Ethics Essay - 1071 Words

Name: Dinesh Jagwani Batch: BAFD2 1321A Module: Ethics in Business Studies Course: B.S.C. (Hons) in Accounting and Finance Lecturer: Mr. Daniel Chew UOB No: 12035285 Topic: Producing toys- Child’s Play? Producing Toy’s – Child’s Play? Deontological ethics are concerned with what people do and not with the consequences of their actions. It teaches some actions might be correct or wrong because of their nature, and it is the duty of the people to act accordingly, regardless of the consequences that might occur, for the good or bad. It basically means one has to adhere to the universal rules and guidelines irrespective of the consequences and act in accordance to them. Getting to the means is not important by the way or choice of†¦show more content†¦Maxim 1: The first maxim states that â€Å"Act only according to that maxim whereby you can at the same time will that it should become a universal law without contradiction†. The decision contradicts the universal law as the product manager does not want to see his nieces in the same situation as the kids making the toys. He wonders about his nieces and whether he would like to see them grow up as the kids making the toys. He wants his nieces to have a good life with education, shelter and all basic necessities. According to maxim 1, even the children making the toys should have the same privileges. As a result this decision by the product manager fails maxim 1 and although it makes financial sense, ethically it will not be right and according to the universal law the decision does not support deontology theory as the product manager is not at ease with himself in the same situation. As a result according to maxim 1 it will be a non-ethical decision. Maxim 2: The second maxim states that â€Å"Act in such a way that you treat humanity, whether in your own person or in the person of any other, never merely as a means to an end but always at the same time as an end†. This means one should treat another person as one would like to be in the treated himself. The product manager would definitely not want to be in the same situation as the family making the toys, where young childrenShow MoreRelatedEthics And Ethics : Ethics922 Words   |  4 Pagesand friend group to be altered. One change I was not anticipating making was my approach to ethics. Over the course of the past fifteen weeks, my knowledge of ethics as well as my approach to ethics has changed. I have become more knowledgeable about the different approaches to ethics and have gained insight as to where I stand in my approach to ethics. One thing that has changed in my approach to ethics since the beginning of the semester is I am now adamant that it is impossible to arrive at aRead MoreEthics : Ethics And Ethics Essay1578 Words   |  7 Pages†¢ Define ethics. Ethics is defined as the moral principles and standards that guide the behavior of an individual or group, while business ethics refers to said behavior in the work environment. Great leaders demonstrate and practice this both personally and professionally. With today’s constant media coverage of unethical decisions and their violators, it can be easy for many to people to assume that ethics codes are â€Å"just for show†. A prime example of the unethical culture that exists in businessRead MoreEthics : Ethics And Ethics851 Words   |  4 PagesJohn Berger who stated, â€Å"Without ethics, man has no future. This is to say, mankind without them cannot be itself. Ethics determine choices and actions and suggest difficult priorities† (Berger). His meaning behind that quote is simple. In this world is there a right and a wrong way of doing something? In this world, ethics determines our actions and the consequences that come about those actions, determining right and wrong. The real question is however, are Ethics black and white? Is what is â€Å"right†Read MoreEthics : Ethics And Ethics955 Words   |  4 PagesIntroduction: Ethics is a key moral philosophy that helps us determine what is right and wrong. This paper will talk about my views on ethics. I will share personal examples of ethical situations that I have been in. I will also share where my ethical views originated from and why ethics is important to me. Next, I will discuss how ethics will affect my career and why it will be important in it. Lastly, I will talk about the importance of ethics in the global world. Personal: In my opinion ethics is a moralRead MoreEthics And The Ethics Of Ethics929 Words   |  4 Pages Ethics Nurse’s Before all parties involved can begin a working relationship, each individual should discuss and obtain a written description of the duties expected and the code of ethics that should be respected and followed; by beginning with a clear understanding of ethical values. Ethics: the study of right and wrong and how to tell the difference between them. Since ethics also means people s beliefs about right and wrong behavior, ethics can be defined as the study of ethics. EthicsRead MoreEthics : Ethics And Ethics1569 Words   |  7 Pages Ethics In Nursing Rayda M. Garcia Fairleigh Dickinson Universityâ€Æ' Ethics In Nursing The study of ethics, or applied ethics, is necessary for healthcare professionals who often face dilemmas that are not experienced by the general population. The fast-paced growth of medical technology has made the study of ethics even more relevant. The study of bioethics, or biomedical ethics, refers to moral dilemmas due to advances in medicine and medical research. Since medical law and ethics are oftenRead MoreEthics And Ethics Of Ethics775 Words   |  4 Pagesmillion to settle a shareholder lawsuit. We can refer from the two previous examples that ethics education is crucial. The main reason for ethics education is that ethics courses and training would help students, who are going to become future managers and business decision makers, to resolve such ethical dilemmas correctly. As we know that most dilemmas often have multiple decision criteria. Business ethics classes would help students to realize which decision criteria lead to a preference for aRead MoreEthics And Ethics Of Ethics Essay1491 Words   |  6 Pagesemployees that the work place ethics code forbids using work-place resources for personal financial profit. To make ethically right decision in this ethical dilemma, I will focus on the philosophers’ standpoint and reasoning of ethics of care, ethics of justice, utilitarian ethics and universal principle to analyze the situation. In this tough situation, my conclusion is that I will not report this action to the higher authority although she is violating wor k place ethics code. I will provide my reasoningRead MoreEthics : Ethics And Ethics1485 Words   |  6 Pages Ethics is a concept derived from an individual’s religion, philosophies or culture, forming a collection of moral principles carrying out the manner in which a person leads their life. In modern society philosophers divide ethical theories into three separate areas, meta-ethics, normative ethics and applied ethics. Meta-ethics refer to the origins and meanings of ethical principles, dealing with the nature of moral judgement. Normative ethics refers to what is right and wrong and concerned withRead MoreEthics And Ethics Of Ethics987 Words   |  4 PagesEthics affect every facet of life, especially in a professional community. When a decision is to be made within a community, the ethical decision is typically that which benefits the most people or harms the least people. There are some scenarios however, when the correct decision based on a system of ethics that values doing the right thing is not the decision that leaves behind the least negative impact on the organization. An organization must decide if it will follow the system of ethics that

Nutrition And Its Effects On Attention Deficit /...

The researcher decided to explore nutrition and its effects on attention-deficit/hyperactivity disorder. The participant is a 12-year-old who was diagnosed with ADD/ADHD last year and has sense been put on a low dosage of medication. The participant’s parents struggled with this decision as they were confident there had to be another way; however, by the urging of her educators they felt as though they were doing her a disservice by testing all of their options and was looking to get her back on track as soon as possible. In stating that, the researcher has read many articles that linked ADD/ADHD with nutrition and the importance of holistic healing. The researcher will conduct the case study in the participant’s home over a two-week†¦show more content†¦How does a clean eating diet impact students with attention-deficit/hyperactivity disorder? The participant is a 12-year-old female entering into the 7th grade. She has been diagnosed with attention-deficit/hyperactivity disorder and as a result of the diagnosis she takes a low dosage of medication to help with the side effects. Research will be conducted at the participant’s home where she will be observed and interviewed during various times throughout the day: while completing chores, during independent reading time, and while interacting with her siblings. The participant lives in a Southeastern Michigan suburb with a population of roughly 31,000 residents, 97 percent of those residents being Caucasian, and with an average household income of approximately 64,000 dollars. The participant lives with both parents and two younger siblings. The participant previously attended a private school in Toledo, Ohio. She was very involved in sports and played for the soccer and volleyball teams. Her friends came from upper-class homes and carried straight A s. The aforement ioned school did not offer services for students with excel or struggle in the classroom. The participant struggled with her academics and was not able to receive additional services, such as, tutoring help. The parents of the participant felt that it was in the best interest of the student to enroll her into their neighborhood school system. She has already joined the

The Business of Music free essay sample

There has been a radical change In the business of music. Whether the employee who has been an industry legend can maintain the position in the company has been a problem. The term industry legend refers to the person who Is very famous and admired by a lot of people in the area of industry. (Wisped 2013) The feature of the industry legend is Irreplaceable In this domain, which means that person who is the legend can create more value for the company and this type of people can lead to company developed dramatically.The issue is whether the industry legend should e fired once he becomes old. This dilemma Is the focus of Guatemalan case study, When the Longtime Star Fades (2011). This case study is about Bob Entice, an old employee who has obtained a big success before in a music company which is named Powerful Entertainment. He is a successful salesman and a legend in the recording industry. We will write a custom essay sample on The Business of Music or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However, as a result of the development of technology, he seems to be backward In the new situation.He still believes that the future of the record industry is bright, although the number of records sale is falling. Noel Klein, the CEO of Powerful Entertainment believes that Bob cannot keep the step with the time, and he gets much salary which means that the salary he obtains exceed the value that he creates for company. Then he decides to fire Bob. Rite Leigh Is the Vice President of Powerful Entertainment and the boss of Bob Entice. She cannot decide whether to dismiss ebb or give him a chance to adapt to new technology.Bob was a legend and a public face for Powerful Entertainment. All the staff at the company like him, he makes them feel good about their work. The manager now needs to decide whether Bob Entice should stay or go. Two experts give some suggestions about this dilemma. Peter Chapel Is a Professor of Management and Bill Novella is the CEO of ARP, they are both the authors of Managing the Older Worker, Tamari J. Erickson Is work for the Genera, who is the author of Retire Retirement. These two experts all suggest that the company should keep Bobs position.Capital and Novella state that if Bob has enough passion that can encourage other staff around him, there Is no doubt that he can do something for Powerful Entertainment. However, Erickson argues that Rite should think more about consolidating the album business around Bob instead of fire him. Chapel and Novella believe if managers of company want to fire Bob, they need to inform him and give reasons before dismissal. They also suggest that a good method Is the company giving him a new role In the company.If Bob Is arranged by a different position, he can do something other for the company depends on his social skills. It means the company does not pay so much money for him. In contrast, Erickson argues that Rite needs to think about how to improve the profit of the album-based business, rather than paying attention to firing. She can find some methods Improve the sales taking the advantage of Bobs deep knowledge and legislations. Nat the problem is and discussing it in order to solve it.Capable and Novella argue that Rite can also give Bob a new Job if he still having some special ability, such as energize everyone around him and social skills. In my view, although Bob is old and his performance began to decline, the company cannot fire an employee without any notice, especially a legend of the company. Moreover, Bob still has some ability to help company obtain more profit by other methods. In conclusion, the manager of Powerful Entertainment need to give Bob a chance to adapt to new environment.

Online Learning Environment Scavenger Hunt free essay sample

When you first enter the classroom you see the homepage. On the home page there is the calendar for the week, assignments for the week in the middle and the blue navigation bar. Other items on the screen is my name, course title, and a search bar. The tabs are the little house, calendar, tasks, resources, connect, reports, and announcements. 2. From the course home page in Loudly, click on the Resources tab and then click on Classroom Policies. What do you need to do to make sure you are properly participating In the online classroom?For graduate level students we need to make sure we are participating with one classmate on three separate days each online week. When participating our communication needs to substantive and help build on our online experience. This means that they have to be more then yes I agree with you. They can be based on personal or professional experiences, can be a follow up question to a classmates post, and so on to list a few examples of what you can do. We will write a custom essay sample on Online Learning Environment: Scavenger Hunt or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 3. Under the Resources Tab in Loudly, click on the Student Success Center; under the Writing Center tab click on the Style Guides and Templates link.Read through the PAP 6th Edition Style Guide and PAP 6th Edition Template (without Abstract) documents. Why do you think academic rating requires such strict formatting? Academic writing requires strict formatting to set the standards for papers and how they should be written. This way faculty and students are aware of how to properly type up a paper and creates an easy to follow set of standard guidelines. 4. Under the Resources Tab in Loudly, click on the Student Success Center. Under which tab in the Student Success Center can you find official Microsoft Tutorials for their software products?On the far right under resources and then you scroll to the bottom of the page it says official Microsoft tutorials and you click on the link. 5. Under the Resources Tab in Loudly, inside the Student Success Center, click on the Tools for Success tab at the top. What video might be most helpful to you under the Success Webzines section? I think for me it would be the study skills since have been out of school for a little while. 6. From the course home page in Loudly, find where you can see your current grade in the course.You click on reports and then you click on graduated. Click on which week you want to see the grade for. 6. Click on the Resources Tab in the classroom. Click on Syllabus. What are all the different sections found in the Syllabus? Look at the Overall and Current sections of the syllabus. (Hint: they might be the orange sections on the left of the screen. ) Under the Current view (meaning that week) the sections are objectives, topic material, assignments, discussion questions, and participation.

Analytical Essay Sample on “Snow Falling on Cedars”

Analytical Essay Sample on â€Å"Snow Falling on Cedars† The aim of literature is to entertain and inform. We see this in the novel Snow Falling on Cedars by David Guterson. Guterson uses stylistic language techniques to capture the reader and involve them in the text. By integrating flash backs into the murder mystery genre, the characters are made three dimensional, and the reader becomes involved. The story informs the reader by integrating important themes into the text. Literature aims to entertain. Snow Falling on Cedars is entertaining because it is written in such a way that the reader becomes involved with the characters. Guterson uses metaphors of the surrounding area, to give insight into the characters. For example, the radiator in the courtroom is sluggish and slow to get started, and is in a state of disrepair. This is a metaphor for the townsfolk, and by using it, Guterson has made the reader link the two together. Through using descriptive metaphors in the early stages of the book, when the same character traits are brought up later, they already feel familiar to the reader. The book is well written in the murder mystery genre, which creates suspense. The plot draws and captivates the reader. Guterson integrates flashbacks from different character perspectives, which make the murder mystery more intriguing. These flashbacks hold in them vital clues and insights to the plot and the reader is forced to think. The layers of plot are graduall y built up, giving the book a three dimensional quality. Subtle clues given by the author create a question about Kabuos innocence. This question creates curiosity in the mind of the reader, who is entertained by the suspense and drama, and finally the conclusion. Literature also aims to inform. Through different characters experiences in Snow Falling in Cedars, Guterson subtly informs the reader of several strong themes. The rising snowstorm is a metaphor for the building tension between the two communities on the island, and through this and Ishmael and Hatsues relationship we are shown racial tension. Through Carl and Kabuos lost friendship, Ishmaels missing arm, Whaleys personality, and the racial prejudice shown by the townsfolk, we are shown the impacts of war, both on communities and individuals. These are the prominent themes in the book, although Guterson weaves several others in as well. Through the suggested incompetence of the lawyers and law enforcers, and the run down courtroom, Guterson questions the human ability to pass judgement accuracy. Ishmaels phantom pains in his missing arm are a metaphor for his heart, which still aches for Hatsue, even though she is long gone. This and the comparison between Ishmael and Carl highlight s the theme that we need to learn and move on. These themes are interlaced and layered throughout the text unobtrusively, but in such a way that at the end of the book, the reader subconsciously takes away a new understanding of people and their cultures. Snow Falling on Cedars is a good example of Literature that entertains and informs. The way it is crafted in layers, using a good murder mystery plot with stylistic language makes it entertaining. The subtle integration of theme into this plot gives the reader a better understanding at the end of the story. The reader is captivated and this is what makes it such a good read.

A Citizens Right To be Equal (american History X) essays

A Citizen's Right To be Equal (american History X) essays America is known to many as a free country. It was founded on the belief that all citizens would have the opportunity to thrive. This notion has not always been true. In the early years of our country, racism was a large setback. Slavery ruined the idea of a free country, the idea that was supposed to be the most important of all. Over the years slavery was abolished and racism has been largely eliminated. There is, however, some racism still present in that only holds our country back. These racist people cannot be called citizens because of their actions. The definition of a citizen is A person owing loyalty to and entitled by birth or naturalization to the protection of a state or nation (American Heritage Dictionary). Part of being loyal and protecting the state is to obey the rules and ideals that the state has set. One of those ideals is to work with our peers toward something that would better society, no matter what race or religion they may be. We can see examples of this in the movie American History X. The movie begins with a gang of black guys trying to rob a car from one of the main characters, Derek. Derek, a racist, kills two of the three gang members, one of them very brutally by making him bite the curb and stomping on his head. He is sent to jail for three years for murder, and it would have been life if his brother had testified in the trial. As they explain later in the movie, Dereks racism started off because of his father. He told Derek not to listen to his black teacher saying, read the book, ace the guys test. Just dont swallow everything he feeds you whole just because you see it on the evening news. The father goes on to talk about affirmative black-tion and how the stuff his teacher tells him is nigger bullshit. Dereks racism only got worse when his dad, a fireman, was killed in a black neighborhood on the job in a black neighborhood...

The difference between leadership and management techniques and their Essay

The difference between leadership and management techniques and their influences on the organizational structure - Essay Example This study looks into leadership and management that both are needed to maintain all business processes successfully. The basic difference between management and leadership is that of notions they possess about the strategic tools and effectiveness of the proposed methods. The difference between their perceptions observed by the research includes viewpoints about changes in the organization such as; managers believe change would bring various challenges and threats for the company. However, leaders think that change provides an opportunity to the professionals to avail competitive advantage. At other side, when it comes to handle the change managers attempt to deal with it through strategic plans, but leaders aim to address such issues, through mind. Other differences between their approaches include managers` methodology of utilizing power through balanced activities. Managers, intend to understand and consider all aspects of the threats and try to concentrate on short-term plans. T hey follow their self-made views and examine self-performance to practice substantial and perform job accordingly. On the contrary, thoughts and practices of leaders involve a use of heart and mind logistics. Leaders possess capabilities to sense all possible facilities, which help them plan long-term strategic methods; they do intend to follow their viewpoints. They are flexible enough to alter or create new vision with the demands of the time. They simply do not focus to perform assigned duties in control like the managers` approaches, but they struggle for their dreams along with inspiration and self-motivation. In general, managers are looked as administrators not as leaders. Concept of managers as leaders emphasize on the fact that managers while performing as leaders are expected to promote new approaches. Managers can only perform as effective leaders, when they show interest towards executing proposed strategies of achieving goals. Additionally, they should have some qualiti es to inspire their followers and workers performing under their observations. A manager can inspire people like leaders by utilizing technical strategic tools (Adeniyi 2007). For example, if a manager intends to lead and manage things at the same time quietly, he/she can perform far much better than a cheerful leader. Most importantly bridging the gap between the basic difference in managers and leaders` functions can help managers to perform as efficient leaders (Adeniyi 2007). For example, leaders bring up new ideas and managers regulate the existing ideas, thus at this point it is vital that managers should understand the importance of taking up challenges, through changed strategies and modernized approaches. For the managers to perform as effective leaders it is vital to understand the demands of the position and fundamental requirements for being a good leaders otherwise, the whole organization has to suffer (Adeniyi 2007). F

Sao Paulos Climate Case Study Example | Topics and Well Written Essays - 750 words

Sao Paulos Climate - Case Study Example This climate has remained relatively stable for decades; the last reported snow storm occurred in 1918 (Sau Paoulo Climate and Weather). Sao Paulo is the richest city in Brazil and the southern hemisphere, and it is also the most populated. It holds over 11,000,000 residents and is over 1500 square kilometers. The city is growing at such a fast and expansive rate that much of its infrastructure has had difficulty evolving and meeting the needs of the growth. Energy production has therefore been very, very chaotic. The state has been able to produce more electicity than the plants in both Argentina and Chile, but because of the constant increase in population, power outages are becoming a presence and a threat. An increase in the electrical supply of the city is needed. Furthermore, the existence of geothermal plants, as well as imports of natural gas and cogeneration are becoming more vital to the city's survival (Henkin). With these problems in mind, it is important to consider the question: To what extent do "ecological" materials satisfy the thermal necessities of a building in a city of Tropical climate as So Paulo With the current energy crisis abounding, it appears that necessities provided by energy, including air conditioning in climate control, are being threatened. However, considering the fact that this is a city in a tropical climate, one item that the city may wish to consider and invest in is that of solar power. Solar power could help to answer the energy crisis, and thus also assist with the thermal necessities in a city in a tropical climate. While the initial investment may be costly, the strategy would certainly pay for itself in the end, benefit the city overall, and help to solve the problems of energy existing today. Urban heat in the island areas itself has been a reported problem that could be put to use and gain significant energy features. For instance, many islanders report that the climate can be quite hot in February. Since this is an island affected by its location under the equator, heat can be extreme at the peak seasons. This means that buildings will be using more climate control features, such as air conditioning, to protect customers and themselves from inevitable health concerns, like heat stroke. Further energy shortages are always expected during these months because of this inevitable behavior. However, if the heat and sunlight can be harnessed and put into good effect, it could actually solve the energy efficiency problem, and thus the island could use one of its own energy resources to help with the climate during the hotter months. The sunlight exposure present at Sao Paulo also brings a few other items to light that one must need to consider. This concept is that of electromagnetic radiation, including UVA, UVG, and UVC. Most individuals know that some sun exposure, if it is slight, can be beneficial to one's health. In fact, a lack of sunlight can make individuals feel depressed. However, too much sun is also dangerous, and can cause detrimental effects to one's health, including sunburns, heatstroke, and skin cancer. These factors need to be considered for those living in the city. Works Cited Henkin, S. "Sao Paulo: Urbanization Run Amok." World and I, Vol. 14, August 1999. Sau Paulo

Mitochondrial DNA Essay Example | Topics and Well Written Essays - 750 words

Mitochondrial DNA - Essay Example This is accomplished in humans by the sequencing one or more of the hypervariable control regions (HVR1 or HVR2) of the mitochondrial DNA (Schwartz & Vissing 2002). Mitochondrial Eve is referred to as an ancestor who has been hypothesized on the grounds of fossil as well as DNA evidence (Vigilant et al. 1991). Phylogenies are constructed on mtDNA comparison shown that the living humans whose mitochondrial lineages branched earliest from the tree are indigenous Africans, while the lineages of indigenous peoples on other continents all branch off from African lines (Vigilant et al. 1991). Researchers can reason that all humans descend from Africa; and then they migrated out of Africa to populate the rest of the world. If the mitochondrial analysis is accurate, then mitochondrial Eve represents the origin of the mitochondrial family tree. Eve must have predated the mass departure and lived in Africa (Vigilant et al. 1991). Mitochondrial Eve was the most recent matrilineal ancestor of humans alive today. On the other hand, as evident lineages died out, the status of common matrilineal ancestor would have been passed to a descendant of the previous matrilineal ancestor. ... The nucleotide sequence of the hypervariable 1 (HV-1) region of mtDNA was determined from samples of all four groups. There were 275 HV-1 sequences, and a total of 164 haplotypes were observed (Jackson et al.). Jackson reveals that through analysis of molecular inconsistency indicated that the distribution of these haplotypes within the Limba sample was considerably different from the other ethnic groups. He further states that there was no significant difference between the other groups (Jackson et al.). These distinguishing results show genetic differences that can be observed within different ethnic groups in considerably close proximity of each other. Moreover, Jackson, and his group, observed some mtDNA haplotypes that were similar among the Sierra Leone ethnic groups and that have not been published in any other West African studies (Jackson et al.). As a result, there may be evidence for mtDNA lineages that are unique to this region of Western Africa. The methods of sampling w ere cheek swabs, using the BuccalAmp DNA Extraction kit according to the manufacturer's specifications, which were taking from 166 unrelated individuals from all four ethnic groups: Mende, Temne, Loko, and Limba (Jackson et al.). These samples were obtained in pre-arranged meetings and males were primarily observed. This was because matrilineal and patrilineal studies were conducted (Jackson et al.). Matrilineal and patrilineal ethnic lineages over three generations were recorded for each individual. The mtDNA haplotypes were determined by analyzing the nucleotide sequence of the hypervariable region (HV-I). HV1 sequences were allied and edited from positions 16001-16480 to ensure the identification of unambiguous polymorphisms (Jackson et al.). 480 bases of HV-I

strategic analysis of mcdonalds in india

strategic analysis of mcdonalds in india McDonalds vision is to be the worlds best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. Values. Our values summarized in Q.S.C V. Provide good quality, services to customer. Have cleanliness environment when customer enjoys their meal .The value of food product makes every customer is smiling. Executive Summary. This documentation is mainly about the business strategies of McDonalds in India how it applies their strategies to interact with external environment. This discussed the following Porters models to imply the companys strategies in detail; Porters Generic Strategy analysis.(Use to identify the strategies to select) Porters Value Chain analysis. (Use to identify the value chain activities to support the strategy.) As a fast food company, the rivals that it has faced in the Indian economy during the implementation the strategies they applied, and the strategy changes according to different situations reports from this document. Porters generic strategy analysis of McDonalds is mainly on its unique characteristic applied in India, companys commitment dedication driven to reach the success in the Indian market. It shows McDonalds Business strategies that took place during the banking crisis which lead to global economy recession how it affected the Indian economy. Through Porters Value Chain Analysis this document tries to highlight McDonalds primary activities support activities of their production process, applied in India. Through this analysis, it shows the factors influencing the company performance, coordination between firms in the industry their quality support services as well. Also, report tends to discuss the situation of other competitors in the industry, their performance and position in the Indian market. Finally, this report implies that low cost focus strategy can keep a company to survive in the recession. Also, it can achieve low cost focus strategy through their logistic systems, reducing food wastes and increasing effectiveness of employees. Introduction. Mc Donalds, was originated in USA (California) in 1954, and has become one of the successful fast food chains in the world. Also one of the most recognized and established brands in the world. To such a development it helps some successful business strategies which lined to its external environment (Macro environment) and the industry environment (Micro environment). This document discussed the success of McDonalds especially in India and the strategies that they followed to reach the current position. Also, this provides a discussion of an analysis of why the company selects those strategies in response to the changing external environment to reach the goals. The company was able to establish around 30,000 franchising stores in 119 countries, targeting around 47 million people each day and it generates about $ 15 billion revenues annually. In India, McDonalds is a 50-50 joint partnership business between McDonalds corporations [USA] and two Indian businessmen. It took them six years with an investment of 4 billion to build up their supply chain properly in the Indian market. Their first restaurant in India was opened in 1996 at New Delhi. By introducing differentiated menu products according to the Indian taste, improving logistics systems with better supplier relationships it began to spread all over the country rapidly. Now the company expanded in 34 cities in India by covering 132 outlets. N. Jadhav A.Shaikh 2010, Supply chain management, Perishable products (Restaurant chain)[Presentations], viewed [ 19/12/2010], http://www.slideshare.net/sunilmbsingh/mcdonalds-final (Diagram 1) Porters Generic Strategy Analysis: Porters generic strategies framework provides a major contribution to the development of the strategic management the company can achieve to their competitive advantages by differentiating their products and services from its competitors through low costs. Mc Donalds targeted their products and services by a broad target through covering most of the market places. Also, it attains competitive advantage through market segmentation using Porters differentiation focus strategy. 8.1 Differentiation strategy of McDonalds: In differentiation strategy, fast food chains need to be more selective in which products to offer more creative in their promotion strategy. McDonalds offers specialized (Regionalized) version of its menu. This leads to differentiate the products from other competitor products as well. Mc Grilled sandwiches in US Canada. Mc Chicken Premiere Zesty chicken in UK, France, Italy Belgium. To overcome their healthy issues Mc Donalds added salads other lighter options to its menu encourage people to visit more often. Product adaptation in India- Vegetarian selections, No beef or pork items, McMasala Wide variety of menu items according to the Indian menu items; Vegetable non vegetable products. Health conscious items. Local flavors. Food preferences India B. Craig K. R. Dickson, 11th December 2007, Supply chain management, Mc India ppt[Presentations], viewed [ 19/12/2010],http://www.slideshare.net/KRDickson/McIndia-Final-ppt (Diagram 2) Mc Donalds premium line: They have introduced a group of products in early 2000s. It includes McDonalds larger chicken sandwich, salad line coffee products. Grilled chicken sandwiches are targeted different demographic markets. Mc Cafes located in Australia within the McDonalds restaurant. Types of restaurants: Counter service drive through (With indoor outdoor seating in Delhi.) McDrive locations near highways offer no counter services or seating. McCafà © restaurants within the same McDonalds restaurants. (They increased sales by 60% from this strategy.) Expansion for the following locations as well; More distribution centers within 500 km radius. Satellite cities near Mumbai Delhi. Cities with tourist appeal and eating out culture. Petrol stations, railway bus stations in around Delhi. Shopping malls and movie complexes (Delhi Mumbai) Differentiating promotion programs: McDonalds focused on superior price performance during the time of economic crisis. Point of sales (POS) promotion programs. Combo meals. (Customers get more discounts through this.) Lottery for winning its products. Sampling activities to taste their products to a discount price. Internet promotions. TV and other media promotions. To differentiate with their competitors McDonalds tried to focus on its unique campaign. Im lovin it campaign to attract family. Feature artists to attract teenagers. Introduces wireless technology platform, by allowing their customers to access internet by creating an innovative environment. 8.2 Cost leadership strategy: Under Porters competitive strategies, McDonalds uses an overall low-cost leadership strategy to reduce cost increase sales. Higher profits resulting from sales through lower prices than competitors as the unit cost is lower. Mc Donalds is having a biggest market share out of completive fast food restaurants. Therefore, they increase sales by reducing price than competitors. Food Items McDonalds Subway KFC Pizza Hut Dominos Burgers Pizzas Rs 20- Rs 70 Rs 65- Rs 135 Rs 25- Rs 175 Rs 55- Rs 175 (Regular) Rs 35-Rs 140 (Regular) Combo Meals Rs 49- Rs 119 Rs 45- Rs 175 Rs 55- Rs 150 Rs 120- Rs 250 Rs 120- Rs 230 Beverages Rs 25- Rs 50 Small- 300ml Rs 35- Rs 45 Small 300ml Rs 30- Rs 55 Small 300ml Pet beverage MRP 600ml Rs 30 600 ml Deserts Rs 12-Rs 25 Rs 20- Rs50 Rs 15- Rs 65 Rs 40- Rs 60 Rs 25 100 ml Cup of Baskin Robbins (Diagram 3) Market share (worldwide): Company Stores Countries Market share McDonalds 31108 120 33.06% Burger King 11455 58 13.68% Wendys 8811 22 11.69% Hardeess 3295 15 2.78% Jack in the Box 2000 1 3.67% (Diagram 4) McDonalds India: Network competitors Company Outlets (No.) Cities Covered McDonalds 132 34 Pizza Hut 137 34 Dominos 220 42 Subway 131 32 KFC 34 09 (Diagram 5) Bruce Craig, Keith R. Dickson, International Business Management, Network competitors [Online], available at: http://www.slideshare.net/KRDickson/McIndia-Final-ppt [20/12/2010] Through adding 700-900 restaurants annually, McDonalds enter new markets through lower prices. It shows a great barrier to entry for competitors to enter the industry. Through its strong centralized authority tight control, standardized procedures McDonalds takes most an efficiency approach. Key elements of McDonalds business strategy; Adding 700-900 restaurants annually. Giving low price products, Extra offers through new menu items. Highly selective in granting franchises. Selects most convenient places to customers. Focused on limited product lines through maintaining the quality. Extensive advertising. Proper HR management through equitable wage good training. McDonalds cost leadership strategy growth strategy is based on; Adding new restaurants. Maximizing sales sales in existing restaurants. Improving profitability (globally) Success behind their business lies in the maximum of Think global, act local. They ensure that their structure fits with the international environment, but also have internal flexibility geographically. McDonalds has twice the market share of its closest competitor, Burger King. :

Biblical Symbolism In Rime of the Ancient Mariner :: Samuel Taylor Coleridge

  Ã‚  Ã‚  Ã‚  Ã‚   Samuel Taylor Coleridge's poem "The Rime of the Ancient Mariner," written in 1797, has been widely discussed throughout literary history. Although critics have come up with many different interpretations of this poem, one idea that has remained prevalent throughout these discussions is the apparent religious symbolism present throughout this poem. "The Ancient Mariner" contains natural, gothic, and biblical symbolism; however, the religious and natural symbolism, which coincide with one another, play the most important roles in this poem (Piper 43). It is apocalyptic and natural symbolism that dominates the core of this poem (43). The biblical symbolism found in this poem mainly reflects the apocalypse, as it deals with the Mariner's revelation that good will triumph over evil, and his acceptance of all nature as God's creation. It is impossible to believe that Coleridge was not thinking of the mysterious wind that blows on the Mariner, without any awareness of the wind as a Biblical symbol of the Holy Spirit. Coleridge could also not associate the murder of the albatross with the crucifixion of Jesus Christ. The reader is told that the Polar Spirit "loved the bird that loved the man who shot him with his bow." It is doubtful that someone with Coleridge's Christian background and faith could fail to see here an analogy with God who loved his son who loved the men that killed him. Another example of symbolism is the fact that the albatross is hung around the Mariner's neck like a crucifix. Event the "cross" in "cross-bow" hints at the murder of Jesus, which logically paces the albatross as a symbol for Christ. It is thought that Coleridge deliberately created these symbols and images with Christian meaning in mind. The apocalypse is heavily reflected upon throughout this poem as Coleridge combined the vivid colors, the ocean, and the death fires of "The Ancient Mariner" with the terror and desolation of the days of wrath in the apocalypse. The section of the poem after the Mariner kills the Albatross is a description of the emptiness and desolation that the Mariners experience, and the curse that is over the ship. This section of the poem has tremendous correspondence to the apocalyptic story. The language and form in this part of the poem represent the images and words, which have traditionally described the wrath of God and the guilt of man in Christian term s. Its is at this point in the poem that the Mariner feels guilty for having killed the Albatross and for the deaths of his shipmates.

Lobbying strategies used by financial services Essay

General knowledge about patenting and the patent reform legislation. A patent can be said to be a se of exclusive rights given to an inventor or his assignee for a given period in exchange for the invention details. However in countries like us extras qualification utility patents is used to differentiate them from other types of patents, this should not be confused with utility models grants by other countries. (http://www.ipaustralia-gov.au/patents/what_index.sch.html)examples of these particular patents for invention includes biological patents, business method patents, chemical patents and software patents. In some other countries other types of intellectual property rights (IPR) are called patents while industrial design rights are referred to as design patents which protect the physical designs of objects which are not of great utility. As such therefore, patent should not be mistaken for a right to practice or use the inventor, it(patent) provides the authority to prevent other people from making, using, selling or offering for sale or importing the patented invention for as long as the term of the patent remains, which in most cases is usually 20years. In real sense a patent is a limited property right that the government leases to inventors in exchange of their (inventors) disclosure of the details leading to their invention. Patent therefore, like any other property rights can be leased, mortgaged, assigned, licensed, given away or even transfered.As briefly stated above the rights governing a patent varies from country to country. For instance in Australia, other people are allowed to build on top of already patented invention. This is possible by making use of exceptions from infringement procedures e.g. allowances for academic research (http. /paustralia- gov.au/patents/what_ index .sch.html). While on the other hand in US things are very different on patent rights governing research, whereby even developing of an existing invention amounts to infringement. The mystery of patents is exhibited when one wants to make an improvement of an already patented invention. This can only be done legally by seeking permission from the patent holder, assuming that the patent is still in force When the new improvement is made the owner of it can bar the original patent owner from using the improvement and hence denying him of the right to exploit the patent. However some countries require that the invention be exploited in the jurisdiction it covers. Again the penalties of not working an invention vary from country to country but the common penalties ranges from revocation of the patent rights to awarding of a license to any party in a position to exploit the invention. The patentee can seek legal redress and challenge the revocation or the issuance of the license. But there exists a big hurdle in offering of tangible evidence that, the requirement of the public have really been met by the working the invention. Generally patents can only be put in force through law suits (e.g. in US, patent infringements are handled in the US federal courts) in other countries like France and Australia criminal penalties for patent infringements are given. In case of an infringement the patent owner will demand to be compensated financially for past infringement and then also seek to bar the defendant (infringer)from engaging in any further acts of infringement. However it is not always easy for the patent owner to prove that infringement really took place. As such, he is required to establish that the accused practiced all that the patent was entitled to; again, the issue of independent jurisdictions patent rights tradition also arises. The above statements about the powers of a patent owner are enough evidence to show that there is a great limitation on the patent owner because the accused has a right to challenge the validity of a patent .It is common for civil courts hearing patent cases to declare patents invalid. The basis on which a patent can be declared invalid are stated on the patent agreement, and again this varies from one jurisdiction to another. However some countries like UK have laws discoursing infringers from challenging the validity of patents. In the UK this discouraged through the certificate of contested validity. Nevertheless not all patent rights disputes are settled through litigatation. Majority of these disputes are settled through private patent licensing agreements. These agreement are simply practical, effective contracts whereby the patent owner (also know as licensor) voluntarily decides not to sue an infringer in return of some payment .Research shows that this is common in companies which deals with complex products. These companies also issue patented licenses to other business rivals under what is known as cross licensing agreements. This in turn facilities the cross accessing of each other inventions (special problems in patent cases 66.FRD 529,197 by Howard T Markey) As seen above different jurisdictions have different traditions of approaching patenting, but it should be noted that in many nations both single entities (natural persons) and corporate entities can apply for a patent. On issuance of this patent then the entity (ies) becomes the owners of the patents. However, it is mandatory that the inventor (s) be named so that the public can get to know how the owner(s) of the patent acquired the rights. For example in US only the inventor(s) (natural person) can apply for a patent, in cases of multi inventors then each inventor is given a patent which s very independent from those given to other co- inventors . It is a normal practice also in US for inventors to assign their ownership rights to a corporate body, this is done in cases of multi-inventors so that only one single entity has the rights to grant a license. Another reason is to increase the liquidity of the patent as property, so that inventors can be in a position to sell them to a third party, who in turn owns the patent as though they were the real investors. From the above detailed information about the function ability of patents and patent rights it is evident that patents and patent rights need to be protected by relevant laws so that neither party i.e. patent owners, authorities, and infringers is vulnerable to mistreatment. Therefore nations and also internal communities have come up with laws that govern the enforcement of patents. Patents as such therefore, are governed by laws at a national level and at an international level through signing of treaties. It can be said that patents are therefore not national but territorial in nature. It is traditional that every nation forms a [patent office which carries out patenting responsibilities in regards of the laws of the country. However cases of infringements are left to be catered by national courts. On an international scale it is the work of the world Trade organization (WTO) to harmonize these patent laws. Agreement have been reached successfully in aligning these patent laws .Adherence to these agreements is a mandatory requirement for admission to the WTO, a factor leading to mass compliance by many nations .Even the developing countries are not left back although they have been known to enforce national laws protecting their local industries. A paramount international meting held in Paris relating to patent systems culminated in the signing of the above agreement. Although the agreement does not have a consequential legal effect in national jurisdictions its principles are largely inculcated in many current patent systems. For instance one such principle is the right to claim priority which allows an application filled in a member state of the Paris meeting to be valid for one year and also to be filled in any other member state and still receive its original filling date. This is a great achievement since patent ownership is entirely date oriented. Again the powers and dynamics of patents vary from sate to another. In US for example, the lands prime law (constitution), gives the congress the mandate to make laws, to promote, and uphold the progress of Science and useful Arts. These laws once passed, are then enshrined in Title 35 of the United States Code. The United States patent and trademark office (USPTO) was created under the above laws. (US patent activity, 1790 to present – http://www. Upstaged/web/ offices/ac/ido/oeip/taf/h-counts-html). In UR, patent laws are contained in the patents Act 1977 (amended). On international perspective, as mentioned above there exists international freely procedures e.g. procedures under European patent convention (EPC) which works under European patent organization (EPO) and patent cooperation Treaty (PCT) among many others. Similar treaties exist in African content countries. For a natural person or a corporate entity to be awarded a patent then an application requesting the same has to be filled at the relevant patent office. This application contains such information like how to make and put the invention into use and also the utility of the invention. Also contained in the application form is claims which explain more about the invention and the extend of patent rights in regards to applicants wishes. The above details together with a written description with drawings are part of the patent specification. In some nations like US, the applicant is also required to include the most effective way to make and practice the invention. The claim part acts as a disclosure to the public on the limits to which the patentee has over the invention. In other words a claim shows what the patent covers and what does not cover. It should be noted also that a single patent can have numerous claims, each regarded as an independent invention. Once the above requirements have been provided it is now the duty of the patent office to counter check whether the application is in order with the relevant legal provisions in relation to the particular specie of patents. Once it is approved the patent takes effect from the date issued and it is subject to yearly renewals so as to remain in force in relation to (Egbert vs. Lippmenn, 104 U.S. 333 (1881) â€Å"the corset case†) The US supreme court passed a decision that any inventor who has not applied for a patent for more than eleven years of using the invention, cannot be given one. Hence there is a need to seek for a patent once an invention has been made (http://www. Wolf Greenfield. Com/media/news. 9.pdf) In a summary of the above information about patent system four main aspects have clearly been discussed about, they include; i. Inventing: – Through intensive research and consulting Scientists and artists are able to come up with inventions. The desire to dig more and come up with inventions is catalyzed by the existence of patent rights. Which comes with much money as a result of selling patent licenses ii. Disclosing the invention made: – As per the meaning of patent, the disclosure of invention is for a common good. This is so because there are projections as to the rights of invention and hence inventors feel free to disclose their invention. This disclosure facilitates for exploitation of patent right when the current one expire or even improvements are made. iii. To invest in producing, experimenting, and marketing of the invention. This is done out the faith that infrequent cases are well protected against. iv. Designing and improving of earlier patents: – This can only be possible is details of already existing patents are disclosed to the public. All the above stuff concerning modern patent system allows for infant inventors to gain exclusive rights and therefore becoming licensors. They therefore gain financially and in the long run promoting more innovations. Due to loopholes the legal systems governing patents cases of double awarding of patents have been common. (According to R.Buck minster Fuller 1938). Due to the increasing number of inventions the patent filling systems are becoming more complex day and day and hence there is a likehood of awarding a patent to an invention already patented before. However with the introduction of reliable computing system this has been kept at bay. According to Michael Heller, a law professor and Rebecca Sue Eisenberg in a 1998 in their 1998 science article, intellectual property Rights (IPR) have become so much fragmented that signing them will require an agreement with all the owners of fragments. Another big hurdle in patents is that they discourage innovations especially with corporate entities who may own many patents and enter into litigations incases of infringement although they are doing absolutely nothing to develop the invention. Other numerous problems also exist and as a result critisms have been common opposing the patents system and proposing for their abolition altogether. Lastly, it will be fair to put forth some historical information regarding the existence of patents. Reliable evidence suggests that the first stints of patents can be traced to ancient Greek cities whereby any one who came up with a new recipe was allowed to make the food for one year. On the other hand, modern patents can be traced to the republic of Venice whereby new inventions were publicly communicated to prevent undue infringement. Other countries followed suit e.g. U.K, US and therefore the idea of patents spread through other parts of the World. The above detailed account about patents gives a reader of this paper a sound basis to now tackle the issue of financial services industry, lobbying strategies in the addressing of the patent reform bill (legislation) before the 110th congress. As already explained above the patents system in united states are under the body known as United States patent and Trade mark organization (USPTO).This body is therefore incharge of issuance of patents to inventors. According to a 2004 report by National Agency of a sciences and another report of 2003 report by Federal Trade Commissioner a bill (patent Reform Act 2005) was proposed. The main aim of this bill was to try and bring a theme of modernity in the USA patent system. Although it was not until 2007 when this bill was introduced to the bicameral US parliament (Senate and House of representatives). This bill now known as â€Å"The patent Reform Act of 2007† was introduced as a proposal in the 110th US congress for discussion and eventual change of the United States Patent Laws. The bills main objective was to bring the American patent laws to the same level with other countries patent laws. (According to a patent system for the 21st century, by Stephen. A. Merrill Richard L. Levin and mark B. Myers, 2004- (http://www ton.nap.eds/catalog//76.html) The main changes brought by this legislation were – I). Converting US from a first- to- invent system to a first- inventor- to -file system. This bill will bring US to conformity with other countries of world. This system will also reduce legal costs, simplify the patent process, improve fairness and also facilitate a movement towards harmonized international patent system. It is also agreed that this change will reduce the complexity associated with the current USPTO interference proceedings. This will therefore make inventors to focus more on inventing. Since this change would make US to be in harmony with other countries it will help US inventors to pursue their innovative dreams in more consisted manner. On the hand, critics have agreed that this system of first to file will encourage unnecessary USPTO with unharmonized disclosure information; therefore quality of patents is compromised. Again the small scale inventors will be at a disadvantage when competing with large co operations in the race to the pattern office. The next major change was apportionment of damages. The bill will seek to bring sanity in the award of damages due from infringements of patents. The bill allows a court of law to ensure that the damages are paid according to the prevailing economic conditions pertaining to the patented invention. This was seen a measure to cut excessive royalty payment infringed patented. Large technological companies and financial services industries supported this change because they lie on features which are in most cases in patented. Critics of this system argued that, the congress should not attempt to prioritize the factors that a court may apply when determining reasonable damage rights. This system may also undermine the existing licenses and therefore leads to the rise of litigation. Those critics included USPTO, the biotechnology among many others. Other charges embedded in the bill included; Allowing a third party assignee to file a patent application, Revising procedures for patent interference disputes; Allowing financial institutions to infringe patents on the check collection system, Allowing a person who is not the patent owner to file a petition with the board cancel a patent as invalid among many other changes. These changes sought to facilitate a general overhaul of the US patent system. Which according to the coalition for 21st century patent Return was in dire need for periodic examination and foundational changes (http://www.ipfrolmer.com/depts/artic.asp?id=14890&deptid=4) This reform bill on patents was introduced to the House of Representatives by a democrat, MR. Howard Berman and in the senate by another Democrat, MR. Patrick Leahy. It was passed in the House of Representatives but put under more scrutiny pending voting in the senate following its introduction in the 110th United States Congress. The bill has been faced with positive and negative critisms from different organizations. Those organizations lobbying for its subsequent adoption argue that, the bill is necessary to bringing in the much needed changes and consequently reduce the number of soaring ills which are killing innovation. Some of these organizations include coalition for patent fairness, Business software alliance intellectual property owners association and lastly American institute of certified public accounts. Those according to them are weakening the rights of patent owners innovations included the following national small business organization, innovatiove alliance, Biotechnology industry organization among others (http://www.napp, org/resources/nap opp to 2007 senate Bill. pdf) According to the US department of commerce the only part which need some revision is section 4 which they argue may harm the nation’s intellectual property system. The bill also attracted critisms from international community with a Chinese expert calling the bill hypocritical; since it is weakening the rights of patent owners in US when US has been urging the Chinese government to strengthen the rights of their patent owners. An observation also comes from India pharmaceutical Alliance who argued the bills provision allows for the validity of a US patent to be challenged immediately after issuance. They also predict that the bill may favour Indian manufacturers since it reduces legal costs and risks. (Http.economictrimes.com/article show/mst 22256,pr+page – 1.cms1) The lobbying strategies The first question one should ask himself when tackling this debate is very simple, how is the proposed patent reform bill going to affect the performance of the financial institutions? Secondly has the current patent laws been in â€Å"favor† of the financial institutions? With these two questions in mind then it is very easy to the financial institutions stand in respect to these reforms. Consequently, therefore, the lobbying strategies they employ will be directly related to these effects. This issue of patent reforms may seem to a nonprofessional to be of no consequential impact and therefore does not deserve much thought but to the business community things are very different. The above detailed account of the pros and cons of the patent reform bill, it is very clear that there exists a tug-of war between some of the corporate US citizens. On one side of the war are much dreaded patent trolls or better known as patent sharks-small firms or individuals who wit fully trap large manufacturers in patent infringement suits in order to benefit from damage awards. On the other side of this war are financial institutions, which, includes banks and insurance firms who have joined hands with large tech-companies. It is understood that these two sectors have been faced with regular lawsuits coming from the much-dreaded patent sharks. At the center of the dispute is the current Americas patent system that is suffering from lack of a major policy overhaul for along period of time and struggling to stay in level with innovation in thev21st century. Therefore, financial institutions have always found themselves in a hot spot under the current patent laws. It is in this light that any reforms that seeks to address their plight is seen as a relieve to them. The first strategy therefore employed by these financial institutions was the formation of a bargaining platform in the form of â€Å"the coalition of patent fairness†. This group lobbied the senate to help curb the weak patents and bourgeois lawsuits from patent sharks. The group also lobbied against a ruling made by the federal appeals court that opened doors for patents on business methods, including different types of banking, investments and insurance techniques. It is through this lobbying that, the senate judiciary committee included a provision that grants banks immunity against lawsuits from patent holders like Texas Company Data Treasury, which holds patent on a method of digitally scanning, sending and storing checks. Another strategy used by financial firms is by applying for patents. These patents unlike those of other industries are not primarily for financial gains but for defensive purposes against the escalating number of patent infringement cases from the much-dreaded patent sharks. Financial institutions in US are also exploiting the fact that US is the only nation in the world to have been left back using the first-to-invent system of patenting to lobby the international organizations (WTO).this seems to have borne fruits because the USPTO seems to have yielded to the pressure and therefore agreed to bring some changes. This has worked through the harmonization of the US patenting system with the rest of the world. After the House of Representatives passed its version of the bill, many AUTM members frantically contacted their congressional members a move that enabled many parts of the bill to be amended. However the senate bill remained to be harmonized. Following great concern from the university community and other bodies, a number of changes were made. One lobbying strategy, which financial services institution used was voicing their concerns through the AUTM, an organization of many universities and other bodies that induces closeness to industries. It should be noted that the AUTM and the university community were not in anyway against the improvement of US patent system. Their main concern was to see that before the bill was finally voted for in the senate, the contentious parts should be first fine-tuned. As a show of great support to the improvement of the US patent system, the university group therefore put fourth the following suggestions (i) a one-year grace period for first inventor and strong inventor oath should be included. ii)Removal of the previous user rights expansion in favour of study of issue university patent can be in a risk of expanding prior user rights iii) Venue reform provision that exempt universities and technology transfer foundations that offer patent services to universities. The bill as it were had many provisions that were of great concern to US universities chiefly because it undermined the ability of the universities to transfer technology to local industries. This was due to the making of patents difficult to protect decreasing the amount of damages patent holder can get from an infringer and opening new avenues for infringers to put to task the validity of issued patents. This change of USPTO rules and the issue of Supreme Court in mind made it more burdensome, and expensive to get, maintain and even enforce patents. It also poses difficulties for Universities when starting companies, which attract venture funding. Other areas, which concerned Universities and financial institutions were, are as follows:- i. A compulsory search report and analyses, which reflect heavily on the financial aspects of Universities on technology, transfer offices. ii. Absence of meaningful inadequate contact reform iii. An open-ended, post-grant administrative review of patent quality. iv. Venue reform policy that forces patentee to file suits in the infringer home district court and v. Apportionment of damages in patent infringement suits. Another strategic lobbying device at the disposal of financial institutions and other concerned organizations was through approaching federal relations officer near them. These federal relations officers are discharged with the main duty of acting as the intermediaries between the people and senate (legislators). Due to the bill, having so many controversial sections, there was an urgent need for the stakeholders to harmonize their divergent views and come up with a consensus. This was achieved through the congressional research service (CRS) an arm of United State Congress that provides policy and legal advices to committees and members of both the house and the Senate regardless of party affiliations. The CRS committee collects views from the public and then they act accordingly. Again, this CRS also carries out civic education concerning the interpretation of bills and their effect to the lives of the common person. Holding of workshops and seminars with the other stakeholders was another worthwhile strategy used to help bring every concerned party on board so that when the legislation is adopted no one would feel shortchanged. Workshops are known to bring warring parties together on a mutual agreement. These workshops therefore lobbied the opposing bodies into ceding some of their unrealistic demands. Financial services institutions through their attorneys lobbied the senate judiciary committee into making provisions that gave them more power in the using of technologies made by other inventors. These technologies are necessary in the improvement of banking services offered to customers. The bill therefore needed to be lobbied and subsequently harmonized. Conclusion The AUTM through their technology transfer managers evaluated impact of the long legislation on its general operations and therefore come up with a strategy, educate the university management and also other interested and the work with the federal relations officer, who in turn contacts the lawmakers. This technology transfer managers advice the legislators on the need to go the dialogue way so that at end of it all no constituency feels as being shortchanged by the passing of the patent reform legislation. In general, the current state of the bill would weaken the entire American patent system by making patented under to protect. The damages entitled to a patent owner after an infringement has been reduced adding salt to the wound. New avenues for infringers to challenge an already issued patent have also been opened. Although the bill continues to be harmonized bit by bit, the university technology transfer system still view some areas as not fully catered for. The legislation also provides for a patent trial and appeal bond, which is charged with the responsibilities of reviewing decisions of examiners upon applications and reexamination proceedings. Financial services institution therefore can utilize this avenue in addressing and subsequent challenging of the patent reforms legislations. This board comes as an indicator on how this reform legislation has deliberately been drafted and therefore only needs to be harmonized on the small areas. However, it is fair to say that America need this bill to at least bring some uniformity with rest of the world because it has been the only country adopting the first-invent system of patenting. Two, according to Senator Leahy, America needs an efficient and streamlined patent system if it is to remain in the forefront of the world economy. This patent will bring quality and at the same time discourage counter productive litigations. Senator Berman on his side argued that, there should be no doubt, as to whether the US system of patenting produces high quality patents, and therefore changing the existing patenting practices through the congress is the only way out. The bill also, should not be viewed with suspicion since it was founded and introduced in the two houses on a bipartisan basis. It is also the bedrock of American innovation, and therefore there is great need to protect innovation and creativity, according to Senator Hatch. Financial services industry being one of the major economic players of the United State of America, needs also to standup on its own and voice out their grievances. In addition, financial services institutions like banks and insurance companies have a duty to challenge the patent reforms legislation because they have started to seek protection from infringement lawsuits from patent sharks. This was facilitated through the introduction of financial patents. References; More about patent reforms, available at, 1) http://www.ipfrolmer.com/depts/artic.asp?id=14890&deptid=4, accessed on april30 2008 Effects of patent reforms, available at, 2)Http.economictrimes.com/article show/mst 22256,pr+page – 1.cms1) , accessed on april30 2008 Patent reforms for 21st cen. available at, 3) http://www ton.nap.eds/catalog//76.html) accessed on april30 2008 US patent and trademark office, available at, 4) http://www. Upstaged/web/ offices/ac/ido/oeip/taf/h-counts-html accessed on april30 2008 Regulations governing patent application, available at, 5) http://www. Wolf Greenfield. Com/media/news. 9.pdf) accessed on april30 2008 More about patenting, available at, 6)http://www.ipaustralia-gov.au/patents/what_index.sch.html) accessed on april30 2008 Patenting and innovations, available at, 7) Heller, M.A., & Eisenberg, R.S. (1998). Can Patents Deter Innovation? The Ant commons in Biomedical Research. Science. Different organizations response towards the patent reform bill, available at; 8) http://dev.bsa.org/country/public%20policy/patents.aspx, accessed on april30 2008

Evaluate the Nazis economic policies from 1933 ¡V 1939. essays

Evaluate the Nazis economic policies from 1933  ¡V 1939. essays It is almost a universal conception that Hitler deliberately provoked World War II for his personal desires. Some historians prove this belief by Hitler ¡s biography  ¡My Struggle ¡ (Mein Kampf) and his series of bold and aggressive foreign policies. While others confirm this notion by demonstrating the objectives of pre-war Nazis economic policies. They claim that Hitler immediately started carrying out rearmament program and various war-preparatory measures once he came to power in 1933. Because of his lack of planning and ignorance to the economic situation, he failed to prepare Germany for a major war by 1939, and he even failed to deal with Germany ¡s own economic problems in 1932. However, this claim is not well justified. In fact, Hitler did put a lot of emphasis on economic recovery in the first three years of his regime. It is not until 1936 did he start accentuating his warfare programs. As a consequence, considering the time duration, the progress that the Nazi leaders made with their policies, and the  ¡Blitzkrieg ¡ war aim proposed by Hitler, actually Hitler was very successful in arming Germany and making Germany ready for a series of short but speedy wars by 1939 when he invaded Poland. When Hitler came into the office in 1933 he faced an economically devastated Germany. Although the economic situation was improved with aids given by the United States, Germany still suffered a great deal from the Great Depression in 1929, and  ¡economic activity had recovered only slightly from the lowest point of the depression ¡ . Unemployment was the most serious problem at that time. Hitler understood very well that, with six million official unemployment registers and an estimate of a million more non-registered, it was absolutely impossible to rearm Germany at that stage. He also understood that, instead of rearmament  ¡recovery was the immediate priority ¡ . Therefore, on May 1, 1933, H...

School Gossip Can Destroy Teachers and Staff Members

School Gossip Can Destroy Teachers and Staff Members A teacher conducts an activity to show her class just how silly gossip can be. She whispers something to a student and then that student whispers it to the next until it had been passed to every student in class. What started as, We are going to have a long three day weekend starting tomorrow ended up as, We will be lucky if three of you arent killed this weekend. The teacher uses this activity to teach her students why you shouldn’t believe everything you hear. She also discusses why it is essential to stop gossip instead of helping to spread it.​ The lesson above is sadly not limited to the students in the school. Gossip runs rampant in just about any workplace. Schools should be a safe haven where this is not a significant problem. The faculty and staff within a school should never start, participate in, or promote gossip. However, the truth is that all too often schools are the focal point of gossip in the community. The teacher’s lounge or the teacher’s table in the cafeteria is often the center of where this gossip occurs. It is mind-boggling as to why people need to talk about what is going on with other people. Teachers should always practice what they preach. Particularly those who have seen the negative impact gossip has had on their students. The truth is that the effect of gossip can be the same or worse as an adult. When Empathy Proves Elusive As a teacher, you have so much going on in your own classroom and life that it can be difficult to truly understand that there is just as much or more going on in every other classroom and co-workers lives. Empathy sometimes proves elusive when it should be commonplace. Gossip is frustrating because it builds walls between teachers and staff members that need to be working together. Instead, they feud because someone said something about the other to someone else. The entire idea of gossip among a school faculty and staff is disheartening. Gossip can split a schools faculty and staff in half and in the end, the people who are hurt the worst will be your student body As a school leader, it is your job to discourage gossip among the adults in your building.  Teaching is difficult enough without worrying about what others are saying.   Teachers should have each other’s back, not talk behind each other’s back. Gossip creates a large part of your discipline issues with students, and it will create even larger problems within your faculty and staff if it is not dealt with quickly. The key to minimizing the gossip issues among your faculty/staff is to educate them on the topic. Being proactive will go a long way in keeping gossip issues to a minimum. Have regular conversations with your faculty and staff members discussing the bigger picture about the damage that gossip can cause. Furthermore, implement strategic team build activities that bring them together and naturally forge solid relationships. When it comes to gossip, make sure they know what your expectations are and how you will deal with it when it becomes an issue. How to Proactively Defeat Conflict It is also not realistic to have a faculty and staff where there is never any conflict. A policy or set of guidelines must be in place when this happens that leads towards resolution between the two parties instead of division. Encourage your faculty and staff members to bring these issues to you and then act as a mediator between the two parties. Having them sit down together and talk out their issues will help. It may not be effective in every case, but it will peacefully solve the majority of conflict issues that you have with your faculty and staff. It is better to take this approach than to have them gossiping about it with other members of the faculty and staff which can lead to bigger issues down the line.

Sustainable architecture Research Paper Example | Topics and Well Written Essays - 1000 words

Sustainable architecture - Research Paper Example Sustainable architecture starts with linkage to personal values and involves the social, environmental and economic conditions of a project. Similarly, architectural expression emanates from this desire, responding to certain watershed, locations, sites, societies and proximities. The answers to what constitutes sustainable architecture embrace a range as wide and dynamic as the challenges facing the globe and the statements list is as diverse and extensive as the civilization the dominate the world. Sustainable development embraces a balanced sociocultural, ecological and economic progress. The above elements also characterize sustainable architecture. Construction and design is one of the extensive world industries; hence their effects on sustainability are enormous, (Turrent 85). The metropolis and municipalities people have designed and constructed to satisfy their ever-increasing requirements have been unproductively consuming the resources of the earth, while declining to satis fy millions of humans. Sustainable architecture is a necessity if people wish to ensure human and enduring planet existence. Attaining sustainable architecture needs a multifaceted global effort by all countries. Sustainable architectural practices must appear in all places, address various challenges, occur in various levels, function in different contexts, serve various requirements and limitations, be applicable at various scales and use diverse disciplines. Similarly, the possibilities, requirements, potentials are diverse in each nation, similar to levels of education, techniques, industrializations, mechanisms, strategies and motivation. Each nation, person and community, should identify best-suited remedies, and via domestic action contribute to progress at a global level. Sustainable architecture is sweeping change in that it can be attained globally. There are various areas to start, various points to address the challenge, diverse attractive ways to construct structures an d towns and increased effective ways to utilize, replenish and recycle resources. In other words, it ranges from high- tech remedies to low technological strategies, research, advancements, education, industrial achievements, innovation of design, economic aspects, legislative measures and enormous adoption of beneficial practices as principle practices. Significant potential lies in substituting adverse measures with beneficial measures and increasing the advancements in architectural structures and cities all over the globe. Sustainable construction should support better living that incorporates better utilization of land, urban development and construction. Better land use involves preservation of useful, natural areas and ensures health balance amidst constructed and natural environments. Better urban planning entail proficient means of transportation and effective systems of infrastructure – constructed to reduce consumption, garbage and affluence during utilization. Eff icient towns, municipalities and structures, are long lasting, appealing and flexible to other future uses, effective in resource use (energy and raw materials such as recycling after use), and well suited to environmental, human and society needs. Sustainable arch

The Effects of Cigarettes Smoking on Low Birth Weights of Infants Term Paper

The Effects of Cigarettes Smoking on Low Birth Weights of Infants - Term Paper Example These pregnancy outcomes are known to be associated with infant mortality (Kochanek & Martin, 2005). Hypothesis In this observational study it has been hypothesized that women who are smokers, on average, will give birth to infants with birth weight less than 2500 grams than those who are non-smokers Cigarette Smoking in the United States The prevalence of smoking in the adult U.S. population in 1965 was 42.4% (51.9% of men in the U.S. and 33.9% of women) (Giovino, 2002). More men than women continue to smoke (25.1% of men and 21.2% of women), however the decline in women smoking is at a far slower rate than that observed in men. The gap in the rate of smoking between men and women has diminished from almost 20% in 1965 to less than 5% in 1997 (MMWR, 1999). In spite of numerous reports since the mid 1960s about smoking and health risks (U.S. Surgeon General, 2001), a Department of Health and Human Services report released stated that 23% of the U.S. adult population smoked cigarettes between 1999 and 2001 (DHHS, 2004). Ebrahim, Floyd, Merritt, Decoufle, and Holtzman (2000), using data from the National Behavioral Risk Factor Surveillance Survey (BRFSS) of 187,302 non-institutionalized women aged 18-44, found that the prevalence of current smoking decreased significantly among both non-pregnant women (26.7% to 23.6% and pregnant women (16.3% to 11.8%) between 1987 and 1996. A 1999 report stated that 21 % of all U.S. women and 12.3 % of pregnant women in the U.S. reported smoking during pregnancy (Mathews, 2001). The Effects of Cigarette Smoking on Reproductive Outcomes Cigarette smoking has been known for decades to be related to poor reproductive outcomes (Annette, 2008). Cigarette smoking during pregnancy is associated with first trimester spontaneous abortion, ectopic pregnancy, preterm birth, placenta previa and abruption, low birth weight, restricted intrauterine lung growth, and sudden unexplained infant death (Hofhuis, de Jongste, & Merkus, 2003). Further , cigarette smoking has been associated with fetal loss, respiratory distress syndrome and other respiratory conditions of the newborn, and sudden infant death syndrome (Schoendorf & Kiely, 1992). In addition, it is estimated that 17 to 26% of low birth weight infants, 7 to 10% of preterm deliveries, and 5-6% of prenatal deaths could be prevented if pregnant women did not smoke (Husten, Chrismon, & Reddy, 1996). In terms of birth defects, one study, using the 345 cases of infants with clubfoot and the 3,029 controls of the Atlanta Birth Defects Case Control Study database, Honein, Paulozzi, and Moore (2000) identified an approximate 20- fold increased risk for clubfoot to occur in infants born to women who had a family history of clubfoot and who also smoked cigarettes (OR=20.30, 95%CI: 7.90, 52.17). This risk for clubfoot was much higher when both factors were considered together than the risk associated with either of these risk factors alone (OR=1.34, 95%CI: 1.04, 1.72 for cigare tte smoking alone; OR=6.52, 95%CI: 2.95, 14.41 for family history alone). There have been numerous studies published about the association of cigarette smoking in pregnancy and low birth weight. For example, a population-based Swedish study (n = 538,829) showed that smoking

Global Impact of Terrorism and Genocide Coursework

Global Impact of Terrorism and Genocide - Coursework Example The exploitation of fear within the global population, organizations and small social units helps to realize these terrorist goals. The September 11, 2001 attacks were a prominent example of terrorism in the 21st century. The incident involved a series of four separate, but well-coordinated terrorist invasions launched by the al-Qaeda on the New York City and the Washington, D.C. in the United States. The attacks impacted the Macro-system in the sense that the World Trade Centre was closed, and the economic system of Lower Manhattan nearly ground to a halt. Cancellations of international flights and business relations between the world and the two American cities had a substantial effect on the world markets. The Wall Street was also closed for nearly one week, and the civilian airspace three days in United States and Canada. In the Meso-system, different organizations such as churches, schools, and businesses suspended their operations and evacuated in the aftermath of the attack. At the individual and group level or microsystem, people were gripped with fear of a repeat of the attacks that had claimed about 3000 civilian lives. As Schlenger (582) has established, those who lost their loved ones, property or good physical health, have been enduring serious psychological disorders for more than 12 years now. America, Canada, their European allies and the whole world in general have since changed their security policies to eradicate cases of terrorism since then. Pham, P.N., H.M. Weinstein, and T. Longman. "Trauma and PTSD Symptoms in Rwanda: Implications for Attitudes Toward Justice and Reconciliation." Journal of the American Medical Association, 292.5 (2004):

Article Public Opinion of Police by Different Ethnic Group Essay Example for Free

Article Public Opinion of Police by Different Ethnic Group Essay Down though the years there has always been tension and an on and off relationship between the community they serve and law enforcement agencies. And as with any relationship between two people there are misunderstanding, break-up and disagreements and the same is with the relationship between the community and its law enforcement agencies but just with any relationship at day’s end both the community and law enforcement have and share common concerns such as justice and deterrence. With many of communities in America being incursion of immigrants within the last few decades; with this incursion of immigrants many communities are being bombard with so many new language and cultures diversity. Because of this wide range of ethnicity now living within many the walls of our communities and society on a whole now have different opinions and views of law enforcement. Now due to the various ethnicities flooding our communities the author will investigate how a few of these ethnicity groups like: African Americans, Asians and the Hispanics neighborhoods views racial profiling, discrimination and past experience with law enforcement agencies. Taking a look at the traumatized relationship and association between the two, as well as the interaction and reaction from the law enforcement agencies and the communities they serve. Since the conception of the law enforcement agencies race has long since been a vital playing card in policing. Even with the knowledge, awareness and understanding of this there has been some improvement but not enough. Racial opus of law enforcement alongside the racial outline of arrest, the raise in the number of arrest of non- minority like â€Å"Caucasian† by non-white law enforcement officers, while there were lower numbers of arrest by the same officers on other ethnic groups. On the flip side of that coin, more. â€Å"Caucasian† officers had a boost in the number of non-white arrest in comparison to the number of arrest involving â€Å"Caucasians†. Race has been a polarizingelement the in the society of America for years. And this is every so prevalent within the criminal justice system. Clashes involving both the communities and law enforcement are the flashpoint for practically every current inner- city riot. Ethnic Groups The raise of culture variety and immigration has from time to time made interaction with law enforcement difficult. Hispanics and Asian neighborhoods are often apprehensive of law enforcement officers due to their past occurrence. Their past incidents vary from their motherland of origin that was overwhelmed by civil unrest and war. This included exploitation of power by those of authority as well as much dishonesty within law enforcement agencies of that country. For this cause many minorities groups have a apprehension and more often than not an aversion to law enforcement officers. Like within the Hispanic neighborhoods, they often feel that law enforcement agents differentiates them by racial profiling them all because of their nationality. In Arizona this is a very contentious SB 1070 unlawful migration bill that passed given law enforcement agents the power and authority to inquire of certain individual (Hispanic) of proof of documentation of legal right to be in America. This law is being adopted in other states as well like New Jersey and Texas, any where there is a high population of Hispanics. IthasbeenreportedbytwoethnicgroupsAfricanAmericansandHispanic/Latinos affirm subordinate levels of agreement concerning their relationship with police officers as compared to those of their counterpart â€Å"Caucasians†. African Americans and Hispanic/Latinos claims that there is less willingness to obey and to follow orders given by authorities especially of Caucasian origin. Racial profiling has consistently been one of the most confounding, divisive and controversial issues the police department confronts. A perception that police target members of specific ethnic or racial groups creates a deep divide between the police and the communities we serve. But as an officer who has spent a lot of time patrolling the citys streets, I just dont think the perception is accurate. (Dutta, 2010) True racial profiling, in which people are targeted solely because of race or ethnicity, is both illegal and immoral. It destroys public trust and reduces the effectiveness of the police. There is no place for it in law enforcement. And I firmly believe that most LAPD officers support that viewpoint. Even the reported statement of the officer that he couldnt do his job without racial profiling was most likely misinterpreted. (Dutta, 2010) Differentiation between minorities and Caucasians is how they relate and response to law enforcement agents and how fairly or unjustly he or she feels their treatment was. This is a how many African Americans and Hispanic/Latinos responded when asked by authorities regarding their relationship with law enforcement agencies this is less equality than when Caucasians reported.

Working with families is difficult and complex. Essay -- Social Issues

Working with children, young people and their families can be seen as difficult and complex for many different reasons. However, before these topics can be discussed and explored fully, it is important to completely understand the difference between the words ‘difficult’ and ‘complex’. ‘Difficult’ implies that things are not easily or readily done, where it requires much effort much effort, labour and skill to be performed effectively. In the same way, ‘complex’ implies a hard to deal with situation, but also involves many interconnected parts or complicated arrangements that consist of emotional attachment. Social work is rarely working with one individual, as stated in O’Loughlin and O’Loughlin (2008); it will involve working with the whole family which is constantly changing making it complex and diverse. It may consist of parents or carers who share the same race, class, culture, or sexuality, but alternatively it may not. Members within the family help to determine our behaviour, roles, rules and stereotyping. To add to this, people are constantly entering and leaving the family system either by marriage, divorce or death. These complexities are shown in ecomaps or genograms. It is important to understand that the child’s welfare is paramount, but in order to achieve positive outcomes for the child, effective work will need to be done within the family. Relationships within a family are known as a system with the family being viewed as a whole, rather than as many individuals. Within family relationships, everyone seeks to uphold the equilibrium so if one member seeks to change, the others seek to resist. However, difficulties include maintaining good relationships and knowing boundaries between professional and personal... ...children, young people and their families can be both complex and difficult. Social work practice is one of the most challenging as it involves work with a diverse range of both professionals and service users. However, there is more that one single reason for this. As all professionals, agencies and parents continue to work together in various different cases, a variety of skills are required including: communication, preparation, intervention skills, assessment of significant harm, research of current legislation and decision making skills, all of which contribute to the complexities and difficulties of social work. It could be argued that these difficulties are highlighted most in many public cases of child abuse; moreover these cases can be seen to be changing social work practice, affecting the difficulties and complexities of working within this profession.

South-Western Federal Taxation: Comprehensive Volume

CHAPTER 21 PARTNERSHIPS SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic | |Edition |Edition | | | | | | | | | | | | LO 1Partnership definitionNew 2LO 2General partnership versus LLCNew 3LO 1Check-the-box regulationsNew 4LO 2Partnership tax reportingModified1 5LO 2Analysis of Income scheduleModified1 6LO 2Partnership Schedule M-3New 7LO 3Special allocationsNew 8LO 3Capital accountsNew 9LO 3Inside versus outside basisNew 10LO 4Comparison of corporate and partnershipUnchanged2 treatment 11LO 4Application of  § 721New 12LO 4Exceptions to  § 721New 13LO 4Disguised sale issue recognitionUnchanged4 14LO 5Initial costs of a partnershipNew 15LO 6Cash accounting method for partnershipsNew 16LO 7Economic effect testUnchanged8 7LO 8Adjustments to partner’s basisUnchanged9 18LO 8Liability allocations to basisUnchanged10 19LO 10Guaranteed paymentsNew 20LO 8, 9, 14Partnership advantages and disadvantagesUn changed12 21LO 4, 6, 7,Partnership formation and operationsUnchanged13 8, 9, 10issues 22LO 11Basis in distributed propertyUnchanged14 23LO 11Distribution ordering rules; liquidatingNew versus nonliquidating distributions 24LO 11Conceptual: tax results of distributionsNew 25LO 12Ramifications of sale of a partnership interestNew Instructor: For difficulty, timing, and assessment information about each item, see p. 1-4. | | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic | |Edition |Edition | | | | | | | | | | | | 6LO 4Formation of partnership; inside and basisUnchanged15 27LO 4, 14Formation of partnership; inside and outsideUnchanged16 outside basis 28LO 4Contribution of various properties onUnchanged17 formation of a partnership; basis and depreciation 29LO 4Formation of a partnershipNew 30LO 4Formation of a partnershipNew 31LO 4, 8, 14Basis of property received as gift; receipt Modified19 of interest for services 32LO 8, 14Planning fo r service interestsNw 33LO 4, 10, 14Disguised sale versus distributionUnchanged20 *34LO 4, 7Treatment of contributed propertyNew 5LO 5Tax issues related to formation ofUnchanged5 partnership 36LO 4, 5, 6,Preparation of initial LLC tax returnUnchanged6 37LO 6Accounting methodsUnchanged7 *38LO 5Definition of organization costs;Unchanged21 amortization of organization costs *39LO 6Computation of partnership’s required taxUnchanged24 year under the least aggregate deferral method 40LO 4, 7Date basis of partner’s interest; gain on saleUnchanged25 of contributed land with precontribution built-in gain 41LO 7Date basis of partner’s interest; loss on saleUnchanged26 of contributed land *42LO 7, 8Computation of partner’s outside basis atModified27 beginning and end of year when several transactions took place *43LO 7, 8Partnership income; partner’s basis;Modified28 separately stated items; guaranteed payments 44LO 7, 8, Partnership income; partner’s basis; lossModified29 10,limitations; guaranteed payments 45LO 4, 7, 8Partnership’s income and separately statedUnchanged30 items; partner’s basis and amount at risk 6LO 4, 7, 8Same as Problem 45 for an LLCModified31 47LO 7, 8, 9,Basis and loss limitationsUnchanged32 *48LO 4, 7, 8,Allocations under  § 704(b)Modified33 9 49LO 7, 8, 9Allocation of gain under  § 704(b)Modified33 50LO 7, 8, 9Allocations to partner; basis in interest; Unchanged34 loss limitations 51LO 8Allocation of recourse debtUnchanged35 52LO 4, 8Sharing recourse debt for basis purposesUnchanged36 Instructor: For difficulty, timing, and assessment information about each item, see p. 21-4. | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic | |Edition |Edition | | | | | | | | | | | | 3LO 8, 9, 14Basis calculations and loss limitationsUnchanged11 54LO 8, 9Loss disallowance under  § 704(d),  § 465,Unchanged37 and  § 469 55LO 7, 10Timing of recognition of guaranteedModified38 payments 56LO 10Timing of recognition of guaranteed New payments, continued *57LO 7, 10Comparison of C corporation salary versus Unchanged39 partnership guaranteed payment 58LO 10Disallowed  § 267 loss from sale of propertyUnchanged40 to partnership by partner; conversion f capital gain to ordinary income from sale of investment property to partnership by partner 59LO 11Nonliquidating distribution; basis of New assets distributed (limited); partner’s outside basis 60LO 11Nonliquidating distribution; basis of New assets distributed (limited); partner’s outside basis *61LO 11Nonliquidating distributions; amount andModified43 nature of gain or loss; basis of assets distributed; partner’s outside basis *62LO 11Allocation of basis to multiple assetsUnchanged44 distributed 3LO 11Effect of change in partner’s share of New liabilities; nonliquidating versus liquidating distributions 64LO 11Results of various liquidating distributionsUnch anged45 65LO 12Sale of partnership interest; amount andModified46 nature of gain or loss; basis of new partner’s interest; election to adjust basis of partnership property *The solution to this problem is available on a transparency master. Instructor: For difficulty, timing, and assessment information about each item, see p. 21-4. | | | |Status: | |Q/P | | Research | | | |Present | |In Prior | |Problem | |Topic | |Edition | |Edition | | | | | | | | | 1Economic effect allocationsUnchanged1 2Allocation of liabilitiesNew Internet activityUnchanged3 | | |Est'd | |Assessment Information | | |Question/ | |completion |AICPA* | AACSB* | |Problem |Difficulty |time |Core Comp | Core Comp | | | | | | | | | | 2 |Easy | |10 |FN-Reporting |Analytic | | 3 | |Easy | |10 |FN-Reporting |Analytic | | 4 | |Easy | |10 |FN-Reporting |Analytic | | 5 | |Medium | |10 |FN-Reporting |Analytic | | 6 | |Medium | |10 |FN-Reporting |Analytic | | 7 | |Easy | |10 |FN-Reporting |Analytic | | 8 | |Medium | | 10 |FN-Reporting |Analytic | | 9 | |Easy | |10 |FN-Reporting |Analytic | | 10 | |Medium | |10 |FN-Reporting |Analytic | | 11 | |Easy | |10 |FN-Reporting |Analytic | | 12 | |Medium | |10 |FN-Reporting |Analytic | | 13 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 14 | |Medium | |10 |FN-Reporting |Analytic | Reflective Thinking | | 15 | |Medium | |10 |FN-Reporting |Analytic | | 16 | |Easy | |10 |FN-Reporting |Analytic | | 17 | |Easy | |10 |FN-Measurement |Analytic | | 18 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 19 | |Easy | |10 |FN-Reporting Analytic | | 20 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 21 | |Medium | |15 |FN-Reporting |Analytic | | 22 | |Easy | |10 |FN-Measurement | FN-Reporting |Analytic | | 23 | |Easy | | 5 |FN-Measurement | FN-Reporting |Analytic | | 24 | |Easy | | 5 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 25 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 26 | |Easy | |10 |FN-Measurement | FN-Reporting |Analytic | | 27 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 28 | |Easy | |10 |FN-Measurement | FN-Reporting |Analytic | | 29 | |Easy | |10 |FN-Measurement | FN-Reporting |Analytic | | 30 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 31 | |Hard | |15 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | | |*Instructor: See the Introduction to this supplement for a discussion of using AICPA and AACSB core competencies in assessment. | | 32 | |Medium | |10 |FN-Reporting |Analytic | Reflective Thinking | | 33 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 34 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 35 | |Medium | |10 |FN-Measurement | FN-Reporting Analytic | Reflective Thinking | | 36 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 37 | |Medium | |10 |FN-Repo rting |Analytic | | 38 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 39 | |Medium | |10 |FN-Reporting |Analytic | | 40 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 41 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 42 | |Medium | |20 |FN-Measurement | FN-Reporting |Analytic | | 43 | |Hard | |15 |FN-Measurement | FN-Reporting |Analytic | | 44 | |Hard | |15 |FN-Measurement | FN-Reporting |Analytic | | 45 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 46 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 47 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 48 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 49 | |Hard | |10 |FN-Measurement FN-Reporting |Analytic | | 50 | |Hard | |15 |FN-Measurement | FN-Reporting |Communication | Analytic | | 51 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 52 | |Hard | |15 |FN-Measurement | FN-Reporting |Communication | Analy tic | | 53 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | Reflective Thinking | | 54 | |Hard | |15 |FN-Measurement | FN-Reporting |Communication | Analytic | | 55 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | | |*Instructor: See the Introduction to this supplement for a discussion of using AICPA and AACSB core competencies in assessment. | 56 | |Medium | |10 |FN-Reporting |Analytic | | 57 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 58 | |Easy | |10 |FN-Measurement | FN-Reporting |Analytic | | 59 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 60 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 61 | |Medi m | |10 |FN-Measurement | FN-Reporting |Analytic | | 62 | |Medium | |10 |FN-Measurement | FN-Reporting |Analytic | | 63 | |Medium | | 5 |FN-Measurement | FN-Reporting |Analytic | | 64 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | 65 | |Medium | |15 |FN-Measurement | FN-Reporting |Analytic | | | |*I nstructor: See the Introduction to this supplement for a discussion of using AICPA and AACSB core competencies in assessment. | CHECK FIGURES 26. a. $0; $0. 26. b. $200,000. 26. c. $100,000. 26. d. $100,000 basis in property. 27. a. ($15,000) realized; $0 recognized. 27. b. $60,000. 27. c. $75,000. 27. d. $75,000. 27. e. Sell and contribute cash. 28. a. $20,000 on land; $60,000 on equipment. 28. b. No gain under  § 721. 28. c. Carol $70,000; Connie $30,000. 28. d. $40,000 basis in land; $30,000 basis in equipment. 28. e. Inside = Outside = $100,000. 28. f. Partnership continues Connie’s depreciation schedule. 29.No gain or loss to Justin, Tiffany, or partnership; Justin’s basis $85,000; Tiffany’s basis $125,000; partnership’s basis in land $65,000; partnership steps into Tiffany’s shoes for depreciation. 30. Tiffany recognizes $25,000 loss on sale; basis is $100,000. Partnership must spend additional $10,000 to acquire assets. 31. a. $0. 31. b. $ 50,000. 31. c. $25,000 ordinary income. 31. d. $75,000. 32. b. Contribute ‘‘property’’ of ‘‘permits’’ and ‘‘development plan’’ completed before contribution. 33. a. Distribution. 33. b. $0 gain or loss. 33. c. $50,000. 33. d. Disguised sale. 33. e. $16,667. 33. f. $66,667. 34. a. Rachel $360,000; Barry $600,000. 34. b. 170,000 ordinary income. 34. c. $100,000 capital loss and $20,000 ordinary loss. 35. Organization costs $10,000 (deducted); start-up costs $60,000 (amortized over 180 months); property acquisition costs $24,000 (added to property basis; depreciated as newly acquired asset); syndication costs $1 million (nondeductible). 36. Issues include partnership year end; partnership accounting method; treatment of initial costs; partners’ bases in LLC interests; LLC’s basis in property received on formation; interests issued in exchange for services; built-in gain on later sale of land. 37 . BR can use cash, accrual, or hybrid method in 2008, 2009, and 2010.In 2011 and later years, BR may no longer use cash method. 38. a. Organizational costs: $8,000; syndication costs $10,000. 38. b. $5,000 deduction plus $50 amortization of organization costs. 38. c. 180-month amortization. 39. January 31. 40. a. $75,000. 40. b. Five years. 40. c. $15,000 gain. 41. a. $36,000 loss; $30,000 to Reece and remaining $6,000 allocated equally among partners. 42. a. $160,000. 42. b. $230,000. 43. a. $42,000; qualified dividends $4,000. 43. b. $29,000 basis. 43. c. $22,000 basis. 44. a. ($18,000); qualified dividends $4,000. 44. b. $0 basis; $8,000 loss deductible currently, $1,000 suspended. 44. c. $0 basis; $1,000 loss allowed; $8,000 suspended. 45. a. 175,000 (Celeste); $125,000 (Ernestine). 45. b. Ordinary income $80,000; qualifying dividend $3,000; tax-exempt interest $1,000; charitable contribution $500; distribution to Celeste $20,000. 45. c. $283,500 basis and at-risk amount. 46. a. Accounts payable are nonrecourse for LLC. 46. b. $283,500 basis; $233,500 amount at risk. 47. a. $24,000. 47. b. $4,000. 47. c. $0. 47. d. $4,000. 47. e. Don can contribute capital or partnership can incur debt. 48. a. Year 1—Fred $49,600; Manuel $78,400. Year 2—Fred $960; Manuel $75,840. 48. b. Yes. 49. a. Gain $43,200 allocated equally. Basis—Fred $22,560, Manuel $97,440. 49. b. Fred’s cash $22,560; Manuel’s cash $97,440. 49. c.Tax savings now or cash later; not both. 50. Deduct $54,000 of loss unless basis increased before year-end. 51. Melinda $6,000; Gabe $6,000; Pat $18,000. 52. Paul $160,000; Anna $80,000. 53. a. Basis adjustment rules per Figure 21. 3; then loss limitation rules [ § 704(d),  §Ã‚  465, then  § 469]. 53. b. $5,000 gain, $0 basis. 53. c. No loss deduction. 53. d. Make distribution next year so Brad can deduct loss this year. Partnership can incur additional debt. 54. $48,000 deducted. $14,000 suspended— § 704(d ); $8,000 suspended— § 469. 55. a. $70,000 in 2010, incl. guaranteed payment. 55. b. $25,000 in 2010. 56. $70,000. 57. a. $55,000 salary in 2010. 57. b. 0 in 2010; $40,000 partnership income and $60,000 guaranteed payment in 2011. 58. a. $0. 58. b. $10,000. 58. c. $80,000 gain; may be ordinary. 59. a. $0. 59. b. $0. 59. c. Inventory $60,000; land $75,000; partnership interest $185,000. 60. a. $0. 60. b. $0. 60. c. Account receivable $0; land $20,000; partnership interest $0. 61. a. $15,000 gain and basis in partnership interest $0; partnership $0 gain. 61. b. Land $30,000 basis and basis in partnership $10,000; partnership $0 gain. 61. c. No gain or loss; land basis $12,000; basis in partnership interest $0. 61. d. $10,000 gain; $0 basis in inventory; $0 basis in partnership interest. 62. a. No gain or loss. 62. b. 6,000 in item 1 and $3,000 in item 2. 63. a. Inventory basis $10,000; basis in partnership interest $20,000. 63. b. Recognized loss $20,000; Inventory basis $10, 000. 64. a. $15,000 capital gain. 64. b. No gain or loss; $40,000 basis. 64. c. No gain or loss; inventory $10,000; capital asset $22,000. 64. d. $0 basis in accounts receivable; $60,000 capital loss. 65. a. $100,000 realized. 65. b. $30,000 ordinary income. 65. c. $20,000 capital gain. 65. d. $100,000 basis. DISCUSSION QUESTIONS 1. A partnership is an association of two or more persons (including individuals, trusts, estates, corporations, other partnerships, etc. ) formed to carry on a trade or business.Each partner contributes money, property, labor or skill, and each expects to share in profits and losses. The entity must not otherwise be classified as a corporation, trust, or estate. p. 21-3 2. In a general partnership, all partners are â€Å"general partners† who are jointly and severally liable for partnership debts, including liabilities arising from tort or malpractice judgments against the general partnership. A general partner bears liability for these debts even i f the partner was not personally involved in the malpractice. A limited liability company has the corporate attribute of limited liability for the owners (called â€Å"members† in an LLC), but an LLC is treated as a partnership for tax purposes.In a properly-structured LLC, none of the members are personally liable for entity debts. State law governs the types of entities that may be established as LLCs. Most states permit capital-intensive entities to use this form of business, but they do not permit personal-service entities to be treated as LLCs. pp. 21-3 and 21-4 3. By default, a newly-formed noncorporate entity with two more owners is treated as a partnership under the check-the-box Regulations. The entity may â€Å"check-the-box† on Form 8832 to elect, instead, to be taxed as a corporation. p. 21-4 4. A partnership is not a tax-paying entity; however, it must still file a tax return.The partnership reports its income and expenses on Form 1065. Partnership income is comprised of income from operations and separately stated income and expenses. The income and expenses from operating activities are reported on Page 1 of the Form 1065. A separately stated item is any item (income or expense) that could differently affect the tax liabilities of different partners. Separately stated items are reported in the partnership return on Schedule  K. The partners must pay the tax on the partnership income. The partnership’s income and separately stated items are reported to each partner on a Schedule K-1 prepared for that partner. pp. 21-4 to 21-7 5.Because it is not a tax-paying entity, a partnership does not report â€Å"taxable income. † However, it must still reconcile between the tax return and the books. The partnership prepares the Analysis of Net Income (Loss) (page 5 of Form 1065) to determine what might be called the partnership’s â€Å"taxable income equivalent. † Certain amounts shown on Schedule K are netted and entered on the Net Income (loss) line of this Analysis. This â€Å"taxable income equivalent† is reconciled to book income on Schedule M-1 or Schedule M-3 of the partnership’s return. This is similar to the corporate reconciliation (also on Schedule M-1 or M-3) in Form 1120; however, for a partnership, the â€Å"taxable† amount must be derived as described above. pp. 1-5 to 21-7 6. Schedule M-3 is filed (in lieu of Schedule M-1) by â€Å"larger† partnerships to report a detailed reconciliation between the partnership’s book and tax income. In addition, these partnerships must file Schedule C to answer various questions regarding the partnership’s changes of ownership, reporting, or other activities during the year. This reconciliation is designed to highlight differences between GAAP basis reporting (per an SEC filing or an audited financial statement) and tax basis income. A partnership is generally required to file Schedule M-3 if it has $10 million or more in assets or $35 million or more in total receipts.In addition, it must file Schedule M-3 if any partner owns a 50%-or-greater interest in partnership profits, losses, or capital, and if that partner meets either the $10 million (assets) or $35 million (receipts) threshold. pp. 21-6 and 21-7 7. A special allocation is an amount that is allocated differently from the general profit or loss sharing ratios specified in the partnership agreement. For pre-contribution gain or loss property, special allocations are required to be made to eventually bring the partners’ tax bases in line with their book-value capital accounts. Orange, LLC, can offer a preferential special allocation of profits and cash flows to Green to compensate the company for use of its capital.The LLC can offer a guaranteed payment (rather than a special allocation) to Rose for her managerial time and expertise. Upon sale of the appreciated property contributed by Rose,  §Ã‚  704(c) require s the precontribution gain to be allocated to her. pp. 21-8, 21-24, and 21-36 8. A partner’s capital account is a mechanical determination of the partner’s financial interest in the partnership, as determined using one of several possible accounting methods, including tax basis, GAAP,  §Ã‚  704(b) book basis, or some other method defined by the partnership. The capital account reflects contributions and distributions of cash or other property to or from the partner.In addition, it accumulates the partner’s share of increases and decreases from operations, including amounts that are otherwise tax-exempt or nondeductible. Even if capital accounts are determined on a tax basis, a partner’s capital account usually will differ from the partner’s basis in the partnership interest because (among other reasons) the capital account does not include the partner’s share of partnership liabilities. p. 21-8 9. The â€Å"inside basis† is the part nership’s tax basis for the assets it owns. The â€Å"outside basis† is a given partner’s tax basis in the partnership interest. On formation of a partnership, the total of all partners’ outside bases will equal the partnership’s inside bases of all of its assets. p. 21-8 10.As a general rule, both  §Ã‚ §Ã‚  721 and 351 provide that no gain or loss is recognized when property is transferred on the formation of a partnership or corporation. However,  §Ã‚  351 applies only if those persons transferring property to a corporation are in control of the corporation immediately after the exchange, whereas  §Ã‚  721 does not include a control requirement. Section 721 not only applies to initial transfers in forming the partnership but to all subsequent contributions from any partner. Similarities exist between  §Ã‚ §Ã‚  721 and 351 in that these nonrecognition provisions do not apply to all transfers made by the owners. Under  §Ã‚  721, the contr ibutor must receive an interest in the partnership, while under  §Ã‚  351, the transferor must receive stock in the corporation.Under both  §Ã‚ §Ã‚  721 and 351, if the transfer of property involves the receipt of money or other consideration, the transaction may be deemed a sale or exchange rather than a tax-free transfer. pp. 21-9 to 21-11, and Concept Summary 21. 1 11. In general, on formation of a partnership, no gain or loss will be recognized by either the partnership or the contributing partners [ §Ã‚  721]. Bobbi will not recognize the realized gain related to the land she is contributing. Similarly, BC will not recognize a gain or loss. Bobbi’s basis in the land will carry over to BC. Bobbi’s basis in BC will be a substituted basis equal to her basis in the contributed land. If the land Bobbi contributes is ever sold by BC, the precontribution gain must be allocated to Bobbi [ §Ã‚  704(c)]. pp. 21-9, 21-10, and Example 24 12.Under the general rule of à ‚ §Ã‚  721(a), no gain or loss is recognized on formation of a partnership. This rule does not apply in at least four situations. Realized gain or loss is recognized if: †¢ The entity is an investment partnership, †¢ The partner received the interest in the partnership in exchange for services, †¢ The transaction can be viewed as an exchange of properties (e. g. , properties are contributed to the partnership and soon thereafter are distributed to other partners with the intent of taking advantage of the basis rules of  §Ã‚  731 for distributed property), and †¢ The transaction can be viewed as a disguised sale of the property from the partner to the partnership or one of the other partners. pp. 21-10 to 21-11 13. a.If a contribution of property to a partnership is followed shortly thereafter by a distribution of cash to that partner, the IRS may recharacterize the transactions as a disguised sale of the property. In this case, Gerald would be treated as contri buting 75% of the property and selling the remaining 25% for cash [$60,000 sales price (distribution amount) ? $240,000 property value]. He would recognize $30,000 of gain on the deemed disguised sale [$60,000 deemed selling price less $30,000 basis ($120,000 ? 25%)]. b. The parties could use any of several techniques to minimize the possibility that the IRS will recharacterize the transaction as a sale. First, the distribution could be proportionate to all the partners. Second, the contribution should not be contingent on the later distribution of cash.Third, even if cash is required to ensure the contribution, the distribution should not be contingent on the partnership achieving a certain level of profits. Fourth, the distribution could be made in stages over a longer (say, three-year) time period. Here, it may be viewed as being a reasonable return of Gerald’s capital (e. g. , each $20,000 payment represents a 10% return on his capital). Finally, the distribution could be deferred until two years following the capital contribution. pp. 21-11, 21-12, and Example 12 14. In its initial year, a partnership will typically incur organizational and startup expenses. If property is contributed to the partnership, the entity may incur costs related to transferring the title of the property.If the partnership interests are sold to investors, the partnership might incur syndication costs. Once the partnership has started business, it will incur ordinary and necessary business expenses; these expenses are deductible under  §Ã‚  162. Organizational and startup costs are generally deductible to the extent of the first $5,000 of such costs. This deductible amount is reduced to the extent the total of such costs (in the respective category) exceeds $50,000. Any portion that is not deductible is amortized over 180 months, beginning with the month in which the partnership begins business. The cost of selling the partnership interests to investors is treated as a sy ndication cost under  §Ã‚  709. Such expenses are not deductible.The cost of transferring title to an asset is treated as an acquisition cost related to the asset; this amount will be treated as a new asset placed in service when incurred, and it will be depreciated using the same method and life as the underlying property. (If this underlying property was contributed by a partner, that property will be depreciated by continuing the depreciation schedule used by the contributing partner. The partnership â€Å"steps into the shoes† of the contributing partner in calculating depreciation deductions. ) pp. 21-15 and 21-16 15. A partnership may generally use the cash method of accounting unless it is a tax shelter or has one or more partners that are subchapter C corporations.The C corporation partner will not preclude use of the cash method of accounting if that corporation is a qualified personal service corporation or if it is engaged in the farming business. In addition, a subchapter C corporate partner will not preclude use of the cash method if the partnership has never had â€Å"average annual gross receipts† in excess of $5 million, for any year beginning in 1986 or later years. Average annual gross receipts is calculated by averaging the taxpayer’s gross receipts for the three years prior to the tax year in question or for the period of the taxpayer’s existence, if shorter. p. 21-17 16. The three rules of the economic effect test are designed to ensure that a partner bears the economic burden of a loss or deduction allocation and receives the economic benefit of an income or gain allocation.By increasing the partner’s capital account by the gain or income allocated to the partner, the rule ensures that a positive capital account partner will receive an allocation of assets equal to the balance in the partner’s capital account when the partner’s interest is eventually liquidated. If the partner has a negat ive capital account, an allocation of gain or income to the partner reduces the amount of the negative capital account and, therefore, the amount of the deficit capital contribution that is required from the partner upon liquidation. In short, a dollar of income or gain increases the partner’s capital account by a dollar and, everything being equal, the partner should receive a dollar more upon liquidation (or contribute a dollar less to restore a deficit in the capital account). Allocations of losses and deductions affect the partner in the opposite manner as income or gain.Therefore, the allocation of a dollar of loss or deduction reduces the partner’s capital account by a dollar and, everything being equal, reduces the amount the partner will receive upon liquidation (or increases by a dollar the partner’s deficit capital restoration requirement). p. 21-23 and Example 22 17. Under  § 722, a partner’s initial basis is determined by reference to the am ount of money and the basis of other property contributed to the partnership. This basis is increased by any gain recognized under  § 721(b) and the partner’s share of any partnership liabilities. Basis is decreased by any partner liabilities assumed by the partnership.Basis is also adjusted to reflect the effect of partnership operations: it is increased by the partner’s share of taxable and nontaxable income and is decreased by the partner’s share of loss and nondeductible/noncapitalizable expenses. Certain adjustments for depletion are also made. Finally, a partner’s basis is increased by additional contributions to the partnership and by increases in the partner’s share of partnership debt. Basis is decreased by distributions from the partnership and decreases in the partner’s share of partnership debt. A partner’s basis is adjusted any time it may be necessary to determine the basis for the partnership interest, for example, wh en a distribution was made during the taxable year, or at the end of a year in which a loss arises. A partner’s basis may never be reduced below zero (i. e. , no negative basis). Figure 21. 3 18.The partnership’s debts are allocated to the partners in determining the partners’ bases in their partnership interests. Any increase in partnership liabilities is treated as a cash contribution to the partnership, thereby increasing the partners’ bases. Any decrease in partnership liabilities is treated as a distribution from the partnership to the partners and decreases their bases. Partnership debt is allocated differently depending on whether it is recourse to the partners or nonrecourse. Recourse debt is allocated in accordance with the constructive liquidation scenario. Under this test, all partnership assets are deemed to be worthless.The losses that would arise are allocated to the partners according to the partnership agreement. The losses would create ne gative capital accounts for at least some of the partners; those partners are deemed to contribute that amount of cash (equal to the negative capital balance) to the partnership in settlement of the obligation to repay partnership’s recourse liabilities. The amount of that deemed capital contribution is the amount of the partner’s share of the recourse liabilities. Nonrecourse debt is allocated in a three-tier system. First, allocate any gain related to assets where the debt exceeds the partnership’s â€Å"book† basis in the assets. This is called minimum gain and is allocated according to the partnership agreement.Next, any debt related to any remaining precontribution gain is allocated to the partner who contributed the encumbered property to the partnership. Finally, any remaining debt is allocated in accordance with the method specified in the partnership agreement. pp. 21-28 and 21-29 19. A guaranteed payment is an amount paid to a partner for the pe rformance of services or for the use of the partner’s capital. These payments are in the nature of salary or interest payments that are made by other entities, but the tax treatment of guaranteed payments is somewhat different. Like payments made by other entities, guaranteed payments are generally deductible by the partnership, and can result in a loss to the entity. Guaranteed payments are taxed as ordinary income to the recipient partner.Unlike salary and interest payments made by other entities, guaranteed payments are treated as if they were received by the partner on the last day of the partnership’s tax year. If the partner and partnership have different tax years, there will be a deferral between the time the partnership claims the deduction and the time the partner reports the income. Guaranteed payments are treated as self-employment income by the recipient partner. pp. 21-36 and 21-37 20. A partnership is advantageous under any of the following conditions: à ¢â‚¬ ¢ Special allocations of income, expenses, cash flows, etc. can be made by the entity owners. †¢ The entity has taxable losses which the owners can utilize on their individual tax returns. †¢ The partnership generates net passive income which offsets passive losses of the owners. The entity operated as a Subchapter C corporation and would be required to report taxable income since other means of reducing such income (e. g. , interest, rents, salaries to owners) have been maximized and are not available. †¢ The entity cannot qualify under the requirements for a Subchapter S election (e. g. , too many shareholders, nonqualifying shareholders, more than one outstanding class of stock, etc. ) †¢ The entity will exist for only a short period of time and, if a corporation, its liquidation will result in a large tax due to the appreciation in its assets. †¢ Several other advantages may exist. The disadvantages of the partnership entity form arise when: The ent ity income is significant and will be taxed at higher individual rates than if accumulated in the corporation. †¢ The entity is in a high risk business and the owners require protection from personal liability. An LLC or LLP may be useful in such situations. pp. 21-51, 21-52, and Concept Summary 21. 5 21. a. False. The entity is required to file an information return, generally by the fifteenth day of the fourth month after the end of the partnership’s tax year. The return includes data concerning the partners’ allocable shares of the financial activities of the partnership. In addition, property, sales, and employment tax returns are likely to be required of the entity. p. 21-6 b. False.Generally no gain or loss is recognized, but there are exceptions to  § 721, including those pertaining to the receipt of boot, the contribution of property with liabilities in excess of basis, and the receipt of a partnership interest in exchange for services provided to the pa rtnership. pp. 21-10 and 21-11 c. False. The partner recognizes ordinary income, to the extent of the fair market value of the partnership interest that is received in this manner. p. 21-11 d. False. If property which was inventory in the hands of the transferor partner is sold by the partnership within five years of the date it was contributed, any gain will be treated as ordinary income, regardless of the manner in which the property was held by the partnership. p. 21-13 e. False. The partnership chooses tax accounting periods and methods that are applied to all of the partners. p. 21-15 f. False.An alternative tax year will never be required by the IRS; instead, the partnership must request permission from the IRS and may have to illustrate to the IRS that it has a business purpose for using an alternative tax year. p. 21-19 g. True. Built-in losses, as well as gains, must be allocated to the contributing partner when recognized by the partnership. pp. 21-24 and 21-25 h. True. pp . 21-27 to 21-29 i. True. p. 21-33 j. False. Such losses can be deducted by partners who hold a 50% or less ownership interest in the entity. p. 21-38 22. Generally, a taxable gain arises on a proportionate distribution only when cash is received in excess of the distributee partner’s basis in the partnership interest. As a relief of liabilities is treated as a distribution of cash, a decrease in a partner’s share of liabilities may also trigger a taxable gain.Similarly, certain distributions of marketable securities are treated as distributions of cash and can result in gain recognition. Other transactions, such as disguised sales and distributions related to precontribution gain property, might also result in gain recognition by the distributee partner. pp. 21-41 and Examples 51, 52 and 57 23. In either a current or liquidating distribution, assets are distributed in the following order: 1)  cash, 2) ordinary-income producing (hot) assets, and 3) other assets. Cash . In either a current or liquidating distribution, a cash distribution in excess of the partner’s basis triggers a gain (typically a capital gain). Cash (and certain items treated as cash) is the only asset for which a distribution might trigger a gain. Hot assets.In either a current or liquidating distribution, the partner’s basis in distributed hot assets equals the lesser of the partner’s basis in the partnership interest (after any cash distributions) or the partnership’s basis in the hot asset. In a liquidating distribution, the partner can claim a loss equal to any basis remaining after these hot assets are distributed, if no â€Å"other assets† will be distributed. In a current distribution, no loss can be deducted. Other assets. In a current distribution, â€Å"other assets† are treated similarly to hot assets: the basis equals the lesser of the partner’s basis in the partnership interest (after any cash and hot asset distribu tions) or the partnership’s basis in the asset. In a liquidating distribution, â€Å"other assets† absorb any remaining basis in the partnership interest after cash and hot assets are accounted for.For either a current or liquidating distribution, if â€Å"other assets† are distributed, the partner cannot recognize a loss. Examples 54, 57, 59, and 60 24. The partnership distribution rules reflect the aggregate theory of taxation. With respect to property ownership, the partner can be seen as an extension of the partnership. Ownership of property by the partner generally produces the same result as ownership by the partnership (and vice versa). The result is a carryover basis in distributed property with a preservation of the character of distributed property. The distribution rules operate with the goal of deferring tax on the distribution, while preserving the ordinary income potential.No gain or loss is recognized if an adjustment can be made to the basis of t he distributed property, without reducing the amount of ordinary income the partner will eventually recognize. So, gain is recognized if cash distributions exceed basis, because there is no asset for which the basis can be reduced. The basis of hot assets can be decreased, but not increased, in a distribution because the inherent ordinary income cannot be decreased. Similarly, loss can be recognized if only cash and â€Å"hot† assets are received in a liquidating distribution, because the basis in these types of assets cannot be increased to absorb the partner’s remaining basis. pp. 21-40 and 21-41 25.Jody must determine her gain or loss on the sale of the partnership interest. If the partnership owns â€Å"hot assets,† she must recognize ordinary income or loss to the extent of her proportionate share of the built-in appreciation or depreciation on these assets. Her remaining gain or loss is adjusted by the ordinary income or loss recognized. If the partnership ’s assets are substantially appreciated, Bill may wish to ask the partnership to make a  § 754 election so he can be allocated a step-up in basis. If the partnership has a substantial built-in loss (assets are depreciated by more than $250,000), the partnership may be required to make a step-down adjustment with respect to Bill’s acquired interest.If Jody sells more than a 50% interest in the partnership, or Bill is the sole remaining member of a two-owner partnership, the entity will terminate on the date the purchase is finalized. This may result in a loss of a favorable tax year or accounting method by the partnership. pp. 21-47 to 21-49 PROBLEMS 26. a. Under  § 721, neither the partnership nor the partners recognizes any gain on formation of the entity. b. Chip will take a cash basis of $200,000 in his partnership interest. c. Marty will take a substituted basis of $100,000 in his partnership interest ($100,000 basis in the property contributed to the entity). d. The partnership will take a carryover basis in the assets it receives ($200,000 basis in cash, and $100,000 basis in property). Example 14 27. a. Liz has a realized loss of $15,000.However,  § 721 contains the general rule that no gain or loss is recognized to a partnership or any of its partners upon the contribution of money or other property in exchange for a capital interest. Since Liz is subject to this rule, she does not recognize the loss. p. 21-10 b. $60,000. Section 722 provides that the basis of a partner’s interest acquired by a contribution of property, including money, is the amount of such money and the adjusted basis of such property to the contributing partner at the time of the contribution. p. 21-12 c. $75,000, the adjusted basis of the contributed property ( § 722). p. 21-12 d. $75,000. Under  § 723, the basis of property to the entity is the adjusted basis of such property to the contributing partner at the time of the contribution, increased by a ny  §Ã‚  721(b) gain recognized by such partner.Since no such gain (and no loss) was recognized by Liz on the contribution, the partnership takes a carryover basis in the property. Example 14 e. A more efficient tax result may arise if Liz sells the property to an unrelated party for $60,000, recognizes the $15,000 loss on the property, and contributes $60,000 cash to the partnership. The partnership could then use the $60,000 to acquire similar property, in which it would take a $60,000 basis. Example 9 28. a. Carol realizes a gain of $20,000 on contribution of the land. Connie realizes a gain of $60,000 on contribution of the equipment. The partnership realizes a gain equal to the value of the property it receives (it has a $0 basis in the partnership interests it issues). b.Under  § 721, neither the partnership nor either of the partners recognizes any gain on formation of the entity. Example 8 c. Carol will take a substituted basis of $70,000 in her partnership interest ($30 ,000 cash plus $40,000 basis in land). Connie will take a substituted basis of $30,000 in her partnership interest ($30,000 basis in the equipment). Example 14 d. The partnership will take a carryover basis in all the assets it receives ($30,000 basis in cash, $40,000 basis in land, and $30,000 basis in equipment). p. 21-12 e. The partners’ outside bases in their partnership interests total $100,000: Carol’s basis of $70,000 plus Connie’s basis of $30,000.This is the same as the partnership’s basis in assets of $100,000 ($30,000 cash plus $40,000 land plus $30,000 equipment). p. 21-12 f. The partnership will ‘‘step into Connie’s shoes† in determining its depreciation expense. It will use the remaining depreciable life and the same depreciation rates Connie would have used. p. 21-12 29. Both partners are contributing assets valued at $100,000. One property has a built-in gain; the other has a built-in loss. Justin and Tiffany recog nize no gain or loss on contribution of their respective properties to the partnership. Justin takes a substituted basis of $85,000 in his partnership interest ($20,000 cash plus $65,000 basis in land). The partnership takes a $65,000 carryover basis in the contributed land.The â€Å"built-in gain† on the land must be tracked and allocated to Justin if the property is ever sold at a gain [ §Ã‚  704(c)]. Section 721 applies to losses as well as gains and prevents Tiffany from recognizing the $25,000 loss on her contribution to the partnership. She will have a $125,000 basis in a partnership interest worth $100,000. Similarly, the partnership will have a $125,000 basis in assets valued at $100,000. The partnership will â€Å"step into Tiffany’s shoes† in determining depreciation deductions. As this is â€Å"built-in loss† property,  §Ã‚  704(c) applies, and amounts related to the built-in loss must be allocated to Tiffany. Depreciation must be allocated in accordance with Reg.  §Ã‚  1. 704-3 (not discussed in detail in this chapter). Basically, a large portion of the depreciation deductions would be allocated to Tiffany to reduce the difference between her basis and the fair market value of her partnership interest as quickly as possible. (If the property basis was less than its fair market value, depreciation would first be allocated to the other partner. )] pp. 21-10, 21-12, 21-13, 21-24, and Example 9 30. Tiffany has a taxable transaction when she sells the assets to a third party. She receives cash of $100,000 in exchange for assets with a basis of $125,000 and recognizes a $25,000 loss. (Based on the facts presented, the loss will likely be a  §Ã‚  1231 loss. ) When Tiffany contributes the $100,000 cash to the partnership, she recognizes no gain or loss and has a basis of $100,000 in her partnership interest.The partnership, of course, has a basis of $100,000 in the cash it receives. The partnership will need to use Tiffa ny’s $100,000 cash contribution, plus $10,000 of the cash Justin contributed to acquire new equivalent assets for $110,000. In this situation, the tax result to Tiffany is improved (she can recognize her $25,000 realized loss), but there is a $10,000 economic cost to the partnership when it acquires equivalent assets for $110,000 instead of $100,000. pp. 21-10, 21-12, 21-13, 21-24, and Example 8 31. a. None. Under  § 721, neither the partnership nor any of the partners recognize gain on contribution of property to a partnership in exchange for a partnership interest. b. $50,000.Ben’s basis in his partnership interest will equal the basis he held in the property he inherited from his father. The basis a beneficiary takes in property received from an estate generally equals the fair market value of the asset at the date of death or at the alternate valuation date (6 months later) if available and elected. p. 21-26 c. Beth will recognize $25,000 of ordinary income. The fair market value of Beth’s 50% partnership interest is $75,000. Since Beth will contribute only $50,000 of property, the difference between the amount contributed and the value of the interest will be treated as being for services rendered to the partnership. Services do not constitute ‘‘property’’ for purposes of  § 721 nonrecognition treatment. p. 21-11 d.Beth’s basis in her partnership interest will be $75,000 [$50,000 (cash contributed) + $25,000 (the amount of ordinary income recognized for services rendered to the partnership)]. Example 13 32. a. Assets Basis    FMV Cash $ 50,000 $ 50,000 Land50,00075,000 Land improvements 25,000 25,000 Total assets$125,000$150,000 Ben’s capital $ 50,000 $ 75,000 Beth’s capital 75,000 75,000 Total capital$125,000$150,000 Note that the partnership will capitalize the $25,000 deemed payment for Beth’s services, since the services relate to a capitalizable expenditure. The partners hip will reflect this $25,000 in ‘‘cost of lots sold† as the development lots are sold. b.Beth could prepare a development plan and secure zoning permits before the partnership is formed. She could then contribute these plans and permits to the partnership in addition to the $50,000 cash. Since a completed plan would be considered â€Å"property,† no portion of her partnership interest would be received in exchange for services if this were done. The entire transaction would be considered under  § 721. p. 21-12 33. a. Under general guidelines, the $50,000 would be treated as a distribution, which, since it does not exceed Ben’s basis in his interest, would not be taxable. The distribution would reduce Ben’s basis in his partnership interest by $50,000. b. None. c.The partnership would take a basis of $50,000 in the land, Ben’s basis in the property at the time of the contribution. d. The IRS might assert that the contribution and distr ibution transactions were in effect a disguised sale of two-thirds ($50,000 distribution ? $75,000 fair market value) of the property contributed by Ben to the partnership. e. $16,667. Under disguised sale treatment, Ben will recognize gain on a sale of two-thirds of his interest in the land. He will be deemed to have received $50,000 in exchange for two-thirds of the land, with a basis of $33,333 ($50,000 basis ? 2/3). Total gain recognized, then, is $16,667. f. $66,667. The partnership will be deemed to have paid $50,000 for two-thirds of the land.The remaining one-third is deemed to be contributed to the partnership, and the partnership will take a carryover basis of $16,667 in this parcel. The partnership’s total basis is $66,667 ($50,000 + $16,667). Figure 21. 3 and Example 12 34. a. The partners’ initial bases in their partnership interests are the same amounts as their bases in the contributed property ( § 722). Rachel’s basis $360,000 Barry’s ba sis 600,000 b. The 2011 sale results in ordinary income of $170,000 to the partnership. 2011 sale: Selling price$530,000 Basis (360,000) Gain$170,000 The gain is ordinary income, since the land is held as inventory by the partnership. The land was a capital asset to Rachel, but no code provision allows treatment of the gain based on Rachel’s use rather than the partnership’s use. c.The 2012 sale results in a $100,000 capital loss and a $20,000 ordinary ( § 1231) loss. 2012 sale: Selling price$480,000 Basis (600,000) Loss ($120,000) As a sale of inventory (determined at the partnership level), the sale in 2012 of the land contributed by Barry would normally result in an ordinary ( §Ã‚  1231) loss. However,  §Ã‚  724 overrides the usual treatment. The character of the precontribution loss, instead, is determined based on the character of the property in Barry’s hands. This sale was within five years of the capital contribution date, so the loss is capital in nature to the extent of the built-in loss at the contribution date, which is: FMV at contribution$500,000 Basis (600,000) Capital loss ($100,000)The remaining $20,000 loss in 2012 is an ordinary ( § 1231) loss because the character of the post-contribution loss is based on the partnership’s ownership and use of the property as inventory. d. If the property Barry contributed was sold by the partnership in 2017, the entire $120,000 loss would be treated as an ordinary ( §Ã‚  1231) loss. A sale in 2017 would not be within five years of the contribution date, so the character of the loss would be determined solely by reference to the character of the asset to the partnership. Since the land is inventory to the partnership, the loss in 2017 would be ordinary. pp. 21-12, 21-13, and Examples 16 and 17 35. P5 Partnership, Ltd. has incurred costs for organizing ($10,000), starting the business ($60,000), transferring of property ($24,000), and securing investors ($1  million) f or the partnership. The organizational costs are treated under  § 709. Under this section, the first $5,000 of such expenses are deducted (provided the total is less than $50,000); the remainder is amortized over 180 months. The startup costs are treated under  § 195. Under this section, also, the first $5,000 of such expenses are deducted, provided the total is less than $50,000. If costs exceed $50,000, the $5,000 deduction is phased out, dollar for dollar, by the amount of costs in excess of $50,000. When total costs equal or exceed $55,000 (as in this situation), no portion of the expense is currently deductible.Instead, the full amount is amortized over 180 months. The $24,000 transfer tax is treated as a cost of acquiring the land and is added to the partnership’s basis in the land. The $1 million of brokerage commissions is treated as a syndication cost of the partnership. Under  §709, these costs cannot be deducted. pp. 21-15 to 21-17 36. The SB Limited Liabilit y Company must address the following issues in preparing its initial tax return: †¢ What year-end must the LLC use? Unless an election is made under  § 444, the LLC must use the year-end determined under the least aggregate deferral method. There is no majority member, and the principal members do not have the same year-end.Under the least aggregate deferral method, the LLC would use a July year-end since this would result in only a 5-month deferral of income to Block. Example 19 †¢ What method of accounting will the LLC use? Even though both members are Subchapter C corporations, the LLC may elect the cash method of accounting if average annual gross receipts are less than $5 million for the year. The LLC, then, could select either the cash, accrual, or a hybrid method of accounting. p. 21-17 †¢ How are the initial legal fees treated? Can the first $5,000 of organizational expenditures be immediately expensed and the balance amortized over a period of 180 months or more? Would any amounts be treated as startup expenditures under  § 195? p. 21-15 The members’ initial bases in their LLC interests must be determined. The bases will be the substituted basis of the assets contributed to the LLC ($650,000 for Block, and $550,000 for Strauss). Example 14 †¢ The LLC’s basis in the property received from the members must be determined, and any cost recovery related to contributed property calculated. The LLC takes a basis of $650,000 in the equipment and steps into Block’s shoes in determining cost recovery allowances. Since the licenses and drawings are contributed rather than sold, the LLC takes a $0 basis in these assets, with no cost recovery possible. The LLC takes a $50,000 carryover basis in the land and a $500,000 basis in the cash. p. 21-12 The LLC must determine whether any portion of either of the LLC interests is issued in exchange for services. The equipment, cash, and land are considered â€Å"property† for purposes of  § 721. The building permits and architectural designs also are considered property under  § 721, even though they are intangible assets. Therefore, none of the LLC interests is issued in exchange for services. Example 13 †¢ Treatment of expenses incurred during the initial period of operations must be considered. The legal fees are organization costs and their tax treatment was previously noted. The construction costs must be capitalized until such time as the building is placed in service. The office expense may have to be capitalized under either (1)  § 195, if it is etermined that the business is still in the startup stage, or (2)  § 263A if it is determined the costs relate to â€Å"production† of the rental property. If neither of these provisions applies, the office expense is currently deductible. pp. 21-15 and 21-16 †¢ If the land is later sold, a portion of the gain must be allocated to Strauss, since the gain was â€Å"built-inâ €  at the time the property was contributed. Note that if the equipment had been appreciated, depreciation allocations would have to take the precontribution gain into account. Allocation of precontribution deductions related to depreciable property are not covered in this text. p. 21-24 37. In 2008, 2009, and 2010, BR can use either the cash, accrual, or a hybrid method of accounting.BR has at least one Subchapter C corporation as a partner, but BR’s average annual gross receipts did not exceed $5,000,000 in either 2008 or 2009. (BR’s average annual gross receipts were $4,600,000 for 2008 and $4,800,000 for 2009. ) In 2011, BR must change to the accrual method of accounting. BR has at least one Subchapter C corporation as a partner during that year, and BR’s average annual gross receipts for the preceding y