Financial Planning (Insurance) Case Study Essay

Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p. a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p. a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser. Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p. a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p. a. after fees and taxes. They are living on a semi-rural property which is valued at around $750,000, but they currently have a mortgage of $150,000 as a line of credit. They are paying approximately $1,000 per month as interest-only payments. Their other personal expenses are around $40,000 p. a. and they spend an additional $15,000 p. a. on holidays. Aside from private health cover, car, and house and contents insurance, the only personal insurance they have is the coverage provided in Allison’s superannuation fund. They do not have a will or any powers of attorney but they want to ensure they have sufficient money for their grandchildren (now aged 6 and 4 years) to attend university. They estimate they will need to accumulate approximately $120,000 (in today’s dollars) over the next 12 years to pay for this. Allison wants to work for five or six more years and they wish to pay off the remainder of the mortgage over that time. She also wants to increase the amount of money in both her and Simon’s superannuation. When she retires she believes they will need $40,000 (in today’s dollars) for their living expenses in retirement, but Simon intends to continue working part time and estimates he will earn $20,000 p. a. They intend to use Simon’s income to fund any holidays. Aside from their superannuation assets, they have $9,000 in a bank account for emergencies earning 4% p. a. , $15,000 in a term deposit earning 5% p. a. and $12,000 in a cash management account earning 5. 5% p. . They are not happy with the taxation implications of these accounts, as any interest earned on the term deposit and cash management accounts seems to go in tax. You ascertain that they both have balanced risk profiles. Required: You are required to provide written responses to the following scenarios and questions, either in short answer form or using bullet points (or both). The following attachments are included : †¢ Sample Financial Services Guide (Personal Advice) †¢ Sample Fact Finder and Risk Profile Questionnaire †¢ Sample Ongoing Service Options – Establish Relationship with Client You are preparing for an initial interview with Simon and Allison Callahan. a) Give some thought to the sort of things you would cover. Include any legal requirements and other documentation which may be helpful in the interview. For the initial interview with the clients I would cover what Azza financial services stands for, their commitment to the customer and any legal implications, go over the financial services guide (send out with letter before hand) and privacy policy and compliance. I would also make the customers aware that the information they are providing is to be used solely for the purposes of assessing their situation to help them get to a better financial position. I would allow the customers to do most of the talking, recording their responses in a fact finder, and ask the client to complete a risk profile questionnaire to get a feel for what their financial position is at the present, what kind of expectations they have on Azza financial services, how much risk they are willing to take on and if there is anything about their situation that might prevent Azza financial from providing advice to the client. )How might you ask the client to prepare for the first meeting? By sending a confirmation letter indicating how long the interview will likely be, the purpose of the interview and what is the outcome intended, advising the client if there are to be any fees paid, providing the client with a list of documents to bring (eg current insurance policies, sup er statements, current investment schemes, income and expenses, latest tax returns, valuations of assets such as property, bank and credit card statements. ) To establish a relationship with Simon and Allison, what strategies might you use to build rapport during the interview process? †¢ offer food or drink (eg coffee, biscuits, tea, water) †¢ monitor client body language and engage in similar movements to make them feel more comfortable †¢ ask open ended questions to show clients you are interested in the personally and want to hear what they have to say. d)What are the four points you must cover when presenting a Financial Services Guide? Fees and charges = explain what fees might be applicable, including benefits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented †¢ Products = outline the features of the products and services being recommended †¢ Complaints Policies and Procedure s = make sure to completely explain the procedures for handling customer complaints †¢ Relationships = explain any relationships which might influence which products are recommended or provided e)List the type of fees you could charge the clients. What are the benefits of explaining these fees to the Callahans? Types of fees which could be charged to the clients if they choose to implement the prepared plan are: plan fees (often charged regardless if plan is accepted), commissions, entry fees, management fees, account keeping fees. The benefits of explaining these fees to the clients are that there will be no nasty surprises and they will know what they are getting themselves into from the start. It also provides protection for the advisor in the event that the client deems something unreasonable. In other words, there will be no misunderstandings about the possible cost of advice. )Nominate the range of financial products and services you will be providing advice in. Name the benefits of explaining these to your clients. The financial services and products which I could be providing advice on range from simplistic things such as bank deposit accounts to general and life insurance, complex and simple investment schemes, general and specialized superannuation schemes, estate planning issues (although a lot will be directed to a solicitor if I am not qualified to provide advice on that particular area, the same goes with taxation). The benefit of explaining these to the client is that they will be more aware of what it is Azza financial services can help them with, and if they will need to be involving any third parties to complete their requirements (eg accountant or solicitor). It also takes away any misconceptions as to the outcome of the advice provided and puts everyone on the same level expectation wise. The clients also may not have been aware of particular products and services offered which once explained may change their needs and requirements which might have not previously been considered by the client. )Outline the three steps your clients should take if they have a complaint or dispute prior to contacting the ASIC. †¢ Clients should first contact their advisor to make sure that their disatisfaction is not due to a misunderstanding or something which can be ammended to their satisfaction. I would endeavour to solve their complaint within 3 working days. †¢ If the clients are still unhappy , they should lodge a formal complaint with the liscensees internal complaints process and allow appropriate time for this to be acted upon. If the clients are still unsatisfied with the outcome they may then contact the Finance Industry Ombudsman Service (FOS) for complaints involving losses of less than $500,000. FOS first trys to negociate and outcome between the involved parties, if this is not possible the matter is passed for formal assesemnt by a panel. FOS is free to clients and the decisions it makes are law to the liscensee. 2-Identify Client Objectives and Financial Situation a) What techniques or tools could you use to gather further information about your client’s goals, objectives and financial situation? Fact finder †¢ Financial documentation – tax returns, statements, scheme overviews etc †¢ Use of open ended questions †¢ Diagnostic questionnaires †¢ Risk profiling b)Using your case study, complete the attached Fact Finder with as mu ch information as you can. Remember that this document is used to collect current information as well as identify any issues, problems or constraints that may be relevant in developing your advice. See Fact Finder i)From the scenario in your case study, write down one or more specific financial goals for the generic needs provided. Wealth creation for a specific purpose |Start increasing Allison and Simons Super balances ($160K and $47K) | | |Pay for grandchildren’s university in 12 years – estimated needed | | |$120K in today’s dollars | |Wealth protection |Take out Personal insurances to avoid eroding savings if something | | |unforeseen happens – income protection, trauma, evaluation of current | | life and TPD | |Debt reduction |Pay off IO mortgage of $150K in 5 years | |Tax minimization |Save on tax on bank accounts/term deposits | | |Possibly downsize family home and move mortgage to investment property| | |to save on tax | |Superannuation |Start in creasing Allison and Simons Super balances ($160K and $47K) | | |and evaluate suitability of current funds | |Investment Planning |Possibly purchase Investment property to produce another income stream| | |and save on current tax | | |Look into other investment options to diversify current wealth | |Estate Planning |Establish will and power of attorney with solicitor | c)Write down a line of questioning that you would use in the initial interview to increase your understanding and obtain further clarification of the client’s goals and objectives. Use open-ended questions starting with What, How, When, Why and Where. †¢ Apart from what we have already discussed, tell me about any other goals, long or short term that you might have. †¢ What do you plan to do when you retire? †¢ What is your current state of health? Eg do you smoke, are you aware of any issues that could affect your ability to work? †¢ Simon, what sort of duties do you perform at work? (- for insurance purposes we need to ascertain what type of work Simon is doing in order to now which category he fits, A/B/C? ) †¢ What are the contact details of your accountant? (- Financials) †¢ If you have a solicitor, what are their details? power of attorney, will) †¢ What are your plans/goals in relation to the planning of your estate? †¢ Tell me what other possible financial details you could have overlooked in filling out the fact finder? (- no credit cards? No shares or any investments outside of super and regular bank accounts? ) †¢ What level of cash reserve do you feel comfortable keeping liquid for emergencies, and are you expecting to receive a lump sum of money in the future? †¢ What are the premium details of your current life and general insurance policies? †¢ When are you considering downsizing the family home, if at all? d) What action would you take immediately after the first meeting? Immediately after the first interview I would Clearly write down everything which needs to be investigated or researched, in relation to what types of products, tax issues, possible strategies, the sources of information and a timeline for completion. This is so that I can prove I have been compliant with the corporations Acts requirement of investigating the ‘subject matter of the advice’. I would ask the clients to sign an authority accepting the preparation and research of drawing up a financial plan and agreeing to pay any fee which may be incurred as a result of this advice. e) Simon and Allison have a ‘balanced’ risk profile. Complete the sample Risk Profile Questionnaire to reflect this. See risk profile 3- Analyse Client Objectives & Financial Situation Will Simon and Allison’s current financial circumstances and other concerns meet their objectives without your assistance? a) Why/why not? No, Simon and Allison’s current financial set up is not adequate to allow them to meet their goals and objectives. This is because they are note contributing enough in their superannuation to achieve their desired balances, they do not have any estate plans in place, their current bank accounts are leaving them paying excess tax, they are not sure how to structure their expenses in order to reach a comfortable position upon retirement in 5 years time, and their personal insurance are grossly insufficient to keep them in their current lifestyle and meet expenses should something happen to one of them. ) List the assumptions you made. †¢ Allison and Simon do not have current solicitor whom they have talked about creating a will or power of attorney with †¢ Allison and Simon are of average intelligence and have not had much to do with Financial planning services in the past. †¢ Allison and Simon do not know much about investment schemes, Superannuation regulations, Life insurance or Taxation †¢ Allison and Simon have used an Accountant in the past to prepare their yearly tax returns †¢ The average expected rate of return is 6% †¢ Expected CPI is 3% and current tax rates have been used. c) Reference information sources that you have relied on in forming your view. RG146 training Australia DFS course material and scenario †¢ Australian Taxation Office website (www. ato. gov. au) †¢ Financial Planning association website (www. fpa. asn. au) †¢ Westpac and BT Financial group case studies (internal) 4 – Develop Appropriate Strategies & Solutions a) Describe two research processes you can use to gather information about products and services you recommend to your clients. †¢ Independent research houses (eg Standard and Poors and Morning Star) †¢ Internet sear ches eg ASX, AFPA, ATO etc †¢ Product disclosures, rankings, past performance of companies, Financial review newspaper etc Refer to your case study, Fact Finder and Risk Profile Develop a strategy for each of the following points for Simon and Allison. Describe each of your strategies in terms of key characteristics, advantages and disadvantages. b) Please address Allison’s insurance requirements. Your response should include a brief description of each type of cover and actual amounts recommended. Include calculations and explanations of amounts. †¢ Term Life: – term life insurance provides a bulk payment to the beneificiaries of a person upon their death, or in some cases when disgnosed with a terminal illness the person insured can also received the payment. – offered to people from 16-75 and can renewed until age 99. Can be paid via stepped premiums (where premium increases with age, you pay more in the long run) or level premiums (same amount througout policy, 30% cheaper than stepped in long run, and indexed to CPI) – Advantages of having life insurance are that it gives the insured peace of mind knowing that they are n ot leaving their loved ones in poor financial positions upon their death and ensures they are looked after – Disadvatanges are that there are a few exclusions to the policy such as suicide within first 13 months, War, pre-existing conditions, aids, and terminal illness/disease where it is a direct result from an action which was self-inflicited. – Currenlty Allison has $100,000 worth of life and TPD insurance within her superannuation. In regards to life insurance this is unfortunately inadequate as the estimated living costs for Allison and Simon are $67,000 per anum. In order for Simon to continue meeting these expenses (whilst still working) if allison were to becomed deceased, the insured amount would need to be close to $475,000. This is because if invested at an average fixed deposit rate of 6% it would provide an income stream of $28,500 per anum to Simon. [(475000/100) x 6 = 28,500] – this along with his current net salary of $38490 come to a per anum income strem of $66,990 to meet expenses. An additional $270K should also be added to cover their existing mortgage debt and to have money left over in order to pay for the grandchildrens university education, bringing the total life benefit to $745,000. †¢ Income protection: – A fortnightly or monthly payment paid to the insured in the event that they suffer and injury or illness which leaves them unable to work – Maximum of 75% of income can be insured and person must be employed at least 25 hours per week. Waiting periods of 14-720 dys apply and benefits periods can be 1-65 years (longer the beenfit period the higher the premium) – 2 types of policies are agreed value (specified value to be paid regardless of difference bet ween insureds current and former incomes) indemnity (benefit based on insured income at time of claim. – Advantages are that the insurance provides peace of mind knowing that if the insured was to suffer from an injury or illness and are unable to generate an income that the benfit will be paid as if it were their regular income, giving them peace of mind that they could stay on top of all their financial commitments and goals whilst healing. Disadvantges are that as income protection is linked to employment, those who are unemployed or even those with occupations which are considered too risky are not able to obtain income proteciton insurance. Also, as the benefit is only 75% of income, the insured will be 25% worse off and will need to make sure this will not affect any financial commitments or goals they may have. – Allison currently does not have income protection insurance in place which could end diasterously as she earns 75% of the couples gross income. [(180,0 00/100) x 75 = 135,000)]. Allison should take out an income protection policy with a $101,250 benefit (135,000-25%) which would then provide both her and Simon peace of mind knowing that if anything was to happen they could continue paying their expenses †¢ Total and Permanent Disability: TPD insurance provides a lump sum payment to the insured after a qualifying period (usually six months) when certain criteria is met. – Criteria can be inability to perform own occupation, any occupation, home duties or all duties; these are based on the type of work the insured is in (rated AAA-E) – Immediate qualification for TPD payout if insured looses sight or a limb – Advantages of having TPD is that if the insured suffers a debiltating injury that sees them unable to return to work that they can still meet their expenses – Disadvantages are that it is not available to everyone; a new policy cannot be taken out after 60 and policies already in place automatica lly cease when insured reaches 65. Also unless rated category E, the standard level of cover criteria is ‘any occupation’, meaning that the insured may be able to perform in a role significantly less stimulating, challenging and financilally rewarding which would make them ineglibly to receive a payout even if they suffer a total and permanent diability. – As Allison and Simons expenses are $67,00 p/a and Allisons income protection benefit is $101,250, whilst Allisons still working a stand alone TPD policy would be beneficial for having a lump sum to pay off the exisiting mortgage debt of $150K, have enough money to pay for the grandchildrens university ($120K) and possible medical expenses (another $150K) – totalling a $420K TPD. Another amount for Living expenses should also be considered for the 6 years until retirement ($67,000 x 6 years = $402,000). This brings the total recommended TPD benefit to $822K which could also be bundled as a rider on Allisons life insurance to avoid overinsurrance. †¢ Trauma: – Trauma insurance provides the insured with a bulk payment when they suffer from an illness specified in the policy – Can be bundled with life insurance and a payout will decrease the life policy by the same amount – Available to people aged 16-55, or trauma for children aged 1-12 years ( waiting periods and age limit criteria apply) – Advantages are that as trauma insurance is not related to employment, people with uninsurable occuppations can still generally take out trauma insurance. Also the insurance provides peace of mind knowing that if the isured was to suffer from a specified illness and are unable to generate an income that the sum paid will cover their expenses and ease the financial pressure – Disadvanages are that there are exclusions such as death within 3 to 30 days of trauma event, trauma caused by an ntentional self inflicted injury or attempted suicide and acts of war. – In order to avoid overinsurance Allison should take out around $250K trauma insurance to cover $150K exisiting mortage debt and any medical expenses associated with the event. Allisons Income protection will also most likely be able to contribute towards the benefit amount should a defined event occur. c)Does Simon require personal insurance? If so, what types and how much? Please include reasons and calculations Simon could take out the following polices to provide stability and peace of mind for Allison in the event something should happen to him. †¢ Term Life, Trauma, TPD: As Allisons income (or insurance benefit if something were to happen to her simultaneously) alone can support the couples expenses of $67,000, I would recommend a combined life insurance, TPD and Trauma policy, of $690K for Simon [(salary of $45,000 x 6 years = $27,000) + $150K mortgage debt + $150K possible medical espenses + $120K grandchildrens education = $690,000), so that the mortgage can be paid out, the grandchildrens education can be paid for, any medical expenses which might be incurred can be paid, and a replacement income stream for simon is created leaving allison debt free if something were to happen to Simon. †¢ Income protection: It is my view that Income protection is not necessary for simon as allisons income is more than adequate to support the couple with money left over, however if they did not want to draw on this, an income protection policy could be put in place for 75% of his income. [$45,000 x 75% = $33750 ($33750 / 12 = $2812. 5]. this w ould mean Simons monthly benefit woul be $2812. 5 (75% of his monthly income). D) What is the most efficient way for Simon to contribute to superannuation and why? How much should Simon contribute? As Simon is on the lower end of the income tax scale, it is beneficial for him to make non-concessional contributions into his superannuation as he is eligible for government co-contributions for every $1 he puts in up to $1000. As Allison is on a higher MRT than Simon, if she were to salary sacrifice a larger portion of her income into both their superannuation accounts (shes currently Sacrificing $40,000 into her own, however this could be brought up to $70,000 and then she could sacrifice another $20,000 per anum into Simons in line with their goals of increasing their super balances) they would be paying less tax (as Allison in on the highest MRT and super contributions are at 15%) and they can use Simons income (on lower MRT) to put towards their expenses, thus Simon should not contribute too from his salary above the SG of 9% and non-concessional contributions past $1000 (as his super will be paid in by Allison to achieve the above stated tax advantages). Simon should also switch his investment strategy to a balanced mix as it is too conservative to his risk profile at the present. e)Is Allison contributing sufficient funds to superannuation at this time to meet their retirement objectives? Please explain. To meet their objectives of having $40,000 per anum to live off in retirement, Allison is not contributing enough to her superannuation at this point in time. Allowing for the effects of compounding interest, after 5 years Allison’s superannuation balance would have accumulated to $224,400 (at 7%). In order to provide an income stream of $40,000 Allison will need to bring her balance up to $580,000 by the time she retires in 5 years. This means Allison will need to make up the difference ($580,000 – $224,400 = $355,600) in the next five years. Allison will need to contribute another $30,000 p/a [($355,600/5 = $71,120) – her current Salary Sacrifice of $40,500 = $30,000] to her superannuation to achieve this balance and their retirement objectives. Allisons current total superannuation contributions per anum are $40,500 in salary sacrifice (30% of salary of $135,000) along with a Superannuation guarantee of 9% of her remaining salary ($135,000 – $40,500 = $94,500, $94,500 x 9% = $8505) bringing her total contribution to $49,005. f) Are their additional benefits available to Simon or Allison as a result of your strategies above? By Allison salary sacrificing more of her income she is saving astronomical amounts on tax as the contributions tax is only 15% as opposed to her MRT. As stated previously, Simon will also be eligible for the government co-contributions with his non-concessional contributions. Allison’s income protection policy (and Simons if taken out) are also tax deductible. Simon is also eligible for the low income tax offset of $804 from a maximum of $1350 for income earners of under $30,000. For Simon his amount is worked out with the following calculations: 1. [$1350 – ($45,000 taxable income -$30,000 threshold) x 4% = 546] and then 2. $1350 – 546 = $804) g)What is your recommendation regarding an investment for the grandchildren’s university education? What are the benefits of this investment? For the grandchildren’s education I would recommend investing in a balanced education savings plan (they would need to contribute $7000 p/a (at approx 7%, and with the effects of compounding interest) to reach their goal of $120,000 in 12 years) as the amount invested in taxed at a flat internal company rate of 30% however after 10 years the amounts can be withdrawn for non education purposes tax free, and as the investment is to be over 12 years Allison and Simon could take advantage of this. If it was to be withdrawn earlier, they are still in a good position as the money would be invested with a bit more risk than that of an everyday savings account and the taxation benefits still outweigh other methods, especially with the low income offset which is still said to be increasing. h) Are their bank/cash investments (total $36,000) meeting their requirements? Why/why not? What do you recommend? No, currently these investments are not meeting Allison and Simons requirements as they are held in both names and are therefore subject to Allison’s higher MRT. If Allison and Simon decided to use the advantages provided by income splitting (that is, transferring term deposits and interest bearing accounts into Simons name) then they would save on tax as Simon has a lower MRT. Allison and Simon could also think of putting this money in their Superannuation to capitalize on the 15% contributions tax or putting it into the mortgage as then they are paying less interest, however this would depend on whether or not they would be needing to keep this money liquid for everyday use and emergencies. i) How would you address their goals of paying out their home loan and purchasing the new car upon retirement? In order to pay out their home loan in 5 years time, Allison and Simon would eed to put around $40,000 P/A towards due to interest payable. After Allison’s extra salary sacrificing for both their Super accounts, the couple have around $45,000 surplus disposable income per anum. $40,000 can be used to make these extra payments on the home loan and the other $5000 can be put into a high interest savings account for the 5 years (which if invested at the average deposit rate of 6% will leave them with $29576. 10 after 5 years with the effects of compounding interest) which will leave them with enough money to purchase the new car. j) Are their estate planning preparations adequate? Why/why not? Currently Allison and Simon have no estate plan, therefore it being inadequate. I would recommend to Allison and Simon to contact their solicitor to discuss a will/power of attorney using their information we have uncovered through analyzing their financial situation here today. k)What alternative strategies did you consider? Why did you reject them? Insurance – providing insurances for Simon as well; This would be over insuring and wasting money for Allison and Simon as Simons income in relatively small in comparison to Allison’s, and she is able to cover all costs if something we to happen to Simon. Superannuation – Simon contributing more to his superannuation; the tax benefits of Allison’s salary sacrifice through decreasing her MRT far outweigh that of Simons and it was therefore better to prioritise with Allison’s SS and utilize Simon’s income for expenses. Investments – For the grandchildren’s university education, possibly investing in something more risky (eg shares) or less risky (eg Term deposits) however the tax advantages and return on the educations savings plan in comparison would leave them in a better position. 5 – Present Strategies and Negotiate Solutions Prior to Presentation a)Describe what preparations you would undertake to present your strategies in step 4 to Simon and Allison. After thorough research enabling me to form my recommendations, I would prepare a Statement of Advice with my findings, make sure to gather all product disclosure statements which are relevant, and information to back up my advice. I would also make sure there was a financial services guide within the information I would be taking to the interview. I would then call the clients to arrange a time which suits. b) What back-up information or documentation might you need? I might need to back up the performance of particular products/services I recommend (this could be provided in the form of company reports, asx reports, PDS, articles, academic studies etc) also easy to follow breakdowns of any calculations made so the client can see exactly how the strategy will benfit them. FSG and Privacy policy to assure the client of the companies principles and policies in the event of a dispute. During the Presentation c) Describe the disclosure principles and presentation requirements you must adhere to for the following documents: ? Statement of Advice The statement of advice must have â€Å"statement of advice† written across the front of it, it must be in non complex wording (â€Å"clear, concise and effective manner†), must have a â€Å"generic description of the range of financial products or strategies considered and investigated†¦Ã¢â‚¬ . The customer must receive a copy, along with PDS and FSG and must have signed and had the SOA presented to them BEFORE any implementation of strategies can be put in place. A disclaimer is also usually placed at the bottom of the SOA to protect the financial planner and affiliated companies against the working of case law – althogh this is not required by the corporations act. ? Product Disclosure Statement – The PDS needs to accompany the SOA so the clients have all the information in relation to possible products they are signing up to. Other things which need to be in the PDS include: Fees and charges = explain what fees might be applicable, including ben efits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented ? Products = outline the features of the products and services being recommended ? Complaints Policies and Procedures = make sure to completely explain the procedures for handling customer complaints ? Relationships = explain any relationships which might influence which products are recommended or provided d)List 2 objections or concerns your client might raise. How would you address these in order to gain agreement? 1. How do I know that what you recommend will work out for me in the long run? – We have based these recommendations on previous performance of these products and services, all of which you have sighted with your eyes. We cannot 100% guarantee that these potential outcomes listed will occur, however financial planning is what we specialise in and we make it our duty to look after your financial health. If we notice that the course which we have mapped out for you is not heading in the direction we have anticipated, you will be the first to know, and we will review your situation in order to alter your plan to best fit your needs, provided you would like us to provide you with this ongoing service. 2. This plan fee seems overly expensive – why do I have to pay it? – It takes a considerable amount of time, research, investigation and preparation for us to put together a plan that is tailored entirely according to your personal needs. There are no generics or assumptions made with what we are presenting you and the savings and earnings you will make as a result of our guidance will far outweigh the cost of this information. 6 – Implement Agreed Plan Simon and Allison have agreed to your plan. a) What transactional documents/authorities need to be signed by Simon and Allison? †¢ Authority to proceed / SOA and disclaimer †¢ Application forms along with PDS attached †¢ A cheque to be written to accompany application form b) Complete an Implementation Plan, in order, that details your planned actions now that Callahan’s have decided to proceed with your recommendations in step 4, providing an indication of when each must be completed. A – Adviser C – Client | No. Action |Who |When | | |Sign Authority to Proceed |C |Now | | |Provide 3rd parties with adequate notification of actions needed to be taken eg solicitor, accountant |A |ASAP | | |Complete application forms ready for c lient to sign |A |ASAP | | |Present application forms to client with PDS attached to be signed. |A + C |When ready | | |Photocopy, keep one and give other with PDS to client. | | | |Obtain Cheque from Client and attach to application form to be sent to dealer group |A |With step 4 | | |Welcome letter from dealer is issued |A /Dealer |- | | |Secure client file established (maintained for 7 years) |A |- | | |Confirm with clients that they have received welcome letter and they have heard from any 3rd parties. |A |- | | |Speak to clients about Review Service |A |When everything| | | | |is settled | 7 – Provide ongoing service You now have to address the issue of providing ongoing advice to Allison and Simon. )What environmental (economic, market, regulatory) changes, or changes to their personal or financial situation would cause a review of their plan? †¢ Interest rate changed may affect tax advantages, investment earnings †¢ New regulatory changes may grandfather or c ompletely remove current strategies in place †¢ Market booms and busts may cause portfolio mix to be outdated / underperforming †¢ Clients may have suffered a loss, or injury causing them to claim and or need to reassess the financial commitments they can keep up with †¢ Clients may have come into a considerable amount of money unexpectedly allowing for more room to move in current strategy (e. g. inheritance, lotto) Change of advisor may bring upon new light on their situation, may have a better strategy in mind. b)Describe 2 activities you regularly undertake to keep up-to-date with current legal, ethical and regulatory requirements of the finance sector. †¢ Read financial review/finance news, current company legal updates †¢ Read the AFPA reports issued and newsletter from BT financial and liaise with current financial planners c)What level of ongoing service would you propose for these clients? ( â€Å"No service† ( â€Å"Portfolio valuation† ( â€Å"Portfolio review† ( â€Å"Financial Plan review† ( â€Å"Other† – Describe d)Describe the option recommended for your client, and why you have recommended this option. Describe the level of service you will provide and the associated fees. I would recommend an annual portfolio review for Allison and Simon to ensure that they are on track to achieving their goals. This would involve checking balances and fund mixes to ensure adequate returns have been made and that products are performing as anticipated. I would prepare a letter to send out based on my finding advising whether or not a change could benefit them. As the strategies recommended for Allison and Simone are fairly basic a separate fee would not be necessary as this service would be considered to be paid for under the trail commissions. Sample Fact Finder & Risk Questionnaire 1. PERSONAL DETAILS |CLIENT 1 |CLIENT 2 | |Title: |Mrs |Mr | |Given Name: |Allison |Simon | |Preferred Name: |Allison |Simon | |Surname: |Callahan |Callahan | |Date of Birth: |1956 |1958 | |Marital Status: |M |M | | | | | Home Address: |Address: Lot 3 Wattle Road | | | | | |Suburb/Town: Hurstbridge | | |State: VIC Pos tcode: | |Home Telephone No. | | |Preferred Contact No. | | | | | | | | CHILD / DEPENDENT DETAILS Name: |Megan | | | | |Relationship: |Daughter | | | | |Date of Birth: |1981 | | | | |Current Age: |29 | | | | |Financially Dependent: |NO | | | | HEALTH DETAILS Do you Smoke: |Yes / No |Yes / No | |State of Health: |Poor / Good / Excellent |Poor / Good / Excellent | |Are you aware of any health issues that may| | | |impact your ability to earn an income? | | | |(please provide details) | | | |Notes: | 2. EMPLOYMENT DETAILS |CLIENT 1 |CLIENT 2 | |Employment Status: |( Unemployed |( Unemployed | | |( Full Time Employed |( Full Time Employed | | |( Self Employed |( Self Employed | | |( Part-time |( Part-time | | |( Retired |( Retired | | |( Other |( Other | |Employer Name: |Best Marketing |Newbolds Pty Ltd | |Position Title: |Marketing |Employee | |Primary Duties: |Marketing |Custom Furniture | |Work Address: | | | |Current Work Phone No. : | | | |Employment Security: |Secure – just promoted |Secure – intention to stay long term | |Are you Contemplating leaving your employer? |In 5-6 years |Not in the foreseeable future | |Do you foresee any substantial change in |Planned retirement in 5-6 years, possible |In 5-6 years will reduce hours to part time | |your income in the next 2-5 years? reduction in take home pay in the lead up to|– income will be approx $20K p/a | | |this | | |Notes: | | | OTHER ADVISER DETAILS Accountant |Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes ( No Solicitor Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes( No ESTATE PLANNING DETAILS | |CLIENT 1 |CLIENT 2 | |Do you have a current Will? |No |No | |Date of Will / Last Reviewed: | | | |Power of attorney |No |No | |Type / Name of Attorney? | | |Do you have Funeral Plans? |No |No | |Do you have any specific intentions |Intention to pay for grandchildren’s |Intention to pay for grandchildrenâ€℠¢s | |regarding your estate distribution? |university in the approx 12 years (approx |university in the approx 12 years (approx | | |$120K in today’s dollars) |$120K in today’s dollars) | 3. FUTURE NEEDS OBJECTIVE AND GOALS |E. g. Current income needs, retirement income needs, diversification, tax minimisation, capital growth, investment security, wealth creation, | |eliminate mortgage etc | |Reasons for seeking financial advice | |Gain assistance with making the transition to retirement and planning the next five years | | | | | |Short Term (1 to 3 years) | |Save on tax on bank accounts/term deposits through possibly restructure | |Start increasing Allison and Simons Super balances ($160K and $47K) | |Look into other investment options to diversify current wealth | |Medium Term (4 to 7 years) | |Pay off IO mortgage of $150K in 5 years | |Buy new car (through trade in 9 year old land cruiser) worth $30K In 5 years | |Have a $40K (today’s dollars) p/a retirement income stream in 5 years | |Long Term (7 year plus) | |Pay for grandchildren’s university in 12 years – estimated needed $120K in | |today’s dollars | | | | | RETIREMENT PLANNING Retirement Details |CLIENT 1 |CLIENT 2 | |Plan ned Retirement Age: |59/60 |undetermined | |Retirement Income required: |$40K (today’s dollar) |$40K (today’s dollar) | |After retirement, do you intend to work |NO |Expected Income= | |again either on a full-time or part-time | |$20K | |basis? |Till age: undetermined | |What capital expenses will you have in |$ |$ | |retirement? (Please state expense and | | | |value) | | | |Would you like some assets left to your |$ |$ | |estate? Please detail) | | | |Notes: | | | | | 4. FINANCIAL DETAILS PERSONAL BALANCE SHEET Lifestyle Assets | |Owner |Date Acquired |Value |Associated Debt | |Principal Residence: |Allison and Simon | |$750,000 |$150,000 | Contents: | | | | | |Motor Vehicle/s : |Allison |2006 |Land Cruiser |No debt | |Caravan / Boat / Trailer: | | | | | |Investment Property: | | | | | |Other: | | | | | | | | | | | | | | | | | | | | | | | |Total | | | | | Investment Assets Investment | | | | | | | | | | | INCOME DETAILS | |CLIENT 1 |CLIENT 2 | |Income: |$135,000 |$45 ,000 | |Investment Income: |$1770 p/a interest (bank accounts) |$1770 p/a interest (bank accounts) | |Centrelink Income: | | |Pension/Annuity Income | | | |Other Income: | | | | Less Income Tax |$38554 |$7580 | | Less Medicare Levy |$2050 |$700 | |Total Net Income |$94426 |$38490 | |Combined Net Income |$132,916 | EXPENSE DETAILS |COMBINED | | |Food: | | | |Entertainment: |$15,000 | | |Transport/Vehicle: | | | |Council Rates: | | | |Amenities: | | | |Rent: | | | |Mortgage Repayments: |$12,000 | | |Other |$40,000 | | |Total |$67,000 | | SURPLUS DISPOSABLE INCOME | |COMBINED | | |Annual: |$65,916 | | |Monthly: |$5,493 | | PLANNED MAJOR EXPENSES |Nature of Expense |Approx. Expense Amount |Expected Date | |Grandchildren’s university |$120,000 in today’s dollars |12 years | |Purchase new car |$30,000 |5/6 years | | | | | | | | | |What cash reserve do you require for | | | |emergencies or unforeseen expenses? | | | |Are you expecting a future lump sum or | | | |inheritance? | | | |If so, how much? | | |Notes | | | 5. SUPERANNUATION & INSURANCE SUPERANNUATION |Company |Policy No. |Employer/ Personal | |Are any of the above policies preserved? | |No | |Has a tax deduction been claimed for part/all? |Yes |No | |Are there any exit fees applicable? |Yes |No | LEAVE PAYMENTS Type |Expected Receipt Date |Anticipated Amount | |Annual: | | | |Long Service: | | | |Other: | | | |Have you recently received a redundancy package? |Yes |No | |If you have recently received a redundancy package, please provide notice of payments. | GENERAL INSURANCE Insurance Description |Policy Number |Owner |Date Commenced |Sum Insured |Premium Payable | |Term Life and TPD |Allison |$100,000 | | | | | | | | | | | | | | | | | | | | | | | | | |Notes: | | | 6. INVESTOR RISK PROFILE Your attitude to risk is probably the most important factor to consider before investing. To achieve higher returns, you will have to be prepared to accept a higher risk of capital loss. This is because the funds and assets that offer high returns are generally more volatile than those producing lower returns. It is what we call ‘risk/return trade off’. We will recommend investment strategies to match your investments to your risk profile. Investing across the various investment sectors according to your risk profile is called diversification. For example, instead of investing only in property, or only in shares, you might invest a proportion in both, or even include cash or fixed interest to create a balanced portfolio. You are a balanced investor who wants a diversified portfolio to work towards medium to long-term financial goals. You require an investment strategy that will cope with the effects of tax and inflation. Calculated risks will be accepted to help you achieve good returns. 17 – 23 Moderately Conservative – A Low Risk Taker You are a moderately conservative investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect wealth that you have accumulated, you may be prepared to consider less aggressive growth investments. 9 – 16 Conservative – A Very Low Risk Taker You are a conservative investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected. 7. CLIENT STATEMENT / AUTHORISATION |I/We herby declare that the information set out in this form is true and correct to the best of my/our knowledge. | |I/We are not aware of any other information and have not disclosed to the person to whom this form is given any other information | |which would be relevant to the making of a recommendation by a Mentor Financial Planning Representative. | |I/We give permission for this information to be used for the preparation of my/our financial plan and I/we understand that the | |investment recommendations will be based solely on the information supplied in this form. | | |I/We also acknowledge that: | |( |I/we have received, read and understood the Financial Services Guide before any advisory services were provided; | |( |I/we permit this document to be passed in confidence to any member of Mentor Financial Planning Pty Ltd; | |( |Lim ited Information Provided | | |I/We have provided limited financial information. I/We have limited the product(s) or objective(s) that can be advised on | | |to: | | |If you are seeking limited advice of a particular nature you must make this known at the time of the interview and you | | |should recognise that the recommendations will only relate to that limited advice being sought and may not be appropriate | | |considering your overall situation and objectives. | |( |Tax File Number Permission | | |I/We give permission for my/our tax file number(s) as provided, to be held only by Mentor Financial Planning and be | | |forwarded to financial institutions as requested or as necessary. |( |Engagement Application | | |I/We request that Mentor Financial Planning investigate research and provide suitable options to the financial objectives | | |outlined in this questionnaire. | | | | | |I/We understand that the preparation fee of $500 is payable for the work to be undertaken. This fee may be credited | | |against my establishment fee should I/We proceed to implement any of the recommendations provided by Mentor Financial | | |Planning. | | |Client 1 | |Client 2 | | | | | |Signature: | | | | | | | | | |Date: | | | | |8. Adviser’s Declaration | I declare that: a) the information contained in the Fact Finder is an accurate and complete record of the information obtained from the client(s); b) The client(s) was provided with a copy of the Financial Services Guides before any advisory services were provided. |Adviser’s Signature | |Date | | | |Additional Important Information for the Client(s) | |If incomplete or limited financial information has been provided: | | | |I, as your Adviser, will not be able to undertake a full needs analysis of your individual investment objectives, financial situation | |and particular needs; | |There is a possibility that any recommendation given to you may not be fully appropriate to your individual objectives and needs, | |especially those which I, as the Adviser, do not know; and | |You as the client must carefully ssess the appropriateness of the recommendations to your own individual investment objectives, | |financial situation and particular needs before acting on them. | To Whom It May Concern Please accept this letter as my/our authority to provide any information requested and documentation if required to Azza Financial Planning (or their representative). Please accept a photocopy or facsimile of this letter, as the original will remain on file at the offices of Mentor Financial Planning. Correspondence should be sent to Level 2, 349 Collins Street Melbourne VIC 3000 This authority should remain in force until withdrawn in writing by me/us. Thankyou. |Allison Callahan | | | |Client 1 Name | |Signature | | | |Simon Callahan | | | | | |Signature | | |Client 2 Name | | | | | | | | | |Client 1 D. O. B. | |Client 2 D. O. B. | | | |___/___/___ | |___/___/___ | | | | | |Lot 3, wattle road, Hurstbridge, VIC | |Address | | | | | On Going Service Options 1. The â€Å"No serviceâ €  option This generally relates to a one off investment placement based on the agreed investment strategy in the financial plan. In choosing this option, no ongoing service or review of the financial plan and the investment portfolio is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 2. The â€Å"Portfolio valuation† option This service provides reports on the value of your investment portfolio only. The fee charged will depend on the frequency of the reports. In choosing this option, no ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 3. The â€Å"Portfolio review† option This service provides reports on the value of your investment portfolio. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $N/A but this may be higher depending on the complexity of the review. This service includes: An annual/half yearly/quarterly review of your existing investment portfolio and its performance looking at further investment opportunities, if appropriate establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio In choosing this option, o ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 4. The â€Å"Financial Plan review† option This service provides for an annual/half yearly/quarterly review of the overall financial plan strategy and the investment portfolio recommend ed. Each review will be presented in the manner of a written report and recommendations. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $__500________, but this may be higher depending on the complexity of the review. This service includes: roviding reports on the value of your investment portfolio; an annual/half yearly/quarterly review (including comments) of your existing investment portfolio and its performance; looking at further investment opportunities, if appropriate; establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio and the overall financial plan strategy; establish if there have been any changes to your personal circumstances or financial goals and objectives; ascertain if the overall financial plan and the investment portfolio is continuing to meet your financial goals and objec tives (including an insurance review); and making any new recommendations (if necessary).

Advantages and Disadvantages of Video Games Essay

Everybody knows something about Super Mario or Pac-Man. These two and some others have started a new trend which called ‘playing video games’. Most people have spent their free time with playing video games and it still keeps going in that way. But for years people asking this question. ‘Do video games are bad or good? ‘ One of the advantages of playing video games is improving your vocabulary. Most games are online now and you can’t do anything without making a contact with other players. These players are live in another countries and the only way to communicate with them is using a common language. 90% this is English. I’m playing video games and i can say that video games really improves your vocabulary skills. When you don’t understand a word in a game you have to check dictionary to understand the meaning of it. To be honest,I have learnt a lot of words from video games. Actually more than my English lesson in highschool. Another advantage of playing video games is improving computer skills. Sometimes you have to set some options to play your game better. While doing that you learn about your computer’s hardware too. For example:there is a part in options called ‘graphics’. You have to use a better graphic card to see better images. To get a better graphic card,first you have to know how we can compare them and by that we learn more and more about our computer’s system. But of course there are disadvantages too. One of the is it’s harmful for your eyes and other body parts. I know there are some games which you can play by Nintendo Wii or PlayStation Move. They give you some kind of camera and your moves can be seen in game. But it’s unnecessary to do something like that. There are lots of sports which you can do outside. You can go on a jogging or play basketball,tennis etc. You don’t have to do this by playing video games. Another disadvantage is that,sometimes children access games which are not proper to their age and that is harmful for children. But I think the problem is not games are too reachable. The problem is parents are don’t care enough about their children. What I mean is you can’t ban something global but you can limit them. And it’s not so hard to do it. Maybe you can limit the internet or you can use some kind of programme like Family Security System. But these are the things which you can made with using a computer. Also you can stop your children with spend more time with them. Then they can feel video games are not the most important thing in the world. In conclusion there are bad and good sides of video games. But some other things have good and bad effects too like TV or food. If you don’t become and addict I think all of them are useful. You have to control yourself and your time to don’t become and addict. All is up to you.

Respond to the article Malware in Hack Linked to Russian, WSJ, January Essay

Respond to the article Malware in Hack Linked to Russian, WSJ, January 23, 2014 - Essay Example He never wanted to use the code to enrich himself, but rather help to find a solution. The only problem is that the code fell into the wrong hands and was used inappropriately. If the companies had bought the virus, then they would have prevented the harm they suffered. Therefore, what Mr. Shabaev did was not unethical. Another situation that involved hacking happened when five men, were charged for stealing credit cards summing up to $300 million (Coleman 23). The five collaborated to enter into top companies systems such as J.C. Penney Co, JetBlue Airways Corp, NASDAQ, French retailer Carrefour SA and Visa Inc. licensee (Coleman 23). The five are said to have stolen at least 160 payment card numbers which in turn resulted to the loss of about $300 million. The five went for so long unnoticed by simply disabling their victim’s antiviruses and hiding their loot on multiple hacking programs making them invisible (Coleman 24). This cybercrime is deemed the biggest ever, in the United States, and it affected so many companies. The cost they had to incur to update and repair their security systems and the number of credit cards they had to replace really dug into their finances. Some were even bankrupt. This truly illustrates the consequences that can result from cybercrimes. The loss of custome rs is another problem they had to face, they feared for the safety of their life long savings and opted to seek more secure and theft proof investment platforms. The Shabaev virus has really dented the image of TARGET as a trustworthy investment partner. It no longer attracts customers and the ones it had do not feel save in it, therefore, decide to move elsewhere. TARGET also had to spend about $30 million mostly to replace the cards that were affected. The breach also scared away TARGET’S customers leading to decline in its share price by 20%, and also decreasing its profit as compared to the previous year. All these problems

Criminal Justice Assignment Example | Topics and Well Written Essays - 500 words - 1

Criminal Justice - Assignment Example Compared to other normal criminals, "chronic" offenders had an average of eight times more convictions for property offenses and six times more convictions for violent crimes (OLA). Chronic offenders may not keep any sympathy towards the victim while they execute their crime. They will execute their missions in a professional manner. Sympathy or relationships may not prevent chronic criminals from their illegal activities. Rules and social norms may not have much influence on chronic offenders. Chronic offenders are not circumstantial criminals, but they are diseased persons. Circumstantial criminals always engage in criminal activities because of the circumstances in which they happen to be. On the other hand chronic offenders engage in criminal activities irrespective of the circumstances. Apart from the sociological and psychological reasons, the major reasons for chronic offenses are bitter childhood experiences, bitter experiences from the beloved ones, struggle to find a livelihood, drug or alcohol addiction etc. A chronic offender is one way or other taking revenge upon the society for his ill fate. Such offenders perceive the society and its setup or norms responsible for the mishaps faced by them. Chronic offenders might feel certain things as their basic right. For example, Sex maniacs visualize the opposite sex as an instrument to be used. They never bother about the rights of others and they give first and last priority to their wellbeing only. The needs and rights of others don’t have much influence in their activities. Inborn traits or life experiences might have devised such deviant mind set among the chronic offenders. As mentioned earlier, chronic offenders are sociopaths or psychopaths. Psychopaths are unstoppable and untreatable human beings. They always engage in planned, purposeful and emotionless criminal activities (What Is a Psychopath?). Sociopaths are less dangerous compared to psychopaths.

How far is it true that madness before the enlightenment is understood Essay

How far is it true that madness before the enlightenment is understood in primarily religious terms - Essay Example This period was to see a great positive shift in tyranny, ignorance, superstition and to build a good reputation in the world (Macdonald, 1981). With this plan, the enlightenment had hereditary domination by aristocrats and religion as their sole targets. The logic behind the Enlightenment period is all about Christianity as far as religion is concerned. From Italy to England to France, this major vibrant religion had its ideas affect day-to-day lives of many. Ideally, there would not have been any form of enlightenment without Christianity. Churchmen almost had equal rights and powers as emperors and many other rulers that existed then with some privileges being exemption from paying taxes (J. Schmidt, 2007). Philosophers, thinkers and scholars like John Locke and Voltaire sparked the enlightenment. Other significant names during this period were Isaac Newton, who was a great physicist and later recognized as father of modern physics, and Baruch Spinoza. These are just but a few int ellectuals who saw religion as a â€Å"cage† that bared man from success and development. They also articulated scientific revolution, which would later spread overseas to the rest of the world (Jeremy Schmidt, 2007). Popularly known as the â€Å"Dark Ages,† this movement brought logical positivism to people. Life initially had been all about God and that the rupture is uncertain when the pure in heart would be live in Heaven forever. Because of this, intellects were to be the elites of their time as they acted sources of credible information (Allen, 2008). There was an overall rise in ideas based on empiricism and credible philosophy hence their application in a variety of areas like biology, physics, chemistry and political economy. All these theories attacked the church and the state directly. Christians today have the question of possibly knowing the truth as their main foundational philosophical challenge. The human mindset has taken two dimensions in our society today. Either one is of relativism or skepticism. Relativism is based on the statement that there is really no fixed truth. Skepticism on the other hand says the truth lives but we cannot know it (Midelfort, 1999). As preachers spread the word across the entire world, these two mindsets affect all the claims of truth for Christians of these days. Religious Perceptions about God Way back before Enlightenment God was like sunrise. Choosing the path of God was seen as a way of having all human questions answered and accompanied problems solved amicably. Christianity had its feet on the Bible as a way of knowing God. Bibles were Holy books from which people got the relevant knowledge they needed to stay close to their creator. The Old Testament was in its capacity a form of ‘constitution’ that had all solutions to political questions. Historical events were seen as a service to God’s will and they were understood to work according to God’s plan (Feld, 2011). S torms, floods and heavy rains were believed to be a form of â€Å"communication† from a supernatural being. Therefore, these events were not just chances. God was always involved ever since He created the world with everything in it many years before Christ with man being the highest level of His creation. Christ was the son of God who lived among the people, brought the Godly message, and later ascended to Heaven. To this there was a strong belief will be a last Judgment when Christ will return and few will be chosen for an eternal life. This, to some, made the

WITH REFERENCE TO THE UN MILLENNIUM DEVELOPMENT GOALS, CRITICALLY Essay

WITH REFERENCE TO THE UN MILLENNIUM DEVELOPMENT GOALS, CRITICALLY EVALUATE THE ASSERTION THAT HEALTH IS NOW TOP OF THE INTERNATIONAL AGENDA FOR DEVELOPMENT - Essay Example eover, the countries committed themselves towards reducing child mortality which is MDG number four, followed by a declaration to improve maternal health as the MD goal number five. This is followed by a promise to combat HIV/AIDS, malaria and other diseases while a commitment to ensure environmental sustainability became the MDG number seven. The last goal in the list is the declaration to develop a global partnership for development. To fast track the achievement of the MDG, UNDP (2010, p. 10) explains that in September, 2010 there was a UN conference in which the countries reaffirmed their commitment towards achieving the MDGs and promised to accelerate efforts towards their achievement. In reference to the Millennium Development Goals one can rightly assert that health is currently top of the international agenda for development. Looking critically at all the millennium Development goals shows that United Nations gives health top priority. All the eight goals contribute in one or the other in enhancing the health of global population. According to United Nations (2007, p. 23), giving each person a chance to enjoy a long and healthy life is both an essential goal of development and a means of enhancing the potential of a country to develop. Millennium Development Goal one committed nations to eradication of extreme poverty and hunger. If this goal is adequately addressed, it could lead to significant improvement in the health of the global population. Under this goal, United Nations (2007, p. 23), explains that the first target was to reduce by halve the proportion of people living on less than a dollar a day from what the population was in 1990. Reddy and Heuty (2005, p. 10) argues that poverty is a multi-dimensional phenomenon and defines it as lack of options to various dimensions of the quality of life. T here are many people living in absolute poverty in some parts of Asia and Africa as observed by Reddy and Heuty (2005, p. 10). Poverty deprives one a

Importance of Uniforms in Schools Speech or Presentation

Importance of Uniforms in Schools - Speech or Presentation Example Brunsma and Rockquemore (54) define school uniform by arguing that clothing would be considered uniform if it sufficed as an emblem of a group, suppressed individuality and demonstrated the legitimacy of an institution by revealing the relative positions of individuals. Studies by Brunsma and Rockquemore back the argument that school uniforms improve behavior among both the female and male students (53). These studies indicate that suspensions from schools reduce drastically with adoption of school uniforms and in cases where an increase would be recorded, infractions of school uniform regulations could be the outright cause and not other forms of indiscipline. This suggests that the behavior of students shifts towards less severe infractions. In Norfolk, Ruffner Middle School recorded a 42% decrease in referrals related to discipline following the introduction of uniforms. The improved discipline in students translates to improved academic achievement. Research on elementary student s to ascertain this hypothesis deduced a 10% improvement on test scores after adoption of school uniforms with 0.05 standard deviations. ... Without uniforms, clothing could distract students especially the teenagers known to dress to be noticed by others. Holtz reported that teenage students would put on â€Å"shirts that comment on reasons not to do homework, may be associated with gang colors and symbols or expose too much skin† hence causing distraction to other students. Too much time would be spent on dressing up to impress others at the expense of concentrating on academic work. Standardized clothing would ensure that all students are at the same level hence no one would stand out to distract others. It builds team spirit and the desire for good ambassadorship hence promoting healthy academic competition among students from different schools (Stafford and Wade 416). Brunsma and Rockquemore (54) argue that if uniforms socially control the behavior of students, students in uniforms would therefore portray behaviors consistent with the goals of their respective schools. School uniforms make it easier to identif y unauthorized visitors thus preventing use of insignia and gang colors, which in turn reduces theft with students no longer having to bring along expensive clothing to school. These authors give the example of the effectiveness of school uniforms for safety of students in gang plagued areas in Los Angeles where putting on some colors could set off fights. The Long Beach School District also noted 50% decrease in muggings and fights and 74% decrease in sexual offences with the introduction of school uniforms (Brunsma and Rockquemore 54). Being a sign of group membership, school uniforms would signal those outside the school membership. Indeed, the argument on

Photographing and photographs Essay Example | Topics and Well Written Essays - 500 words

Photographing and photographs - Essay Example For instance, the pictured house from the Bozar Centre for Fine Arts gives an image of either how a certain community used to build its houses or how it builds them in the current time. The viewer is able to tell that the time of the day that is either early morning or late in the evening as depicted by dull and bright colors, which he or she has integrated.   A photograph can carry different kind of message, for instance, conceptual photography that entails capturing a meaning as well as essence of that particular moment. For the photographer to take such ideas to the extreme, he or she has to use various techniques such as light, poses, elements, atmosphere and props among others to create or bring out the mood or deliver his or her feelings to the watcher. Most conceptual photographs contain varied messages or else a series of emotions besides it is only a few of them that contain a single message (Dettling 84). By observing the above Bozar image, one finds it very attractive to the eyes because the artist employed different techniques intelligently to bring out the aesthetic value of the picture. The photographer took the image from the front elevation and having similar height to cover much of its parts such as the roof, window and the door.  Ã‚  Ã‚  Ã‚     Use of cameras in taking photographs and videos is now replacing the ancient methods of putting down images such as drawing or painting that were quite challenging to coming up with the exact image as the pictured object (Dettling 22).

Global Markets and the New Product Development Process Essay

Global Markets and the New Product Development Process - Essay Example QFD has been used as a significant portion of the product development procedure. QFD is an asset in people and in order. It uses a cross useful team to determine client supplies. QFD is a methodical and logical technique for convention customer expectation. QFD is a preparation process for interprets client supplies (voice of the client) into the appropriate scientific supplies for each stage of product development and construct (i.e. marketing policies, preparation, product design and manufacturing, example assessment, manufacture process development, manufacture, sales) (Sullivan, 1986) and (Revelle, 1998). if we look upon the basic theories of this article then we come to know that new product foreword in today's technology-driven marketplaces carries important risk. New product breakdown rates can be as short as one out of each three products (Antil, 1988) or as elevated as the 90 percent of new grocery products which are reserved inside a year of their foreword. New technology, better communications, greater than before income stress and shorter product life rotations have extra to the intrinsic danger (Rosenau, 1988). Yet, with no the foreword of new products, worsening of the firm's market place is predictable (if you discontinue rising, you start dying!). Without new products, firm's determination unavoidably idles. Initial or near the beginning admission of new products, on the other give, can consequence in new marketplace development, longterm market supremacy, and foreclosure of contestant' answers (Crawford, 1988). Failure to react to spirited new product foreword with suita ble speed can consequence in late advertise entry, a enduring loss of marketplace split and dissolute proceeds (Kotler, 1988). Timely and receptive new product development has turn out to be even additional dangerous in the extremely spirited global surroundings. The need to react rapidly to these lively global advertise forces needed the solid to integrate fast the viewpoints and needs of together product developers and possible customers (Barton and Krause, 1985). However, operational against appropriateness is the customary new product development process, which is chronological, with each phase following in rational order (Sommers, 1982). An similarity of the customary technique is the communicate contest, which needed a even transition from sprinter to sprinter (i.e. one group of useful specialists transitory the baton to the after that collection). Any lack of message flanked by various sections in the near the beginning phases of product development can be deadly to the achievement of the scheme as an entire. The answer to the obstacle obtainable by the customary linear replica is simultaneous advertising, which is flattering common in the new product development labors for a lot of businesses (Kochan, 1991). Today's symbol for new product development is the team dash: teammates in a run can run at the similar time, in the similar race. Communication is unimpeded and continuous as teammates do not contain to wait awaiting the

Literature review and best practices for STEMI care Essay

Literature review and best practices for STEMI care - Essay Example Lee (2009) suggested that physicians should initiate the catheterization laboratory without necessary consulting the cardiologists. In some cases, some patients that have been referred for PPCI do not get optimum percutaneous reperfusion and at the right time with an experienced group (Tubaro et al., 2011). PCI aims to open the artery as soon as possible after its blockade, preferably within 90minutes (Cardiosmart.org, 2014). The recommended time for the treatment of patients with PCI capability is a maximum of 90 minutes. For those without PCI capability, they should receive medical attention in the first 30minutes of arrival at a hospital. The treatment is basically fibrinolytic therapy. Paramedic bypass of the protocols of emergency care reduced the number of minutes of the door to balloon time. From the study, there was an improvement of over 28 % percent. Before the initiation of paramedic by pass protocol, the average time needed was about 107 minutes. These saw an improvement of about thirty-seven minutes with an average time coming down to 70 percent. However, the study recommends for further studies to determine the outcome of those patients who were taken care of by these paramedics (Cheskeset al, 2011). In the observation by Pitta et al (2010), it was noted that most of the time lost is on the acquisition of an electrocardiogram and most of the patients never had an electrocardiogram conducted on them because of the delays. Hence, from the case study, the authors emphasize on the need to have a Pre-hospital electro cardiogram to conduct to aid in reducing the door to balloon time. In the study conducted by Wilson et al, (2010) to assess the impact of interdepartmental collaboration on door to balloon time reduction, the authors observes that there is a great improvement on time reduction with emergency department physician activation of cardiac catheterization laboratory followed with instantaneous transfer in

Benthams version of Utilitarianism Essay Example for Free

Benthams version of Utilitarianism Essay Utilitarianism is the ethical theory that shows the reasons for a person choosing to carry out an action it justifies an action being for the greater good. Utilitarianism is a teleological theory which means it looks at the consequences or result of an action to decide whether it is subsequently right or wrong this also makes it a consequentialist theory. The theory of Utilitarianism began with Jeremy Bentham. Benthams theory of Utilitarianism is where actions are judged based upon the pleasure gained in the result. Jeremy Bentham was the man who originally thought of and came up with the idea of Utilitarianism, he believed in the greatest good for the greatest number. There are two types of Utilitarianism; Benthams theory is Act Utilitarianism. Act Utilitarianism is about creating the greatest amount of pleasure in a particular situation through a particular action. Bentham believed and used research to conclude that people would naturally seek pleasure and avoid pain. Nature had placed mankind under the governance of two sovereign masters, pain and pleasure. It is for them alone to point out what we ought to do as well as to determine what we shall do. (Bentham) Bentham truly believed that pleasure was the purest form of good and pain the sole evil; he saw this as moral fact. This is why Bentham is also known as a hedonist. The hedonists were a group of Greek people who sought to find true pleasure; hedone means pleasure in Greek, this group included people such as Plato and Aristotle who agreed that good was found in the greatest happiness. The principle of utility was a way to find out how good or bad an action was, based on its utility (usefulness). An action that creates the most pleasure and the least pain is a useful one and therefore it is good pain v pleasure. For Bentham good, is the maximum amount of pleasure with the minimum amount of pain afflicted and bad, is pain with little pleasure received. Bentham believed that in any situation a person should think of a solution that will lead to the maximum happiness for the maximum of people. For example, if a man with the cure for cancer and a young child were in a car crash, you would assume to save the life of the child as they are considered to be innocent, however with Benthams theory you should do the maximum amount of good for the maximum amount of people, which means you should save the man. By saving the one man you then save thousands, the action of letting the child die is out weighed by the amount of people you have saved if using Benthams theory. However Bentham knew that it would be hard to predict the outcome of every situation and know which route to take and so in order to help, he came up with the hedonic calculus which you can use to work out which option will produce the greatest amount of pleasure. There are seven factors which you must take into account when choosing what to do in a certain situation; the intensity of the pleasure, the duration of the pleasure, how certain pleasure will be the result, how near the pleasure is to you, how continuous is the pleasure, is there likely to be pain mixed with the pleasure and how widespread will the pleasure be. When faced in a dilemma, Bentham believed that you could chose the good option the option which would do the most amount of good and the least amount of pain. For example, if you are in a plane crash and you could only save one person; your wife, your child or a doctor who has the ability to save many. Bentham believes in this situation you must use the hedonic calculus to form a solution to your problem. The doctor could make thousands of lives better and create much more pleasure than if you save the wife or child, however this tough decision would leave you without pleasure. Following Benthams utilitarianism you must save the doctor. When a decision has to be made over a moral situation, the hedonic calculus is used. In using the hedonic calculus the individuals involved should be considered by applying the seven factors to them in relation to the options for the choice of action you have. Utilitarianism has no serious weakness Discuss It is true that Utilitarianism does have many strengths however it does have weaknesses too. Bentham, Mill, Hare and Singers theories each have their own faults. Utilitarianism is very straight forward and easy to understand. It is very natural for a person to consider the outcome and how much pleasure they will gain before going through with an action. It is a principle that aims to bring people happiness this is very appealing for many in societies. Many of the ideas and theories can be related to specific actions and situations and therefore can be helped out in the process of considering what to do in certain places, for example; giving to charity gives happiness to the poor and is good whereas acting cruelly towards someone is bad. The use of Utilitarianism can be carried out universally. Utilitarianism is not dependant on any religion, culture, race or society as it is about a person or groups happiness. This use of utilitarianism is great because it makes people picture and understand other peoples point of view for example; if you were to hit someone then instead of carrying out the action, you would think about the outcome picture yourself in the other persons shoes understand that pain which you would cause and subsequently stop yourself from hurting them. You have to think of other peoples pleasure and pain rather than just your own. This is mainly used in preference utilitarianism as Hare put it standing in someone elses shoes. The fact that Utilitarianism is a consequentialist theory is both good and bad. It is natural for us to weigh up the consequences of an action before carrying it out however it is never going to be easy to always predict the outcome of an action completely right for example; if you go out to steal to help your family survive but then get caught and arrested then you can no longer carry out the good action of helping your family. Utilitarianism may also be argued against because it ignores or seems to ignore the importance of following duties the act itself may be right or wrong for a reason other than the amount of happiness it produces, for example an old friend is on his death bed and asks you to swear that you will give à ¯Ã‚ ¿Ã‚ ½30,000 (all of his money when he dies) to his favourite park he used to visit but on the way to handing over the money you see an advert that says it needs à ¯Ã‚ ¿Ã‚ ½30,000 to save 10,000 people. Out of duty you must give the money to the park however if you are following Utilitarianism your belief is that the money must going into creating the most good/ happiness which would be saving those 10,000 people. W.D Ross believed it was important for you to follow and carry out your duty. Benthams Act utilitarianism although was flexible and relied on the consequences it had no defence for minorities for example; one slave being treated badly but creating happiness for a whole family would be thought of as right. Also it is very impractical having to calculate using the hedonic calculus every decision we make. There is also a difficulty defining what pleasure is for example; a paedophiles pleasure is very different to another persons. Mills Rule utilitarianism is very practical and sets about certain rules for society that must be maintained which can help societies to operate. However there are weaknesses to rule utilitarianism too again there is no defence for minorities or any help at what defines happiness but also this time if you are following rules you could end up obeying them even when more happiness can be created by disobeying them.

Literature review: learning on the internet

Literature review: learning on the internet RESTRICTED CHAPTER TWO LITREATURE REVIEW LITERATURE ON THE SUBJECT 1.Internet is an important tool in the modern day context. All searches pertaining to any kind of search to are within the finger tips. There by it has become a topic for researchers to research and write the thesis on covering various aspect of the internet. Saunders says that a thorough understanding of, and insight into, previous research that relates to a project is essential for the quality of the study, this usually being achieved by means of critically reviewing the extant literature1 2.My literature review of research will be based on publications such as subject related text books .E books, articles, journals, periodicals, projects proposals and unpublished thesis, pamphlets, completed reports and other available literature information resources already published by external authors on the respective subject area. According Timothy and Ellis they state that the literature review should be structured in following stages. So that I have used this model in order to sequence my literature review.2 On the attributes of a critical literature review Saunders, Mark N. K.1 Rojon, Cà ©line21School of Management, University of Surrey, Guildford, GU2 7XH, United Kingdom;2Department of Psychology School of Management, University of Surrey,Guildford, GU2 7XHUnited Kingdom Achieved by means of critically reviewing the extant literature.1 2A Systems Approach to Conduct anEffective Literature Review in Support of Information Systems Research Yair Levy and Timothy J. Ellis Graduate School of Computer and Information Sciences,Nova Southeastern University, Florida, USA INTRODUCTION TO THE INTERNET 3.There are plenty of definition can be find on what internet and this what the oxford dictionary says â€Å"A global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols†. The definition itself brings out what it exactly does and also it describes under which conditions it should use. According to Linux information project on 2005 describes it as a network that is composed of a number of smaller computer networks which connects thousands of networks and hundreds of millions of computers throughout the world. It shows that no barriers on using the internet for any kind of a user for the benefit of him or for his organization. 4.The internet is a unique collection of networks, or a network of networks, that was made possible by scientists with vision to implement a compatible communication standard. These standards’ allow computers built by a variety of manufacturers running on different operating systems to exchange data. The internet, therefore, is able to facilitate the sharing of resources among participating organizations, which include government agencies, educational institutions, and private corporations.3 HISTORY AND EVOLUTION OF INTERNET 5.The Internet has revolutionized the computer and communications world like nothing before. The invention of the telegraph, telephone, radio, and computer set the stage for this unprecedented integration of capabilities. The Internet is at once a world-wide broadcasting capability, a mechanism for information dissemination, and a medium for collaboration and interaction between individuals and their computers without regard for geographic location. The Internet represents one of the most successful examples of the benefits of sustained investment and commitment to research and development of information infrastructure. Beginning with the early research in packet switching, the government, industry and academia have been partners in evolving and deploying this exciting new technology4 6.The history of the Internet begins with the development of electronic computers in the 1950s. Initial concepts of packet networking originated in several computer science laboratories in the United States, Great Britain, and France. The US Department of Defense awarded contracts as early as the 1960s for packet network systems, including the development of the  ARPANET(which would become the first network to use the  Internet Protocol.) The first message was sent over the ARPANET from computer science Professor Leonard Kleinrocks laboratory at  University of California, Los Angeles(UCLA) to the second network node at  Stanford Research Institute(SRI)4. 7. Access to the ARPANET was expanded in 1981 when theNational Science Foundation(NSF) funded theComputer Science Network (CSNET). In 1982, theInternet protocol suite(TCP/IP) was introduced as the standard networking protocol on the ARPANET. In the early 1980s the NSF funded the establishment for national supercomputing centers at several universities, and provided interconnectivity in 1986 with theNSFNETproject, which also created network access to thesupercomputersites in the United States from research and education organizations. CommercialInternet service providers(ISPs) began to emerge in the late 1980s. The ARPANET was decommissioned in 1990. Private connections to the Internet by commercial entities became widespread quickly, and the NSFNET was decommissioned in 1995, removing the last restrictions on the use of the Internet to carry commercial traffic4. 8.Since the mid-1990s, the Internet has had a revolutionary impact on culture and commerce, including the rise of near-instant communication byelectronic mail,instant messaging,voice over Internet Protocol(VoIP) telephone calls,two-way interactive video calls, and theWorld Wide Webwith itsdiscussion forums,blogs,social networking, andonline shoppingsites. The research and education community continues to develop and use advanced networks such as NSFsvery high speed Backbone Network Service (vBNS),Internet2, andNational LambdaRail. Increasing amounts of data are transmitted at higher and higher ___________________________________________ exploring the internet by Clive C. Sanford 4http://www.internetsociety.org/internet/what-internet/history-internet/brief-history-internet#Origins(accesed on 03 march 2014) speeds over fiber optic networks operating at 1-Gbit/s, 10-Gbit/s, or more. The Internets takeover of the global communication landscape was almost instant in historical terms: it only communicated 1% of the information flowing through two-waytelecommunicationsnetworks in the year 1993, already 51% by 2000, and more than 97% of the telecommunicated information by 2007.[1]Today the Internet continues to grow, driven by ever greater amounts of online information, commerce, entertainment, andsocial networking4. 9.The Internet has revolutionized the computer and communications world like nothing before. The invention of the telegraph, telephone, radio, and computer set the stage for this unprecedented integration of capabilities. The Internet is at once a world-wide broadcasting capability, a mechanism for information dissemination, and a medium for collaboration and interaction between individuals and their computers without regard for geographic location.3 10. The graph below shows how the expansion of internet from 1996 to 2014. Sri Lanka as a developing country 31mpeople out of hundred use intenet accordind to the cences given by the international telecomunucation union. Internet users per 100 inhabitants Source:International Telecommunications Union POSITIVE IMPACT OF THE INTERNET POSITIVE IMPACT OF THE INTERNET 11.Educational achievement is perhaps of secondary importance to many of the children; however, it too seems to be a real advantage. From 10 years of age onwards, there is a pressure from school to get the internet and a sense that access to the internet allows the willing student to attain a higher quality of extra information relevant to the subjects.4 12.This research suggest that it also has a role re-engaging some of the educationally disengaged, as they enjoy the control and fun of working with a PC. It can also enable the academically able to find more relevant information and research more effectively. For some though, who are not particularly interested in schoolwork, they remain uninterested whether they have internet access or not. 13.Research about the Internet generally has focused on social effects, such as psychological well-being; for instance, children are more likely to use the internet when they feel lonely. A study by Michigan State University has found that the internet has had a positive effect on reading but not mathematics. One explanation is the internet is a text rich environment with fewer opportunities to foster mathematics or science skills; however, both the Internet and children are changing. Students increasingly use visualization, which can relate to mathematics and science as much as creative writing.4 14.The internet can facilitate a game like learning environment, which is highly motivating and interesting to students. Unlike in traditional classrooms, students do not sit across from the teacher, hold a textbook, and take a final exam. Instead, they can explore new information on the internet like a game combining both the learning journey and entertainment. More research is needed in this area as additional online games are built specifically for history, mathematics and science. Gaming has the potential to have a different kind of cognitive impact than traditional learning. 15.The internet’s is more exciting and challenging as a research environment than earlier media because it is a complex virtual, social and physical world that school children participate and co-construct, rather than something that is merely watched TV or PC. It becomes a complex virtual universe behind a small screen on which developmental issues play out in old and new ways, offering new views in to the thoughts, feelings and behaviours of schoolchildren’s. This universe will continue to expand as web-connected cell phones and other new internet applications emerge. Thus, existing theoretical models, research programmes and methodological techniques in developmental psychology are both challenged and stimulated by interactions between youth and the internet.5 16.According to the research done by three Japan universities regarding â€Å"Children and the Internet in Japan†, they identified that junior high school students enrolled in the school that use the internet had higher skills for practical use of information compared to students in the school that did not use the internet in its classes. This indicates that internet use in school activities helped in increasing the ability of students to use information practically. In this research, they proposed that â€Å"skills for practical use of information† are composed of six sub skills, namely, skill of collections, the skill of judgment, the skill of expression, the skill of processing, the skill of creation, and the skill of communication. In terms of these skills, students in the school that used the internet in its classes had particularly better skills of collection, judgment, expression, processing and communication compared to the students enrolled in the school that d id not use the Internet in its classes.5 17.Students possibly will feel bored if they only study from textbook day by day. That is why internet can be good alternative media to improve students’ motivation in studying. By using internet as a learning media, students can see relevant pictures or animations, which are related to lesson. Based on some reliable researches, students’ motivation in studying can increase fast if teachers or lectures use pictures or animations in explaining lesson.5 2-1 RESTRICTED Unethical Act Among Contractors: Class F in Selangor Unethical Act Among Contractors: Class F in Selangor 1.0 INTRODUCTION Contractors are the independent entity that agree to construct certain number or quantity of goods, material, equipment personnel ,or services that meet the requirement of specifications at a mutually price with a specific timeframe with another independent entity call contractee or project owner (Oxford Times). All contractors are rated Class F are Bumiputera. According to Article (160(2)) the concept of a bumiputra ethnic group in Malaysia was coined by activist Tunku Abdul Rahman. It recognized the special position of the Malays provided in the Federal Constitution of Malaysia, in particular Article 153. But, the constitution does not use the term bumiputra; it defines only Malay and aborigine (Article 160(2)).This means that the contractor is Class F Bumiputera contractors and do not need to apply for Recognition of Bumiputera. According to PKK (Pusat Khidmat Kontractor) until 26th June 2010 there are 4210 registered class F contractors in Selangor. A countrys economic system, irrespective construction industry plays a role in, construction industry plays a substantial role in a countrys national economic system (Zantanidis Tsiotras, 1998). Indeed, this sector is an important employer of a nations workforce as it employs between 2% to 10% of total workforce of most countries (Abdul Rashid Hassan, 2005). Malaysia has gained an impressive economic growth during the last three decades (Abdul Rahman et al, 2005) and this sector has employed an estimated 798,200 workforce nationwide in 2004 (CIDB, 2006). The Malaysian Government has given a much needed boost to the countrys construction industry under the 9th Malaysian Plan where a total of 880 projects worth RM15billion is to be tendered (The Star, 2006). It should be foregrounded that the issue of poor quality in the construction sector has, nevertheless. been identified as a major concern even as far back as the mid 1980s (The Star, 2006). Generally, it is a rule that constructi on projects must be completed within the planned cost, scheduled time and required quality. Quality may sometimes be ignored in this industry to cut the costs or to shorten the project time (Turk, 2006). To deal with the low quality problem faced by the industry, quality management is seen as an approach to achieve the required level of quality of the end product and has been given great attention worldwide over the past three decades (Hiyassat, 2000; Berawi and Woodhead, 2005). However, there is a perception that majority of quality related issues are caused by human factor. In response to that perception, a study was performed to look into the relationship between professional ethics among participants of construction sector and the quality related issues in Malaysian construction sector. It should be noted that for this purpose of survey, contractors and clients are regarded as professions and they are required to demonstrate a high degree of professionalism in performing their t ask, in response to the Governments effort who has introduced the National Integrity Plan to enhance integrity and ethics in the nation. Unethical acts of fraud, waste, abuse, and corrupt practices are what receive prominent treatment in the media worldwide. Such as inappropriate gifts, unauthorized payments, and fiscal infractions are the unethical act problems most noted. The Conference Board in New York reported that the above issues have widespread agreement on each of these issues as being a serious concern among the leaders of the free world, including those in the United States, Canada, Japan, and Australia. Due to the increased of public awareness toward the contractor unethical acts and also decreased of public tolerance for wrong-doing, it is important for contractor to focus specifically on the question of how professional ethics should be incorporated into awareness of individual to make sure every projects should be completed as standard. The ethical statement can describe the act was right or wrong, or act with a right or wrong which it can provide a line of distinction between good and evil of the act or the tendency of a person or at least it can develop guidelines that can be made with various moral considerations(J.L Mackie, 1971). Ethical act are very important because it use to determine the thoughts, actions and behavior of members of the organization to fulfill their responsibility and trust as an employee. It is also to create statements and coordination between the contractors as a key institution for national development. Ethical act also important to maintain and improve client confidence in the organization, 84% of FMIs respondents said that theyve seen an unethical act committed in the construction industry in the past year is an alarming statistic. Contractors, can take little comfort in the probability that incidence of unethical behavior is just as high in other industries these days. FMI had offer f our solution and one of the solutions is to stiffer the penalties for those caught in unethical or illegal acts is the least likely to succeed. Secondly, the FMI had suggest to develop an industry-wide code of ethics which these codes of ethics need to be enforced in every country. A less formal but corollary solution would hit closer to home. Companies should place more emphasis on social responsibility in their dealings with other firms. This approach is easier said than done, of course, although a few respondents in the survey say they have walked away from projects or companies and suffered short-term consequences as a result. They did not indicate, however, that they regretted their decisions in the long term. Training in ethical conduct is the fourth solution, and its the one that holds the most promise as long as it is coupled with commitment to these practices from the top ranks of any construction company. The FMI report states that unethical acts can signal a failure of management to know how to get the job done the right way. 1.2 Problem statement Due to many issues in our country regarding construction industry that lead to the unethical act by the contractors in running the projects such as the issue on the Kuala Lumpur Middle Ring Road 2( MRR2 ), Matrade building and also the issue on the Navy Recruit Center. If this ethical issue still going on in our construction industry, it will affect our construction quality. According to the Works Minister Datuk Seri S. Samy Vellu, more than 18,000 contractors and sub-contractors were either paid late or have yet to receive payment for completed work totaling RM23.7billion since 2000. This is a very huge sum, about 14% of the allocation for development projects under the 9th Malaysia Plan. The Construction Industry Development Board (CIDB) had carried out a six-month survey on 330 contractors, in which 273 cases of payment problems involving RM877.8mil were reported. Another example for the issue in Malaysian construction industry is the Plaza Rakyats project. The government will iss ue a warning notice to the Plaza Rakyat project contractors to continue the project as early as next week, initially, and if defaults, the tender will be forfeited. Minister of Federal Territory and Welfare Commissioner, Datuk Raja Nong Chik Raja Zainal Abidin said, a notice will be given to contractors in a week or two so that they continue construction work. 1.3 AIM AND OBJECTIVES OF THE RESEARCH. The aim of this research as far as the unethical act among contractors class F in Selangor is concerned, is to identify the effect in the construction quality. These main objectives are broken down to more specific objectives in order to better understand the topic at hand. To achieve the desired aim of the research, there are some of the objectives had been choose for this research. Objectives for this research are: Assess the level of professional ethical standards and its practice in the Selangor construction industry, To identify the problems associated to unethical acts in construction industry Determine the role of professional ethics in improving quality management in construction industry. 1.4 Organization of Study Chapter 1 introduces the research topic. It discussed about the unethical acts, definition of contractor, definition of bumiputera, issue related to unethical acts in construction industry problem statement and the objectives that initiated this study. Chapter 2 involves the extensive review of literature relating to the relevant topic of the subject matter of research including the professional ethic and relationship between ethic and construction. Chapter 3 discussed the methodology used in this study. It includes the developed hypothesis and data collection methods. It also includes a brief explanation on the data analysis methods. Chapter 4 reports data analysis and findings of the survey obtained from the findings. Chapter 5 involves detail finding and discussion on the result of survey base on the analysis. Chapter 6 present conclusions and recommendation based on the findings of the study. Key recommendation and their future prospect have been outlined which may assist in future plans to facilitate knowledge sharing plan in school. CHAPTER 2 LITERATURE REVIEW 2.0 Introduction In this chapter a great extent of literature of relevant concepts are being reviewed in order to get insight of and identify variables which have impact on the objectives of this research. The researches which are done by different scholars and researches will be reviewed. 2.1 Quality In Construction Industry Quality is a measure of excellence or a state of being free from defects, deficiencies, and significant variations, brought about by the strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements. ISO 8402-1986 standard defines quality as the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs Since tribal chiefs, kings, and pharaohs ruled the issues of quality have already existed (Gitlow, 2005). In a project scenario, quality can be defined as meeting the legal, aesthetic (Arditi Gunaydin, 1997) and functional requirements of a project (Berawi, 2006). Customers nowadays place more emphasis on the quality of products rather than the price which was the major concern in the past. Hence, a rapid expansion of international competition in quality has occurred (Tsiotras Gotzamani, 1996; Abdul Rahman Berawi, 2002). In America, the professional societies have prepared codes of ethics since before early twentieth century. These have been incorporated to a greater or lesser degree into the regulatory laws of various countries. Such as The Institution of Civil Engineers (ICE) in the UK, they have a code of ethics incorporated into its standards of conduct and as for Canadian societies of professional engineers likewise have such codes of conduct as well (Bowen, P., R. Pearl and A. Akintoye. 2007). Mainly for practical and professional use, codes of ethics are developed for supplementing the building codes and other acts of law. These ethical aspects were considered based on mans natural morals (Darabarek Symotink, 1999). In terms of quality in construction industry, Turk (2006), citing Arditi Gunaydin (1999), mentioned that à ¢Ã¢â€š ¬Ã‹Å"high quality building project includes factors like the design being easily understandable and applicable, conformity of design with specifications, economics of construction, ease of operation, ease of maintenance and energy efficiency. According to S. Fryer, Buro Happold, UK (2007), no matter how clever or elaborate the design of a structure is, any construction project will ultimately be judged on the quality of the finished product. Zantanidis Tsiotras (1998) and Abdul Rahman Berawi (2002) mentioned the expectations for quality construction projects will continue to grow rapidly as the number of affluent, educated and quality conscious customers are increasing. With the globalization of economy, construction firms worldwide are actively engaged to achieve internationally accepted quality levels to ensure their position in the emerging international market especially in those developing economies. Thus, the need to have a proper system that ensures quality is critical, coupled with high level of attention paid to quality management in construction industry (Abdul Rahman, Berawi, et al, 2006). Scholars indicate that quality management has been adopted by many countries in their construction industry including Hong Kong (Leung et al, 1999; Au Yu, 1999 and Tang Kam, 1999), Singapore (Low Omar, 1999 and Low Yeo, 1997), Greece (Tsiotras Gotzamani, 1996 and Zantanidis Tsiotras, 1998), Turkey (Turk, 2006), Jordan (Hiyassat, 2000), Saudi Arabia (Bubshait Al Atiq, 1999), Sweeden (Landin, 2000), United States (Chini Valdez, 2003), South Africa (Rwelamilla, 1995) and Malaysia (Chew Chai, 1996). As for Malaysia,we have the code of ethics for co ntractor which need to be followed by the contractors. In that code of ethic it emphasizes more about the level of professionalism, productivity, and quality. Excellence in the construction industry is very much determined by the level of efficiency, productivity, quality and professionalism in the delivery services. The delivery of construction services is connected directly or closely related integrity of the construction contractors in the performance responsibilities. This aspect has been dealt with when Construction Industry Master Plan (CIMP): 2006-2015 enacted. CIMP has given special emphasis on increasing productivity, image and professionalism in the construction industry as the strategic thrusts of this industry to greater high. For this purpose CIMP also has proposed legislation Code of ethics to further strengthen the practice of values and moral ethics among contractors in the country in implementation of construction works. Many developers were also fined for not confo rming to the Housing Development Act, including not preparing reports on schedule, especially work progress reports every six months (NST, 2010). This quality in our construction industry can be improved if everybody doing their part. For every developer, starting a new housing project is a new business. So, if they understand their responsibility as a developer and follow the agreement, they must complete the projects according to the dates set. According to Michael S. Poles, the quality of the construction can be control by competence supervision. It is the duty of the contractor to complete the work covered by his or her contract, in accordance with the approved plans and specifications. The contractor must carefully study the approved plans and specifications and should plan their schedule of operations well ahead of time. If at any time it is discovered that the work which is being done is not in accordance with the approved plans and specifications, the contractor should immed iately correct the work. In order to assure that the work being done is in accordance with the approved plans and specifications, the contractor must always supervise, and coordinate of all of the work that need to be completed. 2.2 Professional Ethic in Construction Industry Profession is an occupation that requires both advanced study and mastery of a specialized body of knowledge and undertaken to promote, ensure or safeguard some matter that significantly affects others well being (Vee Skitmore, 2003). Almost every profession has its codes of ethics to provide a framework for arriving at good ethical choices. Therefore, professional ethics is a system of norms to deal with both the morality and behavior of professionals in their day to day practice, and ascribes moral responsibility not to an individual, but to all professionals practicing in a particular profession. For the building and designing professions, the incalculable value of human life demands nothing less than the highest moral considerations from those who might risk it otherwise (Mason, 1998, cited in Vee Skitmore,2003). Professional ethics concerns the moral issues that arise because of the specialist knowledge that professionals attain, and how the use of this knowledge should be governed when providing a service to the public (Ruth Chadwick, 1998). The construction industry is a perfect environment for ethical dilemmas, with its low price mentality, fierce competition, and paper thin margin (FMI, 2006). Jordan (2005) stated that unethical behavior is taking a growing toll on the reputation of the industry. From a survey conducted by FMI, 63% of the respondents whom are the construction players feel that construction sector is tainted by unethical conducts (FMI, 2006). Surveys conducted by researchers in Australia (Vee Skitmore, 2003) and South Africa (Pearl et al, 2005) identified several unethical conducts and ethical dilemmas in the construction industry such as corruption, negligence, bribery, conflict of interest, bid cutting, under bidding, collusive tendering, cover pricing, frontloading, b id shopping, withdrawal of tender, and payment game. It is evident that there exist significant areas of concern pertaining to the ethical conducts practiced by the construction professionals. There are many other efforts taken to increase the ethical standards and integrity among the professionals in construction sectors worldwide. According to Pearl et al (2005), the regulatory professional Acts relating to the built environment professional sector in South Africa were totally overhauled in the late 1990s and a new suite of professional Acts were promulgated in 2000 to enhance the professionalism. Meanwhile, in America, the Construction Management Association of America (CMAA) has updated its code of ethics to include a wider range of professional services as well as professional services among construction players (CMAA, 2006). A Standard of Professional Conduct to govern the ethical practices in the American civil engineering profession was published by the American Society of Civil Engineers (ASCE, 2007). On the other  hand, Australia has their own codes of tendering to enhance fairness and transparency (Ray, 1997). In Malaysia, the government is very serious about improving ethics in both public and private sector. For instance, the construction industry has introduced codes of ethics for contractors to encourage self regulation among the contractor in this sector (The Star, 2006). Stakeholders of construction projects were asked to enforce the existing code of ethics to safeguard the engineers good name (The Star, 2006). The Construction Industry Development Board (CIDB) of Malaysia also host integrity courses for contractors to promote the importance of integrity and plans to make the course as a pre9requisite for contractors when renewing their registration (The Star, 2006). Finally, the launching of the Construction Industry Master Plan (CIMP) by CIDB in 2004 also had in the master plan an objective to enhance professional ethics in the local construction industry (Construction Industry Master Plan 2006 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2015). According to Housing and Local Government Minister Datuk Seri Kong Cho Ha, 1,345 developers and more than 5,000 directors of such companies involved in problematic projects have been blacklisted because they abandoned housing projects and also those that were not completed on schedule. They are not only been blacklisted, they also fined for not conforming to the Housing Development Act, including not preparing reports on schedule, especially work progress reports every six months(NST 2010). 2.3 Relationship between Professional Ethic and Quality Related Issues Besterfield et al (2003) mentioned quality is dependent on ethical behavior, whereby quality and ethics have a common care premise which is to do right things right and it is a proven way to reduce costs, improve competitiveness, and create customer satisfaction. It is evident that low  ethical standards among construction professional will lead to quality problem. These issues were highlighted in the media and received great concern of public (Fleddermann, 2004; NST, 2004; and RTM, 2006). As an example, the ethical related case in the construction industry was the collapse of the Hyatt Regency Kansas City walkways (Fleddermann, 2004). It is a hotel project in 1970s with walkways suspended over the large atrium. With the intention to save the cost, the subcontractor for the fabrication and erection of atrium steel suggested changes in the structure and it was approved by the consulting structural engineer. During the construction, part of the atrium collapsed and the engineer came out with the report saying that the design was safe and ready to be opened for business in 1980. The tragedy happened one year after the completion of the project during a dancing party in the atrium lobby. Some of the walkways on which people were dancing collapsed onto the crowded atrium floor, leaving more than a hundred people died and almost two hundred injuries. Investigation was then conducted by the Missouri Board of Architects, Professional Engineers and Land Surveyors reported that the original design was only marginally acceptable to the Kansas City building code where the walkways would only have had approximately 60% of the capacity required by the code. The situation was even worse in the new design proposed by the steel subcontractor and approved by the engineer. The consultant was found negligence in its investigation of the atrium collapse and places too much reliance on the subcontractor. Therefore, the engineer has been charged for negligence, incompetence, and misconduct. Both the engineer and the consultant firm lose license of practicing. This case strongly indicates that unethical behaviour will lead to quality problems and structural failures. In Malaysia, as an example, a newly opened specialist hospital in Johor Bahru was closed due to fungi attack on the equipments and walls (RTM 2006). It was found that many of the hospitals equipments such as oxygen piping and sewerage system are not according to the specifications. This clearly shows the poor ethics of the contractor who failed to do right things right. The contractor was given three months to rectify problems including leaking pipes, broken ceilings and faulty air conditioning ducts (NST, 2004). Another substandard quality of construction project in Malaysia is the RM238 million Middle Ring Road Two (MRR2) flyover which was closed to traffic after cracks were found in 31 pillars and structural movements were detected (The Sun, 2004). The Government engaged an independent consultant from the United Kingdom to investigate the defects. The independent consultant identified that design deficiencies and improper anchoring of the columns to the crossbeam were the main cau se of the cracks (NST, 2004). Design deficiency is found to be a negligence on the design team and the repair works was then carried out at an estimated cost of RM20 million. Contractors confront dozens of issues, many of which have substantial impact on their own self or organization, as well as others involved in the project. Many decisions have a straight forward answer determined by contract language or budget. Some, however, require entering an indistinct gray zone where the contractor must use best judgment to devise a course of action. Ethical questions raised include: what happens when professional codes and regulations lag behind technological innovations; what precautions must engineers take when trying to balance the benefits, new technologies bring against risks to public safety, often associated with engineering innovation and what are engineering and corporate responsibilities to the public for failed innovation; and should he hold then payments for the benefit of his organization. Often these challenges are managed with little or no preparation or formal guidelines and sometimes with negative results. Engineering ethics is attracting interest in colleges of engineering throughout the world. Therefore, the new technology must address the human being as its central subject and has to be introduced by ethics (Cywinski, Z. 2001). The construction of the new national palace at Jalan Duta, Kuala Lumpur has doubled in a period of four years from RM400 million to RM 811 million. Contracts for the construction were awarded to three companies through direct negotiations instead of open tenders ( NST 2003). Government will focus on overcoming the problem `leakage of tenders in the Ninth Malaysia Plan (RMK-9) are exploring the possibility of tightening conditions of the application to the contractor class F. Entrepreneur and Cooperative Development Minister Datuk Mohamed Khaled Nordin said the conditions were studied for class F contractors license applican t is to ensure that applicants undergo interview, examination, has offices and operations background of the net. The number of contractors has increased dramatically recently that 46.983 of the contractors registered with the Contractor Service Centre (PKK) in the country. Of the total, 35,544 are Class F contractors. The contractors will face intense competition in seeking jobs or contracts, and more disturbing is the number of contractors that own more than the number of contracts offered, especially from the government. CHAPTER 3 RESEARCH METHODOLOGY 3.0 Introduction This section describes the methodology used in conducting this research. It starts by describing the sample selection, research design, variables and hypothesis and continues with the description of the methods of data collection and data analysis. Finally, some of the limitations and key assumption of the findings are described. Primary source were used to collect data from the sample to assess the perception of respondents toward knowledge management and knowledge sharing, the school culture and work environment, individual barriers and organization barriers toward knowledge sharing. The selected data was tested and conclusions were drawn. There are 6 procedures used in completing this study. First, a review of literature was conducted. The review was focused on the emergence of knowledge economy and knowledge management. Then the roles of knowledge sharing were discussed. A further potential barrier toward knowledge sharing was reviewed. Variable which has affected on knowledge sharing was also discussed. The review of literature served as a frame work for the study, and offered contrasting opinions of the authors. Second, a rough draft of the survey instrument and possible methods of testing and assessment of variables was done. A questionnaire was tested and validated before implementation reviewed for preventing any bias and avoiding errors. Questionnaire survey is the main research methodology used to achieve the research objectives. Five hundred (500) sets of questionnaires were distributed to targeted respondents in Selangor state by post ,via the internet , by hand. Targeted respondents ranging from consultant firms and contractor personnel within Selangor area .To ensure the reliability of the questionnaire survey, the sample size taken was then compared to match with the sample size recommended by Krejcie and Morgan (Sekaran, 2000: 295). Third, a survey was implemented. Questionnaire was sent to the list of all class F contractors which registered under PKK within Selangor area. Fourth, the result of the survey was assessed using Statistical Package for Social Science (SPSS) 15.0 software. The result were tested and presented with illustration. Scores were converted into percentage rating and presented in graphical format using excel 2003. Fifth, the conclusion was driven from data analysis and findings. Important points were highlighted and recommendations were given. Research Design The research was designed to explore the unethical acts among contractors regarding the issue on the construction quality in Selangor. The data produced from the research was then analyzed so that the following objective could be achieved. The stated hypothesis could be tested and further recommendations could be made with regard to specific focus of this research. To identify areas for further, and more specific areas of research Quantitative method utilizing survey method is used for gathering information. Variables Variables are classified into three groups including dependent variables, moderate variables and independent variables. Dependent Variable Unethical act is considered as dependent variable Independent Variable Contractors and construction quality are considered as independent variables. Data Collection A comprehensive literature review and self administered questionnaire were used to provide an insight to the study. These instruments provide informative ideas on the possible issued experienced by factors affecting perception of respondents about unethical acts will effected the construction quality The survey aimed is to target contractor class F in Selangor. The aimed was chosen because of two reasons. Firstly, there are too many contractors class F in Selangor. Secondly, the issues that involved contractor class F are more major in our construction industry and this give the author the possibility to sent the questionnaires to some contractor firm on one to one basis. The author would have preferred a larger sample of respondents to participate in the research, but due to limitation of time, this was not possible. The survey was aimed at the contractors class F in Selangor area. Data were collected from 500 contractors selected randomly from different firm and background. Questionnaire was send through mail and respondents were given three weeks to respond before they were send back to the author. 3. 4 Research Assumptions When conducting this study a number of assumptions have been made with regards to the literature reviewed and the respondent sample selected. These assumptions are identified as below. The secondary data collected from various resources have been assumed to be valid and based on the research done by authors. The secondary data has been assumed to present public interest as a whole and without any biases. The respondents have responded to the questionnaire without any biasness and to the best of their abilities. Instrumental Biases In administrating the questionnaire, there has been a significant degree of biasness that was exercised by researcher. The questionnaire was developed based on the respondents. This minimizes the respondent biasness to a certain level. Various scaling methods were utilized where appropriate to minimize biasness. Sample size Approximately 500 contractors were randomly selected from the target population of different firms. The simple random sampling method was utilized in this situation. This was to deter any sample biasness that could have distorted the result. The respondents samples of contractors were surveyed in the Selangor area. The contractors who responded came from various hierarchy levels of different firms. Scaling of Questionnaire In order in measure the operationally defined and elements of a variable, the rating scale has been used to elicit responses with regard to the person studied. A number of rating scales techniques and measurements were utilized when administrating questionnaire involving Category scale and Likert scale. Example: Category Scale What is your highest educational qualification? PHD degree Bs degree Ms degree Diploma/STPM Knowledge sharing is fully supported by school administrator. Extremely disagree/ Strongly disagree/ Disagree /Agree /Strongly Agree/Extremely A