Finance analysis of United Utilities and Bristol Water - Free Essay Example

Sample details Pages: 12 Words: 3452 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Title: A comparative financial analysis of United Utilities and Bristol Water to determine who is in the financially healthier position focusing on the interpretation of the figures (what they mean now and in the future) and interpretation (what they mean now and for the future) of key ratios applied. Financial Health Don’t waste time! Our writers will create an original "Finance analysis of United Utilities and Bristol Water" essay for you Create order A companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial health is defined as the state of its finances at a particular time. It is measured by taking a snapshot of its assets and liabilities at one moment in time, usually at the end of a reporting period. . Financial statements ate the best indicators of financial health of a firm. Balance sheet is the financial summation of all activities performed by the company till date. Balance sheet analysis helps in understanding whether a company can wither durations of economic pressures. Balance sheet in conjunction with profit and loss statement gives a picture of how efficiently a firm is using its assets and how much returns it is generating for equity holders. Additionally, financial health relates not only to the past performance of the company but also to its ability to competitively sustain future profitability. Profit and loss statement shows how much a company earned in a period. Latest profit and loss statement indicates current profitability of operations. Assessing financial health is not just looking at absolute numbers. It is also about how much return a company generates on its capital, how efficiently it employs working capital. Cash statements are more of a confirmation of financial health signals obtained from above two analyses. It throws additional light on the quality of information in PL and balance sheet statements. Financial health of Bristol Water and United Utilities The first place to analyse financial health is a balance sheet of a company. Appendix I gives highlight of the Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s balance sheet. Its total fixed assets have increased significantly mainly due to  £47m investment in one of the group companies. The current assets have also increased by 39% leading to a 30% increasing in total assets. On the other hand, current liabilities have decreased and company had positive current assets as compared to negative current assets in the previous year. This shows that the liquidity of the company has increased and is a good sign of improving financial health. Long term liabilities have increased to finance investment in a group company. After paying dividends, the shareholders funds increased by  £3.8m. Increase in shareholders funds shows the healthy state of the company. In case of United Utilities, the total fixed assets have increased by more than 10% to  £7,958m. This growth is mainly driven by increase in tangible assets, an indicator of higher value of assets. Another sign of improvement in companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial health is the increase in its current assets and decrease in current liabilities. This has increased the current net assets, a sign of improving liquidity. The increase in net debts is more than countered by increase in assets and this reflects in massive improvement in shareholders funds at over 21%, which is higher than growth in Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s shareholders funds. A higher shareholders fund indicates that United Utilities is in good financial health. Appendix II shows the highlight of last two profit and loss statements of Bristol Water and United Utilities. Bristol Water sales increased by just 1% to  £70.7m in 2004. The cost of sales also increased by 1% which means gross margin à ¢Ã¢â€š ¬Ã¢â‚¬Å" ratio of operating profit to sales has remained same. The earnings before tax decreased due to significant increase in interest in 2004. But this was countered by reduction in tax by about 60%. It resulted in profit after tax increased by 30% to  £11.5m in 2004. 30% increase in profits is a good signal of increasing profitability and value of the company. In case of United Utilities, its sales increased by 10% to  £2,115m in 2004. This increase is much more significant when we compare to 1% increase in case of Bristol Water and indicates that United Utilities growth is top driven. On the other hand, the cost of sales increased by just 8.9%, which is a good indicator of increasing profitability. Lower percent increase in costs as compared to sales means that additional sales were achieved at higher profits. The above two scenarios should have led to even higher % increase in earnings before interest had there not been a significant profit from the sale of operations in 2003. Also lower per cent increase in earnings before tax means percent increase in interest was higher than percent increase in earnings before interest and taxation. The profit after tax was  £361m in 2004. It increased by 30% due to exceptional  £85m tax charge in 2003. Overall both Bristol Water and United Utilities are profitable businesses. Profit after tax is what investors are looking for and both the companies increased it by 30%. While the increase in case of Bristol Waters was due to massive reduction in taxation, the growth was more sales driven in case of United Utilities. This indicates that profit after tax growth pattern is more sustainable in case of United Utilities as compared to Bristol Waters. Cash flow statements are the third part of financial health analysis. Appendix III gives the highlight of cash flow statements of the two companies. Both companies had positive net cash inflows from operations. The primary earnings of a company comes from its operations and if cash flows from operations itself are negative than a company has got very less chances of survival unless it turns the operation cash flows into positive. Cash flows from investment and financing are only secondary. A company that finances its operations and investments without external financing is in very strong financial health. Business performance measures Business performance is best measured by analyzing various financial ratios. Ratios allow companies to be compared on current versus past performance and also with different companies. By comparing its ratios to those of other businesses of the same size within the same industry, firms can better determine areas in which they are competitively advantaged or disadvantaged. Ratios present both the strengths and weaknesses of a business, but they are only indicators targeting areas that require further research. Operating profit margin Operating profit margin is the first and most primary indicator of companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance. All other indicators are dependent on other things which could be separated from basic business. Operating Profit Margin = Operating profit / Sales Appendix IV shows operating margin calculations. Both Bristol Water and United Utilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ operating profits margins have remained same over both the years and it is 27 % in both the cases. This is because both businesses are regulated by government and can only charge a certain amount for their services and products. It is clear from above that profits increase can mainly be achieved by increase in sales rather than by reduction in costs. The chances of higher organic growth are limited due to inelastic nature of water consumption. Companies can achieve substantial growth either by acquisitions or by diversifying into other businesses. Fixed asset turnover Higher fixed asset turnover indicates that a firm is making better use of its assets. Fixed asset turnover = Turnover / Fixed Asset Appendix V shows fixed asset turnover ratio of the two companies. Bristol Water is able to better employ its fixed assets by generating higher sales per unit of fixed assets. While United Utilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ fixed asset turnover has remained same, Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s ratio has come down due to significant increase in investment in group companies. On the question of which of these two companies is able to generate higher operating margin per unit of fixed assets, we multiply fixed asset turnover and operating margin. Since operating margins of both companies are same and Bristol Water has higher fixed asset turnover ratio, Bristol Water has higher operating margin per unit of fixed assets. Bristol Water is in better financial health and will remain so because of its ability to generate higher operating margin per unit of fixed assets. Return on capital employed The most important ratio describing financial health of a firm is return on capital employed. Capital employed is the finance provided either as equity or debt net of cash. The income used for measuring is earning before interest and tax to take care of the funds provided by net debt. Return on capital employed = EBIT / (Shareholders funds + Net debt) Appendix VI shows return on capital for both the companies. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s ROCE has decreased from 13.5% in 2003 to 9.3% in 2004. Unitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s ROCE has also decreased but only marginally from 9.4% to 9.0%. Significant drop in Bristolà ¢Ã¢â€š ¬Ã¢â€ž ¢s ROCE is because of massive increase in denominator. Net debts increased to  £140m from  £74m. The increase in net debt was not matched by the corresponding increase in earnings and hence ROCE decreased. Bristol Water is a more efficient user of capital even though the gap in ROCEs of Bristol Water and United Utilities is quite less now. Higher ROCE means that Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial health is better than that of United Utilities. If Bristol Water is able to generate higher earnings from its investments made in the last year, its ROCE will increase. Return on equity While return on capital employed shows how much firm earned, return on equity shows what is left for ordinary shareholders. Return on equity = Net income after minority and preference dividends / Average book equity, excluding minority and preference shares Appendix VI shows return on equity calculations. Preference shareholders are more like debt than ordinary shareholders. They have higher ranking than ordinary shareholders and get a fixed return. So we have excluded preference dividend from total earnings to obtain amount available to ordinary shareholders. Similarly we have also excluded minority interest from total shareholders to obtain equity shareholders funds. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s return on equity at 17.6% is much higher than United Utilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ return on equity at 11.7%. Also Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s ROE increased significantly from 14.0% over the year. The use of lower interest rate preference shares has increased returns to ordinary shareholders. Dividend cover Dividend cover is expressed as ratio of profit after tax to dividend. Dividend Cover = Profit after tax / dividend Appendix VII shows dividend cover calculations. A company with higher dividend cover ratio is in better financial health as it can safely keep up dividend payments even if there is downward movement in income in future. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial health, when viewed with respect to dividend cover has improved in the last year. In 2003, it paid dividend higher than its profit after tax meaning dividend was funded from previous profits. A company canà ¢Ã¢â€š ¬Ã¢â€ž ¢t sustain that for long. Latest dividend cover of 1.52 means that Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s can easily pay dividends from its current earnings and hence it is better financial shape. United Utilityà ¢Ã¢â€š ¬Ã¢â€ž ¢s dividend cover ratio has also increased to 1.14. Though it is not as high as Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s dividend cover ratio, it still indicates stable financial condition. Interest cover Interest cover is useful in assessing the survival of a business. Many business fail because of their inability to pay interests and debts. A higher interest cover means a business can easily meet its interest payments without facing financial distress. Interest cover = EBIT / Interest payable A ratio of less than 1 would mean that company is having problems in generating enough earnings to meet its interest payments. Appendix VIII shows interest cover calculations. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s interest cover has decreased from 3.7 to 3.1 due to significant increase in interest costs. The company took  £70m of additional loans in the last year and this has increased interest costs. Bristolà ¢Ã¢â€š ¬Ã¢â€ž ¢s interest cover is higher than 2.4 interest cover in case of United Utilities. Bristolà ¢Ã¢â€š ¬Ã¢â€ž ¢s interest payments would probably increase next year when it will have to pay one year full interest on additional loan. Nonetheless both companies appear in good financial health with respect to their ability to pay interests in future. Cash flow interest cover Cash is the king. Lenders are interested in cash generating capacity of the business. Though earnings are a good measure of strength of a business, it is ultimately cash that counts during financial distress. Cash flow interest cover = Net cash inflow from operating activities / Interest payable Appendix VIII shows cash flow interest cover ratio. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s ash flow interest cover ratio at 5.2 is much higher than 3.7 in case of United Utilities. Though both companies generate high amount of cash to repay interest, Bristol Water is in superior financial health due to higher cover. Due to higher safety of margin, lenders would feel more comfortable in giving Bristol Water debt as compared to United Utilities. Cash from operations to net income ratio A companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s quality of earnings can be judged from the ratio of its operating cash flow to net income. Higher cash flow to net income ratio means indicates higher quality of earnings as accrual earnings carry a risk, howsoever insignificant. It also shows less use of accounting gimmicks in manipulation of earnings. Appendix IX shows net cash flow from operations to net income ratio. Both companies have high net cash flow from operations to net income ratio indicating the solid nature of earnings. Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s higher ratio at 2.96 means that it is in better financial health than United Utilities. Financing measures Trade debtor days It reflects how much of a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s capital is blocked in running its operation. Clients take time to pay and the higher time they take, the more capital is required to finance operations. The company with lower trade debtor days is more efficiently using its working capital. Trade debtor days = Trade debtors / Sales * 365 Appendix X shows the trade debtor days for both companies. If we look at individual levels first, Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s trade debtors days have increased by 27% while that of United Utilities have decreased by 8%. This means that Unitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s management has reduced the capital required to run operations and it is a sign of improving financial health. But when we compare two companies, we find that United Utilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ trade debtor days are still higher than those of Bristol Waters. So though Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s efficiency in working capital management has slipped in the last year, it is still better than that of United Utilities. Trade creditor days Trade creditor days represent on average how much time the company takes to pay its creditors. The higher the time a company takes the lesser capital it would need from its investors and would use creditorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ capital to finance its operations. Trade creditor days = Trade creditors / Sales * 365 Appendix X shows trade creditor calculations. Bristolà ¢Ã¢â€š ¬Ã¢â€ž ¢s trade creditor days have decreased whereas Unitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s trade creditor days have increased. This means that now United is funding more of its operations form the money owed to its creditors whereas Bristol is funding operations with more of shareholders money. When we look at both trade debtors and creditors, United has improved the efficiency of its working capital management whereas it has slipped in case of Bristol Water. Additionally, comparing absolute trade creditor and trade debtor days, it appears that the companies are converging. This is not unexpected given the regulatory control and mature state of the business. Structure of assets and claims Analysis of funding structure is almost equally important as analysis of performance. Funding structure will impact how much shareholders will obtain for each pound of total assets. Book gearing Book gearing measures how a firm funds itself or how much of each pound worth of asset is financed through debt or equity. Book gearing = Net debt / capital employed Appendix XI shows book gearing calculations. Almost two-thirds of Bristol Waterà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets are funded from debts whereas the figure is about half in case of United Utilities. Cost of debt is lower than cost of equity. The advantage of high gearing is that the company can obtain cheaper sources of capital and use financial leverage to increase share holders returns. The disadvantages occur when debt levels are very high and it may lead to bankruptcy due to a company not meeting debt covenants. It is difficult to judge what is the dangerous level of debt for a business. Looking at the characteristics of Bristol Water and United Utilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ business and there strong profit and cash generation ability, these companies can sustain higher levels of debt than normal businesses. Higher return on equity in case of Bristol Water is because of increase in profit and higher debt levels. So Bristol water is not only in financially good state, but also efficiently employing various sources of capital to generate higher returns for its shareholders. Current ratio A large factor determining a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial health is its liquidity. Liquidity is best measured by current ratio. Current liabilities are the immediate concern of any company and the higher liquidity of current assets makes it a perfect candidate to satisfy current liabilities. Current ratio = Current assets / current liabilities Appendix XII shows the current ratio. It is almost same in both the companies and also moved in tandem over the last year. Also increase in current ratio signifies better financial health of the companies. Any ratio more than 1 means that company can easily meet it current obligations without having to liquidate anything more than current assets. Acid or Quick ratio Acid test or quick ratio is a conservative approach towards current ratio. Inventory sale would normally be at lower than cost price and may not be as liquid as cash or short term investments. Acid test or quick ratio = (current assets à ¢Ã¢â€š ¬Ã¢â‚¬Å" inventory)/current liabilities Appendix XII shows acid ratio calculations. Because of the nature of business of Bristol Water and United Utilities, inventory is very less. So there is almost no difference between current ratio and acid ratio. Conclusion Both Bristol Water and United Utilities are in strong financial health. Their have good mix of assets and liabilities. United Utilities is better when it comes to sheer size of numbers. Bristol Water on the other hand is more efficient user of capital. Both companies are earning a good return on their assets and have high chances of survival in the long run. Appendix I à ¢Ã¢â€š ¬Ã¢â‚¬Å" Balance Sheets of Bristol Water and United Utilities Bristol Water United Utilities  £m 2004 2003 % change 2004 2003 % change Tangible Assets 193.8 184.6 5.0% 7,769.4 7,087.3 9.6% Intangible Assets 0.0 0.0 116.1 69.2 Investments 47.0 0.0 73.0 59.6 Total Fixed Assets 240.8 184.6 30.4% 7,958.5 7,216.1 10.3% Current Assets 37.7 27.1 39.1% 1,560.9 1,174.9 32.9% Total Assets 278.5 211.7 31.6% 9,519.4 8,391.0 13.4% Current Liabilities -31.2 -40.8 -23.5% -1,374.8 -1,424.1 -3.5% Net current assets/(liabilities) 6.5 -13.7 -147.4% 186.1 -249.2 -174.7% Long term liabilities -150.8 -77.7 94.1% -4,702.0 -4,070.6 15.5% Deferred Income -8.4 -8.4 0.0% 0.0 0.0 Provision for liabilities -18.7 -19.2 -2.6% -339.7 -345.0 -1.5% Total long term liabilities -177.9 -105.3 68.9% -5,041.7 -4,415.6 14.2% Total shareholders fund 69.4 65.6 5.8% 3,102.9 2,551.3 21.6% Source: Bristol Water Annual Report 2004 (www.bristolwater.co.uk) and United Utilities Annual Report 2004 (www.unitedutilities.com) Appendix II à ¢Ã¢â€š ¬Ã¢â‚¬Å" Profit Loss statement of Bristol Water and United Utility  £m Bristol Waters United Utilities 2004 2003 % change 2004 2003 % change Sales 70.7 70.0 1.00% 2,115.5 1,920.5 10.15% Cost of Sales 51.1 50.6 0.99% 1,489.9 1,368.8 8.85% Operating Profit 19.6 19.4 1.03% 583.7 524.9 11.20% EBIT 19.4 19.0 2.00% 585.6 558.9 4.78% EBT 13.5 14.6 -7.53% 337.5 327.5 3.05% PAT 11.1 8.5 30.59% 361.0 277.8 29.95% Source: Bristol Water Annual Report 2004 (www.bristolwater.co.uk) and United Utilities Annual Report 2004 (www.unitedutilities.com) Appendix III à ¢Ã¢â€š ¬Ã¢â‚¬Å" Cash flow statement Bristol Water United Utilities  £m 2004 2003 % change 2004 2003 % change Net cash flow from operating activities 32.9 29.7 10.8% 923.5 851.5 8.5% Return on investment servicing of finance -7.1 -6.7 -151.8 -218.9 Capital expenditure -71.2 -16.1 342.2% -1018 -697.9 45.9% Financing 72 -3.4 922.9 613.8 50.4% (Decrease)/Increase in cash -1.6 2.4 -166.7% 9.6 10.3 -6.8% Source: Bristol Water Annual Report 2004 (www.bristolwater.co.uk) and United Utilities Annual Report 2004 (www.unitedutilities.com) Appendix IV à ¢Ã¢â€š ¬Ã¢â‚¬Å" Operating Margin  £m Bristol Waters United Utilities 2004 2003 % change 2004 2003 % change Sales 70.7 70.0 1.00% 2,115.5 1,920.5 10.15% Cost of Sales 51.1 50.6 0.99% 1,489.9 1,368.8 8.85% Operating Profit 19.6 19.4 1.03% 583.7 524.9 11.20% Operating Margin 27.7% 27.7% 27.6% 27.3% Appendix V à ¢Ã¢â€š ¬Ã¢â‚¬Å" Fixed Asset Turnover Bristol Water United Utility 2004 2003 2004 2003 Sales 70.7 70 2115.5 1920.5 Fixed Assets 240.8 184.6 7958.5 7216.1 Fixed Asset Turnover 0.29 0.38 0.27 0.27 Appendix VI à ¢Ã¢â€š ¬Ã¢â‚¬Å" Return on Capital Employed and Return on Equity Bristol Water United Utility 2004 2003 2004 2003 Return on capital employed EBIT 19.4 19.0 585.6 558.9 Net debt 140.3 74.8 3,438.4 3,373.9 Shareholders funds 69.4 65.6 3,102.9 2,551.3 Total capital employed 209.7 140.4 6,541.3 5,925.2 Return on capital employed 9.3% 13.5% 9.0% 9.4% Return on equity Profit after tax 11.1 8.5 361.0 277.8 Preference Dividend -1.1 -1.1 0.0 0.0 Net income to ordinary shareholders 10.01 7.41 361 277.8 Total shareholders funds 69.4 65.6 3,102.9 2,551.3 Minority interest -19.6 -17.7 Preference shares -12.5 -12.5 Equity shareholders funds 56.9 53.1 3,083.3 2,533.6 Return on equity 17.6% 14.0% 11.7% 11.0% Appendix VII à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dividend Cover Bristol Water United Utility 2004 2003 2004 2003 Profit after tax,  £m 11.1 8.5 361.0 277.8 Dividend,  £m 7.3 16.9 315.3 264.8 Dividend cover 1.52 0.50 1.14 1.05 Appendix VIII à ¢Ã¢â€š ¬Ã¢â‚¬Å" Interest cover and cash flow interest cover Bristol Water United Utility 2004 2003 2004 2003 EBIT,  £m 19.4 19.0 585.6 558.9 Interest payable,  £m 6.3 5.2 248.1 231.4 Interest cover 3.1 3.7 2.4 2.4 Net cash inflow from op. activities,  £m 32.9 29.7 923.5 851.5 Interest payable,  £m 6.3 5.2 248.1 231.4 Cash flow interest cover 5.2 5.7 3.7 3.7 Appendix IX Net cash flow from operations to net income ratio Bristol Water United Utility 2004 2003 2004 2003 Net cash inflow from op. activities 32.9 29.7 923.5 851.5 Net income 11.1 8.5 361.0 277.8 Cash flow to net income ratio 2.96 3.49 2.56 3.07 Appendix X à ¢Ã¢â€š ¬Ã¢â‚¬Å" Trade debtor and trade creditor Bristol Water United Utility 2004 2003 % 2004 2003 % Sales 70.7 70.0 2,115.5 1,920.5 Trade debtors,  £m 8.6 6.7 317.4 313.6 Trade debtors days 44.4 34.9 27.09% 54.8 59.6 -8.12% Trade creditors,  £m 2.6 3.5 72.6 61.2 Trade creditors days 13.4 18.3 -26.45% 12.5 11.6 7.69% Appendix XI à ¢Ã¢â€š ¬Ã¢â‚¬Å" Book gearing Bristol Water United Utility 2004 2003 2004 2003 Net debt 140.3 74.8 3,438.4 3,373.9 Shareholders funds 69.4 65.6 3,102.9 2,551.3 Total capital employed 209.7 140.4 6,541.3 5,925.2 Book gearing 66.9% 53.3% 52.6% 56.9% Appendix XII à ¢Ã¢â€š ¬Ã¢â‚¬Å" Current and Acid Ratios Bristol Water United Utility 2004 2003 2004 2003 Current Assets,  £m 37.7 27.1 1,560.9 1,174.9 Current Liabilities,  £m 31.2 40.8 1,374.8 1,424.1 Current Ratio 1.21 0.66 1.14 0.83 Stocks,  £m 0.7 0.6 17.1 20.6 Current Assets Stocks,  £m 37.1 26.5 1,543.8 1,154.3 Acid Ratio 1.19 0.65 1.12 0.81

Emotivism - 1571 Words

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Within this essay the application of the three classical theories: utilitarianism, deontology, virtue ethnics; and the three alternative perspectives relativism, emotivism, and ethnical egoism will depict the actions, responsibly, and goal of the media. Due to the fact that the media extends to millions of people, â€Å"majority rules† is the best way to control how and what is distributed by the media. Utilitarianism

The Great Gatsby and the American Dream Essay Example For Students

The Great Gatsby and the American Dream Essay Introduction F. Scott Fitzgerald’s novel, â€Å"The Great Gatsby†, is one of the few novels he wrote in 1925. The novel takes place during the 1920’s following the 1st World War. It is written about a young man named Nick, from the east he moved to the west to learn about the bond business. He ends up moving next to a mysterious man named Gatsby who ends up giving him the lesion of his life. After love circles with Gatsby and his cousin Daisy, lastly Jordan and gossip resulting with killings end up discussed over his experience resulting going back east. Through reading the book, it shows how the experience of selfness and World War 1 made the high social optimistic over their lives. It showed how they wanted to forget the past and build themselves back into their social class. Also, by the experience of Daisy and Jordan treatment from the men in the stories allows the reader to see how time still hasn’t changed how relationships work with men. This novel is a great novel to give an example on how reality is to people even the high class. Through the discussion of the passage, poem and scholarly article will show how the path towards the American Dream can turn into a negative or positive outcome in a person’s life. Theme When Mr. Fitzgerald wrote â€Å"The Great Gatsby,† he described the actions of the human society. In a certain way, not only did he describe and critic the high class but also the lower class, which ended up critiquing the American Dream. The American Dream was a idea give to believe that a human being should pursue being happy, wealthy, and loved which has cause any human being to go in search for this idea. All that is end up being found is the fact of having the illusion of having more material is to be happy than being happy by valuing what you already have. Gatsby would be a great example of not valuing his materials. He had everything he wanted – except Daisy of course – but he never used or appreciated the materials he was surrounded by. â€Å"You know, old sport, I’ve never used that pool all summer,† said Gatsby. He didn’t value anything but Daisy since the reason for everything he did was for her. It only leaves to question to whether he really loved her or wanted her wealth or maybe just even the accomplishment of having her.

Analysis of Case Laws involving Business and the Bill of Rights, Torts, Administrative Agency and Contracts

Introduction Businesses are influenced by the environment they operate in. The environment is based on factors which interplay to determine the operations and scope of the business. Law is one such factor that determines the extent of the legality of the operations of a business. Advertising We will write a custom essay sample on Analysis of Case Laws involving Business and the Bill of Rights, Torts, Administrative Agency and Contracts specifically for you for only $16.05 $11/page Learn More The business and the bill of rights concept apply with the legislation available to the businesses so as to limit their operations and protect the consumer. Administrative agency deals with handling issues relating to agency relationships. Torts and contracts govern the involvement of the business in tortuous issues and the protection of the fiduciary relationships in business. This paper provides a case brief involving each of the issues mentioned above as they are applied in business law. Business and the Bill of Rights Case Brief: Burden v. The State of Texas [1698-99] Facts: The petitioner, Burden, sold a video tape that appeared obscene to a detective of the state of Texas. During the hearing in the trial court, the appellant offered cumulative evidence of the fact that the library also has sites that allow the viewing of pornographic images. This cumulative evidence was however considered misleading. He was found guilty of selling obscene material with the knowledge of the obscene nature. Burden then appealed against the conviction to the criminal court of appeals of Texas. Issues: The issue of concern is whether the conviction of obscenity promotion had sufficient legal evidence to support it. Ruling: The criminal court of appeals of Texas held that the evidence was sufficient in establishing that the appellant knew the content and character of the video tape and thus affirmed the conviction. Analysis: In establishing the sufficiency of the evidence, the court based its ruling on cases such as Green v. State and McDuff v. State. According to the Texas penal code section 43.23 (c) (1), charges on the offence of obscenity promotion are based on the defendant’s knowledge of the material as having a character and content that is sexually explicit. Advertising Looking for essay on business corporate law? Let's see if we can help you! Get your first paper with 15% OFF Learn More The court needed to be able to establish whether the appellant was aware of the material content. This was based on the case of Hamling v. United States. This means that the court did not need to prove that Burden knew that the content material was obscene. It was just enough that the person knew the material of the video tape. However, the appellant had the right to produce evidence in terms of comparable materials so as to counter the evidence given by the state and to prove that there were other governmental institutions that had access to such pornographic material. The court determines the quality of such evidence to establish what evidence was liable to the case and which one was misleading. Hence, the evidence was found to be misleading and confusing to the jury. Minority Rationale: If there is a lack of sufficient evidence to prove that the defendant knew the material content to be obscene, he is entitled to receive the protection of first amendment rights that allow for free self expression. Comment: Self expression is very important as is protected in the first amendment act, but should consider the influence on the other people. Follow up Questions and Answers Political speech and business speech differ mainly in content in that political speech is meant to create a good impression of character of the person, while business speech is meant to increase the awareness of the business to the public through creating a better image of the business. The industries that are strictly regulated are not accorded the fourth amendment guarantees due to the protection of the greater good. This is because the protection of the public good is a better objective than protection of the business. This is fair to the extent that such businesses are likely to take advantage of ignorant consumers and vulnerable population and gain higher profits (Meiners, Ringleb Edwards, 2006). The case law was judged well because despite the use of cumulative comparative evidence, the video shop openly exposed the society to obscenity. Moreover, Burden was aware of the nature of the materials but still sold them without making the customer aware of the obscenity.Advertising We will write a custom essay sample on Analysis of Case Laws involving Business and the Bill of Rights, Torts, Administrative Agency and Contracts specifically for you for only $16.05 $11/page Learn More Administrative agency Case Brief: Pruett v. Harris County Bail Bond Board [05-0283] Facts: Pruett, a n agent of a bonding company, violated the rules 24 and 25 set by the Harris County Bail Bond Board. He challenged the authority of the board of setting the rules claiming that they are unconstitutional although he acknowledged the violations. The board suspended his license for seven years. Pruett filed a suit in the trial court which granted his motion and the enforcement of the rules while the court of appeal asserted that the board acted within its mandate of the promulgation of the solicitation rules. While the constitutionality of rules 25 and 25 was established, the prohibition of bondsmen who had no prior relationship with the individual requiring the bond within 24 hours of arrest was decided to be an unconstitutional restraint. This was petitioned in the supreme court of Texas. Issues: The issues identified in the case were whether the board acted within its authority in making the rules and whether the restrictions on the bail bond customers were constitutional. Ruling: The Supreme Court held that the board acted within its authority to make rules. In addition, the non-business hours rule was considered constitutional while the 24 hours rule and the open warrant were considered a violation of the rights of the plaintiff. Analysis: The court relied on the Occupation Code which was in existence at the time the rules were promulgated. This implied that since the Occupation Code allowed the board to make rules and measures that would regulate the industry, the board had acted within its powers. Advertising Looking for essay on business corporate law? Let's see if we can help you! Get your first paper with 15% OFF Learn More The fifth circuit argued that the board acted in violation of the amendment rights of Pruett, while the prohibition of bondsmen on grounds of warrant was not in line with the interests of the board hence cannot survive scrutiny constitutionally. The ban of the 24 hours deal did not prove the deceptive, misleading or illegal nature of the information Pruett wanted to pass to the customers. Regarding the non-business hours, it was noted that even before the solicitation rules were set, it was illegal to make business calls to customers at that time with the restriction of the bondsmen that had a prior relationship with the customer. This was to establish equal competition because the call from such a person at the restricted hours would be received (Keenan Riches, 2007). Minority Rationale: The change in the definition of â€Å"bonding business† to mean â€Å"the execution of a bail bond by a bail bond surety† by the Harris board limited its regulatory power while the local rules are a violation of the Texas public information act through preventing access of information of public interest especially on incarcerations and open warranties. Comment: The powers of a regulating body need to be communicated to the agents especially to the extent they are binding on them. Follow Up Questions and Answers The relationship between Pruett Company and Harris Bond Board represents an agency relationship. This is because as a government body which was mandated to offer bond services to customers, the board offers the agent companies the opportunity to offer such services but limits their operations. The board, being the administrative body, has powers to set the rules of operation for the agents, issue licenses to agents, supervise their work and suspend their licenses. The agents have the responsibilities of offering bond services to customers and to make reports of its operations to the board. In case of any issue requiring more analysis, the agents are re quired to file suits to court (Meiners et al., 2006). Torts Relating to Business Case Brief: Tiller v. McLure [02- 0136] Facts: McLure Barbara and her husband were contractors of the defendant, Tiller. She then sued Tiller on the claim that he had caused her emotional distress. This emotional distress she claimed was from the way Tiller had conducted himself in the contracts of construction. The trial court did not find sufficient evidence purporting that Tiller was guilty and held that McLure takes nothing. On appeal, the court of appeal held that there was sufficient evidence to prove that Tiller had caused emotional distress to McLure and established that punitive damages were to be paid to McLure. The case was then subjected to the Supreme Court of Texas. Issues: The main issue is whether there is enough evidence to decide the case in the favor of McLure. Ruling: The Supreme Court held that there is no sufficient evidence to support the finding of the appeal court that Tillerâ €™s conduct was extreme thus this does not fall in the category of a matter of law. The court thus decided that McLure should not be compensated. Analysis: The court is mandated with the obligation of establishing that the defendant acted in a manner that was outrageous, extreme, had intended to do it and it caused emotional distress that was severe to the plaintiff. This then provides the basis of how much damages the plaintiff can be paid by the defendant. An outrageous act is termed as one that is beyond decency and not tolerable in the community. Tiller’s conduct was termed extreme when he proposed the termination of the contract if the business was closed in the entire day of the funeral although he requested some workers to attend the funeral. Minority Opinion: The actions of Tiller can be termed extreme and outrageous due to the persistent calls and insensitivity even in the death of McLure. Comment: The issue of the extent to which a disturbance is outrageous and warrants damage if determined by the court provides the likely best opinion. Follow Up Questions and Answers Torts in business include defamation, unfair competition, interference with contractual relations and an advantage, trade law or common law trademark infringement among others. The concept of warranties refers to the assurance given by a party to a contract as to the condition upon which the other party can use to make a decision whose result binds the other party. Warranties include the warning signs that the producer gives to a consumer and which would influence the use of the product. Liability occurs where there is a duty to act reasonably which was breached and as such the party suffered injury linked to the breach of duty (Emerson, 2003). The use of warning signs in products is adequate because it is assumed that the consumer is responsible for ensuring that they are aware of the conditions of the product they are buying. It however requires further disclosure through advertisement which creates awareness among the consumers. Contracts Case Brief: ERI Consulting Engineers Inc v. Swinnea [07- 1042] Facts: Snodgrass and Swinnea were partners in a business. Swinnea colluded with others in forming Air Quality which was to be involved in the buy out but he did not disclose this information to Snodgrass. He lowered production at ERI after the buy out from which ERI lost the contract with Merico. Later, Swinnea formed a different company, Brady Environmental, which competed for business with ERI. Swinnea was fired and Snodgrass fined a law suit against him through ERI. The trial court decided that Snodgrass and Swinnea were liable to be paid damages. The court of appeal ruled in favor of Swinnea claiming that the evidence was legally insufficient to warrant damages. Issue: The issue in this case was whether the forfeiture of contractual consideration would be available as a remedy against Swinnea. Ruling: The Supreme Court of Texas held that evidence existed to show that there was considerably loss of profits hence Snodgrass and ERI should receive compensation for the loss but would receive nothing for their conspiracy against Brady Environmental. On the other hand, Swinnea was liable for his involvement with Air Quality. Analysis: The court established that Swinnea owed a fiduciary duty to ERI and Snodgrass which was violated through the inducement of the buyout and as a result the parties experienced a loss in profits. In the other case, ERI and Snodgrass would not receive anything as damages on the issue of conspiracy against Brady Environmental. Minority Rationale: If the profit lost was a result of the lack of the contract with Merico, then the profit calculation should be based on reduction of the profits gained from Air quality. Comment: Contracts owe a fiduciary duty to the parties and it is important for any dealings to be disclosed to the other party. Follow Up Questions and Answers The element of contract under violat ion was the breach of trust and fiduciary duty which could have been avoided with the disclosure of the interest Swinnea had in Air Quality. The contract is also affected by the inducement of buy out. The plaintiffs, ERI and Snodgrass, received damages for the loss in revenues. Normally contracts need to be in a written form although this is not a binding requirement. Enforceable contracts are contracts which have to be in a written form (Miller Jentz, 2009). Conclusion This paper has reviewed cases in the areas of business and the bill of rights, administrative agency, torts related to business and the contract as they relate to business law. The case analysis and briefing has also involved the review of follow up questions and answers. Reference List Emerson, R. (2003). Business law. New York: Barron’s Educational Series. Keenan, D. J., Riches, S. (2007). Business law. London: Pearson/Longman. Meiners, R. E., Ringleb, A. H., Edwards, F. (2006). The legal environment of b usiness (9th ed.). Mason, OH: Thomson. Miller, R., Jentz, G. (2009). Fundamentals of business law: Summarized cases. Chicago: Cengage Learning. This essay on Analysis of Case Laws involving Business and the Bill of Rights, Torts, Administrative Agency and Contracts was written and submitted by user Braelyn W. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Peers and Piers

Peers and Piers Peers and Piers Peers and Piers By Maeve Maddox More proof that traditional literature is in a state of neglect is the frequent occurrence of the spelling piers when the context calls for peers. I really hope i will [win something] because I have a BIG presentation coming up and that mouse would really impress my piers! And to set the record straight I am not going on safari for that as the sole purpose. Id still like to bring home some trophies to brag about and impress my piers! Ive listened to the Beatles songs. They were all right, but nothing to impress my piers. I was a child and wanted to do things that would impress my piers. I never really thought much about my life until I was in my thirties. Before that time, I was too busy trying to move up the corporate ladder, impress my piers, prove that I was intelligent and go through school. I have many goals but one of them would be to work or produce a project that would truly impress my piers. I dont skate/snowboard to make friends and impress my piers. I found most of these examples in forums and comments where correct expression is not a priority, but one is from a site offering services for sale, and one is from a poem. In each of these examples the word wanted is peers. A peer is a person equal in standing to another. The word comes from Latin par, equal. In some contexts it means noble. The expression peer of the realm, means a member of the aristocracy. The peerage is a system that classifies the aristocracy by rank and title. A woman who belongs to the peerage is a peeress. In general usage a peer is an equal. The state of equality may be civil, economic, or social. Citizens accused of a crime are to be tried by a jury of their peers. The equality can also lie in the area of skill or ability. An extremely gifted craftsman or athlete can be said to have no peer. In French medieval literature, the twelve peers are twelve heroic knights like those of the Round Table in the Arthurian tales. In the Song of Roland, the twelve peers include Roland, Oliver, Bishop Turpin, and the traitor Ganelon. A pier is a vertical support. The structure that supports a bridge is a pier. Cathedrals are built with piers that support the tremendous weight of roof and towers. Piers are inanimate. They are incapable of feeling admiration so theres no point in trying to impress them. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Spelling category, check our popular posts, or choose a related post below:Creative Writing 101List of Greek Words in the English LanguageWords Often Misspelled Because of Double Letters

Management Accounting College Case Study Example | Topics and Well Written Essays - 1000 words

Management Accounting College - Case Study Example Most incumbents at the time of the entry of Southwest Airlines are showing small profits because of low consumer demand, high operation and maintenance costs. However, Southwest Airlines' introduction of a new business model significantly altered this situation. It can be recalled that deregulation has lowered the barrier to entry in the industry as well as enhanced the competitiveness of the players which are previously receiving subsidy from the government. This, in turn, largely contributes to the cost efficiency of airline operators allowing them to charge lower prices to passengers. A low cost carrier like Southwest Airlines typically adopts a business model which offers only a single passenger class and a single type of airplane which allows the company to cut on training and servicing costs. Budget airlines also typically employ a very simple fare scheme which rewards early reservation by increasing the fare charged as the plane fills up. There is usually no reserved seating in order to allow customers to choose their own seats thereby encouraging early and quick boarding (Sorensen 2006). In order to drive down operation costs, technological innovation particularly the internet is used in order to eliminate the huge commission usuall y passed on to travel agencies. Budget airlines also prefer flying on secondary and simplified routes as well as having relatively shorter flights and faster turnaround times. Budget airlines, unlike larger air companies usually skip in-flight catering and other complimentary services replacing this with optional paid-for-in-flight food and drinks. In order to insulate themselves from future increases in oil prices, budget airlines often undertake aggressive fuel hedging, that is, "making advance purchases of fuel at a fixed price for future delivery" (Fuel Hedging 2006). The operation of an airline necessitates the investment in capital which includes the planes, and ports among others. Southwest Airlines also recruited pilots, stewardess, and staff which will run the operation. The company also pays mechanic for the maintenance of its fleet. Looking the company's cost structure; it incurs both direct and indirect costs in order to keep the business running. The fixed costs associated with Southwest Airlines' operations include the monthly maintenance of the mechanic, the insurance paid for its fleet, the expenses associated with the leased properties like the airport, electricity expenses in its offices, and even the rent expense that it pays for its booking premises. These fixed costs can be seen as indirect expenses because they cannot be necessarily identified with a specific product or value (Garrison et al, 2007). These costs are incurred as the air carrier operates and are very significant to keep it in business. However, they cannot be direc tly linked to the specific process of product and process costs. In its daily operations, Southwest Airlines shoulders operations cost. As opposed to business organizations which can directly identify the costs associated in creating a product which is suitable to a specific customer order or requirement, Southwest Airlin

Class Relationships in US Essay Example | Topics and Well Written Essays - 500 words

Class Relationships in US - Essay Example This war turned out to be the biggest war in the history of the world, named as Civil War (Tripp). Civil war was the longest war to be fought; it took five years for American authorities to overcome this war. The central point of this war was the slavery system of black people, and the domination of white people. Civil war pushed America to reconstruct the whole nation of America by bringing them together. The nation’s unity and the new laws regarding the system of replacing slavery and the status of slaves took into consideration. The slavery system was abolished and the black people were given the freedom to utterly claim their-selves as the citizens of America, likewise the whites. The African American identity was allotted to the black nation of US. The blacks were given equal rights to contribute in the elections by voting for their preferred leader, by the US government. The statuses of the slaves were taken care of by giving four million of them the identification of being called as American citizens. Civil war stood out the nation power more superior to the state g overnment. After the Civil War, US nation endured unity and the US quickly became the primary economic power in the world. When we see the US today, it gives us the clear picture of a complete new reformed America. Zero class discrimination is being seen. There is seen to be a strong & equal bounding between blacks and whites. After the coming of Barack Obama the place of class has been changed. The coming of African American President is the proof of present class status of America. Laws are developed in the favor of blacks, for the protection of their rights. With time white has started to equalize themselves with Blacks, but on the basis of religion the issue is still in light. Slavery of Black people has overcome finely. We can see blacks in every industry. Blacks are much motivated to join US army, Hollywood & politics. Blacks are treated equally as