Microsoft Company and how its foundation impacts the world Assignment

Microsoft Company and how its foundation impacts the world - Assignment Example Some of these programs include helping people in case of disasters; human rights and online safety are the other ways the firm commits to the CSR programs. Sadly, the opposite happens when a firm fails in realising as much profit as it should especially in the case of Microsoft. Since the company is evidently committed to its CSR programs, it is imperative that constant analysis of its strategies and other factors be carried out. In this paper, the purpose is to analyse Microsoft Company and the effects of its foundation in the world. Microsoft is a US-based multinational company that specialises in computer technology including software, personal computers and consumer electronics. Some of the best software products include Microsoft windows, Microsoft Office, internet explorer and Office suite. Recently the firm entered into the hardware products including Xbox games tablet, Microsoft Surface. Other services the firm offers including Internet search program, Bing. The company was founded in 1975 by two men, Bill gates and Paul Allen, and is currently headquartered in Redmond, Washington (Carter et al, p.1634). The company’s market share started sharing in the 80s when it produced an operating system called, MS-DOS. The production of Microsoft Windows elevated the company. The number of products it has produced since its inception has evidenced the firm’s commitment to innovation. In the case of operating systems, the company embraced innovation by releasing several versions including Windows XP, Windows vista, Windows 7 and the most recent windows 8 and 8.1. After buying Nokia’s devices, Microsoft has shown great commitment to mobile phone users by enabling windows 8 to be accessible through mobile phones (Pittel, p.63). The market share for Microsoft is has remained the highest among the other firms in the same industry. Additionally, besides

Economics game theory paper Essay Example | Topics and Well Written Essays - 1250 words

Economics game theory paper - Essay Example Rationality is the first basic assumption of consumer behaviour in microeconomic theory. The implication of rationality is that the consumer’s decisions are motivated by the pursuit of maximizing his/her own utility. In the context of long term health insurance, the rational consumer’s objective is to maximize his utility over the long run by insuring against possible utility losses resulting from ailments. Therefore, if the consumer is rational, under certainty, that is if the consumer knew the exact health contingencies that will occur, the purchase will be made only if the resulting long run utility of the purchase is (weakly) greater than the long run utility of the consumer if he/she does not make the purchase. However, what complicates the situation is that the occurrence of some event that causes damage to health is random and the consumer does not know whether it will occur or not at the time of making the purchase. Therefore, the consumer can maximize only his/ her expected utility through buying or not buying the insurance (Varian, 1997). We now turn to the other important assumption regarding the consumer that we shall abide by – intelligence. The assumption of intelligence comes from nomenclature of game theory. Game theory is essentially a method of mathematically modeling situations of conflict or co-operation (Gibbons, 1992). Intelligent players are players who have the capacity to infer anything about the game that we, the studiers of the game are. More precisely, the implication of the players being intelligent is that if we are able to infer that a given strategy is optimal for any particular player subject to the strategy choice of the rival players, then each and every player of the game will be able to draw the same inference as well (Kreps, 1990). We shall assume that the consumer under consideration is both rational and intelligent. We model the given situation as that of a two player stage game. Player one is a ration al and intelligent consumer and Player two is Mother Nature. To keep things simple we assume that there are two possible states of the world - accident and no accident; and which one is to be realized is a decision made by Mother Nature. Suppose Mother Nature chooses the no-accident state with probability P and this probability is common knowledge. At the time of deciding on the purchase, Player 1 does not know whether he faces an accident or not. Suppose Player 1 earns X1 if the no accident state materializes and earns X2 if the accident state materializes, where X1> X2. Essentially we are assuming that the monetary value of the consumer’s health to himself if there are no accidents is X1 and this reduces to X2 if there is an accident. Define U(X) as the consumer’s utility function with U’ > 0 and U’’ U (X1) > U (X2). Now, to bring in the role of insurance in this setup, suppose that the consumer can purchase insurance against the accident state. Particularly, assume that if the consumer pays a premium ‘K’ then a lump sum transfer of ‘L’ is made to him if the accident state is realized in stage 2. Therefore, contemplating purchasing insurance can be rational only under the following condition: U (X2) < U (X2 +L-K). Mother Nature picks the state of the world. We assume her to be indifferent between the ‘

Various ways a student can pay for his education Essay Example for Free

Various ways a student can pay for his education Essay Pursuing education may be expensive, but the cost incurred during one’s education may be offset by the rewards resulting from education, which are usually long-term. Various factors determine the amount spent in education, especially college education. For instance, the level of education, type of college, and the total number of courses an individual is taking. Though there are various programs, which for education, timely saving for our education remain to be a very good start. There are several ways and payment options a students may use in order to cater for their education expenses as well as other expenses that may be incurred in the course of his or her education. For instance, through the award process of financial aid, universities and the federal government offer financial assistance to the needy. Several ways which one can use to finance for his higher level education include the following; The plan of monthly payment which is interest-free and can help one to manage his or her expenses of education by allowing one to pay tuition over several months course rather than paying lump sum amount at one time. This makes it easy for a person to pay for the education finance since it can reduce the amount one want to borrow and thus saving your money. The enrollment fee is low and there are no charges to this plan of monthly payment. This is also an effective way of paying education finances since it has different ways of payments which include: the credit card, money order, check or e-check. Other way students can pay for their education is through tuition assistance provided by the employer. Many organizations and companies offer programs of tuition assistance to their employees so as to retain them and also develop their skills and knowledge. For students who are employees of federal government or who are service member of active-duty have a chance of being eligible for assistance of tuition. A student may request his supervisor, representative of human resource or the personnel in education office as to whether benefits of tuition may be available to him or her. If the tuition benefit is available, then the student should register and pay his education bill using the tuition assistance by employer. A student may also be catered for his or her education bill by a scholarship. Scholarships are usually awarded to needy students who achieve high academic excellence, especially in high schools. Scholarships are prized highly since they represent financial aid form, which does not need to be repaid back. Both university and state, and federal scholarships are being awarded through process of financial aid. Scholarships are more often awarded on basis of financial need and academic performance. Students can also be considered if they apply for scholarship programs of such as coveted legislative scholarships. Scholarships awards by universities and colleges are based on several criteria which include financial need, academic achievement, and enrollment in a certain academic area or degree program. Furthermore, universities offer other several other programs of special scholarships for the college graduates and also for the military personnel, dependents and spouses. Student can pay for his education bill by the federal loans. As is in the case of several students, one may be in need of additional financing so as to supplement his or her savings, scholarships awards or grants. Many packages of financial aid usually offer aid in form of the federal loans. The federal loans have advantage since they offer interest rates which are low and repayment plans are flexible. Students may also be paid for their education finances by scholarships which may be awarded by organizations or companies. Several companies offer scholarships for artists, academic, athletic achievers among others. Interested students may apply for such scholarships and may be awarded. They may search those scholarships through the online search engines. Students may also choose to apply for private loans as a supplement to the federal loans so as to cater for their education bills. A student may find loan programs or lenders who offer repayment terms and interest rates which are reasonable. Grants are another means which a student may use to finance his or her higher education. Grants are financial awards which do not need to be paid back. Grants usually vary and depend on need level and enrollment status of the student. There are grants which are designated for students who are undergraduates only and they include the grants of federal pell, federal educational opportunity supplemental grants, and the part-time Maryland grants. Students can also pay their education bills through the earnings they get from the job opportunities provided the program of federal work-study. Amount awarded tend to vary according to the students need of finance and also fund availability. The work study is paid biweekly and students are paid according to number of worked hours. In conclusion, students have several means of paying their education bills and thus no student should stop learning due to lack of finance to cater for his or her education finances. References Oklahoma Higher Education. (2010). Financial Aid: Managing the cost of college. Retrieved July 24, 2010, from http://www. okhighered. org/student-center/financial-aid/

Four Phases of the Business Cycle

Four Phases of the Business Cycle ECONOMICS Q 1 Define the term Business Cycle and also explain the phases of business or trade cycle in brief? Ans: The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables.Diagram of Business Cycle (or Trade Cycle) :- The business cycle starts from a trough (lower point) and passes through a recovery phase followed by a period of expansion (upper turning point) and prosperity. After the peak point is reached there is a declining phase of recession followed by a depression. Again the business cycle continues similarly with ups and downs. Explanation of Four Phases of Business Cycle 1. Prosperity Phase : Expansion or Boom or Upswing of economy.When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as Prosperity phase.The features of prosperity are :- High level of output and trade, High level of effective demand, High level of income and employment, Rising interest rates, Inflation, Large expansion of bank credit, Overall business optimism. 2. Recession Phase: from prosperity to recession (upper turning point). The turning point from prosperity to depression is termed as Recession Phase. During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits. The businessmen lose confidence and become pessimistic (Negative). It reduces investment. The banks and the people try to get greater liquidity, so credit also contracts. Expansion of business stops, stock market falls. Orders are cancelled and people start losing their jobs. The increase in unemployment causes a sharp decline in income and aggregate demand. Generally, recession lasts for a short period. 3. Depression Phase : Contraction or Downswing of economy.When there is a continuous decrease of output, income, employment, prices and profits, there is a fall in the standard of living and depression sets in. The features of depression are :- Fall in volume of output and trade, Fall in income and rise in unemployment,Decline in consumption and demand, Fall in interest rate, Deflation, Contraction of bank credit, Overall business pessimism.In depression, there is under-utilization of resources and fall in GNP (Gross National Product). The aggregate economic activity is at the lowest, causing a decline in prices and profits until the economy reaches its Trough (low point). 4. Recovery Phase : from depression to prosperity (lower turning Point). The turning point from depression to expansion is termed as Recovery or Revival Phase.During the period of revival or recovery, there are expansions and rise in economic activities. When demand starts rising, production increases and this causes an increase in investment. There is a steady rise in output, income, employment, prices and profits. The businessmen gain confidence and become optimistic (Positive). This increases investments. The stimulation of investment brings about the revival or recovery of the economy.Thus we see that, during the expansionary or prosperity phase, there is inflation and during the contraction or depression phase, there is a deflation. Q2. Monopoly is the situation there exists a single control over the market producing a commodity having no substitutes with no possibilities for anyone to enter the industry to compete. In that situation, they will not charge a uniform price for all the customers in the market and also the pricing policy followed in that situation? Ans: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.In a monopoly market, factors like government license, ownership of resources, copyright and patent and high starting cost make an entity a single seller of goods. All these factors restrict the entry of other sellers in the market. Monopolies also possess some information that is not known to other sellers. Characteristics of monopoly: Only one single seller in the market, There is no competition, There are many buyers in the market, The firm enjoys abnormal profits, The seller controls the prices in that particular product or service and is the price maker, Consumers don’t have perfect information, There are barriers to entry. These barriers many be natural or artificial, The product does not have close substitutes. Advantages of monopoly Monopoly avoids duplication and hence wastage of resources. Due to the fact that monopolies make lot of profits, it can be used for research and development and to maintain their status as a monopoly. Monopolies may use price discrimination which benefits the economically weaker sections of the society. Monopolies can afford to invest in latest technology and machinery in order to be efficient and to avoid competition. Disadvantages of monopoly Poor level of service, No consumer sovereignty, Consumers may be charged high prices for low quality of goods and services, Lack of competition may lead to low quality and out dated goods and services. Price Discrimination : It is the ability to charge different prices to different individual. Need for price discrimination: increase output and profit. Buying pattern of individuals will be different. Increase the economic welfare. Eg: Air tickets, movie tickets , discount coupons etc. multiple types of price discrimination: First-degree price discrimination is an attempt by the seller to leave the price unannounced in advance and charge each customer the highest price they would be willing to pay for the purchase. A business may benefit by offering different prices to those who purchase in larger volumes because either they can increase their profit with the increased volume sales or their costs per unit decrease when items are purchased in volume. Businesses can create alternative pricing methods that distinguish high-volume buyers from low-volume buyers. This is second-degree price discrimination. Third-degree price discrimination is differential pricing to different groups of customers. One justification for this practice is that producing goods and services for sale to one identifiable group of customers is less than the cost of sales to another group of customers. For example, a publisher of music or books may be able to sell a music album or a book in electronic form for less cost than a physical form like a compact disc or printed text. Q3 Fiscal policy is a package of economic measures of the government regarding public expenditure, public revenue, public debt or borrowings. It is very important since it refers to the budgetary policy of the government. Explain the fiscal policy and its instruments in detail? Ans: Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nations economy. It is the sister strategy to monetary policy through which a central bank influences a nations money supply. instruments of Fiscal Policy are Automatic Stabilizer and Discretionary Fiscal Policy: Automatic Stabilizer: The tax structure and expenditure are programmed in such a way that there is increase in expenditure and decrease in tax in recession and decrease in expenditure and increase in tax revenue in the period of inflation. It refers to built-in response to the economic condition without any deliberate action on the part of government. It is called built- in- stabilizer to correct and thus restore economic stability. It works in the following manner, Tax revenue: Tax revenue increases when the income increases; as those who were not paying tax go into the higher income tax bracket. When there is depression, the income decreases and many people fall in the no-income-tax bracket and the tax revenue decreases. ii) Discretionary Fiscal Policy: Under this, to stabilize the economy, deliberate attempts are made by the government in taxation and expenditure. It entails definite and conscious actions. Instruments of Fiscal Policy: Some important instruments of fiscal policy are: 1.TAXATION: Taxation is always a very important source of revenue for both developed and developing countries. Tax comes under two headingu2013Tax on individual(direct tax) and tax on commodity (indirect tax or commodity tax). a) Direct tax includes income tax, corporate tax, taxes on property and wealth. Indirect tax is tax on the consumptions. It includes sales tax, excise duty and custom duties. Direct tax structure can be divided into three bases- Progressive tax: Progressive tax says that higher the level of income, greater the volume of tax burden you have to bear. This means as income increases, the tax contribution should also increase. Low income group people pay low tax, whereas the high income group people pay higher tax. 2 Regressive tax: It is theoretically possible, though no government implements such tax structure, because that leads to unequal distribution of income. As your income increases the contribution through tax decreases. Low income people will pay more and high income people will pay less. Proportional tax: When the tax imposed is irrespective of the income you earn, every income group, high or low pay the same amount of tax. b) Indirect Tax Or consumpyion tax: tax which is iimposed on every unit of product . Q4 Explain the various methods of forecasting demand? Ans : Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms. Methods of forecasting demand: Assumptions For many goods, the length of the product cycle is shrinking. Not only does this make it more difficult to build a historical database, it accentuates the need to forecast correctly. Computer technology makes it possible to adjust pricing instantly and to modify sales promotions on the run. Without accurate historical information to measure the impact of price changes, the business owner may be forced to experiment. Sales performance of other goods with similar product attributes may serve as proxies for a current product with no track record. Trend Analysis If you have historical data or if you can create it from related products trend analysis is the first step in demand forecasting. Plotting sales over time will reveal the presence of a sales trend if one exists. If there are aberrations â€Å"hiccups† in the trend you can look for explanations, which could include price, weather or demographic changes. If you are proficient with spreadsheet programs, you can chart data points and insert a trend line over the data. A more sophisticated approach is using least squares regression analysis which can also be done with standard spreadsheet software. Qualitative Forecasting A more subjective approach uses expert opinions to predict demand. Especially useful when there is a lack of historical data, relying on the collective opinion of experts makes sense. Begin with an analysis of the marketplace, reviewing the economic conditions. Obtain as much information about competitors’ performance as you can. Then gather opinions from a variety of sources within your business. Include the owner, sales manager, accountant, attorney and any others whose opinion you value. If you wish, you can get outside opinions as well. Qualitative forecasting is based on the consensus view of your panel as you digest and aggregate their opinions. Forecasting with Economic Indicators Depending on the products you sell and the customers who buy them, basing your demand forecast on one or more economic indicators may be an effective method. This style of demand forecasting works better with industrial buyers rather than retail. First, find the indicators that relate to your business. For example, small businesses in construction-related work can look to housing starts, building permits, loan applications and interest rates for solid indicators of the future. Businesses in agriculture can find clues to the future from farm income, interest rates and weather forecasts. The Departments of Commerce and Agriculture release statistics on an ongoing basis. Agricultural Extension Services and other state agencies provide complementary data Q5 Define monopolistic competition and explain its characteristics? Ans: Monopolistic Competition: A market structure in which several or many sellers each produce similar, but slightly differentiated products. Each producer can set its price and quantity without affecting the market place as a whole. Monopolistically competitive markets exhibit the following characteristics: Each firm makes independent decisions about price and output, based on its product, its market, and its costs of production. Knowledge is widely spread between participants, but it is unlikely to be perfect. For example, diners can review all the menus available from restaurants in a town, before they make their choice. Once inside the restaurant, they can view the menu again, before ordering. However, they cannot fully appreciate the restaurant or the meal until after they have dined. The entrepreneur has a more significant role than in firms that are perfectly competitive because of the increased risks associated with decision making. There is freedom to enter or leave the market, as there are no major barriers to entry or exit. A central feature of monopolistic competition is that products are differentiated. There are four main types of differentiation: Physical product differentiation, where firms use size, design, colour, shape, performance, and features to make their products different. For example, consumer electronics can easily be physically differentiated. Marketing differentiation, where firms try to differentiate their product by distinctive packaging and other promotional techniques. For example, breakfast cereals can easily be differentiated through packaging. Human capital differentiation, where the firm creates differences through the skill of its employees, the level of training received, distinctive uniforms, and so on. Differentiation through distribution, including distribution via mail order or through internet shopping, such as Amazon.com, which differentiates itself from traditional bookstores by selling online. Firms are price makers and are faced with a downward sloping demand curve. Because each firm makes a unique product, it can charge a higher or lower price than its rivals. The firm can set its own price and does not have to ‘take it from the industry as a whole, though the industry price may be a guideline, or becomes a constraint. This also means that the demand curve will slope downwards. Firms operating under monopolistic competition usually have to engage in advertising. Firms are often in fierce competition with other (local) firms offering a similar product or service, and may need to advertise on a local basis, to let customers know their differences. Common methods of advertising for these firms are through local press and radio, local cinema, posters, leaflets and special promotions. Monopolistically competitive firms are assumed to beprofit maximisers because firms tend to be small with entrepreneurs actively involved in managing the business. There are usually a large numbers of independent firms competing in the market. Q6 When should a firm in perfectly competitive market shut down its operation? Ans Definition of Perfect Competition A market structure in which the following five criteria are met: 1) All firms sell an identical product; 2) All firms are price takers they cannot control the market price of their product; 3) All firms have a relatively small market share; 4) Buyers have complete information about the product being sold and the prices charged by each firm; and 5) The industry is characterized by freedom of entry and exit. Perfect competition is sometimes referred to as pure competition. The reason for firm shut down in perfect competition A perfectly competitive firm is presumed to shutdown production and produce no output in the short run, if price is less than average variable cost. This is one of three short-run production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and loss minimization (if price is greater than average variable cost but less than average total cost). A perfectly competitive firm guided by the pursuit of profit is inclined to produce no output if the quantity that equates marginal revenue and marginal cost in the short run incurs an economic loss greater than total fixed cost. The key to this loss minimization production decision is a comparison of the loss incurred from producing with the loss incurred from not producing. If price is less than average variable cost, then the firm incurs a smaller loss by not producing that by producing. One of Three Alternatives: Shutting down is one of three short-run production alternatives facing a perfectly competitive firm. All three are displayed in the table to the right. The other two are profit maximization and loss minimization. With profit maximization, price exceeds average total cost at the quantity that equates marginal revenue and marginal cost. In this case, the firm generates an economic profit. With loss minimization, price is greater than average variable cost but is less than average total cost at the quantity that equates marginal revenue and marginal cost. In this case, the firm incurs a smaller loss by producing some output than by not producing any output.

Lebanon and its main problems Essay -- essays research papers fc

Lebanon Lebanon is a Middle Eastern country that is delimitated to the west by the Mediterranean and to the east by the Syro-African Depression. Lebanon borders Syria to the north and to the east, and Israel in the south. Lebanon’s climate is â€Å"Mediterranean†; mild to cool, wet winters, and hot, dry summers. Some of Lebanon’s natural resources are the limestone, salt, water and iron ore. Like any other country there are natural hazards such as dust storms and sandstorms. [ Population pressures: growth, urbanization, immigration. Lebanon’s population consists of 3, 777, 218 (this data is from July, 2004) Age structure:  Ã‚  Ã‚  Ã‚  Ã‚  ~ 0-14 years: 26.9% (male 517,356; female 496,888)   Ã‚  Ã‚  Ã‚  Ã‚   2004 estimation* ~ 15-64 years: 66.3% (male 1,197,430; female 1,305,339)   Ã‚  Ã‚  Ã‚  Ã‚   ~ 65 years and over: 6.9% (male 117,930; female 142,275) Median age: total: 26.9 years male: 25.9 years female: 27.9 years (2004 est.) Population growth rate: 1.3% (2004 est.) Birth rate: 19.31 births/1,000 population (2004 est.) Death rate: 6.28 deaths/1,000 population (2004 est.) Net migration rate: 0 migrant(s)/1,000 population (2004 est.) Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.92 male(s)/female 65 years and over: 0.83 male(s)/female Total population: 0.94 male(s)/female   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Infant mortality rate: total: 25.48 deaths/1,000 live births male: 28.21 deaths/1,000 live births female: 22.61 deaths/1,000 live births (2004 est.) Life expectancy at birth: total population: 72.35 years   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   male: 69.91 years  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   female: 74.91 years Total fertility rate: 1.95 children born/woman (2004 est.) [ Economic issues: The Lebanese economy is â€Å"service-oriented: main growth sectors include banking and tourism†. There are no limitations on foreign exchange or capital movement, and â€Å"bank secrecy† is strictly enforced. Lebanon recently adopted a law to combat ‘money laundering’. Moreo... ...clared this region not to be Lebanese territory, but Lebanese resistance occasionally launches attacks against Israeli positions within it. dPossible steps to solve the conflict: The country has been able to recover from the effects of civil war throughout the years thanks to tourism. Moreover some other ways for Lebanon to recover would be foreign investment; other companies establishing their businesses in Lebanon. War in Lebanon ended in 1989 due to the â€Å"Taif-Agreement† sponsored by the ‘Arab League’. And in September 2, 2004; the United Nations Security Council, approved the â€Å"Resolution 1559† which demanded total withdrawal of Syria from Lebanon. Another fact is that since there are many Palestinians in Lebanon their civil rights cannot be granted because of problems in the past. Furthermore Palestinians could be useful for Lebanon’s economic issues if they are allowed to improve their economic and social situation; in other words integrate them. Nevertheless Palestinians have to conform to the Lebanese democratic traditions. BIBLIOGRAPHY: ~ http://en.wikipedia.org/wiki/Lebanon ~ http://www.arts.mcgill.ca/mepp/PRRN/papers/haddad.html ~ CNN news

Revenue Cycle Management Essay -- essays research papers

Synopsis - Integrated solution for Revenue Cycle Management and Medical Records Overview Physician practices are being called on to do more than ever before. Today’s physicians must treat more patients, document interactions more meticulously, wrangle with more complex managed care rules, keep track of an ever-expanding array of drugs, submit and track claims and pay rising malpractice insurance bills. In many cases, physicians must treat 20 percent more patients than they did five years ago to generate the same revenue. In the face of these burdens, some practices are struggling to remain financially viable. For many practices, the biggest impediment to meeting these challenges is continual administrative burden, a lack of automated clinical documentation, and inefficient practice workflow systems. Despite the dramatic advances in many areas of healthcare technology over the past several years, most physician practices—especially small and midsize ones—are still using the same manual and paper-based office management systems they’ve used for decades. With mounting pressure from insurers, government agencies, and patients, physician practices need to reexamine the ways they work and interact. As physicians see more patients and insurers demand reformed documentation for rapid processing of claims, the manual healthcare systems that were adequate in the past will become less and less able to meet new demands. The problem The paperwork burden among solo/small group physician...

Creative Accounting and Fraud: A Violation of Ethical Principles Essay

There are numerous books, references and guidelines that are available that provide detailed accounting standards. Yet, especially over the past few years, these same standards were neglected or deliberately misapplied for personal gain. There had been a number of high profile cases that involved fraudulent financial reporting. At the top of the list were Enron and Worldcom which were racking up losses but were able to cover it up and even reported earnings. Merck recorded billions of payments which it never collected. For several years, Xerox improperly distorted accounting rules to boost its profits which were falsely reported at over a billion dollars. These big-scale accounting frauds were not the exclusive domain of US companies. Italy’s 8th largest company included non-existent bank accounts on its books which allegedly ciontained billions in deposits (Badawi 13 & 15). The motivation behind the corporate practice of creative accounting varies from concealment of poor performance to raise stock value, for personal gain in terms of bonus pay-outs, to increase worth to get loans. For corporate accountants, it could be due to internal and external pressures to meet expectations or in deference to other business relationships such as a consultancy retainership with the client under audit which is essentially a conflict of interest, or simply a personal lack of character to stand up for honor, integrity and truth. A manipulation of the actual figures and financial status is nothing but fraud. Regardless of how much it is rationalized, it is tantamount to lying and this type of dishonesty for personal gain runs contrary to any known ethical principle. Such behavior has greatly undermined the reputation of the accounting profession for having seemingly lost its ethical standards. According to Cottell, Jr. & Perlin, there are two dominant ethical systems. One is Utilitarianism which â€Å"looks to consequences of acts for moral justification†. Actions are guided by decisions which weighed the good against bad results. The other is Deontologism from the Greek word deon meaning duty. The focus is not on consequence but on whether the act itself is correct or not. It works under the assumption that â€Å"there are duties, rules and principles that are inherently valuable and should never be violated† (3-4). Inasmuch as different individuals will react differently to the same situation depending on which ethical system is personally more dominant, organizations for accountants and auditors had adapted a code of ethics way back in the 1980s to serve as a guide for appropriate professional behavior. In the academe, ethics instructions had already been integrated into the curriculum through situational cases, simulated techniques and interviews. In the corporate setting, a top down approach is being employed to promote and establish a code of conduct that includes integrity and responsibility. However, having a list of ethical principles to follow is merely the ground work for a foundation. In the wake of the financial reporting scandals, there were calls for reform and in 2002, the U. S. Sorbones-Oxley Act was passed as law. The Act created a necessary oversight board to look into audits. It can establish controls, investigate probable violations and sanction the guilty party. The senior managers were made liable to for any financial disclosure by the company and must certify this. Disagreement between the auditors and management was required to be included in the report. Moreover, this does not only apply to U. S. companies but even the non-U. S. firms with trading in the U. S. This paved the way for further enactment of compliance practices on a global scale. Ethical principles allow accounting professionals to develop a strong character that will put honor and integrity back into the profession and once more raise investor confidence. To reinforce it, management support, corporate governance and oversight by regulatory bodies are required for the individual to successfully adhere to these principles. Works Cited Badawi, Ibrahim M. â€Å"Global Corporate Accounting Frauds and Action for Reforms. † Review of Business 26. 2 (2005): 8+ Cottell Jr, P. G. and T. M. Perlin. Accounting Ethics: A Practical Guide for Professionals. Westport, CT: Quorum Books, 1992.