Satire in South Korea

Sneaky tricksters, unite
ACCORDING to our sister organization ,the economist intelligence unite, South Korea ranks as the world's 22nd strongest democracy,and as the second strongest in Asia. its mainstream media, however ,is a weak link.An American think-tank  ,freedom house ,labels the south Korean press only "partly tree",as a result of what it calls "an increase in official censorship" and "government attempts to influence news and information content"journalist themselves worry.a journalists' association of Korea survey conducted in 2010 showed that the top concern of people who work in the media is the "contraction of press freedom". so-called nakhasan appointments means of government loyalists into major media outlets have contributed to the impression that newspapers and television news programmer cannot be relied on to hold to account the powers that be.

              It is the environment that one band of rebel pod casters has flourished . the satirical "Naneun Ggomsuda"{roughly, "i'm a sneaky triskcter"} reaches an audience of around  10m per  episode, according to its founder, Kim ou-joon {pictured above ,second from the right}.this would make it the most popular podcast  in the world.the fact that the express purpose of Naueun Ggomsuda {or "Naggomus" for short}is to pour scorn on a government that Mr Kim openly regards as "greedy"and "suspicious " has raised the hackles of its targets.one regular member of the show ,jeong bong -ju,a former politician ,was recently sentenced to a year in prison for "spreading false information "about the centre-right president,Lee Myung - bakin  contravention of election and defamation laws.other lawsuits are said to be in the works.

 
          Naggomu's case has shed light on South Korea's anusually strict treatment of its citizens who publicly criticise others.it's bad  enough that one can be send to jail for it .one can even be judged to have defamed someone when the allegation in question is true. making a martyr of Mr Jeong though looks to have been an own goal for the government . "it was very stupid to jail him."according to Mr Kim , because  "it is  stirring people's willingness to vote."

      Mr Kim intends to keep his podcast running until south korea has a new president . official opposition seems only to encourage him. when asked how he  responds to  being labelled "dangerous" by a supporter of the government ,he smiles broadly and says simply ,"i' m very thankful."

Accruals and Deferred Income

Accruals and deferred income are spontaneous and interest free sources of unsecured short-term financing.these are the most common source of short-term financing for a firm.

Accruals

            Accruals represent short-term liabilities for the service that have been provided to the firm but payment has not yet been made .the most common accruals are wages payable and taxes payable.because business firms generally pay created.similarly,the firm's own estimated income tax ,property tax ,tax deducted at source ,income tax withheld from employee payrolls and sales taxes collected are generally paid after specified period.thus, accrued taxes are created.since taxes are payment to the government ,they can not be manipulated by the firm.however ,a company can increase the average amount of accrued wages by lengthening the between paydays.for example,changing from twice a month pay cycle to a monthly pay cycle would effectively double a firm's average level of accrued wages.average level of accruals is always half of the total wages pr payroll.

           Accruals tend to rise fall with the level of the firm's level of activity. for example,as level of production and sales increase,labor cost usually increase,as a result accrued wages increase.and as profit increase ,accrued taxes increase.hence,accruals are spontaneous source of financing.though accruals represent costless source of short-term financing ,postponement of payment to employee for longer period may have negative effect on employee's attitude towards the company .employees may respond wish absenteeism or reduce efficiency or they may seek employment elsewhere.so,a company must be careful in postponing wages.however, by delaying payment of accruals company can increase average accruals and save some amount of money.

            To illustrate let us assume, a firm has a weekly payroll of Rs300,000.the firm is considering changing to a biweekly payroll to reduce the cost of writing checks and similar expenses by Rs 300 per payroll.the firm has a 14 percent cost of money.what would b the total annual saving if wages were paid every 2 week instead of weekly?

        Here,if the firm owes Rs300,000at  the end of week and zero at the beginning,the average wages accrual is half of  the Rs 300,000 i.e. Rs 150,000.on a biweekly payroll this doubles.the firm receives an additional Rs 150,000 of interest free financing on the average the additional accruals can be invested elsewhere at 14 percent.the benefit will be (Rs150,000*14%)Rs 21,000 and a Rs 300 payroll expenses can be saved 26 times a year for another Rs 7,800 savings .the total benefit is Rs 21,000+ Rs 7,800 =Rs 28,000.

Deferred Income


              Deferred income represents funds received by the firm for goods and service which it has agreed to supply in future.these receipts increase the firm's liquidity in the firm of cash;therefore they constitute a source of short-term funds.
                   
               Advance payments made by customers are primary sources of deferred income. these payments        are not recorded  as revenue until delivery of goods and service to the customers.they are ,therefore, shown as a liability in the firm's balance sheet and  called deferred income.

Berger Sambandha

KATHMANDU: Berger (J&N) Nepal on monday launched Berger Life Insurance scheme and Berger Health Insurance scheme under Sambandha ."under the life insurance scheme eligible members will be benefited with a life insurance policy of either Ra100,000; Ra200,000 ; Rs 500,000; Rs 750,000; or  Rs 1 million depending on various criteria,the company said, adding that the policy shall be valid for 15 and 20 years depending on the age of the eligible member with fixed term return every five years. the health insurance will cover self, spouse and up to two dependent children for reimbursement of up to Rs 100,000 per annum of medical expenditure in case of hospitalization."on fulfilment of certain criteria,premium for the above policies shall be completely borne by the company so that the member may enjoy the benefit free of cost,"it vowed.

Sources of Short-Term Financing

Various source of short-term financing are available to a firm.these sources may be grouped as spontaneous and non-spontaneous sources (negotiated financing).spontaneous sources of financing,which arise naturally as a part of doing business include trade credit and other payables . as the firm's sales increase ,accounts payable increase  in response to the increase purchases required to produce at higher levels similarly ,in response to increasing sales the firm's accruals increase as wages and taxes on the firm's increased earning.thus, accounts payable ,accruals are spontaneous sources of short-term financing.

      The negotiated source of short-term financing must be arranged on a formula basis .Bank lone ,commercial papers are major sources of negotiated source of short-term financing.

        Short-term credit can also be classified as:unsecured and secured sources.unsecured loans include all those sources that do not require any collateral.firms with high credit rating are capable to use unsecured sources. secured loans require specific assets as collateral.inventories and accounts receivable can be used as collateral for secured short-term loan.

Stock and Their Valuation

Companies issue common and preferred stock to raise ownership capital. common stock certificate are legal documents that evidence ownership of the holders in a company. common stock is permanent source of financing. common stock holders, being real owners of the company ,have residual claim on income and assets.therefore ,common stock holders are the ultimate risk and return bearer of the company.although the common stockholder are the actual owner of the company and have residual claim on incomes and assets,their liabilities in case of liquidation is limited the amount of their investment.

          The concept of value includes book value,liquidation value, intrinsic value of equity includes common stock ,share premium and retained earnings. liquidation value is the amount that a company could realize if it sell its assets after having terminated its business and paying to all claimant. intrinsic value is the present value of the cash flow stream providing to the investor, discounted at an appropriate required rate of return.on the other hand ,market value of a security is the actual price at which the stock is being traded in the market.

           In the chapter ,the concept of intrinsic value has been used ,the intrinsic value of a share is present value of all future dividends excepted over  an infinite time horizon.if dividend are expected to grow at a constant rate ,the intrinsic value of share of common stock can be computed by dividing expected dividend per share by (Ks-g).in case of zero growth common stock ,value of stock is computed by dividing dividend per share ,D1,by investors' required rate of return (Ks).if actual market price of the stock is less than intrinsic value,the stock is called underpriced  or undervalued.an underpriced stock should be purchased.if the stock is selling at above the intrinsic value,the stock is called overpriced or overvalued. an overpriced stock should not be purchased. the yield on common stock comes from two sources.the first source is the expected dividend yield and the second source is the expected capital gain yield or price appreciation yield.

              preferred stock is a hybrid security with some combined features of both debt and common stock and promises to pay fixed dividends and climes on assets.value of preferred stock is computed by dividend preferred stock dividend by investers' required rate of return.

Wonderful Maceio

Maceio shopping has a lot to offer, no matter what you are into. whether you are looking for a big shopping mall with all kinds of mass produced goods,or a local craft market with handmade goods made of Maceio's famous lacework , you will find it all while shopping at Maceio.

 Buying famous lace
Maceio is ow all over  Brazil for its wonderful style of handmade lacework.Local artisans use a cotton fibre  to weave clothes, curtains,mantels and other goods. this is a technique of lace working that has been handed down for generations.their lace goods are high quality,unique,colourful and quite inexpensive.

Handcrafted Souvenirs
Maceo is the best place for buying handcrafted souvenirs. these are little things like jewellry or postcards that make great gifts to take home. A few places in Maceio are especially known.for handcrafted souvenirs.
 
        Cheiro  da terra: here you'll find lots of variety and almost everything is handmade. this is a huge complex that specialises  in handmade gift items, and the prices are lower then anywhere ales. you can probably fine all the gifts you need here in one place ,as well as some truly unique items to take home for yourself.

      Pontal da Barra:This part of town is particularly  know for its handcrafted souvenirs, and actually this is the basis for the economy boost of this area. the local specialty is the handmade lacework that the region around Maceio is so famous for.two other great place to buy Maceio handcrafted goods are the feire de Artesanato da Pajucara  on Doutor Antonio Gouveia Avenue,and Associacao das Doceiras de Massagueira on Antonio Cunha Avenue.

Financial Markets

Financial environment consists of financial markets, financial institution ,and financial instruments and service.Financial market are the place where transaction  of financial instrument and service take place. financial markets exist in order to bring buyer and seller of securities and financial service together. they are the mechanism that exists in order to facilitate the exchange of financial assets, thus adding to the liquidity of financial assets financial assets include wide variety of assets such as stock,bounds ,treasury bills, commercial papers including time deposit , certificate of deposits, bankers acceptance and so on. financial markets facilitate the flow of saving generated from one sector of economy to another ,where there is the demand for funds. people and organizations that need to borrow money are brought together with those having surplus funds in the financial markets.

        In financial markets funds suppliers and fund borrowers are drought together with the help of financial intermediaries directly or indirectly . these intermediaries channel national's saving into most productive uses.lenders or suppliers of funds exchange money for other financial assets that tend to provide a better future return. the net effect of such a transaction is that they buy a claim against some one's money holding at some future data. in fact, they create loanable funds in the financial market.

           The development of financial market in any economy determines the degree of success of financial activities. because financial market add the liquidity of financial securities,invested are generally interested to buy those securities for which a market exists.

weekly share update

The stock market inched a little upward following the renewed interest of regulatory to promote the ailing securities market ,as the Nepal stock exchange index gained

Cooking gas scarcity in market

NOC,gas industries,dealers and retailers blame each other
Once again Nepal oil corporation the state oil monopoly  and liquified  petroleum gas entrepreneurs have started blaming each other as comsumer are facing acute shortage of the cooking gas in market.
Nepal oil corporation has completely faild to supply cooking gas according to market demand,general secretory at Nepal LP gas industries Association Kush Kumar Malli said."NOC has fixed 26,500 matric ton quota for 41gas industries but supplying just half of the quota," he said.according to him,the corporation distriduted around 12,000 metric ton  cooking gas in december and 16,000 MT in november which  is not sufficient  to meet growing demand in winter season. winter demand additional  2,500 MT  per month.total 41 gas bottling plants own 4,200,000 cooking gas cylinders and nearly one third cylinders need to refill every month. but the corporation  often fails to meet the demand of companies. however ,the state oil monopoly refutes the charge of its frequently failure to supply LPG. around 16,000 metric ton of cooking gas is enough to meet market demand,acting managing director Suresh kumar Agrawal said."the importan of cooking gas was shortfall in december due to lack of money ,"Agrawal said, adding that the supply in other months is normal.Debt-ridden Nepal oil corporation is incurring rs431.47 losson a cylinder of cooking gas  every month.the corporation bears the loss of fs517.76 million in cooking gas alone if it supplies cooking gas according to the demand of industries.Meanwhile ,the state oil monopoly has claimed  that the scarcity in the market is artificial. the corporation supplied some 1,000 kiloliters petroleum products in friday alone ,according to Agrawal ."fuel scarcity even after friday is not justifiable". he said that the fuel supply will return to normalcy from sunday ," Agrawal informed.however ,dealers said they have not got petroleum products according to their demand till date.

finance functions

finance function are carries on to achieve the objectives of the firm. finance function are mainly viewed from two approaches 'raising of funds' and 'raising and allocation of funds'.the first approach confines the finance functions to the procurement of funds only and ignores the use of the funds.it was the major finance function at the early stage of the development of finance.the second approach is comprehensive and universally accepted approach.we follow the second approach in this book.alternatively, finance  function may be viewed on the basis of the level of managerial attention required to get them performed.on this basis,finance function may be classified as managerial finance functions and routine finance function.

nature and scope of business finance

An individual , business firm and government organization do need to implement a number of programs to attain their goals. implementing programs require resources such as natural resources,human resource  and financial resource . effectiveness in the management of financial resource is  key to optimize the use of natural and human resource.in the case of an individual,management of financial resource(funds)is called by personal finance.the same is called by public finance in government organizations. business finance is frequently used to refer to the same thing,i.e. management of funds in the context of a  business firm.thus,broadly,finance as a discipline is categorized in to three domains,public ,finance,business finance and  personal finance.public finance is the management of funds for government.both local government.both local government units and central government .traditionally ,it deals with the management of revenue and expenditure of government personal finance refers to the management of funds of an individual.since public finance and personal finance are beyond the scope of this book,only business finance will be discussed at length.

     Nowadays, business finance,corporate finance,financial management,and managerial finance are used as synonym of each other.at the early stage of the  development of finance as a separate discipline,academics and practitioners used business finance.and latter on . they used corporate finance of business finance.the rational behind the  use of corporate finance was the dominance of corporate from of  business organization in the business world.traditionally,business finance used to focus only on the procurement of funds required to set up a corporation(company) and expansion of its activities.accordingly,the responsibility of financial manager was limited only to estimate the financial requirements of a corporation and raise the funds to meet the projected financial requirement  of a corporation.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

Introduction of Finance & Business

The history of  financial business is not so long. finance is a part of economics till late 1800s.it emerged.it emerged as a separate discipline in early 1900s.in early 1900s . there was rapid  industrialization in the United States and in most of  the countries of Europe. the key financial issues in that period were centered around raising of capital for formation of new business,expansion,merger, and reorganization. financial as a separate subject focused on descriptive considerations and legal aspects of these events. at that time the firms were facing the shortage of capital for expansion and modernization as no capital markets were developed. therefore,shifting of funds from individual savers to businessmen was quite difficult.at that time accounting statement  of  earning and assets values were unrealistic and trading in stock by insiders and other manipulators caused prices to fluctuate dramatically.as a result,the investors used to hesitate purchase stocks  issued by corporations.therefore,finance  had  to  look into legal issues relating to the issue of securities as well.during the depression of 1930s most businesses failed to run successfully. the failure in real market transmitted  to capital market in the form of fraudulent practices. these events led finance to  shift its focus on bankruptcy and reorganization and shift to regulation of capital market. finance still was focusing on legal matter but the focus shifted to survival aspects of firms rather then their expansion and modernization.in this phase , business finance was viewed from outsiders point of view, namely,the investment bankers,lenders, and other outside interests.the amendments in companies regulations and setting of accounting standard during 1940s increased investors confidence in published financial statement.the emphasis sifted to the day- to- day problems faced by financial managers in the area of funds analysis planning and control.this pace continued and increased when some mathematical tools were developed and successfully applied to the policies relating to cash, accounts receivable , inventories and fixed assets.

          During 1950s and onwards,the application of quantitative methods for analyzing financial problems changed the perspective of looking at financial issues. the emphasis shifted from outsiders to insiders viewpoint. this together with improvements in the efficiency and regulation of financial markets provided sound basic for the development of financial theories and their applications. business finance is one of the beneficiaries of the developments taking place in computing technologies in later decades of the 1900. in recent year, we have seen the development of business finance as a major contributor to corporate prosperity and growth  in the analysis or financing and investment decisions.

       Today ,as we are in twenty first century ,finance still focuses on value maximization as the corporate objective.however,two other trends are becoming increasingly important:(1)the globalization of business and (2)the increased use of information technology.many corporation today operate multinationals.multinational operation of large corporations has been possible today because of improvement in transpotation and communication.this has contributed to satisfy the low cost and high quality needs of consumer because o lower shipping cost,large -scale production and distribution and so on .with the change in technology ,developing new products has been a challenging work for a corporation . as a result of this ,they have been bound to operate in multinational on a joint venture basis.many corporations also go multinational to take the benefit of cheaper labor costs ,benefit of large market coverage ,which otherwise  could not be achieve in domestic operation.

              The millennium  is the age of computer and information technology.there is a possibility of linking companies to companies, to investor,to customers,and other stakeholders inside or outside the organization through a well designed network of computer of computer information system .thus financial managers are increasingly able to share information and to have ,"face to face"meetings with distant colleagues through vidio telecoferencing (Brigham and Houston,2001). because of increasing use of computer software programming on financial decisone -making ,the new generation of financial managers must have a good command on data based computer information system.

         Today the are of business finance has been broadened to a wider scope. the basis concern of business finance is considerate to be a rational matching of funds to their uses in the light of appropriate decision criteria .this is only the reason that the approach of business finance has  become more analytical and quantitative.throughout the modern phase in the history of business finance,many significant developments have been made in the field of capital structure theory ,efficient market theory, capital  technique .option pricing model , arbitrage pricing theory , valuation model ,dividend policy theory , agency theory,working capital management and so on.the  finance today also covers the aspects of risk management through financial engineering and  use of derivative securities . as a result, the business finance has become more charming and challenging discipline today.