Survey Introduction: The virtual project management concept is gaining its importance due to globalization of industries. The report mainly focuses on the evolution of project management and changes in approach of project management methodologies. It also highlights the aspects of traditional project management and modern project management. The difference between classical project management approach, contemporary project management approach and virtual project management approach is also discussed with their advantages and disadvantages in this report. The drawbacks of virtual project management are discussed and their existing solutions are also highlighted along with the features of virtual teams. Project Management Institute has defined Project Management is application of knowledge, skills, tools and techniques applied to project activities in order to achieve the goal.(PMI,2004) Evolution of Project Management: Project Management has been practiced for hundreds of years dating back to the Egyptian epoch. However in the min 1950s many organizations has started applying formal project management tools and techniques to various projects. Author Azzopadri has divided development of project management in four periods. [1] Prior to 1958: this period is known as ‘craft system to human relation due to evolution of technologies. During this time evolution of technologies such as automobile and telecommunication helped for minimizing project timings, because automobile contributed in resources allocation and mobility. Telecommunication system increased speed of communication. In addition to this Henry Gantt invented Gantt chart which helped for effective planning of project. [2]1959 to 1979: this period is known as ‘Application of Management Services because of significant development of technologies. The core project management tools like Critical Path Method (CPM) and Program Evaluation Review Technique (PERT) were introduced. However this period was characterized by rapid development of computer technology. In 1970 effective project management tool Material Requirement Planning (MRP) was introduced.  Ã‚   [3]1980 to 1994 :this period is characterized by revolutionary development in the information management sector with introduction of Personal Computer (PC) and associated computer communication network facilities. This development resulted in managing and controlling complex project schedules. Furthermore project management techniques were more accessible due to low cost project management software for PC. [4]1995 to present: this period is dominated by development related to internet, which changed business processes dramatically in mid-1990. The internet has provided fast interactive and customized new medium that resulted in making firms more productive, more efficient and more client oriented. Furthermore the development in softwares and internet facilities lead to various approaches of project management. (Azzopadri, 2006) Project Management Body of Knowledge (PMBOK) defines the traditional project management as set of tools and techniques that can be used together to an activity that seeks an end product, outcome, or a service. (PMBOK, 2004). As per Frame (2002) the reasons for the fall of traditional Project Management are success and failure is assessed against achieving scheduled, specifications and budget but not assessed against customer satisfaction. Another problem in traditional Project Management is it single minded approach for tools like scheduling, costing and resource allocation. This is fixed set of tools which involves CPM (Critical Path Method), PERT (Program Evaluation Review Technique), Gantt charts, S-shape budget curves. (Frame, 2002) Modern Project management: Modern project management is well understood discipline that can give predictable and repeatable results. The methods used in modern project management are highly analytical, automated tools and developed project management softwares to support large projects.(Howes, 2001). In traditional project management, planning and control methods are very specific and controlled, once a phase is over the next stage will start and it will continue in decided sequence. However it is difficult to carry out perfect sequence in perfect time because of some factors as the world is not perfect. However in modern project management much more flexibility is built in system. It focuses on features of the project instead of focusing on every specific task. The sequence of the project can be adjusted to meet with environmental, business, material and other changes. This results in beneficial project management.(Rose, 2011) The rise of internet and development of collaborating softwares have introduced new aspect to Project Management. The success of project is recognised on the profit-loss status. Therefore, there is heightened pressure to assure that projects are successful in terms of deliverable results, cost, and delivery date. Global projects with virtual teams have developed a way by which the cost and duration of projects can be cut down while maintaining a sound control on quality and scope of projects. (Rad et al, 2003). The globalization of business has resulted in greater interest in more comprehensive suit of the best practices of project management. Virtual Project Management: Virtual Project Management is the system by which virtual teams work together for determinate period of time for specific goal.(Rolfs, 2006). Virtual teams are the merger of the Information Technology (IT) and organisational behaviour domains (Bissoonauth, 2002) and it is defined by Gignag (2005) as â€Å"a group of workers who are geographically dispersed but not distributed across expansive geographic locations. They are working together towards a common goal and using electronic communication as their primary medium†. The main difference of virtual teams from traditional teams is â€Å"separation by time and distance† (Cascio et al, 2003) Table 1 summarises huge changes in the area of project management. Actually it focuses on two particular periods classical and contemporary, considering that these boundaries differ from industry to industry. Classical Project Management Contemporary Project Management Virtual Project Management Aim/ Focus To Completing project on time in given budget To deliver good quality under budget and in time To achieve the best quality in least possible time and cost How to Manage Managing by walking Managing by tele-communication Managing by clarity of communication. Understanding on methodologies, goals and processes. Practice What was the last best in our company What is currently best in the world Best in the world but improvised to suit local environment. Standards Local National Global standards IS for supporting PM Outsourced Integrated in companies Information System /Information Technology (IS/IT) Part of companys Information System /Information Technology with dependency on outsourcing service providers Project Managers Selected ad-hoc from senior managers who are experienced in that area. Project Management professional requirements with special training Certified Project Management professional managers and multicultural exposure Manager Manages single Project Manages multiple projects with IS/IT support Manages multiple, multi-vendor, cross pole projects affecting multiple cultures Team Member Assigned to one project only Assigned to more than one project with support of IS/IT Afford to utilize specialized skill set available at any corner of the world with lowest cost possible Critical Resources Money, time, people Money, time, people, knowledge, IT support Money, time, people, knowledge, IT support and Global Outsource service providers Who is applying PM all sort of endeavours with engineering background In all business organizations and by individual entrepreneurs   Spreading in organizations and individuals encompassing areas that were unheard before like teaching, vendor negotiation, media, healthcare, office secretarial work. (Desai et al, 2006) The rise of Virtual project management: Due to changes and fluctuations of current global economy the pressure on enterprises has been increased. The management and organizations of various design, construction, production services and other projects has become more decentralized due to development of information technology, e-commerce and globalization. A virtual team involves project manager and certain virtual teams depending on company. In recent years virtual project teams has become first choice to many enterprises because it helps in reducing time and cost, sharing knowledge, making full use of capabilities of the staff, improving working environment, increasing the enthusiasm of the staff, carrying out cross cultural activities and enhancing the quality of product. The given figure shows major attributes of virtual project management. Virtual project management mainly involves controlling and leading of virtual teams. Virtual Teams are defined here as group of workers of geographically and organizationally dispersed knowledge works brought together across time and space through information and communication technologies in order to specific customer needs or to complete unique projects.(Krill et al, 1997). However, Peterson and Storh has defines virtual teams as a â€Å"group of individuals who work across time space and organizational boundaries with links strengthened by webs of communication technology. They have complementary skills and are committed to a common purpose, have independent performance goals, and share an approach to work for which they hold themselves mutually accountable†. Along with definition Peterson and Storh has introduced seven types of different virtual teams. The basic types of virtual teams are as follows Networked teams: group of individuals who act as a team to achieve common goal, membership is fluid and diffuse. Parallel teams: work in short term to develop solutions for improvement in process; membership is distinct Project teams: conduct projects for clients for a specific period of time, team has decision taking authority Production teams: perform regular work, clearly defined membership Service teams: support consumers in typical service role around the clock Management teams: work collaboratively on a daily basis within functional division Action teams: gives quick response and activated in emergency The significant advantage of virtual team is that the resources of virtual project organization can be arrange quickly and cost effectively (Rad et al, 2002). In addition to this Rad has stated that virtual projects allow organization to form joint ventures for short and specific time of period for significant purpose. Juhre (2001) notes, at a time skilled technical resources are required then virtual project becomes a success factor organization. Comparison of Virtual teams and traditional teams: The major difference in virtual teams and traditional teams is the diversity and different locations of team members as well as organizations. Features of virtual teams: Many sectors like construction industries, engineering (manufacturing, chemical and production), software development industries, customer services and call centre industries are using virtual project management for efficient outcome. The International Technology Association (2004) defines engineering as involving â€Å"the knowledge of the mathematical and natural sciences gained by study, experience, and practices that are applied with judgement and creativity to develop ways to utilize the materials and forces of nature for the befit of human being†.(Joseph, 2005) Each step requires the skills and expertise of an engineer in different ways such to operate, teach the operation, or to sell the product.(Simpson, 2004) Offshore outsourcing is the generic term when companies are using virtual teams for the completion of project.(Lieberman, 2004) In software development industry virtual project management is widely used. Requirements of clients in software development industry changes time to time. And to find appropriate talent to give satisfied service to customer virtual project management is very essential in software development industry. Now a days many firms and companies are using Virtual project management for better performance. With the advent of latest internet technologies all the communication between the client, project manager and virtual teams is carried out through VOIP, email, Instant messages, online screen sharing etc. this enables the client to access the data regardless of the position of the virtual teams. The required data/source code is stored in repositories which are managed by the project manager. Hence project manager acts as an interface between the virtual teams and the client. Issues in Virtual Project management: The issues in Virtual project management are depending on areas of virtual world and factors which can impact on project management. The main areas of virtual world are Physical variable Culture Organization Depending on these three areas Virtual project management model (VPModel) has been developed. 1. Physical variables: This is the area of space and time. The issues raised in this area because of distance between project members. Geographical distance: By using software tools for (EPM) project team member communicate with project manager. But EMP decreases performance in poorly skilled teams which is expensive (Kanawattanachai et al, 2002). And creates stress rises ethical questions (Keyzermann, 2003) Different Time zones: Due to different time zones work can be done on continuous basis (Lau, 2004). In case where real meeting are essential, time and cost for travelling are expensive and due to jet lag efficiency of work can be reduced (Kayworth et al, 2002) and such disadvantages can decrease commitment towards project (Godar et al, 2004) Conflicts:Conflicts cab be raised by cultural difference, diversity and misunderstanding. Cooperation: It includes every issue that allows people to work together (Rehinhard et al, 1994) Cooperation includes virtual meetings, sharing of information etc. however cooperation is depend on communication style. 2. Culture: In the virtual project management all project members used to have different background culture and these people brought together to achieve common goal, so many fundamental issues arises in project management. Due to different culture virtual team differs in language, working methodology, which leads to lack of trust and misunderstanding between project members.(Kyzerman, 2003) One more disadvantage in working cross culture is use of technology. When modular and simple technology is used for minimizing the gap, then the possibility of error in executing project increases. (Dafermos, 2001) 3. Organization Organisational scattering refers to â€Å"the degree to which a virtual team consists of individual who work across organizational boundaries†(Shin, 2005). In organizational area the main issues are Electronic security, hackers are valid threat for virtual projects. And other major issue in this area is sharing of information in various organizations which are working on same project. 4. Other than above mentioned issues other issues are leadership quality and effective communication. This issue can be resolved by using multicultural exposed personnel as project manager who has optimum qualification. Summary: