ECONOMICS Essay Example | Topics and Well Written Essays - 500 words - 1

ECONOMICS - Essay Example An organization will have to pay higher interest coverage for their long term debts. In addition to this, the charges for bank overdraft and short term borrowings will rise which will affect the working capital balances adversely. If the company has leased manufacturing instruments, it will have to pay a higher lease rental. Since an increase in the interest rates will tend to squeeze money out of the economy, employees might demand higher salaries as well. According to Bloomberg, the yield curve (as on May 8, 2009) predicts the rise of interest rate in near future. This means that organization will plan to maintain its profit in future. It can provide discounts to enhance the sales volume to make reserves for the dry season ahead. It can restrict research and development activities and curtail unnecessary costs since revenue generation might see a downfall. Cars and trucks are costly commodities and are generally bought by customers if they get convenient borrowing schemes. This makes interest rates a decisive factor in determining the sales. A high interest rate means that customers will have to pay a higher installment (EMI). This has greater implications for earning assets like trucks; customers (generally transporters) will postpone their present demand in anticipation of lower interest rates in future. This translates to the fact that consumer demand for both cars and trucks will come down. The main monetary items that affect the operations of a business are the cost of goods sold and general and administrative expenses. Cost of goods sold will depend on the cost of raw materials and the wages of the employees. The company might have to incur advertising and selling costs as well. For purpose of accounting, the company will have to incur depreciation expenses. The tax structure of the country where the company operates is an important determinant of operating costs. A high tax bill will increase the financial

Differences in social relationships on the Internet and conventional, Essay

Differences in social relationships on the Internet and conventional, face to face relationships - Essay Example However, the human need to be connected to others is always present, and so people have turned to the internet, specifically, some social networking sites and applications to fulfill this need in the midst of their busy schedules, as family and friends have become more accessible and available in just a click of a button. It also offers a myriad of opportunities for meeting more people, relaxing with online games, sharing pictures and videos and an outlet to express innermost thoughts and feelings to share with others. McCown et al. (593) conducted a study about people who meet people via the internet and found that in general, they tend to be truthful in their interactions although they initially did not reveal their true names and were careful about their anonymity. Eighty percent of the subjects of the study formed casual or friendly relationships while 6% formed intimate or romantic relationships. About a third of the subjects made offline contact with 40% conversing by phone and 33.3% actually meeting in person. It was also found that people who established friendships on the internet take appropriate precautions to protect their identities but find the medium a safe and effective way to interact with others and to expand one’s social circle. Some people, though, have kept private information about themselves private before getting involved in social networking sites. They go on their lives keeping things to themselves, or have the option to share them with others by verbally divulging such information. Control of information is greater and confidentiality is better assured under the shield of anonymity. In another study by Stephure et al. (658) on online dating and engaging in romantic relationships via the internet, it was found that involvement in online dating increases rather than decreases as people get older due to their diminishing satisfaction with conventional establishment of romances. The internet has become a convenient method of findin g a potential life partner. Stafford, Kline and Dimmick (662) remark that technology users think they can maintain relationships online especially those they have developed offline initially. At the time of their study (in the nineties) when video chat was not yet available, small and quick emails were used to keep in touch as opposed to letter writing. They also comment that some people tend to treat interactions with computers as social encounters so unconsciously, they also expect the rules of social interactions formed offline to also apply online. Colgate and Smith (140) have studied business relationships maintained online and found that the mode of interaction makes little difference to the strength of the relationship. Trust is established in the existence of good one-to-one relationship with the business partner. They also found that â€Å"the effects of the relationship banker are dependent on whether the customer uses primarily the branch versus the internet† (Colg ate and Smith, 40). With the coming of Facebook, old friends have been reunited, families have grown closer, and people have been updated with each other’s lives. Writing one’s status message helps keep others aware of the state of emotions or life situation a particular friend is in and may write their own comment to show support, or mere acknowledgement of