Author Archives: Millie

Merits and Demerits of Debt Finance

Debt financing means to borrow funds or to arrange for investments from external sources. Large scale businesses and organizations are not able to run all their affairs from their own capital so it is usual for them to take loans. The most prevalent example of this type of finance is the loans taken from banks. The amount of the loan is to be repaid in agreed installments along with interest at a specified rate.

Merits of Debt Finance:

Following are the merits of debt finance:

(i) Scope for Expansion: Debt financing allows business to expand its operations. New branches can be opened in other cities and countries. New lines of business can be adopted to increase revenues. The easy availability of credit encourages entrepreneur to take new risks and float new products. It also enables businessmen to increase the scale of their operations and to upgrade their products in time.

(ii) Research and Development: Debt financing allows the process of research and development. Loans taken from banks can be used to accelerate R & D activities. Earning potential of the company increases when the research hard products are floated in the market. The new innovation, besides increasing companies reputation, also reduces its cost of production.

(iii) High Profit: Due to expansion of business and use of new techniques the revenues and profits of the business also grow. Huge revenues means that there will be a room for further expansion of the business. Higher profit can also be used to repay the bank loans. Thus increasing the solvency of business.

(iv) Ease of Working Capital: Debt financing helps in maintaining adequate working capital of the business. It also provides a room for making regular payments easily.

(v) Revival of Sick Units: Debt financing may be used to give a breathe to the sick industrial units. The organization’s loans can be rescheduled and new credit can be taken for such units so that they can start their production. Besides providing finance, proper supervision and guidance should also be given. All this will rehabilitate the sick units and can help them to be successful and profitable units.

(v) Saving from Insolvency: Debt financing may be used to save the business from insolvency. In case any essential payment is to be made and there are not enough equity funds then a loan can be taken to make payments and to save the business from insolvency.

(vi) Tax Advantage: As the interest charge is subtracted from net income before applying tax rate, so this leads to lower tax liability.

Demerits of Debt Finance:

Following are the demerits of debt financing:

(i) Interest Payments: Very huge amount out of net profit of the business have to be paid on account of interest on borrowed capital.

(ii) Depression: If a business comes under depression and losses occur, then the payments of interest could become a great problem due to inadequacy of funds.

(iii) Suit Against Business: Creditor can file suits against business if business fails to make payments as agreed.

(iv) Seizing of Collateral: If the business fails to pay interest on capital amount of loan the bank could seize the collateral or mortgaged property.

(v) Risky Investment: If a business is already running on the huge borrowed capital, further investment in a business becomes risky. This risk discourages investors. Banks also hesitate to grant loans to such business which are already under debt burden.

Concrete Rot or Concrete Cancer

If you want a lifetime job, it could be painting the Sydney Harbour Bridge – once you finish you probably have to start at the other end again. The painting continues in order to stop the steel from corroding, and steel corrosion is what causes concrete rot, otherwise called concrete cancer or spalling.

How does concrete 'rot'?

Concrete is used in most commercial and residential buildings in a host of applications such as slabs, stairways, post and columns, support beams, balconies and verandahs, walls, pathways and pools. Huge volumes of concrete are involved in structures like bridges, wharves and high-rise towers. The concrete is generally reinforced using steel bars or mesh and in the larger developments significant amounts of steel are required for added strength.

The enemies of reinforced concrete are water and air. If these elements gain access to the steel enclosed within the concrete it can corrode – the steel expands as it breaks down and fractures the surrounding concrete. As the concrete cracks and crumbles, there is even greater opportunity for water and air to contact the reinforcing steel and the process intensifies. There are obvious safety issues as the structural integrity of the concrete is reduced.

How to identify concrete rot

It can be happening unseen within the concrete but as it continues it becomes more evident. You may notice rust marks running down the concrete, or the concrete flaking, cracking or crumbling. In extreme cases, large sections of the concrete will fall away, exposing the rusted reinforcing steel. Remedial treatment can involve substantial and expensive corrective measures.

A professional building inspection can identify the problem or warn of potential for future trouble. It can be water pooling somewhere, small cracks in the concrete or reinforcing too close to the concrete surface. Prevention is certainly better than cure with concrete rot – it may simply be a matter of improving drainage, painting a surface or sealing cracks with some sort of mortar or epoxy filler. If you have any concerns about concrete rot, it pays to get some expert advice.

I do like to be beside the seaside

Well yes, most of us do but it's here that concrete rot can be even more prevalent as chlorides in the moist, salty air react more aggressively with the reinforcing steel. Concrete rot is an ever-present issue in locations close to the sea and property owners need to be constantly on the lookout for any signs of deterioration and to ensure that protective measures are maintained.

The same can be said for chlorides associated with swimming-pool chlorine or saltwater pools.

Also, there is often moisture close to the ground surface in beachfront blocks and water can soak up into the structure. Large buildings with basement or underground car parks can experience the same problem with groundwater seepage.

In summary, concrete rot is a common problem. It can lead to significant structural damage which may be difficult and expensive to repair. It is not always easy to detect, it can result in serious safety implications and it can be avoided by getting expert advice and using the right materials and appropriate construction guidelines.

Products And – Or Services – Defining "Service-Oriented" Products and the Related Role of Technology

The economy can be analyzed using both market-driven and production-driven approaches to industry classification. The North American Industry Classification System (NAICS) uses a market-driven approach; the older Standard Industrial Classification (SIC) uses a production-driven approach.

Under a market-driven approach, the economy comprises goods-producing and service-providing industries. Goods-producing industries include: natural resources and mining, construction, and manufacturing; service-providing industries include: wholesale and retail trade, transportation (and warehousing), utilities, information, financial activities, professional and business services, education and health services, leisure and hospitality, and public administration.

Under a production-driven approach, the economy comprises product-driven and service-driven industries. Product-driven industries comprise enterprises that manage inventories available for sale as primary activities (regardless of whether they transform them or not). Under this approach, the retail, wholesale, and food service industries are product-driven. (The kitchens of food service providers are equivalent to factories.) Product-driven enterprises may have extensive cost accounting and operations practices for inventory management.

Industry classifications can be applied to an enterprise as a whole (the primary industry), and to the establishments within it, which may be in differing secondary industries. Establishments are facilities that include plants (factories and warehouses) and branches (retail and wholesale outlets).

For example, the hospitality industry is service-driven; under the production-driven approach, the bar and restaurant establishments within a hotel are product-driven. The entertainment industry is service-driven; under the production-driven approach, the retail and bar establishments within a theater are product-driven. The health care industry is service-driven; under the production-driven approach, the retail pharmacy establishment within a hospital is product-driven. Under the market-driven approach, all of these establishments are service-providing.

For example, a manufacturing enterprise is goods-producing under a market-driven approach, and product-driven under a production-driven approach. If it also operates a retail delivery system, the stores are service-providers under a market-driven approach, and are product-driven under a production-driven approach. If all sales revenue is sourced from its own products, the enterprise is in two primary industries. However, if forced to decide, its selection should be based upon core competencies – activities that it performs well. The enterprise can be divided into two separate business units: manufacturing and merchandising. The merchandising unit is an internal customer of the manufacturing unit. However, depending on strategy and policy, the manufacturing unit could sell products to wholesalers and other retailers, and the merchandising unit could buy products from other manufacturers and wholesalers. Under a market-driven approach, the manufacturing unit is goods-producing and the merchandising unit is service-providing, whereas under the production-driven approach, the merchandising unit is product-driven.

The make-up of the economy changes overtime as newer industries emerge and grow and older industries mature and decline. For example, the manufacturing industry is shifting from vertically integrated to strategically outsourced. Strategic outsourcers may manufacture specialized components and assemble finished products. However, by outsourcing the manufacturing of utility components to specialty scale manufacturers, strategic outsourcers can lower their production costs.

Biotechnology and nanotechnology are emerging industries. The information industries are growing as technology becomes more ubiquitous, and as knowledge is packaged in digital products. Knowledge is information that has been learned and retained. In the future, knowledge will be retained extensively in electronic form.

Products and services…

The term “product” is associated with something that is tangible – the resulting inventory from agricultural, mining and drilling, construction, and manufacturing activities. Outputs are either end-products, or components that are assembled into end-products in downstream processes within the enterprise or in its customers.

The term “service” is associated with something that is intangible – capabilities either delivered at the point or time of sale, or shortly thereafter, or as a supporting service. Supporting services can be purchased at the time of sale for downstream use, or later, and consist of such items as warranties beyond those bundled with the product, preventive maintenance, and routine cleaning and repairs.

Functions and features of products are easier to discern than those of services, which are event or activity driven, and may occur in the future.

The term “time of sale” means when a contractual or non-contractual agreement between a buyer and a seller is made, and does not necessarily mean when revenue is recognized and earned. Revenue is recognized and earned according to the accounting principles that fit the service offering, which may be over a period of time.

A commodity is a product or service that is indistinguishable and interchangeable with another of the same type because there is little to no value added. Many commodities are natural, such as produce, minerals, oil, and gas. Services can be commoditized too. The distinguishing factors of a commodity provider include convenience, quality of service, and price.

Product-driven enterprises also offer delivery and supporting services. Delivery services include arranging for transportation, dealer preparation, training, and gift wrapping. Supporting services include cleaning, repairs, and maintenance. To remain competitive over time, enterprises have to add services with their product offerings that exceed customer expectations. However, if customers require such services, then they must become part of the basic offerings. For example, bathroom facilities and color TV are included in modern hotel rooms, even though the primary purpose is providing a place to sleep.

Although services are intangible, their effects are not. Transportation services move people, cleaning services remove dirt and stains, and repair services restore items to working order. Services require facilities, equipment, and supplies that are bundled in. When products are bundled in, the enterprise pays sales or use tax, if applicable; when products are sold with services, the customer usually pays sales or use tax, if applicable.

Service-driven enterprises can produce tangible deliverables. For example, dry cleaners produce clean and pressed clothes; professional service firms, such as architects, accountants, attorneys, and consultants produce reports; and engineers produce design drawings that can be transformed into facilities, equipment, or other tangible products.

The recording and movie industries employ technologies that can capture sound and pictures. Starting in laboratories, these industries transform science into art. Hence, live entertainment performances (services) can be transformed into recorded products. As a consequence, an event or activity can be reproduced, duplicated, distributed, and repeated to the public-at-large indefinitely. Digital products are impacting traditional manufacturing, distribution, and consumer buying behaviors, and placing intermediaries at risk.

Process control and information technologies have enabled seamless integration between designers and manufacturers. The “design-to-construction” process becomes ubiquitous as computer-aided design and manufacturing technologies (CAD/CAM) enable a designer in one location to transmit specifications to manufacturers in others. The designs are virtual, and result in instructions that control manufacturing equipment in both local and remote locations. As a consequence, manufacturing can be outsourced strategically to any manufacturer that can accept electronic designs anywhere at any time. Because the process is seamless, the precision is higher.

As more enterprises adopt the design-to-construction model, dramatic changes will occur in the structure of industries. For example, in the publishing industry, books can be printed on demand from electronic files upon receipt of orders placed over the internet, eliminating the need for physical inventory available for sale at printers, publishers, and bookstores. The electronic files represent a virtual finished goods inventory from which physical products can be made when necessary. As a consequence, inventory carrying costs are lower.

Both product-driven and service-driven industries render service from centers that receive inbound and place outbound service and telemarketing calls. Call center activities can be outsourced in a similar fashion to manufacturing.

The notion of strategic outsourcing can be applied to almost every function in an enterprise provided intellectual property is protected. However, although management consultants may be used in the development of strategy, the ultimate responsibility for planning, deployment, execution, and performance remains in-house with the governance function.

Products and/or services…

The term “products and/or services” describes collectively all types of products and services.

Service-driven industries are evolving into providers of both “product-oriented” and “service-oriented” services. In order to differentiate product-oriented services from the delivery and supporting services, the term “service-oriented” products provides more clarity. Service-oriented products must be definable, duplicable, and repeatable. They are intangible outputs of processes that are represented by tangible items, packaged in a definable form. Technology plays a major role in the delivery through hardware, software, and both voice and data telecommunications. “Hard” products are tangible and “soft” products are intangible.

For example, traditional land phone line services were offerings with few differentiating features, primarily in the style of equipment. As the telephone system migrated from electro-mechanical to electronic, the offerings were transformed into service-oriented products with features such as call forwarding, caller identification, call waiting, and voice mail. Cell phone offerings are service-oriented products with more extensive functions and features than land lines. Cell phone service-oriented products have cameras built-in, and have delivery and supporting services bundled in such as account information, internet access, and application software for calculators, calendars, contact information, notes, games, music, pictures and movies. Cell phone and computer technologies are converging.

In the financial and business and professional services industries, service-oriented products are packaged with such items as accounts, agreements, brochures, contracts, databases, documents, equipment, facilities, policies, procedures, and statements.

In the leisure and hospitality industries, service-oriented products such as flights, hotel rooms, car rentals, and limousine services are packaged with facilities, equipment, and supplies. The types of facilities and equipment define specific offerings. For example, an Airbus A380 renders a different experience from a Douglas DC3 even though the principal service is the same: providing air transportation. A hotel room with a view of the ocean renders a different experience from one with no windows at all, even though the principal service is the same: providing accommodation. The quality of the accoutrements such as blankets, pillows, towels, newspapers, cable TV, internet access, and fruit baskets can affect the overall experience. A Cadillac renders a different experience from a Chevrolet, even through the principal service is the same: providing a rental car to drive, or a limousine.

Travel-related service-providers bundle air, hotel, car rental, and limousine services into packages to make the buying decisions easier for consumers. Event planners bundle travel-related services with conference and convention services for enterprises.

Consumables, durables, and facilities…

Manufactured products consist consumables and durables.

Consumables are products change or wear out as they are used and comprise food, clothing, personal care, health care, household supply, and office supply items. Media such as books, records, audio and video CDs, and DVDs are classed as consumables – the intellectual property is worth far more than the media.

Durables are long lasting equipment items such as appliances, furniture, and vehicles.

Digital products may involve no media if they delivered electronically other than the server of the publisher and the electronic device of the user.

Facilities are the outputs of construction activities and are made of durable materials.

Contractual or non-contractual products and/or services…

Agreements are contractual or non-contractual based depending upon the type of offering, and the nature of the relationship between buyers and sellers.

Consumable products can be sold with the right to return for exchange or refund within a certain period of time. Durable products can be sold with agreements that define warranties and maintenance.

Service-oriented products and services can be sold with agreements that specify exactly what is to be delivered and when, with procedures for reporting problems or complaints.

In negotiations, discussions should embrace the specific functions and features of hard and soft products, and the delivery and supporting services. Experienced negotiators pay attention to both the tangibles and intangibles because the total cost of ownership comprises both.

Digital-construction and digital-manufacturing…

As technology continues to develop, service-oriented products will become more common because it makes intangible items definable. New knowledge-based industries will emerge.

The reproduction of software on physical media is classified as goods-producing, and all other development and publishing activities are classified as service-providing under NAICS. However, software and other digital products are durable because they can last indefinitely, even if they have to be transferred among storage media. Software products are developed by service-providers such as business and professional services firms, publishers, and “in-house” developers. Nevertheless, software development activities require the project management disciplines of goods-producing industries, such as construction and manufacturing, to be successful.

The “digital-construction” and “digital-manufacturing” industries are evolving: digital construction delivers software; digital manufacturing delivers soft service-oriented, information, and knowledge-based products. However, through CAD/CAM processes, software delivers hard products too. In the future, almost all hard and soft products will result from digital-construction and digital-manufacturing processes.

Defining product and/or services is an enterpriship (entrepreneurship, leadership, and management) competency.

Aircraft Structural Components

The major aircraft structures are wings, fuselage, and empennage. The primary flight control surfaces, located on the wings and empennage, are ailerons, elevators, and rudder. These parts are connected by seams, called joints.

All joints constructed using rivets, bolts, or special fasteners are lap joints. Fasteners can not be used on joints in which the materials to be joined do not overlap – for example, butt, tee and edge joints. A fayed edge is a type of lap joint made when two metal surfaces are butted up against one another in such a way as to overlap.

Internal aircraft parts are manufactured in four ways: Milling, stamping, bending, and extruding. The metal of a milled part is transformed from cast to wrought by first shaping and then either chemically etching or grinding it. A stamped part is annealed, placed in a forming press, and then re-heat treated.

Bent parts are made by sheet metal mechanisms using the bend permission and layout procedures. An extrusion is an aircraft part which is formed by forcing metal through a preshaped die. The resulting wrought forms are used as spars, stringers, longerers, or channels. In order for metal to be extruded, bent, or formed, it must first be made malleable and ductile by annealing. After the forming operation, the metal is re-heat treated and age hardened.

Airbus Wings

Here in the UK and in particular at the Airbus facility in North Wales, our expertise is in the manufacture of aircraft wings. Aircraft wings have to be strong enough to withstand the positive forces of flight as well as the negative forces of landing. Metal wings are of two types: Semicantilever and full cantilever. Semicantilever, or braced, wings are used on light aircraft. They are externally supported by struts or flying wires which connect the wing spar to the fuselage. A full cantilever wing is usually made of stronger metal. It requires no external bracing or support. The skin carries part of the wing stress. Parts common to both wing designs are spars, compression ribs, former ribs, stringers, stress plates, gussets. Wing tips and wing skins.

Airbus at Broughton employs more than 5,000 people, mostly in manufacturing, but also in engineering and support functions such as procurement and finance.

Wing Spars

Two or more spars are used in the construction of a wing. They carry the main longitudinal -butt to tip – load of the wing. Both the spar and a compression rib connect the wing to the fuselage.

Compression Ribs

Compression ribs carry the main load in the direction of flight, from leading edge to trailing edge. On some aircraft the compression rib is a structural piece of tubing separating two main spars. The main function of the compression rib is to absorb the force applied to the spar when the aircraft is in flight.

Former Ribs

A former rib, which is made from light metal, attaches to the stringers and wing skins to give the wing its aerodynamic shape. Former ribs can be classified as nose ribs, trailing edge ribs, and mid ribs running fore and aft between the front and rear spar on the wing. Formers are not considered primary structural members.

Stringers

Stringers are made of thin sheets of preformed extruded or hand-formed aluminum alloy. They run front to back along the fuselage and from wing butt to wing tip. Riveting the wing skin to both the stringer and the ribs gives the wing additional strength.

Stress Plates

Stress plates are used on wings to support the weight of the fuel tank. Some stress plates are made of thick metal and some are of thin metal corrugated for strength. Stress plates are usually held in place by long rows of machine screws, with self-locking nuts, that thread into specifically mounted channels. The stress-plate channeling is riveted to the spars and compression ribs.

Gussets

Gussets, or gusset plates, are used on aircraft to join and reinforse intersecting structural members. Gussets are used to transfer stresses from one member to another at the point where the members join.

Wing Tips

The wing tip, the outboard end of the wing, has two purposes: To aerodynamically smooth out the wing tip air flow and to give the wing a finished look.

Wing Skins

Wing skins cover the internal parts and provide for a smooth air flow over the surface of the wing. On full cantilever wings, the skins carry stress. However, all wing skins are to be rated as primary structures wherever they are on braced or full cantilever surfaces.

Fuselage Assemblies.

The largest of the aircraft structural components, there are two types of metal aircraft fuselages: Full monocoque and semimonocoque. The full monocoque fuselage has fewer internal parts and a more highly stressed skin than the semimonocoque fuselage, which uses internal bracing to obtain its strength.

The full monocoque fuselage is generally used on smaller aircraft, because the stressed skin eliminates the need for stringers, former rings, and other types of internal bracing, thus lightening the aircraft structure.

The semimonocoque fuselage derives its strength from the following internal parts: Bulkheads, longerers, keel beams, drag struts, body supports, former rings, and stringers.

Bulkheads

A bulkhead is a structural partition, usually located in the fuselage, which normally runs perpendicular to the keel beam or longerers. A few examples of bulkhead locations are where the wing spars connect into the fuselage, where the cabin pressurization domes are secured to the fuselage structure, and at cockpit passenger or cargo entry doors.

Longerons And Keel Beams

Longerons and keel beams perform the same function in an aircraft fuselage. They both carry the bulk of the load traveling fore and aft. The keel beam and longerons, the strongest sections of the airframe, tie its weight to other aircraft parts, such as powerplants, fuel cells, and the landing gears.

Drag Struts And Other Fittings

Drag struts and body support fittings are other primary structural members. Drag struts are used on large jet aircraft to tie the wing to the fuselage center section. Body support fittings are used to support the structures which make up bulkhead or floor truss sections.

Former rings and fuselage stringers are not primary structural members. Former rings are used to give shape to the fuselage. Fuselage stringers running fore and aft are used to tie in the bulkheads and
Former rings.

Aircraft Empennage Section

The empennage is the tail section of an aircraft. It consist of a horizontal stabilizer, elevator, vertical stabilizer and rudder. The conventional empennage section contains the same kind of parts used in the construction of a wing. The internal parts of the stabilizers and their flight controls are made with spars, ribs, stringers and skins.

Also, tail sections, like wings, can be externally or internally braced.

Horizontal Stabilizer And Elevator

The horizontal stabilizer is connected to a primary control surface, ie, the elevator. The elevator causes the nose of the aircraft to pitch up or down. Together, the horizontal stabilizer and elevator provide stability about the horizontal axis of the aircraft. On some aircraft the horizontal stabilizer is made movable by a screw jack assembly which allows the pilot to trim the aircraft during flight.

Vertical Stabilizer And Rudder

The vertical stabilizer is connected to the aft end of the fuselage and gives the aircraft stability about the vertical axis. Connected to the vertical stabilizer is the rudder, the purpose of which is to turn the aircraft about its vertical axis.

Ailerons

Elevators and rudders are primary flight controls in the tail section. Ailerons are primary flight controls connected to the wings. Located on the outboard portion of the wing, they allow the aircraft to turn about the longitudinal axis.

When the right aileron is moved forward, the left one goes down, then causing the aircraft to roll to the right. Because this action creates a tremendous force, the ailerons must be constructed in such a way as to withstand it.

Flight controls other than the three primary ones are needed on high-performance aircraft. On the wings of a wide-body jet, for example, there are as many as thirteen flight controls, including high and low-speed ailerons, flaps, and spoilers.

Flaps And Spoilers

Wing flaps increase the lift for take-off and landing. Inboard and outboard flaps, on the trailing edge of the wing, travel from full up, which is neutral aerodynamic flow position, to full down, causing air to pile up and create lift. Leading edge flaps – Krueger flaps and variable-camber flaps – increase the wing chord size and then allow the aircraft to take off or land on a shorter runway. Spoilers, located in the center section span-wise, serve two purposes. They assist the high-speed ailerons in turning the aircraft during flight, and they are used to kill the aerodynamic lift during landing by spreading open on touchdown.

Trim Tabs

Connected to the primary flight controls are devices called trim tabs. They are used to make fine adjustments to the flight path of an aircraft. Trim tabs are constructed like wings or ailerons, but are
Considerably smaller.

Characteristics of Modern Media Technology

Media has evolved a lot. Modern media depends on Technology to send information or gather them at a faster speed. The following are the characteristics:  

Speed: The information reaches at a faster speed.     

Reach: The information must have mass reach.  

Preventing Calamities: Modern media broadcasts 24 hours. So high technology is used to beat natural calamities.     

Constant Transmission: Technology is used for constant transmission.  

The following tools of technology is used to achieve the aforesaid targets:  

 

Use of Satellites: Satellite Technology is used to ensure constant transmission. A satellite hardly  gets affected by climatic conditions.     

Use of Video Conferencing: It is used to get live and personalized feedback without physical presence.  

Use of Television Conferencing: It is used to get audio inputs from far off places.  

Use of Internet: Internet is being relied upon for information.  

Use of high end Computer Technology: Computing and high speed processors are used for fast and able data processing.  

Use of Mobile Satellite Vans for News Coverage: Satellite vans are used for high mobility and anytime coverage.    

Use of high end Audio visual equipments: Use of high end audio visual equipments have emerged that leads to clear sound and picture. Tape recorders and high end video cameras are used by media persons to take interviews fast and transmit news ina proper and efficient manner.    

Thus these are the characteristics of Modern Media Technology that has made media more fast, accurate and improved and has made it an indispensable tool for protecting the  largest democracy of the world named India by making it more transparent and accountable to people. Hence these are the characteristics of modern media technology.  

Merits and Demerits of Equity Finance

Equity finance means the owner, own funds and finance. Usually small scale business such as partnerships and sole proprietorships are operated by their owner trough their own finance. Joint stock companies operate on the basis of equity shares, but their management is different from share holders and investors.

Merits of Equity Finance:

Following are the merits of equity finance:

(i) Permanent in Nature: Equity finance is permanent in nature. There is no need to repay it unless liquidation occur. Shares once sold remain in the market. If any share holder wants to sell those shares he can do so in the stock exchange where company is listed. However, this will not pose any liquidity problem for the company.

(ii) Solvency: Equity finance increases the solvency of the business. It also helps in increasing the financial standing. In times of need the share capital can be increased by inviting offers from the general public to subscribe for new shares. This will enable the company to successfully face the financial crisis.

(iii) Credit Worthiness: High equity finance increases credit worthiness. A business in which equity finance has high proportion can easily take loan from banks. In contrast to those companies which are under serious debt burden, no longer remain attractive for investors. Higher proportion of equity finance means that less money will be needed for payment of interest on loans and financial expenses, so much of the profit will be distributed among share holders.

(iv) No Interest: No interest is paid to any outsider in case of equity finance. This increases the net income of the business which can be used to expand the scale of operations.

(v) Motivation: As in equity finance all the profit remain with the owner, so it gives him motivation to work more hard. The sense of inspiration and care is greater in a business which is financed by owner’s own money. This keeps the businessman conscious and active to seek opportunities and earn profit.

(vi) No Danger of Insolvency: As there is no borrowed capital so no repayment have to be made in any strict lime schedule. This makes the entrepreneur free from financial worries and there is no danger of insolvency.

(vii) Liquidation: In case of winding up or liquidation there is no outsiders charge on the assets of the business. All the assets remain with the owner.

(viii) Increasing Capital: Joint Stock companies can increases both the issued and authorized capital after fulfilling certain legal requirements. So in times of need finance can be raised by selling extra shares.

(ix) Macro Level Advantages: Equity finance produces many social and macro level advantages. First it reduces the elements of interest in the economy. This makes people Tree of financial worries and panic. Secondly the growth of joint stock companies allows a great number of people to share in its profit without taking active part in its management. Thus people can use their savings to earn monetary rewards over a long time.

Demerits of Equity Finance:

Following are the demerits of equity finance:

(i) Decrease in Working Capital: If majority of funds of business are invested in fixed assets then business may feel shortage of working capital. This problem is common in small scale businesses. The owner has a fixed amount of capital to start with and major proportion of it is consumed by fixed assets. So less is left to meet current expenses of the business. In large scale business, financial mismanagement can also lead to similar problems.

(ii) Difficulties in Making Regular Payments: In case of equity finance the businessman may feel problems in making payments of regular and recurring nature. Sales revenues sometimes may fall due to seasonal factors. If sufficient funds are not available then there would be difficulties in meeting short term liabilities.

(iii) Higher Taxes: As no interest has to be paid to any outsider so taxable income of the business is greater. This results in higher incidence of taxes. Further there is double taxation in certain cases. In case of joint stock company the whole income is taxed prior to any appropriation. When dividends are paid then they are again taxed from the income of recipients.

(iv) Limited Expansion: Due to equity finance the businessman is not able to increase the scale of operations. Expansion of the business needs huge finance for establishing new plant and capturing more markets. Small scales businesses also do not have any professional guidance available to them to extend their market. There is a general tendency that owners try to keep their business in such a limit so that they can keep affective control over it. As business is financed by the owner himself so he is very much obsessed with chances of fraud and embezzlement. These factors hinder the expansion of business.

(v) Lack of Research and Development: In a business which is run solely on equity finance, there is lack of research and development. Research activities take a long time and huge finance is needed to reach a new product or design. These research activities are no doubt costly but eventually when their outcome is launched in market, huge revenues are gained. But problem arises that if owner uses his own capital to finance such long term research projects then he will be facing problem in meeting short term liabilities. This factor discourages investment in research projects in a business financed by equity.

(vi) Delay in Replacement: Businesses that run on equity finance, face problems at the time of modernization or replacement of the capital equipments when it wears out. The owner tries to use the current equipments as long as possible. Sometimes he may even ignore the deteriorating quality of the production and keeps on running old equipment.

How To Maintain Technology In Your Business

Whether you like the idea or not, most businesses today survive primarily because of modern technology. Technology is used in business for keeping records, receiving payments, paying workers, and a lot more. Even small businesses today rely on technology to further advance their cause. If there is one challenge regarding technology in business, it is in the area of upgrading and maintenance, because it requires not only a budget but also a lot of patience in your part as the owner.

Not all people can easily go with the flow of high-end computers and complicated office machines. If you are one of those people, it is important that you list down all high tech equipments and machines you have in your office and learn how to operate each one of them. Familiarize yourself with computer software and programs as well, especially those that are used for database.

Organizing a technical support team is a good idea. Look for an IT expert to lead the team in making sure that every office equipment is working at full potential and that the system has zero loopholes as possible. When assigning a person to lead your tech support team, consider not only his skills and knowledge concerning business technology but also the quality of his experience as an IT expert.

Set aside a time each week and each month to have your system checked by your tech support team or by yourself. Have someone write a report regarding the check up to be submitted to you for evaluation. The feedback should contain information regarding the status of the system and if a software or hardware needs to be upgraded or not. Moreover, encourage your workers to report glitches as soon as possible.

Finally and most importantly, create a budget for the maintenance of your business technology. Avoid the mistake of waiting for equipment and system problems to become serious before deciding to spend money for repair. The best thing to do is to dedicate a certain amount of money for maintenance and repair beforehand. Doing this will help you prevent major setbacks and help you save money in the longer run.

There is absolutely no easier way to advance your business than with careful planning and preparation not only in the promotion of products itself but in the logistics and essential organ of the business body as well which is business technology.

Evolution of Business in the United States

I. Introduction

The history of modern American economy traces its roots in the 16th century when migrants from Europe came to settle in the country. At that time, the nation was inhabited by Native Americans – indigenous peoples who were recognized according to tribes. Prior to the arrival of European settlers, tribes traded among themselves.

When the Europeans came they established economic interaction with the natives through the barter or trading of commodities. Such interaction increased tremendously over time – thus becoming the cornerstones of commerce and the foundation of a nation. From the early trading systems, business in America progressed to more complicated and more comprehensive levels. Tracing these roots, from the early barter practices through the Industrial Revolution up until the Internet Revolution can help us better appreciate why America is the most powerful economy in the world today.

II. Bartering

The beginnings of business in America are closely intertwined with the early practice of barter. In its early history, the United States was a collection of colonies where the absence of a common currency led to the use of all sorts of substitutes, eg tobacco and wampum, as money.

Barter took many forms then. Among these were the potlatch ceremonies of Native Americans that had economic functions entwined with social and ceremonial significance. A potlatch is usually a ceremony involving music, dance, and spiritual rituals. The host gives away his resources gathered for the event, which in turn the guests give in return when they hold their own potlatches.

Barter also took the form of traditional native currencies such as furs and wampum which were essential for frontier trading with the indigenous population. Wampum, made out of the shells of a type of clam, was best known form of money among Native Americans. Wampum's use as money came as a result of its desirability for ornamentation purposes.

Among the early documented use of wampum points to 1664 when colonist Peter Stuyvesant arranged a loan in wampum for the payment of the wages of workers constructing the New York citadel (page 458). Other commodities that were commonly traded included tobacco, rice, indigo, wheat, maize, etc.

III. From the Industrial Revolution to the Production Era

As colonies and settlements grew, industries became more developed. The introduction and use of machineries in production ushered in the Industrial Revolution. The Industrial Revolution changed the ways by how American businesses produced their goods. The introduction of much new technological advancement led to greater and faster production of goods. The onset of greater productivity led to unprecedented economic growth to a budding nation. The Industrial Revolution basically changed the country from a mainly agricultural society to one that in which industry and manufacturing was in control.

The biggest advancement in technology was the use of steam power. This revolutionized industries like textiles and manufacturing. Also, the invention of the telegraph made communication much faster. The onset of the production era signaled the end of the industrial revolution. The new era saw many companies looking at ways to reduce the cost of production. Companies thought then that lowering manufacturing costs would lead to lower prices of products. This concept was fueled by such milestones as the invention of the assembly line and more efficient work principles (Haber, 1964).

These two innovations made businesses aware that mass production resulted in lesser costs of production and greater profits. Unfortunately, unstable economic conditions brought about by the Great Depression caused many companies to fail even though they had adopted mass production techniques.

IV. From the Marketing Era to today's business world

Contrary to the fears of the general public, the end of World War II saw pent-up consumer demand fueling strong economic growth in the postwar period. Several industries grew tremendously during this period – the automobile industry, aviation and electronics to name a few. A housing boom added to the expansion.

The postwar economic aid to European countries under the Marshall Plan also helped maintain markets for numerous US goods. In the 1980s, rapid developments in technology impacted the economy. The personal computer, hand-held mobile phones, and new audio and data storage technologies greatly influenced business. But the greatest impact would come with the emergence of the Internet.

The impact of the Internet on business is as far reaching as its impact on an individual's way of life. Today, the Internet is a fundamental component in determining both strategy and business design. This technology enables businesses to reach across and beyond traditional boundaries and create new sources of profit.

V. Conclusion

The history of business in the United States is a reflection of the country's evolution from a simple economy to being the most powerful country in the world. To say that business had little or no influence in the attainment of that status would be to deny the very history of America. Indeed, the country was founded on democratic principles, but it grew and developed, no doubt, because of business.

Manufactured Homes 101 – The Things You Need to Know!

Everyone has dreamed of owning their dream house. A place they can call your own. It’s a place of sanctuary to shelter you and your family. Manufactured homes have always been a good option. Putting your money into it is worth while, although, a lot of people are still unsure whether to purchase one.

Factory built houses come in all shapes and sizes. They come in various floorings and fashion that it is easy to find one that will suit your taste. Aside from being way cheaper than houses constructed right on the location, these homes also give you a chance to design your home. Ranging from $20,000 – $100,000, they are ready for transfer to any location you’d want your house to be set.

A Factory Built Home: What is it?

Also known as a prefabricated house, manufactured homes are units of houses constructed in a huge factory. After purchasing, it is then dragged to the site where it can be put ready for transfer to another location or mounted on the ground through masonry groundwork.

Prefabricated homes are constructed upon certain set of codes which administers mobility, fire safety, effectiveness, style and sturdiness. All of these sets of guidelines are closely monitored by the US Department of Housing and Urban Development (HUD). The same set of guidelines also manages the electrical, heating and plumbing systems.

The Basics About Prefabricated Homes

Here are some of the things that you need to know about manufactured or prefabricated homes.

  • They are houses built in large factories.
  • After they are constructed from the factories, they are wheeled to the chosen site for the house. It is done by transporting the whole house one portion after the other.
  • Prefabricated home cost less than the houses constructed right on the site.
  • They are used to be regarded as mobile or trailer houses. They come in many designs.
  • They are constructed under the guidelines set by the HUD or the US Department of Housing and Urban Development (HUD).
  • After transferring the house’s portions in the site, they are put into pieces.
  • Its market value depreciates as time goes by.

So, now that you have the basic knowledge about what a factory built home is, I guess you can clear up your mind and start weighing things. Buying a house is really a good investment of your hard-earned money and considering the given details about prefabricated homes, counting it as an option is not a bad idea after all.

Curry Favour With the Leaf for Your Tresses

Losing hair is to a great degree disappointing, as we as a whole surely understand. When you brush or brush your hair and see the extreme hair fall, it is very upsetting. The curry leaf springs to your guide from a shortsighted point of view gave you don’t have a fundamental restorative issue. I am not sure on the off chance that it captures hair fall totally, but rather it certainly helps you recover your certainty with the development of new roots.

Utilize these leaves in your cooking and ensure that you ingest them. The greater part of us don’t understand the power that the herb conveys to the table, in truth for all intents and purposes everybody drives them aside on the plate. The taste is certainly not something to rave about, I give you that, yet it will bring on a grin later. The cheat’s route is to granulate it in a masala or cleave it fine while flavoring.

Recover the Shine and Color

To get back the sparkle on your tresses take a stab at something at home. Gather a measure of curry leaves, washed and free from any clammy. In a dish pour a measure of coconut oil and add the leaves to the oil. Sear the leaves in the oil until you get a roasted mass. Abandon it aside and utilize it when warm on your hair. Ensure that you rub it on the scalp. On the off chance that don’t care for the wreckage of the leaves on the hair, strain the oil and take after the schedule. Refrigerate the oil when not being used and constantly warm the oil when you need to rub the scalp. This conveys back brilliance to dormant hair.

On the off chance that you don’t care for the odor then I would propose you abstain from utilizing this, yet in the event that you can endure it, keep it on for 60 minutes. Utilize a mellow cleanser and condition your hair. The scent dependably vanishes. I don’t have an abhorrence for the leaf so I abandon it on for 60 minutes and take after the schedule. Accept an approach this and choose what works for you.

Curry leaves obscure the hair – unquestionably worth considering in the event that you need to maintain a strategic distance from those feared dark strands. In the event that you anticipate that your hair will obscure instantly, overlook it, since it is no hair shading. After some time, it mollifies darkens the hair it to a delicate dark or dull darker.

Natural Remedies to the Rescue

The curry leaf additionally has restorative properties. It helps in diabetes and a progression of different ailments. This does not imply that you get rid of specialists requests, yet incorporate the herb in your day by day eat less carbs. The fundamental here is that you have an answer in the kitchen, attempt it and perceive how it benefits you.

Truly, there are a million approaches to help you keep your hair looking great. All that it takes is to discover an exit from the male pattern baldness mess. Normally, before expecting comes about, you have to counsel with a specialist to learn what could be the fundamental cause. On the off chance that you have a significant issue like so with alopecia, hormonal awkwardness, exorbitant anxiety, or whatever else, take after the directions of the specialist.

The curry leaf is an alternative to help you get the non-abrasiveness and adds an incentive to your locks. Truth be told, you feel better utilizing the herb. Attempt it only for the hell of it on the off chance that you decide to, however in the event that you can’t be troubled, well that additionally is fine. The main issue is to feel great and on the off chance that you don’t feel the adoration for the herb, get rid of it totally.

Nothing can be as baffling as a cushion strewn with hair or a hairbrush with a larger number of strands than swarms. Curry leaves have been known to help hair development and enhance the surface of hair. Here is something that I have attempted and continue at it with the leaf. It is a magnificent approach to recover the skip and make you like your mane.