Changing Use Of Language Essay Example For Students

Changing Use Of Language Essay I decided to discover the entomology of a word that a great many people can for the most part not experience a day without utilizing at any rate once, PC. With the blast of the PC over the most recent ten years, most family units in America own at any rate one. Be that as it may, the importance of the word PC has changed in the only remaining century. The word itself is found in text as far back as 1646 when Sir T. Earthy colored stated, The schedules of these PCs. The utilization of PC in this sense, as characterized by the OED, is one who registers; a mini-computer, reckoner; an individual utilized to make computations in an observatory, in studying, etc.Then, around 1897, the utilization of PC started to change. In the January 22 version of Engineering, this use showed up: This was a PC made by Mr. W. Cox. He depicted it as of the idea of a round slide rule. This use started the difference in the definition. In the enhancement to the OED, PC is currently characterized as an ascert aining machine; a programmed electronic gadget for performing numerical or intelligent operation.The word PC comes from the action word process which originated from the French comput-r and the Latin computa-re. It was shaped by adding com together and putare to clear up, settle, figure. Together, process intends to gauge or decide by arithmetical or numerical retribution; to figure, figure, check. At that point from the word process, the postfix er was included giving us the definitions we have for PC today.2) with an end goal to additionally get language, the field of psycholinguistics shaped to examine the mental side of language. Language has various capacities, for example, correspondence, communicating feeling, clarifying thoughts, to make connections, and recording thoughts. Without the utilization of language, it would be about difficult to clarify the historical backdrop of anything. Language takes into account the correspondence that is essential for endurance. It isn't ju st people who profit by language either. Honey bees utilize an intricate arrangement of a move and buzz to show the hive where to discover food, and feathered creatures utilize various peeps to communicate.One psycholinguistic, Hockett, said that all dialects have a few perspectives that are the equivalent at some level which he called Linguistic Universals. One part of Linguistic Universals is the communicated transmission, which says that language is open and that anybody around the message will get it. Another part of language is that it is fast blurring, or on the off chance that you dont get it immediately, you wont get it by any means. Hockett likewise said that language is discretionary. An article could really be called anything anybody needs to call it. On the whole, Hockett thought of nine viewpoints that all dialects have in common.In request to get language, Chomsky accepted that there were four levels required. The first of his four levels was the Lexicon. He portrayed the Lexicon as a psychological word reference. It takes into account perceiving words in setting, realizing how to articulate the word in its unique situation, and how the word is utilized in various grammatical forms. Chomskys second level was known as the Phonemic level. This portrayed the phonemes or the littlest unit of sound in the language. For each language there are a countable number of sounds that make it up. For instance, the Chinese language has no stable for the English L or R. The English language is comprised of 40 to 50 particular sounds while the Hawaiian language has just eleven.His third level required for understanding language is the Morphemic level. This level comprises of morphemenes, which are the littlest unit of significance of an articulation. This clarifies the use of prefixes and postfixes, for example, the utilization of a s to make a word plural.The last level Chomsky used to comprehend language was the Syntactic level. This level comprised of the lang uage structure or the structure of the articulation. This level was utilized to clarify the comprehension of how a sentence was assembled. Chomsky said that there were two sections to each sentence, the surface structure and the profound structure. The surface structure contains the words that are utilized to make the articulation and grammar. The profound structure was the importance of .uc71e9b5e543c3aeddf43b213390775aa , .uc71e9b5e543c3aeddf43b213390775aa .postImageUrl , .uc71e9b5e543c3aeddf43b213390775aa .focused content zone { min-tallness: 80px; position: relative; } .uc71e9b5e543c3aeddf43b213390775aa , .uc71e9b5e543c3aeddf43b213390775aa:hover , .uc71e9b5e543c3aeddf43b213390775aa:visited , .uc71e9b5e543c3aeddf43b213390775aa:active { border:0!important; } .uc71e9b5e543c3aeddf43b213390775aa .clearfix:after { content: ; show: table; clear: both; } .uc71e9b5e543c3aeddf43b213390775aa { show: square; change: foundation shading 250ms; webkit-progress: foundation shading 250ms; width: 100%; mistiness: 1; change: haziness 250ms; webkit-change: obscurity 250ms; foundation shading: #95A5A6; } .uc71e9b5e543c3aeddf43b213390775aa:active , .uc71e9b5e543c3aeddf43b213390775aa:hover { darkness: 1; change: murkiness 250ms; webkit-change: murkiness 250ms; foundation shading: #2C3E50; } .uc71e9b5e543c3aeddf43b213390775aa .focused content zone { width: 100%; position: relative; } .u c71e9b5e543c3aeddf43b213390775aa .ctaText { fringe base: 0 strong #fff; shading: #2980B9; text dimension: 16px; textual style weight: striking; edge: 0; cushioning: 0; text-enrichment: underline; } .uc71e9b5e543c3aeddf43b213390775aa .postTitle { shading: #FFFFFF; text dimension: 16px; text style weight: 600; edge: 0; cushioning: 0; width: 100%; } .uc71e9b5e543c3aeddf43b213390775aa .ctaButton { foundation shading: #7F8C8D!important; shading: #2980B9; outskirt: none; fringe span: 3px; box-shadow: none; text dimension: 14px; text style weight: intense; line-stature: 26px; moz-outskirt range: 3px; text-adjust: focus; text-embellishment: none; text-shadow: none; width: 80px; min-tallness: 80px; foundation: url(https://artscolumbia.org/wp-content/modules/intelly-related-posts/resources/pictures/straightforward arrow.png)no-rehash; position: supreme; right: 0; top: 0; } .uc71e9b5e543c3aeddf43b213390775aa:hover .ctaButton { foundation shading: #34495E!important; } .uc71e9b5e543c3aeddf43b213 390775aa .focused content { show: table; stature: 80px; cushioning left: 18px; top: 0; } .uc71e9b5e543c3aeddf43b213390775aa-content { show: table-cell; edge: 0; cushioning: 0; cushioning right: 108px; position: relative; vertical-adjust: center; width: 100%; } .uc71e9b5e543c3aeddf43b213390775aa:after { content: ; show: square; clear: both; } READ: The catastrophe in Julius Caesar Essay

Petroleum Crisis Essay -- Oli Shortage

Oil Crisis Everybody needs machines, for example, toasters, microwaves and refrigerators to be modest despite the fact that they are rich, however shouldn't something be said about the needy individuals or purported white collar class. What will they do if the costs are too high to even consider affording? Oil is something that we as a whole need to go all around, in any case the greater part of us do; four to five years prior, when I initially came to Canada, the gas costs were very low, yet in the previous 2-3 years, it is as yet expanding state-of-the-art. Costs of toasters and oil and so on shouldn’t increment since we are getting our expenses cut and on that our degree of cost for the gas has expanded, which makes our lives hard and repetitive. Gases, Petrol are fundamental devices for the 21st century. It is something that all the individuals need to go from spots to places since utilizing transports gets costly over the long haul. This emergency started simply because the Middle East started to charge more for their barrel. This happened on the grounds that they understood that they are giving their petroleum for less, when they could be making significantly more selling a similar amount, which is reasonable. They can charge anything they desire since it is their own Gasoline and they can do anything they desire with it. Canada has Alberta to help them a great deal with the misfortunes of Petroleum and charges of it since it has it’s own oilrig, from where oil is delivered, and can help them by giving the oil locally so the gas costs won't be that high. The administration for some obscure motivation to the open ar... Oil Crisis Essay - Oli Shortage Oil Crisis Everybody needs apparatuses, for example, toasters, microwaves and ice chests to be modest despite the fact that they are rich, however shouldn't something be said about the destitute individuals or purported white collar class. What will they do if the costs are too high to even think about affording? Oil is something that we as a whole need to go here and there, at any rate the vast majority of us do; four to five years back, when I previously came to Canada, the gas costs were very low, yet in the previous 2-3 years, it is as yet expanding modern. Costs of toasters and oil and so forth shouldn’t increment since we are getting our expenses cut and on that our degree of cost for the gas has expanded, which makes our lives hard and repetitive. Gases, Petrol are basic apparatuses for the 21st century. It is something that all the individuals need to go from spots to places since utilizing transports gets costly over the long haul. This emergency started simply because the Middle East started to charge more for their barrel. This happened on the grounds that they understood that they are giving their petroleum for less, when they could be making significantly more selling a similar amount, which is reasonable. They can charge anything they desire since it is their own Gasoline and they can do anything they desire with it. Canada has Alberta to help them a great deal with the misfortunes of Petroleum and charges of it since it has it’s own oilrig, from where oil is delivered, and can help them by giving the oil locally so the gas costs won't be that high. The legislature for some obscure motivation to the open ar...

Borderline Personality Disorder Treatment

Borderline Personality Disorder Treatment Borderline Personality Disorder Treatment BPD Treatment Print Borderline Personality Disorder Treatment Psychotherapy, Medications, Hospitalization, and Self-Help By Kristalyn Salters-Pedneault, PhD Kristalyn Salters-Pedneault, PhD, is a clinical psychologist and associate professor of psychology at Eastern Connecticut State University. Learn about our editorial policy Kristalyn Salters-Pedneault, PhD Medically reviewed by Medically reviewed by Steven Gans, MD on February 11, 2020 Steven Gans, MD is board-certified in psychiatry and is an active supervisor, teacher, and mentor at Massachusetts General Hospital. Learn about our Medical Review Board Steven Gans, MD on February 11, 2020 Hill Street Studios / Blend Images / Getty Images More in BPD Treatment Diagnosis Living With BPD Related Conditions In This Article Table of Contents Expand Overview Psychotherapy Medications Hospitalization Self Help Emergency Situations View All Back To Top There are a variety of effective treatments for borderline personality disorder (BPD). What treatments seem to work best, and what should I know about the options available? Overview Usually, BPD is treated with a combination of medication and psychotherapy,?? although during times of crisis, individuals with BPD may require brief periods of hospitalization to remain safe. More recently, self-help tools have been developed to supplement traditional treatments for BPD. Psychotherapy Long-term outpatient psychotherapy, or talk therapy, is an important part of any treatment for BPD. Research has shown that several types of psychotherapy are effective in reducing the symptoms of BPD,?? including: Dialectical Behavior Therapy (DBT)Dialectical behavior therapy (DBT) was the first form of psychotherapy found to be effective for people with borderline personality disorder (BPD.) DBT is a form of cognitive behavior therapy which focuses on how thoughts and beliefs can lead to actions and behaviors. In this therapy, people learn how to manage distress, and learn skills to help them cope with strong emotions. Mindfulness is a component of this approach.Schema-Focused TherapySchema-focused therapy is an integrative psychotherapy incorporating aspects from cognitive behavior therapy and psychoanalytic theories. Schema-focused therapy operates with the thought that unmet needs from childhood can lead to unhealthy ways of thinking about the world. This therapy focuses on challenging these maladaptive beliefs and behaviors and focusing on healthier ways of thinking and coping.Mentalization-Based TherapyMentalization-based therapy has been studied for BPD and may help with anxiety and dep ression as well as social functioning. This therapy focuses on helping the client to recognize mental states â€" her own thoughts and feelings, as well as the thoughts and feelings of others she communicates with. Through recognition, she is then able to see how these thoughts contribute to her behavior or the behavior of others.Transference-Focused PsychotherapyTransference-focused psychotherapy has been studied for BPD and may be as good or better than dialectical behavior therapy according to these studies. This therapy uses the concept of transference â€" transferring feelings and expectations from early relationships on to a person in the present, which is a key concept in psychodynamic therapies. Transference-focused psychotherapy utilizes the relationship between the client and the therapist so that the therapist can see how a client relates to others. The therapist can then use this awareness to help a person respond more effectively in their other relationships. Find Psychotherapy With These Online Therapy Programs Medications Although there are currently no medications for borderline personality disorder approved by the FDA, research has shown that some medications do reduce certain symptoms of the disorder.?? Medication may be particularly effective for BPD when it is used in conjunction with psychotherapy. In addition to helping with BPD symptoms, medications may help with co-existing mental health conditions such as anxiety or depression. Some of the most commonly prescribed medications for BPD include: Antidepressants - Antidepressants may help with feelings of depression and anxiety.Antipsychotics - Antipsychotics were some of the first medications used to treat BPD and may be particularly helpful for some of the more problematic symptoms of BPD such as anger, impulsivity and paranoid thinking.Anxiolytics (anti-anxiety medications) - Anxiety can go hand in hand with BPD making some of these medications helpful, yet some of these are a double-edged sword due to their addictive potential.Mood stabilizers/anticonvulsants - Mood stabilizers may help with impulsivity and emotional reactivity. Other potential treatments, such as omega-3-fatty acids, are also being explored. The best evidence for medication benefit in BPD involve second generation antipsychotics and mood stabilizers. The best way to see which, if any, medication options are right for you is to speak with your doctor or psychiatrist. They can help iron out a plan of action for getting symptoms under control. Borderline Personality Disorder Discussion Guide Get our printable guide to help you ask the right questions at your next doctors appointment. Download PDF Hospitalization Borderline personality disorder is associated with very intense emotional experiences. Sometimes people with BPD are admitted to a psychiatric hospital to maintain safety. Inpatient treatment requires you to stay overnight in the hospital. Another treatment option is partial hospitalization or day treatment. These are programs that are more intensive than traditional outpatient psychotherapy but do not require you to stay overnight. You may be enrolled in a partial hospital or day program if you may be headed toward a crisis, or if you have just been discharged from inpatient hospitalization and need a period of more intensive treatment to make sure the crisis does not reemerge. Self Help Self-help strategies for BPD are an essential part of any treatment program. Of course, these should be used to supplement care from a qualified therapist and not alone. An ideal plan includes learning as much as you can about your disorder through self-help education, learning healthy coping skills for BPD, and finding ways to help you express and manage your emotions. There are valuable self-help resources available for BPD that can be used in conjunction with more traditional forms of treatment. Books and online resources offer information about BPD and suggest ways to cope with the symptoms. What to Do in an Emergency If you or someone you love is experiencing a mental health emergency, it is critical that you get help immediately. Call 911 or go to your nearest emergency room. If there is evidence that you (or your loved one) are a danger to yourself or others, you may be admitted for a brief hospital stay on an inpatient psychiatric unit until the crisis has passed. Its recommended that anyone living with BPD put together a safety plan for BPD. In this plan, you can anticipate a crisis and make a plan for exactly how you will address your feelings before they become an emergency.

To What Extent Was Late Nineteenth-Century and Early...

APUSH To what extent was late nineteenth-century and early twentieth-century United States expansionism a continuation of past United States expansionism and to what extent was it a departure? Throughout the history of the United States, America had a desire to expand its boundaries. The United States acquired most of its land during the nineteenth and early twentieth century with a brief break during the Civil War and Reconstruction. However, the way America went about graining new lands drastically changed from non-aggressive means in the beginning to extremely aggressive means towards the end. This essay will depict the extent to how late nineteenth-century and early twentieth-century United States expansionism was a continuation†¦show more content†¦The foreign policies that President Roosevelt employed were ultra aggressive. The foreign policies were heavily enforced using his newly built naval force, the arm of offensive power, as a way to conquer the world, an idea brought to Roosevelt’s attention due to Alfred T. Mahan’s The Interest of America in Sea Power. Mahans article claimed that America must go forth with expansionism, for an â€Å"increasing volume of public sentiment demands it†, â€Å"the growing production of the country demands it†, and that â€Å"the Americans must now look onward† (Doc. C). Mahans tactics were heavily reliant on naval forces. He believed that â€Å"Three things are needful: first, protection of the chief harbors, by fortifications and coast-defense ships...Secondly, naval force, the arm of offensive power, which alone enables a country to extend its influence outward† and â€Å"thirdly, no foreign state should henceforth acquire a coaling position within three thousand miles of San Francisco† (Doc. C) Aside from these, the economy was the factor running most constantly through expansionism and imperialism. During expansionism, Americans were looking to spread out, enjoy their own property, farm their land, and make their lives better. Imperialists’ desire was also to fuel the economy. People saw other lands as a way to get the â€Å"needed† materials they couldn’t get elsewhere. Theodore Roosevelt and all Americans saw the land as a place where they couldShow MoreRelatedOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesE SSAYS ON TWENTIETH-C ENTURY H ISTORY In the series Critical Perspectives on the Past, edited by Susan Porter Benson, Stephen Brier, and Roy Rosenzweig Also in this series: Paula Hamilton and Linda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture

The And Criminal Law For Misappropriation Of Personal...

Question set 1 1. Who can sign a medical release form (authorization) to obtain PHI? According to Gartee (2011), Privately Held Information is meant to be safeguarded, but there are times when the information in them is needed for varied purposes. When that is the case, then authorization can be given by the patient or the healthcare provided. A patient that is incapacitated will need a guardian to sign. At the same time, a minor can also use a guardian to sign the release form on behalf of the patient. Within the release form, there should be the name of the facility with holding the PHI; the specific information needed to be released, the name of the person the PHI is released to and the purpose of the release (Iyer et al., 2006). 2. What are the civil and criminal penalties for misappropriation of personal health information (PHI)? Misappropriation of PHI involves staff of the health facilities or any other person that is not authorized to have the health information of another. For that the penalties according to the US Department of Justice are; a penalty of up to fifty thousand dollars and incarceration of up to one year for those who knowingly obtain and disclose PHI of another person. Iyer et al. (2006) further agrees that, One hundred thousand dollars is the penalty for accessing PHI under pretense and incarceration of up to five years. Obtaining PHI for the purpose of selling, using for personal gain, malice or using them for commercial purposes attract aShow MoreRelatedThe Medical Hospital1166 Words   |  5 Pagesand one act of selfishness. The misuse of cellphones and social media within the hospital staff can lead to serious cases against the hospital as well as the staff member involves. Security provision such as Health Insurance Portability Accountability Act know as HIPAA, legal, Regulatory law is design to protect client when technology is use in such a way to attack the client privacy, however the use of these technological tool smartphone and social media is not all detrimental to healthcare just

Harshad Mehta Scam Free Essays

string(95) " must recognize that as long as the scam lasted, the banks benefited from such an arrangement\." Harshad Mehta scam: Harshad Mehta  was an Indian stockbroker and is alleged to have engineered the rise in the BSE stock exchange in the year 1992. Exploiting several loopholes in the banking system, Harshad and his associates siphoned off funds from inter-bank transactions and bought shares heavily at a premium across many segments, triggering a rise in the Sensex. When the scheme was exposed, the banks started demanding the money back, causing the collapse. We will write a custom essay sample on Harshad Mehta Scam or any similar topic only for you Order Now He was later charged with 72 criminal offenses and more than 600 civil action suits were filed against him. He died in 2002 with many litigations still pending against him. 3. 1 Ready Forward Deal (RF): †¢ The crucial mechanism through which the scam was effected was the Ready Forward deal. †¢ The Ready Forward Deal (RF) is in essence a secured short term (typically 15 day) loan from one bank to another bank. The lending is done against Government Securities exactly the way a pawnbroker lends against jewelry. †¢ In fact one can say that the borrowing bank actually sells the securities to the lending bank and buys them back at the end of the period of the loan at (typically) a slightly higher price. It was this RF deal that Harshad Mehta and his associates used with great success to channel money from banking system. 3. 2 The Mechanics of the Scam: As explained above, a ready forward deal is, in substance, a secured loan from one bank to another. To make the scam possible , the RF had to undergo a complete change. In other words it practically had to become an unsecured loan to broker. This was wonderfully engineered by the brokers. To give a better understanding of the mechanism, the whole process has been segregated into 3 different parts. . The settlement process 2. Payment cheques 3. Dispensing the security 1. The settlement Process: ? The normal settlement process in government securities is that the transacting banks make payments and deliver the securities directly to each other. ? During the scam, however, the banks or at least some banks adopted an alternative settlement process which was similar to the process used for settling transactions in the stock market. ? In this settlement process, deliveries of securities and payments are made through the broker. That is, the seller hands over the securities to the broker who passes them on to the buyer, while the buyer gives the cheque to the broker who then makes the payment to the seller. ? In this settlement process, the buyer and the seller may not even know whom they have traded with, both being known only to the broker. ? There were two important reasons why the broker intermediated settlement began to be used in the government securities markets. ? The brokers instead of merely bringing buyers and sellers together started taking positions in the market. In other words, they started trading on their own account, and in a sense became market makers in some securities thereby imparting greater liquidity to the markets. ? When a bank wanted to conceal the fact that it was doing an RF deal, the broker came in handy. The broker provided contract notes for this purpose with fictitious counter parties, but arranged for the actual settlement to take place with the correct counter party. 2. Payment Cheques: ? A broker intermediated settlement allowed the broker to lay his hands on the cheque as it went from one bank to another through him. The hurdle now was to find a way of crediting the cheque to his account though it was drawn in favor of a bank and was crossed account payee. ? As it happens, it is purely a matter of banking custom that an account payee cheque is paid only to the payee mentioned on the cheque. In fact, exceptions were being made to this norm, well before the scam came to light. ? Privileged (corporate) customers were routinely allowed to credit account payee cheques in favour of a bank into their own accounts to avoid clearing delays, thereby reducing the interest lost on the amount. Normally, if a customer obtains a cheque in his own favour and deposits it into his own account, it may take a day or two for the cheque to be cleared and for the funds to become available to the customer. At 15% interest, the interest loss on a clearing delay of two days for a Rs. 100 crores cheque is about Rs. 8 lakhs. ? On the other hand, when banks make payments to each other by writing cheques on their account with the RBI, these cheques are cleared on the same day. ? The practice which thus emerged was that a customer would obtain a cheque drawn on the RBI favoring not himself but his bank. The bank would get the money and credit his account the same day. ? This was the practice which the brokers in the money market exploited to their benefit. 3. Dispensing the security: ? The brokers thus found a way of getting hold of the cheques as they went from one bank to another and crediting the amounts to their accounts. This effectively transformed an RF into a loan to a broker rather than to a bank. ? But this, by itself, would not have led to the scam because the RF after all is a secured loan, and a secured loan to a broker is still secured. What was necessary now was to find a way of eliminating the security itself! There are three routes adopted for this purpose: 1. Some banks (or rather their officials) were persuaded to part with cheques without actually receiving securities in return. A simple explanation of this is that the officials concerned were bribed and/or negligent. A more intriguing possibility is that the banks’ senior/top management were aware of this and turned a Nelson’s eye to it to benefit from higher returns the brokers could offer by diverting the funds to the stock market. One must recognize that as long as the scam lasted, the banks benefited from such an arrangement. You read "Harshad Mehta Scam" in category "Papers" The management of banks might have been sorely tempted to adopt this route to higher profitability. 2. The second route was to replace the actual securities by a worthless piece of paper – a fake Bank Receipt (BR). This is discussed in greater detail in the next section. 3. The third method was simply to forge the securities themselves. In many cases, PSU bonds were represented only by allotment letters rather than certificates on security paper. And it is easier to forge an allotment letter for Rs. 100 crores worth of securities than it is to forge a 100 rupee note! Outright forgery of this kind however accounted for only a very small part of the total funds misappropriated 3. Bank Receipt: ? In an RF deal, as we have discussed it so far, the borrowing bank delivers the actual securities to the lender and takes them back on repayment of the loan. In practice, however, this is not usually done. Instead, the borrower gives a Bank Receipt (BR) which serves three functions: ? The BR confirms the sale of securities. ? It acts as a receipt for the money received by the selling bank. Hence the name – bank receipt. ? It promises to deliver the securities to the buyer. It also states that in the meantime the seller holds the securities in trust for the buyer. ? In short, a BR is something like an IOU (I owe you securities! ), and the use of the BR de facto converts an RF deal into an unsecured loan. The lending bank no longer has the securities; it has only the borrower’s assurance that the borrower has the securities which can/will be delivered if/when the need arises. BRs issued without Backing of Securities: ? As stated earlier, a BR is supposed to imply that the issuer actually has the securities and holds them in trust for the buyer. But in reality the issuer may not have the securities at all. ? There are two reasons why a bank may issue a BR, which is not backed by actual securities: 1. A bank may short sell securities, that is, it sells securities it does not have. This would be done if the bank thinks that the prices of these securities would decrease. Since this would be an outright sale (not an RF! ), the bank issues a BR. When the securities do fall in value, the bank buys them at lower prices and discharges the BR by delivering the securities sold. Short selling in some form is an integral part of most bond markets in the world. It can be argued that some amount of shortselling subject to some degree of regulation is a desirable feature of a bond market. In our opinion, an outright sale using a BR, which is not backed by securities, is not harmful per se though it violates the RBI guidelines. 2. The second reason is that the bank may simply want an unsecured loan. It may then do an RF deal issuing a â€Å"fake† BR which is a BR without any securities to back them. The lending bank would be under a mistaken impression that it is making a secured loan when it is actually advancing an unsecured loan. Obviously, lenders should have taken measures to protect themselves from such a possibility During the scam, the brokers perfected the art of using fake BRs to obtain unsecured loans from the banking system. They persuaded some small and little known banks – the Bank of Karad (BOK) and the Metropolitan Cooperative Bank (MCB) – to issue BRs as and when required. These BRs could then be used to do RF deals with other banks. The cheques in favour of BOK were, of course, credited into the brokers’ accounts. In effect, several arge banks made huge unsecured loans to the BOK/MCB which in turn made the money available to the brokers. 4. Breakdown of the Control system in scam: ? The scam was made possible by a complete breakdown of the control system both within the commercial banks as well as the control system of the RBI itself. ? We shall examine these control systems to understand how these failed to function effectively and what lessons can be learnt to prevent fai lure of control systems in the future. ? The internal control system of the commercial banks involves the following features: 1. Separation of Functions: The different aspects of securities transactions of a bank, namely dealing, custody and accounting are carried out by different persons. 2. Counterparty Limits: The moment an RF deal is done on the basis of a BR rather than actual securities, the lending bank has to contend with the possibility that the BR received may not be backed by any/adequate securities. In effect, therefore, it may be making an unsecured loan, and it must do the RF only if it is prepared to make an unsecured loan. This requires assessing the creditworthiness of the borrower and assigning him a â€Å"credit limit† up to which the bank is prepared to lend. Technically, this is known as a counterparty limit. 5. Other Aspects of the scam: ? There are several aspects of the scam which are closely related to the securities markets, but which are different from the operational aspect of the markets. ? These pertain to information that can cause significant changes in the prices of securities as well as the information supplied by the commercial banks on their financial performance. ? On each occasion the coupon rate was increased by 1/2%, thereby raising the coupon rate from 11. 5% to 13% during this ten month period. The major implication of raising interest rate on new borrowings is that it would trigger a fall in the market prices of the old loans which are pegged at the old (lower) interest rates. The price of the 11. 5% Government Loan 2010 dropped by 3% to 5% with each coupon rate hike. If anyone has advance information about these changes in the coupon rates, he could make enormous amounts of riskless profit by short selling the old securities just before the announcement of rate hike and buying back (covering his position) after the prices have fallen. ? Somebody who took a short position of Rs. 00 crores before the coupon hike of September 1991 could have made a profit of Rs. 15 crores, practically overnight! Since several persons in the Finance Ministry and the RBI are likely to be aware of the impending hike in the coupon rate, the chance of leakage of this all important information is always there. ? There have been several allegations in this regard. However, it will probably be very difficult to prove with any degree of certainty that there was insider trading based on information about coupon rate changes, because of the size of the market. With a daily trading volume of Rs. 3000 – 4000 crores, it would have been very easy for anyone to take a position (based on inside information) of Rs. 500 or even Rs. 1000 crores without anyone suspecting anything untoward. 6. Impact of the scam: ? The immediate impact of the scam was a sharp fall in the share prices. The index fell from 4500 to 2500 representing a loss of Rs. 100,000 crores in market capitalization. [pic] ? Since the accused were active brokers in the stock markets, the number of shares which had passed through their hands in the last one year was colossal. All these shares became â€Å"tainted† shares, and overnight they became worthless pieces of paper as they could not be delivered in the market. Genuine investors who had bought these shares well before the scam came to light and even got them registered in their names found themselves being robbed by the government. This resulted in a chaotic situation in the market since no one was certain as to which shares were tainted and which were not. ? The government’s liberalization policies came under severe criticism after the scam, with Harshad Mehta and others being described as the products of these policies. Bowing to the political pressures and the bad press it received during the scam, the liberalization policies were put on hold for a while by the government. The Securities Exchange Board of India (SEBI) postponed sanctioning of private sector mutual funds. ? The much talked about entry of foreign pension funds and mutual funds became more remote than ever. The Euro-i ssues planned by several Indian companies were delayed since the ability of Indian companies to raise equity capital in world markets was severely compromised. How to cite Harshad Mehta Scam, Papers

Kamp Motors free essay sample

Several of the components for Kamp’s engines are supplied by other businesses. In some cases, they supply standard components, in other cases, components produced according to Kamp’s specifications. Together with various essential components produced by Kamp itself, the components supplied by other businesses are used by Kamp in different types of engines. Table 1 contains some financial information on Kamp relating to 2001. Kamp produces four main types of car engines. Type 1 is a quite conventional type which is supplied mainly to businesses outside the Vecu concern. The more high-tech types 2, 3, and 4 are supplied only internally. The reputation of Vecu’s car makes has always been based on their powerful and noiseless engines. Not all of the Vecu models are fitted with Kamp engines. A considerable number of engines is purchased externally. Whenever a new car model is being developed for one of the Vecu makes, the company has to decide whether to fit it with a Kamp engine or an engine purchased from an external supplier. We will write a custom essay sample on Kamp Motors or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Kamp’s engines, i. e. the types 2, 3, and 4, are often selected for the more exclusive Vecu models. The fact of the matter is that other manufacturers generally cannot supply attractively priced engines which meet Vecu’s specifications. Kamp has managed to incorporate major new technology into its engines every few years, with the result that they are technically superior to other manufacturers’ engines. In fact, Kamp engines are so successful because of their efficient fuel consumption, power and noiselessness. Table 1. Some financial data on Kamp Motors, 2001; x â‚ ¬1 million |Sales |361 | |External costs*) |204 | |Staff costs | 98 | |Depreciations | 20 | |Number of employees |2,303 | ) External costs: costs of raw materials and auxiliary materials, purchased components, contracted work, etc. Vecu is made up of a number of relatively independent divisions which have been subdivided into business units. Kamp is a business unit and profit centre within the Make A division (MA division). Make A is seen as the showpiece of Vecu; the MA division produces exclusive models only. In addition to this division, the Make B and Make C divisions (MB and MC divisions) are also supplied with quite a lot of engines by Kamp. Make A cars are expensive, yet they have held a very strong position in the market for years on end. This is due to their design and their high-quality engines. Like Make A, Vecu’s other passenger cars (Make B and Make C) are not intended for customers who are interested mainly in a reliable, safe car that does not cost too much. MB and MC are to project the image of sporty, stylish and fun cars. Although the MB and MC divisions buy a lot of engines externally, the ‘glamour’ of Kamp engines enhances the image of their cars. Incentives At the end of 2000, the board of the Vecu concern decided to give the divisions and business units stronger incentives. Consequently, the incomes of managers at various levels were made more dependent on the profits made by their units. It was expected that this would encourage the divisions and business units to strive more strongly for efficiency and higher sales proceeds. Ultimately, Vecu needed to increase its returns, as the board stated during the big annual meeting of managers of divisions and business units at Lyon. At the beginning of 2002, the board of Kamp noticed that the management of some segments of Vecu were entitled to considerable bonuses over 2001. The board was very sorry to conclude that the management of Kamp were not in the same position. The board would not take this lying down and started to look for possibilities of increasing the profit of their own business unit. Sadly, they found that there were only limited possibilities. Kamp is obliged to supply certain engines, namely the types 2, 3, and 4, internally at costs per unit plus a small mark-up for profit, as was ordained by the boards of the MA division and Vecu several years ago. Type 1 yields a nice profit, but Kamp cannot increase the numbers of engines sold externally and their prices forever. Even a reduction in the costs of types 2, 3, and 4 will not result in an increase in Kamp’s profit if the decrease is taken into account when the unit costs for those types are calculated. Vecu has strict rules for determining unit costs. Kamp, too, has to determine the basic cost per unit (bcpu) of each type of engine first, as follows: bcpu = external cost per unit + (staff and depreciation costs) : standard capacity. To arrive at the cost per unit, the basic cost per unit is increased by a mark-up for some other direct and indirect costs. In the formula for basic cost per unit, external cost is the cost of purchased materials and components. This cost is in principle proportionally variable. External cost is based on the cost per unit for average-sized buying orders. Buying large or small amounts can be to Kamp’s advantage or disadvantage. Its standard capacity has been set at 90% of its maximum production capacity. Obviously, the rule for determining cost per unit is clear. However, even the strictest rule has to be interpreted. And the board of Kamp thinks it is safe to assume that, in actual practice, the boards of the MA division and Vecu hardly concern themselves with the level of unit costs. Kamp is wondering whether the top management of the division and concern are really well-informed about Kamp’s production process and costs, and whether the senior executives are really interested in Kamp as long as it is run reasonably well. The board of Kamp is therefore considering reducing costs by reorganizing its organization and not reducing the units costs of the types 2, 3, and 4 to the same extent. With a view on this, a reorganization of Kamp’s cost information system is also considered. That might result in more profit for Kamp. In addition, the board is thinking about changing the department of Research and Product Development. It is a large department because Kamp wants to remain a leader in the field of technology. At present most of the departmental staff are employed on a permanent basis. However, the board of Kamp is contemplating much closer collaboration with technical universities in order to save costs and increase profits. Besides through cost reductions, profits can also rise if sales proceeds increase. That is why the board of Kamp is wondering whether the company might benefit from supplying the types 2, 3, and 4 externally as well. At present Kamp’s mostly very specialized machinery is sometimes operating considerably below maximum capacity, e. g. when the development, production or sale of certain car models is stagnating. External sales might result in fewer fluctuations in Kamp’s capacity usage and an increase in its production, profit and profitability. Seeing that other car manufacturers regularly approach Kamp, its board is convinced that there is a sizeable market for Kamp outside Vecu. There are not many engines on the market which are comparable to Kamp’s, qualitatively speaking. The board of Kamp is certain that external sale prices will be considerably higher than the prices at which Kamp has to supply engines to Vecu. An important order However, even the board of Kamp cannot afford to spend its time daydreaming about Kamp’s almost certainly wonderful and profitable future. Although Kamp holds a strong position within Vecu, no order is a certainty. That proved to be true in March 2002, when Guy Mercier, a senior manager from the MB division, contacted Robert Drover, who is in charge of Commercial Affairs at Kamp. Mercier and Drover discussed whether Kamp could supply engines for a new exclusive car model (model MB99) which was being developed by the MB division. Further consultations showed that Kamp would be able to supply engines for the MB99 and that the MB division would probably need 5,000 of these engines annually. Kamp would have to alter the type 2 engine slightly, i. e. develop type 2a for the MB99. Type 2a is not really an average engine, but it is not a typical Kamp engine either. In other words, it is not a genuinely sophisticated engine. Mercier indicated that the MB division was also talking with two other potential suppliers, namely the British company Black and the Italian company FER. Mercier expected that these two companies would also be able to supply an engine which met most of his requirements. In addition to the technical qualities of the engine, its price was an important criterion for the MB division’s decision. ‘Now that Vecu wants to increase its returns across the board, the MB division wants to improve its profit figures too’, said Mercier. ‘We would like to get our engines from Kamp, but only if they are exceptional, technically speaking, and are reasonably priced. Be fair, until now we have had to pay quite high prices for Kamp engines, I think’, Mercier added. Subsequently Robert Drover gave a brief account of his talks with Mercier to the board. Well, Robert’, said Tracey de Cock, financial manager of Kamp, ‘I do not like the sound of it. We have always treated the MB division decently in our business dealings so that they and we would do reasonably well. Of course we hardly made a profit by supplying e ngines to them, but our costs were adequately covered. They never complained to us about our unit costs. It seems that Mr Mercier is now trying to pressurize us to raise his profit figures and his bonus. But I’m damned if I’m going to do business that way. An order for 5,000 engines is not to be sneezed at, but Kamp’s survival does not really depend on it’. ‘Wait a minute, Tracey’, said Michel Dingman, general manager of Kamp. I agree with you that Mercier’s way of doing business with us differs from what we were used to, but maybe we should adapt to the new situation. Anyway, we should not turn down a possible order just like that. It is true that 5,000 engines do not amount to much, but how much does each of those engines bring in? Could we increase the degree of capacity utilization for our current production machinery somewhat? If that new model is a success, the annual figure may increase in the coming years. And what about our sp ecific costs? They may be rather low, because we will only have to adapt an existing type of engine. And if MB develops a relationship with an external supplier of advanced engines, will we not run the risk of losing even more sales in the future? I think we should continue talking with Mercier and should try to do the best possible deal. If necessary, Robert, I will join you in negotiating with Mercier at crucial moments’. ‘Well, you may be right’, said Tracey, ‘but we should always be wary of unprofitable orders. We, too, want to increase our profit. Actually, we cannot supply engines at lower prices until we have cut costs and that will take time. If we really want to make money, we must ask ourselves if we should not supply more engines externally and if we should not stop supplying engines internally at cost per unit plus a small mark-up for profit. But those questions will be dealt with in the long term’. After that, Robert Drover contacted Mercier, who then sent further details about the MB division’s requirements with regard to the type 2a engine. Next, a few staff members in Kamp’s department of Research and Product Development checked the technical ramifications of an order. And staff from the Production Planning and Finance departments looked at the consequences for the production machinery and the costs involved. After some calculations, Kamp concluded that its engine meets Mercier’s technical requirements more than adequately. Furthermore, the first 5,000 engines could probably be produced relatively easily with its available production machinery. However, since the demand for cars and engines is xpected to rise steeply in the coming years, capacity may become a problem, especially if Kamp is allowed to supply engines of the types 2, 3, and 4 to external customers. [2] If Kamp is allowed to sell externally, it will probably supply external customers with en gines yielding a profit of at least â‚ ¬750 per unit. If the full cost per unit for the type 2a engine is calculated in the usual way, it will amount to â‚ ¬4,000. In that case, the full cost per unit includes a part of the development costs of the type 2 engine, namely â‚ ¬200 per engine. In fact, these development costs are also covered by the income from the production of the type 2 engine. The relatively low, additional cost of developing type 2a (by adapting type 2) will be covered if some cheaper components for type 2a are not taken into account when the cost per unit is calculated. The variabele costs per engine are set at â‚ ¬2,500. Kamp does not yet know the exact prices of the engines which Black and FER have offered to Mercier, but it suspects that they range between â‚ ¬3,750 and â‚ ¬4,250. Technically speaking, the Black and FER engines are probably not as good as the Kamp engines, but they probably meet Mercier’s requirements. Now they know all this, Robert Drover and Michel Dingman are preparing themselves for another meeting with Guy Mercier, during which they want to put forward a proposal for the price at which Kamp is willing to supply the type 2 engine. Drover and Dingman want to get a transfer price which will satisfy Kamp in the near as well as the more distant future. Suggested assignment Being a consultant, you have been asked to make a report for the board of the Vecu concern in which you are to answer the following questions. 1. What transfer price should Kamp insist on, in your opinion, if it were to supply the type 2a engine to the MB division now and in the future? Please give arguments for your proposal. You should at least consider the principle ‘minimum transfer price = variable cost per unit + opportunity costs for the supplier’ and the guidelines Vecu has for transfer prices. Please draw ttention to the interests of Kamp Motors as well as those of Vecu as a whole. Taking into consideration Vecu’s transfer price policy, what do you think of Guy Mercier’s attitude? 2. Please discuss the possibilities of increasing Kamp’s profit by using the formula for basic cost per unit and by reorgani zing. Please use a concrete example to indicate how the board of Kamp can manipulate the unit costs for the types 2, 3, and 4 by reorganizing its cost information system. How, do you think, can the boards of the Vecu concern and the MB division determine whether Kamp manipulates data on unit costs? 3. Within the Vecu concern, Kamp is obliged to supply engines at cost per unit plus a mark-up for profit. Please compare Vecu’s transfer price system with Vecu’s system of responsibility centres and with Eccles’s theory on transfer pricing. 4. Taking into consideration the product differentiation strategy adopted by Kamp and Vecu, what do you think of Kamp’s idea to collaborate more closely with technical universities and to sell the types 2, 3, and 4 externally as well? (See for example Colbert and Spicer, 1995. ) [1] Authors: Henk J. ter Bogt and G. Jan van Helden, Faculty of Economics – University of Groningen (the Netherlands) [2] Each engine that is produced, i. e. type 2, 2a, 3 or 4, takes up the same amount of Kamp’s production capacity.