Business Ethics Summary

Ethics is one of the oldest disciplines, the object of study of which is morality. The term ethics was introduced by Aristotle, who thoughtfully remarked that ethics “helps to know what to do and what should be avoided”.

Modern ethics is first and foremost, the science that allows to consider human relationships, as well as to evaluate the behavior of people in terms of generally accepted norms. There are professional ethics, which includes a system of moral norms of human behavior, belonging to a particular social group. An entrepreneur should not only know the ethical behavior standards, but also to follow them.

There are so-called professional ethics, and in particular – business ethics, which includes standards of entrepreneur behavior. Entrepreneurial activity is impossible without the numerous contacts with people; it is not designed to work alone.

What is the difference between business etiquette and business ethics? Business ethics is primarily a negotiation with partners; ethics recordkeeping; use ethical methods of competition. Business ethics considered to be the same for businessmen from different countries. Business etiquette – are certain rules governing the work style, manner of communication between firms, the appearance of businessmen, sequence and manner of negotiating and so on.

Business etiquette is formed under the influence of certain traditions and the prevailing historical conditions of the country. Therefore, those entrepreneurs who cooperate with foreign partners, is very useful to have a national business etiquette cooperating party prior to the joint activity.

The issues of business social responsibility, ethics, and environmental protection are on the agenda of modern companies.Social responsibility of business ethics and environmental protection are equally important and urgent tasks of modern business than the financial performance of the organization or the pay of top managers, because the issues of corporate responsibility are able to provide the same impact on business reputation and business value, as well as standard indicators of economic growth.

“Social responsibility is a voluntary effort on the part of business to take various steps to satisfy the expectation of different interest group… the interest group may be owners, investors, employees, consumers, government, society or community. ” (, 05.21.2009)

In our days environmental protection, for some business industries as automotive industry, drives to new technology and innovation. And this is true even for General Motors Company. “As an automotive manufacturer, environmental responsibility is a key issue for GM. It is playing an active role in the development of hydrogen fuel-cell powered vehicles that emit only clean water and offer twice the energy efficiency of traditional engines.” (Alex Blyth, 11.05.2003)

Without being perceived as a sign of economic strength, social responsibility has today the form of corporate civic – a way to create stable and profitable business relationship for all parties, a non-aggressive way, less harmful to work around the community, a friendly way of communication with society. In this form, social responsibility is nothing but a modern and open way of flexible management. Practices and social responsibility programs are more accessible and more interesting for small business enterprises.

Questions emanate as to the ethical considerations of the professional’s liability and how power and dominance should be utilized in service to the society and customer. Most professions have internally implemented principles of practice that associates of the profession must abide by, to forbid exploitation of the customer and uphold the wholeness of the profession. This is not only to the advantage of the client but to the advantage of those belonging to the profession. For instance, an American business may ask an engineer to manifest the safety of a project which is not safe. While one engineer may deny manifesting in the project on moral basis, the business may find a less painstaking engineer who will be ready to manifest in the project for a payoff, thus saving the business the cost of restyling. Disciplinary principles permit the profession to formulate a standard of behavior and assure that one meets this standard, by checking them from the professional body if they do not practice consequently. This permits those professionals who act with moral sense to practice in the cognition that they will not be counteracted commercially. by those who have less ethical qualms. It also maintains the public’s trust in the profession, meaning that the public will continue to seek their services.

One can show integrity in every step of professional life, and that comprises the truthfulness of statements in one’s curriculum vitae. It is common cognition that many people amplify their skills or experience when searching for jobs. They may over-accentuate their role in projects, their participation in certain industries or areas, or their acquaintance with various Information Technology packages. The interviewers can easily catch this foolishness, and thus one will have to face failure at the very beginning by not getting selected for the particular job. Potency-based interviewing is grounded on the premise that past performance is a good revealer of possible future performance. It uses elaborate questions about what one has done to inculcate one’s your past behaviors. Thus, starting with one’s resume, one can demonstrate his/her ethical values in the professional arena. In the professional arena, a person should not adopt unethical methods, such as accepting bribes, trying to hurt the sentiments of associates or not showing respect to the sub-ordinates.

Everyone has an ethical ambit. As a professional, one needs to make sure that one has a firm cornerstone. If one can meet the moral standards as expected of him/her, one is potent to encourage and urge on others and attain career honors and rewards.


Behrman, Jack N. (1988).Essays on Ethics in Business and the Professions;

George, Richard T. de (1999),Business Ethics;

Source by Michael Alexander Newman

Facts on Savings Accounts

Facts about a Savings Account

Savings Bank Accounts are the simplest of bank accounts that one can open. They are meant to promote the habit of saving among the citizens while allowing them to use their funds when required.

Savings Bank Account can be opened in the name of an individual or in joint names of the depositors. The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank.

Public sector banks require a cheaper minimum balance compared to private banks.

Things to Consider While Opening a Savings Account

It is advisable to seek the following information from bank before opening the account:

· Minimum balance requirements.

· Penal provision in case the balance falls below the minimum stipulated amount

· Bank charges applicable e.g. ledger fees

· Any extra fees chargeable

· What other benefits are offered by the bank e.g. loan facilities and banking flexibility

. Document Required For Opening a Savings Account (this might vary from one bank to the other)

· Two passport size photographs

· Legal form of identification e.g. Identity Card, Passport

· An introduction letter that acts as a referee from an existing account holder.

· Minimum opening balance

Some of the advantages of a Savings bank account

· Savings account provides very high levels of liquidity. Every day, any time 24 hours, 7 days a week, you have the rights to withdraw your money via email if the bank is closed.

· There is interest paid annually on savings account and this varies from one bank to the other.

· Savings bank account also provides a saving for the future.

Source by Sarah Mutuku

10 Facts About Motorola

Motorola was founded by Paul and Joseph Galvin and produced one of the first commercially successful car radios in 1930. Today it is a Fortune 100 telecommunications company with an annual turnover of over 22 billion dollars.

  1. Martin Cooper was a project manager for Motorola and invented the world’s first cellular mobile phone back in 1973, weighing in at almost 800 grams it is a far cry from today’s small and sleek handsets. However the first commercially launched handset called the Motorola Dyna-Tac was not made available to consumers until 1984
  2. The Second World War led to many innovations but one of the most useful and iconic was a mobile two-way transceiver or “Walkie Talkie” which was invented by Motorola in 1940. This particular model was called the SCR-300 and was a hefty back mounted device. It was not until a year later that the company mass produced a smaller handheld unit which they called the “Handie Talkie” or SCR-536
  3. Pagers were very popular during the 90s, but Motorola actually made the first one in 1956 which was used in hospitals to send radio messages to specific individuals
  4. Motorola also made the first cordless large screen portable television. This TV had a 19 inch screen size
  5. The company not only invented communication devices which were used on Earth, but also made the radio used by Neil Armstrong to utter the now legendary words “one small step for a man, one giant leap for mankind” back in 1969 on the Apollo 11 lunar module
  6. High definition television is very popular nowadays but a subsidiary of Motorola called General Instrument Corporation actually proposed and launched the world’s first HDTV television all the way back in 1990
  7. In 1999 the company made the iDEN i1000 plus handset, which was the first smartphone to incorporate web browsing capability, email and alphanumeric messaging.
  8. Motorola’s car radios were initially sold to Police departments across America. By 1937 further communication advancements enabled them to launch a two-way version which allowed Police to communicate whilst on patrol
  9. The founding company of Motorola was called Galvin Manufacturing Corporation, which was incorporated on September 25th 1928 in Chicago, Illinois. It was not until 1947 that the company formerly changed its name to Motorola
  10. In 1998, Motorola was overtaken by Nokia as the world’s biggest seller of mobile phone handsets

Source by Louise Goldstein

Samples of Grant Proposals for Single Moms, the Heroines

A single mother is someone who has no one to share the responsibility with regard to raising her child or children. She is the only one who is obliged in providing material, emotional, financial, and physiological needs of her kids.

Most of single mothers have an unstable job or are unemployed. Either of the two has been the problem in meeting the needs and expenses for the home and children. Because of their fast-paced life, some single moms don’t have the time and money to finish their education. Most of them are just renting an apartment and doesn’t have their own house. They are having trouble in paying for other expenses, such as food, clothing, and many others.

According to the U.S. Census Bureau, there are about 20 million children who are now living with only one parent, either mother or father. But in most cases, they are living with their mother. That is almost one-fourth of the children in America. Alarmed and concerned by this statistics, the government had offered various programs for single mothers. Funding assistance is also given to those who are in dire need of financial and educational support.

Is she eligible enough?

To qualify for U.S. government grants, a mother should be a resident of the U.S. for more than three years ahead of the application. If the applicant’s husband has legally abandoned her and the children for more than a year, then she can avail of the money. Furthermore, if her illegitimate husband’s identity is unknown, a single mother is entitled for financial aid. All she has to do is to submit all required legal documents, such as birth certificates of mother and child/children, legal divorce papers, loans, and other legal documents available and are required by the funding institution.

Here are some programs that a single mother can apply to, utilizing samples of grant proposals readily available online:

Housing Assistance

Providing a safe, secured, and comfortable shelter is one of the priorities of mothers. Owning one is also a dream of every single mom. Knowing the fact that most of single moms only rent an apartment or house is a proof that this is an added burden to them. Fortunately, there are many housing assistance programs exclusively offered to them by the government. These programs provide flexible and affordable housing loans and rentals for low or no-income single mothers. In this way, they can still own a house without worrying where to get a down payment.

Educational Assistance

How important is it to be educated and have a college diploma? Well, this is probably the most important qualification in securing the desired job. By receiving a funding assistance, single mothers may now have the chance to go back to school and continue their studies.

Samples of grant proposalsare really a big help in crafting a proposal for financial assistance and scholarship. These may cover housing, books, tuition, transportation and many expenses that are related to college schooling, all depend on the funding organization. These educational programs aim to put single mothers back on the right track to give them a chance to a better career and work opportunity.

With the help of samples of grant proposals for single mothers, they now have the chance to give their children financial support. Their worries may be relieved. Above all, they are now empowered. Start on a writing a good proposal for single moms today!

Source by Erin Millano

The Impact of Exchange Rates

In the current global financial environment, many businesses and countries are feeling the pressure brought down from the exchange rates of certain currencies. The economic recession and even depression in some countries has led to fluctuating exchange rates, affecting some companies negatively and others positively. For example, according to Ed Blocher (2010), the Euro has seen its value drop from $1.59 in August 2008 to $1.26 in March 2009. These drastic ups and downs that the world is experiencing in the financial market are affecting global trading and causing multinational corporations to address issues such as loss in profits and higher costs.

The impact of the recession experienced by many countries in the past few years has significantly affected the business done by corporations that export goods and services to businesses in other countries. The falling value of the Euro from 2008 to 2009 created several advantages and disadvantages. For U.S. companies selling products to firms in Europe, this event represented a loss in sales because U.S. products now were more expensive in European countries. This fluctuation in sales proved to be devastating for some U.S. exporters, whose international sales represented a large portion of its business. To combat this problem, cost accountants need to accurately determine the costs of certain goods so these goods can be competitively priced. From the European point of view, when firms based in Europe exported goods to the U.S., higher sales were realized due to the fact that these U.S. buyers were buying at a lower price. For this reason, a multinational corporation in Europe could have, in theory, been doing more business outside of its borders during a recession than it would have normally. This reality has helped some corporations stay afloat during their country’s recession. With the value of the Euro now rising to $1.35 (, these situations are being pushed in the other direction. By creating a strategy centered on reducing costs and adjusting to the market, a firm that exports its product to other countries can remain profitable in an unstable financial market.

As firms in the U.S. begin to embark on a strategy of globalization, they must take into account the current financial status of the counties they wish to do business in. These global efforts must be orchestrated so that the firm enters the market when the exchange rates favor its business. If that firm prices their product accurately, the move to a more global market could prove to be very beneficial. This strategy has been successfully employed by many corporations such as McDonalds, General Electric, and Apple. On the other hand, the global market presents a number of obstacles that a firm must overcome if it is to succeed. Not only can the state of the market threaten a firm’s expansion, but so can the culture and the ethical standards of the people. In addition, some countries are plagued with corruption, which should deter corporations from entering that market. For these reasons and more, it is essential that a corporation does a significant amount of research before making a decision to conduct business in a foreign country.

The key to successful expansion lies in the hands of the managers and researchers. The information and research obtained by these people can guide the company to make the correct decisions. For example, to be competitive in a foreign market, a firm must accurately price their product. This is the job of a cost accountant, who uses ABC costing or another method to determine what costs will be incurred during production and where a certain product should be priced. Managers can reduce these costs by determining the necessary number of employees and exploring ways to increase productivity. This is exceedingly difficult in a foreign market, which makes it all the more important.

Overall, the state of the economies of targeted countries can affect the sales of a multinational corporation. When the financial condition in these countries poses a threat to the well-being of a corporation, that corporation must reduce costs and price their products accurately in order to compete with domestic firms. This is difficult, however, and “is more time-consuming, costly, and complicated as compared to budgeting for domestic firms” (Blocher, 391). To succeed in the global market, though, these costs must be incurred. For a successful global firm, these costs are significantly outweighed by the gain in profits that the firm realizes.

Works Cited

Blocher, Ed, David E. Stout, Gary Cokins (2010). Cost Management a Strategic Emphasis. 5th edition. (2010). World Currencies. Retrieved March 20, 2010 from

Source by Michael C. White

Why a Document Shredding Company Is Important for Protecting Financial Records

Data loss has become one of the most important topics in the business community. With big brands including Apple and AOL grappling with data loss, it becomes even more important for smaller businesses to think about the security of the data in their possession.

One of the most important aspects of any business is of course the financial information. If you lose this data, then your business is as a good as dead. A document shredding company might not be the first consideration when you are thinking of your financial strategy, but analysts now argue it is even more important than ever to guarantee secure financial management.

Losing financial data is not only a loss to the business, but also to all stakeholders. It can lead to costly litigation, which also damages the reputation of your company. If you haven’t invested in a document shredding company, here are the benefits you are missing out on:

  1. Preventing identity theft: Millions of U.S citizens suffer from identity theft every year. While some of these instances might be mundane, there are others that can lead to financial loss or tragedies. Shredding documents, guarantees that no one can access information that doesn’t belong to them.
  2. Legal requirement: According to the law, you are supposed to protect all customer information that comes to you and this is one reason to ensure all client details are protected. Every employee who accesses client information should have proper credentials to guarantee proper monitoring. The law requires that every business should have a data protection system in place and information shredding forms a big part of this system.
  3. Client protection: If you are to retain your clients, make sure that you protect their information. According to the U. S Small Business Administration (SBA), over 70% of businesses that lose client data end up closing shop within 7 months. To avoid such fate, it is important to protect your customer details by destroying unnecessary information.

In the contemporary business environment, the cliché ‘information is power’ is more applicable than ever. If your firm loses client information, you are on the way down and it might be hard to recover from the loss. Lost information leads to poor reputation, lost revenues and poor credibility. Hiring a competent document shredding company guarantees your clients’ information is secure all the time. This not only enhances your brand’s reputation, but also averts losses.

Source by Kellee Franklin

Contributions by Mazzini, Cavour and Garibaldi to Italian Unification

The Italian unification was a long process, which was achieved by a variety of treaties, as well as a variety of individuals. The most important persons are considered to be Mazzini, Cavour and Garibaldi. But their differences in beliefs and their contributions to the unification of Italy had many factors that had to be considered.

After the French Control in Italy came to an end in 1815, by the defeat of Napoleon at Waterloo, it was replaced by Austrian powers. This was decided at the Congress of Vienna in 1815 , because it occurred to be the best way to prevent any future threats of French invasion. Throughout this time there were different political ideas present in Italy, which created the Secret Societies and led to Revolutions.

The Liberals believed that everyone had the right to free speech towards the government and that the best way would be through a representative assembly or a parliament. Their intentions were mostly non-violent and their followers mainly from the middle-class who favoured a constitutional monarchy.

Another political group were followers of the radicals; who had much more extreme views and were ready to use violence to obtain set goals. They wanted social reforms and fair distributions of wealth. The ones that were members of Secret Societies believed that people should have the right to political decisions and not only the parliament, unless it was elected so by men over the age of 25. Women or peasants did not count as having the same right.

The Nationalists , however, had different aspects which did not contribute well to either the Liberals nor the Radicals. They believed that people of the same race, language, culture and tradition should be united independently, with geographical a boundary which clearly shows each nation, so that no-one would be a subject of control by another nation.

Finally there was also Metternich´s view which was considered to be entirely negative. He opposed to all the other political views and had no intention of accepting any ideas which could spread and undermine Austrian control over Italy. The fact that separate states were ruled by monarchs and that there were no full ´Italians`, it would keep Italy weak, divided, easily controlled by Austria and an Unity would continue not to exist.

These political views expanded and created secret societies which had been established similarly in the 1790s, whose main purpose was to drive out the French, but after 1815 it changed to overthrow the restored monarchs and drive out the Austrians. These groups were viewed as anti-Catholic and dangerous to social order, because of their mutual protection and semi-religious rituals. The revolutions in Spain encouraged Liberals in Naples to take own action which led to a widespread uprising. This did not succeed fully because the King could not defend and establish their wishes. Meanwhile other separate revolts had begun in Sicily to fight independence. Metternich was disturbed by the revolutions because they ruined the settled peace within a country. Even In Piedmont revolutions erupt in 1820 but did not manage to change the constitution of 1770, therefore it would remain an absolute monarchy in spite of the pressures of the Liberals. Until 1831 all revolutions granted minimal changes if any at all. They failed because they were mainly local affairs which included little communication and fewer co-operations outside the limited areas. Co-ordination was non existent because the aims of each secret society or revolutionary group was based differently.

A member of one of the secret societies ( Carbonari) was Giuseppe Mazzini who was a true Nationalist and founder of the new secret society `Young Italy´. Mazzini worked for the independence and unification of Italy and based his beliefs upon the existence of God, equality of men and races each individually and the progress of mankind. He wanted to replace the Christian religion with a straight forward democracy and lead decisions made by the people, not by God. This included the creation of his new society.

In 1833 Mazzini planned a revolt on Piedmont , in which he based himself in Switzerland and collected Polish, German and Italian refugees as volunteers for an own army. The military command was entrusted to Ramorino from Genoa. He got money to raise and organize the army but instead he misused it and returned to Mazzini without the money and without an army. Now all that was useful were the ones left of Mazzinis collection, but before departure to Piedmont the Swiss authorities disbanded the German and Polish volunteers, which left fewer than two hundred men. This way it was impossible to precede the expedition.

His dream of a United Italy could not be realised in the 1830s but it did have an important event in 1833 when Giuseppe Garibaldi got involved in a Revolt led by Mazzini in Genoa. It failed once again but the young man managed to escape before his trial and death sentence. It is said that Mazzinis ideas were too intellectual and impractical for a real basis for revolution. He had a major weakness in his written works, which consistent of incoherency and lack of attention towards the needs of peasants and working reforms in the countryside. The highest point of his life was after his return in which he became the head of the Roman Republic (1849).

Another important character for the unification of Italy was Count Camillo Benso di Cavour. He was the author of the publication `Il Risorgimento´ in 1847, after Charles Albert freed the press from censorship, which was used to publicise his political ideas. In October 1850 he was appointed Minister of Agriculture, Commerce and the Navy which allowed him to practice his economic theories and make free-trade treaties with Britain, Belgium and France. He then also became Minster of finance in 1851 but already in 1852 he resigned from the government and went abroad to France, meeting with Louis Napoleon. Though meanwhile in his absence a political crisis broke out in Piedmont when new rules about civil marriage were passed out and the Church complained heavily. As the Prime minister resigned Cavour was chosen as his successor, he agreed on this and became the new prime minister in 1852, dropping the civil marriage bill. He remained in this position until his early death in 1861.

Even if he expressed a vague wish of the Italian Unification in the 1830s, he did not take his aims realistically until the 1860s. His main focus had always been to drive out the Austrians and establish a bigger Kingdom of Piedmont, but the overall Unification was a considerable thought that began to have a slight importance to him, much later.

His decision to join in the war with Russia was affected by two main factors, which were considered right after he took office and the Crimean War started. One reason was the fact that he could ally with two of the Great Powers; Britain and France, which would give support against Austria. The other reason was gaining a seat at the Peace Conference which would give him the possibility to negotiate in a wider range and increase his reputation as well as from Piedmont. He did achieve this in 1856, where he negotiated at almost equal terms with the Great Powers and kept in touch throughout the next two years with Napoleon. The meetings were kept secret, especially the invitation to Plombieres, where Cavour and Napoleon discussed the possibilities to start a war with Austria. Throughout the discussions no major reason could be found, to start this war, so Cavour wrote a speech for Victor Emmanuel, that was presented at the Opening of the Parliament in 1859, which was anti-Austrian. It should provoke Austria into starting the War, because Napoleon believed that Austria would have to appear as the aggressor. In April 1859 the Austrian set an ultimatum to Piedmont to demobilize her army, and she had already mobilized an army in northern Italy, but due to her bad economic status, could not afford to keep it ready for very long. At this point Cavour had accomplished his goal and refused Austrian demands. Austria declared war on the 29th of April 1859 and a short but violent war started.

It lasted only 7 weeks because of the unorganized slaughter that was creating a further mess. On the 11th of July 1859 Napoleon made a truce with Austria without consulting Cavour. Piedmont received Lombardy and Austria still kept Venetia, which meant that they stayed a powerful influence in Italy.

While Napoleon and Victor Emmanuel tried to transfer Savoy and Nice to France after treaties and the armistice of Villafranca, there were many who questioned the purpose. One of them was Garibaldi, who was born in Nice and was a representative of the Piedmontese parliament who was currently preparing a military expedition in order to prevent Nice being taken over by France. But then he got diverted by an outbreak of revolution in southern Italy.

Garibaldi was a soldier and leader of men which follwed his goals in a clear, and simple way. In 1931 he had been under the influence of Mazzini but then he decided to abandon his republican ideals and follow Victor Emmanuel II becoming a monarchist instead. He constantly changed his nationalist beliefs but still remained focused on the same aim; of wanting to unite Italy and send out the Austrians. Also he wanted Rome and Venetia and Naples and Sicily to be a part of the Unification. After having led an Italian legion of guerrilla fighters in Uruguay, he decided to go back home , when he heard rumours of a revolution in Italy. He immediately offered his military services to the King of Piedmont, which denied his offer. The reason for Garibaldi to act this way, was due to his changement from a republican to a royalist. He believed that the King of Piedmont was the only one with the necessary resources to defeat the Austrians and unite Italy. This change was the end of a good relationship between Mazzini and Garibaldi.

The Roman Republic in 1849 was declared after the Pope refused to make changes in Rome, and had to escape to the south. The Republic was led by Mazzini and two other politicians which had been governed mainly under his influence. As Garibaldi reached Rome, Cavour mistrusted his intentions and asked the French for help which then intervened. Garibaldi fought with his men, without achieving his goal and travelling back to the south. In which he took possession of Palermo and also the island of Sicily. His aims at that time were to raise an army to conquer first Naples, then Rome and in the end Venice. During this time Cavour tried to stop Garibaldi, because he feared that Britain and France would see his revolts and actions as a threat to their countries and intervene even against Cavour. He asked Victor Emmanuel to command Garibaldi to stop his actions, which happened, but then he contradicted himself by saying Garibaldi should ignore the previous command. He slowly fought his way up to the city of Naples and discovered that the King had left, so that Garibaldi could rule as a dictator over the city.

Though he could not advance any further because the way was blocked by a Neapolitan military stronghold in the north. His plan was to advance through the Napal states onto Rome and therefore complete the Unification of Italy. This process of planning took a longer period of time which gave Cavour the possibility to act in advance. His major fear was that due to the followers of Garibaldi, which were mostly Mazzinians, the church and the Pope in Rome would be in great danger, and this could also affect France and the rest of the Catholic Europe. The only way for Cavour to stop Garibaldi before he reached Rome, was to send troops from Piedmont through the Papal States, with the excuse that the Pope could not deal with a revolt in his territory. When Victor Emmanuel and his troops reached Naples, there should have been a brutal ending, but instead it became a harmless meeting in which both sides marched friendly through Naples. At this point Garibaldi and his troops were disbanded and Victor Emmanuel and Cavour believed that Garibaldis political job was done, since all of Italy was united except Rome and Venetia.

In 1862, he returned to Sicily from Caprera and collected over 3000 volunteers to set up an army for the conquest of Rome. This attempt failed and Garibaldi was sent back to Caprera, but already in 1867 he again set up an army when the French withdrew from Rome. Again he got defeated by Italian troops and by the return of the French.

After the defeat of Napoleon III by the Prussian army, Garibaldi offered his service to the new French republic and with a little hesitation got elected to the French National Assembly. Meanwhile the French troops had to be withdrawn from Rome to help at home against the Prussians, which gave Italian troops in 1870 the chance to attack and finally capture their capital.

The importance of all three men contribution to the unification of Italy is unquestioned. Mazzini seen as a true Nationalist and creator of the ´young Italy`, which used democracy instead of Christianity, longing for the Unification and going beyond the middle class, to the actual essence of Italy. Cavour who fought for Piedmont, rather than for the unification of Italy, helped in spreading Italian influence over different nations and therefore was responsible for driving our major French influences. Garibaldi was the hero, seen as a humanist at last, changing his beliefs but remaining true to his main goal; the unification of Italy, which he achieved at last. Their Contributions were of different importance, but put together, led to the overall Unification.


another history essay on Italy click here

Source by Paul Kennard

The Obstacles to Wealth Creation

Financial freedom is probably near the top of every person’s wish list. No one wants to spend his entire life working a job he doesn’t like simply because he needed the money. However, despite the unanimous opinion that this type of freedom is something to be sought after, majority of the people living today are not working towards it – either because they don’t know how, or because they don’t think it is feasible in their own lives.

But financial independence is always a possibility to those who understand the process of wealth creation. The formula is simple: earn more than you spend, and save the rest for future investments that may lead to passive income. This simple formula is easier said than done though. There are plenty of obstacles that may hinder you from reaching your goals. If you want to be wealthy you have to know what these obstacles are and you have to find ways to avoid them. Here are a few obstacles that you’d best avoid:

1. Debt

The most destructive force to your financial health is bad debt. Many people have lost their homes and other property to bad financial decisions that involve taking on large debt. The process of wealth creation can’t begin as long as you have debts. It’s just not possible. The first thing you have to do, before you even dream of financial freedom, is to get out of debt as soon as possible. The longer you stay in debt, the farther you will be from your dream. Debt is a cancer to your financial well-being, and similar to a medical illness, prevention is the best cure – just don’t get into debt. Clamp down on your expenses; take a second job; cut up your credit cards; do what you have to do in order to avoid debt.

2. Luxury

Advertisements everywhere will try to convince you that you deserve to stay at the most expensive hotels, drink the best champagne and wear the most expensive jewelry. Don’t be silly. The only people who “deserve” such extravagance are those who can afford to throw money away because of the ridiculous wealth they’ve built. Wealth creation begins with discipline. You have to be able to delay gratification. Every day you will have to choose long-term and permanent financial freedom over transient pleasures. Only then will you have a shot at financial independence.

3. Saving Money for Its Own Sake

Have you ever met a person who became wealthy just by saving all his money in a bank? Great entrepreneurs save money in order to be able to afford ventures that make money. The process of wealth creation is supposed to create wealth, not keep wealth in a bank. You can achieve financial freedom by turning your money into assets that can serve a future purpose. The value of money itself decreases over time. You have to turn that money into an investment that increases in value, like real estate in a developing area or stocks of a rising company.

4. Vice

Vices are not only expensive; they’re also bad for your health. Let’s say you smoke a pack of cigarettes a day and each pack costs $5. In a year, you’d have spent $1825. In 20 years, you’d have spent $36,500, not including the medicine you would have spent on the ill effects of such a vice. That is money that every single person who doesn’t smoke saves just by not being involved in one vice. Just imagine how much you would save if you were able to eliminate all your vices. Financial freedom is achieved easier by people free from such expenses.

5. “Get Rich Quick” Schemes

Wealth creation is a long process. It’s not just a matter of “earning” a lot of money. It’s also about developing the right values over that period. It’s about learning through experience. It’s about overcoming obstacles. People who like short-cuts may hit the jackpot and earn big, but chances are, they’ll lose the wealth they gained just as quickly. Even worse, their eagerness to “get rich quick” might make them vulnerable to swindlers. If you encounter a deal that sounds too good to be true, chances are, it is. Stay away from “get rich quick” schemes.

Wealth creation is a process that takes time. Don’t rush through it. Learn to love the process. Cherish every experience. The path to financial freedom is one of the most exciting journeys you’ll be making in your lifetime. Try to recall your high school or your college experience. It may seem like a long time while you’re there, but as soon as it’s over, you can only hope to do it again. One day you’ll be looking back on this process with joy and appreciate every setback that taught you a lesson, every deal that built a business relationship, and every dollar earned honestly. Enjoy the process and you’ll build great wealth in no time at all.

Source by Clarice B Garcia

South African Stokvel – Creating A Trustworthy Environment For Saving Money

“Stock fairs” had it’s being in the Eastern Cape in the early 19th century.

What started as a simple savings solution has today grown into a fascinating range of stokvels for every possible need in life, ranging from joyous occasions such as the Christmas stokvel (saving for a generous December food shopping spree), to a hybrid of the stokvel, which lends financial and social support to families.

A Stokvel is group savings scheme, where members contribute a fixed amount of money to a common pool monthly. Money is drawn either in rotation or when a particular need or occasion arises.

A stokvel is a group of friends who contribute an amount each month, say R 500.00. In a stokvel of 12 friends, each person gets one chance a year to take home the month’s collected cash. So once a year each person in the group gets a lump sum of, in this case, R6 000.00.


Making Social Cents? – complexities of the cultural, social and financial interface of this thriving industry.

Stokvel is not necessarily limited to only poor or rural South Africans. In fact, executives in urban areas belong to highly sophisticated stokvels that generate significant income.

The total amount invested in stokvels annually by this sector is estimated to be R1.3-billion.

“In this ‘ubuntu society’ people look after each other’s needs and share resources. Trust is the other side of the ubuntu coin, which is probably best translated as a common humanity,”.

Stokvel is a savings scheme by group of people who save a regular amount each month, a stokvel will enabled you to amass wealth while avoiding the debt trap. Banks charge high fees and high interest rates, but stokvels have none of these disadvantages.

Urban legend has it that stokvels are so addictive that members sometimes save enormous amounts relative to their earnings.

Stokvels is a “traditional” investment vehicles.

Born from a need to create a trustworthy environment for saving, the stokvel has gone beyond the role of simply “making life easier”.

Stokvels are about economic empowerment, enabling enterprises to flourish; it’s about job creation and about developing closer relationships.

“Although Stokvels are regarded as somewhat traditional and some would say outdated social structures.

Research study into Stokvels examines this financially significant South African phenomenon. Why should we be interested in Stokvels? Estimates are that the total investment in Stokvels and Burial Societies in South Africa reach the R1.3 billion mark.

Stokvels are not just the domain of a few – very few industries are not “touched” by stokvels – directly or indirectly. Stokvels are all about group affinity and networking – the group rather than to an individual. They provide a powerful and cost effective distribution network which yield great influence and spending clout.

Many of the strong leaders in stokvels are highly regarded and respected leaders in their community. The brands or corporations they endorse are therefore more likely to be embraced by their community.

Reasons for belonging to a Stokvel:

There are many and varied reasons for belonging to a Stokvel, ranging from a strong form of social collateral which satisfies social needs, to a form of self-discipline and commitment which enables people to have a lump sum to use for a specific purpose or to grow their money.

Many stokvels members emphasise the importance of the social prestige of belonging to a stokvel (members are invited to join one – they cannot just go and join up) and the fact that this membership reflected common values and good understanding.

Understanding the communities these informal schemes operate in:

The communities in which Stokvels operate are dynamic – there is a strong sense of Ubuntu. Poverty and apartheid have weakened the social fabric of many poorer communities and there is a strong sense of a need to pull together and create solutions.

Savings instruments for the poor tend to be time and event bound and this influences their capacity to save and invest in the future. There is a common misconception that the poor do not save, however they need to accumulate large lump sums of money for a variety of reasons, such as:

School fees Feasts (celebrations such as weddings, coming of age and funerals) Specific item (usually furniture or appliance) Monthly cash flow is not enough to purchase these items without savings. What is important to note, however is that the poor DO SAVE, but in a very different manner. It would appear that their saving is Connected to a specific time Purpose or event driven With specific intent.

Consequently, this leaves them vulnerable to unplanned occurrences and events. It is important to realize the extent to which the poor have very complex financial lives – sustaining survivalist business and entrepreneurial business are not easy. For many households juggling their grants and the demands of many family members on a small budget is a challenging and complicated process.

Stokvels and other informal financial instruments are readily accessible, well understood and appropriate. Stokvels rely on

(a) the principle of reciprocity and

(b) mutual trust for sustainability If you get the support of one member, you have the support of all, BUT the converse is also true:


Enjoy proximity to their clients Have personal relationships with their clients, therefore detailed and intimate information about their clients Maintain good speed in transacting business. Are more cost effective in financial intermediation – in mobilising and deploying funds.

A critical part of this success is the breaking of a cycle of vulnerability and poverty which leaves people literally living from hand to mouth.

Stokvel Savings represents security and creates a chance to dream.

Source by Gerald Crawford

Return-On-Asset Ratio, Effects on the Loan Portfolio and the Investment Portfolio, and the FDIC

Low Return-on-Asset Ratio

It is always important for management to monitor all of the company’s finance, including income as well as expenses on a regular and frequent basis to make decisions on where to invest the company’s funds.

A low return on assets ratio indicates that unsuccessful or insufficient management of interest rate margin, noninterest income and expenses, and loan loss reserves is present. Banks have been focusing to receive a high portion of net income from noninterest income by providing other services, such as insurance or brokerage. Fees are another source of noninterest income for banks. When noninterest expenses (such as overhead or advertising expenses) exceed noninterest income however, then the return on assets declines.

A low return on asset can also be caused by high loan losses. This usually happens when banks offer loans to people who default on their payments, especially in times when economic conditions are less favorable. The net interest margin of a bank is impacted by many different factors including, but not limited to: interest income, non-interest income and expenses, loan loss reserves. Poor management regarding any or all of these factors result in a low net interest margin and low (if any) net income.

The relationship between the ROA and ROE

Return on assets and return on equity are both measures of a bank’s performance. As mentioned above, the return of assets for a bank is impacted by factors of interest income, non-interest income and expenses, loan loss reserves. Poor management regarding any or all of these factors result in a low net interest margin and low (if any) net income. The difference between the ROA and ROE of a bank is that return on equity depends on the return on assets and in addition depends on the financial leverage of a bank (which is multiplied by the bank’s return on assets to equal the return on equity). There is not a direct relationship between the ROA and ROE. While the ROA high, the ROE may be a lot lower and still decreasing.

Effect on the credit decision in the loan portfolio and the investment portfolio

Credit decisions in the investment portfolio from the stand point of an investor should be based on a bank’s return on assets to measure its performance, and also on its return on equity, which is closely related to the bank’s financial leverage. The lower a bank’s financial leverage, the higher the amount of money the bank simply holds in reserves and does not loan out to people or invest. As an investor, it is important to know that a bank holds enough money in reserves to pay out interest to its investors. The lower a bank’s return on assets the more risky it is to invest in any securities issued by that bank.

Credit decisions in the loan portfolio from the stand point of the bank should not be too conservative, meaning that the bank will only give out loans to people with a low risk of defaulting on loan payments, which would result in a low interest income and lower bank’s ROA. However, loans should not be given out to everyone either, because the risk would be higher to incur loan losses, which would lower a bank’s ROA as well. Thus, in times of less favorable economic conditions, banks should be more conservative of providing loans to people and vice versa to minimize the risk of incurring loan losses due to payment defaults by borrowers.

From the stand point of the FDIC:

Why is the capital position important?

The capital position of a bank is important from the stand point of the FDIC, because capital is an indicator of a bank’s strength and the higher a bank’s capital (leaving all other factors equal), the lower the risk of that bank causing the consumer losses. The Federal Deposit Insurance Corporation insures consumers up to a certain amount of their funds in case a bank goes out of business or files bankruptcy. Thus, a bank’s capital position is important to the FDIC, how likely it is for that bank to go out of business (for example) and make the FDIC pay the banks consumers’ funds back, which the FDIC obviously wants to avoid.

Source by Nicole Elmore