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Study About Business Ethics Business Essay

The recent business ethics scandals involving some of the nation’s largest businesses have shed severe uncertainties upon the credibility of those who lead such businesses. They also have led to bankruptcies and massive layoffs. In this essay, we will discuss what business ethics is, and what it means to the organization and to the individual. What is Business Ethics? Business ethics are becoming more and more prevalent in today’s business world. Business ethics is a form of applied ethics that studies ethical principles and moral or ethical problems that arise in a business environment. There are an array of issues that have come under scrutiny, including community responsibility, pollution, whistle blowing, and sustainability. Business ethics is the conduct that a business adheres to in its daily transactions with the world. The ethics of a particular business can be different. They pertain not only to how the business interacts with the world at large, but also to their one-on-one transactions with a consumer. Many businesses have obtained a bad reputation just by being in business. To most people, businesses are only concerned with making money, and that is the bottom line. Making money is not wrong in itself. It is the behavior in which some businesses conduct themselves that brings up the issue of ethical behavior. Good business ethics should be a component of every business. There are many factors to consider. When a company does business with another that is considered unethical, they are usually considered unethical by association. The company has a responsibility to investigate the companies that they do business with. Many worldwide businesses, including most of the major companies that we do business with, can be viewed as not practicing good business ethics. Many major companies have been fined millions for breach of ethical business laws. Money is the driving factor. If a company does not comply with business ethics and breaks the laws, they usually end up being fined. In the US alone, many companies have broken anti-trust LAW, ethical and environmental laws and been penalized with fines worth millions. The dilemma is that the amounts of money these companies are making out weigh the cost of the fines. What does business ethics mean to the organization? Business ethics have a newfound importance in an organization. The focus is now on maintaining the rights of the general public. If a company does not follow the business ethics, it will involve itself in misleading of financial statements, frauds, discrimination, price discrimination, etc. A strong ethical character can give a competitive edge to an organization, improve recruitment, and help retain current employees(????). It promotes morale because an excellent ethics program encourages such morale boosters as candidness and truthfulness. It can improve employee interaction and build a workplace atmosphere based on honesty, equality, integrity and candor, eliminating obstacles in communications. Ethics commonly refer to the rules or principles that define right and wrong conduct. In the United States, many believe we are currently suffering from an ethics crisis (Reder 85). Behaviors that were once thought unacceptable –lying, cheating, misrepresenting, and covering up mistakes — have become in many people’s eyes acceptable or necessary practices. Concern over this perceived decline in ethical standards is being addressed by organizations, while companies rely on their Human Resource (HR) department to build an ethical culture. When employees in organizations make decisions to act unethically, they affect not only the company itself, but also its shareholders, employees and customers. Employees make a myriad of choices every day in businesses — if unethical, they can damage a company’s productivity, profits and reputation. Unethical decisions can come in many forms: the employee who conducts personal business on company time to the line worker who fails to report a product flaw just to meet a deadline, and even more serious, the manager who profits from illegal use of insider stock information. All these incidents lack ethics. In most companies today, the competitive advantage rests on the shoulders of its employees. These employees must be trusted to “do the right thing”, especially when no one is looking. It is up to HR to train, educate and communicate with employees on what is considered to be right and wrong in the workplace. After all, ethics is one topic that begins and ends with people. In a study conducted by the Chartered Financial Consultants and the Ethics Officers Association, found that 56% of all workers feel some pressure to act unethically or illegally. The study also revealed that 48% of workers admitted they had engaged in one or more unethical and/or illegal actions during the last year. Among the most common violations: cutting corners on quality, covering up incidents, lying to supervisors, deceiving customers, and taking credit for a colleague’s ideas (Braybrooke 63). It’s good to defuse even the slightest impression among employees that management encourages unethical behavior in obtaining business objectives. In the empowered workplace where decisions are being forced down to the very lowest level, the employee must understand the importance of making that decision right the first time. Ethics are becoming more and more important, and HR departments are vital in establishing ethics guidelines. Ethics should be instinctive when making decisions, and a good ethics program can successfully guide employees through the decision making process. Well-communicated guidelines help set the standards for employees. An important part of an ethics program is increasing awareness levels amongst employees. Companies with ethics programs find that many “unethical” decisions are not of deliberate commission, but of ignorance. An effective ethics program can be an important tool in an organization because as employees learn to use this tool, they become more confident in the self-regulating atmosphere of the new workplace. A clearly explained code of ethics plays a pivotal role in employee empowerment by clearing up any questions on their own. A code of ethics is a formal document that states an organization’s primary ethics and values that it’s employees are expected to follow. Ethics are becoming more and more important, and HR must continually revise the code of ethics to address issues that come up in the changing workplace. Corporations must ensure the code of ethics is used effectively and not just as window dressing. Their effectiveness depends heavily on whether management supports them and how employees who break the codes are treated. When management considers them important, regularly affirms their content, and publicly reprimands rule breakers, codes can supply a strong foundation for an effective ethics program. However, winning the ethics battle isn’t only about how an organization punishes those who engage in unethical behavior, but how the company rewards both good and bad behavior. Although a usable ethics code and an accessible ethics officer will help get the message out, a successful effort requires active communication, education and training — a key role of the HR department. More and more HR departments are setting up hot lines, seminars, workshops and similar ethics training programs to try to increase ethical behavior. Recent estimates indicate 33% of companies provide some ethics training (Chappell 147). The primary debate is whether or not you can actually teach ethics. Critics stress that the effort is pointless since people establish their individual value system when they are very young. However, supporters note that several studies have found that values can be learned even after early childhood. Evidence shows that teaching ethical problem solving can make an actual difference in ethical behaviors; that training has increased individuals’ level of moral development; and if it does nothing else, ethics training increases awareness of ethical issues in business (Braybrooke 132). Hoffman, of the Center for Business Ethics, says that the most important aspect of an educational program is to teach employees to think independently about ethically sensitive issues (Braybrooke 67). In this day and age, employees need desperately to have the opportunity to think through ethical situations. The training programs provided by HR must provide them with tools to think through those issues successfully. An effective ethics program builds the morale of its employees because, most employees like to work for corporations they think are ethically intended. Ethics are free — the HR department has to put forth the effort to communicate, educate, and train its employees on the importance of their decisions. An effective program costs very little, but the absence of ethics can be extremely costly. A company that finds a way to change the system so people can be influenced to act ethically and responsibly is far more likely to succeed. What does business ethics mean to the individual? A person’s sense of ethics has an impact on the type of conduct the individual will exhibit. When people are able to tell the difference between right and wrong and they choose to do what is right, then they are acting in an ethical manner. Business ethics aren’t just about the difference between right and wrong; they are the actual application of that knowledge to business. Individuals who work for businesses make decisions every day, and their actions can impact the lives of many other people. When businesspeople make decisions that are not ethical, many people can be hurt – including employees, customers, and members of the general population — as well as the business itself. Companies that are operated by people who do not choose to do what is right are often entities that do not survive for the long term. Often, making business decision that are counter to what is right may result in short term profit but lead to eventual demise of the organization. Conclusion Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build. A business or society that lacks ethical principles is bound to fail sooner or later.
Table of Contents Introduction Strength of character by Oedipus Conclusion Works Cited Introduction Oedipus can be described as a Greek mythical personality in the Greek culture. He is described as a person who came to fulfill a certain prophecy. The prophecy itself involves this third king of Thebes killing his biological father. Later on, he unknowingly marries his biological mother. All of this began with a prophesized oracle after the birth of Oedipus. Therefore, Laius orders his death to avert this prophesies. Unfortunately, while he was left out there in the wilderness to die, a shepherd picks him up and hands him over to a friend. Through the shepherd’s friend, he ends up in Corinth in the Kings house. The King and Queen take him as their own son. They see him as a blessing as they did not have a child. Initially, Oedipus was not aware of the fact that the King and Queen were not his true parents. Therefore, when one day a drunk mentioned that he was adopted, it troubled him. He became even more troubled on visiting several oracles. Even though the oracles told him the truth, it was more troubling because at that time, he could not make sense of it all. One day, while Oedipus was on his way, he had a dispute with the King of Thebes and unknown to him he killed him after having the argument. He did not even know that he was the king of Thebes when he was killing him. Later on in the town of Thebes, his wits enabled him to answer a riddle and thus saved the people of Thebes. He thus went on to fulfill the prophecy by marrying King Laius’s widow. However, when mother and child came to learn later on their true relation to each other, the mother decided to commit suicide. Oedipus on the other hand decide to blind himself. Strength of character by Oedipus Oedipus has an outstanding central strength. This strength is his curiosity or in other words his truth seeking zeal. This strength can be termed as being part of him. This is first witnessed after he gets a tip of his true Identify. Since he wanted to really know the truth behind it all, he is seen visiting various oracles just to find out the truth. Even though it took quite a while for him to know the truth about his parents, he finally did find out the truth, though a bit late. His truth seeking nature can also be thanked for enabling him to earn the throne of Thebes. This riddle of Sphinx enables him become a ruler and gets a ready wife. Get your 100% original paper on any topic done in as little as 3 hours Learn More The truth seeking nature of Oedipus can almost be described as being hard-coded in him. This is evident as he ignored all warnings to keep away from the truth. An example is a warning by the prophet who was blind, i.e. Tiresias. Terisias points out to him “You don’t’ want to know the truth” It is in fact disappointing to him when he finally learns the truth. In fact it is the truth itself that brings Oedipus down and not even his defiance of the gods. The desire to know the truth thus forms the strongest motivating factor in Oedipus. His period of reigning as king comes down to being characterized as a truth seeking mission. It is no wonder that despite the big title that he held, his life had many uncertainties that formed a riddle around him (Simon, 201). It can be put down that in the whole play; the truth is vividly guarded from Oedipus. When it however finally dawns to him, the same truth shocks him. He however embraces this truth with open arms. Therefore one can say that his ability to move from being in pain and confused about the truth is a strength in character. It actually shows just how Oedipus has finally become wise. Throughout the play of Sophocles, Oedipus seems extremely careless on his quest for the truth irrespective of the consequences that are ever so painful. Even though one can say that his quest for the truth was accompanied by lots of despair, this same quest is the one that is attributed towards having changed Oedipus. Due to his many tribulations, Oedipus is forced to come to terms with new responsibilities. These were to affect not only his family and kingdom, but also himself. He is thus seen to have come out stronger. This strength of character also shows that he indeed has become mature. Conclusion Come to think of it, there was only one way through which Oedipus could have attained his strength of character. Therefore, Sophocles just puts out a simple fact through this strength of Oedipus. This simple fact is that every single person is always in a quest to find the truth about something. It is not a must for the quest to set you free. The fact however is that the journey on your quest will shape you Works Cited Simon, Peter. The Norton Anthology of World Literature. 1(2). USA: W. W. Norton
write a short discussion..

discussion:https://www.youtube.com/watch?v=QPKKQnijnsM (Links to an external site.)Links to an external site.How is our Political Culture in America allow for such income inequality. Do you think it should change? Explain. Make sure to respond to at least ONE of your peers comments.response:The first time I saw this video, I was shocked to discover that the top 1% percent takes home almost a quarter of the nation’s income. The political culture in America allows this income inequality since half of the bonds, stocks, and mutual funds belong to the 1% while the bottom 50% only own half a percent. Another thing is that CEO’s are making 380 times more than their average employees. They would need to work a little bit more than a month just to earn what their CEO earns in just an hour. I think how the culture is now should change because the rich only get richer and the poor only get poorer. Times are getting harder with all the prices increasing especially for necessities such as education. It would be nice for this to be evened out even just a little bit but, it’s unrealistic, I believe the rich want to keep their safety net of wealth.the discussion should be 6-8 sentences, and the response should be 3-4 sentences.
write a short discussion.

Production Description Utilizing an ergonomic design that conforms with the seating structure of a variety of Ford produced cars, the Protective Infant Safety Harness or PRISH, is a pre-installed car seat that is available upon request when purchasing a new Ford vehicle. One of the main issues with current car seat models available in the market today is that they are bulky, hard to put away, and lack the necessary structural supports to protect an infant if the car should suffer a collision (Hatzakis, 384). To resolve this issue the Ford PRISH is the company’s answer to the daunting tasking of ensuring the safety of a child while at the same time making the car seat ergonomic enough that it can be easily stored or taken out when need be. Mission Statement “Our goal is to ensure the safety of children and give peace of mind to parents by providing a car seat that is both comfortable, safe, and above all is in line with the high standards of quality that the Ford Motor Company is known for.” Product Info Built utilizing extensive tests in ergonomic design and safety standards the Ford Prish car seat utilizes a conjunction of safety foam, impact webbing, durable materials, and safety straps to ensure the protection of an infant from any manner of sudden hits, impacts, or accidental collisions that may happen to a moving vehicle. Feature, Function, and Benefit Feature Function Benefit Pre-installation by Ford Trained Specialists Ensures that the various seats of the car are ready to effectively hold and handle the specially designed car seat to ensure maximum protection for an infant. Assurance that the car seat can be easily attached and removed from the various seats of the car Ergonomic Design The ergonomic design of the product ensures that it conforms to the contours of the backseat where it is placed at thus ensuring a far less bulky and safer riding experience for the infant (Simonsohn, 1 – 2) More space within the backseat of the car since the car seat is not as bulky as compared to other versions currently in the market Collapsibility The car seat can be collapsed and put away. This particular function ensures that in instances when an infant is not present in the car and space is needed in the back the car seat can be put away rather easily Durable Carbon Fiber/ Gorilla Glass Frame The carbon fiber/ Gorilla glass frame of the car seat ensures that despite the wear and tear that comes with regular use of the car seat it will not lose its overall structural integrity while at the same time creates a see-through cover for the infant(Kaber, 650) Enables the car seat to last for years if need be. Safety foam made of kevlar on the front and the sides of the car seat The safety foam feature on the front and sides of the car seat ensures that the infant is protected by sudden jarring movements (i.e. an accident) via tough Kevlar weave (Laliberte, 123) Gives an additional layer of protective support for an infant Easy to attach safety harness that prevents the car seat from moving Safety harnesses attached to both the infant and the back/front seat of the car ensures that in event of a sudden stop the car seat won’t go flying forwards (Parikh and Wilson, 352) Protects the infant from crashing into the seat or dashboard in front of them Comfortable net webbing for infant comfort Utilizing a web of sturdy fibers the center of the car seat protects the infant from sudden impacts from the back while providing comfort Safe and comfortable protection Partner Companies Samsonite (durable casing) – $1.7 billion Corning (Gorilla Glass) – $6.6 billion DuPont (Kevlar) – $36 billion Walmart (sales) – $421 billion Determinant Gap Map Ease of Use Walmart Variety of Products Low – Corning High – Samsonite Low –DuPont HighLow- Corning Works Cited Hatzakis, Greg. “Sudden infant deaths in sitting devices.” Archives Of Disease In Childhood 93.5 (2008): 384-389. Academic Search Premier. Web. Kaber, David. “Comparison of infant car seat grip orientations and lift strategies.” Applied Ergonomics 43.4 (2012): 650-657. Academic Search Premier. Web. Laliberte, Richard. “Precious cargo.” Parents (10836373) 84.4 (2009): 123. MasterFILE Premier. Web. Parikh, Shital, and Wilson, Lindsay. “Hazardous use of car seats outside the car in the United States, 2003-2007.” Pediatrics 126.2 (2010): 352. MasterFILE Premier. Web. Simonsohn, Uri. “Lessons From An ‘Oops’ At Consumer Reports: Consumers Follow Experts And Ignore Invalid Information.” Journal Of Marketing Research (JMR) 48.1 (2011): 1-12. Business Source Premier. Web. Get your 100% original paper on any topic done in as little as 3 hours Learn More

THE1130, Theatre History Presentation PPT.

THE1130, Theatre History Presentation PPT.. I’m stuck on a Powerpoint question and need an explanation.

Topic:First Scripted Western Theatre: The greeks
Provide textbook information to finish the PPT.
create a summary in the form of a PowerPoint presentation. Make sure to hit all the high points of the reading WITHOUT quoting from the book. Make your PowerPoint slideshow colorful, original, and fun. These should be relatively short presentations, too…no need to have more than a handful of slides. (5-7)
THE1130, Theatre History Presentation PPT.

Attacks on our national infrastructure are already happening. And the expectation is that they will continue to increase at an accelerated

essay help online Attacks on our national infrastructure are already happening. And the expectation is that they will continue to increase at an accelerated. Attacks on our national infrastructure are already happening. And the expectation is that they will continue to increase at an accelerated rate. For this week’s discussion, we’ll cover threats to our nation’s pipelines. To get started, read this article: https://www.eenews.net/stories/1060054924 After reading the article, start a discussion thread and discuss how the types of threats discussed in the article could impact our economy, and how implementing Diversity and CommonalitAttacks on our national infrastructure are already happening. And the expectation is that they will continue to increase at an accelerated

The Importance Of Intimacy And Effective Communication Theology Religion Essay

The Bible gives us deep insight into the biblical principle of communication within our human relationships. God shows us in His Word that He is more concerned about understanding than He is about speaking. Paul tells us that the objective of prophecy is to “build up,” and if something is said that does not build up, it should not be said. Paul also instructs us about order – speaking when it’s your turn in order to avoid confusion and to pursue peace. When God speaks to us from heaven, 1) it is decent and in order, 2) we will know what He is talking about (we have an understanding), and 3) there is a purpose behind it- to build us up! Communication is a skill! Communication is defined as taking what is inside of us and conveying it to another person. I have also heard it characterized as “an exchange of sincerity.” Not being able to communicate constitutes the bulk of our marital problems, which is why I decided to give this tool its own chapter. Communication is the process by which we share our thoughts, feelings, and ideas in such a way that others understand us. The goal of communication is to make things common. To do this, we define terms and reduce everything down to its common denominator. If we do not define terms and find commonality frustration will result, leading to conflict. The divorce rate in our country is greater than 60%, and research indicates that one of the biggest problems that lead to divorce is communication issues – people’s inability to talk with one another This chapter is designed to help you and your partner learn the art of successful communication, whether that partner is your spouse, your friend, or your significant other. When we make things common, we have communion. When we have communion, we have community, which is belonging or relationship. Unfortunately, with the way that we currently communicate, what is meant, what is sent, what is received, and what is interpreted are different conversations! Before you begin your journey to learning successful communication, realize that this investment will take some effort! Effective communication is not for wimps! Communication is or involves: Dialogue Hard work Time consuming Reveals your perspective Requires courtesy Requires body talk Must happen at the right moment Succeeds with positive regard for the other person Getting an understanding I pray much success as the Holy Spirit guides you in your efforts to learn how to speak, listen, understand, and be understood through the art of successful communication. I also pray that you develop tolerable communication. The Importance of Intimacy and Effective Communication Intimacy is necessary for skillful communication. Intimacy is from the Latin word innimus meaning “innermost.” We share our innermost thoughts, opinions, feelings, and goals. When we are able to share these things with others, we can connect on another level. Reflection: Have you ever felt like you were talking about something, but the person you were speaking to never quite got what you were saying? How did it feel when you could not connect? A consequence of not being able to communicate due to a lack of intimacy is that it creates distance as opposed to the closeness that we desire from our partner. Reflection: Did you sense a distance between yourself and your partner when you did not connect? Intimacy or the ability to speak freely from your inner being is a must if there is going to be effective communication patterns in the relationship. The stage of negotiation will be ineffective if intimacy does not exist. Why? Because people will not be honest with each other; they will simply say what causes the least amount of stress and conflict. Here are five keys to intimacy – the five (5) “musts” for intimacy: Access – you must possess the ability to link spiritually, emotionally, and physically. In order to have access to your partner, your values must be compatible and in the same camp. Exercise: Does your partner share the same values that you do? List three values that you share with your partner. Availability – making sure that both you and your partner are available for one another physically, spiritually, and emotionally. Do you and your spouse have a space and a time where you just chill out and talk and laugh? Is there a time for you to access each other? Exercise: Does your partner ever complain that you are not available to him/her? What practical, reasonable steps can you take to ensure that you are available to the extent that it makes your partner comfortable? Argot – an inside language that you develop with your partner. No one else may know what you are talking about because this is a language specific to your relationship such that you can have a conversation in the midst of other people and they have no idea what you are talking about. Exercise: Give three examples of the types of words, phrases, or gestures used in the relational argot between you and your partner. Abandonment – you have to be willing to become transparent and self-disclosing. If you are unable or unwilling to reveal yourself, you can’t become intimate. Exercise: Describe an instance in the past when you or your partner revealed something about yourselves to the point where you understood him/her (or vice versa) on deeper, more intimate level. Application – you must be willing to apply yourself in your relationship. Exercise: Give an example of how you might apply yourself even further towards developing a quality relationship with you partner. After having lived with a spouse for a number of years, it is apparent that the couple becomes unable to communicate in a normal, meaningful fashion. If either spouse is unable to avoid exchanges that invariably result in conflict, a communication breakdown in the marriage has occurred. In extreme cases, especially if accompanied by abusive tendencies or other symptoms of dysfunction, a growing inability to deal with any verbal exchanges without conflict could be indicative of a much more serious problem that requires the attention of a mental health professional. More often than not, however, growing differences between the spouses, which may have their roots in the above-mentioned causes, are to blame for communication breakdowns. Treatment: James 1:19-20, Ephesians 4:15, 29-32, Philippians 2:14 “Do all things without complaining and disputing” Failure to Communicate In any relationship, communication is essential. One needs to let the other person know what is on his or her mind. You cannot keep on second-guessing the other person. Open communication becomes critical, so misunderstanding can be minimized. Problems arise when one partner expects the other to read his or her mind – you will agree with me that this is close to impossible. The following five things hinder the creation of a context of toleration of communication. Five Hindrances to Communication The Complexity of Communication – Communication is not simply about people’s ability to access vocabulary words. It is a skillful exchange between two people. There are listening styles and communication styles that exist in order to help facilitate this. If your spouse is a visual communicator and you are auditory, saying “I love you” will never reach them as much as actually seeing a symbol of your love, such as flowers, a card, a nice gift, etc. Many times, we are talking the wrong language to our spouse. Low Self-Esteem – If you have low self-esteem, you will not talk, because you feel that what you have to say is not important. At some point in time, you will talk, but that time you may explode. You must learn to value your feelings enough to share them with your spouse. Understand that your unwillingness to share your thoughts can destroy the future of the relationship. Fear of Criticism and Judgment – Some people live in fear that what they say may be interpreted in a way that they did not intend, or they are unwilling to allow their words to be potentially judged or criticized negatively. Rather than risk this potentially negative backlash or misunderstanding, they can be hesitant to communicate clearly with sincerity and with honesty. Lack of Knowledge of Internal Happiness – You really do not understand what is going on inside yourself, so you are unable to put your true feelings into words. Thus, your words and what is going on inside of you are totally disconnected, and you feel unfulfilled. Inability to Put Thoughts and Feelings into Words – Some people put thoughts and feelings into actions, such as being mean, slamming doors, withholding physical intimacy, and name-calling, because they are unable to verbally communicate exactly how they feel. If you can be comfortable without any talking with your significant other, there is something wrong and dysfunctional with your relationship. Exercise: Choose the hindrance that most affects communication within your relationship and then list two alternatives to overcoming those hindrances. Communication involves talking with objectives and the following are the objectives behind talking. Determine which ones you are trying to achieve when talking with your spouse. Information Talking informs you or makes you aware of something you do not know. We must talk in order for others to understand us. We cannot expect others to know what we are thinking or feeling. Some people tend to say, “He should ALREADY know!” But this is not the case. Simply because we articulate what we want over and over does not mean that our partner gets the message. Revelation Information is based on words; however, the basis for revelation is self. Revelation is the self-disclosure behind the words. The objective of communication is not just words, because words are inadequate to holistically explain what we are trying to say. Communication There is a difference between talking and communicating. Communication is the process by which we share our thoughts, feelings, and ideas in such a way that others understand us. The goal of communication is to make things common. To do this, we define terms and reduce everything down to its common denominator. If we do not define terms and find commonality, frustration will result, leading to conflict. Exercise: Pick one issue or need that you feel your partner has not responded to in ways that satisfies you, and answer the following questions regarding this issue: Have I fully expressed to my partner what it is I want? Yes No Have I revealed to my partner what it is I want? Yes No When I expressed these issues and revealed myself to my partner, based upon the definition of communication, was I simply talking or were we truly communicating? How can I more effectively communicate this particular need to my partner? The 5 Levels of Communication There are, what I refer to as, five levels of communication that at some level are correlated with the objectives of talking, but differ due to the emotional involvement in communication vs. talking. Level 1 Cliché – Shallow level of communication we use when talking with strangers. We don’t talk about anything of significance because we are not trying to relate. Level 2 Reporting Facts – A simple exchange of data. This occurs frequently in relationships, as people may simply report the details of their day to one another. A husband and wife may talk about the kids, what happened on their jobs during the work day, what’s for dinner, and what bills need to be paid, rather than anything on a deeper level. Level 3 Sharing of Ideas and Opinions – This is the first level of risk communication, because it taps into the core of who we are. On this level, we risk possible conflict and/or rejection that may result from disagreement. What if your partner shares his/her ideas or opinions about this and you do not agree? For this reason, most people stay away from this level and stick to Level 2. Many couples have tried this level and found it to be too challenging. Level 4 Revealing Emotions – This level of risk is the “I feel” level where you communicate your joys and sorrows to your partner. The problem with this level is that if a woman communicates her emotions to a man, he will tend to blame himself for causing the woman to feel this way. Rather than hear the emotions of the woman, the man may move into a posture of defense that might thrust him into warfare. People may not mind communicating the joyful emotions on this level, but they often do not like to communicate negative emotions on this level. Level 5 Complete Disclosure -The riskiest, but most rewarding level of intimacy, is the unrestrained, honest sharing of one’s innermost desires, whether they are popular or not to a partner The partner, in response to the sharing of emotions on this level, will then respond in a loving, accepting way that acknowledges the problem and assists their partner in resolving the problem Exercise: Complete the following chart regarding your relationship’s communication style. For each level of your relationship, write down you and your partner’s level of communication at that particular point in time. Check only those relationship levels that apply to your own relationship and skip the levels that do not apply. Relationship Level Communication Level When you first met your partner One year after you met your partner The day you married your partner One year after the birth of your first child Five years into your marriage Ten years into your marriage Your relationship today If you noticed a change in the level of communication, to what might you attribute this change? At what level would you like your communication with your partner to be? If we want to have a tolerable relationship that is healthy, we must be attentive to our communication style. Sometimes we engage in negative communication styles beyond our own consciousness. Virginia Satir offers a model that accentuates what she refers to as the four styles of communication. Four Negative Communication Styles Placater – The “Yes” person who tries to avoid conflict at any cost. Blaming – The “fault finder” who tries to find fault in your argument or something he/she can be critical of in an argument Computing – The “Cool, Calm, Collected, and Correct” person who is always right. They never get excited or emotional, because they know they are right. During their turn in the conversation, they will explain to you all of the facts. They tend to believe that their partner has lost the facts in all of their emotion. Distracting – The person who ‘changes topics like crazy’ because the conversation becomes too conflicting, personal, and intimidating. Circle the Communication Style that best describes YOU: a. Placater b. Blaming c. Computing d. Distracting Circle the Communication Style that best describes your PARTNER: a. Placater b. Blaming c. Computing d. Distracting How do you think either of your negative communication styles has impacted the communication in your relationship? Communication Styles Characterized by Animals Shark – The Competitor Gets what they want no matter what it takes by shouting, sulking, withholding physical intimacy – whatever works. This type does not mind having disharmony in the home. Bear – The Accommodator Keeps peace at any cost Fox – The Negotiator Specialist in compromise such that everyone wins a little and everyone loses a little. Both Bear and Fox tend to walk away half-pleased. Turtle – The Avoider Pretends that problems do not exit in the relationship. Their partner tends to be the shark-style communicator. This person feels conflict, so he/she becomes passive and withdrawn. Some people think they have happy marriages, because they are married to turtles. The Owl – The Collaborator The win-win person who will try to get a resolution for all. Tends to operate with wisdom. Exercise: List the potential strengths and weakness of your animal-type communication style and that of your partner. Communication and Non-Verbals Communication is more than the words you speak. Communication encompasses what you say, how you say it, and how your body is reacting to what you are saying. Research shows that communication is: 7% Words 24% Tonality 69″ Body Language and Expressions Reflection: What would happen if your partner shouted to you, “I AM interested in what you are saying!” while turning away from you to intently watching his/her favorite show on the television? Would you believe the words that he/she was communicating? The tonality and the non-verbals would outweigh the words that were spoken. Key Dynamics of Communication Listening is one of the most important functions of communication there is. If both people are slow to listen and quick to speak, there will be chaos and lack of communication because there will be no understanding. There is a difference between HEARING and LlSTENING! Hearing – the auditory reception of sound Listening – the ability to hear, interpret, and understand Exercise: Give an example of how your partner may have heard something you said rather than listen to what you said: Listening involves commitment! A commitment to understand, empathize, to put aside one’s own interests and prejudices long enough to see the relationship through the eyes of the other person. The goal of listening is to understand, learn, and enjoy helping. Listening involves compliment! Because our partner listens, we tend to feel that we matter. Roadblocks to Listening Most men dread hearing the words, “Can I talk to you about something?” or “We need to talk.” They tend to ask themselves, “What did I do now?” They dread that they will now have to engage in an activity that so many of us are unprepared for – the art of intentional listening. The following are roadblocks to listening in which many of us engage in with our relationships: Mindreading – ignoring what is being said while trying to figure out what is meant. In other words, ignoring the obvious in favor of the imaginary Rehearsing – preparing what is going to be said. You cannot listen you are trying to get your argument together against your partner Filtering – keeping the things that you do want to hear or that you do agree with and blocking out all you do not want to hear Judging – Listening to criticize, to judge, and to find blame Daydreaming – not paying attention or tuning the other person out Advising – jumping in to try to fix the problem with a solution rather than hear what the person is saying. Just because your partner has a problem does not mean that he/see wants you to fix it all of the time! Exercise: Evaluate the following scenario. Jesse is listening to his wife complain once again about the gas tank of their car being left on empty after he has driven it all weekend. As his wife proceeds to give him a play-by-play of who drove the car that weekend and when and where it was driven, he is trying to pinpoint in his mind exactly who should have stopped to fill the car’s tank rather than hearing his wife’s issue. After she finishes, he has already concluded whose fault this whole issue was, deciding actually it was her fault. Which roadblock is Jesse employing? a. Mindreading b. Rehearsing c. Filtering d. Judging e. Daydreaming f. Advising Dynamics of Active Listening Step 1: Pay Attention. Listen without any roadblocks. Step 2: Paraphrase. Restate your understanding of what your partner has spoken to you. Step 3: Clarify. Your partner comes back with what he/she actually meant if you did not get the intended message. Step 4: Collect Yourself and Get Feedback. The feedback should address what you just clarified with your partner. Deal with the facts on the floor and respond with what you feel about what was communicated. The goal of communication is not agreement or convincing your partner. Rather, the goal of communication is to be heard and understood! Exercise: Choose a neutral topic to discuss with your partner, and allow your partner to practice utilizing the four Dynamics of Active Listening while you explain your topic. After you have had your turn, allow your partner to use the same exercise. Write down the results of how this exercise transpired and how active listening made each of you feel. Very few people actually make contact in communication, i.e., two people ending up at the same place, knowing where they are when they get there. We tend to be on different frequencies when we communicate, and thus never end up on the same channel. Everyone wants to grow close with their partner, but when people realize how difficult this is through communication, they tend to shy away from this type of relational intimacy and decided not connect on a deeper level. Communication allows our partners to know us, who we are, and how we think or feel. We want them to enter our world of feelings so that we can enhance them, support them, help them, or simply enjoy them. Expression of oneself is the ability to give voice to one’s emotional feelings. The only way to do this is through the process of self-awareness. You’ve got to learn how you feel and what it is that you are feeling and then put a voice to it so that the other person can understand it. If you find yourself constantly saying, “You don’t ever listen to me,” you might consider asking the question, “Am I listening to myself?”, because you might be communicating the wrong way. The Pillars of Communication The following charts are exercises to begin learning about you so you can clearly articulate your issues. Pillar #1: How to Express Yourself – Prepare to Talk Step Task 1 Identify what it is you feel (Is it a good or bad feeling?) 2 Ask yourself, “How important is this feeling to me?” (Is it really important enough to talk about?) 3 What is the feeling saying to me? (Something positive, negative, affirming, etc.) 4 What do I want to do about this feeling? (What do I want or expect to happen?) 5 What past experience does this feeling remind me of? (Have I ever felt this before?) 6 Name your feeling (annoyed, happy, sad, playful, jealous, etc. – you cannot explain it you if you cannot name it!) 7 Define the word for the feeling in terms of intensity (Very, a little, not at all) 8 Define the word or feeling in terms of duration (How long you’ve held the feeling?) 9 Define the feeling in cause and context (When the feeling came, where were you were, and in what context?) 10 Define the feeling in terms of its historical context (Have you ever felt this way at another stage in your life? Pillar #2; Scripting Your Needs – Planning in Advance How to Ask for what you want Step Task 1 Say exactly what you mean 2 Send the message effectively by using the right words and action 3 Obey the 10 Commandments of Clean Communication 10 Commandments of Clean Communication Commandment 1 Avoid Judgment Words and Loaded Terms (Words that communicate your partner is flawed, incorrect, and in error) Commandment 2 Avoid Global Labels (Stay away from generalizations and name-calling, as this will shut down communication) Commandment 3 Avoid “You” Messages of Blame and Accusation (Stay away from “always” and “never,” and use “I” rather than “You” statements when talking about your feelings) Commandment 4 Avoid Old History (Stick to the issue at hand and discuss one issue at a time) Commandment 5 Avoid Negative Comparison. (Don’t ask, “Why can’t you be like Frank?”) Commandment 6 Avoid Threats (Threats bring insecurity in a relationship and causes people to be less self-disclosing with you) Commandment 7 Describe your feelings rather than attacking with them. (Your goal is not to make your partner feel bad, but to express how you feel) Commandment 8 Keep Body Language Open and Receptive (You speak louder with your body than with your words) Commandment 9 Use Whole Messages (Use your thoughts, your feelings, and your emotions) Commandment 10 Use Clear Messages (Make sure you’re specific, and do not ask loaded questions of your partner) Exercise: Complete the following exercise by listing which commandments the following statements are violating (some may violate more than one). Statement Commandment Violated You have the biggest stomach in the whole class. Why can’t you lose weight? You have one more time to hang the telephone up on me before I walk out for good! I wish I would have known that you were this stubborn before I married you! I am very upset about the way you treated me yesterday. Why did you totally ignore me? This is just like when you almost had an affair three years ago. You’ve never changed! I can listen and do my paperwork at the same time. My hands are occupied, not my ears! Sometimes I think that you don’t like me anymore. That’s all I have to say. Well, maybe if you weren’t so uneducated, you wouldn’t be so closed-minded! You always decide to call one of your friends on the phone when I say we have an issue to resolve! Yes, I am jealous, and it’s all your fault! You don’t have to hug people like that in front of me! How to Communicate with Your Body The following are steps that you and your partner can exercise to communicate more effectively with your body language: Maintain Eye Contact Lean in Close to the Person Nod and Give Short Verbal Affirmations Smile or Frown, Whichever is Appropriate Keep Your Posture Open. Arms Unfolded, Towards Your Partner Actively Move Away From Distractions Exercise: Evaluate the following scenario: Lynn certainly thinks that she looks like she is listening to her partner. She is seated in a comfortable chair, leaning forward with her arms unfolded, and she is making direct eye contact with him. However, she is neither nodding nor shaking her head, she says nothing, and her face is expressionless. Even further, when her partner finishes talking, Lynn remains in her same posture, gazing intently at him, but not saying a word. Her partner thinks that she is in a daze. What is Lynn communicating to her partner with her body? “Brethren, if a man is overtaken in any trespass, you who [are] spiritual restore such a one in a spirit of gentleness, considering yourself lest you also be tempted.” – Galatians 6:1 Sometimes you are talking to someone who hurt you, but you have to be eager to restore the relationship. However, if the goal of communication is not restoration, there really is no need to talk. There are certain parameters to fair communication that each partner in a relationship should employ. Do’s and Don’ts of Communication Don’ts Be judgmental Expect too much from one session Bring up your mate’s past Butt in or be rude Overstate by saying “you a1ways” or “You never” Lose your temper Pout or give the silent treatment Tell endless stories Compete Think in terms of winning and losing Belittle your male Do’s Be accepting and tolerant Plan to talk again Be forgiving Be courteous as to a stranger Be accurate by saying “Sometimes, “Many times”, To me it seems” Be in control of yourself Be positive, outgoing. and unselfish even when you don’t feel like it Be concise See yourself as an equal partner Be cooperative and not combative Be affirming and build up your mate Exercise: Choose three Do’s listed and list the possible positive consequences of the chosen behavior. Then, choose three Don’ts listed above and list the possible negative consequences of the chosen behavior. Difference in the Way Men and Women Communicate There are a number of differences between the communication styles of men and women. For example, you have a 96% chance of the conversation continuing when the man initiates it, and yet, you have only a 36% chance of the conversation continuing when a woman initiates it. Also, because men have a larger ego, this ego drives a man’s awareness of what is received and what is blocked out in communication. Differences do not have to hinder our communication if we acknowledge, understand, accept, and learn to work with them. Men and women must have positive regard for the differences that exist between them. Men Women Focus on achievement Focus on relationship Focus on solving problems with the facts Like to share their feelings Need an agenda when communicating Tend to use intense adjectives Tend to interrupt more Tend to be more descriptive in conversation Talk more in public settings than they do in private Tend to talk more in small groups Talk loudly and tell lots of stories Talk more quietly with focuses on fewer topics Talk about reports Talk about rapport Assume you are sharing what you want revealed Ask a lot of questions Tend to be competitive in their dialogue Tend to be cooperative Tend to be exclusive Tend to be inclusive Information Intuition Listen for what’s important Listen for details Need time to process their thoughts and feelings Process immediately Say women are too emotional Say men are not sensitive enough Say women talk too much Say men don’t listen How God Broke Down Differences to Communicate with Humanity The incarnation was a divine example of communication that transcended differences. In John 1, the incarnation taught us that communication has to be reflective. The Word accurately described what God was feeling. The word God spoke was so reflective of God that it was God Himself. We have to take time to come up with the words that accurately reflect what i

What Factors of Production can Affect a Construction Project?

There are four main factors of production that can affect a construction project; they are land, labour, capital costs and an entrepreneur. Land is defined as ‘land comprises all naturally occurring resources whose supply is inherently fixed’. [1] Land is a fixed resource as there is a limited amount, and price can vary depending on location. There are four main types of land: Agricultural land denotes the land suitable for agricultural production, both crops and livestock. [2] Brownfield Site/Land are abandoned or underused industrial and commercial facilities available for re-use. Expansion or redevelopment of such a facility may be complicated by real or perceived environmental contaminations. [3] A green belt or greenbelt is a policy and land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighbouring urban areas. [4] An Investment land is purchased at ones own desire, he/she may want to sell it in the near future or to give it to someone as a gift. Land Value Land Value = Aggregate Gross Revenues – Total Excepted Costs Capitalisation RateThe price of land is determined by the use to which it can be put into, however it can vary overtime, but, not only does price change overtime but also interest rates can change very suddenly, and high interest rates tend to put people off in purchasing land. Site values are generally in the range of 20% to 25% of the total cost dwellings, the following formula is used to determine land value: Land Value is also affected by: Supply and demand, the supply of land is fixed although it use can always be altered. The permitted of land use to which it can be put under planning regulations. The location of the land, the more versatile the land the higher price it has. Physical characteristics of land may alter the cost of development. Land is a factor that can immensely affect a construction project as there are many ‘sub-factors’ which can make one bit of land more attractive to the buyer than the other as each type of land has its own advantages and disadvantages. Therefore if the correct decisions are made when purchasing land, it should minimise delays on a construction project. Labour Labour economics seeks to understand the functioning and dynamics of the market for labour. Labour markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income. In economics, labour is a measure of the work done by human beings. It is conventionally contrasted with such other factors of production as land and capital. [5] The employment rate for the three months to March 2010 was 72.0 per cent. The rate was down 0.3 on the quarter and it has not been lower since the three months to September 1996. The number of people in employment fell by 76,000 on the quarter to reach 28.83 million. The number of full-time workers fell by 103,000 over the quarter but the number of part-time workers increased by 27,000. The number of employees and self-employed people working part-time because they could not find a full-time job increased by 25,000 on the quarter to reach 1.07 million, the highest figure since comparable records began in 1992. The unemployment rate for the three months to March 2010 was 8.0 per cent, up 0.2 on the quarter. The number of unemployed people increased by 53,000 over the quarter, to reach 2.51 million, the highest figure since the three months to December 1994. The number of people unemployed for up to six months fell by 52,000, to reach 1.21 million. However, the number of people unemployed for more than twelve months increased by 94,000 over the quarter to reach 757,000, the highest figure since the three months to May 1997. [6] Large construction companies only tend to employ labourers from larger agencies. Due to the fact that agencies are making labourers redundant, therefore there is a fewer number of labourers for construction companies to employ. This can be a large influence on the overall production of a construction. Capital Costs Capital costs are costs incurred on the purchase of land, buildings, construction and equipment to be used in the production of goods or the rendering of services. In other words, the total cost needed to bring a project to a commercially operable status. However, capital costs are not limited to the initial construction of a factory or other business. For example, the purchase of a new machine that will increase production and last for years is a capital cost. Capital costs do not include labour costs except for the labour used for construction. Unlike operating, capital costs are one-time expenses, although payment may be spread out over many years in financial reports and tax returns. Capital costs are fixed and are therefore independent of the level of output. [7] In the construction industry it is very important to look out for capital costs, as some items may have a high capital, but they may have little return. For example purchasing a crane for a construction project would have a high capital but it is a very efficient plant therefore giving a high return. Thus, looking at capital costs can increase the production of a construction project. Entrepreneur An entrepreneur is a person who comes up with a new idea or invention and brings together a country’s resources (land, labour and capital) to take the idea to the marketplace. Entrepreneurs are vital to economic growth and, consequently, to higher living standards. Thus, legislators and other leaders who create economic policies should strive to encourage the innovation and risk taking of entrepreneurs. Enforcing property rights through contract, patent and copyright laws; encouraging competition through free trade, deregulation and antitrust legislation; and promoting a healthy economic climate through Federal Reserve anti-inflation initiatives-these are all examples of policies that empower entrepreneurs to be creative and take risks. The accomplishments of entrepreneurs in our modern world have been possible because of a climate of individual freedom that is so rare in human history. The society that does not honor entrepreneurial accomplishment will find fewer able people engaged in wealth creation. History has shown time and again that economies that appreciate the benefits created by entrepreneurs flourish, while those that devise laws and regulations aimed at seizing the entrepreneurs’ rewards founder. [8] An entrepreneur takes risk and only sometimes does it pay off. Without any risk takers, the construction industry would not move forward. An entrepreneur would perhaps buy a plot of land, and develop it, not only to they boost the construction industry they also employ people to work for them. Therefore, entrepreneurs can enhance the production of a construction project. Task 2 In the construction industry there are three main markets; public, private and third sector. Each of them has their own ways in benefiting the construction industry. Generally, during any recession public sector investment tends to run counter cyclical to private sector investment (as government attempt to soften the blow of declining levels of private investment), although this is largely dependent on the state of public finances. The residential and commercial sectors in the UK are likely to be the hardest hit, particularly any speculative building. However, it should be noted that the sectoral impact of this recession is likely to be slightly different to past experiences, largely because of the effects of PFI. Much public investment is now reliant on private sector financing and this is clearly going to have an effect on the public sectors ability to deliver projects and hence their potential to influence the marketplace. On the other hand, infrastructure activity increased strongly through 2008 as a number of major projects got on site and this growth is expected to continue through 2009. In contrast the outlook for industrial construction is very negative, with manufacturing output in free fall during 2008 and with little hope of a recovery during 2009. Infrastructure demand in London saw the fastest expansion. Another major project to be awarded in 2009 in the UK was CrossRail, with a budget of $30 billion; construction is due to start in 2010. CrossRail, along with the 2012 Olympics, could make the South East of England something of a hotbed of construction activity. However, both projects are not likely to be enough to offset the declines in the property sectors and UK construction spending is expected to decline significantly for the first time since the recession in the early 1990s. [9] From the graph above we can see that the public sector is more consistent than the public sector. The public sector had a large decrease when the rescission hit, this is due to the fact that private sector is independently funded where as the public sector is funded by the government which uses the tax-payers money. The third sector is also funded by the government, but they are non-profit making organisations. Non-profit making organisations tend to help the local area or community and all surpluses are not distrusted but it is put back into the company to help it grow and achieve its goal. The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements. With a growing number of non-profit organizations focused on social services, the environment, education and other unmet needs throughout society, the non-profit sector is increasingly central to the health and well-being of society. [10] Task 3 Any type of construction project requires funding no matter how big or how small, and the source of the funding/finance can vary. These are personal savings, retained profit, other loans, overdraft facilities, grants, venture capital, lottery funding and preference shares. Personal Savings Personal saving has been defined as disposable income minus personal consumption expenditure. In other words, income that is not consumed by immediately buying goods and services is saved. Other kinds of saving can occur, as with corporate retained earnings (profits minus dividend and tax payments) and a government budget surplus. [11] However not many people use this method as a source of finance. The main reason being that not many people earn enough money per annum to be able to afford to fully run a construction project. On the other hand it is perhaps the safest way to get hold of a reasonable sum of money with out any major consequences. Retained Profit When a business or a construction company makes a profit and it does not spend it, it keeps it, and accountants call profits that are kept and not spent retained profits. The retained profit is then available to use within the business or construction company to help with buying new machinery, vehicles, and computers and so on or developing it in any other way. Retained profits are also kept if the owners think that they may have difficulties in the future. This is a more common method used to fund a construction project as it is a more realistic vision, and it is possible to base the size of the construction project on the amount of retained profit that is received per month. Quite often retained profit it used in emergency or sometimes put back into the company to expand it, and even some people do not spend that money at all, the reason for this being is having that retained profit to fall back on to or in other words for a peace of mind. Other Loans In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. [12] Typically, the money is paid back in regular instalments, or partial repayments; in an annuity, each instalment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Long Term (Mortgage) This is by far the most common loan used through out the world. A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan. By looking at the mortgage calculator, we can see that for an average £250,000 house, with a deposit of 5%, also an interest rate of 1.97% and is to be repaid over 30 years that give a total repayment of £880.06 per month, and the interest is £389.90. This is the general idea of a mortgage, it is considered as a long term loan Short Term A short term loan is used for emergencies, money that is required in short notice and paid back in a short time. However interest rates are catastrophically high. We can see that to borrow £200, and pay it back in 15 days, the interest is £35.90 which is very high. The advantage of a short term loan is that is it very flexible, the person borrowing the money has control when they wish to pay. Overdraft Facilities An overdraft occurs when withdrawals from a bank account exceed the available balance. In this situation a person is said to be “overdrawn”. If there is a prior agreement with the account provider for an overdraft protection plan, and the amount overdrawn is within this authorised overdraft limit, then interest is normally charged at the agreed rate. If the balance exceeds the agreed terms, then fees may be charged and higher interest rate might apply. [13] This is similar to a short term loan but, it is not applied for. An advantage of this is that it is great for a short term loan, or that little extra that may be required for buying that television. However if is not paid back soon, then interests rate will rocket. Some major banks or building societies do offer 0% interest on overdrafts but only for a while. In terms of construction an overdraft should be the last resort for funding, and it should not be looked at as a solution. Grants Grants are funds disbursed by one party, often a Government Department, Corporation, Foundation or Trust, to a recipient, often (but not always) a non-profit entity, educational institution, business or an individual. In order to receive a grant, some form of “Grant Writing” often referred to as either a proposal or an application is usually required. A grant is great for any one and everyone, they are given to people and they do not need to be paid back. In most circumstances they are only small sums of money. In addition to this, these grants are only given for specific purposes or given to those who need it. For construction purposes they are given out but only for specific part of the project for example the windows or exterior finishes, it all depends on the client. Venture Capital Venture capital is provided as seed funding to early-stage, high-potential, growth companies and more often after the seed funding round as growth funding round in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made in cash in exchange for shares in the invested company. Venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company’s ownership. Young companies wishing to raise venture capital require a combination of extremely rare yet sought after qualities, such as innovative technology, potential for rapid growth, a well-developed business model, and an impressive management team. VCs typically reject 98% of opportunities presented to them reflecting the rarity of this combination. [14] Venture capitalists are typically very selective in deciding what to invest in; as a rule of thumb, a fund may invest in one in four hundred opportunities presented to it. Funds are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required timeframe which can typically be 3-7 years that venture capitalists expect. [15] Lottery Funding For every £1 that the public spends on Lottery tickets 28 pence goes to the Lottery good causes. These are the arts, charities and voluntary groups, heritage, health, education, the environment and sports. Lottery funders are the organisations that distribute the good cause money to local communities and national projects. [16] This method is finance is only used for larger projects such as the 2012 Olympics games and mainly used as a last resort. ‘The £1.5 billion to be derived from Lottery income itself breaks down into two equal parts: £750 million to be raised through sale of Olympic-themed Lottery tickets, and a further £750 million to be diverted from the National Lottery Distribution Fund, which is the source of funding for non-Olympic distributors.’ [17] Preference Shares Preference shares offer their owners preferences over ordinary shareholders. There are two major differences between ordinary and preference shares. Preference shareholders are often entitled to a fixed dividend even when ordinary shareholders are not. Preference shareholders cannot normally vote at general meetings. The preference dividend is fixed in the sense that preference shares are often issued with the rate of dividend fixed at the time of issue and you might see something like this: ‘4% preference dividend £0.25’ This is a preference share with a nominal value of £0.25 per share that carries a dividend of 4% that is 4% of £0.25 every year for every share issued. If a company has issued 100,000 of these shares at par then it will have received: £100,000 x £0.25 = £25,000 from shareholders on issue It will pay an annual dividend of: £25,000 x 4% = £1,000 each year. [18] This can be used as a finical source; however it can be very complex and very risky. Ideally specially trained people must look at the shares and look for funding. On the other hand, once completed it can be a reliable source depending on the current share prices. Task 4 All sources of finance are different, in terms of cost, and the conditions that are imposed by the provider are also different. Therefore, depending on the type of construction project a suitable source of finance should be chosen. Personal Savings When personal savings are used to fund a construction project, the provider has no worries about monthly payment or even interest, because they have earned their money and it has already been taxed, it can go in for immediate funding. However the bank will need to be notified to allow large sums of money to be withdrawn in one go. Retained Profit Many people mistake this as being similar to personal savings. There are some similarities; the provider will have no worries about monthly payments. But there are some differences, the provider does not need notify the bank to gain access to their own funds, also when they do withdraw their funds, they will be taxed. Other Loans Loans are the most common source of finance used for construction projects. As many people do not have the money to be able to afford to run a construction project. Most loans are given out by a bank or building society, and repayment dates are agreed. For most loans, there are monthly repayment dates; also there are interest rates as well which are added on to the monthly repayments. The provider will require full payments each month, if not they have the power to seize goods that are equivalent to the monthly repayments. If monthly repayments are still not being met, then the bank or building society has the power to re-posses the construction project. Overdraft Facilities The overdraft facilities are not used as a main source of finance, but they are used to aid those sudden expenses that can not be avoided. Once the overdraft limit has been used, interest is charged on the amount that has been taken from the overdraft. Private Finance Initiative (PFI) The private finance initiative (PFI) is a procurement method which secures private funding for public institutions in return for part-privatisation. PFI is also an operational framework which transfers responsibility, but not accountability, for the delivery of public services to private companies. PFI projects aim to deliver infrastructure on behalf of the public sector, together with the provision of associated services such as maintenance Prior to the financial crisis of 2007-2010, large PFI projects were funded through the sale of corporate bonds, issued by the company running the PFI. Since the crisis, funding by senior debt has become more common. Smaller PFI projects – the majority by number – have typically always been funded directly by banks in the form of senior debt. Refinancing of PFI deals is common. Once construction is complete, the risk profile of a project can be lower, so cheaper debt can be obtained. This refinancing might in the future be done via bonds – the construction stage is financed using bank debt, and then bonds for the much longer period of operation. In most PFI contracts, the benefits of refinancing must be shared with the government. The banks that fund PFI projects are repaid by the consortium from the money received from the government during the lifespan of the contract. From the point of view of the private sector, PFI borrowing is considered low risk because public sector authorities are very unlikely to default. [19] Public Private Partnership (PPP) Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer. In other types (notably the private finance initiative), capital investment is made by the private sector on the strength of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by providing guaranteed annual revenues for a fixed period. When choosing a source of finance it is important to select one that is suitable for the construction project. For example there would be no point in taking out a long term loan for a kitchen extension, but it would be suitable for some one whishing to build a house from scratch. Thus, financing for a construction project should be done with great care, and every member in the construction team should be notified of what finance route they are going to take.