Legal & Tax Implications Essay Example | Topics and Well Written Essays - 1000 words

Legal & Tax Implications - Essay Example Your organizations expenses for the event total ,000. Artists, galleries, and individuals donate art to be auctioned at the event. Purchasers of tickets to the event, donors of art, and purchasers of the art at the auction have asked for receipts to substantiate their gifts (for income tax deduction purposes) to your organization. How do you respond? With regards to gifts of art, the law states that â€Å"gifts of art and other tangible personal property are not deductible if there are "intervening interests." For example, if a person gives a painting to a museum but does not actually deliver the painting and retains it in her home, then the gift is not complete until the actual delivery to the museum occurs. At that time, the gift is deductible. Sec. 170(a)(3). The obvious purpose of the rule is to allow the deduction only when the charity actually has ownership and control of the art or other personal property.† (Crescendo Interactive, Inc. 2009) Therefore, the purchasers of tickets to the event, donors of art, and purchasers of the art at the auction who have asked for receipts to substantiate their gifts can only do so when their respective art pieces have actually been sold and the proceeds have been remitted to the charitable organization holding the fundraising event. Case Study 2: P.J. Morgan started a bank in 1947. Morgans bank merged with Mega Bank Corporation (a publicly traded company) in 2000. Morgan now owns 1 million shares of Mega Bank Corporation. The share price is currently 0 per share and Morgans cost basis in the stock is .01 per share. Morgan has pledged ,000 to your organization and he plans to write a check for that amount before the end of the tax year. What might be another option Morgan should consider? What are the tax implications? According to Eisenhower Medical Center Foundation (EMCF), the basic rule is that â€Å"The basic rule is that a gift to a charity is deductible when the property or cash is delivered

The Functions of the Financial System | Economics Essay

The Functions of the Financial System | Economics Essay Introduction The objective of this chapter is to provide a theoretical and empirical literature review of the relationship between financial development and economic growth in general and more narrowly at sectoral growth analysis. Therefore, it is important to determine what financial development relates to, how the financial sector and overall economy are related to each other, and the implications of such a relationship for other sectors of the economy. In the following of this chapter, the study will first review the theory of financial development, whereby explaining the framework of financial system and how they affect growth of the real sector. The next section will focus on those authors who believe that economic growth is a good predictor of financial sector development. Further, effects of financial development on various sectors growth will be discussed. The next section will review the existing empirical studies examining the relationship of FD and growth. Theoretical Background Financial System A financial system is a network of markets and institutions that bring savers and borrowers together (Hubbard, 1997). Financial systems have become the keystone of most economies around the world. This field is of great interest to economists, who research mainly the causes and impacts of its development. Through years, economists has changed their perceptive has about the nature of the relationship between financial systems and economic growth. Bagehot (1873) established the pioneering theory on the relation between financial system and economic growth in his book Lombard Street: A Description of the Money Market (1873). He found that financial markets facilitate the accumulation of capital and these markets manage the risk from relative investments and business strategies. Later, Schumpeter (1911) identified that financial intermediaries facilitate technological innovation by gathering savings, evaluating investment projects, monitoring managers and facilitating transactions. The main argument of Schumpeter was that financial development affects economic growth through technological changes and this is done by banking institutions than stock markets. According to the Schumpeterian model, banks create entrepreneurs who carry out new investment projects that lead to economic growth as these rise in investment opportunities are available due to new combinations of providing finance to entrepreneurs. Following, there were Goldsmith (1969), McKinnon (1973) and Shaw (1973) who emphasised on the role of capital accumulation in economic growth. In the McKinnon-Shaw model, a well developed financial system mobilises savings by channeling small valued savings into profitable large scale investments. According to them, without a proper participation of financial system, these savings might not be available for further investment because a financial institution mobilises savings from various savers in an efficient and effective way by avoiding information asymmetries and lowering transaction costs. Unlike Schumpeter, they did not distinguish between the banking sector and the stock market. For them, both of markets are important in the process of economic growth. Although Schumpeter (1911), McKinnon (1973), Shaw (1973) and other economists emphasised on the positive role of financial development on economic growth, they failed to explain clearly how channeling of those funds affects growth. Then came Levine (1997, 1999), who has first depicted this link clearly. Levine demonstrated five main functions of the financial markets that affect the economic growth. More specifically, Levine pointed out that financial system Facilitate the trading, hedging, diversifying, and pooling of risk, Monitor managers and apply corporate control, Allocate resources, Mobililize savings, and Facilitate the exchange of goods and services. Functions of Financial System Unlike other economists, Levine (1999) produced a comprehensive way of showing the significant role for financial markets. The impact on economic growth occurs through the following channels according to Levine. As discussed above, financial markets play a significant role in economic growth through their role of allocation capital, monitoring managers, mobilizing of savings and promoting technological changes among others. Economists had held the view that the development of the financial sector is a crucial element for stimulating economic growth. Financial development can be defined as the ability of a financial sector acquire effectively information, enforce contracts, facilitate transactions and create incentives for the emergence of particular types of financial contracts, markets and intermediaries, and all should be at a low cost.  [1]  Financial development occurs when financial instruments, markets and intermediaries ameliorate through the basis of information, enforcement and transaction costs, and therefore better provide financial services. The financial functions or services may influence saving and investment decisions of an economy through capital accumulation and technol ogical innovation and hence economic growth. Capital accumulation can either be modeled through capital externalities or capital goods produced using constant returns to scale but without the use of any reproducible factors to generate steady-state per capita growth.  [2]  Through capital accumulation, the functions performed by the financial system affect the steady growth rate thereby influencing the rate of capital formation. The financial system affects capital accumulation either by altering the savings rate or by reallocating savings among different capital producing levels. Through technological innovation, the focus is on the invention of new production processes and goods.  [3]   As market frictions and laws, regulations and policies differs to a greater extent across economies and over time, the impact of financial development on growth may have different implications for resource allocation and welfare in the economy. Relationship between Financial Development and Economic Growth (i) Link of financial development and real sectors of the economy The theoretical evidence that financial sector development fosters economic growth has been accumulating over many decades. Schumpeter (1911), McKinnon (1973), Shaw (1973) Goldsmith (1969), Levine (1999) and other proponents came with a clear understanding of the role of financial development on economic growth. However, these theories do not provide a clear explanation of the transmission of financial development to the real sector of the economy thats lead to growth. Recently, some researchers have translated these abstract links between financial development and economic growth into concrete channels, such as household consumption, investment, trade (exports and imports) and government spending. Consequently, any increase from household consumption, investment, trade and government spending will have a positive impact on the real sector of the economy, and on the growth of economies. This link is illustrated below: Yt= Ct+ It+ (Xt-Mt) + Gt, where Yt is the gross domestic product, Ct is household consumption, It is domestic investment Xt is exports, Mt for the imports and Gt is government spending. Financial development and household expenditure are highly correlated, as discussed in Claessens and Feijen (2006). They argued that despite the causal relationship between financial development and household consumption is less clear than in the case of income, there is evidence that financial development is a leading indicator for increases in household consumption. Apart from increasing the household welfare, financial development also increases investment through the allocation of capital to private sector. The World Business Environment Survey (WBES), recent research concludes that finance is the most important constraint on firm growth. Other studies such as, Rajan and Zingales (1998), Perotti and Volpin (2005) have found that the number of firms in an industry grew faster in counties that have better financial development. Claessens and Feijen (2006) also highlighted that the presence of financial intermediaries with their products such as credit cards, debit cards facilitate domestic and international payment service whereby facilitating trade. The Claessens and Feijen framework hence has demonstrated the link between financial development and economic growth through concrete channels. (ii) Finance- Growth Nexus In the traditional development economics, there exist two distinct views of the finance-growth nexus. The first view was first proposed by Schumpeter (1911) who argues that services provided by financial intermediaries are essential drivers of innovation and growth. Thus, well-developed financial systems channel financial resources to their most productive use. The Schumpeters view was later formalised by Goldsmith (1969); McKinnon (1973); Shaw (1973); King and Levine (1993); Pagano (1993); Fry (1995); Zervos and Levine (1996, 1999); Christopoulos (2004); Manoj and Kamat (2007) and Hasan, Watchel and Zhou (2008) where all believed that financial development is a catalyst for economic growth. The second view suggests that economic growth is the major driving force behind the development of the financial sector. This idea is very much stressed in the work of Robinson (1952). According to him, as an economy grows, more financial institutions, financial products and services emerge in markets in response to a higher demand for financial services. Further, the Patricks hypothesis (1966) was introduced with the supply leading and demand following, which is important to determine the relationship between financial development and economic growth. The demand following view explains the demand for financial services as dependent upon the growth of real output and the modernization of subsistence sectors. Thus, the creation of modern financial institutions, their financial assets and liabilities, related to financial services are a response to the demand for these services by investors and savers in the real economy. Therefore, the more rapid growth of real national income, the gr eater will be the demand by enterprises for external funds (the savings of others) and therefore financial intermediation. Also, with a given aggregate growth rate, the greater the variance in the growth rates among different sectors or industries, the greater will be the need for financial intermediation to transfer saving from slow-growing industries to fast-growing industries. In this case, an expansion of the financial system is induced because of real economic growth. The second causal relationship between financial development and economic growth is termed the supply leading by Patrick (1966). Supply leading has two functions. Firstly, is to transfer resources from the traditional low-growth sector to the modern high-growth sector and secondly, to promote and stimulate an entrepreneurial response in these modern sectors. Thus, the availability of financial services stimulates the demand for these services by the entrepreneurs in the modern, growth-inducing sectors. However, previous empirical studies have produced mixed and conflicting results on the nature and direction of the causal relationship between finance and economic growth

Dickens and his Stucture Of Hard Times Essay -- essays research papers

â€Å"On every page Hard Times manifests its identity as a polemical work, a critique of Mid-Victorian industrial society dominated by materialism, acquisitiveness, and ruthlessly competitive capitalist economics† (Lodge 86). The quotation above illustrates the basis for Hard Times. Charles Dickens presents in his novel a specific structure to expose the evils and abuses of the Victorian Era. Dickens’ use of plot and characterization relate directly to the structure on account that it shows his view of the mistreatments and evils of the Victorian Era, along with his effort to expose them through literary methods. A befitting display of structure is evident through his giving name to the three books contained in Hard Times. The titles of the three appropriately named books are an allusion to the Bible, and are also â€Å"given a further twist in Gradgrind’s recommendation to ‘Plant nothing else and root out everything else’ (except facts)† (Lodge 91). In the first book, titled â€Å"Sowing, † we are introduced to those that Dickens creates a firm character basis with. The opening chapter emphasizes on Thomas Gradgrind Sr., and his students fittingly referred to as â€Å"vessels before him ready to have imperial gallons of facts poured into them until they are filled to the brim† (Dickens 12). Gradgrind’s methods of education are employed to show Dickens’ view on the evil of the educational system. Among the â€Å"vessels† are Bitzter and Sissy Jupe. They exemplify two entirely d...

Importance of Muhammad for the Success of the Arab Conquests Essay

When considering the question of the Prophet’s success in the Arab Conquests there are various factors that must be taken into consideration. These factors shape the success, give reason for the rapidity of the spread and illustrate why Arabia was so responsive to his message. Factors such as the state of Arabia and its pagan tribes, recent historic events and the dissatisfaction of the peoples, shape this drastic and historic change in the area. Arabia was in a constant state of war due mainly to the power struggle between the Sasanian and Byzantine empires; the emperors spoke different languages and believed in other religions than their peoples. There was little loyalty and it did not much matter to the folks under which rule they lived. The lack of community, a sense of unity between the various tribes in Arabia and multiple wars were predominant factors that made way for the imminent success of Muhammad in the Arab Conquests. From the time of the Prophet’s first re velation in 610 to the death day of the Prophet in 632, Arabia had undergone a drastic and, for such time limitations, incredible changes. Starting with the geographical aspects it must be elaborated in context how the state of Arabia, the birthplace of Muhammad, was functioning and what its beliefs were pre-Islam. It must also be mentioned that in comparison to the rest of the Middle East, Arabia was considered fairly primal. It lacked any form of government or state policies as every clan was totally independent and had its own rules and leaders, called Shaykh. Such leaders acted as mediators to disputes and needs of the tribe. The tribes mostly lived off pasturage as opposed to agriculture, excluding the harams that were implemented on travel routes, in oasis and in junctures to neighbouring areas. These served as a common point for economic, social and political trade, as well as worship. Arabia was home to various pagan tribes, including the Banu Hashim into which the prophet was born, spread over the area in no apparent kind of structure. Thus, it is fair to say that Arabia was a socially and culturally less developed area than the rest of the Middle East. Secondly, Arabia was subject to numerous power struggles, which fragmented it severely. From local tribal wars, to clashes between Yemeni, Nabatean and Roman kingdoms (sixth century BC – 271 AD ) to finally the main exhaustion of the region in the early seventh century – wars  between Sasanian and Byzantine empires. Only the rise of Mecca in the late sixth century as a centre for economic trade and pilgrimage, could establish a semi treaty between the leading tribe called Quraysh, Byzantines and Bedouins to ensure safe passage of goods, which was beneficial to all. Mecca won recognition as a commercial and political influence in Arabia. However, most of Arabia was still home to incompatible Bedouin communities, which opposed each other in political, social and religious views. This resulted in many conflicts and portrayed, once again, Arabia as a torn and unstable area. Having illustrated the state of Arabia, it portrays â€Å"a world waiting for a guide† around the time of the rise of Islam. A new form of existence, social trend and way of life was to be largely appreciated by rivalling tribes. The main documents of Islam, which emerged or deal at the time of the Prophet, include the Qur’an, a divine revelation of God’s words through the angel Gabriel to Muhammad himself around 610 and the hadiths, traditions and sayings of and about the Prophet. In 613 Muhammad first started to publicly preach and attracted early converts of mostly socially and economically weakened classes to whom this monotheistic message offered salvation from the falling order in Mecca. The sheer force of Muhammad’s inspiration and beauty of speech, as he was illiterate, seemed to persuade people as well as raise universal opposition. Muhammad and his followers shortly became a threat to the Quraysh clan whose pagan religions were challenged by his message, that there was one God only. Muhammad was still able to preach, protected by his uncle Abu Talib and his tribe the Banu Hashim and flourished as a leader of the community. The Quraysh declared Muhammad as a madman and discredited his preaching, boycotting his motions. When it became apparent that his word was no longer considered reliable and that he was not gaining more converts, Muhammad was in search of a political base that could shelter him and his followers from the attacks of ridicule and harassments. This base would act as a home for the community. The Prophet’s forceful and leading persona was attractive to solve Medina’s anarchic feuding. The year 622, after the pledge of al-‘Aqaba to defend Muhammad, is known as the most dramatic event in Muslim history and the first year in the Islamic calendar. This year marks the hijra, the migration and the entry  into a community of Muslims. Due to no existing leadership or effective rule in Medina and through the portrait of an â€Å"Arab Elite† most communities wanted to pertain to, as this included fiscal and job protection advantages, remaining pagans learned Arabic and soon converted to Islam. Jewish clans that rejected the Qur’an and Muhammad as a Messenger of God were either executed or forced to exile, their properties taken into claim. Not only had Muhammad, in 10 years, managed to attract a large amount of converts, but he had also created a base for his Brotherhood, called the umma. Here, the fellow Muslims shared the same beliefs and they were given clear structure by the five pillars of Islam. The Zakat, almsgivings, were a way for everybody to assume responsibility for their brothers within the community and support the less fortunate. In addition, Muhammad changed social norms by giving the patriarchal family a greater importance and rewarding women and children with more rights. Furthermore, he implemented rules for fair business transactions. Thus, Medina was an exemplary state, which prided itself with patriarchal values and a confederation for political and economic legislations. The Umma brotherhood integrated individuals, clans, cities, disparate peoples and ethnic groups into a community under a common law and political authority. Creating this Muslim community, consisting of the early followers muhajeruun and Medinan converts ansar, and a monotheist religion alongside Judaism and Christianity was a vital accomplishment, which marked Muhammad as a man of great influence and importance for the Arab Conquests. Having established a foundation for Islam, Muhammad proceeded with spreading Islam throughout Arabia. At the battle of Badr in 624, the Prophet’s army attacked an important Meccan caravan and claimed victory. The battle described as â€Å" a sign of divine favour† , earned Muhammad a renowned reputation around Arabia and marked an important defeat of Mecca since the hijra. This was succeeded by two more battles, Uhud in 625 and Khandaq in 627, which both had rather positive outcomes in extending his influence and eliminating further Jewish clans. Finally, at al-Hudaybiya, in 628, while Meccans intercepted Medinan pilgrims, a truce between Muhammad and the Quraysh was established enabling Muslims to pilgrim to the Ka’ba. This was  the first sign of recognition of defeat by the Meccans. Merely two years later, in 630, Muhammad gained complete rule over Mecca without resistance and managed to claim the Ka’ba as the holiest shrine of Islam. Through his divine revelations, his preachings and his persuading character, Muhammad was all around respected and worshiped as the Messenger of God. He made his â€Å"religious visions operate in the body of a whole society† enabling a complete social habitual change in Arabia. Through tactic moves such as the hijra, the building of the first Muslim confederation in Medina and the Islamization of larger parts of Arabia he laid out the first step for Islam. Needless to say that without his effective leadership, it seems unthinkable that the communities of Arabia would have been able to act in such unison. Muhammad did not only perform as a religious messenger but also as a political leader, unifying the tribes and clans under one belief and a set of rules. He formed such a powerful bond between the umma that even after his death in 632, the Muslim Caliphates continued to spread Islam and conquered virtually the entire Middle East, parts of southern Spain, India and Northern Africa. Muhammad’s enormous influence in the success of the Arab Conquests and as the Messenger of God in the rise of Islam is indisputable. Bibliography 1.A History of Islamic Societies – Ira M. Lapidus 1988 2.A History of the Arab Peoples – Albert Hourani 1991 3.The Arab Conquests – Kennedy 4.What do we know about Muhammad – Patricia Crone 10 June 2008 5.Muhammad and Jenghiz Khan – Khazanov 1993

Behavioral Genetics

Multiple situations and conditions can impair or influence human behavior in individuals. My hypothesis was genetics has the strongest influence on human behavior because of the inability to have control over heredity. Without control, how can one improve or change their behavior? Mental disorders can be inherited through genetics. Examples of genetically acquired mental disorders are schizophrenia and bipolar disorders. My personal experience with individuals with those particular types of mental disorders exhibit different behaviors that those without the disorder. The way one interacts with other and the perception of that individual by society can be influences by mental disorders . My hypothesis was slightly changed after reading the article â€Å"Behavioral Gentics† by Joseph McInerney . McInerney provided in depth research that alluded to the fact that genetics alone does not influence human behavior. He believes that unless every person is tested a definitive correlation between genetics and behaviors will not exist. (J. McInerney ‘Behavioral Genetics† 24Aug2011) In case studies, researchers only test a select few and this does not provide enough information to prove or disprove genetics behavioral influence. According to McInerney, there may be others factors that may be present in conjunction with genetics that may influence human behavior. Behaviors are â€Å"the response of an individual, group, or species to its environment† (Merriam Webster Dictionary). Genetics are â€Å"a branch of biology that deals wit h the heredity and variation of organisms† (MWD). Through definition; genetics is not a factor for behaviors. Genetics can be a factor, but does not necessarily have to be a controlling factor that influences human behavior. McInerney provided multiple sources of other studies that solidified his view. I made my hypothesis based on my personal experience of people with mental disorders that had a historyof mental illness in their family. I only had access to a minimal amount of people with this disorder and made an inference without proper investigation. After reading this research; I feel that my hypothesis was just an opinion that could be perceived as judgmental. I believe that the source was creditable site because it was a overnment website. I will not say that I agree or disagree with the information presented. The information was from one source. I would have to read every source that McInerney provided and research other sources that oppose McInerney findings. I learned that solely from reading someone else’s opinion that it affected and influenced my behavior. I am usually ve ry decisive when I formulate an opinion. Normally my opinion is never altered due to someone else’s input. I have learned that many people make inferences and consider themselves expertise without more information from other sources. Behavioral Genetics Heredity and the environment produce an individual difference in development. Behavioral genetics has an impact in development. Behavioral genetics according to Francis Galton is based on â€Å"a man's natural abilities that are derived by inheritance, under exactly the same limitations as are the form and physical features of the whole organic world. † The role of behavioral genetics is based on human behavior influenced by genetics and the environment.For instance, Galton focused on the study of inheritance of gifted and talented families, and found that intelligence might be genetic, yet he also found that it has a lot to do with environmental factors. Galton researched in behavioral genetics including studies of twins and adopted children to compare environmental factors and biological factors. While contemporary behavioral genetics being the largest branch of human behavioral genetics covers phenotypes such as alcoholism, bipolar disorders, and schizophrenia however, inve stigations have not yet found genes associated to these mental illnesses but are rather environmental.Behavioral genetics has implications in society that affects a massive amount of physical behaviors that includes homosexuality, aggression, and nurturing, and intelligence. For example, the amount of tolerance that a trait would fur goes for prisoners or homosexuals such as getting treatment or prevent the birth of individuals affected. The only known fact is that no gene determines behaviors.This was proved by a study published in 1999 of the â€Å"smart gene† this gene was practiced on mice by injecting what is known as the high gene, and the study came to a conclusion that the learning enhancement only lasted a few hours, and was only retain in short memory. Having a certain trait does not mean that the trait will develop instead it can only be taken as a chance that it might or may not. Behavioral genes is still quite a mystery but can not be elapsed because there are ma jor possibilities that traits may exist. Behavioral Genetics Multiple situations and conditions can impair or influence human behavior in individuals. My hypothesis was genetics has the strongest influence on human behavior because of the inability to have control over heredity. Without control, how can one improve or change their behavior? Mental disorders can be inherited through genetics. Examples of genetically acquired mental disorders are schizophrenia and bipolar disorders. My personal experience with individuals with those particular types of mental disorders exhibit different behaviors that those without the disorder. The way one interacts with other and the perception of that individual by society can be influences by mental disorders . My hypothesis was slightly changed after reading the article â€Å"Behavioral Gentics† by Joseph McInerney . McInerney provided in depth research that alluded to the fact that genetics alone does not influence human behavior. He believes that unless every person is tested a definitive correlation between genetics and behaviors will not exist. (J. McInerney ‘Behavioral Genetics† 24Aug2011) In case studies, researchers only test a select few and this does not provide enough information to prove or disprove genetics behavioral influence. According to McInerney, there may be others factors that may be present in conjunction with genetics that may influence human behavior. Behaviors are â€Å"the response of an individual, group, or species to its environment† (Merriam Webster Dictionary). Genetics are â€Å"a branch of biology that deals wit h the heredity and variation of organisms† (MWD). Through definition; genetics is not a factor for behaviors. Genetics can be a factor, but does not necessarily have to be a controlling factor that influences human behavior. McInerney provided multiple sources of other studies that solidified his view. I made my hypothesis based on my personal experience of people with mental disorders that had a historyof mental illness in their family. I only had access to a minimal amount of people with this disorder and made an inference without proper investigation. After reading this research; I feel that my hypothesis was just an opinion that could be perceived as judgmental. I believe that the source was creditable site because it was a overnment website. I will not say that I agree or disagree with the information presented. The information was from one source. I would have to read every source that McInerney provided and research other sources that oppose McInerney findings. I learned that solely from reading someone else’s opinion that it affected and influenced my behavior. I am usually ve ry decisive when I formulate an opinion. Normally my opinion is never altered due to someone else’s input. I have learned that many people make inferences and consider themselves expertise without more information from other sources.