Medicaids eligibility rules Essay Example | Topics and Well Written Essays - 500 words

Medicaids qualification rules - Essay Example Following back to the embraced laws, the Medicaid program originally gave clinical inclusion to low-pay families and other completely related people who meet qualification necessities (Andersen et al., 2013). Up-and-comers selecting to the program incorporated the visually impaired, matured, debilitated and pregnant ladies. Truth be told, Medicaid fills in as the nation’s essential wellspring of medical coverage inclusion for low-pay populaces. Incidentally, each state have consistently been directing its own Medicaid program, building up their own qualification guidelines, deciding the extension and sorts of administrations they spread, and setting the pace of installment. In addition, benefits fluctuate from state to state (Andersen et al., 2013). Since 2013 because of the development of Affordable Care Act, the enlistment to the program has been qualified uniquely for those with low pay rate. In this manner, states taking an interest in the extended Medicaid program are required to permit individuals with pay up to 133% of the neediness line to fit the bill for inclusion, including grown-ups without subordinate kids (Andersen et al., 2013). In other words the qualification for the program relies simply upon pay level. It is very dicey in the case of dealing with a program along these lines and whether the alterations acquainted with the law are productive. Fundamentally, there is an emotional contrast in needs that has a solitary grown-up who is paid deficient, pregnant lady or an old or crippled individual. For instance, after retirement older individuals spend either the remainder of life or some time in nursing homes, the expense of which is over the top expensive. Numerous individuals pay for these nursing homes with thei r own cash, regularly draining their life investment funds, and burn through thousands on it. For this situation Medicaid should help cut these expenses in any event. Another case is the point at which a settler, who doesn't have a generously compensated activity and can't bear the cost of conventional clinical protection, may fit the bill for Medicaid, because of money related necessities. Obviously, everyone applying for this

The Challenges Facing The Cultural Diversity Free Essays

These yearss social assorted variety plays a significant capacity in an organization. The guidelines know aparting these gatherings incorporate race, geographic balance, civilisation, sex, age, useful or instructive foundation, physical and psychological competency, etymological correspondence, ways of life, convictions, social foundation, monetary class, occupancy with the association and sexual affinity. As a MNC works in a planetary market it must be prepared to watch every single imaginable modification in the planetary condition and it must have the option to pass on and suit the singularity of the organization to them. We will compose a custom paper test on The Challenges Facing The Cultural Diversity or on the other hand any comparable theme just for you Request Now For delineation in India grown-up females ‘s will non work for dim so they need to pull off clasp for their benefit. The organization ca n’t offer quality stocks or administrations to the customers on the off chance that it does n’t comprehend and take in history the effect that the development has in all the systems. Laborers ordinarily imagine that their conduct has n’t got any impact on the finishing up product or administration, yet to be solid, each segment must hold an away from of the organization and an unmistakable strategic it. The cultural, political and endeavor development relies upon everybody in the organization, so the interior nation and the HR, one of the a large portion of import nations of an organization, must be created with the rest of the organization to achieve their finishes. The confusion and disregarding of various civic establishments, semantic correspondence and recorded foundation lead to disasters in the field of puting up transnational concern. To maintain a strategic distance from this, a general discernment of another state ‘s human progress and history is imperative. So broad social discernment, whenever combined with predisposition and prejudgement, is a block to viable planetary bearing. 2.1 Communication and semantic correspondence hindrances One boss test under human advancement is etymological correspondence hindrances. Correspondence is important for bearing. However conveying depends upon a typical etymological correspondence, a status that does non be in numerous planetary concern condition of affairss and that is the point at which the employments start. The most checked sign of the phonetic correspondence obstruction at work can be found in the connection between a transnational parent organization and its snare of planetary subordinates. A few elements add to the difficulty of achieving and drawing out strong correspondences and a profitable, synergistic relationship. Regardless of whether a worker is relatively capable in the semantic correspondence of the other party, loss of logical achievements is ever present as the use of mind, imagery, affectability, discourse, influence and rationale requires a truly elevated level of expert articulation. 2.2 Attitudes towards Appointments and Deadlines In America, Americans were give thorough regard to cut committednesss and it was an essential standard of demonstrable skill and neighborly conduct. Since everything will in general be absolutely planned, delaies in one task or cutoff time can hold a genuine undulating result on a colleague or customer ‘s other work committednesss. Be that as it may, for delineation: The more adaptable and open-finished assault to clasp of Indian and Sri Lankan concerns human advancement can make tensenesss and unfavorable emotions on American inverse numbers 3. MNC Workforce Diversity Worldwide Companies ( MNC ) needed to go up against a figure of new difficulties in their everyday worry over the past duo of mature ages. Globalization changed grouped things for planetary members. By and large MNC development shows a point of convergence on their main assets and areas like fund, building, selling, net incomes and creation, since they need to hold a major figure of customers and to increase net gain. A tremendous test MNC need to pull off is their workforce decent variety. The milepost inquire about by Hofstede with 116,000 enlisted people of IBM, a huge MNC in 50 states and 3 sections perceived four social qualities in the work environment: Individualism-cooperation, Power distinction, Uncertainty dismissing and manliness womanliness. For representation: the United States was the best and Guatemala was most minimal in independence. Malaysia was the most elevated and Austria was the least in the force separation esteems. Greece was the most noteworthy and Singapore was the least in the uncertainness dismissing values. Japan was the most noteworthy and Sweden was the least in the maleness esteems. There have been significant entirety of intercultural and diverse surveies with these social qualities, and some surveies exhibited the connection between discussing habits with a portion of these qualities. In view of this decent variety one of the cardinal achievement variables of MNC is the enrolling and decision of HR who offer important peculiarity. These people are sorting out the qualities and convictions of a worry. There are two cardinal difficulties inside planetary HRM explicitly building planetary corporate human advancements and creating planetary pioneers that must be aced so as to pull off decent variety and be fruitful in the planetary concern milieus. Pull offing decent variety in MNC during HRM To pull off workforce decent variety in MNC it ‘s a test for the human asset bearing to set up a planetary corporate development. To recognize with the corporate human advancement of the organization is the most significant thing for the work power. That is the reason developing a planetary corporate progress is one of the greater part of import difficulties for Multinational Companies. Worker conduct is perchance the most basic test that transnational associations need to cover with. In Multinational Companies there is a massive intensity of battles, as a result of its differing characters. As a result of this anxiousnesss will begin among workers. People attempt to oblige their practices to suit the requests of a curious domain. So as to oblige to the earth, people penance their independences to suit in with their new centers. People become joined into the human advancement of an association when they are effectively comprehended into the working environment. Fruitful social form lessens individuals ‘ uneasiness, work battle, and purposes to go forward. Also, effective adaptation increments hierarchical obligation, occupation fulfillment, affirmation, and occupation associate each piece great as fruitful socialization and constitution of relationship. 4. Difficulties of Working across Culture 4.1Stereotyping They are regularly misleadings and mistakes fixed in bogus guesses and broken examination. Typically this rating is found in a negative position. The difficulties to associations are to concede contrasts in positive footings. Force fights and can be the outcome of categorizing in associations. For outline, puting grown-up females, who characteristically have had lower position than work powers in the public arena ; senior way puts make position incongruence in the heads of a large number of the individuals. This can establish complexnesss in the pioneer/subordinate relationship and can establish power contrasts in a worry. This is done in such a way, that members of minority gatherings may happen it hard to use impact over assurance methods in the association. 4.2 Ethnocentrism Ethnocentrism results when chiefs distinguish the distinctions in civic establishments †yet have an inclining to accept that their development and their way of making things is the correct way, their way of making things is the solitary way and the best way. Any distinction from their development or from their way of making things is viewed as â€Å" disfigurement † or as a â€Å" blunder † or as â€Å" Incorrect way † . A great many people have the inclining to arraign ethnocentrism. Americans, Nipponese, Chinese, Germans, Gallic, Scandinavians, and Russians are more inclined to ethnocentrism than different civic establishments †when contrasted with different Asians, Latin Americans, British, Australians, Africans and Indians. 4.3Informal Integration Casual gatherings play a significant capacity in any worry. They impact both the accomplishment of the worry and the calling achievement of people. Whole quality projects rely, all things considered, upon worker part and casual networks can enormously affect this method. Casual gatherings are affected by variables, for example, normal phonetic correspondence, saw cultural comparability, and ethnocentrism. These corporate networks are basic for conveying in associations. It has been discovered that race has a significant result on corporate systems administration. This is non stunning as you would envision individuals to hold an inclination for association with individuals from one ‘s ain human advancement gathering, especially in a casual setting. 4.4 Parochial Attitude Parochial disposition alludes to an individual ‘s inadequacy to see social assorted variety. This is absolutely the opposite of ethnocentrism. Executives who are sent abroad frequently fitting individuals who are other than wearing suits and talk their semantic correspondence †this prompts them to disregard all other social contrasts and do them experience that all others are â€Å" just like us † . In today ‘s concern Earth, a great many people are arranged to dress in like manner †in suits or different articulations and talk in English, however this does non bespeak that all individuals have a similar human advancement †yet individuals much of the time simply observe the surface and accept that the other individual bits the equivalent social qualities. Executives from US/UK every now and again will in general uncover a solid parochial mentality †essentially on the grounds that the individuals with whom they relate on ordinary balance can talk English and are dressed similarly in suits or western gowns

What Is Disinhibited Social Engagement Disorder

What Is Disinhibited Social Engagement Disorder Basics Print Disinhibited Social Engagement Disorder Kids should have a healthy fear of strangers By Amy Morin, LCSW facebook twitter instagram Amy Morin, LCSW, is a psychotherapist, author of the bestselling book 13 Things Mentally Strong People Dont Do, and a highly sought-after speaker. Learn about our editorial policy Amy Morin, LCSW Medically reviewed by Medically reviewed by Steven Gans, MD on June 07, 2017 Steven Gans, MD is board-certified in psychiatry and is an active supervisor, teacher, and mentor at Massachusetts General Hospital. Learn about our Medical Review Board Steven Gans, MD Updated on February 03, 2020 istockphoto More in Psychology Basics Psychotherapy Student Resources History and Biographies Theories Phobias Emotions Sleep and Dreaming Most children are naturally cautious with adults they dont know. For the most part, a fear of unfamiliar people is healthy and helpful. However, some children do not have this fear. Children with disinhibited social engagement disorder aren’t afraid of strangers.?? In fact, they are so comfortable around unfamiliar people that they wouldn’t think twice about climbing into a stranger’s car or accepting an invitation to a stranger’s home. This uninhibited friendliness toward people they don’t know can become a serious safety problem for children if the disorder is left untreated. No Preference for Caregivers Over Strangers Most children seek contact with their primary caregivers, especially when they are in need of comfort. For example, a child who falls off a swing and skins their knee will likely look for the parent or caregiver who brought them to the playground to soothe them and tend to the wound. If a child with disinhibited social engagement disorder falls at the park, they may reach out to a complete stranger for emotional support. They might tell a random passerby that theyre hurt or even sit on a strangers lap on a park bench and cry. The childs uninhibited behavior can be confusing and unnerving for caregivers. Any adults involved may find it difficult to understand why a child interacts with unfamiliar adults without a moments hesitation. Signs of Disinhibited Engagement Disorder Disinhibited social engagement disorder was originally considered to be a subtype of another attachment disorder called reactive attachment disorder. However, in the fifth edition of the Diagnostic and Statistical Manual (DSM-5), disinhibited social engagement disorder was categorized as a separate diagnosis.?? To meet the diagnostic criteria for disinhibited social engagement disorder, a child must exhibit a pattern of behavior that involves approaching and interacting with unfamiliar adults as well as at least two of the following behaviors: Reduced or absent reticence in approaching and interacting with unfamiliar adultsOverly familiar verbal or physical behavior that is not consistent with culturally sanctioned and appropriate social boundariesDiminished or absent checking back with an adult caregiver after venturing away, even in unfamiliar settingsWillingness to go off with an unfamiliar adult with minimal or no hesitation It should also be noted that a child will only meet the criteria for disinhibited social engagement disorder  if the behaviors do not stem from impulse control problems, which are common in other disorders.?? For example, a child with ADHD may run off at the playground and forget to check that their parent is nearby, but a child with disinhibited social engagement disorder will wander off without giving their parent a second thought because they don’t feel the need to ensure their caregiver is around. In addition to meeting the diagnostic criteria behaviorally, a child must have a history of neglect as evidenced by one of the following: Social neglect including the persistent lack of having basic emotional needs for comfort, stimulation, and affection met by caregiving adultsRepeated changes of primary caregivers that limited the childs opportunities to form stable attachmentsRearing in unusual settings that limited the childs opportunities to form selective attachments (e.g. an institution with high child-to-caregiver ratios) If a child exhibits the behavior for more than 12 months, the disorder is considered persistent. The disorder is described as severe when a child exhibits the symptoms at relatively high levels.?? Disinhibited social engagement disorder stems from neglect and therefore may co-occur with other related conditions, such as cognitive and language delays or malnutrition. Difficulty Distinguishing Who Is Trustworthy Young children aren’t good at  identifying predators, but most are cautious about people they dont know. Most kids are able to make judgments about whether a stranger looks kind or mean based on an individuals face. Research has found that children make initial assessments about an individual’s trustworthiness based on that persons appearance.?? For a child with disinhibited social engagement, difficulties with facial recognition may contribute to their willingness to talk to and engage with strangers. Research using brain imaging has shown that children with the disorder cannot discriminate between a person who looks kind and safe and someone who looks mean and untrustworthy.?? They Crave Kindness From Anyone Kids with disinhibited social engagement disorder crave kindness from others. Since they can’t specifically identify a safe person, they may show affection toward anyone who gives them attentionâ€"including someone who is unsafe. It’s not unusual for a child with the disorder to hug a stranger in the grocery store or strike up a highly personal conversation with an unfamiliar adult at the playground. They may even sit down with another family at the park as if they had been invited to the picnic. A child with disinhibited social engagement disorder also indiscriminately seeks physical affection.?? For example, they may hug a passerby at the grocery store or sit on a strangers lap in a waiting room. Contributing Factors Disinhibited social engagement disorder is caused by neglect during infancy but is often misunderstanding about what constitutes neglect and what contributes to the development of attachment disorders in children.?? Contrary to common myths, the disorder isnt caused by being placed in daycare, and a child wont develop it as a result of being placed in their crib when they are crying. Neglect during infancy interferes with bonding and attachment. This impairs a childs ability to develop trusting relationships with caregivers and often persists into adult life. Infants learn to trust their caregivers when these individuals consistently respond to their needs. For example, a baby who gets fed in response to their hungry cries will learn that they can count on their parent for nourishment. Children who are neglected may not  bond with their caregivers. If a crying baby is constantly ignored, they learn that the people around them are unreliable, if not totally unavailable. A baby who is left unattended most of the time with little social engagement may not form any type of relationship  with a caregiver. Consequently, that child may be at risk of an attachment disorder. While the consequences can be severe, its important to know that not all neglected children develop disinhibited social engagement disorder. In fact, many children will grow up to have healthy relationships with no lasting attachment issues. Foster Parents and Adoptive Parents Should Be on the Lookout Disinhibited social engagement disorder stems from neglect that occurs during the first few months of life. The American Psychiatric Association (APA) states that the disorder almost always develops by the age of two.?? However, disinhibited social engagement disorder may not become apparent until long after the neglect issues have been resolved. Foster parents, grandparents, and other caregivers who are raising children who experienced neglect as infants should know that children may still be at risk for developing attachment issues even if they are no longer being neglected. How Disinhibited Social Engagement Disorder Changes Over the Years The nature of disinhibited social engagement disorder behaviors can change and evolve as a child gets older.?? Toddlers with the disorder often begin showing a lack of fear toward unfamiliar adults, such as by holding hands with a stranger or sitting on the lap of a person they have only just met. During the preschool years, children with disinhibited social engagement disorder will also begin exhibiting attention-seeking behavior, such as by making loud noises on the playground to get unfamiliar adults around to look at them. By middle childhood, children often show verbal and physical overfamiliarity as well as inauthentic expression of emotions. A preteen may laugh when others laugh or appear sad to manipulate a social situation (rather than out of genuine emotion). Among peers, they may be overly familiar if not forward. For example, saying “I want to go to your house,” when meeting a new classmate for the first time. Adolescents with disinhibited social engagement disorder are likely to have problems with peers, parents, teachers, and coaches. They tend to develop superficial relationships with others, struggle with conflict, and continue to demonstrate indiscriminate behavior toward adults.?? How Common Is Disinhibited Social Engagement Disorder? Disinhibited social engagement disorder is thought to be fairly rare. Children who have been raised in institutions (such as an orphanage) and those who have had multiple foster care placements are at the highest risk for developing the condition. Many children with a history of abuse or neglect do not develop attachment disorders, but studies suggest that around 20 percent of children in high-risk populations develop disinhibited social engagement disorder.?? Risks and Consequences It’s important for kids to have a healthy fear of strangers and potentially harmful people. Raising a child with disinhibited social engagement disorder can be quite confusing and terrifying for caregivers. A four-year-old with the disorder might wander off with a stranger at the mall or a nine-year-old might enter a neighbor’s home without thinking twice about the safety or potential consequences of these actions. Caregivers raising a child with disinhibited social engagement disorder must keep constant watch to ensure the child doesn’t enter a harmful situation. They may need to frequently intervene to prevent the child from interacting with strangers. Children with attachment disorders struggle to develop healthy relationships with teachers, coaches, daycare providers, and peers.?? Their behavior can be alarming enough to the people around them, such as a classmates family, that it precludes social activities (particularly when people are not familiar with the disorder). Researchers are studying the long-term outcomes for children with disinhibited social engagement disorder, particularly whether its effects extend to adulthood.?? Treatment for Disinhibited Social Engagement Disorder It’s important for children with attachment disorders to receive  consistent care from stable caregivers. A child who continues to move from foster home to foster home or one who continues to be institutionalized is not likely to improve. Once consistent care has been established, treatment can begin to help strengthen the bond between a child who has experienced neglect and a primary caregiver. Attachment disorders don’t tend to get better on their own. Professional treatment typically consists of therapy with both the child and caregivers and treatment plans are individualized to meet a child’s unique needs and symptoms.?? If you are concerned that a child in your care may have an attachment disorder, talk to your pediatrician. They can refer your child to a mental health professional for a comprehensive assessment. The 9 Best Online Therapy Programs

How to Become a Doctor Education and Career Planning

A medical doctor (also known as a physician) is an expert in the diagnosis and treatment of medical conditions. Many years of education and training are required to become a doctor. Most physicians undergo eight years of higher education (four in college and four in medical school) and another three to seven years of on-the-job medical training, depending on their chosen specialty. This is a significant investment of effort and time—over a decade in total. If you wish to become a doctor, it is essential to understand each step in the process, from your college degree to board examinations. Undergraduate Degree   After graduating from high school, a student who is interested in becoming a doctor must attend college or university. Pre-med students are required to excel in coursework in biology, chemistry, and physics. Though pre-med students are not required to major in a specific area, many will choose one of these subjects as their focus. Medical schools often appreciate well-rounded students with a liberal arts education, demonstrating a breadth of intellect and abilities. Once the specific prerequisites have been met, other coursework may round out the individual’s application. This four-year degree is required to attend medical school. Medical College Admission Test (MCAT)   One of the major testing milestones on the journey to becoming a physician is the Medical College Admission Test (MCAT). The MCAT is a 7.5 hour standardize test that gives medical schools an objective assessment of the knowledge you obtained from the required pre-med coursework. The exam is taken by more than 85,000 students each year. The MCAT is made up of four sections: Biological and Biochemical Foundations of Living Systems; Chemical and Physical Foundations of Biological Systems; Psychological, Social, and Biological Foundations of Behavior; and Critical Analysis and Reasoning Skills (CARS). The MCAT is typically taken in the year prior to the anticipated year of admission to medical school. Therefore, college students usually take it late in their junior year or early in their senior year. Medical School Students apply to medical school by submitting an application through the American Medical College Application Service (AMCAS). This application collects basic demographic information, coursework details, and MCAT scores that are then shared with potential medical schools. The application opens in the first week of May for students who plan to matriculate the following fall. Medical school is a four-year program that includes further education in the sciences, patient evaluation and assessment training (e.g., history-taking, physical examination), and specialized instruction across disciplines in the basics of medical treatment. The first two years are predominately spent in lecture halls and laboratories, and the second two years are spent in rotations among various specialty clerkships in clinics and hospital wards. The knowledge and skillset obtained during medical school serve as the foundation for the practice of medicine. United States Medical Licensing Examination (USMLE) Parts 1 and 2   In the context of medical school, national testing milestones include the United States Medical Licensing Examination (USMLE) Parts 1 and 2. The first part usually is taken at the conclusion of the first two years of medical school. It tests some of the basic subjects and principles that underlie medicine: biology, chemistry, genetics, pharmacology, physiology, and pathology as it pertains to the body’s major systems. The second part, which assesses clinical skills and clinical knowledge, usually occurs late in the third-year clerkship rotations or early in the fourth year of medical school. Residency and Fellowship After graduating from medical school, you are technically a medical doctor, entitled to add the credentials M.D. to their name and use the title â€Å"Dr.† However, medical school graduation is not the conclusion of the required training to practice medicine. The vast majority of physicians continue their training in a residency program. After completing a residency, some physicians choose to specialize even further by completing a fellowship. Applications to residency are submitted during the final year of medical school. In the first year of a medical residency, a trainee is known as an intern. In the years that follow, they may be referred to as a junior or senior resident. If a fellowship is undertaken, the physician will be called a fellow. There are many potential residency and fellowship training programs. Generalists may complete a residency in pediatrics, internal medicine, family medicine, surgery, or emergency medicine within three years. Specialty training—such as becoming a neurologist, psychiatrist, dermatologist, or radiologist—takes an additional year. After a residency in internal medicine, some physicians complete another two to three years of training to become a cardiologist, pulmonologist, or gastroenterologist. Neurosurgery requires the longest training (seven years). USMLE Part 3   Physicians typically take part 3 of the USMLE testing during the first year of residency. This examination further evaluates knowledge of the clinical practice of medicine, including the diagnosis and treatment of common conditions. Once completed, the resident is eligible to apply for a state medical license and may practice more independently. State Licensure Many residents apply for a state medical license during training. This certification requires a thorough background check, verification of transcripts and training, and the payment of an application fee to the state medical board. During residency, having a state medical license enables the resident to moonlight—make extra money by assisting in a role outside of the training program—if he or she wishes. Board Certifications   Finally, most physicians will undergo a board examination to demonstrate their mastery of knowledge and skills related to their specialty training. These exams occur after the completion of the relevant residency or fellowship training program. After passing the boards, the doctor will be deemed â€Å"board-certified.† Being board-certified may be required to obtain hospital privileges or to contract with insurance companies to practice a specialty. Continuing medical education, including the attendance of medical conferences and repeat board certification examinations at 10-year intervals, is often required for however long as the doctor continues to maintain their medical credentials. For doctors, learning truly never ends. Sources â€Å"What You Need to Know About the MCAT ® Exam.†Ã‚  Association of American Medical Colleges, https://students-residents.aamc.org/choosing-medical-career/article/preparing-mcat-exam/.Applying to Medical School. Association of American Medical Colleges, https://students-residents.aamc.org/applying-medical-school/article/applying-medical-school/.

Atomic Number Definition - Chemistry Glossary

The atomic number of a chemical element is the number of  protons in the nucleus of an atom of the  element. It is the charge number of the nucleus since neutrons carry no net electrical charge. The atomic number determines the identity of an element and many of its chemical properties. The modern periodic table is ordered by increasing atomic number. Atomic Number Examples The atomic number of hydrogen is 1; the atomic number of carbon is 6, and the atomic number of silver is 47: any atom with 47 protons is an atom  of silver. Varying the number of neutrons in an element changes its isotopes while changing the numbers of electrons makes it an ion. Also Known As: The atomic number is also known as the proton number. It may be represented by the capital letter Z. The use of capital letter Z comes from the German word Atomzahl, which means atomic number. Before the year 1915, the word Zahl (number) was used to describe an elements position on the periodic table. Relationship Between Atomic Number and Chemical Properties The reason the atomic number determines the chemical properties of an element is that the number of protons also determines the number of electrons in an electrically neutral atom. This, in turn, defines the electron configuration of the atom and the nature of its outermost or valence shell. The behavior of the valence shell determines how readily an atom will form chemical bonds and participate in chemical reactions. New Elements and Atomic Numbers At the time of this writing, elements with atomic numbers 1 through 118 have been identified. Scientists typically talk about discovering new elements with higher atomic numbers. Some researchers believe there may be an island of stability, where the configuration of protons and neutrons of superheavy atoms will be less susceptible to the quick radioactive decay seen in known heavy elements.

Tax memo Financial Alternatives Example

Essays on Tax memo: Financial Alternatives Coursework Financial Alternatives Financial Alternatives Facts Cecile one of the big shareholder, invests $100,000 for a sole ownership of stock in an S corporation. New food product development is ongoing in the corporation and Cecile expects that the business plan requires approximately $200,000 in capital, this will only be possible if all other prospected trades payable. The first $100,000 of this total is to come from Ceciles contributed capital while the remaining $100,000 of funds will come from other sources including: a. Corporation borrowing from local banks b. Borrowing from her late husband’s real estates c. Borrowing from personal corporation funds From all the borrowed money, the corporation should pay interest at a rate accepted within each type of borrowing. Therefore, each of the borrowing mechanism deployed above, will attract different interest rates to the capital and the business itself including the accrued profit (Damodaran, 2012). For instance, personal income usually attract different tax rates and taxing systems compared to corporate financial incomes. Taxing Cecil’s Capital Contribution The cost of organizational capital is usually defined the cost that is payable in raising the funds and they include loaning from issuing bonds and bank loans. Such terms of loans are usually attract annual percentage. The weighted average cost of capital (WACC) which is expressed as the arithmetic average of each source of capital by proportion of funding obtained from each source. Therefore; the borrowing from personal corporation funds will be taxed as ratio of the amount of each contributor. Nonetheless, such taxes are deducted on annual basis (Stickney, 2010). Moreover, it is worth noting that all these including Borrowing from her late husband’s real estate contributes to cost of debt and all these are subject to annual taxation. The following rates and taxes will be incurred respective of each type and form of capital sources as was accrued by Cecile for her business. The yields of bonds before and after tax on the $100,000 pretax Organizational capital and personal corporation funds Federal interest before tax After tax Taxable loan $100,000 $69,200 Tax exemption $75,800 $75,000 Subsidy tax rate from Federal $40,800 Interest saving from S L 24,200 Windfall to Cecil $16,600 Percentage of windfall 41 % Capital from bank Before tax interest After tax interest Taxable amount $100,000 $65,000 Tax exempts $75,800 $75,800 Subsidy from the federal taxation unit $35,000 Savings from the S $ L $24,200 Windfall to Cecil $10,800 Percentage windfall 31% From the above calculations, it is apparent that different sources of income attract different taxation rates. In essence, funds obtained from bank and other financial institutions usually attract low tax rates compared to funds obtained from personal incomes. Therefore, it would be highly profiting for Cecil to obtain her capital from banks and other financial institutions that she does not have direct effect or contribution (Damodaran, 2012). However, the government usually give large subsidies to personal funds before taxing than on loan, but the same does not set off the interest rates attracted or subjected on these funds. Hence, I strongly recommend for Cecil to consider borrowing her capital from institutions that will lead her to minimal taxation as opposed to personal funds that will never be profitable for he business (Stickney, 2010). References Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset. Hoboken, N.J: Wiley. Stickney, C. P. (2010). Financial accounting: An introduction to concepts, methods, and uses. Mason, OH: South-Western/Cengage Learning.

Tobacco Perfectly Competitive Market - Free Sample Solution

Question: Discuss about the Tobacco Perfectly Competitive Market. Answer: Introduction: The question states that the tobacco market can be assumed as a perfectly competitive market. As a result, the market would host a huge number of sellers and the size of each of these sellers would not be large enough so as to affect the market price. Additionally, the product sold by each of these sellers would be exactly the same, hence there would be no difference in the quality of the product sold. In such a market, the price of tobacco would be determined based on the consideration of the demand and supply of tobacco at the industry level and not at the firm level. The above aspect with regards to the tobacco market has been captured and represented below (Krugman Wells, 2013). On the left hand is the price, cost and revenue for a single firm while on the right is the industry demand and supply. It is evident that the individual firm is a price taker and not a price maker and the equilibrium price is essentially determined by the respective demand and supply at the industry level. It is noteworthy that the long run equilibrium is driven by the underlying price which plays the role of a equilibrating force. This is because if in the short run the firms would make economic profit, then new firms would enter the market due to absence of entry barriers. Over a period of time, this would lead to increased supply which would bring down price to a level where the economic profit for the individual firms become zero and hence an equilibrium position is reached where the new firms enter only to the extent an existing firm leaves the market (Mankiw, 2014). Based on the article given, the following two factors are responsible for the decrease in the tobacco production. Increase of tax burden on cigarettes to the tune of 12.5% during the previous two years Introduction of the plain packaging norms Impact of tax The following graph aptly captures the effect of levying tax on cigarettes as indicated in the article. Assuming that a taxation burden of $ 0.60 is levied on cigarettes and this whole tax burden is borne by the consumers, then the unit price of cigarette increases to $ 2.60. This leads to a shift equilibrium point from A to B. As a result of the increased price, the cigarette demand would plummet but the supply curve would be altered from its original position S0 to the new position S1. The net effect of the change in demand and supply would lead to a decrease in the cigarette consumption. The extent of decrease in consumption would be driven by underlying elasticity of cigarettes in the particular market where tax is imposed (Nicholson Snyder, 2011). Impact of plain packaging In Australia, the enforcement of plain packaging norms has limited the opportunity of marketing their brand to the cigarette manufacturers. This in all likelihood would lower the cigarette demand especially amongst the youth who tend to find the plain packaging non-attractive and may not be currently addicted to smoking (WHO, 2013). The following diagram accurately reflects the effect of plain packaging on the corresponding price and quantity of cigarettes. It is apparent that the plain packaging norms would lead to a shift in the demand which causes a leftward shift in the demand curve while the supply of cigarette remains unaltered. As a result of the above alteration in the demand curve, there has been a decrease in both the equilibrium quantity and price which is clearly indicated in the above graph. Therefore, it is evident from the above graph that the plain packaging norms would lead to lower consumption of cigarettes and hence would be beneficial to the society (Pindyck, Rubinfeld, 2001). It is noteworthy that plain packaging is rarely implemented in isolation and often involving levying of high taxes so as to enhance price coupled with decrease in demand so as to limit the incidence of chain smoking and encourage the users to search for cheaper alternatives. The price elasticity of a given product is driven by a host of factors whose cumulative effect needs to be taken into consideration. These factors include the nature of good (basic, luxury, giffin), underlying income of the consumer, cheap substitute availability and other factors (Krugman Wells, 2013). The tobacco demand is likely to be relatively inelastic (i.e. elasticity would be lesser than 1). This is primarily because the availability of cheaper alternative is highly limited particularly considering the addictive nature of consumption of tobacco in various forms. As a result, even when the price increases by some amount, most users tend to continue with the consumption although there is some decline. However, the formula for PED (Price elasticity of demand) is shown below (Mankiw, 2014). PED = - (Percentage quantity change/Percentage price change) For the habitual tobacco users in various forms, it is extremely difficult to decrease the consumption that too suddenly and only in the long run would there be seen tangible results in this context. Therefore, the price increases for tobacco would cause a proportionately lesser decrease in the tobacco consumption thus, the PED magnitude is lower than 1. Even though, through technology interventions products like e-cigarettes are being hailed as viable alternative for reducing tobacco consumption but there are issues with regards to their usage due to which these are not very popular. However, it is likely that in the future viable and safer alternatives of tobacco are available which would lead to increased PED for tobacco. The impact of sales tax on the consumers and producers can be explained through the assistance of the following diagram. It is evident from the above demand curve that the nature of demand for the given product is inelastic. This is apparent from the fact that even when the price increase has occurred from P to P1, the corresponding quantity decrease is comparatively marginal only as denoted through a shift from Q to Q1. Due to the inelastic nature of demand, the consumption of cigarettes would not decline even though the price may increase as consumers are addicted. This allows the sellers to act a pass through mechanism with a major portion of the incremental tax burden being borne by the final consumer (Krugman Wells, 2013). This situation is reflected in the diagram shown above where the green area indicates the extra burden for the producers while the pink area indicates the extra burden for the consumers. The diagram clearly highlights the fact that area in pink covers more area than the area in green. In case, the elasticity of cigarettes increases owing to availability of comparable and cheaper alternatives, then the pink area would shrink and would be substituted by the green area. This would be indicative of the diminishing clout on the part of the seller with regards to pass the incremental tax burden to the consumers as this may lead to a decrease in the demand of cigarettes. Thus, it may be generalised that the incremental burden of tax borne by the producer is directly proportional to the product PED (Pindyck, Rubinfeld, 2001). References Krugman, P Wells, G 2013, Microeconomics, 3rd edn Worth Publishers, London Mankiw, G 2014, Microeconomics, 6th edn, Worth Publishers, London Nicholson, W Snyder, C 2011. Fundamentals of Microeconomics, 11th edn, Cengage Learning, New York Pindyck, R Rubinfeld, D 2001. Microeconomics, 5th edn. Prentice-Hall Publications, London WHO 2013. Reducing the appeal of smoking first experiences with Australias plain tobacco packaging law, World Health Organisation, Available online from https://www.who.int/features/2013/australia_tobacco_packaging/en/ (Accessed on July 15, 2016)