English Language Learning Essay

FLASH BACK:- Of all the languages in the world today, English deserved to be regarded as a world language. It is the world’s most widely spoken language. It is the common means of communication between the people of different nations. English language learning has its own prospects. Teaching of English as a foreign language for many of our students and a second language for some in our country has not yet achieved the decided aim of free communication of thought. With the down of independence, some Indians demanded that English should quit India with the English. This demand for the abolition of English from this country was due to domination and exploitation of the British people of our country. Some other people argue that if the study of English be killed in India, the progress of this country will be seriously affected. Because of this controversy, the most important problem for us is to decide, what place should be assigned to English in free India. The teaching of English at schools and colleges should be more practical and language oriented in order to achieve the limited objectives of learning this important world language. The content and character of English language as well as the method of imparting have to undergo a change. It should be taught as a language of comprehension and communication. The basic knowledge of grammar and structure of language needs to be modified. A practical command of the non literary and non technical practical command of the non literary should be acquired at the school age. MY JUSTIFICATION:-It is my own observation from my teaching experiences after going through the problems of the students in English language Learning among the large numbers of students which can be sharply pointed  out that the most unfortunate aspect about the learning of English in the Secondary and Higher Secondary School is the lack of any clear cut and attainable aim of standard of achievement in English Language Learning. This problem can be classified into different categories—— (1) Lack of Clear Cut Objectives. (2) More Emphasis on the Mother Tongue. (3) Poor base or defective Teaching in Primary Level. (4) Improper Guardianship at Home. (5) Lack of Supportive English Speaking Environment. (6) Non Motivated and Non Interesting as well as Substandard textbooks. (7) Unsatisfactory Evaluation System. (8) Dearth of Competent Teachers. (9) Indifferent Administration. (10) No Individual Attention. (11) Not Using Proper Audio-Visual Aids. So to eradicate the problems of English language learning it must be taken some necessary steps which will prospect the English language. These remedial measures are the main tools of the prospective ideas in regard to the development of English language learning. The important measures are as follows——————— A. INTRODUCTION OF DIRECT METHOD :- The direct method of teaching English was oriented in France. It is a method by which we teach English directly. Direct method of teaching a foreign language through conversation, discussion and reading in the language itself without the use of pupil’s language, translation, the study of formal grammar. Therefore, this method is otherwise known as reformal method. Following are some advantages or merits of the Direct method†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ (1) It promote the ability of self thinking and self expression of English among the students. (2) It establishes a direct association between the word and its meaning. (3) It is the quickest way to understand, read, write and speak English clearly. (4) It lays more stress on oral work. B. USE OF STRUCTURAL METHOD :- In Structural Approach high priority is given to speech. The fundamental principle of structural approach is to develop the ability of speaking. In this method important is given to the child’s activity rather than the activity of the teacher. The teacher should make the students familiar with the given structures in three forms – spoken, printed and written. The main principle of structural Approach is drilling of new structures , words and phrases properly by which students will understand these properly. In this method direct meaning of the words should not be given to the students. The teacher should give the model sentences by using different words with proper meaning and clear idea. C. USE OF GRAMMAR TRANSLATION METHOD:- This method has much value if it is used judiciously. It is the easiest method by using translation. The teacher can easily make his students understand the meaning of the English Word. Its best advantage lies in the sphere of vocabulary getting. Through translation vagueness of meaning of the English word or phrase is avoided and word is associated with the native word. The child proceeds from the known to unknown English words with abstract ideas which are easily explained in the mother tongue. This method has been found in useful for a comparative study or understanding the difference of structures of sentences in English and the vernacular. D. USE OF AUDIO-VISUAL AIDS:- The main purpose of the use of Audio Visual Aids is to enable the teacher to make his lessons effective and interesting. Books and other printed  materials have been the basic tools of teaching and they are still of great importance. But audio visual aids make the situation more exciting, interesting and understandable for the students. They help to avoid excessive, empty and meaningless verbalization in teaching English. They provide direct sense experiences to pupils and help them to form clear and accurate concepts in English. E. SPECIFIC METHOD FOR TEACHING PROSE , POETRY:- While the teacher enters to the class to teach prose and poetry, his first attempt should be to motivate the students with his attractive ideas of thought. His introductory speech is always very important for the students motivation.Then teaching techniques must be applied; such as model reading by the teacher, reading loud by the pupils, exposition of difficult words, structure or line, silent reading by the pupils, comprehension test and lastly application test. CLOSING COMMENT:- In conclusion my suggestion is that English should not be compulsory rather it should be simple and utilitarian. When the student finishes school it is necessary that he should have gained during the six or seven years, a practical command over the language. It is possible only if we make the environment- situation friendly and future oriented. Teacher, pupil, guardian, society, authority†¦everyone must come forward and work together.

Police Administration Essay

Since the early part of the twentieth century, academicians and criminal justice practitioners have debated whether police officers should be required to have a college education as a minimum qualification to be hired. Today, there is general agreement that a college education will not necessarily make a person a good police officer, but a good police officer can be made better by having one. Many police executives believe formal college education can improve critical thinking skills of officers and that is becoming a more important factor as the complexity of police work continues to increase.1 According to a recent article in Police Chief Magazine â€Å"We expect (police officers) to understand and apply the law evenly. We expect them to grasp the nature of social problems and the psychology of people with different attitudes toward the law. We expect officers to professionally and effectively handle disputes involving people from varying cultural, racial and socioeconomic backgro unds.† 2 The importance of possessing a college degree by police officers seems to have substantial support in the literature. If the need or desire is established for the possession of a college degree by police officers, then how do they get one? Traditionally, a college program involved students attending classes at a â€Å"brick and mortar† campus. This was difficult for many officers that already had substantial work and family commitments. With the advent of online (internet delivered) college programs, it is possible for officers to enter or return to college and pursue a degree where previously it may not have been practical for them to do so. With that being said, does an online program sufficiently address the desirable attributes for police officers that the possession of a college degree represents? Historical Perspective for College Educated Police In 1916, August Vollmer, the former Chief of Police of Berkeley, California, was the first to emphasize the need for police officers to have college  degrees. At about the same time, the University of California at Berkeley began to offer law enforcement related courses.3 In 1931, The National Commission on Law Observance and Enforcement (the Wickersham Commission) gave â€Å"national recognition for higher educational standards and more professional police officers.†4 Although the issue of college education for police officers was not specifically addressed, it laid the foundation for subsequent calls to increase educational levels for police. Largely due to Vollmer’s influence, the University of California at Berkeley created a School of Police Administration in 1933, followed shortly thereafter by a similar school at Michigan State University.5 In 1936, Vollmer wrote in his book, The Police in Modern Society, that police officers should be required to have a colleg e education.6 In 1967, the President’s Commission on Law Enforcement and Administration of Justice made specific recommendations regarding increasing the level of police education. This report was followed by the passage of the Omnibus Crime Control and Safe Streets Act of 1968, which established the Law Enforcement Education Program (LEEP). LEEP, in part, provided grants and loans to officers to enroll in college and earn their degrees. This infusion of money created a large incentive for institutions to develop academic programs geared toward law enforcement. As police officers began to return to or enter college, some institutions created accelerated or nontraditional programs in criminal justice. Officers could receive credit for experience in related courses and some courses were configured so officers did not have to meet as often as traditional courses. These types of programs were usually administered through the college’s extension program. Today, many public and private institutions offer nontraditional programs that are delivered in the online or e-learning format. According to the National Center for Educational Statistics, in the 2000-2001 academic year, forty-eight percent of all four-year Title IV8 degree granting public institutions and thirty-three percent of four-year Title IV degree granting private institutions had degree programs for undergraduates that were to be completed totally through distance learning.9 Today there are an abundance of distance learning programs being marketed to police officers, especially online programs. The flexibility of the course schedule makes it attractive to busy students. Police officers can do their course work when it is convenient for them and some courses are designed to  be completed at the student’s own pace. Many departments have made strides in requiring some college education as a prerequisite for hiring but most have not. The high school diploma still exists as the most common minimum educational requirement. Even where departments have not required a college degree for hiring, many require or make it desirable to possess a degree for promotion. As early as 1989, the benefits to having educated officers were noted to include:10 †¢ Greater knowledge of procedures, functions, and principles †¢ Better appreciation of their professional role and it’s importance in the criminal justice system as well as in society †¢ More desirable psychological make-up, which includes such qualities as alertness, empathy, flexibility, initiative, and intelligence †¢ Greater range of interpersonal skills centered in their ability to communicate, to be responsive to others, and to exercise benevolent leadership †¢ Greater ability to analyze situations, to exercise discretion independently, and to make judicious decisions †¢ Strong moral character, which reflects a sense of conscience and the qualities of honesty, reliability, and tolerance †¢ More desirable system of personal values consistent with the police function in a democratic society Even back in 1978, though, researchers expressed reservations about the quality of criminal justice programs. The rapid increase in program offerings seemed to make some institutions gear their courses more vocationally than academically. Some recommendations were made to overcome what was perceived as major quality problems in college programs developed for police officers. In addition to perceived quality problems in criminal justice programs, there was a concern that police officers would take college courses just to get the degree. In 1979, Goldstein stated, â€Å"The factor that makes the whole movement toward college education for police personnel most vulnerable to attack is the emphasis which has been put on the acquisition of college credentials without sufficient concern for what is to be learned. Given the multitude of colleges and the number of people who attend them, the degree itself reflects little about the values or relevance of the educational experience.†11 Clearly, the need to ensure that a college program is delivering the appropriate academic curriculum is  critical. In the past, an officer attended a local school and it was more than likely regionally accredited. Today, online colleges can market themselves across the United States or even internationally, claiming accreditation from some official sounding group. Accreditation, curriculum, and instructor competence are all of critical importance in a college program. More than a decade ago, researchers articulated considerations that would be relevant as one considers the potential quality of an educational program. The recommendations included:12 †¢ No college credit should be given for police academy and similar training †¢ Technical and professional police subjects should be limited to a maximum of twenty-five percent of any curriculum †¢ A four-year baccalaureate degree should be the minimum educational qualification for entry into police service †¢ No one should be considered qualified to be a faculty member on the basis of experience alone †¢ Police education faculty should be held to the same standards as other college professors (i.e. Ph.D., master’s degree minimum; involvement in research and publication) These issues among others were discussed by a group of criminal justice related experts who were brought together in a nominal group setting to discuss online education and its potential effect on the future of law enforcement. The Nominal Group Panel As part of a California Peace Officer Standards and Training Command College project, a panel of interested professionals was formed to discuss future trends and events that may have an effect on law enforcement online educational programs in the next five years. It consisted of a Chief of Police of a medium sized police department, a professor who teaches online courses for a major public university and at a local community college, a deputy district attorney, a police officer who is a former high school teacher, a police officer who is a member of the executive board for a police officers association, the criminal justice program coordinator for the local community college, the editor of the local weekly newspaper, and a  counselor for a youth diversion program. There was consensus among the panel members that it is important for police officers to have a college education, and to possess the appropriate degree. The panel felt that a college education earned the traditional way (attending classes at a brick and mortar institution) was the best preparation for a person to be a police officer. The discussion included many of the issues published by researchers and criminal justice practitioners since the 1930’s. The panel felt it was critical for police officers to be socialized with diversified groups of people and exposed to differing viewpoints. The requisite skills of tact and diplomacy learned in a physically social environment, effective public speaking, and command presence are attributes that are learned and reinforced in a traditional educational setting. The panel recognized it may be difficult for a police officer to pursue a traditional degree due to family and work obligations. So what is this officer to do? Many of the officers returning to college or entering college for the first time have turned to online college programs. The panel concluded the flexibility of online educational programs was a tremendous opportunity for current police officers due to the demands of their course schedule. They also understood there was a proliferation of programs being marketed to police officers through police websites or law enforcement related magazines. Legitimate accreditation was a key concern about such programs. The panel members expressed that testing-retained knowledge could be problematic since testing is done in the same delivery format as coursework, and all tests were essentially open book. With regard to the value of such programs, panel members believed that a college degree earned through online programs was different than a college degree earned traditionally. The panel believed that criminal justice practitioners were overused in criminal justice programs especially in online programs. Their concern was the overall value of the college degree since true academic professors were not doing the teaching. They felt that for some disciplines, such as engineering, mathematics or history, an online program was sufficient. But when it came to being a police officer, class attendance and contact with other students face-to-face was preferred. The panel agreed, however, that much of what is done in a traditional setting could be done  online, such as submittal of written reports or studies and coursework assignments. The panel also felt that too much academic credit was given for experience in police work through online programs. The panel felt that rather than rely on a purely online program for an officer to obtain a four-year undergraduate degree, a cross or hybrid approach, with a traditional program could bring the desired benefits of both delivery methods. The Educational Hybrid Amy Fanter, a researcher in the field of hybrid education, noted that â€Å"Hybrid instruction, or hybrid courses refer to classes where there is a carefully planned blend of both traditional classroom instruction and online learning activities.†13 According to criminal justice researchers and practitioners (and supported by the expert panel) the most effective collegiate preparation for police officers are settings inclusive of a social environment. They should be exposed to other racial, ethnic, and diverse groups in an arena where ideas are broached, concepts discussed, and conflict is resolved through dialogue, research, and consensus. Many components of any particular course can be done using the online system (such as writing book reports, completing written requirements and posting of thoughts on issues). If a class was required to meet for a certain amount of time every week or every two weeks, or even once a month to be tested on retained knowledge, to be challenged by other students on stances taken on issues, to participate by speaking about issues, and so on, then the socializing of the officer can be effectively satisfied. No matter how effective, a distance learning program not offering this option will impact skills that might only be gained in this type of setting. Using a hybrid approach for coursework would allow for the flexibility of online educational programs and meet the some of the critical benefits of traditional programs. Those that may advocate for pure e-learning should remain mindful of the â€Å"soft skills† necessary for the modern law enforcement officer, and the best opportunities to acquire them. Conclusion The desire for a police officer to have a college education appears settled.  National commissions, criminal justice professional associations, academicians, attorneys, and courts have all expressed this view. The question remains; how does the individual peace officer best do it? Attending the traditional college program at a brick and mortar campus seems to be the preferred way. This method may not be practical for some officers, so the alternative of the hybrid approach should be considered. It blends many of the positives from both traditional and online programs. Certainly, there may be situations where even a hybrid approach is not practical. It seems Vollmer and many others would support an online program to gain at least the concepts and critical thinking skills a collegiate education offers. Progressive police agencies may take the lead to shape their future by entering into a partnership with a local public or private institution to develop a hybrid program to be implemented for their staff. In any case, police management should encourage officers and employees to return to college to earn their four-year degree. The result will be better staff and officers, and a better chance to meet the needs of today and tomorrow. ENDNOTES 1 Bueermann, Jim, â€Å"Redlands, California,† The Police Chief, August 2006, accessed February 1, 2007, available at www.policechiefmagazine.org 2 Bowman, Theron, â€Å"The Chief’s Perspective: Demolishing the Recruitment Myth,† The Police Chief, August 2006, accessed February 1, 2007, available at www.policechiefmagazine.org 3 Travis, Jeremy, â€Å"Education in Law Enforcement: Beyond the College Degree.† An address presented to the Center for Research in Law and Justice, Chicago, February 10, 1995, accessed December 19, 2006, available at http://www.ojp.usdoj.gov/nij/speeches/police.htm 4 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 1 5 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 4 6 Coons, Jeffrey, â€Å"Studies, Case Law, Quotes, Standards and Trends in Support of College Education for Police Officers.† An Information Paper for the Police Association for College Education, March 18, 2004, Accessed August 18, 2007, available at www.police-association.org 7 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 1 8 An institution that may participate in most Title IV federal student financial assistance programs, National Center for Education Statistics, accessed September 9, 2007, available at http://nces.ed.gov/ipeds/glossary/index.asp?id=465 9 â€Å"Distance Education at Degree-Granting Postsecondary Institutions: 2000-2001.† National Center for Education Statistics, accessed Sept 9, 2007, available at http://nces.ed.gov/pubs2003/2003017.pdf 10 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 10-11 11 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 24 12 Carter, David, Sapp, Allen, and Stephens, Darrel, The State of Police Education: Policy Direction for the 21st Century, (Washington, D.C., 1989) 27 13 Fanter, Amy, â€Å"Hybrid Education: The Future of Instructional Models.,† World Wide Learn, accessed September 9, 2007, available at http://www.worldwidelearn.com/education-articles/hybrid-education.html

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

HIPPA - Essay Example Reading current newsletters and journals would be pivotal since it provides update information on the new trends. The research would also encompass investigating how various related companies or organizations employ the HIPAA rules and regulations (Luxton, Kayl & Mishkind, 2012). While at this, I will be keen on the strengths and weaknesses of these organizations to ensure that the new practice redress any errors. Besides, personnel in the organization must also be interviewed to know their perceptions or attitudes towards the new policy (Luxton, Kayl & Mishkind, 2012). I would also study how the organization has attempted to comply with the HIPAA. All these will provide a good head start. I will be able to strategize a plan for the application of the HIPAA. Also, in order to ensure compliance, I would advise the physician about the security standards of HIPAA. They demand that they have the obligation of securing the patient electronic medical information (Luxton, Kayl & Mishkind, 2012). It should be done by using a series of procedures and mechanisms that aim at restoring the confidentiality, availability and integrity of the information. That is to say, that the physician is accountable of the medical information about the patient. In a case of any irregularity, the physician will be held responsible (Luxton, Kayl & Mishkind, 2012). The new medical practice location should be in a place enough security that will provide ample protection for both the electronic media and other documents. The information here is the one that is collected, maintained, used and transmitted by the physician (Luxton, Kayl & Mishkind, 2012). The general practitioner must know that the more discrete the new practice is regarding the medical information of pa tients, the more trustworthy it will become. HIPAA controls the manner in which a physician can use and disclose the health

Music Incorporation Case Study Example | Topics and Well Written Essays - 750 words

Music Incorporation - Case Study Example The effect of the music, especially the Swat music, will instill pride in both natives of Bahrain and expatriates. The soothing rhythms of artists such as Ahmed Salmeen and Rashed Al Hemeli will make all people from Bahrain feel a unity. This is the aim of the documentary; to make natives and expatriates of Bahrain feel a togetherness. The whole point of this documentary is to show the usefulness of expatriates, thus allowing natives to accept them as equal citizens. I chose three songs that would fit in with this documentary. They are Yahia Omar Gal Ma shan and Inna Wajdi by Ahmed Salmeen and Mudhena Wa Laisa by Rashed Al Hemeli. The reasons for these particular songs would be the representation of Bahrain. These two artists are popular Swat musicians. My target audience, anyone from Bahrain over the age of sixteen interested in the contributions of expatriates, would be familiar with these songs and format. Swat is a mixture of Persian, Indian, and African blues type. It is very mellow and upbeat, which is the tone I want for my documentary. I begin researching popular music from Bahrain. Swat was just one type of music I found on the Internet. Bahrain natives listens to various types of music, but Swat is the type that best described the mood I needed to get across to my audience. I went to http://zeryab.com/E/Aswat.htm. This had samples of Swat music. After listening to many samples of Swat artists, I chose Ahmen Salmeen and Rashed Al Hemeli. Their music was what I wanted to portray in my documentary. I mentioned three songs above, but both men have other selections I can chose as a backup if needed. The other reason I chose Swat is the Arabic influence. Bahrain is an Arabic country. Swat has the tone of the Imans' call for daily prayers. It is very moving for people with an Arabic background, or people who have chosen to live in the Middle East. The Swat music will make my documentary smoother. It will also hopefully make my audience more open to the message I am trying to send. Diary Entry To film this documentary I went to three diplomatic areas in Bahrain, filming around ten minutes. I went to the Bahrain Financial Harbor, the Ministry of Labor, and the Ministry of Education. While at these areas, I tried to film expatriates primarily. However, another focus was on expatriates and natives working together. At the Bahrain Financial Harbor, I filmed the outside of the beautiful building, before going in to film the expatriates. I interviewed several people, mostly men, but some women. After going to the Bahrain Financial Harbor, I went to the Ministry of Labor. Once again I filmed the outside, with people entry and leaving. I interviewed expatriates. I also decided to get some input from a few natives. All of the feedback I received was positive. Both expatriates and natives only had high regards for Bahrain. They portrayed Bahrain as a Middle Eastern country, but with all the amenities of the West. Finally, I went to the Ministry of Education. This stop helped me fil m more expatriates and natives working together. All together I filmed about an hour, which will be edited down to thirty minutes.

ECONOMICS 1. The Managerial theories of the firm seek to provide Essay

ECONOMICS 1. The Managerial theories of the firm seek to provide models characterised by realism in motivation, whilst recognising the continued importance of profit in the corporate environment - Essay Example As income taxes have risen over the past historical era, the outright impact of salary or bonus increases has been moderated somewhat. The incremental tax on income in the UK and the US is at about 50%, when all local and national income taxes are taken into account. Thus the standard supply and demand relationship demonstrates a curve, as shown below. Since taxes climb with income, the curve's change in slope is more pronounced: As compared to the turn of the last century, when income taxes were less than 10%, the total impact of increases in wages has therefore moderated. The second influence on this moderation has been the increase on the value of leisure time (Kokoski 1987). As the value of leisure hours has increased, the amount which needs to be paid to offset the value of leisure time has also increased, all else being equal. Group incentives can take the form of income increases (salary and bonus) or non-monetary rewards, such as additional vacation days. From a microeconomics standpoint, there is no difference between group pay incentives and individual pay incentives. There are psychological differences which can be substantial, however, depending on the type of performance being rewarded. An extreme example of the point above is an individual whose personal rewards far exceed those of the group, and in achieving his goals may actually be a detriment to the shareholders. An example of this might be Robert Eaton, who was the Chairman of the Chrysler Corporation at the time that his company was approached by Daimler-Benz. Eaton agreed to a plan whereby Daimler-Benz would merge with Chrysler, and he sold the Board of Directors and employees' unions on the plan. What he didn't reveal was that he stood to gain over $100 million personally if the deal went through. The resulting hue and cry was that Eaton "sold out" Chrysler, which was borne out by subsequent events. Chrysler's largest shareholder at the time, the Tracinda Corporation1, sued Daimler-Chrysler for over $8 billion for erasing nearly $38 billion of market capitalization due to the transaction (CNN 2000). Figure 2: Reduction in share price since merger (CNN 2000) Thus a personal incentive (for Eaton) was in direct opposition to the interests of the shareholders. Stock Options Stock options have the advantage of better alignment with shareholder expectations. The theory is that managers are

Project Management Essay Example | Topics and Well Written Essays - 1000 words - 5

Project Management - Essay Example ys 26 days 542 days 114 days 68% User requirements 214 days 120 days -6 days 114 days 0 days 100% Staff recruitment 48 days 40 days 8 days 48 days 0 days 100% Decoration 194 days 170 days 24 days 180 days 14 days 85% Staff training 60 days 60 days 0 days 0 days 60 days 0% Raising funds 40 days 40 days 0 days 0 days 40 days 0% Table 3: Schedule Variance for Kindergarten Planning Task Name Start Finish Late Start Late Finish Slack (Free) Slack (Total) Kindergarten planning 3/12 5/3 3/12 5/21 11.83 days 11.83 days User requirements 3/12 3/23 3/12 3/23 0 days 0 days Staff recruitment 3/26 3/30 3/26 3/30 0 days 0 days Location 4/2 4/11 4/2 4/27 0 days 11.83 days Decoration 4/11 5/1 4/27 5/17 0 days 11.83 days Raising funds 5/1 5/3 5/17 5/21 11.83 days 11.83 days The bottom bar of the tracking Gantt chart depicts the planned schedule for the tasks. The top bar indicates the actual performance and the percent complete for the tasks. Figure 1: Gantt chart tracking of Kindergarten Planning Se ction 3: PERT/CPM Analysis of kindergarten planning project In PERT/CPM analysis, three estimates are used namely; optimistic time denoted by (o), most likely time denoted by (m), pessimistic time denoted by (p). It provides a basis for establishing project variance and mean for each activity in the kindergarten planning. The activity is given by mean (Mean) = (o + 4m + p)/6; while its variance is; activity (Variance) = ((p - o)/6)2. The value obtained is the z-value which establishes the duration of the project in percentages. Table 3: Activity Variances and Mean Times ID Activity Optimistic time (days) Most likely (days) Pessimistic (days) A User requirements 18 21 23 B Staff recruitment 32 36 41 C Raising funds 47 51 55 D Decoration 47 55 57 E Staff training 8 10 14 Expected completion time Activity Expected completion time(days) Variance (days) User requirements 20.8 -0.2 Staff recruitment 36.2 0.2 Raising funds 51 0 Decoration 54 -1 Staff training 10.3 0.3 Variance is -0.7 days Activity ES LS EF LF Slack Critical path 1 User requirements 0 0 18 21 0 Yes 2 Staff recruitment 21 21 57 57 0 Yes 3 Raising funds 57 62 104 108 5 4 Decoration 108 108 163 163 0 Yes 5 Staff training 159 163 173 173 0 Yes Critical path is 1-2-4-5; the expected kindergarten completion time is 173 days. The kindergarten completion time is 173 days with a variance of -0.7. This considers p

Essay Example | Topics and Well Written Essays - 750 words - 79

Essay Example For life insurance it is the person, who is claiming the insurance, in case of general insurance the insurable interest must be present at place when the application for insurance is being made as well as during the claim of the insurance. The principle of insurable interest mentioned that the person or the object which is getting insured must have insurable interest in the object of insurance or the life of the person who is being insured. A person who has an insurable interest when the physical presence of the insured object gives him some gain but its non-existence will give him a loss. In simple words, the insured person must suffer some financial loss by the damage of the insured object. The owner of a commercial vehicle (be it a taxi/bus or tempo) has insurable interest in the vehicle because he is earning money by using that vehicle directly or indirectly from it. Same way owner of any bus or tempo or goods vehicle, if give that on rent still have the insurable interest on it as well as the person who is driving the same because indirectly he or she is earning money from it. But, if someone sells the vehicle then he or she will not have an insurable interest left in that vehicle because the individual already have earned money one time basis from the same. By analyzing this we can easily mentioned that ownership plays an important role in the evaluation of insurable interest. Same way every individual person has an insurable interest in his or her own life.. The subject of insurance can be any property or interests such as a house,car, a person’s life, or his or her liability that rises in significance of the death or injury of or damage to the property of another person.In insurance terms, the above-mentioned definition is known as insurable interest.(Korttermynversekering, 2013). The term is associated with sea and inland waterway transport. It means that the seller delivers goods and product

The Skill Portal as Information System for the IMI Coursework

The Skill Portal as Information System for the IMI - Coursework Example A PEST and interview data analyses have been done following a background study of the IMI's history, objectives and broader mission to provide training, support and service to the individuals and stakeholders of the automotive industry. Operations, value chain and stakeholder analyses are also done and relations between the IMI and the government and other training providers as well as private organizations are studied to understand the primary role of the IMI in the automotive sector. This project conducts interviews with leading professionals in the sector and focus on issues related to training and talent, lack of transparency, the need for an open and accessible information portal, ease of communication and networking, and the importance of training sessions, certifications and awards that would help develop a skills base for the automotive sector. ... This project proves the IMI's role in transformation of the automotive sector especially through upgraded techniques and methods such as the development of a Skill Portal and advanced information system and networking facilities. These issues are highlighted in the subsequent part of this discussion. ChapTer - 3 This section will focus on analysis of Stakeholder demands and provide a PEST analysis as also an operation flow diagram (to show slow op, long time etc). The initial analysis will be on the semi structured interviews and then on the operation flow charts of the basic services. This is followed by a PEST analysis and IMI stakeholder analysis. Part - I Interview Data Analysis In this section, the data analysis of semi structured interviews is presented. The interview questions are provided in the Appendix 1 given below. The response of each question is presented in the table. At the end, the comment /findings are given. The identity of each interviewee was coded to allow clear identification of the participant and ease of presentation. Identification Code Name Designation Division A1 Alan Mackrill Executive Director IMIAwards A2 Johnb Qualification Support Manager IMIAwards A3 Rob Head of Qualification development IMIAwards A4 Ian Head of customer compliance and Quality IMIAwards S1 Steve Head of Skill Development IMI - SSC S2 Michelle National Manager - IMI - SSC S3 Nesta Job National Manager- IMI - SSC P1 Lesley Head of Professional Body Professional Body P2 Sarah Career Development manager Professional Body P3 Jennih Professional Body P4 Karen G Professional Body C1 Linda Stans COO IMI Group Table: 01 Q1. Impact of changing technology on training and development A1 A2 A3 A4 S1 S2 S3 P1 P2 P3 P4 C1 Total Better

Exercise one Essay Example | Topics and Well Written Essays - 250 words

Exercise one - Essay Example The Appalachian Mountains is distributed in four major sections, these are the Appalachian plateau, ridge and valley, Blue Ridge and the Piedmont. Mount Mitchel is the uppermost summit point located along the low mountain range estimated approximately 6,684 feet. The ridges are evidently the hallmark of the Appalachian ridges. The Valley and Ridge and the Blue Ridge is made of rock formation that are narrow and differentiate the mountains from the neighboring valleys. The ridge tops extend to over a thousand feet above the neighboring valleys and are surrounded by serrated and rough sandstones. The top level of the valleys in the Appalachian Mountains are composed of shales and siltstones. Evidently, a great portion of the Appalachian Mountains is covered in thick forest tress that form a canopy all over the mountain range. On higher level of the mountain, it is engulfed in evergreen forests consistent with spruce and fir. On the other hand, the lower regions of the mountain is cover ed by trees with broad leaves like oaks and

What Justice means to me Essay Example | Topics and Well Written Essays - 750 words

What Justice means to me - Essay Example mbers since these laws were structured in accordance to the morals of the society and the Bible as well as the sense of justice innate to every individual otherwise known as conscience. However, most of the time, laws are not implemented as intended due to personal biases of implementing officers and external influences that causes authorities of the law to commit injustices to individuals. An example of good laws that are not effectively implemented would be the case of Criminal Justice in the United States. Before stating my view on a good approach on implementing laws in practicing as a Criminal Justice professional, it would be best to examine the laws applicable to Criminal Justice and citing examples of unprofessional conduct in implementing these laws. In the U.S. Constitution, justice for individuals is characterized by protection from unreasonable searches or seizures; ensure that individuals to undergo due process of law; compensation for property acquired from individuals; criminally accused individuals are to be provided with legal counsel and fair trial; and protection from suffering extreme punishment and unnecessary bail. Protection from unreasonable searches or seizures, which are described in the Fourth Amendment under the Bill of Rights in the U.S. Constitution, safeguards individuals from house, property or personal searches and seizure or arrest without a warrant duly issued by authorities who, in turn, had reasonably established a probable cause to issue a warrant (Cornell). This also includes car searches; an example of this would be the case of Rodney Joseph Grant who was arrested on the road for suspected possession of illegal drugs and the arresting officers on the spot, without a search warrant, searched his car. This case was controversial since the police officers were prompted to immediately search the car so the suspect can be taken into custody thus clearly violating the Fourth Amendment of the Bill of Rights. Another law that

The Basics of Supply and Demand Essay Example for Free

The Basics of Supply and Demand Essay 1) Use supply and demand curves to illustrate how each of the following events would affect the price of butter and the quantity of butter bought and sold: a. An increase in the price of margarine. b. An increase in the price of milk. c. A decrease in average income levels. 2). Use Supply and demand curve shifts to illustrate the effect of the following events on the market for apples. Make clear the direction of the change in both price and quantity sold. a. Scientists find that an apple a day does indeed keep the doctor away. b. The price of orange triples. c. A drought shrinks the apple crop to one-third its normal size. d. Thousands of college students abandon the academic life to become apple pickers. e. Thousands of college students abandon the academic life to become apple growers. 3) The rent control agency of New York City has found the aggregate demand is QD = 100 5P. Quantity is measured in tens of thousand of apartments. Price, the average monthly rental rate, is measured in hundreds of dollars. The agency also noted that the increase in Q at lower P results from more three-person families coming into the city from Long Island and demanding apartments. The city’s board of realtors acknowledges that this is a good demand estimate and has shown that supply is Qs =50 + 5P. a. If both the agency and the board are right about demand and supply, what is the free market price? What is the change in city population if the agency sets a maximum average monthly rental of $100, and those who cannot find an apartment leave the city? b. Suppose the agency bows to the wishes of the board and sets a rental of $900 per month on all apartments to allow landlords a â€Å"fair† rate of return. If 50 percent of any long-run increases in apartment offerings comes from new construction, how many apartments are constructed? 4) Much of the demand for U.S agricultural output has come from other countries. From Example 2.4, total demand is Q = 3244 283P. In addition, we are told that domestic demand is Qd =1700 – 107P. Domestic supply is Qs = 1944 + 207P. Suppose the export demand for wheat falls by 40 percent. a. U.S farmers are concerned about this drop in export demand. What happens to the free market price of wheat in the United States? Do the farmers have much reason to worry? b. Now suppose the U.S government wants to buy enough wheat each year to raise the price to $3.50 per bushel. With this drop in export demand, how much wheat would the government have to by each year? How much would this cost the government?

Drug Trafficking Is A Common Economics Essay

Drug Trafficking Is A Common Economics Essay Drug trafficking is a common trade in Mexico. Owing to its geographical location, Mexico strategic position in terms of drug supply, market demand, and distribution, the barons enjoy huge profits from the trade. Mexico neighbors Columbia, which is the world largest cocaine producer, and the U.S., which is a leading consumer of illicit drugs. Drug Trafficking Organizations in Mexico have a large network of illicit drugs supply. The Mexican laws against drug trafficking pose a major threat to the US drug customers since the laws threaten to cut down the drug trafficking avenues. However, the drug trafficking organizations are well organized and distinguished in order to conceal their illicit activities. This paper addresses similarities between the operations and activities of Mexican Drug Trafficking Organizations (DTOs) and those of legitimate international businesses. Mostly, the drug trafficker pose as money launders in order to invest their vast sums of cash obtained from the trade  [1]  This serves as a disguise since; they are able to channel their money to different investments, such as money laundering  [2]  .Like the international trade, the drug trafficking business is well- organized, with various marketing networks around the world. Drug trafficking is a business operation whose marketing techniques include smuggling, extortion, and threat, product line, and other outlawed items. The drug trafficking business is similar to a legitimate business venture, and sometimes has a corporate executive organizational structure, with support staff  [3]  The illegal business of drug trafficking survives due to pretense of undertaking legitimate business or through infiltration of legitimate business. In case of infiltration, the drug trafficking business operators use techniques such as protection rackets and immunity. Drug trafficking is a booming business in Mexico, where is it conducted by drug cartels and the Mexican Mafia. The cartels are not declared as terrorists, and this hinders the action of the American law enforcement and financial regulation on the Mexican borders  [4]   Seven drug cartels operate in Mexico. They are Sinaloa, Los Zetas, Arellano Felix organization, Beltran Levya, New Federation, and Familia Michoacana (LFM) cartels  [5]  . These cartels are illustrated as global businesses with backward and forward connections, for supplying and distributing their products in other countries  [6]  . As businesses, their main concern is supplying the markets with the illicit drugs in a most efficient manner in order  [7]  to increase their profits. This is a popular strategy, used by terrorist organizations, which engage in legal business, in order to fund their operations illegally or legally around the world. The Gulf Cartel emerges as a powerful drug cartel in profitability and territory. Los Zetas is extremely dangerous since it is made up of ex militaries from Mexican Airborne, who acts as assassins. Sinaloa Drug Trafficking Organization is more aggressive with an aim of controlling Drug Trafficking Organizations in Mexico. The LFM is a combination of criminal, social, and religious aspects, which leaves no marks on the corpses, and the crime scene, thus their actions are known as the divine justice acts  [8]  . Mexican cartels have various sub-divisions, with a vertical chain of command, originating from Mexico. The organization has surrogates throughout the U.S., who runs daily operations in the different countries. Mexican operators issue guidelines concerning transport of drugs, warehousing and money laundering services. Legitimate international businesses are well organized with their operations based in many countries. There is a chain of command in every business in order to avoid chaos and maintain uniformity in the operations. Use of violence is a common strategy, used by the gangs in order to protect their trading interests. However, these activities are carefully executed in order to avoid being caught. The aim is to create terror, which seeks to belittle the government ability to provide adequate security to the citizens. The drug traffickers in Mexico aim at undermining the government, in order to carry out their illicit trade activities without any threats from the authority. They want to create a free market in disguise, and fight for this freedom indirectly. Legitimate trade operates with minimal restrictions from the government and the drug traffickers want to acquire the status. There are willing buyers, and many people are using drugs such as heroin and cocaine, which the Mexican drug traffickers are willing to supply  [9]  .Legitimate international trade has willing buyers and sellers. Drugs have ready markets especially in the United States, with the suppliers having distributors in these regions. Their connections in the global context assist them to distribute the drugs easily. Legitimate international businesses have embraced globalization and can conduct their business freely in any country. They build customer trust and relationship, which enables customers to trust and conduct business with the dealers regardless of the distance. The drug traffickers practice social corporate responsibility in order to fulfill the ethical obligations, just as the legitimate international businesses do. LFM is known for its various donations such as Medicare, food, and school fees in aid for the poor. The drug barons aid the vulnerable and poor in the society in order to expose an inefficient government and damaged infrastructure  [10]  .This is a cover up of their real activities, and the public may mistake them for honest traders with an intention of reaching out to the community. They pretend to be practicing social corporate responsibility in order to disguise themselves. The cartels are dangerous and powerful and can outweigh the military and legitimate police. The illicit trade organizes its activities in a systematic manner, and carries out market research concerning the trade and are well versed with the risks involved  [11]  This is a similar scenario with many legitimate international businesses. The most targeted include vulnerable governments. There is a lot of illicit drugs flow from Mexico to the United States, and both states engage in the blame game concerning the predicament. The drugs have causes several deaths in the last few years, and the Mexican government is wary about the issue  [12]  . They have put up several strategies in order to combat the illicit drug trafficking trade. In order to combat drug trafficking effectively, Mexico advances anti-money laundering strategies in order to combat transnational organized crime  [13]  . Money laundering avails a lot of money to drug barons who re-use it for illicit drug trafficking  [14]  .Money laundering prevention, and dealing with financial terrorism is one of the comprehensive strategies of dealing with organized crime. Legitimate International businesses are against money laundering activities. The Mexico government realizes the dire need to attack the economic power of the drug traffickers in order to weaken them  [15]  .Mexico strives to enhance its bilateral cooperation with other countries in order to combat drug trafficking. Drug traffickers disguise their vast income in money laundering activities  [16]   The drug traffickers center around drug trade, and attempt to fill a specific illegal market niche globally. Legitimate international businesses attempt to supply goods that have willing buyers in the global markets. Illicit drugs such as heroin and cocaine are used by many people around the world, thus the drug barons aggressiveness in meeting the demands. Furthermore, the business is extremely lucrative with high profitability  [17]  . Legitimate international businesses are expected to achieve high profitability. Drug trafficking activities are influenced by factors such as politics, culture, geography, and economics, just like the legitimate international trade  [18]   Mexico is geographically located at a strategic location since it neighbors Columbia, which is one of the most significant world cocaine producers. This makes Mexico to acquire the drugs easily and supply them in the market. On the other hand, the drug dealers have distribution channels in different countries, which enable the goods to reach consumers. The Mexican drug dealers mainly focus on the drug trade, since it is more profitable, and their geographical location favors the trade. Market attractiveness of drug trafficking and the strategic positioning of Mexico enables it to engage in illicit drug trafficking. Drug trafficking takes advantage of the international supply chains, and weak governance in order to introduce the illicit products to the market. The demand for drugs is high and this makes the drug traffickers aggressive in satisfying these markets. Drug trafficking is increasing at an alarming rate, with Mexico experiencing over 47,000 deaths because of drug abuse  [19]  . The drug traffickers have adequate funds and arms, thus presenting a threat to the national security. The barons derive their competitive advantage from factors such as access and control of drug smuggling paths across the U.S., and the ability to obtain, transport and sell major illicit drugs in Mexico. Mexican drug traffickers conduct their trade with great professionalism and ability. They are highly profitable and earn a lot of annual income for the country, just like most legitimate international businesses  [20]  .Most of the drug dealers in Mexico are motivated by money  [21]  .The barons seek to maximize the profit at any prospect and reduce their danger of being caught, or detected. Money is a crucial element in every formal and informal organization and legal or illegal enterprises. Drug traffickers receive a lot of money from their trade, which they invest in money laundering services  [22]  . This empowers them and provides them with the courage to challenge the states institutions and the economic development of a country. Traffickers change their strategies constantly through devising new sources, destinations, and transit zones. Law enforcers fail to deal with the international issues effectively, and the world does not possess effective global strategies f or curbing perennial crimes such as cocaine and heroin trade. The issues originating from organized transnational crime are not adequately addressed in a global context  [23]   According to Olson Wilson, Mexico reported an approximated U.S. $6.2 billion  [24]  , from illicit drug export proceedings. Mexican Drug Trafficking Organizations activities and operations strive to create diplomatic relationships with other countries in order to combat drug trafficking. Drug traffickers operate in a large chain or drug racket, in a different destination. Mexico has to collaborate with other nations in order to crack down the operations. Similarly, legitimate international businesses have to cultivate positive relationships with other countries in order to carry out businesses in those countries. It is hard for a country to combat drug trafficking single-handedly, without the help of the international community. The Mexican drug trafficking organizations (DTO, s), poses a major threat to the drug traffickers especially from the United States, since it is believed that the main customers are from the United States. Although the drug traffickers are not interested in overthrowing the Mexican government, they are keen on weakening the government in order to continue their operations without any interference from the state  [25]  . In order to facilitate their activities in the US, the drug traffickers from Mexico have formed alliances with United States prison and street gangs. These gangs are responsible for drug distribution in the United States  [26]  . According to Shanty et al, illicit drug trafficking has caused many social problems  [27]  ; hence it requires more severe measures to combat.  [28]  Released by Office of National Drug Control Policy (ONDCP) Director Gil Kerlikowske set out goals in many of these areas. The strategy directs federal Agencies to increase coordination and information sharing with state and local law Enforcement agencies, intensifies national efforts to interdict the southbound flow Of weapons and bulk currency, and calls for continued close collaboration with the Government of Mexico in their efforts against the drug cartels.  [29]  Therefore even with the governments efforts to minimise illegal drug trafficking, cartels will always look for loopholes in the system, including using corrupt border officers. The cartels control the trafficking of drugs from South America to the US, a business that is worth an estimated $13bn ( £9bn) a year. Their power grew as the US stepped up anti-narcotics operations in the Caribbean and Florida. A US state department report estimated that as much as 90% of all cocaine consumed in the US comes via Mexico.  [30]  One reason why the government has deployed the army and marines so extensively is that it feels the police cannot be trusted. Drug cartels with massive resources at their disposal have repeatedly managed to infiltrate the underpaid police, from the grassroots level to the very top  [31]   Globalisation aids international trade, although it provides an opportunity for smugglers and traffickers due to an increase in trade regulation difficulties  [32]  Globalisation increases inequality, and this has a disruptive effect, which causes people to resolve to illicit markets, and organized crime as survival mechanisms. Illicit commerce has made a quick global spread in comparison with legal trade. Most transnational crimes begin in one continent and spreads to the others, mostly by a third means  [33]  . This makes it extremely hard to combat such perianal crimes. This was satisfied in a published article: While the Mexican federal government periodically cracked down on drug trafficking, these operations were limited in size and scope  [34]  . Conclusion The operations and activities of Mexican Drug Trafficking Organizations (DTOs) mirror those of legitimate international businesses in many respects. This ranges from their organizational structures to the marketing strategies. The drug trafficking enterprises practice socio-corporate responsibility in order to help the vulnerable people in the society. However, this is only used with an intention of undermining the government prowess and serves as a disguise for their criminal activities. The efforts of the Mexican government have been challenged because the drug rackets are powerful and interconnected in the global circles especially the United States, which is a strong hold market position. Drug trafficking business has various similarities arising from organizational structure, marketing and profitability. Mexico is strategically positioned, in terms of market supply and demand factors, which increases its profitability, and attractiveness. However, the illicit trade has caused many deaths ranging from consumption related deaths to law enforcers death. The dealers can do anything in order to protect their interests.

Study on the Determinants of Corporate Borrowing

Study on the Determinants of Corporate Borrowing CHAPTER 1: The determinants of corporate borrowing was an empirical research, hence a terrific amount of prior researches focused on exploring the determinants of corporate borrowing, since 1960s. Corporate borrowing decision effects remained as an area of growing interest for researchers in the last three decades, as the presence of the a phenomenon has been evidenced even in the most developed capital markets of the world (Guedes Opler, 1996). In addition, the sales growth was defined as a pinpoint determinant for firm financial decision towards firm sales growth opportunities and financial debt capacity, in the same studies. The debt and equity remained main areas of interest which were observed for decision making in corporate finance of the governance systems. As the earlier researches explored the factor of debt maturity but usually did not focus on sales growth as determinant of corporate debt (Myers Stewart, 1977). In addition, the same study focused on including and exploring the sales growth of firm as a determinant of corporate borrowing. Firms, in general, financed projects with long-term debt to avoid riskiness of project and hide the mismanagement activities under the cash flow of project, the cash flows were obtained from investment of the project before the debt maturity date (Guedes Opler, 1996). While same studies further addressed an important issue for firm, if the projects were financed with short-term debt. For instance, according to Barclay, Michael, Clifford and Smith (1995) that the term and conditions for maturity of debt of firms were reduced with growth opportunities, and raised with the size and credit quality of firm. Myers and Stewart (1977) also suggested firms to shorten debt when cost of contracting was high. Firms activities to finance long-term debt, with aspect to attaining firms growth opportunities such sales growth; had significant impact on short-term debt of the firm due to increased level of inventory and level of failed to sustain receivables turnover (Stohs, Mark Mauer, 1996). Further, the same studies defined that less risky and probably larger firm used long-term debt financing with meager growth opportunities, so the liquidity risk was highly involved for firm short-term borrowing decision. According to Diamond and Douglas (1991a) debt risk was defined as the borrower risk or the ability of borrower to repay interest, principle amount and timely fulfill claims terms. Froot, Kenneth, David and Stein (1993) addressed that loss of projects could be a caused by short-term debt if project has high refinanced interest rate and imperfections of credit market. Firms also experienced the distress for indirect cost of financial such that loss of inventory or the incremental proportion of inventory held and decline in the receivable turnover for the purpose of firm sales growth. Rizzi and Joe (1994) addressed the sales growth and risk that only high quality firms were able and sustained in the credit market for long term borrowing, while the low quality firm screened out from long term debt market. While the available short term debt market had high risk for low quality firms, even that firms financed to cope up growth opportunities, usually firms growth opportunities were identified with sales growth of the firm. 1.2 Problem Statement The debt financing was considered as one of the crucial issues in the corporate financing, the sales growth of the firm was one of the major determinants of the corporate debt financing. The purpose for the study of sales growth and debt financing is that this is the crucial issue for firms that how efficiently to avail firms growth opportunities such that sales growth. The objective of this research study was to explore and know that how borrowing decision of the firm such that short term debt was affected by the sales growth of the firm. The fundamental purpose of study was to observe the impact of sales growth in detail by Guedes and Opler (1996) and Saumitra (2002) presented the detailed information regarding the determinants of corporate borrowing such as sales growth and the firm debt financing decision in Pakistan. The scope of this study was to analyze the impact of sales growth on corporate borrowing such that short term debt financing decision of the firm to avail growth opportunities of the firm on the basis of debt financial decision factors. 1.3 Hypotheses The central query was raised in front of firms to borrow new financing as cope up the growth opportunities of the firm in the form of sales growth opportunities. New investment was required for the operational and the manufacturing activities of the firm whether to use debt financing or not, if the debt financing decision was to be used so the lender and borrower noticed that at what level of risk and the sales growth of the firm may affect the short term debt financing decision. In selection of the financing decision; firms past, current and expected activities was crucial for lender and borrower, such that sales growth, inventory held, and liquidity condition of the firm. Many Authors as Guedes and Opler (1996) and Saumitra (2002) discussed the sales growth as a main factor affecting to debt financing decision of the firm in research. The Hypothesized relationship of the variable is provided below: H1: There is positive impact of sales growth on corporate borrowing. H2: There is a positive impact of inventory held on corporate borrowing. 1.4 Outline of the Study The research presented the introduction of the thesis in chapter one, which included the problem statement of the study, scope of research, hypotheses etc. Literature review of the study was presented in chapter two with review by different authors on impact of sales growth on corporate borrowing. The research methodology was described in chapter three with justification of the selection of variables, sample size, sampling technique and statistical technique used in analysis of the study, and also developed model were described. After processing of data, the analysis interpretation of the results was described in the chapter four with hypothesis assessment summary. The summarized findings, conclusion, discussions, implications and recommendations, and suggested future directions for the empirical research on impact of sales growth on corporate borrowing was defined in chapter five. References and appendixes for the study were given in chapter six and at the end of study respectively. Chapter-2 LITERATURE REVIEW A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Marsh (1982) addressed that the borrowing decisions were taken by firms both by raising debt or finance, here question raised for corporation, what level of financing is required and which financing decision would be better for firm health. The firms borrowing decisions biased over its target level of debt, if its debt was below the target level of debt, so, the decision of debt financing would taken, otherwise financing decision was taken by firms due to signal of existing level of borrowing was above its target level of debt. The significant flotation costs for existence of corporations means that companies required to plan issues with objective to minimize both costs of its target ratio deviation and flotation costs. Over time fluctuating, it gave rise to infrequent issues of firm with its targeted debt ratio and firms clearly identified that what its level of target is. Miller and Rock (1977) debated over debt and explained two points; first, shift issue occurred in firm decision towards either equity or debt due to any change in level of tax, hence issue effect either temporary lasting until equilibrium level was restored, or shift issue remained permanent over target ratio of firms. The second point were elaborated that the probability of firm financial distresses and systematic risk level influenced the target debt levels of firm, it was defined that the highly operating risk of firm used the less level of debt financing. Myers, Brealey and Schaefer (1977) argued that companies avoid fixed interest rate of long term debt due to uncertainty of future rates of inflation and instead of long term debt rely over variable rate of short term debt. Barges (1968) explained the ability of a firm towards sales growth rate and capacity of debt, the explanation were shown with two factors, first the expected growth rate of future earnings of firm and the probability of expected sales growth and earnings of firm. Generally, high rate of expected future earning signify a greater capacity of a firm to carry debt; hence low expected future earnings mean the opposite. The degree of uncertainty for any level of expected future earnings for debt capacity of firm was served by knowing a limiting factor. Barclay et al. (1995) showed that credit quality and size moderately effect on firms to augment its debts term to maturity, and firms debt falls with growth opportunities. In a related article, Stohs et al. (1996) defined that larger firms most likely used the long term debt to avail the growth opportunity of its sales. The earlier studies examined the corporate debt maturity on behalf of issues of incremental debt rather than to investigate the maturity of liabilities of firm on balance sheet. By studying the liabilities to assets on balance sheets could answer some uninvestigated questions about impact of sales growth on corporate borrowings. Myers et al. (1977) suggested that agency cost and problems of debt can be controlled by firm to shortening the worth of its debt with respect to the volume of its sales. While some firms gain incentives from liquidity risk to borrow long term debt, it may not be able to compensate investors to bear credit risk of long-term debt for the sake of sales growth; it may indicate the low quality projects (Diamond Douglas, 1991.) and (Stiglitz, Joeph Weiss, 1981). Hence the low-quality firms cant sustain their position or can be screened out from long-term debt market, only high credit quality firms can be stable and able to borrow long-term debts. In contrast, larger firms were defined for long run as having higher likely possibilities to survive than smaller firms (Queen, Maggie Richard, 1987). Brick, Ivan and Ravid (1985) examined that interest payments affect the borrowers and lenders with respect to firms volume of sales due to different time patterns. The interest text shield was argued that borrowers seek to maximize the present value by accelerating interest payments, while lenders priorities to diminish the present value of tax charges by slow downing interest payments. Leff (1979), Khanna and Palepu (2000) addressed that the dominant perspective and minimizing perspective of transaction costs on business groups plays a crucial role on firms affiliations with these groups to overcome the barriers in an inefficient market. The view of transaction cost minimizing is characterized by weak governance system of firms, in part due to weak legal institutions or under developed intermediaries. Increase in the external financing investment cost may occur due to association of agency cost problems with market imperfections. However, this study will not develop and test the hypothetical views of business groups. Mitchell (1991) finds no support on the firm choice to match their asset maturities with maturity of debt issues. In a similar on debt issues, Guedes and Opler (1994) argue that high grade firms with large investment issue short-term debt. Diamonds (1991) predicted that active participants part in short-term credit markets was taken by the higher-rated firms to avail growth opportunities of the firm. Auerbach and Alan (1979) also argued that growth rate of sales and leverage are inversely proportion because the interest payment of tax deductibility was considered less valuable to the larger or fast growing firms. The firms annual sales growth rate in total assets was used as a growth rate of proxy. Asset maturity was defined as an important factor for corporate borrowing and plays stable role to predict the debt maturity of a firm. Myers et al. (1977) argued that long-term assets of firm can support to gain more long-term debt. In contrast, Titman, Sheridan and Wessels (1988) analyzed debt maturity on the basis of balance sheet and viewed the evidences that smaller firms rely on higher proportion of short-term debt with objective to minimize long-term debt flotation costs. Barclay et al. both addressed that smaller firms more likely with growth opportunities rely on a smaller proportion of debt that would exceeds 3 years. Myers and Stewart (1977) expressed the views on these evidences that debt maturity is used by firms to control interest conflicts between debt and equity holders. The preceding papers provided useful approaches for firms debt maturity choices; hence the measure had various limitations. First, the term-to-maturity in the corporate borrowing provided the information just about incremental financing choices. The debt maturity average of the firms existing liabilities test relate to the terms-to-maturity of debt issues to balance sheet variables such as asset maturity or return on assets (Stohs et al. 1996). Myers et al. defined the borrowing decisions of firms by using two indicators for growth: sales growth and growth of firm total assets. The research study focused to examine the behavior of firm borrowing decisions and concluded that; to prevent the agency cost of long term debt, most of the firms proffer short term debt decisions instead of long term debt. While Froot et al. (1993), Lucas, Deborah and McDonald (1990), and Kale, Jayant and Thomas (1990) examined the firm growth with three indicators of growth: sales growth, growth of firms total assets and growth of employing size of firm, and concluded that firm growth is independent of firm size. To study firms complete size distribution, the several alternative forms of samples were used, so, the variables were leading each others, while the definite relationship for alternative form of samples were crucially assumed and it was derived that firm growth decreases with all three indicators for agency cost of long-term debt financing , hence the sales growth were certain. Loughran, Tim, Ritter J. (1995) accentuated the importance of firm growth, debt financing decision and changes in market structure. Mansfield addressed that debt financing is better when growth opportunities of firm were available and demanded, so the profitability of firm was certain and debt financing was benefited as the tax advantage of firm. DeAngelo and Masulis (1980) examined the financing decisions of firm and showed that firm value was being affected by the financing decisions of the firm, if the firm has to avail certain growth opportunities, so the debt financing decisions was defined as an effective tax advantage and resulted decline in non-debt tax shields. Firm financing decision except debt financing resulted without tax shield beneficiaries, debt interest and principle payments were excluded from earnings of firm before tax applied and included the net short term losses in taxable income and then the corporate taxes was being applied over taxable income. Hence it was addressed that the profitability of firm and the proportion of profitability over assets was affected by the corporate tax. Gan (2007) addressed to normalize the loan payment balances of prior debts and lending decisions. It was explained that the payment of debt balances of loans slowly and present value of generated profits exceeded the present value of total payments which were gradually paid. It has also an impact over firm capital and the proportion of debt over capital, the ratio of firms capital was reduced with the excess of debt. Firms health with proportion of debt to capital explained that healthy capital was being shown from the borrowers willingness to repay gradually loan payment, and lenders willingness to lend. Debt financing and loan payments has also an impact over firm net profitability and the proportion of net earnings over firm total assets or return on assets, it must be paid even in bed time of firm, so well, required payments reduces the firm profitability and return on assets. The proportionate of earnings over total assets showed the efficiency of firm that how well the firm has utilized its assets to bear the cost of financing. Return on assets and prior debt to capital worth was used by means of lenders amount and implicitly measure the worthiness of firm capital. Dedoussis and Afroditi (2010) argued the problems with characteristics of a firm such as assets value or growth opportunities were communicated inability of firm to outside lenders, so that investment decisions were affected by net worth of firm if the discrepancy exists between firm internal and external financing. Hayashi (1982) explained that marginal profitability was covered by firms to expanding the business and sales of firm with bearing the moderate changes in firm expenditure. The described expansion were done by corporations with various financing decisions, it was suggested that the debt financing is better to avail if the market was shown under green signals of demand, if the markets demand were not shown so the firms prevent the debt financing because of interest payment which must be paid even in bad time of cash flows. Hadlock (1998) assumed that financiers were indecisive about the factual value of firms assets, so expectations were formed based on the investment amount that firm requests to carry out. If the firm requested for the maximum amount subsequently the investors were not capable to discriminate between firms with large resources or low resources. So the large assets of firm with low claims send a green signal to investor to putting money for debt investors. While it send the signal to equity provider to cutting the amount of investment if the money is required for new project establishment because it shorten its net earnings as well as the earning of shareholders. CHAPTER 3: RESEARCH METHOD 3.1 Method of Data Collection Data was obtained from the website of Karachi Stock Exchange KSE-100 Index and Joint Stock Companies Balance Sheet Analysis specified by State Bank of Pakistan in periodical listed on the KSE (2004-2009). The period of study covered with data of five years as sample of 2005-09. The opted sample size of all cement sector firms was taken from Karachi Stock Exchange-100 Index and the firms whose data were not available in the sample year of 2005-09 were excluded from the study. The objective behind the insertion of the firms in the sample was to explore debt financing behavior of cement firms significantly rely over sales growth opportunities or not. The major issue of data availability was faced in this research. The source of secondary data was adopted for the sampled data collection of this research study. In accordance with the research studies limitations three firms of cement sector were excluded from the study because two of the firms were newly listed and introduced in the Pakistani market and third was dropped from the KSE-100 Index during sample years of the study. The observed and expected aspects regarding the sales growth and debt financing was analyzed in this research. The external data sources were used to cope up the purpose of collection of data, such that general business publications, State Bank of Pakistan, companys annual reports, internet publications and books were used. The data required for study was completely dependent over the published and secondary data sources, as the sources defined above. 3.2 Sample Size The study selected all cement sector firms listed over KSE-100 Index as sample size for the research analysis. Total of 21 firms were listed over KSE-100 Index, hence, the firms whose data was not available during the sample year of 2005-2009, were excluded from the study, therefore three firms were excluded from the study because two of the excluded firms were newly listed and third was delisted over KSE-100 Index during the sample years. The impact of sales growth of firms on the corporate debt, which were listed on KSE-100 Index, was analyzed on the basis of the selected sample of 18 cement firms. 3.3 Research Model Developed From the various determinants of corporate debts which affected debt financing decision of the firms, this research study included only sales growth and inventory to analyze the impact of sales growth on corporate debt, the sales growth was measured by two variables one was directly change of current year sales with respect to last year sales, and second was level of inventory held by firm. The short term debts were used as a major dilemma for firms to face debt claims in swift time. The constructed mathematically model provided below; CD = a0 + ÃŽ ²1SG + ÃŽ ²2IH + ц Where: CD= corporate debt was measured as the change of short-term debt with respect to last year debt. SG= sales growth of firm with respect to last year sales of the firm. IH= inventory held by firm during the year. ц = the error term 3.4 Statistical Technique To examine the impact of sales growth on corporate borrowing, the multiple linear regression analysis (MLR) as a statistical technique was used for analyzed research study over selected sample firms; the SPSS software was used to test the secondary data. Multiple Linear Regression Analysis technique was used for prediction of sales growth with respect to last year sales and inventory hold by firm defined as the studied variables had an impact on corporate borrowing decision especially on short term financing. The identified technique was used to analyze the empirical behavior of firms financings with studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). According to the characteristics of research study and variables used in this study, the multiple linear regressions; a multivariate analysis was appropriate to used than univariate investigation. In such a way the referenced studies also suggested to use the multivariate analysis technique. The intensity of sales growth impact on corporate debt during year 2005-2009 was observed on the basis of studied independent variables i.e. sales growth and inventory hold by firm during the year. CHAPTER 4: RESULTS All firms of cement industry listed on KSE-100 Index were selected as sample for this research study, and Multiple Linear Regression Analysis was taken as a statistical technique for analysis of this research study. This research was tested and analyzed by using multivariate technique for the prediction of impact of the sales growth with respect to last years sale and inventory hold by firm on corporate borrowing decision especially on short term financing. The identified technique was used to examine the impact of the studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). 4.1 Findings and Interpretation Primarily, the regression technique in SPSS was applied on collected data. The resulted output of data showed that the data has no multicolinearity issue, while the normality issue was found in the data, to resolve normality issue of the data; so all the transformation techniques were used. By applying all the transformations, the studied variables found to be insignificant, so it was described that the data was highly volatile in Pakistani market so the normality issue was ignored to predict the variables. As the multicolinearity issue was not in the data, so the study initiated to analyze the results. The analysis and interpretation of the results was defined in following section of the research. Table 4.1: Model Summary Model R R Square Adjusted R Square 1 .722 .521 .510 Table 4.1 demonstrated summary of the regression model. The Adjusted R square was best for prediction of model as per the number of variables used. The Adjusted R square of 51% in the above table showed that the both of the predictors of corporate borrowing combined together explained 51% variation in whole model, while the remaining was residual variance as latent and not included in the prediction of the model. In other words, Adjusted R square showed that 51% variation in outcome was explained by the population of the study. Table 4.2: ANOVA Model Sum of Squares Df Mean Square F Sig. 1 Regression 3.766E8 2 1.883E8 47.289 .000 Residual 3.464E8 87 3981969.306 Total 7.230E8 89 The table 4.2 represented the significance of estimated linear model of the study, the sig value of ANOVA supported the model fitness for this research study file regarding applicability of the regression technique, ANOVA table was consistent for examination of the models ability to predict any variation in observed dependent variable such that corporate borrowing. This was absolutely understandable from the sig value of .000 which showed that the linear regression model was perfectly momentous for the conducted research. Table 4.3: Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) 1082.629 295.525 3.663 .000 Inventry 7.543 1.179 .593 6.399 .000 .641 1.561 SG .307 .152 .188 2.026 .046 .641 1.561 The table 4.3 represented crucial results for regression model of this study. Sig column of above table demonstrated that all variables of the study were significant and all independent variables of the hypothesis of this research study had significantly influential intensity over dependent variable of the study. Sig column demonstrated that the un-standardized coefficients of variables is zero or not; when the sig value was higher or equal to .05, the un-standardize coefficients considered as zero; and when the sig value was lower than .05, then the un-standardize coefficients of the model was not considered as zero. The value of column B demonstrated that one unit varies in independent variable consequence change in dependent variable with the weights equal to the weights of column B. The VIF column showed the existence of multicollinearity issue in the studied independent variables. As all of the VIF values found less than 2, so this identified the least acceptable level of multic ollinearity in the study. 4.2 Hypotheses Assessment Summary The studied hypothesis was sales growth of the firm has significant positive impact on corporate borrowing decisions to finance in short-term credit market. The firms sales growth characteristics had variation in current year sales of firm with respect to last year sales and the level of inventory hold by firm during financing years. In this study each of the sales growth variable and inventory variable as firms sales growth characteristic for corporate borrowing were tested and concluded in the outcome. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽ ² SIG. RESULT H1 There is a positive impact of sales growth on corporate borrowing. 0.307 .046 Accepted H2 There is a positive impact of inventory hold on corporate borrowing. 7.543 0.000 Accepted CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion The results of the study suggested that sales growth has positive impact on corporate borrowing which identified the significance of sales growth impact in Pakistani market. The second variable of the study was also identified the significance impact in Pakistani market and had intensity to impact over corporate borrowing. The results of this study were not matching with referenced studies conducted by Guedes Opler (1996), and these results had also shown consistency with the study conducted by Barclay et al. The studied results varying because the matched studies were conducted in various countries, so the firms environments and circumstances of the countries usually differed to make financing decisions accordingly. 5.2 Discussions Firm sales opportunities played a vital role in defining the firms sales growth but these growth opportunities varied over volatility in environmental growth of the countries, hence, this dilemma was not with the study of Guedes Opler (1996), because in his study the level of inventory hold by the firm over the year was playing a significant role. Variations in the corporate borrowing were highly explained by the level of inventory held by firm over the year. While sales growth of the firm concluded same results with consistent to the research study of Barclay et al. 5.3 Implications and Recommendations This research study was limited to the cement sector firms listed on Karachi Stock Exchange of Pakistan only. The data was taken from annual reports of all cement sector firms. This research suggested it was not necessity that only firms sales growth has impact on corporate borrowing or the corporate borrowing decisions was affected only by sales growth and inventory factors such type of other borrowing factors should be carried out and analyses in other countries of the Asia as well, as to have inclusive idea about the impact of sales growth on corporate borrowing. Furthermore, the research study also suggested that other factors of corporate borrowing discussed in the chapter one should be researched as to have perfect idea for the debt financing decisions of the firm. For instance, this research study can also be replicated efficiently in other developing countries. 5.4 Future Research This research study may helped various management of the firm, investors and other research conductors in analyzing and observing the debt behavior and financing decisions of firms to achieve sales growth opportunities of the firm. The students whose intention is to research on either debt financing behavior of the firm or to study the growth behavior of the firm with respect to debt can be benefited by this study. Furthermore, the cement sector will become advantageous from this study because the study clarifies the impact of sales growth of firm on corporate short term borrowing. CHAPTER 6: REFERENCES Auerbach Alan (1979). Share valuation and corporate equity policy. Journal of Public Economics, 11, 291-305. Barclay, Michael J., Clifford W. Smith Jr. (1995). The maturity structure of corporate debt. Journal of Finance, 50, 609-631. Barges A. (1968). InstituteGrowth Rates and Debt Capacity. Financial Analysts Journal, 24, 100-104. Brick, Ivan, and Ravid S. (1985). On the relevance of debt maturity structure. Journal of Finance, 40, 1423-1437. DeAngelo, H., and Masulis R. (1980). Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8, 3-29. Study on the Determinants of Corporate Borrowing Study on the Determinants of Corporate Borrowing CHAPTER 1: The determinants of corporate borrowing was an empirical research, hence a terrific amount of prior researches focused on exploring the determinants of corporate borrowing, since 1960s. Corporate borrowing decision effects remained as an area of growing interest for researchers in the last three decades, as the presence of the a phenomenon has been evidenced even in the most developed capital markets of the world (Guedes Opler, 1996). In addition, the sales growth was defined as a pinpoint determinant for firm financial decision towards firm sales growth opportunities and financial debt capacity, in the same studies. The debt and equity remained main areas of interest which were observed for decision making in corporate finance of the governance systems. As the earlier researches explored the factor of debt maturity but usually did not focus on sales growth as determinant of corporate debt (Myers Stewart, 1977). In addition, the same study focused on including and exploring the sales growth of firm as a determinant of corporate borrowing. Firms, in general, financed projects with long-term debt to avoid riskiness of project and hide the mismanagement activities under the cash flow of project, the cash flows were obtained from investment of the project before the debt maturity date (Guedes Opler, 1996). While same studies further addressed an important issue for firm, if the projects were financed with short-term debt. For instance, according to Barclay, Michael, Clifford and Smith (1995) that the term and conditions for maturity of debt of firms were reduced with growth opportunities, and raised with the size and credit quality of firm. Myers and Stewart (1977) also suggested firms to shorten debt when cost of contracting was high. Firms activities to finance long-term debt, with aspect to attaining firms growth opportunities such sales growth; had significant impact on short-term debt of the firm due to increased level of inventory and level of failed to sustain receivables turnover (Stohs, Mark Mauer, 1996). Further, the same studies defined that less risky and probably larger firm used long-term debt financing with meager growth opportunities, so the liquidity risk was highly involved for firm short-term borrowing decision. According to Diamond and Douglas (1991a) debt risk was defined as the borrower risk or the ability of borrower to repay interest, principle amount and timely fulfill claims terms. Froot, Kenneth, David and Stein (1993) addressed that loss of projects could be a caused by short-term debt if project has high refinanced interest rate and imperfections of credit market. Firms also experienced the distress for indirect cost of financial such that loss of inventory or the incremental proportion of inventory held and decline in the receivable turnover for the purpose of firm sales growth. Rizzi and Joe (1994) addressed the sales growth and risk that only high quality firms were able and sustained in the credit market for long term borrowing, while the low quality firm screened out from long term debt market. While the available short term debt market had high risk for low quality firms, even that firms financed to cope up growth opportunities, usually firms growth opportunities were identified with sales growth of the firm. 1.2 Problem Statement The debt financing was considered as one of the crucial issues in the corporate financing, the sales growth of the firm was one of the major determinants of the corporate debt financing. The purpose for the study of sales growth and debt financing is that this is the crucial issue for firms that how efficiently to avail firms growth opportunities such that sales growth. The objective of this research study was to explore and know that how borrowing decision of the firm such that short term debt was affected by the sales growth of the firm. The fundamental purpose of study was to observe the impact of sales growth in detail by Guedes and Opler (1996) and Saumitra (2002) presented the detailed information regarding the determinants of corporate borrowing such as sales growth and the firm debt financing decision in Pakistan. The scope of this study was to analyze the impact of sales growth on corporate borrowing such that short term debt financing decision of the firm to avail growth opportunities of the firm on the basis of debt financial decision factors. 1.3 Hypotheses The central query was raised in front of firms to borrow new financing as cope up the growth opportunities of the firm in the form of sales growth opportunities. New investment was required for the operational and the manufacturing activities of the firm whether to use debt financing or not, if the debt financing decision was to be used so the lender and borrower noticed that at what level of risk and the sales growth of the firm may affect the short term debt financing decision. In selection of the financing decision; firms past, current and expected activities was crucial for lender and borrower, such that sales growth, inventory held, and liquidity condition of the firm. Many Authors as Guedes and Opler (1996) and Saumitra (2002) discussed the sales growth as a main factor affecting to debt financing decision of the firm in research. The Hypothesized relationship of the variable is provided below: H1: There is positive impact of sales growth on corporate borrowing. H2: There is a positive impact of inventory held on corporate borrowing. 1.4 Outline of the Study The research presented the introduction of the thesis in chapter one, which included the problem statement of the study, scope of research, hypotheses etc. Literature review of the study was presented in chapter two with review by different authors on impact of sales growth on corporate borrowing. The research methodology was described in chapter three with justification of the selection of variables, sample size, sampling technique and statistical technique used in analysis of the study, and also developed model were described. After processing of data, the analysis interpretation of the results was described in the chapter four with hypothesis assessment summary. The summarized findings, conclusion, discussions, implications and recommendations, and suggested future directions for the empirical research on impact of sales growth on corporate borrowing was defined in chapter five. References and appendixes for the study were given in chapter six and at the end of study respectively. Chapter-2 LITERATURE REVIEW A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Marsh (1982) addressed that the borrowing decisions were taken by firms both by raising debt or finance, here question raised for corporation, what level of financing is required and which financing decision would be better for firm health. The firms borrowing decisions biased over its target level of debt, if its debt was below the target level of debt, so, the decision of debt financing would taken, otherwise financing decision was taken by firms due to signal of existing level of borrowing was above its target level of debt. The significant flotation costs for existence of corporations means that companies required to plan issues with objective to minimize both costs of its target ratio deviation and flotation costs. Over time fluctuating, it gave rise to infrequent issues of firm with its targeted debt ratio and firms clearly identified that what its level of target is. Miller and Rock (1977) debated over debt and explained two points; first, shift issue occurred in firm decision towards either equity or debt due to any change in level of tax, hence issue effect either temporary lasting until equilibrium level was restored, or shift issue remained permanent over target ratio of firms. The second point were elaborated that the probability of firm financial distresses and systematic risk level influenced the target debt levels of firm, it was defined that the highly operating risk of firm used the less level of debt financing. Myers, Brealey and Schaefer (1977) argued that companies avoid fixed interest rate of long term debt due to uncertainty of future rates of inflation and instead of long term debt rely over variable rate of short term debt. Barges (1968) explained the ability of a firm towards sales growth rate and capacity of debt, the explanation were shown with two factors, first the expected growth rate of future earnings of firm and the probability of expected sales growth and earnings of firm. Generally, high rate of expected future earning signify a greater capacity of a firm to carry debt; hence low expected future earnings mean the opposite. The degree of uncertainty for any level of expected future earnings for debt capacity of firm was served by knowing a limiting factor. Barclay et al. (1995) showed that credit quality and size moderately effect on firms to augment its debts term to maturity, and firms debt falls with growth opportunities. In a related article, Stohs et al. (1996) defined that larger firms most likely used the long term debt to avail the growth opportunity of its sales. The earlier studies examined the corporate debt maturity on behalf of issues of incremental debt rather than to investigate the maturity of liabilities of firm on balance sheet. By studying the liabilities to assets on balance sheets could answer some uninvestigated questions about impact of sales growth on corporate borrowings. Myers et al. (1977) suggested that agency cost and problems of debt can be controlled by firm to shortening the worth of its debt with respect to the volume of its sales. While some firms gain incentives from liquidity risk to borrow long term debt, it may not be able to compensate investors to bear credit risk of long-term debt for the sake of sales growth; it may indicate the low quality projects (Diamond Douglas, 1991.) and (Stiglitz, Joeph Weiss, 1981). Hence the low-quality firms cant sustain their position or can be screened out from long-term debt market, only high credit quality firms can be stable and able to borrow long-term debts. In contrast, larger firms were defined for long run as having higher likely possibilities to survive than smaller firms (Queen, Maggie Richard, 1987). Brick, Ivan and Ravid (1985) examined that interest payments affect the borrowers and lenders with respect to firms volume of sales due to different time patterns. The interest text shield was argued that borrowers seek to maximize the present value by accelerating interest payments, while lenders priorities to diminish the present value of tax charges by slow downing interest payments. Leff (1979), Khanna and Palepu (2000) addressed that the dominant perspective and minimizing perspective of transaction costs on business groups plays a crucial role on firms affiliations with these groups to overcome the barriers in an inefficient market. The view of transaction cost minimizing is characterized by weak governance system of firms, in part due to weak legal institutions or under developed intermediaries. Increase in the external financing investment cost may occur due to association of agency cost problems with market imperfections. However, this study will not develop and test the hypothetical views of business groups. Mitchell (1991) finds no support on the firm choice to match their asset maturities with maturity of debt issues. In a similar on debt issues, Guedes and Opler (1994) argue that high grade firms with large investment issue short-term debt. Diamonds (1991) predicted that active participants part in short-term credit markets was taken by the higher-rated firms to avail growth opportunities of the firm. Auerbach and Alan (1979) also argued that growth rate of sales and leverage are inversely proportion because the interest payment of tax deductibility was considered less valuable to the larger or fast growing firms. The firms annual sales growth rate in total assets was used as a growth rate of proxy. Asset maturity was defined as an important factor for corporate borrowing and plays stable role to predict the debt maturity of a firm. Myers et al. (1977) argued that long-term assets of firm can support to gain more long-term debt. In contrast, Titman, Sheridan and Wessels (1988) analyzed debt maturity on the basis of balance sheet and viewed the evidences that smaller firms rely on higher proportion of short-term debt with objective to minimize long-term debt flotation costs. Barclay et al. both addressed that smaller firms more likely with growth opportunities rely on a smaller proportion of debt that would exceeds 3 years. Myers and Stewart (1977) expressed the views on these evidences that debt maturity is used by firms to control interest conflicts between debt and equity holders. The preceding papers provided useful approaches for firms debt maturity choices; hence the measure had various limitations. First, the term-to-maturity in the corporate borrowing provided the information just about incremental financing choices. The debt maturity average of the firms existing liabilities test relate to the terms-to-maturity of debt issues to balance sheet variables such as asset maturity or return on assets (Stohs et al. 1996). Myers et al. defined the borrowing decisions of firms by using two indicators for growth: sales growth and growth of firm total assets. The research study focused to examine the behavior of firm borrowing decisions and concluded that; to prevent the agency cost of long term debt, most of the firms proffer short term debt decisions instead of long term debt. While Froot et al. (1993), Lucas, Deborah and McDonald (1990), and Kale, Jayant and Thomas (1990) examined the firm growth with three indicators of growth: sales growth, growth of firms total assets and growth of employing size of firm, and concluded that firm growth is independent of firm size. To study firms complete size distribution, the several alternative forms of samples were used, so, the variables were leading each others, while the definite relationship for alternative form of samples were crucially assumed and it was derived that firm growth decreases with all three indicators for agency cost of long-term debt financing , hence the sales growth were certain. Loughran, Tim, Ritter J. (1995) accentuated the importance of firm growth, debt financing decision and changes in market structure. Mansfield addressed that debt financing is better when growth opportunities of firm were available and demanded, so the profitability of firm was certain and debt financing was benefited as the tax advantage of firm. DeAngelo and Masulis (1980) examined the financing decisions of firm and showed that firm value was being affected by the financing decisions of the firm, if the firm has to avail certain growth opportunities, so the debt financing decisions was defined as an effective tax advantage and resulted decline in non-debt tax shields. Firm financing decision except debt financing resulted without tax shield beneficiaries, debt interest and principle payments were excluded from earnings of firm before tax applied and included the net short term losses in taxable income and then the corporate taxes was being applied over taxable income. Hence it was addressed that the profitability of firm and the proportion of profitability over assets was affected by the corporate tax. Gan (2007) addressed to normalize the loan payment balances of prior debts and lending decisions. It was explained that the payment of debt balances of loans slowly and present value of generated profits exceeded the present value of total payments which were gradually paid. It has also an impact over firm capital and the proportion of debt over capital, the ratio of firms capital was reduced with the excess of debt. Firms health with proportion of debt to capital explained that healthy capital was being shown from the borrowers willingness to repay gradually loan payment, and lenders willingness to lend. Debt financing and loan payments has also an impact over firm net profitability and the proportion of net earnings over firm total assets or return on assets, it must be paid even in bed time of firm, so well, required payments reduces the firm profitability and return on assets. The proportionate of earnings over total assets showed the efficiency of firm that how well the firm has utilized its assets to bear the cost of financing. Return on assets and prior debt to capital worth was used by means of lenders amount and implicitly measure the worthiness of firm capital. Dedoussis and Afroditi (2010) argued the problems with characteristics of a firm such as assets value or growth opportunities were communicated inability of firm to outside lenders, so that investment decisions were affected by net worth of firm if the discrepancy exists between firm internal and external financing. Hayashi (1982) explained that marginal profitability was covered by firms to expanding the business and sales of firm with bearing the moderate changes in firm expenditure. The described expansion were done by corporations with various financing decisions, it was suggested that the debt financing is better to avail if the market was shown under green signals of demand, if the markets demand were not shown so the firms prevent the debt financing because of interest payment which must be paid even in bad time of cash flows. Hadlock (1998) assumed that financiers were indecisive about the factual value of firms assets, so expectations were formed based on the investment amount that firm requests to carry out. If the firm requested for the maximum amount subsequently the investors were not capable to discriminate between firms with large resources or low resources. So the large assets of firm with low claims send a green signal to investor to putting money for debt investors. While it send the signal to equity provider to cutting the amount of investment if the money is required for new project establishment because it shorten its net earnings as well as the earning of shareholders. CHAPTER 3: RESEARCH METHOD 3.1 Method of Data Collection Data was obtained from the website of Karachi Stock Exchange KSE-100 Index and Joint Stock Companies Balance Sheet Analysis specified by State Bank of Pakistan in periodical listed on the KSE (2004-2009). The period of study covered with data of five years as sample of 2005-09. The opted sample size of all cement sector firms was taken from Karachi Stock Exchange-100 Index and the firms whose data were not available in the sample year of 2005-09 were excluded from the study. The objective behind the insertion of the firms in the sample was to explore debt financing behavior of cement firms significantly rely over sales growth opportunities or not. The major issue of data availability was faced in this research. The source of secondary data was adopted for the sampled data collection of this research study. In accordance with the research studies limitations three firms of cement sector were excluded from the study because two of the firms were newly listed and introduced in the Pakistani market and third was dropped from the KSE-100 Index during sample years of the study. The observed and expected aspects regarding the sales growth and debt financing was analyzed in this research. The external data sources were used to cope up the purpose of collection of data, such that general business publications, State Bank of Pakistan, companys annual reports, internet publications and books were used. The data required for study was completely dependent over the published and secondary data sources, as the sources defined above. 3.2 Sample Size The study selected all cement sector firms listed over KSE-100 Index as sample size for the research analysis. Total of 21 firms were listed over KSE-100 Index, hence, the firms whose data was not available during the sample year of 2005-2009, were excluded from the study, therefore three firms were excluded from the study because two of the excluded firms were newly listed and third was delisted over KSE-100 Index during the sample years. The impact of sales growth of firms on the corporate debt, which were listed on KSE-100 Index, was analyzed on the basis of the selected sample of 18 cement firms. 3.3 Research Model Developed From the various determinants of corporate debts which affected debt financing decision of the firms, this research study included only sales growth and inventory to analyze the impact of sales growth on corporate debt, the sales growth was measured by two variables one was directly change of current year sales with respect to last year sales, and second was level of inventory held by firm. The short term debts were used as a major dilemma for firms to face debt claims in swift time. The constructed mathematically model provided below; CD = a0 + ÃŽ ²1SG + ÃŽ ²2IH + ц Where: CD= corporate debt was measured as the change of short-term debt with respect to last year debt. SG= sales growth of firm with respect to last year sales of the firm. IH= inventory held by firm during the year. ц = the error term 3.4 Statistical Technique To examine the impact of sales growth on corporate borrowing, the multiple linear regression analysis (MLR) as a statistical technique was used for analyzed research study over selected sample firms; the SPSS software was used to test the secondary data. Multiple Linear Regression Analysis technique was used for prediction of sales growth with respect to last year sales and inventory hold by firm defined as the studied variables had an impact on corporate borrowing decision especially on short term financing. The identified technique was used to analyze the empirical behavior of firms financings with studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). According to the characteristics of research study and variables used in this study, the multiple linear regressions; a multivariate analysis was appropriate to used than univariate investigation. In such a way the referenced studies also suggested to use the multivariate analysis technique. The intensity of sales growth impact on corporate debt during year 2005-2009 was observed on the basis of studied independent variables i.e. sales growth and inventory hold by firm during the year. CHAPTER 4: RESULTS All firms of cement industry listed on KSE-100 Index were selected as sample for this research study, and Multiple Linear Regression Analysis was taken as a statistical technique for analysis of this research study. This research was tested and analyzed by using multivariate technique for the prediction of impact of the sales growth with respect to last years sale and inventory hold by firm on corporate borrowing decision especially on short term financing. The identified technique was used to examine the impact of the studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). 4.1 Findings and Interpretation Primarily, the regression technique in SPSS was applied on collected data. The resulted output of data showed that the data has no multicolinearity issue, while the normality issue was found in the data, to resolve normality issue of the data; so all the transformation techniques were used. By applying all the transformations, the studied variables found to be insignificant, so it was described that the data was highly volatile in Pakistani market so the normality issue was ignored to predict the variables. As the multicolinearity issue was not in the data, so the study initiated to analyze the results. The analysis and interpretation of the results was defined in following section of the research. Table 4.1: Model Summary Model R R Square Adjusted R Square 1 .722 .521 .510 Table 4.1 demonstrated summary of the regression model. The Adjusted R square was best for prediction of model as per the number of variables used. The Adjusted R square of 51% in the above table showed that the both of the predictors of corporate borrowing combined together explained 51% variation in whole model, while the remaining was residual variance as latent and not included in the prediction of the model. In other words, Adjusted R square showed that 51% variation in outcome was explained by the population of the study. Table 4.2: ANOVA Model Sum of Squares Df Mean Square F Sig. 1 Regression 3.766E8 2 1.883E8 47.289 .000 Residual 3.464E8 87 3981969.306 Total 7.230E8 89 The table 4.2 represented the significance of estimated linear model of the study, the sig value of ANOVA supported the model fitness for this research study file regarding applicability of the regression technique, ANOVA table was consistent for examination of the models ability to predict any variation in observed dependent variable such that corporate borrowing. This was absolutely understandable from the sig value of .000 which showed that the linear regression model was perfectly momentous for the conducted research. Table 4.3: Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) 1082.629 295.525 3.663 .000 Inventry 7.543 1.179 .593 6.399 .000 .641 1.561 SG .307 .152 .188 2.026 .046 .641 1.561 The table 4.3 represented crucial results for regression model of this study. Sig column of above table demonstrated that all variables of the study were significant and all independent variables of the hypothesis of this research study had significantly influential intensity over dependent variable of the study. Sig column demonstrated that the un-standardized coefficients of variables is zero or not; when the sig value was higher or equal to .05, the un-standardize coefficients considered as zero; and when the sig value was lower than .05, then the un-standardize coefficients of the model was not considered as zero. The value of column B demonstrated that one unit varies in independent variable consequence change in dependent variable with the weights equal to the weights of column B. The VIF column showed the existence of multicollinearity issue in the studied independent variables. As all of the VIF values found less than 2, so this identified the least acceptable level of multic ollinearity in the study. 4.2 Hypotheses Assessment Summary The studied hypothesis was sales growth of the firm has significant positive impact on corporate borrowing decisions to finance in short-term credit market. The firms sales growth characteristics had variation in current year sales of firm with respect to last year sales and the level of inventory hold by firm during financing years. In this study each of the sales growth variable and inventory variable as firms sales growth characteristic for corporate borrowing were tested and concluded in the outcome. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽ ² SIG. RESULT H1 There is a positive impact of sales growth on corporate borrowing. 0.307 .046 Accepted H2 There is a positive impact of inventory hold on corporate borrowing. 7.543 0.000 Accepted CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion The results of the study suggested that sales growth has positive impact on corporate borrowing which identified the significance of sales growth impact in Pakistani market. The second variable of the study was also identified the significance impact in Pakistani market and had intensity to impact over corporate borrowing. The results of this study were not matching with referenced studies conducted by Guedes Opler (1996), and these results had also shown consistency with the study conducted by Barclay et al. The studied results varying because the matched studies were conducted in various countries, so the firms environments and circumstances of the countries usually differed to make financing decisions accordingly. 5.2 Discussions Firm sales opportunities played a vital role in defining the firms sales growth but these growth opportunities varied over volatility in environmental growth of the countries, hence, this dilemma was not with the study of Guedes Opler (1996), because in his study the level of inventory hold by the firm over the year was playing a significant role. Variations in the corporate borrowing were highly explained by the level of inventory held by firm over the year. While sales growth of the firm concluded same results with consistent to the research study of Barclay et al. 5.3 Implications and Recommendations This research study was limited to the cement sector firms listed on Karachi Stock Exchange of Pakistan only. The data was taken from annual reports of all cement sector firms. This research suggested it was not necessity that only firms sales growth has impact on corporate borrowing or the corporate borrowing decisions was affected only by sales growth and inventory factors such type of other borrowing factors should be carried out and analyses in other countries of the Asia as well, as to have inclusive idea about the impact of sales growth on corporate borrowing. Furthermore, the research study also suggested that other factors of corporate borrowing discussed in the chapter one should be researched as to have perfect idea for the debt financing decisions of the firm. For instance, this research study can also be replicated efficiently in other developing countries. 5.4 Future Research This research study may helped various management of the firm, investors and other research conductors in analyzing and observing the debt behavior and financing decisions of firms to achieve sales growth opportunities of the firm. The students whose intention is to research on either debt financing behavior of the firm or to study the growth behavior of the firm with respect to debt can be benefited by this study. Furthermore, the cement sector will become advantageous from this study because the study clarifies the impact of sales growth of firm on corporate short term borrowing. CHAPTER 6: REFERENCES Auerbach Alan (1979). Share valuation and corporate equity policy. Journal of Public Economics, 11, 291-305. Barclay, Michael J., Clifford W. Smith Jr. (1995). The maturity structure of corporate debt. Journal of Finance, 50, 609-631. Barges A. (1968). InstituteGrowth Rates and Debt Capacity. Financial Analysts Journal, 24, 100-104. Brick, Ivan, and Ravid S. (1985). On the relevance of debt maturity structure. Journal of Finance, 40, 1423-1437. DeAngelo, H., and Masulis R. (1980). Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8, 3-29.