Lease Financing

INTRODUCTION Financial Services basically mean all those kinds of services provided in financial terms where the essential commodity is money. These services include: leasing, hire purchase, consumer credit, investment banking, commercial banking, venture capital, insurance, credit rating, bill discounting, and mutual funds , stock broking, housing finance, vehicle finance, mortgages and car loans, factoring among other things. Various entities that provide these services are basically categorized into (a) Non –Banking Finance Companies b) Commercial Banks, and (c) Merchant Banks. Financial Services in India is too vast and varied too have evolved at one place and at one time. One of the main entities that offer financial services in India is Non-Banking Finance Companies. These NBFCs registered with Reserve Bank of India mainly perform fund based services to the customer. Fund based services of NBFCs include: leasing, hire-purchase and other asset based services whereas fee b ased services of NBFCs include bill discounting, portfolio management and other advisory services.LEASE FINANCING Leasing as financial service is a contractual agreement where the owner (lessor) of equipment transfers the right to use the equipment to the user (lessee) for an, agreed period of time in return for a rental. At the end of the lease period the asset reverts back to the lessor unless there is a provision for the renewal of the contract or there is a provision for the transfers of ownership to the lessee. If there is any such provision for transfer of ownership, the deal is treated as hire purchase.Therefore, a lease could be generally defined as – â€Å"A contract where a party being the owner (lessor) of an asset (leased asset) provides the asset for use by the lessee at a consideration (rentals), either fixed or dependent on any variables, for a certain period (lease period), either fixed or flexible, with an understanding that at the end of such period, the as set, subject to the embedded options of the lease, will be either returned to the lessor or disposed of as per the lessor's instructions†. HISTORY AND DEVELOPMENT OF LEASING The history of leasing dates back to 200BC when Sumerians leased goods.Romans had developed a full body law relating to lease for movable and im movable property. However the modern concept of leasing appeared for the first time in 1877 when the Bell Telephone Company began renting telephones in USA. In 1832, Cottrell and Leonard leased academic caps, grown and hoods. Subsequently, during 1930s the Railway Industry used leasing service for its rolling stock needs. In the post war period, the American Air Lines leased their jet engines for most of the new air crafts. This development ignited immediate popularity for the lease and generated growth of leasing industry.The concept of financial leasing was pioneered in India during 1973. The Firs Company was set up by the Chidambaram group in 1973 in Madras. Th e company undertook leasing of industrial equipment as its main activity. The Twentieth century Leasing Company Limited was established in 1979. By 1981, four finance companies joined the fray. The performance of First Leasing Company Limited and the Twentieth Century Leasing Company Limited motivated others to enter the leasing industry. In 1980s financial institutions made entry into leasing business.Industrial Credit and Investment Corporation was the first all India financial institution to offer leasing in 1983. Entry of commercial banks into leasing was facilitated by an amendment of Banking Regulation Act, 1949. State Bank of India was the first commercial bank to set up a leasing subsidiary, SBI capital market, in October 1986. Can Bank Financial Services Ltd. , BOB Financial Service Ltd. , and PNB Financial Services Limited followed suit. Industrial Finance Corporation’s Merchant Banking division started financing leasing companies as well as equipment leasing and fi nancial services.There was thus virtual explosion in the number of leasing companies rising to about 400 companies in 1990. In the subsequent years, the adverse trends in capital market and other factors led to a situation where apart from the institutional lessors; there were hardly 20 to 25 private leasing companies who were active in the field. The total volume of leasing business companies was Rs. 5000 cores in 1993 and it is expected to cross Rs. 10, 000 cores by March 1995. PARTIES OF LEASE FINANCING ELEMENTS IN LEASE STRUCTUREThis is an explanation of the elements in a lease – the parties, asset, rentals, residual value, etc. This section would also elaborate the unique features of a lease as different from a regular financing transaction. 1. The transaction: The transaction of lease of lease is generically an asset-renting transaction. What distinguishes a lease from a loan is that in the latter, what is lent out is money; in a lease, what is lent out is the asset. 2. Parties to a lease: There are two parties to a lease: the owner and the user, called the lessor and the lessee. The lessor is the person who owns the asset and gives it on lease.The lessee takes the asset on lease and uses it for the period of the lease. Any one can be a lessor, and any one can be a lessee, subject to usual conditions as to competence to contract, or holding of properties. Ownership is no pre-condition for Technically, in order to be a lessor, one does not have to own the asset: one has to have the right to use leasing: the asset. Thus, a lessee can be a lessor for a sub-lessee, unless the parent lessor has restricted the right to sub-lease. 3. The leased asset: The subject of a lease is the asset, article or property to be leased.The asset may be anything – an automobile, or aircraft, or machine, or consumer durable, or land, or building, or a factory. Only tangible assets can be leased – one cannot contemplate the leasing of the intangible assets, s ince one of the essential elements of a lease is handing over of possession, along with the right to use. Hence, intangible assets are assigned, whereas tangible assets may be leased. The concept of leasing will have the following limitations: 1. What cannot be owned cannot be leased. Thus, human resources cannot be â€Å"leased†.Leasing of immovable properties may have complications: 2. While lease of movable properties can be affected by mere delivery, immovable property is incapable of deliveries in physical sense. Most countries have specific laws relating to transactions in immovable properties: if such law provides a particular procedure for a lease of immovable or real estate, such procedure should be complied with. For example, in Anglo-Saxon legal systems (UK, Australia, India, Pakistan, etc. ), transactions in real estate are not valid unless they are effected by registered conveyance.This would apply to lease of land and buildings, and permanent attachments to land . 3. A lease is structurally a rental for the lease period: with the understanding that the asset will be returned to the lessor after the period. Thus, the asset must be capable of re-delivery: it must be durable (at least during the lease period), identifiable and severable. Leased asset is a necessary pre- condition: The existence of the leased asset is an essential element of a lease transaction – the asset must exist at the beginning of the lease, during the lease and at the end of the lease term.Non-existence of the asset, for whatever reason, will be fatal to the lease. 4. Lease period: The term of lease, or lease period, is the period for which the agreement of lease shall be in operation. As an essential element in a lease is redelivery of the asset by the lessee at the end of the lease period, it is necessary to have a certain period of lease. During this certain period, the lessee may be given a right of cancellation, and beyond this period, the lessee may be given a right of renewal, but essentially, a lease should not amount to a sale: that is, the asset being given permanently to the lessee.In financial leases, is common to differentiate between the primary lease period and the secondary lease period. The former would be the period over which the lessor intends recovering his investment; the latter intended to allow the lessee to exhaust a substantial part of the remaining asset value. The primary period is normally non-cancelable, and the secondary period is normally cancelable. 5. Lease rentals: The lease rentals represent the consideration for the lease transaction. This is what the Lessee pays to the Lessor.If it is a financial lease transaction, the rentals will simply be the recovery of the lessor's principal, and a certain rate of return on outstanding principal. In other words, the rentals can be seen as bundled principal repayment and interest. If it is an operating lease transaction, the rentals might include several elements dep ending upon the costs and risks borne by the Lessor, such as: * If the lessor is bearing any repairs, insurance, maintenance or operation Costs, them charges for such cost. Depreciation in the asset. * Interest on the lessor's investment. * Servicing charges or packaging charges for providing a package of the above service. 6. Residual value: Put simply, â€Å"residual value† means the value of the leased equipment at the end of the lease term. If the lease contains a buyout option with the lessee, residual value would mostly mean the value at which a lessee will be allowed to buy the equipment.If there is no embedded purchase option, residual value might mean the value that the lessee or someone else assures will be the minimum value of the equipment at the end of the lease term. This is typical in case of financial leases where the lessor cannot grant a buyout option to the lessee; for the lessor to protect himself against asset-based risks, he would take an assured residua l value commitment either from the lessee himself or from a third party, typically an insurance company.The residual value might also the value that the lessor assures to pay-back to the lessee in case the lessee returns the asset to the lessor: that is, it might be the value the lessor assures as the minimum value of the equipment. Such a lease, obviously an operating lease because the lessor is taking a risk on asset values, is a full payout lease, but the lessor agrees to refund the guaranteed value on the lessee returning the equipment at the end of the lease term. 7. End-of-term options: The options allowed to the lessee at the end of the primary lease period are called end-of-term options.Essentially, one, or more, of the following options will be given to the lessee at the end of the lease term: †¢Option to buy (buyout option) at a bargain price or nominal value (typical in a hire-purchase transaction), called bargain buyout option †¢Option to buy at a fair market v alue or fixed, but substantial value †¢Option to renew the lease at nominal rentals, called bargain renewal option †¢Option to renew the lease at fair market rentals or substantial rentals †¢Option to return the equipment In any lease, which option will be suitable depends on the nature of the lease transaction, as also the applicable regulations.For example, in a full payout financial lease, the lessor would have recovered the whole or substantially the whole of his investment during the primary lease period. Therefore, it is quite natural that the lessee should be allowed to exhaust the whole of the remaining value of the equipment. Regulation permitting, the lessor provide the lessee a bargain purchase option to allow the lessee to complete the purchase of the equipment. Buyout option may characterize the lease However, in many jurisdictions, it is the existence of such buyout option that demarcates between lease and as hire-purchase: hire-purchase transaction.If t he lessor is interested to structure the lease as a lease and not hire-purchase, he would be advised not to provide any buyout option, but Instead, to allow the lessee to renew the lease to continue the use of the asset. In essence, a renewal option achieves the same purpose as a purchase, but the lessor retains his ownership as also his reversionary interest in the equipment. Fair market value options, either for purchase of equipment, or for renewal, are typical of operating leases, but are really speaking no more than assuring to the lessee a continued use of the equipment.If equipment has to be bought at its prevailing market value, it can be bought from the market rather than from the lessor – therefore, the fair market value option carries no value for the lessee. 8. Upfront payments: Lessors may require one or more of the following upfront, that is, instant payments from a lessee: †¢Initial lease rental or initial hire or down payment †¢Advance lease rental à ¢â‚¬ ¢Security deposit †¢Initial fees Margins in leases are taken as initial rental: The initial lease rent or initial hire (the word hire is more common in case f hire-purchase transactions) is a surrogate for a margin or borrower contribution in case of loan transactions. Note that given the nature of a lease or hire-purchase as asset-renting transaction, it is not possible to expect a lessee's contribution to asset cost as such. Hence, the down payment or first lease rent serves the purpose of a margin. Between advance lease rent and initial lease rent – the difference is only technical. The whole of the initial lease rental is supposed to be appropriated to income on the date of its receipt, whereas advance rental is still an advance – normally an advance against the last few rentals.Therefore, the advance rental will remain as a deposit with the lessor to be adjusted against the last few rentals. Types of Lease Agreements Lease agreements are basically of two types. They are (a) Financial lease and (b) Operating lease. The other variations in lease agreements are (c) Sale and lease back (d) Leveraged leasing and (e) Direct leasing. FINANCIAL LEASE Long-term, non-cancellable lease contracts are known as financial leases. The essential point of financial lease agreement is that it contains a condition whereby the lessor agrees to transfer the title for the asset at the end of the lease period at a nominal cost.At lease it must give an option to the lessee to purchase the asset he has used at the expiry of the lease. Under this lease the lessor recovers 90% of the fair value of the asset as lease rentals and the lease period is 75% of the economic life of the asset. The lease agreement is irrevocable. Practically all the risks incidental to the asset ownership and all the benefits arising there from are transferred to the lessee who bears the cost of maintenance, insurance and repairs. Only title deeds remain with the lessor. Financial lea se is also known as ? apital lease‘. In India, financial leases are very popular with high-cost and high technology equipment OPERATING LEASE An operating lease stands in contrast to the financial lease in almost all aspects. This lease agreement gives to the lessee only a limited right to use the asset. The lessor is responsible for the upkeep and maintenance of the asset. The lessee is not given any uplift to purchase the asset at the end of the lease period. Normally the lease is for a short period and even otherwise is revocable at a short notice.Mines, Computers hardware, trucks and automobiles are found suitable for operating lease because the rate of obsolescence is very high in this kind of assets. Differentiation  Between  Operating  lease  and  Financial  Lease BASIS| FINANCIAL| OPERATING| Meaning| Long-term, non-cancellable lease contracts are known as financial Leases. | A Lease which is a short term one and one which does not cover the useful life on a n asset is called an operating lease. Form| In this type of lease, money is provideby lessor and the asset is purchaseform outside| The lessor is carrying on business of leasing and he holds such assets or is a manufacturer of such asset leases its asset| Maintenance| The lessee undertakes the maintenanceof the asset, paying insurance premiumetc. | In this type of lease, repairs and Maintenance is done by the lessor. | Risk ofObsolescence| In this types of lease, the lessee bearsthe risk obsolescence, so far as heUses the asset. In this types of lease, the lessor Bears the risk obsolescence during the period of the lease| Period of Lease| Period of lease – whole useful life ofAsset. | Period of lease – for short time. | Option to Buy| Option to buy for lessee. | Period of lease – for shot time| Accounting| EntriesAccording to the internationalaccounting standard-17, an entry is made in the balance sheet of the lessee on both the side| No entry is made in the bal ance sheet ofthe lessee under this type of lease,because lease is in the form of a hiredasset| 3. Sale and Lease back: It is a sub-part of finance lease.Under this, the owner of an asset sells the asset to a party (the buyer), who in turn leases back the same asset to the owner in consideration of lease rentals. However, under this arrangement, the assets are not physically exchanged but it all happens in records only. This is nothing but a paper transaction. Sale and lease back transaction is suitable for those assets, which are not subjected depreciation but appreciation, say land. The advantage of this method is that the lessee can satisfy himself completely regarding the quality of the asset and after possession of the asset convert the sale into a lease arrangement.The sale and lease back transaction can be expressed with the help of the following figure. ? The owner (Lessee) of the equipment sells it to a Leasing company (Lessor). ? The Lessor, leases the equipment back to the Lessee. ? Under this arrangement, the assets are not physically exchanged but it all happens in records only. ? The seller assumes the role of a lessee and the buyer assumes the role of a lessor. ? The seller gets the agreed selling price and the buyer gets the lease rentals. Two sets of cash flows occur: The lessee receives cash today from the sale. ? The lessee agrees to make periodic lease payments, thereby retaining the use of the asset. 4. Leveraged Lease: Under leveraged leasing arrangement, a third party is involved beside lessor and lessee. The lessor borrows a part of the purchase cost (say 80%) of the asset from the third party i. e. , lender and the asset so purchased is held as security against the loan. The lender is paid off from the lease rentals directly by the lessee and the surplus after meeting the claims of the lender goes to the lessor.The lessor, the owner of the asset is entitled to depreciation allowance associated with the asset. ? 3 parties to the transact ion. ? Lessor ( Equity investo ? Lender ? Lessee ? The Leasing company (Equity investor) ? buys the equipment, through substantial borrowing, and ? with full recourse to the Lessee and without recourse to it. ? The Lender obtains an assignment of the Lease and a first mortgage of the equipment. 5. Direct Lease ? Under direct leasing, a firm acquires the right to use an asset from the manufacturer directly. The ownership of the asset leased out remains with the manufacturer itself. ? Bipartite Lease – Equipment supplier-cum-Lessor and Lessee. ? Tripartite Lease (Sales-aid-Lease) – Equipment supplier, Lessor and Lessee. Single Investor Lease †¢Only two parties – Lessor and Lessee. †¢Leasing company (Lessor) funds the entire investment, having appropriate mix of Equity-cum-Debt Finance raised by the Lessor, is without recourse to the Lessee Risk Assessment of a Lessee The first step in structuring a lease is for the lessor to evaluate and then quantify th e risk inherent in the lease.Risk results from the degree of credit worthiness of the lessee combined with the collateral and residual value of the equipment to be leased. In general if the lessor deems a lease risky, any of the following variables might be affected: 1. Lease yield increased with all other factors except payment amount remaining constant 2. Additional advance payments required. 3. Security deposit required or increased. 4. Guaranteed residual required in lieu of a purchase option. 5. Lease term shortened. 6. Personal guarantee required. 7. Additional collateral beyond the leased equipment. . Increased late fees for delinquent rental payments (5% if 10 days late plus18% interest for e. g. ) 9. Security interest obtained to facilitate repossession 10. All insurable risk insured. Assignment of the risk inherent in a lease transaction is primarily a credit Worthiness decision. Many lessors as well as bankers or other moneylenders base their evaluation of risk on the 10 C’s. They are: ? Character ? Capacity ? Capital ? Credit ? Conditions ? Competition ? Collateral ? Cross-border ? Complexity ? Currency Lessor RequirementsOnce the lessor has assessed the risk and credit worthiness of the lessee and converted that into structuring variables, the lessor must look to its remaining needs and then to the requirements of the lessee. Meeting the sometimes conflicting needs of the lessor and lessee represents the more difficult part of lease structuring. Sometimes a lessor will insist on structuring an operating lease in order to retain tax benefits while at the same time the lessee desires a capital lease so it too may avail itself of the depreciation and tax benefits.Typical lessor requirements that might be at variance with lessee needs in lease structuring are: ? A yield sufficient to meet the lessor’s after-tax weighted cost of capital ? accounting for the lease on the lessor’s books as a capital lease. ? Tax structure of the agre ement as an operating lease to obtain tax benefits. ? a net lease rather than a full service lease ? Residual dependence- the lessor may want the equipment purchased by the lessee to avoid resale problems. On the other hand the lessor may want the equipment returned at the end of the lease due to its increased value.Advantages of ‘LEASING’ to ‘LESSEE’ There are several extolled advantages of acquiring capital assets on lease: (1) Saving of capital: Leasing covers the full cost of the equipment used in the business by providing 100% finance. The lessee is not to provide or pay any margin money as there is no down payment. In this way the saving in capital or financial resources can be used for other productive purposes e. g. purchase of inventories. (2) Flexibility and Convenience: The lease agreement can be tailor- made in respect of lease period and lease rentals according to the convenience and requirements of all lessees. 3) Planning Cash Flows: Leasing enables the lessee to plan its cash flows properly. The rentals can be paid out of the cash coming into the business from the use of the same assets. (4) Improvement In Liquidity: Leasing enables the lessee to improve their liquidity position by adopting the sale and lease back technique. (5) Shifting of Risk of Obsolescence: The lessee can shift the risk upon lessor by acquiring the use of asset rather than buying the asset. (6) Maintenance and Specialized Services: In case of special kind of lease arrangement, Lessee can avail specialized services of lessor for maintenance of asset leased.Although lessor charges higher rentals for providing such services, lessee’s overall administrative and service costs are reduced because of specialized services of the lessor. (7)Off-The-Balance-Sheet-Financing: Leasing provides â€Å"off balance sheet† financing for the lessee, in that the lease is recorded neither as an asset nor as a liability. Disadvantages of ‘LEASINGâ⠂¬â„¢ to ‘LESSEE’ (1) Higher Cost: The lease rental include a margin for the lessor as also the cost of risk of obsolescence, it is, thus regarded as a form of financing at higher cost. 2) Risk of being deprived the use of asset in case the leasing company winds up. (3) No Alteration In Asset: Lessee cannot make changes in asset as per his requirement. (4) Penalties On Termination Of Lease: The lessee has to pay penalties in case he has to terminate the lease before expiry o lease period. Advantages of ‘LEASING’ to ‘LESSOR’ (1) Higher profits: The lessor can get higher profits by leasing the asset. (2) Tax Benefits: The lessor being owner of asset can claim various tax benefits such as Depreciation. 3) Quick Returns: By leasing the asset, the Lessor can get quick returns than investing in other projects of long gestation period. Disadvantages of ‘LEASING’ to ‘LESSOR’ (1) High Risk of Obsolescence: The lessor has to bea r the risk of obsolescence as there are rapid technology changes. (2) Price Level Changes: In case of inflation, the prices of asset rises but the lease rentals remain fixed. (3) Long term Investment: Leasing requires the long term investment in purchase of an asset, and takes long Time to cover the cost of that assetHire purchase financing Hire purchase is a popular financing mechanism especially in certain sectors of Indian business such as he automobile sector. In hire purchase financing, there are three parties: the manufacturer, the hiree and the hirer. The hiree may be a manufacturer or a finance company. The manufacturer sells asset to the hiree who sells it to the hirer in exchange for the payment to be made over a specified period of time. A hire purchase agreement between the hirer and the hiree involves the following Three conditions: ?The owner of the asset (the hiree or the manufacturer) gives the Possession of the asset to the hirer with an understanding that the hirer will pay the agreed installments over a specified period of time. ? The ownership of the asset will transfer to the hirer on the payment of all installments. ? The hirer will have the option of terminating the agreement any time before the transfer of ownership of the asset. Thus for the hirer the hire purchase agreement is like a cancelable lease with a right to buy the asset.The hirer is required to show the hired asset on his balance sheet and is entitled to claim depreciation, although he does not own the asset until full payment has been made. The payment made by the hirer is divided into two parts: interest charges and repayment of principal. The hirer thus gets tax relief on interest paid and not the entire payment. How does hire purchase work? When a customer buys goods on hire purchase there are three parties involved ? The customer – who buys the goods ?The retailer – who sells the goods The finance company – who provides the finance You make the init ial agreement with the customer. Once the security agreement has been signed you are likely to assign the agreement (including your security interest in the goods) to the finance company. The customer makes payments to the finance company. Whether the security interest will revert back to you will depend on the terms and conditions of your agreement with the finance company. The normal tripartite hire purchase process between the dealer, customer and the finance company is as follows: ?When the business connection between the finance company and the dealer is first established a master agreement may be drawn up regulating the conditions upon which the finance company is prepared to consider the hire purchase transactions submitted by the dealer. ?After the customer has selected the goods he desires to acquire on hire purchase, the dealer arranges for him to complete the schedule to a form of hire purchase agreement. The larger finance companies have theirown standard forms of printe d agreement. In the schedule to the hire purchase agreement the dealer will insert the hirer’s name, address, occupation, and certain other details indicating his financial standing. It is also the dealer’ responsibility to insert details about the price and the installments payable. ? The intending hirer is often required to make a down payment as an indication of the customer’s financial reliability. The deposit or down payment is usually paid to the dealer at the time the proposal form is completed and is normally retained by him as a payment on account of the price to be paid to him by the finance company. The deposit having duly paid the dealer sends the appropriate set of documents to the finance company, requesting the company to purchase the designated goods from him. ?If the finance company decides to accept the transaction, the hire purchase agreement is signed by one of its officers and a copy dispatched to the hirer with instructions as to the mode o f the installments. At the same time as a copy is sent to the hirer, the finance company notifies the dealer that the proposal has been accepted and that it is in order for the dealer to deliver the goods, if he has not already done so. Upon notification of acceptance the dealer delivers the goods to thehirer and obtains the hirer’s signature to a form of delivery receipt constituting an acknowledgement by the hirer that he has received the goods in proper condition. ?The hirer makes payment of hire installment throughout the period of hire ? On completion of the hire term, the finance company issues to the dealer a completion certificate whereupon the hirer becomes the owner of the asset. Key features of Hire Purchase: ? Repayment schedules are flexible. An Offer to Hire can be arranged with no deposit or an amount that suits you. ? Balloon payments at the end of the term can be arranged. ? Esanda owns the goods until the final payment is made, at which point you gain automa tic ownership. ? the interest component of the rental and depreciation on the equipment are tax deductible, provided it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. DIFFERENE BETWEEN Hire  purchase AND Lease  financing Hire  purchase| Lease  financing| 1. Depreciation-  Ã‚  Ã‚  Hirer  Ã‚  Ã‚  is  Ã‚  Ã‚  entitled  Ã‚  Ã‚  toclaim  depreciation. 1. Depreciation-  lessee  is  not  entitledto  claim  depreciation. | 2. Payments-  Ã‚  hirer  Ã‚  can  Ã‚  charge  Ã‚  onlyinterest  Ã‚  Ã‚  Ã‚  Ã‚  portion  Ã‚  Ã‚  Ã‚  Ã‚  of  Ã‚  Ã‚  Ã‚  Ã‚  hire  Ã‚  Ã‚  Ã‚  Ã‚  purchasepayments  Ã‚  Ã‚  Ã‚  Ã‚  as  Ã‚  Ã‚  Ã‚  Ã‚  expenses  Ã‚  Ã‚  Ã‚  Ã‚  for  Ã‚  Ã‚  Ã‚  Ã‚  taxcomputation. | 2. Payments-  Ã‚  lessee  Ã‚  can  Ã‚  charge  Ã‚  theentire  lease  payments  as  expenses  fortax  computation. | 3. Salvage  Ã‚  value-  Ã‚  Once  Ã‚  the  Ã‚  hirer  Ã‚  haspaid  Ã‚  all  Ã‚  installments;  Ã‚  he  Ã‚  becomes  Ã‚  theowner  Ã‚  of  Ã‚  the  Ã‚  asset  Ã‚  and  Ã‚  can  Ã‚  claim  Ã‚  itssalvage  value. | 3. Salvage  Ã‚  value-  Ã‚  Lessee  Ã‚  does  Ã‚  notbecome  Ã‚  Ã‚  Ã‚  the  Ã‚  Ã‚  Ã‚  owner  Ã‚  Ã‚  Ã‚  of  Ã‚  Ã‚  Ã‚  the asset. Therefore  Ã‚  he  Ã‚  has  Ã‚  no  Ã‚  claim  Ã‚  over  Ã‚  theasset’s  salvage  value. Principle of hire purchase 1. Consumer installment credit The ground for distinction here is whether the goods are producer goods or consumer goods. Finance provided to consumers for acquisition of consumer durables is called installment credit. Installment credit for consumers is usually extended in one of the following forms: (a) Personal loan: this is made directly by the lending a dealer may introduce company through the consumer. The loan may be unsecured or secured. E. g. by a mortgage on the borrower’s property. b) Hire purchase or conditional sale: here funds are advanced for the acquisition of particular goods, which the customer take under a hire-purchase or conditional sale agreement, acquiring title on completion of payment. Where title is reserved in this way the agreement usually used is a hire purchase agreement, though some companies use conditional sale agreements. Retail hire purchase agreements take three different forms namely ? Direct collection- the dealer sells the goods to the finance house, which lets them out on hire purchase to the customer.This is the most common form of installment financing and is known in the trade as ‘direct collection’ because the installments are collected under a hire-purchase agreement concluded direct between the finance house and the hirer, as opposed to an agreement between the dealer and the hirer which is later discounted under block-discounting agreement. Usually the finance house collects the installments itself from the hirer, and the dealer d rops out of the transaction. Such transactions are called ‘non-recourse’ for the dealer. ? Agency collection: this is a variant of direct collection.As before the dealer sells goods to the finance company but in this case signs the agreement himself as undisclosed agent for the finance company and as such agent collects installments on behalf of the company, usually in return for appropriate commission. Because the agreements are in practice handled in blocks, this form of hire purchase is also misleadingly referred to as agency block discounting, though it is not a form of block discounting at all since there is no assignment of the agreement by the dealer to the finance company and the dealer is acting merely as an agent. Block discounting: in this case the dealer enters into the hire purchase agreement direct with the customer and later discounts it to the finance company. Agreements are usually discounted in blocks at a time; hence it is called block discounting. On ce the agreement is discounted the finance company becomes entitled to receive rentals from the hirer concerned but quite commonly, in order not to disturb the business relationship existing between the dealer and his customer, the dealer is made responsible for collecting the installments and remitting these to the finance company. c) Credit sale: here the title passes to the customer from the outset. Again the agreement may be with the finance house from the beginning or it may be entered into between the dealer and customer direct and later assigned by the dealer to the finance house. (d) Rental: the renting of domestic goods is fast developing as a form of installment credit. It is increasingly the practice and to a very larger extent in the U. S. , of finance houses to enter direct into rental agreements relating to domestic goods. DOCCUMENTS IN HIRE PURCHASEAll the parties must sign a hire purchase agreement and the agreement, among other things, must specify the date when the hiring commences, the number of installments, the amount of each installment, the time for the payment of each installment, the description of the goods and where the goods are kept. Note that the agreement must be in writing. An oral agreement is not a valid hire purchase agreement. Benefits of Hire Purchase ? Retention of cash flow ? Regular Payments ? Existing credit lines preserved ? Cost of acquisition spread overtime ? Repayment schedules can be structured to suit your cash flow. You can obtain the use of goods for minimal cash outlay, so working capital is not significantly affected. ? You may be able to make use of the taxation benefits of hiring. The Hire Purchase Agreement When you buy goods on hire purchase, you and the seller sign a written agreement. ? How many agreements will be made ? How often to pay ? The amount to pay ? When to pay ? Where to pay ? The name and address of the seller Other information in the hire purchase agreement ? What happens if payment is not made as agreed ? The right to repossess goods if one fails to make payments on time ?One’s obligation to keep the goods safe and in good order ? How to return the goods if one cannot pay. This information may be in the fine print on the back of the agreement. If any of this information is missing from the agreement one may not be liable for some of the cost of credit. The agreement cannot be enforced until the required information has been supplied. Lease Financing in Bangladesh: Bangladesh is a developing country, but the national calamity and political unrest sluggish the industrial growth as well as economic growth of the country.In spites of all these hindrance the growth of leasing companies is a significant indication of our bright prospects. Lease financing was first introduced in Bangladesh in the early 1980s. Industrial Development Leasing Company of Bangladesh Ltd. (IDLC), the first leasing company of the country, was established in 1986 under the regulatory framewo rk of BANGLADESH BANK. It was a joint venture of the Industrial Promotion and Development Company of Bangladesh Ltd. (IPDC), International Finance Corporation, and Korea Development Leasing Corporation.Another leasing firm, the UNITED LEASING COMPANY Ltd. started its operations in 1989. The number of leasing companies grew quickly after 1994 and by the year 2000, rose to16. The leasing business became competitive with the increase in the number of companies and wider distribution of their market share. There are, however, 6 other companies conducting leasing business in the country, although they do not use the word leasing in their names. In terms of money value, the leasing business in Bangladesh increased from Tk 41. 44 million in 1988 to Tk 3. 6 billion in 2000. The leasing companies now operating in the country are Industrial Development Leasing Company of Bangladesh, United Leasing Company, GSP Finance Company (Bangladesh), Uttara Finance and Investments, Bay Leasing and Inves tment, Phoenix Leasing Company, Prime Finance and Investment, International Leasing and Financial Services, Union Capital, Vanik Bangladesh, Peoples Leasing and Financial Services, Bangladesh Industrial Finance Company, UAE-Bangladesh Investment Company, Bangladesh Finance and Investment Company, and First Lease International.Lease financing, as organized in Bangladesh, operates with the following objectives: (a) to assist the development and promotion of productive enterprise by providing equipment lease financing and related services; (b) to assist in balancing, modernization, replacement and expansion of existing enterprises; (c) to extend financial support to small and medium scale enterprises; (d) to provide finance for various agriculture equipment; and (e) To activate the capital market byOperating as managers to the issue, underwriters, or portfolio managers. The functions of a lease business include lease financing, short-term financing, house building financing, and mercha nt banking and corporate financing. In this last group of functions, the leasing business in Bangladesh moved away from regular leasing activities and is now involved in stock-market related activities such as issue management, underwriting, trust management, private placement, portfolio management, and mutual fund operation.Broad capital market operations of the lease financing institutions include bridge financing, corporate counseling, mergers and acquisition, capital restructuring, financial engineering, and lease syndication. Prominent among the sectors of the economy that now receive lease financing services are textiles, apparels and accessories, transport, construction and engineering, paper and printing, pharmaceuticals, food and beverage, chemicals, agro-based industries, telecommunications, and leather and leather products.Commercial banks and development finance institutions (DFIs) have been the traditional lending institutions in Bangladesh. In fact, the concept of leas e financing is a relatively new one in the country. Initially, leasing companies had to adopt the role of educators to make Bangladeshi entrepreneurs aware of the benefits of leasing. However, as DFIs demonstrated poor recovery and fund recycling performances, leasing got the opportunity to develop as an alternative source of funding.A few other factors also contributed to development of the leasing business in the country. For example, the commercial banks have been keener in providing trade financing and FOREIGN EXCHANGE dealings rather than long-term loans because of the risks involved and their longer gestation period. The selection of lease proposals is relatively free from extraneous pressure and is subject to a quality level appraisal. Under lease agreements in the private sector, projects are sanctioned and implemented expeditiously, resulting in benefits in time and cost savings.Private leasing companies also attract clients by providing relatively better services. The down payments in leasing are not high and the gestation period is low. Also, in case of lease financing, incidental costs incurred in the process of import clearing, installation, and commercial production are capitalized, which substantially reduce the initial investment. Leasing companies, however, face some problems in conducting their business in the country. The relatively slow growth of the demand side compared to the fast growth of the lease business is one such problem.This leads many leasing companies to operate in partial capacity. The culture of loan default that prevails in the country is also a deterrent. Leasing companies often find it difficult to raise funds through short- or long-term borrowing from money and capital markets. They are hard pressed to deal with the financial assets because of the present laws of the country, which are also not fully enforceable. Leasing business is gaining increased importance in the economy of Bangladesh with its gradual transformation from an agrarian to industrial one.The government periodically revises the trade and industrial policy to create a liberal business environment both for domestic and foreign investment. Increased investment in the energy sector as well as in power, transport, telecommunications, water and sanitation, and safe disposal of wastes is expected to bring further opportunities for leasing industries. The traditional sources of funds of our country in the financial market are – the Commercial Banks, DFIs and the stock exchange. But these sources are not enough to effectively meet the growing demand of capital investments for industrialization of the country.And the backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. At present there are 11 leasing companies operating there business. The name of the leasing companies: 1. Industrial Development Leasing Company of Bangladesh Ltd. IDLC 2. United Leasing Company 3. Uttara Finance & Investment company Ltd. 4. Phonenix Leasing Company Ltd 5. Bay leasing & Investment Ltd. 6. International Leasing & Finance Company Ltd. 7. GSP Finance company (BD) Ltd. 8. Prime Finance & Investment Ltd. 9. Vonike 0. Prime Bank Ltd. COMPANIES AT A GLANCE IDLC: Industrial Development Leasing Company of Bangladesh limited is established in 1985 as a joint venture public Limited Company with the multinational collaboration of International Development Finance Institution ,Commercial Banks, Insurance Company and Foreign Leasing Corporation. During the past fourteen years of its operation, IDLC has played a catalytic role in providing alternative source of term and capital asset financing to the private sector.IDLC’s primary focus has been in the area of 3-5 year term financial leasing with particular emphasis on balancing, modernization, replacement and expansion (BMRE) of existing units. With its pioneering vision IDLC has not only established lease financing as an ef ficient and quality financial service but also laid the foundation for the creation of ten other leasing companies. Today lease financing has grown to be an industry of Taka 3. 5 billion per annum.IDLC and its institutional shareholders have upheld their commitment towards the development of the financial service sector by offering high quality service to local entrepreneurs. To ensure steady and long term growth as well as to sharpen its competitive edge in a changing and challenging business environment. Short-term Finance which have broadened its customer base and are expected to contribute significantly to IDLC’s growth and profitability. IDLC established its first branch office in Chittagong in 1990. In January 1993, the company offered its shares to the public.In terms of market capitalization, it is ranked among the top 20 listed companies in both Dhaka and Chittagong Stock Exchange. Services offered by IDLC: Lease Financing: IDLC provides lease financing for all types of manufacturing and service equipment including vehicle, computer and medical equipment to all the major industrial and service sector. Short Term Finance: With an objective to provide solution to working capital problems, STF Unit provides different financial services to clients.Emphasis is given to identifying clients’ actual need and in providing customized service to cater them. House Financing: IDLC extends loan facilities to Individuals for purchase of apartments, Business houses professionals for purchase of commercial spaces (office space chamber display center etc. ) Bangladesh Finance and Investment Company Limited (BFICL): A non-banking finance company incorporated in Bangladesh on 10 May 1999 as a public limited company. It began business on 15 February 2000. It’s authorized and paid up capital are Tk 500 million and Tk 23 million respectively.The capital is divided into ordinary shares of Tk 100 each. Major business objectives of the company are carrying out direct trade, term and working capital financing, equity participation, housing finance, fund management,financial and industrial counseling and merchant banking activities of all types. Main sectors in which the company has targeted to lease and invest are transport, electric and electronic goods (including computers), leather, textile, printing, marine vehicles and equipment, steel and engineering, fishing boats and trawlers, medical equipment and small scale industries.BFICL purchases property in its own name and pays 60% to 70% of the total price of a particular property to its supplier. After accumulating and adding all other elevant/ incidental costs with the original purchase price such as transportation, insurance premium, and costs related to letter of credit, and the rent or profit/income margin, the company determines the lease price of the property. Then it signs lease contracts with the lessee, generally for two to four years, and hands over the properties to him f or use.The lease contracts require security or collateral from the lessee in various forms. Lease installments, payable generally on a monthly basis, are determined on the basis of the lease price of properties and other relevant factors. Lease contracts are renewed each year. On the expiry of the lease periods/contracts, the lessee can gain the ownership of the leased property/equipment upon payment of 5% of the transfer value of the equipment as salvage value of the property. Alternatively, the ownership and physical possession of the property goes back to the lessor.BFICL provides lease facilities against one or more of the following securities: (a) bank guarantee/insurance guarantee; (b) easily AM-HIFC Ahsania-Malyasia Hajj Investment and Finance Company Limited (AM-HIFC) is a Sharia-based non-bank financial institution licenced by Bangladesh Bank under the Financial Institution Act 1993. The company follows the model of Malaysia`s pilgrims fund and management institution, popul arly known as â€Å"Tabung Hajj† which focuses on mobilizing savings from would-be pilgrims who intend to perform Hajj in the Holy Land.It invests its excess fund in Sharia-based activities. As a Sharia-based financial institution, adherence to Sharia is of paramount importance to us and this is embodied in out Vision and Mission statement. Bangladesh Industrial Finance Company Bangladesh Industrial Finance Company Limited (BIFC) is a joint venture Leasing and Financing Company, promoted by a group of' Foreign and Local Sponsors. Incorporated as a Public Limited Company in August 1996 and icensed by Bangladesh Bank as a Non-Bank Financial Institution in February 1998, BIFC has been rendering innovative, customized, prompt and cost effective financial solutions to the socio-economic growth of the country. Delta Brac Housing Finance Delta Brac Housing Finance Corporation Ltd. (DBH) is the pioneer, the largest and the specialist Housing Finance Institution in the private sector of the country. After commencing operation in the early 1997, the company has registered commendable growth in creating home ownership among more than 7,500 families in Dhaka and other major cities of the country.At the same time, the company has been playing an active role in promoting the real estate sector to the large cross sections of prospective clients who had but yet unfulfilled dream of owning a sweet home. Fareast Finance ; Investment Limited Fareast Finance ; Investment Limited-a leasing and financing company started its business in the early 2002 to serve its clients with high ethical standards and accountability. Fareast believes that each of its activities must provide satisfaction to its customers and will start progress for them.Financial Management Reform Programme FMRP is a five-year programme jointly financed by the UK Department for International Development (DFID) and the Royal Netherlands Embassy (RNE), and executed by the Ministry of Finance, Government of Ban gladesh. Grameen Bank Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity.GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of Grameen Bank and its Managing Director, reasoned that if financial resources an be made available to the poor people on terms and conditions that are appropriate and reasonable, these millions of small people with their millions of small pursuits can add up to create the biggest development wonder. GSP Finance Company GSP Finance Company (Bangladesh) Limited (GSPB) was incorporated in Dhaka , Bangladesh on 29th October 1995 with the Registrar of Joint Stock Companies and Firms. It started its commercial operation from 17th April 1996 under licence granted by Bangladesh Bank (Central Bank) in accordance with the Financial Institutions Act of 1993. IDCOLInfrastructure Development Company Limited – IDCOL's mission is to promote economic development in Bangladesh by encouraging private sector investment in infrastructure projects. IDLC of Bangladesh Ltd IDLC is a multiproduct financial institution, established in 1985 with the collaboration of reputed international development agencies such as: Korean Development Leasing Corporation (KDLC), South Korea, Kookmin Bank, South Korea, International Finance Corporation (IFC) of the World Bank Group, Aga Khan Fund for Economic Development (AKFED), German Investment and Development Company (DEG).Leasing, initiated by IDLC, today, plays a vital role in the mid term financing of industrial and service enterprises. Over the ye ars, IDLC has served the diverse needs of its customers with product offerings ranging from Home Loans for Individuals to Factoring and Work Order Financing for small and medium enterprises (SMEs) and services such as: Lease Financing, Syndication, Corporate Advisory, Bridge Financing, Underwriting, Issue Management, Private Placement of Stocks and Debt Instruments for Corporate Customers. IIDFCIndustrial and Infrastructure Development Finance Company (IIDFC) Limited is a Development Financial Institution, promoted by wide array of financial institutions like ten commercial banks, from both the public and private sectors, three insurance companies and Investment Corporation of Bangladesh (ICB). Union Capital Limited UNION CAPITAL LIMITED is one of the largest investment banks and fastest growing financial institutions in Bangladesh. Previously, it was known as Peregrine Bangladesh which had its origins and businesses rooted in Hong Kong.Out of the local office of the erstwhile Pereg rine Capital Limited of Hong Kong, Union Capital Limited, Dhaka emerged in early 1998 as a Bangladesh-based company led by a group of the foremost entrepreneurs of the country. Union Capital, within a short span of time, has proved its worth as a most forward-working vigorous organization achieving success with its wide international network and strong local base Leasing Law in Bangladesh Leasing is an asset renting activity, and is therefore, governed by common law. The Contracts Act 1872 applies to contracts of leases.Sections 148 to 171 of the Contracts Act cover provisions relating to bailment. As these provisions are identical to those applicable under English law, the chapter devoted to general law of leasing adequately covers the law in Bangladesh as well. It may be noted that the general law of contracts is limited to bailments of â€Å"goods†. â€Å"Goods† include movable property only – immovable property is not covered by common law. As it the common feature of all Anglo-Saxon legal systems, transactions in immovable properties are covered by a separate system of laws.Taxation of Leases in Bangladesh: The taxation system in Bangladesh has been a subject matter of criticism over a last few years. The system is characterized by a large number of incentives, tax holidays and concessions as a result of which the share of corporate taxation to total tax collection by the Govt. has come down drastically over the past few years. Taxes on corporate profits, of both domestically and foreign owned companies amounts insignificant as a 0. 5% of GDP in Bangladesh, compared with more than 6% in developed nations. The main reason cited for this low contribution is the tax incentives granted by the Govt. Which are very liberal as compared to its counterpart countries. It is probably with tax reform in view that the Govt carried out certain reforms in depreciation laws in Budget 1998-99. Among other provisions, the important change that would ha ve a far reaching effect on leasing companies is the change in

Example of Concert Essay

This was a paper written by an actual student in the Popular Music in America class. It is not offered as an award-winning review nor is it compositionally error-free. It did, however, receive an A for this assignment and is an example of the level of writing and analysis that is required to receive an A. Please do not, however, begin your paper in exactly the same way or attempt to copy â€Å"buzz words† or phrases. Write your own paper! On February 17, 2005, the Jazz Ensemble at Tarleton State University had their first concert of the spring semester with special guest trumpeter, Daryl White. The jazz ensembles collectively performed thirteen pieces during the concert. â€Å"Fly Me to the Moon†, â€Å"Waltz for Debby† and â€Å"Ancient Memories† were three stylistically different pieces that allowed the audience to experience the various sounds of jazz music. Jazz music, like all music, tells a story and here are the stories of â€Å"Fly Me to the Moon†, â€Å"Waltz for Debby† and â€Å"Ancient Memories†. â€Å"Fly Me to the Moon†, written by Bart Howard and arranged by Sammy Nestico, is an upbeat standard sung most famously by Frank Sinatra. In the instrumental version of this song, a Latin-inspired sounding consonance set the romantic mood at the beginning of this song. A piano and saxophone then alternated the melody of the song as though they were dancing like two lovers flying to the moon. As the passion of the song heated up, the texture changed within the song as the saxophone took the melody and the piano and other instruments within the ensemble were in accompaniment. The rhythm, which was continuously steady seemed to get faster like a heart beat by the climax of the song. It was also at this point that the dynamics of the song were increasingly getting louder until all instruments met at the top with a bang and then changed the dynamics again to a moderate level until the song concluded.

Knowledge is an example of a public good. Analyse this statement, Essay

Knowledge is an example of a public good. Analyse this statement, drawing on further research to inform your argument - Essay Example These include non-rivalry and non-excludability. Suber (2009) describes that knowledge is non-rivalrous in the sense that its sharing among several people does not deplete its stock. This characteristic of knowledge is shared by other public goods such as air and sunshine. The second feature of knowledge is non-excludabilty. Once knowledge has been created, it is extremely difficult or impossible to limit people from accessing it as long as they have the resources and mental capacity to access it. At the same time, Suber (2009) also distinguishes between knowledge and its forms of expression. According to his argument, knowledge is a public good while its expression in the form of books and journal articles is not. Anderson (2006) argues that knowledge should be considered primarily as a â€Å"public good† while its position as a private asset should be secondary. This reflects the diverse opinions that regard knowledge as an economic asset as well as a social good. Anderson ( 2006) describes four different views of knowledge along a continuum of private and public good. He describes that in the United Kingdom, knowledge is first regarded as a private asset and then as a public good. He argues that the perception should be reversed and British society should view knowledge first as a public good and then as a private asset. ... Haskel (n.a.) discusses the importance of knowledge as a public good from a European perspective. He argues that in making knowledge a public good, states should not seek to act monopolistically themselves. While the state should check inefficiencies such as under-provision of knowledge, it should not seek to subsidize knowledge that is not being withheld by such barriers. At the same time, the state should avoid creating inefficiencies that might be created if it retains sole control over the dissemination of knowledge. Competition and the private sector should be given space to operate as long as inefficiencies are not created. Haskel (n.a.) also argues that public sector involvement in knowledge creation encourage the private sector rather than discouraging it. The tax credits awarded to companies investing in R&D can be allocated more efficiently if investment in areas such as design, marketing, and training are also considered. Stiglitz (1999) views knowledge not only as a publi c good, but as a global public good that should be accessible to all people who can benefit from it. Particularly, in the domain of science and technology, the knowledge is less likely to be geographically-dependent; hence, it has global applications and should be available globally. Stiglitz (1999) discusses some of the constraints that limit the global accessibility of knowledge. Recognizing corporate interests in protecting essential knowledge such as product formulations or technology design, Stiglitz (1999) proposes that the state can invest in research so that economic efficiencies can be achieved. Stiglitz (1999) criticizes the use of patents and other means of enabling firms to recoup their research and development costs. These act as taxes for the consumer and create economic

Comparitive Report Research Proposal Example | Topics and Well Written Essays - 1000 words

Comparitive Report - Research Proposal Example As human beings are evolving into a very technologically advanced being, the fields of Engineering are getting more and more specialized. The most popular choice however remains the fields of Electrical and Mechanical engineering. The students who wish to pursue their career in either of these fields however, remain confused as to which fields to choose solely because they do not have the required knowledge to make such an important decision. As a result, many students end up taking the wrong decision and by the time they realize it, it is too late and their future becomes dark. In this report, this question has been discussed at length. A through research has been undertaken to find out just what exactly the two fields require from a person, and crucially, how the two differ in terms of coursework and future career opportunities. This section covers the two fields from three different perspectives. Firstly how these two fields differ and what they focus on will be discussed. Then in terms of education and knowledge required of the field will be discussed. Lastly both fields will be analyzed to find the future career opportunities. As the term suggests, the mechanical engineering program focuses highly in mechanics and motion of objects. It applies the principles of Physics in a very constructive way to bring about new equipment and technology to help make our lives easier. (Johnson & Sherwi, 1996) Mechanical Engineering involves the analysis of design, manufacture, and the maintenance of all types of mechanical systems. These can be automobiles, aircraft, and miscellaneous systems, manufacturing plants, industrial equipment and machinery. (Johnson & Sherwi, 1996) Being such a wide and very broad field, a student is required to study all sorts of courses relating to all types of scientific phenomenon. The general courses that students have to take up are the following: (Johnson & Sherwi, 1996) The courses specified above mean that the student will be

Qualititive method, focus group Research Paper Example | Topics and Well Written Essays - 1500 words

Qualititive method, focus group - Research Paper Example And help researchers of any field or company to get an insight of human attitudes (Kitzinger, 1995). Researchers have found that the investigation made in this method, is unique from other research methods, as the question asked are not technical but conceptual. This allows an individual to put forward one’s concept and contribute equally in the research (Devers, 1999, p.1155-1156). The focus group research method is one of the types of the qualitative method which has gained significant popularity in the new businesses, helping them collect data about their company’s standards and internal issues more effectively (Gibbs, 1997, p.5-7). A simple definition of a focus group method given by David L. Morgan (1996) states that the focus group tends to look into the concepts and believes, forming human attitudes and norms (Morgan, Focus Groups, 1996, p .129). Unlike, the brainstorming method of researching, where everyone just raise their point, the focus group centers around one main topic and encourages people to give their responses on that topic. The group of people is chosen such that they do not differ from each other much, in their status, class or education, so they can be open in sharing their knowledge and experiences (Packer, Race, & Hotch, 1994, p.1-3). The focus group method has benefited largely in the field of academic literature, making easier for researchers and writers to get an insight of one’s life. Often a simple questionnaire is design to give an idea about the objective of the research to the participants. And to dilute a complicated topic, to make the participants comprehend and respond easily (Gibbs, 1997, p.5-7). Initially, this method was used in the field of social sciences, as a tool to define human attitudes and psyche, but by the passage of time it earned vast acceptance in the field of medical research. The reason lies in the flexibility of the method, in dealing with any kind of issue equally well

Machine guns Essay Example | Topics and Well Written Essays - 1000 words

Machine guns - Essay Example . automatically more than one shot, without manual reloading, by a single function of the trigger† (National). This is one example where laws confuse us more than help. The machine gun has had a checkered history; it was invented in the mid nineteenth century by Dr. Richard Jordon Gatling, and was known as the Gatling gun. He patented his invention in 1861. The Gatling gun was the first rapid firing gun which can precisely be referred to as the ancestor of modern machine gun. Dr Gatling said â€Å"it occurred to me that if I could invent a machine-a gun- which could by its rapidity of fire enable, one man to do as much battle duty as a hundred that it would to a large extent supersede the necessity of large armies and consequently, exposure to battle and disease would be greatly decreased (Richard par 4).† This was followed in 1885 by a Maxim gun which was the first machine gun that was self powered, in that it used the recoil energy of the previous bullet to load and fire the next bullet. The modern machine gun is a development of the Maxim gun. All machine guns for firing use a basic mounting which is as follows People have been collecting guns all over the world for decades. It is similar to people like collecting swords. But now a new hobby has emerged of collecting machine guns in most countries of the world, owning a machine gun is illegal, but in the United States 34 states of the union, it is legal for citizens to own and shoot with machine guns. In case you wish to start a hobby as a machine gun collector then please do ensure that the state you reside allows you to own a machine gun. In some states such as Delaware, Hawaii, Iowa, Illinois, Kansas, New York, Rhode Island, South Carolina, Washington State and the district of Columbia, have a total ban on privately owned machine guns. However, despite the above quarters of million Americans own machine guns. The National Firearms Act 1934 is the nodal act that governs

Methods used to Analyze the Marketability of a Firm Essay

Methods used to Analyze the Marketability of a Firm - Essay Example Interviews, by mail and on-site, were conducted to determine the demographics and characteristics of the typical angler. Discovering the motives of paying anglers proved to be beneficial in the analysis (relationship). This analysis will assess needed requirements and how well they are suited to the company's capabilities. Organizations can use this data to choose ideas and products which match their technical support, leading to competitive advantages. This analysis will also help to determine whether in-house or external technical support is the most feasible. A number of methods can be used when conducting a technical analysis. Checklists, scoring tools, environmental scanning, and decision-making models (as used by the West Virginia Department of Forestry) are some of the most widely used methodologies. A company should not, however, make the technical analysis its main focus. The analysis may show the firm's marketability in a glowing light, but this opinion may not be equally shared by its customers. A case in point is RCA's introduction of their quadraphonic 8-track system in 1970. This product issued booming marketability for RCA; however, predictions for future technology were not illustrated on their then-technical analysis. Collection of market data on products and ideas are essential to determine marketability. ... This product issued booming marketability for RCA; however, predictions for future technology were not illustrated on their then-technical analysis. MARKETING ANALYSIS Collection of market data on products and ideas are essential to determine marketability. If a company isn't competent in marketing skills, it will not succeed. An example is the largely-populated country of China. They can offer numerous opportunities; however, it has been quite challenging for the Chinese to market their products in their own country. Marketing challenges must definitely be addressed. Each concept requires different marketing data and strategies. Very much like the technical analysis, checklists, scoring tools, and environmental scanning are effective tools. A decision-making resource, such as the Analytic Hierarchy Process (AHP) is also beneficial. Always keep in mind that a firm is never marketable without customers who are seeking your products or ideas. It's also crucial to analyze your target customer base and the demand and supply of your products. FINANCIAL ANALYSIS The primary goals of an organization are to produce a profit, increase sales and customers, and to show a return on their investment. To be marketable, a firm should set financial guidelines. To get an accurate financial analysis, much financial data is needed. Budget goals must be set and met. Benchmarks must also be laid down to agree with financial returns put in place. The most widely used financial analysis methodology is the Net Present Value method (NPV). This method associates the monetary benefits and expenditures against the products. The product's NPV is then weighed against the interest rates and the

Water, Agriculture and Irrigation Simulation for CROPS Statistics Project

Water, Agriculture and Irrigation Simulation for CROPS - Statistics Project Example Temperatures are at the highest in the month of July and August with temperatures reaching high as 40  Ã‚ °C. Temperatures are recorded the lowest in late January and early February with temperatures reaching less than 5 °C. ETO is highest in the month of June to July with records reaching up to 7mm. The month of December and January record the least ET0 at an average of 1mm a day. The ideal period to grow crops in Cordoba is from January after which they will take 4 months to be harvested. The major climatic constraints include high temperatures. Cordoba experiences high temperatures in the mid year. The increasing temperatures occur in the summer season after which most of the crops have already been harvested. Increasing Carbon dioxide in the atmosphere is also high from June to December and is increasing at an increasing rate. Carbon dioxide should not be directly proportional to the oxygen released to the atmosphere. Increase in carbon in the atmosphere lead to low productiv ity. Increased carbon dioxide in the atmosphere may have direct impact on agriculture productivity. This may also lead to extreme weather. A warmer climate could bring low rainfall which results to low water availability. The maize sown on 15th February yielded 2.726 with a biomass of 8.388 ton/ha with a potential biomass of 18.314 ton/ha both in ratio of 46% with a water productivity of 1.01kg yield per m3 evapotranspired. Canopy Cover (CC) of the maize sown in 15th February increased from 0 to 96% at the 15th day to 40th day and reduced from 85th day up to 111th day.

Issues in Contemporary media and cultural studies(Journal) Essay

Issues in Contemporary media and cultural studies(Journal) - Essay Example Hacking can be dated back to 1978 in the earlier days of Bell Telephone Companies, where earliest mischief’s of application of modern community were experienced. However, at the moment it was not known as hacking. This paper aptly examines the theoretical and contextual perspective of hacking. It also examines the comparison of various types of hacking and evaluation with their interpretations. It further examines the social and political hacking of media. Hacking comes with different and conflicting definitions. For the purpose of this paper, Hacking is defined to â€Å"unauthorized access to a computer network† (Kumar, 2012, P.1). Hacking can also be defined as the use of various software methodologies using programming experimentation to achieve intended ill gain. According to Kumar (2012), hacking can be stated as unauthorized intrusion; hence the act of gaining access to a computer network with an absence of legal authority. The person who performs the act is a hacker. However, it must be noted that not all hackers are bad (Kumar, 2012), since the government and some huge companies use hackers to maintain their computer network security in order (Rogers 1994).Computer intrusion is regarded as unethical act (Doss, Smith &Yurcik, 2001), and there are laws that have been passed for purposes of prosecuting such acts (Spafford, 1992, p.7), hence it is regarded that once an individual uses his hacking ability to perpetrate a cri me, he is deemed as a criminal (Doss, Smith &Yurcik, 2001). Numerous debates have sparked off in matters regarding to ethical hacking and crime intrusion (Doss, Smith &Yurcik, 2001, p.54). Ethical intrusion is associated with ethical hackers who tend to utilize their knowledge in hacking to improve the system (Doss, Smith &Yurcik, 2001). Conversely, illegal hacking has continued to enjoy triumph celebration from hacking community. According to Leeson, hacking has a long

Feminist and Post-Colonal Theory on a literary text Essay

Feminist and Post-Colonal Theory on a literary text - Essay Example This essay demonstrates that every culture had a way to resist the epic changes that were being imposed by the British Government. And in this story â€Å"Good Advice is Rarer than Rubies† (Rushdie). We see this resistance by the way the way men treat their women in Indian settings. Even though they are modernized they still practice their traditions like arranged marriages and the women also wear the veils except our main character Rehana and some other few women she points out.This essay demonstrates that every culture had a way to resist the epic changes that were being imposed by the British Government. And in this story â€Å"Good Advice is Rarer than Rubies† (Rushdie). We see this resistance by the way the way men treat their women in Indian settings. Even though they are modernized they still practice their traditions like arranged marriages and the women also wear the veils except our main character Rehana and some other few women she points out. In the story al ong a line is described outside the British consulate, this is symbolic of Euro-centrism that those people think that England is better to live in than India (Rushdie). Rehana surprises Muhammad Ali by turning down his offer of a free British visa. She also fails her exams on purpose, and when Ali asks her, she says, â€Å"there are some boys who need me† (Rushdie). Rehana symbolizes resistance to a new culture and thinking.   This paper makes a conclusion that the way the women are interrogated in the British consul symbolizes neo-colonialism (Forster).

Destiny, Fate and Free

Destiny, Fate and Free Will Essay Really an entity such as destiny or fate that exists? Does each and â€Å"everyone† of us have a destiny, â€Å" A set of predetermined events within our lives that we take an active course in shaping† Or a fate, â€Å"The preordained course of your life that will occur because of or in spite of your actions,† and as you/one would expect, the obvious existence of our own free will, â€Å"The power of acting without the constraint of necessity or fate; the ability to act at one’s own discretion. † Here, in a conversation between Forrest Gump and his Momma, we get an authentic and ordinary question about destiny and fate that most of us in all likelihood would ask. Not only in the question, â€Å"What’s my destiny,† but also in the statement, â€Å"Death is just a part of life,† it illustrates that the two are connected with each other. The choices you make are your destiny, and will ultimately lead you through the path to meet your death, (fate). As Forrest stands there looking down, wondering how sick his Momma is. He queries. â€Å"Why are you dying momma? † She looks up at him, and with a great expression of love. She expresses. â€Å" It’s my time. It’s just my time. Oh now, don’t you be afraid, sweetheart. Death is just a part of life. It’s 2 something we’re all destined to do. I didn’t know it, but I was destined to be your momma. I did the best I could. † As he responds with an acceptable assertion. â€Å" You did good, Momma. † â€Å" Well, I happened to believe you make your own destiny. † â€Å" What’s my destiny, Momma? † â€Å" Life is like a box of chocolates, Forrest. You never know what your going to get. † (Winston Groom) Destiny is more complex to come by than fate, because it involves the inner working’s of ones psyche. We advance on the road to our destiny when we tread the path of individuation. Destiny can involve choices that make no sense; risks that we’d rather not take; challenges that make us want to squirrel away under a rock; and certain moments in time that push us past our limits. Just as in the comment that Momma say’s to Forrest, â€Å"Life is like a box of chocolates. You never know what your going to get,† Is a good paradigm of the choices that we must all make. As we delve into the conversation between Forrest and his Momma. We begin to understand that the choices we make are part of our destiny which leads us to our fate’s end. Most of us believe in a higher power greater than ourselves; that something else is in control of our lives, and as we explore into the undeniable emergence of our fate. â€Å"The inescapable destiny of man. † We are compelled to go back millennia, to the times of mythological gods, and look at the Moirai. The Moirai were the three mythological goddesses of fate, They directed the symbolic thread of life of every mortal from birth to death. Clotho, â€Å"The spinner† spun the thread of life from her distaff onto her spindle. Lachesis, â€Å"The allotter† or drawer of lots, measured the thread 3 of life allotted to each person with her measuring rod. Atropos, â€Å"The inevitable† was the cutter of the thread of life. She chose the manner of each persons death; and when their time was come, she cut their life-thread with, Her abhorred shears. † The Moirai were autonomous, even though they had command of one’s fate appointed to them by the perpetual laws. They were responsible for making sure that fate would take it’s sequence in life without hindrance. They did not abruptly interfere in the matters of man, even man himself, in his freedom was allowed to exercise a certain amount of influence in his fate by the choices he makes. As a man’s fate end’s with his death, the goddesses of fate essentially become the goddesses of death. â€Å"Each player must accept the cards life deals him or her. But once they are in hand, he or she alone must decide how to play the cards in order to win the game. † (Voltaire) Within this quote made prominent by the prolific writer Voltaire. It conveys to us that this game of life is full of choice’s, and how we make the decision’s of witch path to follow define’s the measurement of our success in the game of life. Just as the Moirai do not interfere with our life, but allow us to make our own choice’s. Even though the two words are used in similar manners, fate and destiny can be distinguished. Paradoxically when the two words are used to mean the same thing, fate often assumes a negative association as is emphasized by the similar words â€Å"fatal,† â€Å"fateful,† and â€Å"fatalism. † Destiny traditionally suggests a more positive conclusion, such as people being more in control of their destinies. As we take in the considerations of destiny and fate; now we must consider the aspect of free will, â€Å"The power of acting without the constraint of necessity or fate; the ability to act at 4 one’s own discretion. † What free will tries to account for, is our introverted belief that we are in control of many of our choices, and thus our destiny-that we are free to think and choose for ourselves. We consciously make choices and decisions that are far more independent than that of nature and nurture than any animals. We have the conscious ability to think of the consequences of our choices, whether good or bad. These are the meaningful differences that lead to the idea of free will. I wear the chain I forged in life. I made it link by link, and yard by yard; I girded it on of my own free will, and of my own free will I wore it. (Charles Dickens) In conclusion, fate is predestined. Everyone’s life is fated to it’s termination; to meet his maker; to finally be judged; and even though we cannot conquer fate, we can accept the fact that our future lies within our own selves and not within the hands of fate. We do not let fate decide our future. We have the power to make choices by being the creator and writer of our own destiny. We have the power of free will. The way you wear the chain that you have forged link by link, and yard by yard is completely up to you. Just remember that you girded it of your own free will, and it is you solely that will have to wear it.

Queensland Vegetarian Restaurant Business Plan Marketing Essay

Queensland Vegetarian Restaurant Business Plan Marketing Essay Queensland Vegetarian Restaurant (QVR) is new cafà © designed to offer strictly vegetarian meals in a cool, friendly and serenity downtown south of California on Azusa Ave, Hacienda Heights. QVR will be serving healthy, fresh, and fairly priced vegetarian meals prepared and sold in the business premises. The business will pride itself in the competent staff comprised of fresh talents from colleges and others equipped with the necessary experience with many of them coming with experience from similar oppositions elsewhere. The business will be registered as Queensland Vegetarian Restaurant. Startup capital is expected to be $ 1 million. The owner intends to raise the capital by securing a bank loan $ 500,000 and top with similar amount from own savings. The bank loan will be payable in 2 ½ years. The business is expected to generate a net profit of at least 257% by the end of the third year since operation commenced. 1.2 Introduction Recent campaigns for vegetarianism and its growing acceptance provide an excellent opportunity or QVR. To maintain fair prices while remaining competitive, QVR regular menus will be simple, but creatively prepared with varying ingredients. The foods will be obtained from regular locally available suppliers and if need be regional dealer will supplement groceries obtained locally but in all a cases quality check will ensure that the foodstuffs are strictly organically grown and healthy. There will be fine decors with clear counters displaying freshly baked breads, fresh juices, and fine non-caffeinated beverages. 2.0 THE EXTERNAL BUSINESS ENVIRONMENT 2.1 Market analysis California is the third largest and the most populous state in the US with over 35 million people. The biggest proportion of the population is aged 18 to 30. Latest studies show that these group of people form greatest proportion restaurant food consumers. Other studies show growing acceptance of vegetarianism and a bigger concern for organic foods. The physical location of the business promises is a human high traffic avenue thus strategic. The surrounding businesses will ensure QVR customer constancy. The immediate neighboring two colleges is another strategic element to the business. This will be another source of relatively reliable clientele. There will be even more opportunities on weekends during sporting activities and other occasional event in the colleges. 2.2 Competition Competition is a very revenant element to be assessed in the external environment. All though there are many other restaurants in the identified location of QVR, vegetarian operators are not common. Most restaurants are fast food. The growing demands for organic foods will be great opportunity and strengths to QVR. Furthermore, the demand for sit-down restaurant will put QVR relatively above competition in food industry. The staff will be trained efficiency and effectiveness in customer service. Our competitive advantage will be laid on quick and quality customer service. To attract customers, the refined dà ©cor, beautiful garden, open shades will conjure customers comfort. The philosophy behind QVRs competitiveness is the fact the best way to market own self is through quality service delivery to the clients. QVRs pricing model will also be its competitive strengths. The checked food and labor costs will ensure that the foods served are fairly and competitively priced. Versatile staff that will be rotated around major workstations will be hired on contractual basis. QVRs will be a smoke-free cafà ©, a policy that enhance our corporate strategy to maintain customers. 3.0 THE FUNCTIONAL AREAS OF BUSINESS 3.1 Running an Ethical and Socially Responsible business QVR will endeavor to uphold ethical standards in its operations. While adhering to the industry regulations, the business will go an extra mile to ensure its waste is properly disposed or recycled. Its concern for the environments will be manifested in the fact it is promoting health-eating lifestyles. In the community, the business will play significant role in installing dustbins around town branded with QVR logo. This will serve to market the business while at the same help maintain a litter free city. Occasionally, there will be feed-the-street-family programs. In this activity, QVR will dedicate its resources and distribute free food to the street family and the communities living in ghettos within town. 3.2 Entrepreneurship Business Formation To start with, the Restaurant will be a 35-seat hotel but it is expected to double its capacity within the first six months of operation. There will be neon signage off the road inviting and directing prospective clients to the inn. The premise which currently being refurbished, is on the ground floor and will be checkered tile on the floors, have booths and open-air shades. There will be alternative access to staircases for people physically challenged. In order for the business to keep its operations cost low, it will at first serve its customers via aver the counter. This will minimize the organizations spending on labor. The over-the-counter service will also be an opportunity for the customer to self-service hence no tipping costs. Financial advisors will be engaged to guide the business invest in relevant expansion programs. This will include acquisition of more facility premises and opening of other branches within town. 3.3 Managing Human Resources QVR will acknowledge the contribution and necessity of its human capital in quality service delivery to customers. Thought formally established at the beginning, the Human resources will ensure that qualified and competent staffs are hired. It will ensure that at no point in time does the business operations are halted to interrupt due to incompetency or lack of staff. Leaving staff will be replaces as soon as possible. The HR will also discipline deviant habits in the staff. 3.4 Motivation Motivation will be a tools used by the Human Resource department to maximize productivity and creativity in the staff. There will be incentives to hard working and dedicated staff. The incentives will also reduce labor turnover. Since there will be no tipping in the restaurant, cash rewards will be given to outstanding performance in customer service. Employees will be allowed to nominate one of their own whom they consider to have demonstrated unique abilities in the business operations. 3.5.0 Marketing 3.5.1 The Marketing Strategy QVR will initiate marketing programs that will increase its publicity. At the beginning for the first quarter, advertising costs is estimated at 5-8% of sales. All though radio and print mediums may not be effective enough, the company will complement its marketing medium with other creative ways. These include sponsored community projects and events with much publicity of QVR featured and distribution of menus downtown. Other initiatives will include sale of t-shirts and mugs with QVR logo and images of healthy vegetarian people. There will be signage posters with variety vegetarian dishes along the avenues from both directions towards the location of the business premises. 3.5.2 Marketing mix QVRs endeavor to attract customers and win their loyalty will be enhanced by our marketing mix. The business will be promoting healthy eating and this will be our brand identity. Product- QVR logo will be designed to describe the relationship between vegetarianism and health. All the business facilities and packaging and serving materials will be braded this way. Pricing-As mentioned earlier our optimal operation costs will enable the business offer fairly prices enticing to customers. All our products will be strictly vegetarian. This is one of our key marketing mix elements, which distinguish QVR from other businesses in the industry. Promotion- There will be vigorous promotional activities including advertisement, gift vouchers to loyal customers, and terrific days with special daily offers. Community services will also be utilized fully to increase QVRs publicity. Place- QVRs strategic location will enable access to the target customers. The place will be accessible both by pedestrians and an ambient and secure parking will be provided free of charge to driving customers. 3.6 Accounting and financial projection There will be strict accounting procedures that will ensure maximum revenue collection and minimizes expenses. Qualified cashiers and internal auditors will be employed in the business. The projects in this business plan are based on the evaluation of similar business operation in California. A glimpse of projection is as follows Worst-case scenario projection of sales: It is expected that an average of 150 customers per day for a year (360 days) with an average of guest check of $ 3.50 bring average annual sales to $ 189,000. Middle Projection: averages 200 customers per day for 360 day with an average check in of % 3.50 bring medium projection to $252,000/year in sales Ambitious Projections: average 300 customers per day for a year at guest check of $ 3.50 thus projected average sales will be $ 378, 000/year. Inventory Purchases are projected at 40% of sales but will reduce gradually to 30% by the end of the first year. Expenses: labor expenses will be determined by the prevailing wages based on the hour and tasks performed the employee. Taxation will apply as per government requirements. The business is projecting growth rate of 19-28% in the firsts three years spread as 19%, 23%, and 28% respectively. Below is the average projection sheet for the next 4 years. Sales Estimates projections (in 000) Year 2011 2012 2013 2014 $6,000 2,150 3,850 1,044 980 1,826 730.4 $1,095.6 Sales $1,300 $2,000 $4, 000 Cost of Goods 240 500 1,200 Gross sales revenues 1060 1,500 2,800 Overhead 560 628 880 Marketing 260 400 630 Earnings before interest and taxes 240 472 1,290 Taxes and interest 96 188.8 516 Net Profit $144 $283.2 $774

Weight Loss For Women

Weight Loss For Women Does the very thought of losing weight makes you feel burdensome? If yes, then let me tell you that losing weight can actually be fun! If you are wondering about how to lose weight in a way that would really be fun and burden-less, then first think about the benefits of shedding those extra pounds of flesh you have in your body. You would get to wear all of your favorite dresses to flaunt that perfect body, you would soon become a head turner, you would have an increased level of energy, you would feel immensely happy about yourself, and about generally everything and most importantly keep all kinds of diseases at bay! The typical how to lose weight guides will make you follow strict boring ways to lose weight. But here we are going to give you some excellent ideas on how to lose weight, without much effort. First and foremost you should be willing to lose weight, and everything will then follow. The prime reason why you put on extra-weight is their eating habits. So if you are a foodie, and just cannot resist those tempting burgers, then let us be a little more experimental and eat a healthy fruit salad instead! Likewise, instead of convincing your mind that a ban has been put on all the junk and fattening food, think of the alternatives that you can eat which are healthy and nutritious. It will not only help you in reducing your weight but will also satisfy your taste buds. Another reason of extra weight is the lack of exercise. So if you are in love with your laziness; then here you would have to ditch your laziness a little, if you want a better partner who would not be able to take their hands off your body! There is absolutely no need to force yourself to do all that rigorous exercise; plenty of alternatives are available for the physical activity that you need which would help you in losing your weight. For instance, aerobics, yoga, swimming, dance! Wouldnt it be fun doing all this, having fun while losing weight! Women, especially, are very much concerned about the ways they look. Their elegance and their attractiveness is based on the way they look. How to lose weight for women is very important and women must focus on their figures to look gorgeous. Today, globally, women are cognizant about their health and diet. Earlier, people usually considered obesity as sign of health, but things have changed with the time and now, you might have understood and realized the magnitude of health and its diverse hazards. You strive hard to lose weight and try to find various ways of losing weight. However, weight loss depends on people and the places where they live in. There are various factors that affect ones weight- it could be related to losing weight or gaining weight. There are countless ways that you can shed your fat and look gorgeous and attract people all around you with your fragile and curvy features. Do not you want to look stunning in order to entice people around? Every woman wants to loo k beautiful, the only reason is they are naturally delicate and have tender features. They beauty flows from head to toe and people lock their eyes on women from every angle as women are very attractive, especially when they are slim and have good figure. As you know, there are numerous factors that are related to losing or gaining weight. However, recent studies have revealed that women lose weight faster than men due to their natural fat-shedding mechanism. However, it is believed that women need to involve in rigorous exercises in order to lose weight, but here, it is not the case. Since the chemicals inside female bodies act as reactors to certain dietary levels, it is not difficult to shed weight. Nevertheless, women should understand the basic concepts and when you understand then there is no hard work involved, but only some steps to follow. One of the problems that women have is time! They may not find time and maybe this is what restricts them from doing regular exercises. Women all over the world are health conscious but however, regions matter a lot. If you are in America, then you know what diet you have to follow and you do that according to your climate and region. Similarly, if you are in Europe or Asia or Africa, you f ollow health patterns according to your comfort levels. Women in America eat pizzas, burgers, diet beverages, etc. in their routine life. However, this may not be applicable to the women who live in Asia. Asian women may eat noodles, rice, etc. No matter what you eat, you must know the nutritional values as they are very essential. Losing calories is one of the crucial aspects and it is regarded as the front-fighter for women who have desires of losing weight. You might have heard that if you take more calories, then you deposit more fat in your body. But now, we have solution for you to lose fat as there are many ways to lose fat and to look slim and sexy. Make people go gaga over your looks and make others envy your sexy figure. There are various ways through which one can lose weight such as: 1. Eating healthy food 2. Reducing fat in your diet 3. Doing exercises regularly 4. Having sexual intercourse regularly 5. Building up stamina by doing combo-exercises 6. Spiritual exercises 7. Walking whenever and wherever possible 8. Stay Happy 9. By joining a gym or a fitness center 10. by consuming lots of water 1. Eating healthy food: What is healthy food? And how you are going to keep track of your diet? Well, it is very simple! Healthy food is nothing but normal diet. To shed that fat, you have to follow simple basic diets such as leafy vegetables, food without oil, fewer intakes of fish, cheese, butter and other fatty products, etc. It is said that if you eat leafy vegetables, then your metabolism remains perfect. You can start off with simple breakfast. Take a bowl of cereals as they have high-fibers. Mix a couple of bananas and milk. Remember not skip your breakfast as breakfast is very essential to stay fit and alert whole day. Good and healthy breakfast gives strong impact on your daily activities, so never skip it! 2. Reducing fat in your diet: Reduce that unwanted fat! How? When you intake food, read the nutritional values or just have some knowledge about what you are eating. Avoid regular consumption meat; do not eat fish regularly (once in a while, it is okay, but not every time). Avoid snacks. Munching some or the other thing may result in the huge deposition of fat and that may lead to various diseases including heart related, cancer, less concentration, and also may lead to unstable mental balance and equilibrium. However, you can grab a fresh fruit plate and finish it off and this does not have presence of fat. It is estimated that a piece of any fruit, any time, during the day reduces blood pressure and keep the blood levels minimal. This also helps in getting less anger and maintaining your mental balance which is very essential for you to lose weight. All fruits have very few calories and consumption of fruit at least 30 minutes before breakfast or any meal will prove useful. So, kic k that snack off and gulp a piece of fruit! 3. Doing exercises regularly: Shake it baby and shake that fat off your belly by doing regular exercises. It is very easy to work out daily by taking some time out from your routine. Daily exercises include walking, jogging, running, skipping, jumping, swimming, cycling, etc. The best way to follow regular exercise is: a) Wake up and walk around for at least two minutes before going to washroom b) Stretch a bit and touch your toes after you finish brushing your teeth c) While eating, chew at least 40 times and this is one of the best exercises for your jaw. Also, it helps in churning food well and helps in good digestion d) Play with your kids and run while playing e) Laugh a lot! When you laugh, your stomach muscles contract with your neck muscles, including your spine. This helps in keeping your heart race in rhythm and as you know, laughter is the best medicine! f) Pick your kids up in your arms and roam around g) Park your car and walk till your destination h) Avoid elevators and climb stairs, no matter how many floors they are. Climbing stairs help in building your thigh muscles and your hips get in shape when you climb regularly. It is better to count while you climb every time and also, climb down i) Lets dance! Turn on your favorite track and dance for at least 15 minutes. Dancing burns calories and when you perspire, sit down, relax and count till 50 and then backwards. j) Angry? Kick it off by kicking the kit. When you are angry, do not regret later as this is one of the best ways to release your frustration, as well as your unwanted fat. When you get angry, put on the gloves and start hitting the boxing-kit till you perspire and think you are getting exhausted. When you do that, you burn a lot of calories and also, by that time, you will realize that you have already kicked that anger off your hot head and then you will feel cool and relaxed. What else do you need? You are getting multiples things at the same time- your anger is vanishing from your head, you are reducing your fat, you are losing calories, and also, you are training yourself for self defense. Sounds cool, does not it? 4. Having sexual intercourse regularly: Men get aroused easily and women take a lot of time in getting sexually charged. Recent studies depict that sexual intercourse burns many calories and the act itself is a fat burning process. When you are involved in sexual intercourse, you tend to lose more fat. It is said that 1 French kiss helps in losing many calories. So while having sex, make sure you lips are locked. Also, an orgasm can make your heart healthy and regular sex may reduce mortality. Indulge in sexual act at least 3 times a week. 5. Building up stamina by doing combo-exercises: What are combo-exercises? When you combine two things, then it results in combination. Similarly, combo-exercises are the combination of exercises such as dance and exercise, Thai boxing, Cardio, etc. When you dance and exercise, you build stamina and stamina helps in performing more, which results in burning of fat. 6. Spiritual Exercises: These exercises involve meditations. Close your eyes every day and meditate at least for 20 minutes, by keeping your mind blank. When you are involved in spiritual stuff, you will find the difference soon. Meditation not only gives impact on your physique but also on your mind and memory. When you do meditation, you will improve your memory and things may turn in a positive way. 7. Walking whenever and wherever possible: Walking is one of the important ways to lose fat. Walk fast every day or walk slow does not matter but walking itself matters. When you walk your muscles get strong. 8. Stay Happy: Stay happy by being positive. Tensions always lead to disturbed life. Avoid that and keep yourself happy if you want to lose weight. 9. By joining a gym or a fitness center: Follow instructors ways and shed off that fat 10. By consuming lots of water: Consumption of water may reduce weight as the liquid will flow deep inside your body and make your joints and muscles flexible which may result in good work out.