Monday, July 13, 2020

How to Trick Yourself Out of Being Lazy

How to Trick Yourself Out of Being Lazy Being lazy is a wonderful feeling. The guilt of knowing you should probably be doing something more productive can be exhilarating. Laziness also isn’t something to fully avoid â€" sometimes it really is for the best to rest for a bit and recharge those batteries.Yet, laziness does also have an ugly side. Being lazy can easily snowball â€" if I haven’t done the washing up in the previous three days, why shall I do it now â€" and your inactions can have serious consequences in your personal and work life. What can you do when “I’ll do it tomorrow” seems like the easier option and getting started feels like climbing Mount Everest? You can trick yourself out of being lazy by implementing these clever strategies and habits to your daily routine. These tricks work whether you’re facing household chores or work problems.UNDERSTAND YOUR LAZINESSBefore I outline some tricks and ways you can stop your laziness in its tracks, it is helpful to consider spending time thinking what is causing you to be lazy.Why are you putting off certain tasks? If you know the reason, you’ll be better able to eliminate avoid the triggers that make you want to jump on the back of the couch.When you notice yourself procrastinating or putting things off, stop for a minute and ask yourself:Am I finding this task too difficult?Do I feel I have too many things to do and I’m scared I don’t have the time to finish them?Am I scared of the consequences of failure or not being able to achieve the tasks?Do I h ave zero energy to actually do anything?Where is my motivation?Answering these questions will help you find the root cause to laziness. Let’s say you actually feel like there’s no energy to do anything. Your diet or sleep routine might be off the whack and you need to fix it first. If you’re putting off things because they seem too difficult, you can start training yourself in the particular task.Can’t finish the project? Study research techniques and become a better writer, for instance. If you feel you run the wrong way, hire a personal coach to help you. Writing the report seems too much with too little time? Prioritize your things and make space for the most urgent things â€" you can even ask for an extension on some deadlines by explaining your workload.Analyzing why you are lazy and what it is specifically in those tasks that you hate can give you better tools to tackle them. You notice the real problem and you can find solutions that help.AVOID THE ‘HAVING TO’ ATT ITUDEWhen a new e-mails lands on your desk at the end of the workday, your instant reaction might be “Not this again, why do I have to do this now”. I would know, as I’ve stared at the dish pile a lot of times saying “Do I have to do them?”The problem is that when you think things in terms of ‘have to’ rather than ‘want to’ you find them depressing, time-consuming and not fun. Things we have to do are generally not something most of us enjoy â€" the whole verb makes it feel like we are being forced to do something.So, start changing the attitude and things you say to yourself to something more nurturing and inspiring â€" find the passion and the reason behind your tasks.For example, when I’m faced with a pile of dishes I think, “Here’s an example of the tasty dish I enjoyed with my friends just now and after I wash these I have another opportunity to have a good time.” If you don’t feel like answering the e-mail, think the opportunities of replying â€" pe rhaps it can lead to a new contract and you can finally go on vacation with the extra money! CLEAR OUT THE DIFFICULT TASKS FIRSTI hate doing the dishes and opening envelopes. You probably have your own list of things you don’t like doing, but which need doing.These annoying things are often the things that cause us feel lazy â€" once we skip then, we can easily start thinking other things are also not worth doing at that moment. Therefore, if you are able to clear out the difficult tasks early in the day, you are less likely to feel overwhelmed by the rest of the day.As I started opening my letters first thing in the morning, I stopped having to dread this moment for the rest of the day. I felt accomplished about the task, especially so since I don’t like it. The same can apply to almost anything. If e-mails are your pet peeve, read and reply early in the morning and then stop worrying about them.   Clearing out the annoying tasks first ensures they are done when you have the right kind of energy to power through.START WITH AN EASY TASKOn the other hand, if you can’t f ind any tasks you hate that much and you have a tendency to just start being lazy in general, it can be useful to start with easier tasks.The benefit of doing a few extremely easy tasks it the morning is the way it sets a precedent for the rest of the day. Once you get that sense of accomplishment, you create an opposite snowball to being lazy â€" you start doing things one after another. You often get to that flow state of “Oh I just replied to that e-mail, I might as well do all of them.”It can be clever to leave easy tasks for the next day rather than to finish them at the end. For example, if you have a simple e-mail to write, which doesn’t require a lot of effort and it doesn’t require immediate attention, send it in the morning to kick-start your day.SET TIMERSSetting a timer is a great trick for a boost in productivity. You can set timers in two ways to snatch yourself out of laziness:Set a timer for being lazy and doing absolutely nothing. If you are feeling super ti red and low energy, it can be helpful to just stop everything for a second â€" it’s almost like meditating for a bit. Set a 10-minute alarm and spend the time doing something refreshing (make sure it doesn’t relate to things you should be doing) such as watching funny cat videos on YouTube or sitting still, eyes closed.Set a time for doing a task you don’t enjoy doing. In most situations, the timer works best when it’s for getting things done. If you hate the dishes, don’t approach them with the “have to do it all”-attitude. Instead, set a timer for 10-minutes after which you can stop if you want. The idea here is that a set timeline makes the task seem less daunting; you’re not approaching it with the “I’ll stop until I’m done” mindset, but you know you can just take a break in a bit. 30-minutes of writing sounds a lot less exhausting than writing the whole report (which could take a day!). Furthermore, simply getting started with something can actually help you finish the task. When your alarm goes off and you only have one e-mail to reply to, you probably won’t stop, but will just get it finished. Even if you don’t finish the task or you’re not inspired to continue beyond the time you set for the task, you’ve still done something. Writing the report for 10-minutes is much better than spending 10-minutes thinking you should be writing it.In fact, the above is all tied neatly in the 2-minute rule by David Allen. The author of Getting Things Done analyses task based on whether they take two minutes to do or not. If the act can be performed in less than 2-minutes, Allen does it immediately. So, if you notice an e-mail and you realize the reply will only take a minute, you write the reply immediately.It’s an effective strategy of clearing those small things out of the way â€" you don’t see a build up of e-mails if you keep clearing them as they come along. This can work for many things, such as cleaning the house. Noticed your dusty bookshelf? If it takes just two minutes to dust it then you might as well do it now! BREAK TASKS INTO PIECESAnother way to trick yourself out of being lazy is by creating an illusion of achieving more and, in a way, having more to do. What I mean is not to come up with mindless things to do, but to break down your existing tasks to smaller pieces.It’s easy to feel lazy when you have a giant project staring back at you â€" the depth of the task can overwhelm. By breaking it down into smaller chunks, you not only feel you’ve accomplished something more often, you also make the task more manageable.Let’s say you need to write a big research project. If your to-do list looks like this:BIG RESEARCH PROJECT!It definitely feels scary and overwhelming. On the other hand, if you break it down to smaller chunks, it can look much more appetizing and approachable:List book sourcesCreate draft outlineContact intervieweesSet interview dateConduct interviewsWrite the draftDo chapter o neDo chapter twoDo chapter threeSend draft to editorRe-write based on feedbackYes, it has more items, but they aren’t a huge giant task anymore but manageable chunks that won’t take forever to achieve. Not to mention, you realize how much you’ve done once you start crossing things over as ‘done’.START THE DAY WITH EXERCISE“Go out and have a jog” might not sound like the most helpful advice when you are feeling lazy and want to snap out of it. Indeed, if you weren’t lazy in the first place, you might already be running around the block. But you can beat laziness in other areas of your life if you are just able to put on those working out clothes.Exercise releases the so-called feel-good hormones. A brisk walk gives you better mood and helps you feel more energetic. If you manage to do a bit of exercise, the energy can help carry you through other tasks. For this reason, you should start your day with exercise! It doesn’t require a lot of thinking, it doesn’t requi re a lot of time and the benefits can ensure the rest of the day is super productive.Source: Visually websiteCHANGE THE SCENERYSometimes laziness just needs a kick in the butt. If you’re staring at the wall in your office or sitting on the couch not doing anything productive, changing the scenery can help. We’re creatures of habit and being lazy in a specific environment can simply feed our laziness.Being in a different environment stimulates our mind in a different way and this can be helpful in getting things done. What’s more, research suggests surrounding yourself with people who are hard at work will boost your productivity as well â€" no wonder a busy coffee shop with people working on their laptops can help you feel more inspired to do the same (instead of just browsing social media).If you’re able to leave your office during the day, then go to a coffee shop, the park or the nearby library and take your work with you. The new surroundings might give you an energy boo st and inspire you to finish off a project that’s been causing you problems. Similarly, leaving the house for a walk outside or a trip to a different shop can help you feel more invigorated and sort out some errands in the meantime.Don’t worry if you can’t swap the office to a swanky park. You could perhaps just try a different workstation, work from an empty conference room or sit at the company cafeteria.CREATE THE PERFECT ENVIRONMENT FOR WORKIf changing the scenery is impossible for you, fear not! You can enjoy the benefits of a good work environment even when you can’t swap the walls around you. The key to a productive work environment requires the following ingredients:Lights, lights, babyLighting can have a huge impact on productivity. Research has provided strong evidence to support natural light’s ability to boost your mood and productivity.It’s not just that natural lighting is good for you, but the wrong kind of lights can have a negative impact on your product ivity. You can probably subscribe to the feeling of fatigue when staring the computer screen for a long time.Therefore, your work environment should have plenty of natural light â€" don’t cover up the views with curtains and place the desk near a light source â€" and you want to use apps such as F.lux that change the colour temperature of your screen based on the time of day.Turning up the heatA room’s temperature is another major factor in productivity. Cornell University studied the impact of temperature on productivity and found there to be an optimal temperature to guarantee good results at work.According to the research, an optimal room temperature falls around 25 degrees Celsius. Anything below or a lot above will lead to mistakes and lack of motivation â€" if you’re uncomfortable, it will be hard to work.The right soundtrackIf you can’t go to the coffee shop, you should create the coffee shop around you. Interestingly, your productivity would benefit from that ambient buzz of a coffee shop. It’s about finding the sweet spot â€" you want just the right kind of noise pollution to allow your mind to wonder, but not loud enough to cause a distraction.It can be a good idea, therefore, to test having a recording of a coffee shop, the sea or other such recording playing in the background while you’re trying to get things done.Furthermore, if you are looking to do chores or exercise, upbeat music can also help you be more productive, even with the volume turned up! Music increases the production of dopamine, which can boost your mood and make you feel better about the day and get things done.As little distractive things as possibleIf you work in a room full of fun things to do, you probably will test your willpower a bit too much.Removing things like the TV, radio, social media, cute cat videos, nail polish and other such distraction (feel free to add your own to the list!) will limit your risk of doing something unproductive. The fewer distractions you have, the better. Source: Psychology Today post on distractionsMAKE ACHIEVING THINGS EASYAnother related point on the importance of the environment is the ease of doing things. As I eluded above, you don’t want to have unnecessary distractions luring you away from your mission. While you can and should certainly remove distractions from sight as much as possible, there is another alternative. You can make achieving things easier.What this means is making your tasks as easy as possible to start. Let’s say you want to exercise more. By placing clean running shoes right next to the front door or on the couch, you can ensure going for a jog is smoother.Similarly, if you want to get more writing done at the desk, ensure the environment is inviting, the laptop is recharged and there’s a glass of water waiting. If achieving things is easier and less hassle inducing, you have fewer excuses to stop you from getting started.The trick can apply to almost anything â€" want to read more books? Then place the m next to the bed or the couch and keep your Kindle in your workbag. Find ways to make starting those tasks a bit easier and make being lazy a bit harder. If your TV is unplugged after you come back home, you might be more inclined to visit the gym (especially if the gym clothes are nearly packed!).HAVE AN ACCOUNTABILITY BUDDYYou can trick yourself out of being lazy by ensuring you’re not accountable just for yourself. Teaming up will provide you with an extra incentive to finish your tasks on time and putting in extra effort â€" especially if your partner is motivated.If going to the gym seems impossible, then ask a friend to go with you. You can’t just decide not to go â€" you also have to inform the other person you can’t (or, well, don’t want to) go to the gym. It makes being lazy just a tiny bit harder. It’s not just about you anymore; it’s about the other person.Similarly, if you have a big research project to finish, you could ask a colleague or a friend for help and for the opportunity to go over the findings with them. Once you set a date for this review meeting, you know you must get things done. The person would have cleared his or her calendar for you and you don’t want to disappoint them.So, pick an accountability buddy with a good track-record of achieving things, stay in regular contact over the progress and you’ll soon find you’re being much more productive.Other people are a popular motivator and a source of inspiration. Even if you can’t find an accountability buddy, how about listening to an inspiring talk? For example, this TED talk by Isabel Allende is a great way to start your day when you’re feeling the slump: THE BOTTOM LINETricking yourself out of being lazy isn’t rocket science and it isn’t just a matter of sucking it up and doing it. Little changes to the way you think can have a big impact on your productivity.Furthermore, by changing the way you do things â€" from setting timers to swapping routines â€" yo u can guarantee better results in terms of finishing things on time.Finally, being lazy is often about the environment and if you can trick your brain into feeling more inspired and motivated by simply breaking away from your usual surroundings, you can find yourself being more productive.

Tuesday, June 30, 2020

A Case Study of UK Listed Super Markets - 3850 Words

Effect of Working Capital on Profitability: A Case Study of UK Listed Super Markets (Research Paper Sample) Content: Effect of Working Capital on Profitability: A Case Study of UK Listed Super Markets3874 WordsAbstractEffective working capital management is necessary for business to make adequate profit without compromising liquidity needs of a firm. There is overwhelming evidence from the past studies that working capital is negatively correlated to profitability. Yet, some studies find a positive correlation between the two variables in some cases. This study sough to explore how working capital of 4 UK listed supermarkets affects the profitability of the firms between 2007-2013. The profitability was measured by operating profit margin while working capital has been measured using working capital ratio and quick ratio. Both Pearson correlation and regression analysis was used to test the relationship. Consistent with past studies, a negative correlation is found. However, contrary to the findings of the past studies, the effect of both independent variables on operating profit ma rgin is insignificant. Thus, while supermarkets may need to lower their working capital to raise profits, the detriment in the profit will not be significant even if high working capital is maintained. The sample size was however relatively small compared to past studies, and may have led to sampling errors. Future studies need to enlarge the sample and period of study for more rigor.Keywords: UK listed supermarkets, operating profit margin, working capital ratio, quick ratio, profitability , working capitalTable of ContentsTOC \o "1-3" \h \z \u Abstract PAGEREF _Toc380131784 \h 21.0 Introduction PAGEREF _Toc380131787 \h 52.0 Research aims and Objectives, Questions and/or Hypotheses PAGEREF _Toc380131790 \h 63.0 Literature Review PAGEREF _Toc380131803 \h 74.0 Data and Methodology PAGEREF _Toc380131813 \h 105.0 Results PAGEREF _Toc380131824 \h 115.1 Profitability and Working Capital Ratio PAGEREF _Toc380131825 \h 115.2 Profitability and Quick Ratio PAGEREF _Toc380131831 \h 145.3 : Multiple Regression: Working Capital Ratio and Quick Ratio PAGEREF _Toc380131836 \h 166.0 Conclusion PAGEREF _Toc380131839 \h 187.0 References PAGEREF _Toc380131841 \h 19List of Tables TOC \h \z \c "Table"Table 1: Correlations- operating profit margin and working capital ratio PAGEREF _Toc380131959 \h 11Table 2: Model Summary Operating Profit Margin vs. Working Capital Ratio PAGEREF _Toc380131960 \h 12Table 3: ANOVAb Operating Profit Margin vs. Working Capital Ratio PAGEREF _Toc380131961 \h 13Table 4: Coefficientsa -Operating Profit Margin vs. Working Capital Rati PAGEREF _Toc380131962 \h 13Table 5: Correlations - operating profit margin and quick ratio PAGEREF _Toc380131963 \h 14Table 6: Model Summary- operating profit margin and quick ratio PAGEREF _Toc380131964 \h 15Table 7: ANOVAb- - operating profit margin and quick ratio PAGEREF _Toc380131965 \h 15Table 8: Coefficientsa operating profit margin and quick ratio PAGEREF _Toc380131966 \h 15Table 9: Model Summary Mul tiple Regression PAGEREF _Toc380131967 \h 16Table 10:ANOVAb - Multiple Regression PAGEREF _Toc380131968 \h 16Table 11:Coefficientsa-Multiple Regression PAGEREF _Toc380131969 \h 171.0 IntroductionThe value of working capital a firm is tremendously recognised in the existing body of knowledge. Various scholars assert the view that it is through dynamic management of working capital that solvency, liquidity and profitability of a firm is maintained (Filbeck Krueger, 2005; Mukhopadhyay, 2004; Raheman Nasr, 2007). Working capital is a descriptive term that refers to the difference between the current assets and current liabilities (WC=CA-CL) (Padachi et al., 2008). In a more specific context, working capital may be described as gross or net where the gross working capital essentially refers to the current assets while the net working capital is the value obtained after subtracting the current liabilities from the current assets (Yadav et al, 2009). As used in this study, the working ca pital will be referring to the net working capital. According to Arnold (2008), heavy investment in working capital is likely to lead to high level of liquidity in a firm at the expense of profit generation, because there will be low investment in the fixed assets required for profit generation. The profit generation may, however, be compromised because there are limited fixed assets invented in generation of more funds (Deloof, 2003). Besides, it is likely to result into a situation where there are excessive inventories, so that the firm again spends more on operation cost attributed to the management of the excessive inventory associated with high working capital (Raheman Nasr, 2007). On the other hand, huge investment into working fixed assert and corresponding limited investment in working capital is likely to lead to a situation where there is good potential for profit generation (from the fixed assets) while the firm will be struggling with liquidity and solvency difficultie s (Padachi, 2006). This results because the firm will not be having adequate liquidity capacity to meet the short term financial obligation, a scenario that may easily trigger bankruptcy and liquidation process (Vishnani Shah, 2007).Against the backdrop of the critical role of working capital, it is vital to ascertain the definitive, and possibly predictable relationship between working capital and profitability so that effective working capital management may e undertaken in a manner that leads to realization of desirable profit standards. This paper explores how working capital affects the profitability of UK listed supermarkets. Whereas the relationship between working capital and profitability has been a subject of massive scholarly attention, the past studies have not been specific to UK supermarkets. The study will therefore add to the existing body of knowledge on the two variables, by taking an industry specific approach to this significant theme. From practical perspective , the study is expected to contribute knowledge necessary for effective liquidity and profitability of supermarkets management, more so in UK 2 where the study is focused.2.0 Research aims and Objectives, Questions and/or HypothesesThe primary aim of this research is to examine the effect of working capital on profitability. In both cases, relevant ratios have been used, whereby profitability is measured by operating profit margin while working capital is measured by working capital ratio and quick ratio. Consistent with the overall aim of the study, this study seeks to attain the following specific objectives: 1 To ascertain how UK supermarketsà ¢Ã¢â€š ¬ working capital ratio correlates with their operating profit margin. 2 To ascertain how UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin. 3 To determine how the UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio multiply correlates with their operating profit margin.Thus, the stu dy seeks to address the following research questions: 1 What is the relationship between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio does correlates with their operating profit margin? 2 What is the relationship between UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin? 3 What is the relationship between the UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio multiply correlates with their operating profit margin?Based on the findings of the past studies in other sectors or countries, the study will proceed from the following hypotheses: * H1: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio correlates with their operating profit margin. * H2: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin. * H3: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio and their operating profit margin.3.0 Literature ReviewThe relationship between working capital and profitability has been a subject of intense scholarly attention, even though various studies have used various working capital and profitability metrics. As will be illustrated, majority of the studies have used ratios of these variables rather than the actual figures of working capital and profits. There are, however, a few studies that have non-ratio values to ascertain the relationship.Shah and Sanaà ¢Ã¢â€š ¬s (2006) study was based on five year profitability and working capital performance of Pakistani oil and gas sector. They used various working capital rations, namely inventory turnover, quick ratio, current ratio, average payment period and average collection period to measure working capital. Gross profit was use as a measure of profitability. Using correlation analysis, the study established a negative correlation between all measures of working capi tal and gross profit, with the exception of days payable. A loosely similar study was that of Padachi (2006) who used receivables and inventories to explore how working capital management correlated with the performance of a firm. Similar to Shah and Sana (2006), the study established a negative correlation between the working capital variables and firm performance.Like Shah and Sana (2006), Nasr and Raheman (2007) explored the relationship between working capital and profitability of Pakistani listed companies over a six year period, ranging from 1999-2004. However, in addition to current ratio as a measure of working capital, they also used cash conversion cycle. Another difference was in their measure of profitability; unlike Shah and Sana (2006) who used gross profit, Nasr and Raheman (2007) used net... A Case Study of UK Listed Super Markets - 3850 Words Effect of Working Capital on Profitability: A Case Study of UK Listed Super Markets (Research Paper Sample) Content: Effect of Working Capital on Profitability: A Case Study of UK Listed Super Markets3874 WordsAbstractEffective working capital management is necessary for business to make adequate profit without compromising liquidity needs of a firm. There is overwhelming evidence from the past studies that working capital is negatively correlated to profitability. Yet, some studies find a positive correlation between the two variables in some cases. This study sough to explore how working capital of 4 UK listed supermarkets affects the profitability of the firms between 2007-2013. The profitability was measured by operating profit margin while working capital has been measured using working capital ratio and quick ratio. Both Pearson correlation and regression analysis was used to test the relationship. Consistent with past studies, a negative correlation is found. However, contrary to the findings of the past studies, the effect of both independent variables on operating profit ma rgin is insignificant. Thus, while supermarkets may need to lower their working capital to raise profits, the detriment in the profit will not be significant even if high working capital is maintained. The sample size was however relatively small compared to past studies, and may have led to sampling errors. Future studies need to enlarge the sample and period of study for more rigor.Keywords: UK listed supermarkets, operating profit margin, working capital ratio, quick ratio, profitability , working capitalTable of ContentsTOC \o "1-3" \h \z \u Abstract PAGEREF _Toc380131784 \h 21.0 Introduction PAGEREF _Toc380131787 \h 52.0 Research aims and Objectives, Questions and/or Hypotheses PAGEREF _Toc380131790 \h 63.0 Literature Review PAGEREF _Toc380131803 \h 74.0 Data and Methodology PAGEREF _Toc380131813 \h 105.0 Results PAGEREF _Toc380131824 \h 115.1 Profitability and Working Capital Ratio PAGEREF _Toc380131825 \h 115.2 Profitability and Quick Ratio PAGEREF _Toc380131831 \h 145.3 : Multiple Regression: Working Capital Ratio and Quick Ratio PAGEREF _Toc380131836 \h 166.0 Conclusion PAGEREF _Toc380131839 \h 187.0 References PAGEREF _Toc380131841 \h 19List of Tables TOC \h \z \c "Table"Table 1: Correlations- operating profit margin and working capital ratio PAGEREF _Toc380131959 \h 11Table 2: Model Summary Operating Profit Margin vs. Working Capital Ratio PAGEREF _Toc380131960 \h 12Table 3: ANOVAb Operating Profit Margin vs. Working Capital Ratio PAGEREF _Toc380131961 \h 13Table 4: Coefficientsa -Operating Profit Margin vs. Working Capital Rati PAGEREF _Toc380131962 \h 13Table 5: Correlations - operating profit margin and quick ratio PAGEREF _Toc380131963 \h 14Table 6: Model Summary- operating profit margin and quick ratio PAGEREF _Toc380131964 \h 15Table 7: ANOVAb- - operating profit margin and quick ratio PAGEREF _Toc380131965 \h 15Table 8: Coefficientsa operating profit margin and quick ratio PAGEREF _Toc380131966 \h 15Table 9: Model Summary Mul tiple Regression PAGEREF _Toc380131967 \h 16Table 10:ANOVAb - Multiple Regression PAGEREF _Toc380131968 \h 16Table 11:Coefficientsa-Multiple Regression PAGEREF _Toc380131969 \h 171.0 IntroductionThe value of working capital a firm is tremendously recognised in the existing body of knowledge. Various scholars assert the view that it is through dynamic management of working capital that solvency, liquidity and profitability of a firm is maintained (Filbeck Krueger, 2005; Mukhopadhyay, 2004; Raheman Nasr, 2007). Working capital is a descriptive term that refers to the difference between the current assets and current liabilities (WC=CA-CL) (Padachi et al., 2008). In a more specific context, working capital may be described as gross or net where the gross working capital essentially refers to the current assets while the net working capital is the value obtained after subtracting the current liabilities from the current assets (Yadav et al, 2009). As used in this study, the working ca pital will be referring to the net working capital. According to Arnold (2008), heavy investment in working capital is likely to lead to high level of liquidity in a firm at the expense of profit generation, because there will be low investment in the fixed assets required for profit generation. The profit generation may, however, be compromised because there are limited fixed assets invented in generation of more funds (Deloof, 2003). Besides, it is likely to result into a situation where there are excessive inventories, so that the firm again spends more on operation cost attributed to the management of the excessive inventory associated with high working capital (Raheman Nasr, 2007). On the other hand, huge investment into working fixed assert and corresponding limited investment in working capital is likely to lead to a situation where there is good potential for profit generation (from the fixed assets) while the firm will be struggling with liquidity and solvency difficultie s (Padachi, 2006). This results because the firm will not be having adequate liquidity capacity to meet the short term financial obligation, a scenario that may easily trigger bankruptcy and liquidation process (Vishnani Shah, 2007).Against the backdrop of the critical role of working capital, it is vital to ascertain the definitive, and possibly predictable relationship between working capital and profitability so that effective working capital management may e undertaken in a manner that leads to realization of desirable profit standards. This paper explores how working capital affects the profitability of UK listed supermarkets. Whereas the relationship between working capital and profitability has been a subject of massive scholarly attention, the past studies have not been specific to UK supermarkets. The study will therefore add to the existing body of knowledge on the two variables, by taking an industry specific approach to this significant theme. From practical perspective , the study is expected to contribute knowledge necessary for effective liquidity and profitability of supermarkets management, more so in UK 2 where the study is focused.2.0 Research aims and Objectives, Questions and/or HypothesesThe primary aim of this research is to examine the effect of working capital on profitability. In both cases, relevant ratios have been used, whereby profitability is measured by operating profit margin while working capital is measured by working capital ratio and quick ratio. Consistent with the overall aim of the study, this study seeks to attain the following specific objectives: 1 To ascertain how UK supermarketsà ¢Ã¢â€š ¬ working capital ratio correlates with their operating profit margin. 2 To ascertain how UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin. 3 To determine how the UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio multiply correlates with their operating profit margin.Thus, the stu dy seeks to address the following research questions: 1 What is the relationship between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio does correlates with their operating profit margin? 2 What is the relationship between UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin? 3 What is the relationship between the UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio multiply correlates with their operating profit margin?Based on the findings of the past studies in other sectors or countries, the study will proceed from the following hypotheses: * H1: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio correlates with their operating profit margin. * H2: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ quick ratios correlates with their operating profit margin. * H3: There is a significant negative correlation between UK supermarketsà ¢Ã¢â€š ¬ working capital ratio and quick ratio and their operating profit margin.3.0 Literature ReviewThe relationship between working capital and profitability has been a subject of intense scholarly attention, even though various studies have used various working capital and profitability metrics. As will be illustrated, majority of the studies have used ratios of these variables rather than the actual figures of working capital and profits. There are, however, a few studies that have non-ratio values to ascertain the relationship.Shah and Sanaà ¢Ã¢â€š ¬s (2006) study was based on five year profitability and working capital performance of Pakistani oil and gas sector. They used various working capital rations, namely inventory turnover, quick ratio, current ratio, average payment period and average collection period to measure working capital. Gross profit was use as a measure of profitability. Using correlation analysis, the study established a negative correlation between all measures of working capi tal and gross profit, with the exception of days payable. A loosely similar study was that of Padachi (2006) who used receivables and inventories to explore how working capital management correlated with the performance of a firm. Similar to Shah and Sana (2006), the study established a negative correlation between the working capital variables and firm performance.Like Shah and Sana (2006), Nasr and Raheman (2007) explored the relationship between working capital and profitability of Pakistani listed companies over a six year period, ranging from 1999-2004. However, in addition to current ratio as a measure of working capital, they also used cash conversion cycle. Another difference was in their measure of profitability; unlike Shah and Sana (2006) who used gross profit, Nasr and Raheman (2007) used net...

Wednesday, May 20, 2020

Terrorism Guantanamo Bay Detention Center Essay - 1814 Words

Detainees held in Guantanamo Bay Detention Center located in Cuba are not only potential terrorists, but are also potential threats to our country, families, and loved ones. Detainees have been stricken of their rights to due process and a fair trial in compliance to George Bush enacting the USA PATRIOT Act, after the September 11th bombings. Guantanamo bay should not be shut down, because the detention center allows us to prevent future attacks to the country, question and gain high value intelligence from terror suspects, and also the island naval base houses some of the most lethal terror threats to the United States. Studies conducted by the Subcommittee on Oversight and Investigation in â€Å"Leaving Guantanamo,†¦show more content†¦The danger of these radicals show that they can not be taken lightly. Studies show the increase in terrorism since September11th after the release of former Gitmo detainees: Bill Gertz of The Washington Free Beacon â€Å"Of the 603 terrorists released from the prison, 100 are now confirmed as having returned to terrorism. Of those, 17 are dead, 27 are in custody, and 56 are free. Released detainees suspected of having returned to terrorism number 74, including two that are dead, 25 that are in custody, and 47 no longer being held. By contrast, in January there were a total of 97 released prisoners who returned to terrorism and another 72 who were suspected of re-engaging in terrorism†(Gertz qtd. In Number of released Gitmo Detainees returning to terrorism increases). As we can see if more detainees that are released without proper interro gation or questioning, then we are just putting more terror leaders back into the field of chaos and destruction. President Bush enacted the USA PATRIOT Act in 2001 that is an acronym for uniting and strengthening America by providing appropriate tools required to intercept and obstruct terrorism. The law President Bush passed in 2001 expandsShow MoreRelatedSpencer Hogue. February 27, 2017. Instructor: Mrs. Nutter.1584 Words   |  7 PagesSpencer Hogue February 27, 2017 Instructor: Mrs. Nutter English 121 The War on Terror Through the Lens of Guantanamo Bay You wake up in a dimly-lit room laying down, your back flat on a cold table, facing unfamiliar men standing over you. You attempt to move, but your arms and legs are strapped down leaving you completely defenseless. Panicking, you begin to scream, but your screams are cut short as a wet cloth is laid over your face. You feel water being poured over the cloth and you begin choking;Read MoreEssay on The Issues with Closing Guantanamo1474 Words   |  6 PagesThe United States military base in Guantanamo Bay, Cuba, has been occupied by over 700 Middle Eastern men suspected of terrorism since 2002. It has been home to some of the most heinous suspected terrorist to ever walk on this Earth. What to do with this military base, has been a major source of conflict within our nation and with other nations for over a decade, with no real reasoning substantial enough to close the base. Although our government has come forward and declared that interrogationRead MoreGuantanamo Bay and Hum an Rights Violations by the United States1536 Words   |  6 PagesIntroduction Guantanamo Bay, Cuba is originally a naval base that was once used to house detention facilities for Haitian and Cuban refugees fleeing to the United States. It was also used as a refueling station for Navy ships. It was then converted into a high level detention facility to house enemy troops captured in the War on Terror campaign by Secretary of Defense, Donald Rumsfield. It has three main camps that house the prisoners. These prisoners of war were later referred to as enemy combatantsRead MoreIs Indefinite Detention Of Terror Suspects Justified?1505 Words   |  7 Pagesâ€Å"Is Indefinite Detention of Terror Suspects Justified?† It is against human rights to detain and place possible terror suspects in detention centers without a trail. In America, everyone has a right to a fair trial even if a suspect could potentially pose a threat to our country. It is in violation to the Fifth Amendment and the essence of American due process and the rule of law. It is also going against what our Founding Fathers originally acclaimed our rights were. I find it unethical and isRead MoreComparison: Bush v. Obama and Guantanamo Detention Center1172 Words   |  5 Pagesused by the current administration. One of these policies was the operation of the Guantanamo Bay detention center. While it has had far reaching domestic effects it is still a foreign policy issue by nature. The prisoners that have been held in Guantanamo come from all over the world, including Algeria, China, and Pakistan. The governments of these countries and many others are interested in seeing Guantanamo Bay emptied and shut down, either because they have citizens who are being held there orRead MoreGuantanamo Bay Detention Camp : The Gulag Of Our Times1424 Words   |  6 PagesGuantanamo Bay Detention Camp: The Gulag of Our Times Guantanamo Bay is an American military detention camp for prisoners of war, located within the Guantanamo Bay Naval Base. The United States of America acquired the Guantanamo Bay Naval base in 1898 at the end of the Spanish-American War, when the USA took control of Cuba from Spain. The Naval Base was maintained well after the war, nearing the end of the 20th century, and within a rather small span of time, it underwent a transformation from navalRead MoreThe Interrogation Techniques Used By Military Standards1620 Words   |  7 PagesIn August of 2002, without consulting Congress, the Bush administration changed the definition of torture by military standards to allow for previously illegal interrogation techniques. (Inside Guantanamo) Bush lost a lot of respect from American citizens for doing this on his own instead of consulting Congress because it added a lot of suspicion that he was trying to hide something. The Pentagon organized the interrogation techniques into three categ ories. The first one included yelling and deceptionRead MoreGuantanamo Bay And National Security1819 Words   |  8 PagesGuantanamo Bay and National Security Chapter One: Introduction Introduction to the Chapter National security in the United States is more significant than ever before. With recent terrorist attacks in Europe, the Middle East, and within the United States, politicians as well as citizens have questioned how safe the country is compared to prior to the events of September 11th, 2001. The opening of the Guantanamo Bay Naval Base as a detention facility in 2002, serve the purpose of housing suspectedRead MoreThe Raising Issues Of Guantanamo Bay1047 Words   |  5 PagesThe Raising Issues Of Guantanamo Bay The issues that have had cause a lot of controversy since 2002.The closing of Guantanamo Bay has led to be the most reported prison that’s held prisoners against their own will. Due to against war on terror, but has yet most detainees havn’t been charged. We wonder in the closing of Guantanamo Bay who will it affect, what will happen, when will the closing of Guantanamo Bay takes place, and how will this play a role in the world today. If President Obama choosesRead MoreGuantanamo Bay At The Southeastern Tip Of Cuba2299 Words   |  10 Pagestip of Cuba is Guantanamo Bay Naval Base. The United States began leasing this area in 1903 making it the oldest overseas U.S. Navy base. Guantanamo Bay allows the U.S. an area to establish a detention facility in a secure and isolated location eliminating any chance the detainees could escape and return back to their countries. In addition, Guantanamo Bay allowed the U.S. to avoid bringing those individuals suspected of terrorism from entering domestic soil. As of today, Guantanamo Bay only holds 80

Tuesday, May 19, 2020

Nathaniel Hawthornes Young Goodman Brown Essay - 1404 Words

Nathaniel Hawthornes Young Goodman Brown Nathaniel Hawthorne’s story â€Å"Young Goodman Brown† portrays the growth of Young Goodman Brown through vivid symbolic setting. â€Å"Young Goodman Brown† is an allegory in which the setting is very important to the theme of the story. Throughout the narration, detailed setting and emblematic characters surround Goodman Brown. Goodman Brown is an Everyman character, which could be any one of us, struggling with his Puritan heritage, more specifically his spiritual faith. The setting is first introduced during a conversation between Goodman and his wife â€Å"Faith† which is symbolic of his struggle with his spiritual faith throughout the story. Standing in the doorway of his own home he turns to†¦show more content†¦He is privileged to have a loving wife at home, a good Puritan upbringing, yet he still isn’t content that he should just follow this role without exploring beyond the known. â€Å"â€Å"Faith kept me back a while,† replied the young man, with a tremor in his voice, caused by the sudden appearance of his companion, though not wholly unexpected.†Ã¢â‚¬ (391) The elder man carries a staff, which â€Å"bore the likeness of a great black snake†. (392) Later in the story the staff turns to a snake, which is just another supernatural occurrence in the setting representing spiritual â€Å"faith†. In the Bible snakes represent evil and are often found around passages of sin. Other supernatural or biblical illustrations include blood, and the devil’s speed (from Boston to Salem). The setting is extremely important to this journey Young Goodman Brown is following because each element of setting has significant meaning to the theme and mood Hawthorne creates. Continuing to explore the many elements of his faith, he continues down the path, and encounters yet more elements of setting, which signify his discontent with the elders from his childhood. He gets a glimpse of his catechism teacher, a deacon of the church, and many other people of the congregation. Along the way the evil force, his tour guide, the older man, keeps reminding him that these people are here all the time, that all the people from his childhood come there, and that he has workedShow MoreRelatedNathaniel Hawthornes Young Goodman Brown1063 Words   |  5 PagesIt seems necessary to write down some lines about the author. Nathaniel Hawthorne was born in 1804 in Salem, Massachusetts. Because of the involvement of his ancestor in the Salem witch trials , Nathaniel later added a w to make his name Hawthorne in order to hide this relation. He entered Bowdoin College in 1821, and graduated in 1825. Hawthorne published his first work, Fanshawe, in 1828. He published several sh ort stories after that which he collected in 1837 as Twice-Told Tales. His masterpieceRead More Nathaniel Hawthornes Young Goodman Brown Essay1847 Words   |  8 PagesNathaniel Hawthornes Young Goodman Brown   Ã‚  Ã‚  Ã‚  Ã‚  In Young Goodman Brown, Nathaniel Hawthorne tells the tale of a man and his discovery of evil. Hawthorne’s primary concern is with evil and how it affects Young Goodman Brown. Through the use of tone and setting, Hawthorne portrays the nature of evil and the psychological effects it can have on man. He shows how discovering the existence of evil brings Brown to view the world in a cynical way. Brown learns the nature of evil and, therefore, feelsRead MoreAllegory and Symbolism in Nathaniel Hawthorne’s â€Å"Young Goodman Brown†1203 Words   |  5 PagesNathaniel Hawthorne’s â€Å"Young Goodman Brown† is an excellent example of the use of allegories and symbolism as a form of satire on Puritan faith. According to Frank Preston Stearns, author of The Life and Genius of Nathaniel Hawthorne, â€Å"Hawthorne may have intended this story as an exposure of the inconsistency, and consequent hypocrisy, of Puritanism† (Stearns 181 ). Throughout the story of â€Å"Young Goodman Brown,† Hawthorne tries to infuse as many symbols and allegories as he can to enhance the overallRead MoreAnalysis of Nathaniel Hawthornes Young Goodman Brown a Story708 Words   |  3 Pagesï » ¿Young Goodman Brown (Order #A2103550) Christs death and resurrection can be considered only the beginning of his ministry for afterward he instructed his remaining apostles to go therefore and make disciples of all the nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit. (Mt 28:16-20 [New King James Version]) Sixteen centuries later a group of Christians called Puritans would attempt to fulfill this Great Commission by spreading the good news of Christ andRead MoreSin in Nathaniel Hawthornes Young Goodman Brown Essay2433 Words   |  10 PagesAnd the young Puritan Goodman Brown accepted this principle, after his in-the-woods experience, as applying not only to the Salem village rank-and-file but even to his faultless wife Faith. Is this notion of sin correct? This essay seeks to compare this moral depravity doctrine of the Puritans as seen in â€Å"Young Goodman Brown† to the Catholic Church’s teaching on sin, a recognized standard. The influence of Puritan religion, culture and education is a common topic in Nathaniel Hawthornes worksRead MoreSymbolism in Nathaniel Hawthornes Young Goodman Brown Essay468 Words   |  2 PagesSymbolism in Nathaniel Hawthornes Young Goodman Brown Nathaniel Hawthornes Young Goodman Brown is full of symbolism throughout the story. Perhaps the most interesting examples of symbolism include the title character, Young Goodman Brown, as well as his wife, Faith, and the woods that Young Goodman Brown enters on his journey. Included are many allusions to Christianity and also to evil and sin. These references are expressed mainly through characters and settings in the story. TheRead More Symbolism in Nathaniel Hawthornes Young Goodman Brown Essay1278 Words   |  6 PagesSymbolism in Nathaniel Hawthornes Young Goodman Brown   Ã‚  Ã‚  Ã‚  Ã‚  Nathaniel Hawthorne utilizes symbolism throughout his short story Young Goodman Brown to impact and clarify the theme of good people sometimes doing bad things. Hawthorne uses a variety of light and dark imagery, names, and people to illustrate irony and different translations. Young Goodman Brown is a story about a man who comes to terms with the reality that people are imperfect and flawed and then dies a bitter death from the enlightenmentRead MoreDisapproval of Puritanism in Nathaniel Hawthornes Young Goodman Brown1959 Words   |  8 PagesRunning Head: Hawthornes Young Goodman Brown Hawthornes Young Goodman Brown Critical Analysis Nathaniel Hawthorne has presented his disapproval of Puritanism in the form of Young Goodman Brown who has been presented as the living embodiment of Puritanical sect. Where the influence of Hawthornes background on his work is evident, he has managed to present evidences for his argument. In his short story, he portrays Young Goodman Brown as a character who, on the basis of his own staunch beliefsRead MoreEssay about Nathaniel Hawthorne’s Young Goodman Brown3241 Words   |  13 PagesNathaniel Hawthorne’s Young Goodman Brown   Ã‚  Ã‚  Ã‚  Ã‚  Nathaniel Hawthorne’s â€Å"Young Goodman Brown† captivates the reader through a glimpse of the Puritan church. The story also shows the struggle of good versus evil in the main character Goodman Brown. The role of the Puritan church is crucial in shaping Goodman Brown’s personality and helping the reader understand why he was reluctant to continue his journey.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"Puritanism, movement arising within the Church of England in the latter part ofRead MoreEssay on Faith Role in Nathaniel Hawthorne’s â€Å"Young Goodman Brown600 Words   |  3 PagesFaith plays a major role in Nathaniel Hawthorne’s short story â€Å"Young Goodman Brown†. From the start of his journey to his arrival back home, Faith is always in the back of head, making him question his surroundings and own thoughts. It’s hard to determine when he’s speaking of his lovely wife Faith or his Faith in his God and religion. Through his many Young Goodman Brown’s journey begins with his departure from Faith, for he must â€Å"tarry away from thee.† (Nathaniel Hawthorne 1289) Could it be

Wednesday, May 6, 2020

Comparison of Journal of the Plague Year and Oroonoko Essay

Throughout history, slaves have been treated like animals and thought of as property, not human beings. Even Oroonoko, a handsome, statuesque prince is turned into a slave because of his race, and is degraded and mistreated. To racist slave owners, the horrible treatment of Africans was acceptable because they were a different species, and no amount of education or beauty could save them. Behn shows how unjust and brutal slavery is in Oroonoko. The treatment of slaves is comparable to the treatment of the poor, as both have few rights, and both are unjustly judged and mistreated based on social status. Behn begins Oroonoko with a description of the native people: they have long black hair, wear jewelry and paint flowers on their†¦show more content†¦. . To which [a person] a thousand times prefer Death.# She further describes how one is sold into slavery, being either sold one by one or in lots with women and children, but families are not sold together; instead, they are separated, as a family cannot be trusted together for fear that they will commit some great Action, to the ruin of the Colony.# At first, slavery is depicted as more of an embarrassment than a painful way of life, and Oroonoko lives a decent life for a while. Oroonoko is sold to Trefry, a Cornish gentleman who assists the Governor, and he proves to be a kind and gentle man to Oroonoko. Trefry cares deeply for Oroonoko, and ever after lovd him as his dearest Brother, and shed him all the Civilities due to so great a Man.# Oroonoko is reunited with his love, Imoinda, who has also been sold into slavery, and the two are allowed to marry (which was a privilege that was not granted often). However, the lifestyle Oroonoko leads is not typical, as he reveals when he makes a speech to other slaves. Oroonoko reveals that slaves suffer Loads, Burdens, and Drudgeries as were fitter for beasts than Men and that both guilty and innocent slaves sufferd the infamous Whip. . . Till their Blood trickled from all Parts of their Body.# The cruelty of the slave owners sparks a rebellion led by Oroonoko, which fails. The slaves are punished in the most merciless manner: they are whipped so

Evaluation Of The O Malley And Pierce Reading Essay

Assessment Description: Which form of assessment did you choose? What rubric categories did you use? Explain how this assessment reflects appropriate practices for ELLs? The form of assessment that we chose was the picture cued description test. We also had our student do a self assessment and finally, we gave her time to draw whatever picture she wanted but just had to explain it to us. We started with the self assessment, which was taken from Chapter 4 of the O’Malley and Pierce reading. The self assessment itself asked the student to rate the difficulty level of things that the student could do in English. Some statements included, â€Å"I can speak with native speakers outside of school, I can listen to and understand video and television, and I can describe past events.† We then chose to do a picture cued description test. This included a 6 frame picture story board that was a picture of a boy throwing a ball for his dog, and the dog returning the ball back to the boy. We asked our student to explain what was happening in the picture and to tell us a story of what is going on with the boy and dog. Finally, the last part that we ass essed the student on was her ability to draw a picture but to explain why she wrote it and what the picture meant. We gave the student a whiteboard and marker and gave her about 10 minutes to freely draw. She drew a person sleeping in a bed under the moon and stars. The rubric categories that we used was the SOLOM teacher observation Student Oral

Balance of Payments Concepts - Components - Importance - Examples

Question: Discuss about the Introduction Balance of Payment. Answer: Introduction The balance of payment is the statement that briefs a countrys economy transactions with the rest of the globe for a particular period. On a general basis BOP of a country is calculated quarterly in every financial year. The Balance of Payment or in short BOP is also known as the balance of international payments, encloses all the business affairs between citizens of a country and the non-residents which include services, financial claims, liabilities, goods, income, and any transfers such as gifts (Alawattage, 2009). All the business transactions handled by either the public sector or a private sector are accounted for in the Balance of Payment to find out the amount of money going out and coming in the country. If money is coming in the country, then it is known as a credit, and when money goes out of the country then it is known as debit. These transactions are divided into three accounts by the BOP, and they are the Current account, the financial account, and the capital account. The current accounts consist of the business transactions in services, investment income, current transfers, and goods, while the capital account mostly consists of business transactions in financial instruments. A country economys BOP transactions, dealings, and international investment position are calculated together to establish its set of international accounts. In theory, the Balance of Payment of a country that includes the assets that are the credits of the country and the liabilities that is the debit of the country should be zero, but in reality, this rarely happens. Thus, the BOP of a country can tell clearly that from where the differences are emerging in the economy (Bussire, 2013). Breaking Down of the Balance of Payment The balance of payment is not actually includes the payment of money and receiving of money by an economy of a country. But, it is the data that includes the transactional details of a country with rest of the world. Many times the international collaborations get included in the BOP does not include money payment. Thus, the numbers here can be very much different from the actual payments made over a period to foreign entities. As mentioned before that BOP never actually balances. In theory, a deficit amount in a current account has to be financed with the help of net inflow coming in the financial and capital account, a surplus amount of current account need to be corresponded in the financial and capital account to an outflow to get a zero net figure (C., 2015). When the actual figure has calculated the data that is compiled with the help of multiple sources, increase the chances of measurement error up to some level. In the formulation of national and international economy policy, the data about the balance of payment and position of international investment is very critical. Various aspects of BOP data are the key issues that need to be addressed for a nations economic policies, and they are payment imbalances and foreign direct investment. The economic policies formed by a country are often designed to target some specific objectives and goals and which in turn leaves an impact on the BOP of the country. For example, policies that are specially created to attract foreign investment can be adopted by a nation to increase foreign investment in a particular sector. Another country can adopt a policy that keeps the currency of the country at an artificially depressed level to increase exports that will help in creating currency reserves for that country. The ultimate impact of these policies will be seen in the balance of payment (Chernyak, Khomiak and Chernyak, 2013). The Balance of Payment of a country is divided into three categories, and they are as follows:- The Current Account- to mark the outflow and inflow of goods and services into a nation the current account is used. Any type of earnings done on investments, both on private sector and public sector, are also added in the current account. The credits and debits on the transactions of products like raw materials, and the produced goods that are sold, bought, or given away many be in the form of an aid, comes in the current account. The services that are included in the current account are like receipts earn from tourism, business service fees, engineering, transportation, and royalties gained from copyrights and patents (Egger and Maria Radulescu, 2011). The combination of goods and services makes the nations balance of trade. Combining the total of imports and exports made up the BOT that is the maximum sum of a countrys BOP. If a countrys BOT is showing deficit, then the imports of the country are more than the exports, and if the country has a surplus BOT, then the exports of the country are more than its imports. Any type of receipts coming from income-generating assets like stocks is also added in the current account. The last part of BOP that is included in the current account is Unilateral Transfers. These unilateral transfers are generally the salaries credit in the accounts of workers working abroad and sending their salaries to the home country. Also all types of foreign aids directly received by the country come under the unilateral transfers (Eichengreen, 2013). The countrys current account is the best indicator of the economys health. Current account showing a positive balance displays that the country is the net lender to the other countries, while if the balance of the current account is negative than it makes the country a net borrower. A countrys net assets increase with the surplus current account balance and decreases if the account shows the deficit amount. A countrys current account balance gets affected by various factors like the trade policies of the country, its exchange rate, forex reserves, inflation rate, and competitiveness (Filipovic and Garic, 2014). The Capital Account- the capital account includes all the international capital transfers. Acquisition or disposal of any type of non-financial assets is included in the capital account such as physical assets like a land, assets that are not produced yet but needed for production, like a mine which is being used for extracting coal. The capital account could be divided into the financial flows that are branched into debt forgiveness, financial assets gained through the migrants leaving or entering a nation, the transfer of goods, transferring the ownership of fixed assets, all types of gifts and inheritance taxes, uninsured damage of fixed assets, death levies, and funds received from acquisition or sale of land (Freund, 2010). The net change in the financial and physical ownership of a country is shown in the capital account, along with the balance of current account, the balance of payment of a country is constituted. Foreign investment, changes in a reserve account, other investm ent, is included in the capital account. A capital account can also be referred as the account that can display the net worth of a business at a specified period. The economic activities of a country are calculated in the capital account of the nation. The amount that an investor pays an organization is recorded in the form of general ledger account which gives a cumulative amount of the earning company is doing. The balance of the capital account is reported in the form of partners equit, or owners equity section in the balance sheet (Ishikawa and Horiuchi, 2012). The Financial Account- in the financial account of the country the international monetary flows in relation to business investment; stocks, bonds, and real-estate are documented. Foreign reserves, special drawing rights, gold, and government-owned assets like foreign reserves are also included in the financial account of a nation. Along with them the assets owned by foreigners are also recorded in the financial accounts. A financial account is that part of a nations BOP which deals with the claims or liabilities to non-residential, specially related to the financial assets (Kalamova and Konrad, 2010). It includes the portfolio investment, reserve assets, direct investment and those who are broken down by the sector. Any claim made by the non-residents of the nation on the financial assets of the citizen of the country are considered as a liability, while any claim made against the non-resident by the countrys citizen are taken as assets. The financial account is further divided into two sub-accounts to provide a tracking mechanism for the ownership transfer of the international asset. The first sub-account is related to the domestic ownership of the foreign assets, like securities of a foreign company, or any foreign bank deposits. The second sub account includes the foreign ownership of domestic assets, like any type of purchase done by foreign entities of government bonds or loans given to a domestic bank by a foreign firm (Kristjansdottir, 2010). Other important parts of Balance of Payment Basic Balance- basic balance is an economic measure taken for the BOP which adds the current and capital account balances. The basic balance proves to be an alternative method to the deficit or surplus for the BOP due to the change in the exchange rate system. The basic balance is use by the economists to determine the trends of countrys BOP in a long-term. This measure is less helpful in short-term fluctuations that may occur in the exchange or interest rates. It incorporates the fluctuations of international investments from the capital account that gives a better response regarding long-term changes in a countrys productivity (Mathew, Vijaykumar and Jacob, 2013). Official Settlement Account- to keep track of the reserve asset transactions of central banks with each other in BOP an official settlement account is used. All types of transaction related to gold, bank deposits, foreign exchange reserves, and special drawing rights are tracked by the official settlement account. Official settlement account essentially keeps track of all the transactions including international assets (Odili, 2014). Average Balance- the average balance means the balance on a depositary or a loan account. The calculation of average balance is taken out by adding the beginning balance and ending balance together and dividing it by two. The time balance remained at a particular level at the calculating period that may be a month or a quarter of a year is taken into account by average balance account. It is commonly used to find out the average daily balance, especially when taking in account the interest on loans. As banks cannot charge interest, on interest all types of payments are applied to the due interest payment and then comes the principal amount. Average balance can be used by the investors who trade on margin accounts and wanted to determine margin requirements that the brokerage makes (Ojha, 2016). Account Balance- the amount of money at any point of time in a financial repository is known as an account balance. It can also be the money that a person owed to a third person like a credit card company, mortgage banker, utility company, or any other creditors. After factoring the debits and credits, the net amount is shown in the account balance. Unilateral Transfer- an economic transaction happening between the citizens of two different countries over a specified period is known as a unilateral transfer. It includes transactions like pension payment, gift exchanges, and other goods and services. Unilateral Transfers are added in the nations BOP through current account. Unilateral transfers are different from international trade, including things like humanitarian aid and payments coming from immigrants to their home country (Oladipupo, 2011). The Balancing Act- it is necessary that the current account should be balanced with the added balance of capital and financial accounts. But as told earlier this rarely happen in any country. The fluctuating exchange rates, the value of money changes and that can add discrepancies in BOP. If a deficit is found in the current account that is the balance of trade deficit, then that difference can be covered by borrowing the fund from the capital account. The borrowed amount is taken as an outflow of capital account if a country has a fixed asset abroad. But, if that fixed asset is sold then it will be added to the current account inflow. If a countrys balance of payment is showing a deficit in the current account then it means that for more goods and services the country is foregoing its capital assets. If the money is borrowed to balance the current account deficit then it would be taken as an entry of foreign capital in the balance of payment (Petrovic and Gligoric, 2010). Liberalizing the Accounts- the late 20th-century rise of global finance and trade urged the BOP and liberalization of macroeconomic in most of the developing countries. With the economic boom entering in the emerging market, the capital flows tripled in these markets. Until the 1980s when Asian crisis struck the world and spurred countries to release restrictions on financial and capital account transactions, to take the advantage of the capital inflows. Most of the developing countries have restrictive macroeconomic policies, which regulated the ownership of non-financial and financial assets by a foreigner (Rahman, 2016). These rules limit the transfer of funds abroad. With the linearization of capital and financial accounts, the growth of capital market increased, which not only initiated transparency and sophistication in the market for the investors, but also attracted foreign direct investment. Like an investment made in a new power station will be bringing a nation great expos ure to new technologies and growth, which will eventually be increasing the overall GDP of the nation allowing the prospects of increased volumes of production. A diversified market decreases the risk which will come due to liberalization (Stepanovic-Petrac, 2008). Balance of Payment Crisis When a country has a deficit of the balance of payment that is unsustainable, then it is known as the balance of payment crisis. When a large amount of money flows out of the country and the borrowing power of the country is less than the situation becomes a crisis for the country. A BOP crisis become serious when a situation comes where the budget of the country is exceptionally large and the finances of the country become deficits for a long period, and the debt of the country increases beyond the bound oh handling (Swenson, 2006). Many countries has faced severe crisis of balance of payment in the 290th century few examples of such balance of payment crisis are:- 1991 Indian Economic Crisis 1994 Economic Crisis in Mexico 1997 Asian Financial Crisis 1998 Russian Financial Crisis 1999-2002 Argentine Economic Crises Reason of balance of payment crisis It is necessary to understand the reasons due to which the balance of payment crisis occurs in a country. The balance of payment crisis is very harmful to the economy of the country. If the reasons are known to the government of the country for the balance of payment crisis, then measures could be taken to avoid it to happen (Yan, 2003). The reasons for the crisis of balance of payment are as follows: - Ever increasing trade gap- due to trade gap, trade deficit occurs that means a huge rise in imports but a substantial rise in exports of the nation for a long period. Import Liberalization- liberalization given in the rules and regulations of imports led to increasing of products imported. Increase in Import Intensity- the increase in national income popularizes and increases the demands of imported product. This led to the increase of imports in a country. Import of Oil- developing countries need a lot of oil products for their necessities and luxuries thus the demand for oil increases, which in result increased the import of oil (Ziying, 2014). Imports of essential items- when a scarcity of an essential product arise it becomes important for a country to import that product from other countries. Raise in the prises of Imports- the rise in the prices of the necessity products made country spend more on the imports that led to the balance of payment deficit (Khawar, 2005). Deterioration in the exchange rate of the currency- if the exchange rate of the currency deteriorates then the imports becomes expensive for a country. This increases the balance of payment deficit. All the above-given reason led a country towards balance of payment crisis. Thus, it becomes necessary for the economic department of the country to pay attention towards the number of imports a country is doing and the exchange rate of the currency of the nation should not deteriorate when the number of imports are more than the exports of the country (Williams, 2015). Conclusion A countrys smooth running depends on the condition of the economy of the country. A country decides a budget for itself as per the requirement of the nation. This budget includes all the expenses that a country will bear and all the finances that the government will be getting from various sources. The balance of payment is the condition when a countrys all the liabilities are equal to the assets of the country. These credits and debits are the transactions that take place between two countries. There are a number of factors that are used to have a balance of payment in a country like capital account, current account, and financial account. These accounts are further divided into various other parts that help in maintaining the countrys balance of payment. Like liberalization of account, average accounting etc. It is very necessary to control the balance of payment of a country because if the deficit of the balance of payment becomes larger than the borrowing power of the country and for a long period than it leads the country towards the balance of crisis. There are many examples of countries those who have faced this balance of crisis. There are many reasons for the deficit of the balance of payment, but the increased imports, and decreased exports is the main reason for the deficit of balance of payment. Hence it is concluded, that balance of payment in a country is very important to maintain for the smooth running economy of the nation. References Alawattage, U. (2009). Exchange Rate, Competitiveness and Balance of Payment Performance. Staff Studies, 35(1). Bussiere, M. (2013). Balance of payment crises in emerging markets: how early were the early warning signals?. Applied Economics, 45(12), pp.1601-1623. C., U. (2015). Monetary Policy and Balance of Payment in Nigeria ( 1981 - 2012 ). Journal of Policy and Development Studies, 9(2), pp.14-26. Chernyak, O., Khomiak, V. and Chernyak, Y. (2013). The Main Triggers of the Balance of Payment Crisis in the Eastern Europe. Procedia Technology, 8, pp.47-50. Egger, P. and Maria Radulescu, D. (2011). Labor Taxation and Foreign Direct Investment*. Scandinavian Journal of Economics, p.no-no. Eichengreen, B. (2013). Number One Country, Number One Currency? 1. The World Economy, 36(4), pp.363-374. Filipovic, S. and Garic, D. (2014). Analysis of the cause of global balance of payment imbalance. Poslovna ekonomija, 8(2), pp.277-300. Freund, C. (2010). Third-country Effects of Regional Trade Agreements. The World Economy, 33(11), pp.1589-1605. Ishikawa. J. and Horiuchi, E. (2012). Strategic Foreign Direct Investment in Vertically Related Markets*. Economic Record, 88(281), pp.229-242. Kalamova, M. and Konrad, K. (2010). Nation Brands and Foreign Direct Investment*. Kyklos, 63(3), pp.400-431. Kristjansdottir, H. (2010). Foreign Direct Investment: The Knowledge-Capital Model And Small Country Case. Scottish Journal of Political Economy, 57(5), pp.591-614. Mathew, J., Vijaykumar, N. and Jacob, E. (2013). Balance of Payment Crisis in India: What the Figures say. Arthshastra : Indian Journal of Economics Research, 2(5), p.14. Odili, O. (2014). Exchange Rate and Balance of Payment: An Autoregressive Distributed Lag (Ardl) Econometric Investigation on Nigeria. IOSR Journal of Economics and Finance, 4(6), pp.21-30. Ojha, G. (2016). State of Remittance and Balance of Payment in Nepal. Economic Literature, 11, p.15. Oladipupo, A. (2011). Impact of Exchange Rate on Balance of Payment in Nigeria. African Research Review, 5(4). Petrovic, P. and Gligoric, M. (2010). Exchange rate and trade balance: J-curve effect. Panoeconomicus, 57(1), pp.23-41. Rahman, M. (2016). Impact of Foreign Direct Investment Inflows on Capital Account of Indias Balance of Payments. Business and Economic Research, 6(1), p.111. Stepanovic-Petrac, Z. (2008). Bretton Woods 2 system and US balance of payment deficit. Medjunar probl, 60(1), pp.116-136. Swenson, D. (2006). Country Competition and US Overseas Assembly. The World Economy, 29(7), pp.917-937. Yan, H. (2003). Capital mobility, intertemporal current account balance and currency crisis. Global Business and Economics Review, 5(2), p.297. Ziying, M. (2014). Inward Foreign Direct Investment, Entrepreneurial Behavior, and Outward Foreign Direct Investment: Evidence from China. IJBM, 9(9). Khawar, M. (2005). Foreign Direct Investment and Economic Growth: A Cross-Country Analysis. Global Economy Journal, 5(1). Menkhoff, L. (2013). Foreign Exchange Intervention in Emerging Markets: A Survey of Empirical Studies. The World Economy, 36(9), pp.1187-1208. Williams, S. (2015). Foreign Currency Exposure within Country Exchange Traded Funds. Frontiers in Finance, 1(0), p.28.