Summary Essay Example | Topics and Well Written Essays - 1250 words - 4

Summary - Essay Example Below is the explanation of how the above factor could help curb the security problem. Crime Prevention through environmental design involves a combination of psychological and physical aspects of a security situation and then considering the two simultaneously. Security in areas say public zones, private or semi-private zones are best achieved by use of physical barriers like small fences or well-planned flower beds around them. These barriers along with some other symbolic barriers could also be used around sensitive data rooms to deter the entry of people into these rooms. The architectural designs have shown great efficiency in discouraging acts of crime in facilities. (Mlakar, 1999) Surveillance. Surveillance in any building or facility is very crucial as it help to monitoring people within it. The people may include the employees, visitors who, in this case, are strangers or even the security persons on the ground. Surveillance can assist to closely monitor individuals with a lot of secrecy and thus it’s recommended to install these devices at places where people cannot recognize them easily. This way, acts of crime will be identified easily as the individuals will be caught unawares. Monitoring becomes even most critical with increased number of employees. Monitoring cannot be accomplished in the darkness. Lighting, therefore, becomes another factor that goes hand in hand with surveillance. The brightness, intensity, and the number of lighting devices in and within a facility becomes of critical importance. Well-spaced, and glowing office lighting show good on cameras. Therefore, lighting offers the basis of any security situation in any given place. Outdoor barriers in a facility help to delay, obstruct, and or prevents cases of thefts and other negative security situation. The barriers include fences, perimeter barriers, and gates among other obstacles that prevent access to persons to some given areas. The

All in the Family Essay Example for Free

All in the Family Essay Throughout one’s life, things are going to grow and change, yet one thing will always remain the same, one’s family. This social unit, whether it be related by blood or the love that comes from a family will always remain strong. While taking a look at two narratives, we will discuss the lessons learned, family functions, extended family, and the impressions that are made upon the readers of these stories. Taking a look at these powerful narratives, we as readers see many lessons that are learned throughout these pieces of writing. Taking a look at the narrative, An Indian Story by Roger Jack, this non-nuclear family shows us the readers, the lesion of who can and could be considered family. This important lesson shows how although his Aunt Greta is not immediate family like his father would be; she becomes immediate in his time of need. â€Å"My home and academic life improved a lot after I had moved in with Aunt Greta† (Jack 53). This improvement of life for these characters shows how this social network made of defined characters were able to adapt and transform to the ever-changing needs and circumstances of its â€Å"family† members. Moving on to the much different narrative entitled, Looking for Work by Gary Soto were we take a look at a nuclear family that is much different. The life of a Mexican American boy who strives for nothing less than for his family to be â€Å"perfect† like he sees on TV. His longing for the, â€Å"Father looks on in his suit. The mother, decked out in earrings and a pearl necklace, cuts into her steak and blushes. Their conversation so politely clipped† (Soto 29). These constant strives to be perfect and rich consumed most of his time. Yet by the end of this narrative, he would finally learn the most important lesson of all, his family is who they are. Much like Gary Soto in his story, Looking for Work I learned the same exact lesson. Although my family may have been crazy and somewhat embarrassing they are who they are and there was nothing I could do about it. My family was always going to be there for me no matter what and I couldn’t love them more for that. Throughout these two narratives, everyone experienced the presence of family in some form or another and I have to say, I don’t know what I would do without mine. While reading these stories I found a few similarities between the families in the stories and my own family that really stood out to me. First, the importance of 3family in general. I cannot stress enough how important my family is to me; yet when I was a child, much like the boys in these stories, I did not realize it. Another similarity I shared with these stories was how close I was to my grandma like Roger Jack was to his Aunt Greta. This warmed my heart because I love my grandma and so many instances throughout that narrative reminded me of my grandma and I. Much like when Roger stated, â€Å"I walked to Aunt Greta’s and asked if I could move in with her since I had already spent so much time with her anyway† (Jack 53). Yet one way in which my family is different from the families in these narrative is that I was blessed to have a mom and a dad growing up and I could not be more thankful for that. Growing up is an important time in any child’s life. Whether it is like the boys in these narratives or anyone else; that is a time for you to grow and shape into an individual. I believe that the environment I grew up in was a good thing for me and it shaped my entire worldview. I grew up with great yet strict parents, a loving, caring, hard working mom and housewife, and a tough, hard working, funny father. Together they taught me to work for everything I have because later in life nothing was going to be handed to me. I was taught a great work ethic and good morals from the very beginning. I believe that because of those teachings by my great parents, I am the person I am today. Extended family most definitely differed between the two narratives yet the importance was there. As with my extended family, we are very close, especially with my mom’s mom Erna. I always grew up with her right across the street and I loved every minute of it! She was always there for me and I always had fun whenever I was with her. I remember her cooking for me and us gardening together. Although the dictionary considers grandparents extended family, I do not. My grandma was so close to my family, especially my mom and I that to me she is immediate family. The importance of extended family and family in general to me is practically my life. I would do anything for them just as they would for me. I am so grateful to have such a close immediate and an extended family in my life. Looking at both narratives, there was one that made a more powerful impression upon me as a reader. Looking for Work by Gary Soto really stood out to me for one reason, the lesson. I believe in the fact that your family is who they are and there is nothing that you can do about it besides accept them. I love how Gary realized at the end that his family was not going to be like the family on Father Knows Best and that was ok. I think that made such an impression on me because I was the same way when I was little, I hated when my parents would make jokes and be silly but as I was growing up I grew to love it. My family is who they are and I love them for it! I wouldn’t trade my family for anything in the world and by the end of the story Gary seemed to feel the same way. In the beginning, Gary would be so frustrated when his siblings would wear bathing suits to dinner, when he had specifically asked them to dress up. Yet towards the end of the story such change took over Gary. â€Å"That evening at dinner we all sat down in our bathing suits to eat our beans, laughing and chewing loudly† (Soto 29). This quote is a prime example of the change that underwent the main character and showed the point in which he accepted everyone at that table for who they were, family. Works Cited Jack, Roger. An Indian Story. Ed. Gary Colombo, Robert Cullen, and Bonnie Lisle. Rereading America Cultural Contexts for Critical Thinking and Writing. 8th ed. Boston: Bedford St. Martins, 2010. 52-61. Print. Soto, Gary. Looking for Work. Ed. Robert Cullen and Bonnie Lisle. Rereading America Cultural Contexts for Critical Thinking and Writing. Ed. Gary Colombo. 8th ed. Boston: Bedford St. Martins, 2010. 26-31. Print.

Drip Irrigation and Soil :: Agriculture Agricultural Essays

Drip Irrigation and Soil Introduction Irrigation has had a substantial effect on agricultural history, from its use by Egyptian and Iranian farmers over 2500 years ago through modern agriculture (Troth 1980). The most common irrigation techniques of today are furrow, flood, sprinkler and drip. Furrow and flood both flood the irrigated area, while sprinkler and drip are direct applicators. Drip irrigation is gaining popularity for its efficiency of irrigation. Drip Irrigation Drip, or trickle, irrigation is a process of selective water application. A number of emitters are placed either on or below ground level. Placement of emitters is numerous in order to directly apply water to the crop. A pressurized pipe system supplies the emitters with water which then wets the soil within the root zone. Frequently, fertilizers are also applied using this method. Water efficiency is one of the most important characteristics of this recently developed technique. 90% of applied water is available for crop use (Troth 1980). The constant presence of water in the soil has a positive effect for crops. (Bresler, 1977). Water efficiency also provides for a slower application of water to the soil. The application rate controls infiltration rate which allows for a more uniform wetting in the individual root zone. In furrow and flood irrigation, waterlogging and water fluctuation can cause evaporation losses, plant damage, and erosion (Singer, 1996). Selective application prevents such instances from occurring under drip irrigation. Effects on Soil Irrigation plays a significant role in soil structure. The effects could be either beneficial or harmful to the soil, while separately affecting its short term crop productivity. Long-term damage to the soil, however, will result in decline of soil productivity. Farming techniques which use earth-moving machines can appear effective for crop production, but will eventually damage the topsoil (McLaren, 1990). Erosion Any irrigation will decided role in the structure of a soil. The effects could be either beneficial or harmful to the soil, while separately affecting its short term crop productivity. Long-term damage to the soil, however, will result in decline of soil productivity, and regardless of the initial bountiful harvests crop yield will decrease. For example, farming techniques which use earth-moving machines can appear effective for crop production, but will eventually damage the topsoil which thereby decreases crop productivity (McLaren, 1990). Erosion is a substantial contributor to deterioration of soil quality. Flood and furrow irrigation use a high influx of water to immerse the crop area.

National Crime Survey

Would you answer honestly if participating in a national crime survey asking about your criminal behavior, including any drinking and drug use? Yes I would participate in the survey. I would be honest because I have nothing to hide and no reason to lie. But for some they don’t want people to know what crimes they have committed or they lie about the extent of the crimes. But I think it’s because they want to be seen in a â€Å"good light†. A good term for this is called â€Å"Social Desirability Bias† which means that you reply in a manner that is socially acceptable and desirable. [1] The main purpose of this study is to allow the participants to describe the crimes in their own words instead of implying from observing participants. [2] Honesty in these self-report studies help many different groups to better understand crime and criminal behavior. They use these reports to gather information to put them into statistics. The reports that are used are collected from the NIBRS (National Incident-Based Reporting System) and NCVS (National Crime Victimization Survey) and published by FBI in their yearly UCR ( Uniform Crime Report. ) In some forms of deviance self-report studies have been proven better than police reports (ex: minor offenses among adolescents. ) In a variety of social-psychological studies these reports have been proven very useful (ex: monitoring of subjective feelings or states is at issue) [3] Dishonesty in these repo

The Theory of Michelangelo’s Architecture

Michelangelo’s architecture was revolutionary to say the least when observed against the backdrop of the then accepted norms in architecture and arts in general. During his time, architects usually think of architecture and arts in universal terms as seeing the works per se as composed of mathematical numbers (measurements) or geometry. Artists of the Renaissance period expressed their arts in more commonly in abstract forms. Michelangelo, on the other hand, feels, sees, and would interact with his art as though it is an animated thing (p 38). Indeed, it is enlightening to approach a structural design through the lenses of such a genius as the Master. It is important to get enough acquaintance with the anatomy of the whole thing. For Michelangelo, the building is not just a building, but like the human body, it lives and breathes; therefore he could look at a structure and see every part of it as having its unique and special function – as nose, eyes, arms, and other parts of the body have their own special purposes for the proper functioning of the whole physique to the full benefit of the man. While the writers of medieval times would draw their ideas of architectural outline from the human anatomy, most of them do not conceive of the body as a life form. When drawing from the human body any architectural ideas, the assumed perception is that the body is a miniature of the universe with all its parts functioning in perfect harmony. This perfect synchronization though, according to the prevailing notions of the artists of those days, could not be achieved practically since – according to them – it was only an ideal and therefore could not be possibly realized in actuality. Hence, the use of numbers and measurements – in short, geometrical approach. For example, one can just look at the available models, such as those crafted by Francisco Di Giorgio (ideal church plan p. 39), and Cesariano (the Vitruvian Figure, 1521 p 40). The said models, as can be observed, are both replicas of the human body. These architectural designs were common in medieval period. Michelangelo’s attitude was somewhat off tangent when compared to his peers. Indeed, he was different and was very free in terms of his individuality, especially as it was applied to his works. Whereas his contemporaries have chosen to settle for the perfections of mathematical figures/measurements, Michelangelo argued for (as attested in his works) the â€Å"motions† and the â€Å"emotions. For Michelangelo, everything from the observer to the object – including the vast backdrop of the surroundings – are all interconnected, that when an artist sets himself to plan a building, he should consider the presumed interplay between the object (the architectural design of the building), its backdrop (the environment), and the observer. Remember, the structural design for Michelangelo was a dynamic thing which exerts its influence to the observers.

Hello Dali! Surrealism and Dadaism essays

Hello Dali! Surrealism and Dadaism essays The Dada/Surrealism movement is referred to as an anarchist movement against art, which at the time was considered another representation of bourgeois power. (Gombrich 593-594) The Menaced Assassin reflects two abiding preoccupations of the Surrealists," writes Gablik Magritte. (Gowing 884) (Gowing 885) (Anderson 1170-1172) You must begin to dream. (Gombrich 591) (Gowing 887) Dali's "paranoiac-critical method" gave his work a pseudo-Freudian twist, and his new work became much like the rest of Surrealist art, paintings of "private fetishes." (Gowing 887) Eventually Dali, along with Magritte and the other Dada artists, was excluded. In the end, in Breton's attempt to keep Surrealism out of the fascist, anarchist world and keep it in the world of the Freudian dream state was a failure. Breton actually moved Surrealism into the anarchist's world that Dada's Tzara had created. New York NY: Harper A History of Art. The Harper American Literature, Vol. 2. Dictionary of the Arts. english.upenn.edu/~jenglish/English104/tzara.html Dadaism by Tristan Tzara Surrealism moved the humanity out of the romantic and classical notions of life and creativity into a world of ongoing and escalating anarchy and devastation. Regardless of its enduring influence on art, Surrealism may never have occurred without the founders of the Dada movement. (Varisco) In accord with the Manifesto of Surrealism of 1924 written in collaboration with Andre Breton, companion poet and dramatist Tristan Tzara wrote in the Zurich Chronicle: "Let us destroy let us be good let us create a new force of gravity. NO equals YES. Dada means nothing . . . and I hate good sense." (Varisco 139(10)) This created the basis for artists Salvador Dali, Rene Magritte, Sherman Anderson, and every radical of the early 20th Century. Moreover, although t...

Policy changes in the USSR essays

Policy changes in the USSR essays The reasons for the change in Party policy are the result of unrest in the proletariat class, foreign security concerns, the desire to use terror as a form of control, and the desire for total power by the Soviet leaders. The leadership position may have changed from Lenin to Stalin, however, the underlying desire for total control and power remains constant. It is evident to record a change in the Communist rule from the initial Communist ideals of 1917, through the years of War communism, then to its transition in 1924 to the New Economic Policy (NEP), to 1928 with the introduction of Industrialisation, Modernisation and Collectivisation. Other changes to policy have been recorded in the areas of foreign relations and internal purges. All of these significant changes to party policy have been a direct result of the need to strengthen the economy, hold total support and achieve military control, or more simply, to achieve the aim of totalitarianism. Government soviet policy throughout the period of war communism had been predicated on the use of force and terror to gain political control and economic stability. Lenin's power base diminished from the increasing famine, the collapse of the economy and frequent mutinies, all which were directly attributable to war communism and the demoralizing effect it had on the people. As a result Lenin introduced the NEP which differed from the policy of War communism in that requisitioning was abolished, Kulaks were permitted to sell their surplus for a profit, and a cash economy was reintroduced. These steps essentially returned the country back to many of its capitalistic policies. As Lenin said, "In order to take two steps forward, we shall take one step back." This major deviance from the communist policy beforehand was a direct result of Lenin's need to enforce control over the deteriorating conditions brought about by war communism. R. Daniels explains that, "During the time of the NE P......

Ethos, Pathos, Logos, Kairos The Modes of Persuasion and How to Use Them

Ethos, Pathos, Logos, Kairos The Modes of Persuasion and How to Use Them SAT / ACT Prep Online Guides and Tips Ethos, pathos, logos, and kairos all stem from rhetoric- that is, speaking and writing effectively. You might find the concepts in courses on rhetoric, psychology, English, or in just about any other field! The concepts of ethos, pathos, logos, and kairos are also called the modes of persuasion, ethical strategies, or rhetorical appeals. They have a lot of different applications ranging from everyday interactions with others to big political speeches to effective advertising. Read on to learn about what the modes of persuasion are, how they’re used, and how to identify them! "Yes, Alexander, this will be on the test." What Are the Modes of Persuasion? As you might have guessed from the sound of the words, ethos, pathos, logos, and kairos go all the way back to ancient Greece. The concepts were introduced in Aristotle’s Rhetoric, a treatise on persuasion that approached rhetoric as an art, in the fourth century BCE. Rhetoric was primarily concerned with ethos, pathos, and logos, but kairos, or the idea of using your words at the right time, was also an important feature of Aristotle’s teachings. However, kairos was particularly interesting to the Sophists, a group of intellectuals who made their living teaching a variety of subjects. The Sophists stressed the importance of structuring rhetoric around the ideal time and place. Together, all four concepts have become the modes of persuasion, though we typically focus on ethos, pathos, and logos. If Einstein says it, it must be true. What Is Ethos? Though you may not have heard the term before, ‘ethos’ is a common concept. You can think of it as an appeal to authority or character- persuasive techniques using ethos will attempt to persuade you based on the speaker’s social standing or knowledge. The word ethos even comes from the Greek word for character. An ethos-based argument will include a statement that makes use of the speaker or writer’s position and knowledge. For example, hearing the phrase, â€Å"As a doctor, I believe,† before an argument about physical health is more likely to sway you than hearing, â€Å"As a second-grade teacher, I believe.† Likewise, celebrity endorsements can be incredibly effective in persuading people to do things. Many viewers aspire to be like their favorite celebrities, so when they appear in advertisements, they're more likely to buy whatever they're selling to be more like them. The same is true of social media influencers, whose partnerships with brands can have huge financial benefits for marketers. In addition to authority figures and celebrities, according to Aristotle, we’re more likely to trust people who we perceive as having good sense, good morals, and goodwill- in other words, we trust people who are rational, fair, and kind. You don’t have to be famous to use ethos effectively; you just need whoever you’re persuading to perceive you as rational, moral, and kind. Sad imagery is an example of pathos, which appeals to emotion. What Is Pathos? Pathos, which comes from the Greek word for suffering or experience, is rhetoric that appeals to emotion. The emotion appealed to can be a positive or negative one, but whatever it is, it should make people feel strongly as a means of getting them to agree or disagree. For example, imagine someone asks you to donate to a cause, such as saving rainforests. If they just ask you to donate, you may or may not want to, depending on your previous views. But if they take the time to tell you a story about how many animals go extinct because of deforestation, or even about how their fundraising efforts have improved conditions in the rainforests, you may be more likely to donate because you’re emotionally involved. But pathos isn’t just about creating emotion; it can also be about counteracting it. For example, imagine a teacher speaking to a group of angry children. The children are annoyed that they have to do schoolwork when they’d rather be outside. The teacher could admonish them for misbehaving, or, with rhetoric, he could change their minds. Suppose that, instead of punishing them, the teacher instead tries to inspire calmness in them by putting on some soothing music and speaking in a more hushed voice. He could also try reminding them that if they get to work, the time will pass quicker and they’ll be able to go outside to play. Aristotle outlines emotional dichotomies in Rhetoric. If an audience is experiencing one emotion and it’s necessary to your argument that they feel another, you can counterbalance the unwanted emotion with the desired one. The dichotomies, expanded upon after Aristotle, are: Anger/Calmness Friendship/Enmity Fear/Confidence Shame/Shamelessness Kindness/Unkindness Pity/Indignation Envy/Emulation Note that these can work in either direction; it’s not just about swaying an audience from a negative emotion to a positive one. However,changing an audience's emotion based on false or misleading informationis often seen as manipulation rather than persuasion. Getting into the hows and whys requires a dive into the ethics of rhetoric, but suffice to say that when you attempt to deceive an audience, that is manipulation. If you really want to get an audience fired up about something, you can inspire righteous anger, which may or may not be manipulation. If somebody is offended that you’ve asked them for something, you can try making them feel sorry for you by turning indignation into pity- that’s manipulation. Seems trustworthy, right? What Is Logos? Logos comes from a Greek word of multiple meanings, including â€Å"ground,† â€Å"speech,† and â€Å"reason.† In rhetoric, it specifically refers to having a sense of logic to your persuasion; logos-based rhetoric is founded in logic and reason rather than emotion, authority, or personality. A logic-based argument appeals to a person’s sense of reason- good logos-based rhetoric will persuade people because the argument is well-reasoned and based in fact. There are two common approaches to logos: deductive and inductive arguments. Deductive arguments build on statements to reach a conclusion- in effect, the conclusion is reached in reverse. A common method is to propose multiple true statements which are combined to reach a conclusion, such as the classic method of proving that Socrates is mortal. All men are mortal, and Socrates is a man, therefore Socrates must be mortal. That’s not really a case that needs to be argued, but we can apply the same framework to other arguments as well. For example, we need energy to live. Food gives the body energy. Therefore, we need food to live. All of this is based on things we can prove, and results in a conclusion that is true, not just theorized. Deductive reasoning works on the assumption that A = B, B = C, so therefore A = C. But this also supposes that all the information is true, which is not always the case. Sometimes the conclusions you reach with deductive reasoning can be valid, as in the reasoning makes sense, but the conclusion may not be necessarily true. If we return to the Socrates argument, we could propose that: All men eat apples. Socrates is a man. Therefore, Socrates must eat apples. The problem is that we can’t prove that all men eat apples- some do, some don’t. Some might eat an apple once but never again. But based on our arguments, the conclusion that Socrates must eat apples is valid. A strong deductive argument for logos-based reasoning will be composed of provable facts that can reach a provable conclusion. However, a valid but not entirely sound argument can also be effective- but be wary of shifting from persuasion to manipulation! Another approach to logos-based rhetoric is inductive reasoning, which, unlike deductive reasoning, results in a probable argument rather than a definite one. That doesn’t mean that it is less effective- many scientific concepts we accept as truth are inductive theories simply because we cannot travel back in time and prove them- but rather that inductive reasoning is based on eliminating the impossible and ending in an argument that is based in sound logic and fact, but that may not necessarily be provable. For example, all people with a cough have a cold. Kelly has a cough. Therefore, Kelly likely has a cold. Our conclusion is likely, but not absolute. It’s possible that Kelly doesn’t have a cold- not because she doesn't have a cough, but because there are other possible causes, such as having allergies or having just breathed in some dust. The conclusion that she has a cold is likely based on data, but not absolute. Another example would be that Kelly picks her nose. Kelly is a woman, therefore all women must pick their nose. Inductive reasoning is based on generalizations. The first example, in which Kelly likelyhas a cold, makes sense because it’s based on something provable- that a sampling of people who have a cough have colds- and followed up with a likely conclusion. In the second example, this is a less sensible conclusion because it’s based on extrapolation from a single reference point. If we reverse the claim and say that all women pick their noses, and Kelly is a woman, therefore Kelly must pick her nose, that would be more sound logic. Still not necessarily true- not all women pick their noses- but a more sound example of inductive reasoning. Inductive reasoning can still be incredibly effective in persuasion, provided that your information is well-reasoned. Inductive reasoning creates a hypothesis that can be tested; its conclusion is not necessarily true, but can be examined. As always, be wary of venturing into manipulation, which is more likely to be based on erroneous or misleading facts. Kairos is all about the right time and place. What Is Kairos? Kairos is the Greek word for the opportune moment, which is precisely what it means in rhetoric. According to this principle, the time in which an argument is deployed is as important as the argument itself. An argument at the wrong time or to the wrong audience will be wasted; to be effective, you must also consider when you are speaking and to whom. In effect, kairos means choosing the correct rhetorical device to match the audience and space in which you’re attempting to persuade. If you wanted to persuade people to go vegetarian, the middle of a hot dog-eating contest is probably not the right time. Likewise, you’re probably not going to persuade a room of data-driven scientists of something by appealing to pathos or ethos; logos is probably your best bet. In essence, kairos asks you to consider the context and atmosphere of the argument you’re making. How can you deploy your argument better considering time and space? Should you wait, or is time of the essence? As Aristotle famously said, â€Å"Anybody can become angry- that is easy, but to be angry with the right person and to the right degree and at the right time and for the right purpose, and in the right way- that is not within everybody's power and is not easy.† The goal of kairos is to achieve exactly that. Effective use of kairos strengthens your persuasion ability by considering how people are already feeling based on context. How can you influence or counteract that? Or maybe pathos isn’t the right approach- maybe cold hard facts, using logos, is more suited. Kairos works in conjunction with the other modes of persuasion to strengthen your argument, so as you’re putting a persuasive piece together, consider how and when it’ll be deployed! Do a little detective work to figure out which mode of persuasion you're seeing. How to Identify Ethos, Pathos, Logos, and Kairos Understanding how the modes of persuasion work can make you better at identifying and picking them out. Not only is a better understanding of them useful for composing your own arguments, but it’s also beneficial when seeing other people’s arguments. When you understand how ethos, pathos, logos, and kairos work, you’re less susceptible to them. Advertising is one of the places we see the modes of persuasion most often. Looking at each of these advertisements, you can see how they use each mode of persuasion to convince audiences to convince an audience of something. Ethos Using celebrities is a classic example of ethos, which uses authority or recognition to convince an audience of something. In this case, celebrities like Michelle Obama, Lin-Manuel Miranda, and Janelle Mone discuss the importance of voting. It doesn’t matter that they’re not politicians or political scientists; audiences find themappealing and genuine. When they speak of the importance of voting, audiences listen because they like what these figures have to say. If talented, famous people like this are taking the time to vote, it must be important! Historians or those well-versed in politics might make different arguments about why audiences should vote, but in this case, the goal is to inspire people. When we see people we admire doing things, we want to do them too; hence the reason that ethos works so well. Pathos ASPCA’s commercials are some of the most infamous examples of pathos in advertising. Sarah McLachlan’s â€Å"Angel† plays over footage of abused animals in shelters, encouraging viewers to donate money to support the organization. It’s not hard to understand why it works; both the song and the imagery are heartbreaking! You can’t help but feel sad when you see it, and that sadness, when followed up by a prompt to donate, encourages you to take immediate action.And these ads are effective- the campaign raised millions of dollars for ASPCA. By appealing to our emotions and making us feel sad, this advertisement encourages us to act. That’s a classic use of ethos- it influences our feelings through the one-two punch of sad music and imagery, encouraging us to perform the desired action. Logos In some cases, emotion and authority aren’t the right tactic. Logos often appears in tech advertisements, such as this one for the iPhone XS and XR. Notice how the advertisement focuses on product shots and technological terms. Most audiences won’t know what an A12 bionic neural engine is, but it sounds impressive. Likewise, that â€Å"12 MPf/1.8 wide-angle lens, with larger, deeper 1.4 micron pixels† is pretty meaningless to most people, but the numbers suggest that this phone is something special because it uses scientific-sounding language. It doesn’t matter whether audiences really understand what’s being said or not. What matters is that they feel confident that the ad is selling them something they need- in this case, impressive technological specifications that make this phone an improvement over others. Kairos Kairos should ideally factor into all uses of the modes of persuasion, but timeliness can also be a big selling point. In this Christmas-themed MMs advertisement, the company uses timely humor to forge a connection between the holidays and MMs. Because these commercials have been running for such a long time, there’s also a nostalgic attachment to them. Just as people look forward to new Budweiser advertisements during the Super Bowl, others look forward to seeing MMs or the Coca-Cola polar bear during the holidays. Though this commercial doesn’t go out of its way to tell you the benefits of MMs, it does forge a connection between MMs and Christmas, encouraging people to purchase them around the holidays. Enhance your persuasion by better understanding ethos, pathos, logos, and kairos. Examples of the Modes of Persuasion Now that you’ve had some exposure to how ethos, pathos, logos, and kairos function and what they can do, you can test your ability to recognize them using the images below! There are a few things to notice about this image: The anonymous figure The language The use of a statistic Can you figure out which mode of persuasion this represents? The fact that the figure is anonymous tells us it’s probably not ethos. While we might be influenced by a person who’s in shape, there’s not really an appeal here based on the person- they’re just an image to support the ad. â€Å"DOMINATE† is a pretty loaded word, suggesting that this may have elements of pathos. However, take a look at that statistic. Whether it’s true or not, a hard statistic like that suggests that this ad is using logos to appeal to viewers. You can draw out an argument from there- 75% of users lose weight within weeks. You’re a user. Therefore, you will likely lose weight within weeks. What do you notice about this image? The photo The way the text frames the woman’s body The name of the perfume The color choice What mode of persuasion is this? Again, we don’t know who the model is, and perfume isn’t going to make us look like her, so we can count ethos out. The ad seems pretty intent on making us look at certain things- the woman’s lips and chest in particular. What is it trying to make us feel? â€Å"FORBIDDEN FRUIT† has a connotation of sensuality. Red is a color commonly associated with passion. When you combine the photo, the framing, the perfume name, and the color, you get a strong sense of sex appeal from the advertisement. This makes it an example of pathos- the ad is trying to make us feel a certain way. If we buy this perfume, maybe we would feel attractive, too. How about this advertisement? A serious-looking photo Text promising â€Å"no more back pain† â€Å"Doctor recommended.† Seeing a doctor might make you tempted to think the answer is logos, but there’s no appeal to logic here. â€Å"No more back pain,† is a nice promise, but there’s no attempt to appeal to emotions, so it can’t be pathos. What’s important in this image is the combination of the doctor in the image and the line â€Å"doctor recommended.† This doctor might not be famous, but he does have authority, making this an example of ethos. Our confidence in this treatment grows because we trust that a doctor understands how to address back pain. What mode of persuasion is this?Think about: The framing The model The text She does look fashionable and the ad mentions stylists, so it’s possible that this is ethos. There are no statistics or arguments being made, so the answer probably isn’t logos. Pathos is possible, but despite having a heavily made-up model, this ad is far less about sex appeal than the previous one. But the text mentions a specific holiday- New Year’s- suggesting that this is kairos. Kairos can, and often should, be combined with all the modes of persuasion to be even more effective. In this case, the model’s appearance could suggest either ethos or pathos in addition to kairos. The message here is that you should act now, at the beginning of the year, to take advantage of the deal and to start the year off with a new style, much like the one the model is sporting. A crying child is almost certainly pathos. Key Tips for Identifying Ethos, Pathos, Logos, and Kairos Now that you know the difference between all the modes of persuasion, you’ll have a much easier time identifying them. If you run into trouble, you can always ask questions about what you’re seeing, hearing, or reading to understand what mode of persuasion it’s using. #1: Is It Related to a Specific Time? If the argument is based on a specific day or context, such as Valentine’s Day or appealing only to a select group of people, such as people with dogs, it’s more likely to be kairos. #2: Does It Involve a Celebrity or Authority Figure? Celebrities are often a dead giveaway that an argument is using ethos. But authority figures, such as doctors, dentists, or politicians, can also be used to appeal to ethos. Even regular, everyday people can work, particularly when combined with pathos, to appeal to you based on a mutual connection you have. #3: Does It Involve Statistics? Statistics are a huge clue that an argument is using logos. But logos can also just be a logical argument, such as that if plants need water, and it’s hard to remember to water them, you should buy an automatic plant waterer. It makes perfect sense, making you more likely to buy it, rather than changing your habits to remember to water your plants more frequently. #4: Does It Influence Your Emotions? If an argument tries to change your emotions, whether by making you sad, happy, angry, or something else entirely, it’s a good indicator that it’s using pathos. Sex appeal is one of the biggest examples of pathos in advertising, appearing everywhere from makeup ads to car commercials to hamburger advertisements. What’s Next? Need help understanding the historical context forThe Great Gatsby to perfect your kairos-based argument? You can always combine the modes of persuasion with literary devices to make your arguments even stronger! Learn how to say "good morning" in Japanese! Even if it's not a mode of persuasion, it's just good manners. Have friends who also need help with test prep? Share this article! Tweet Melissa Brinks About the Author Melissa Brinks graduated from the University of Washington in 2014 with a Bachelor's in English with a creative writing emphasis. She has spent several years tutoring K-12 students in many subjects, including in SAT prep, to help them prepare for their college education. Get Free Guides to Boost Your SAT/ACT Get FREE EXCLUSIVE insider tips on how to ACE THE SAT/ACT. 100% Privacy. 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One country in The Middle East (Egypt) Essay Example | Topics and Well Written Essays - 750 words

One country in The Middle East (Egypt) - Essay Example Besides, Oman and Saudi Arabia are the neighboring nations. Dresch (2000) makes clear that â€Å"The Yemen is encircled by sea form the west, south and east† (p.43). One can see that Yemen’s nearness to the African continent and as the exit point of the Middle East Asia are crucial in international relationships. The ethnic makeup of Yemen includes Arabs and tribal people like Zaydis and Al-Akhdams. In addition, Islam is the most important religion in Yemen. Within Islam, there are two religious groups in Yemen: Sunnis and Shiites. So, this can be regarded as the primary religious division in Yemen. Unlike other Arabian nations, Yemen is not a religious republic, but a unitary parliamentary republic (presidential republic). Earlier, internal conflict due to the division of Yemen into North and South blocs was a serious problem. But unification of both the blocs into the Republic of Yemen reduced the further scope of internal problems. In the present condition, the inter nal conflict related to the Yemeni uprising (2011–2012) is a burning issue. Besides, violation of human rights and corruption are other problems faced by Yemen. Unlike other nations in the Middle East, Yemen is an underdeveloped nation. Blashfield (2012) states that, â€Å"It is now the poorest country in the Arab world† (p.4). To be specific, lack of infrastructure development and the rapid depletion of the existing oil deposits are the major problems which affects the economic development of Yemen. The Yemenis are inspired by the Arab Spring and the same resulted in the dethroning of Ali Abdullah Saleh. One can see that the Yemeni uprising resulted in the initiative to re-draft the constitution of Yemen. As pointed out, Yemen is not rich in oil deposits. Besides, the oil deposits in Yemen are showing rapid decrease in production. On the other side, lack of infrastructure development is hindering the scope

New Progressive Party of Puerto Rico Assignment

New Progressive Party of Puerto Rico - Assignment Example Under the Foraker Law which was established on April 2, 1900, Puerto Rico became the first unincorporated territory of the United States to enjoy a free commerce and civil government relationship with the United States ( Barcelo, Carlos Romero â€Å"Puerto Rico USA: The Case for Statehood† ). As a responsible member of the New Progressive Party of Puerto Rico, I feel that it is my duty to help my countrymen make an informed decision about this particular cause based upon facts. Facts that have a direct relation and impact upon the citizens of Puerto Rico. To begin with, I would like to present you all with the fact of Puerto Rican life should we opt to continue without U.S. citizenship. I would like everyone to remember that at this current point in time, Puerto Rico is enjoying the liberties of being a part of the United States without actually losing our status as a commonwealth. Although the United States governs a majority or our nations activities and political decisions, they do so without infringing on our rights as residents and nationals of Puerto Rico. Although statehood has somehow always been on the table, it has not become a reality yet. Statehood is a permanent change from which our nation can never turn back. When we incorporate ourselves into America as a state, we become Americans who follow American law, pay American taxes, and follow American culture. Gone is the chance for secession and our commonwealth status shall be nothing but a part of the past of Puerto Rico (â€Å"Major Disadvantages of Statehood†). Currently, we enjoy the unique relationship that the United states has with Puerto Rico. We manage to have an independent set of governing rules and regulations even as we continue to have a noticeable American presence in our nation. As the legal minds explain it; International and constitutional law arbitrarily collide in the legal arrangement between the United States and Puerto Rico. As a matter of international law, it i s unclear whether this arrangement conforms to customary international treaties and obligations. As a matter of national law, it is unclear that the constitution permits an arrangement between Puerto Rico and the United States ---- short of separation (independence as a state) or integration (admission to the union as a state) -- that could conform to these international obligations (Lawson & Sloane â€Å"The Constitutionality of Decolonization by Associated Statehood: Puerto Rico's Legal Status Reconsidered†). Puerto Rican citizens somehow manage to carry a dual citizenship with the United States under this murky legal loophole which does not allow us to elect American officials if I elect to continue living in Puerto Rico. However, the minute I step onto U.S. soil, I become an American citizen with the right to help elect officials to the local, state, and national levels of political office. We are uniquely American in citizenship, and yet still un-American in governance, culture, and tradition. Without U.S. citizenship and recognition as a U.S. territory, Puerto Rico the economy of Puerto Rico will not manage to survive. My research has shown that as a territory, we do not pay U.S. taxes and yet offer investment opportunities to Americans in the mainland under a tax-free status. Our status as a commonwealth has not protected the country against foreign debt. Rather, we

Protein Quantitation Lab Report Example | Topics and Well Written Essays - 1250 words

Protein Quantitation - Lab Report Example The following is a report on an experiment conducted to determine protein concentration of unknown samples using this method. Bradford Protein Concentration Assay Accurate protein quantitation is paramount to all experiments that are related to proteins in a lot of research topics in molecular biology, developmental biology, cell biology, neuroscience, and biochemistry. Different techniques have been developed to quantitate proteins in the last century, both for the total protein content and a single protein. Total protein content quantitation methods include Bradford assays. Bradford assay, which was initially described by Dr. Marion Bradford in 1976, is one of the commonly used methods to determine protein concentration. This method relies on formation of a complex between proteins in solution and the Coomassie brilliant blue G-250 dye. This dye exists in four different ionic forms. The more anionic blue form binds to proteins and has an absorbance at 590 nm. Protein concentrations can be known by determining the amount of dye in the blue ionic form, and by measuring the absorbance of the solution at 595 nm using a spectrophotometer (Becker, Caldwell & Zachgo, 1996). This dye binds mostly to arginine, tryptophan, tyrosine, histidine, and phenylalanine residues of the protein Materials and Reagents Protein standard: 1mg/mL Albumin Bradford reagent Distilled water Test samples A, B and C (Unknown protein) One 96-well plate Procedure First, the albumin standard solutions were prepared as follows: Concentration Albumin Distilled Water 0% 0ul 100ul 25% 25ul 75ul 50% 50ul 50ul 75% 75ul 25ul 100% 100ul 0ul Then the Bradford reagents were diluted with 300 ul (Bradford): 1500ul (Distill Water) (1:5 ratio). In the first trial, 180ul of the diluted Bradford reagents was added into the 96 well plate. Then 0%, 25%, 50%, 75%, 100% and Sample A, B, C, each 5ul was added to each well hole which contained 180ul of diluted Bradford reagent. These were tested with spectrophotom eter and the results recorded. The experiment was repeated again the same way. In addition, Sample C was diluted with 3 different ratios as follows: 1:9 (Sample C: Distill Water) 1:99 (Sample C: Distill Water) 5:95 (Sample C: Distill Water) The results were recorded after the solutions were tested with a spectrophotometer. A standard curve of absorbance versus concentration protein was drawn. Results The results were recorded as follows: First Trial Results: 0% 25% 50% 75% 100% Sample A Sample B Sample C 0.092 0.145 0.161 0.169 0.162 0.095 0.161 0.763 Second Trial Results: 0% 25% 50% 75% 100% Sample A Sample B Sample C Sample C (1:9) Sample C (1:99) Sample C (5:95) 0.113 0.188 0.218 0.217 0.210 0.116 0.200 0.670 0.244 0.118 0.152 The responses of the standards were used to plot a standard curve. Absorbance values of unknown samples were then interpolated onto the plot for the standard curve to determine their concentrations as shown in the graph below. Discussion From the graph abov e, the optimum measurement wavelength for this assay is on sample C. Thus sample C has the highest protein concentration. Sample A has the same absorbance as 0% albumin and Sample B has the same absorbance as 50% albumin. It can therefore be concluded that sample A and Sample B have 0% and 50% protein concentra

Essay NO. U2 M2 Example | Topics and Well Written Essays - 1000 words

NO. U2 M2 - Essay Example This paper will examine the employability, retention, and recruitment of staff at Starbucks. Employability is a term that refers to the ability of a person to secure an employment position with a company. For a person to secure an employment position, that individual must have the right educational qualifications, experience, and skills. Therefore, it means that a person’s qualifications must match those required by a company for the organization to consider that person to be employable. Philips argues that for companies to determine the employability of prospective workers, they have to plan by first determining the objectives of their organizations. This is because workers who are to be selected must be capable of enabling the company to achieve its mission and objectives. The main objective of Starbucks is to provide its customers with an excellent experience while they are in the organization. This means that for a worker to be employable, that person must have the ability of serving customers in a friendly and efficient manner. Since the organization also deals with food stuffs, it means that employees must be capable of handling food efficiently, maintain a high degree of hygiene, and be knowledgeable about different brands of coffee, soft drinks, and other products that are sold in the company. The accumulation of these skills indicates that employable workers need also to have attained some education in food, catering, and customer care. It also means that prospective employees need to have acquired some experience in an environment that is similar to that of Starbucks. Employees at Starbucks need also to have certain personal skills that may be acquired naturally or in school. For example, these individuals must have the ability to communicate with all kinds of people successfully. Having the ability to communicate effectively enables workers at Starbucks to serve

Religious Differences in the Society Essay Example | Topics and Well Written Essays - 250 words

Religious Differences in the Society - Essay Example We believe in the holy sacrament and repentance through the Holy Fathers who have been anointed among the followers to devote their lives for God’s service on earth. The Fathers are not allowed to marry or live with their families. Catholic sisters also do not marry. Some are professionals who serve the society throughout their life time. Being Catholics makes us a unique group in the society where majority are Protestants. They do not believe in the Holy mother of Jesus and in some instances we are traumatized when some of them casually claim that we worship idols. This is especially based on the rosary that we use when praying. We understand quite well that we pray the same God with the Protestants but many are not convinced of the similarity. Apart from the general Protestant group, there is still further divergence between us and those among them who are Seventh Day Adventists. We are looked down as people with shortfalls as regards worship of God. They believe in salvatio n on earth while we believe in salvation at the end of life. They also question the credibility of celibacy among Catholic fathers and sisters, with many regarding it as disguise of evil actions.

Assignment Essay Example | Topics and Well Written Essays - 500 words - 80

Assignment - Essay Example The disease is also causes fever, and red skin-spots that later turn black, thus the name â€Å"Black Death†. The disease reached Europe through The Black Sea in October 1347 when 12 Genoese trade ships arrived at Messina’s Sicilian port. The Genoese ships’ passengers on board were already plague-infected. The strategic location of China as one of the world’s significant trading nations facilitated the spread of the Black Death into Europe and Western Asia. The Black Death rapidly spread in â€Å"Europe from Italy, France, Spain, Portugal, England, Germany, Scandinavia, Norway, Bergen, Iceland, to northwestern Russia.†3 The medieval society was tremendously influenced by the Black Death. To begin with, there was starvation in the villages because the laborers died. The men who were supposed to plough fields died. The lack of labor also affected the harvesting, and livestock farming. In the urban areas, the effects of the Black Death were directly proportional to the impacts in the rural areas. A number of people migrated from the urban areas to the rural areas because it was believed that the fleas causing the Black Death was common in the urban areas. The urban areas suffered lack of food because the primary suppliers of food, who were the surrounding villages, could not supply adequate food. The loss of labor through deaths led to the lords resorting to sheep farming, as opposed to earlier grain farming. There was also shortage of commodities like bread because of the decline in grain farming. The prices of food in the urban areas skyrocketed because of the inflation. The inflation resulted into workers demanding for better pay, leading to the 1381’s Peasants Revolt in Europe when the landlords were hesitant to heed to the peasants’ demands.4 There were huge disruptions in the medieval world because of the Black Death. The Black Death led to the establishment of Feudal law restricting the movement of peasants, unless authorized by

Religious Differences in the Society Essay Example | Topics and Well Written Essays - 250 words

Religious Differences in the Society - Essay Example We believe in the holy sacrament and repentance through the Holy Fathers who have been anointed among the followers to devote their lives for God’s service on earth. The Fathers are not allowed to marry or live with their families. Catholic sisters also do not marry. Some are professionals who serve the society throughout their life time. Being Catholics makes us a unique group in the society where majority are Protestants. They do not believe in the Holy mother of Jesus and in some instances we are traumatized when some of them casually claim that we worship idols. This is especially based on the rosary that we use when praying. We understand quite well that we pray the same God with the Protestants but many are not convinced of the similarity. Apart from the general Protestant group, there is still further divergence between us and those among them who are Seventh Day Adventists. We are looked down as people with shortfalls as regards worship of God. They believe in salvatio n on earth while we believe in salvation at the end of life. They also question the credibility of celibacy among Catholic fathers and sisters, with many regarding it as disguise of evil actions.

Do shops portray Christian Christmas festivity or perpetuate a Essay

Do shops portray Christian Christmas festivity or perpetuate a commercial tradition - Essay Example The messages are everywhere, creating a world that is transformed for a few months of every year. However, in looking around at the many ways in which the world does transform during this time of year, one can see that a fantasy world is created within the many delightful ways in which the decor in retail, residential, and businesses is changed to reflect imagery of everything from Father Christmas to snow fairies. The use of color becomes more extravagant, the explosion of glittering ornamentation becomes rich and vibrant with color combinations being bold and celebratory. Lights are twinkling everywhere one looks and the world becomes transformed into a winter fantasy in which no dream of interior or exterior decorating needs to be edited or toned down in order to be appropriate. One of the most wonderful aspects of this season is the many window displays that are seen in shops and department stores, some advertising their wares, where others are defined by an artistic sensibility that defies extravagance. Some types of window display advertising is intended to highlight consumer goods, while others are intended to draw people in and communicate a different sort of aesthetic through invention and creativity. The window displays that are available for view during the Christmas season are some of the most wonderful examples of interior landscaping that can be seen throughout the year Christmas and Culture To understand the way in which Christmas affects people, it is imperative to look at the event from an anthropological perspective. Most academic fields have opinions on the rituals that constitute the Christmas season. The field of psychology allows for researchers to make observations on behaviour in order to explain crucial elements of the relationships that people share with one another. The seasonal rituals create a language that can be opened up and interpreted for the ways in which we communicate emotions during that time of year. The spending habits du ring this time of year, however, is of most interest to anthropologists as they study the ways in which people paradoxically complain about the commercialism of Christmas while participating in the extravagances of the season. According to Highfield, in the United States Christmas purchases equal approximately one sixth of all retail business, while in the U.K. gift purchases equal approximately eight percent of the economy is devoted to producing items for Christmas gift giving. It has been determined that approximately four percent of the income in the U.K. is spent on Christmas (30). People spend their money during this time of year in order to reap the rewards of the hopes they have for their relationships with others. Whether those hopes are realized or not, those hopes are fueled and sustained through the advertising that suggests that certain responses will occur when spending habits are turned towards their products. This type of advertising promotes the agenda of retail env ironments so that the perpetuation of Christmas spending allows for economic benefit to the economy. The stimulus that is provided by Christmas spending is a good thing, an advantage that should not be held in a paradox of

Theme Parks Essay Example for Free

Theme Parks Essay Domestic an International Tourism Economy, 303 Mihai Bravu Street, bl 18 A, sc B, ap 54, sector3, Bucharest, Email: [emailprotected] com, Phone 0744. 671. 291 Strutzen Gina 14 Alexandru Ioan Cuza Street, Voluntari, Ilfov, Email: [emailprotected] com, Phone: 0723. 212. 300, Romanian American Univerity, Faculty of Domestic an International Tourism Economy Theme parks are star players in the tourism industry, and play a special and important role in generating tourism demand. Theme parks are the main motivators for tourism trips to many destinations and core elements of the tourism product. Domestic an International Tourism Economy, 303 Mihai Bravu Street, bl 18 A, sc B, ap 54, sector3, Bucharest, Email: [emailprotected] com, Phone 0744. 671. 291 Strutzen Gina 14 Alexandru Ioan Cuza Street, Voluntari, Ilfov, Email: [emailprotected] com, Phone: 0723. 212. 300, Romanian American Univerity, Faculty of Domestic an International Tourism Economy Theme parks are star players in the tourism industry, and play a special and important role in generating tourism demand. Theme parks are the main motivators for tourism trips to many destinations and core elements of the tourism product. Competition in the theme park market is growing also in terms of an increasing number of parks, but also relative to other uses of leisure. But in different areas, the theme park market in seems to be reaching its saturation point and the parks have to cater for visitors who are getting more and more experienced and demanding. Given these trends of growing theme park supply, environmental constraints and increasingly discriminating consumer demand, it can be concluded that theme parks, to survive in this competitive market, must optimize is, given an ever increasing number of parks and future trend of consumer behavior. Keywords: tourism, theme parks, development The theme park concept In general, theme parks can be defined as a subset of visitor attractions. Visitor attractions are described as permanent resources which are designed, controlled and managed for the enjoyment, amusement, entertainment, and education of the visiting public There are the main types of managed attractions for visitors: ancient monuments; historic buildings; parks and gardens; theme parks; wildlife attractions; museums; art galleries; industrial archeology sites; themed retail sites; amusement and leisure parks. Another definition of visitor attractions is regarded by specialists as â€Å"single units, individual sites or clearly defined small-scale geographical areas that are accessible and motivate large numbers of people to travel some distance from their home, usually in their leisure time, to visit them for a short, limited period of time†. Although this definition excludes uncontrollable and unmanageable phenomena the definition does imply that attractions are entities that are capable of being delimited and managed. The adepts of this definition consider four main types of attractions: features within the natural environment (beaches, caves, forests); man-made buildings, structures and sites that were designed for a purpose; other than attracting visitors (churches, archeological sites); man-made buildings, structures and sites that were designed to attract visitors and were purposely built to accommodate their needs, such as theme parks (theme parks, museums, waterfront developments); special events (sporting events, markets). These four types are distinguished by two aspects. Firstly, the first three types are generally permanent attractions, while the last category covers attractions that are temporary. Second, tourism is often seen as a threat to the first two types, and is generally perceived to be beneficial and an opportunity for the last two types. Managers of the first two types of attractions in general deal with problems caused by visitors, such as environmental damages and pollution, while managers of the other two types tend to aim to attract tourists, increase visitor numbers, and maximize economic input. The main features that distinguish theme parks from other kinds of visitor attractions are: †¢ a single pay-one-price admission; †¢ charge; †¢ the fact that they are mostly artificially created; †¢ the requirement of high capital investments. Theme parks attempt to create an atmosphere of another place and time, and usually emphasize one dominant theme around which architecture, landscape, rides, shows, food services, costumed personnel, retailing are 635 orchestrated. In this definition, the concept of themes is crucial to the operation of the parks, with rides, entertainment, and food all used to create several different environments. Examples of types of themes used in contemporary theme parks include history-periods, fairy tails, animals, water, marine and futurism. These themes are used to create and sustain a feeling of life involvement in a setting completely removed from daily experience. Most theme parks are isolated, self contained units. Furthermore, it needs to be noted that most theme parks are developed, targeted and managed as private sector companies, and are commercial enterprises. The world’s best known theme parks arguably are the Disney parks, such as Disneyland, Disneyworld and Euro Disney. The amusement parks, appeared previous the theme park concept, which were developed at the turn of this century and consisted of a mixture of entertainment, rides, games, and tests of skill provided at fairs, carnivals, circuses, and frequently they had an outdoor garden for drinking. Amusement parks were an important element of mass tourism in the pre-depression period. However, the World War II has strongly influenced the decline of the traditional amusement park. Many parks were forced to close down permanently, while others survived, on a reduced scale, into the 1950s or even beyond. Since the end of World War II the number and range of theme parks available to consumers has multiplied dramatically. The rise of car-ownership has increased mobility and allowed people to visit more isolated parks in their own countries that were previously inaccessible. Rising affluence has increased the amount of free time. Also, longer weekends and increased paid holidays have helped to stimulate the expansion in theme park visits. Furthermore, the growth of tourism in the past fifty years and the recognition of the economic benefits of tourism have led to the growth of purpose-built attractions, such as theme parks, specifically designed to attract tourists, and to encourage them to spend their money. Disney was the first to introduce a special and new style of parks around a number of themes or unifying ideas to sanitize the amusement park for the middle classes. The modern day techniques for reproducing landscape, buildings, and arte facts can create a reality in theme parks that has been previously the preserve of film and theatre. Through changes in transportation technology and social attitudes, downtown industrial and residential land has become redundant. For example, historic buildings are often inaccessible to the new scale of road, and historic buildings worthy of conservation are not always adaptable to new business practice. The current interest in urban space for leisure and the use of leisure as a generator for adaptation and renewal is significant. In marketing urban locations for new investment the quality of life is becoming identified with the quality of the leisure environment. During the 80’s and 90’s, theme parks began spreading around the world. While many developing nations are experiencing the entertainment of theme parks for the first time, the theme park growth slowed in the USA due to escalating costs and a lack of markets large enough to support a theme park. The development of theme parks over time has been different in every country, reflecting differences in a number of factors including: the level of economic development and the distribution of wealth; the transport system; the natural environment and built heritage; the national culture; the degree to which tourism is a matter of incoming foreign visitors rather than domestic demand. The tourism general environment of the theme parks The theme park and its total tourism environment need to be a place in which the entire array of physical features and services are provided for an assumed capacity of visitors. The tourism supply and demand market is the two sides that require close examination for theme park planning. Insight in market developments is necessary for taking a longer term perspective in theme park planning. The economic environment of theme parks The planning efforts of theme park are mostly directed towards improving the economy, because the economic impact of theme parks is generally positive including: increased direct and indirect employment, income and foreign exchange; improved transportation facilities and other infrastructure for tourism that residents also can 636 utilize; generation of government revenues for improvement of community facilities and services; the multiplier effect within the local and regional economy. Although improving the economy is an important goal, it will not be achieved unless planning for the economy is accompanied by three other goals, enhanced visitor satisfaction, protected resource assets, and integration with community social and economic life. For example, some theme parks use imported goods and services instead of taking advantage of locally available resources. Also, tourism can cause inflation of local prices of land, goods and services. The socio-cultural environment of theme parks The impact of theme park operations can bring both benefits and problems to the local society and its cultural patterns. A theme park in an area generates contact between residents and visitors. This can be problematic in areas where the traditional cultural pattern of the residents differs extremely from that of the visitors of a park. Also, when there is a substantial socioeconomic difference between the visitors and the residents this may cause a problem. For example, problems may include over crowding of facilities and transportation, over commercialization, misunderstandings and conflicts between residents and visitors because of differences in languages, customs, and value systems, and violation of local dress and behavior codes. Theme parks especially have peak attendance figures, and therefore the concentration of visitors in space and time is a major problem. On the other hand, tourism in an area may improve the living standards of people and help pay for improvements to community facilities and services if the economic benefits of tourism are well distributed. The psychically environment of theme parks Theme parks’ environmental impact is mostly negative and a cause for concern. As theme parks have been designed specifically to accommodate the modern visitor, the environmental impact of theme parks can include visual pollution like unattractive buildings and structures, and large unattractive car parks. The space occupation of parks is enormous and mostly involves destruction of parts of the natural environment. Other environmental problems are air and water pollution, noise, vehicular and pedestrian congestion, and land use incompatibility. Therefore, an essential element of theme park planning is determining the carrying capacities or use saturation levels of the area. The transportation of the theme parks Passenger transportation is a vital component of the theme park system. Theme parks have a relationship with transport systems in a number of ways: The transport networks make theme parks physically accessible to potential visitors and therefore are an important factor in determining the number of visitors a theme park is likely to attract. The e existence of major theme parks and attractions leads to the development of new public transport services to meet the demand of visitors. The transport is also important within destinations to make travel between theme parks and attractions and between attractions and services as easy as possible. The modes of transport can often be an attraction in themselves with passengers being encouraged to see using them as a type of special event. The novel methods of on-site transport are used to move visitors around the theme park in ways that will add to the enjoyment of their visit. The planning of inter modal transportation centers is needed for domestic local, as well as outside, visitor markets. The infrastructure of theme parks In addition to transportation facilities, other infrastructure elements include water supply, electric power, waste disposal, and telecommunications. These components are usually planned by the public sector. Even though private and independent decision making are valued highly by most enterprises in all tourism sectors, each will gain by better understanding the trends and plans by others. The public sector can plan for better highways, water supply, waste disposal, when private sector plans for attractions and services are known. Conversely, the private sector can plan and develop more effectively when public sector plans are known. Facilities offered by the theme parks Accommodation, hotels and other tourist facilities, provide services so that tourists can stay overnight during their travels. Other facilities necessary for tourism development include tour and travel operations, restaurants, retail 637 outlets, souvenir shops, financial facilities and services, tourist information offices, public safety facilities and services of police and fire protection. A theme park and its environment need to be planned in such a way that the entire array of physical features and services is provided for an assumed capacity of visitors. It is important in planning the services businesses to realize that they gain from clustering. Food services, lodging, and supplementary services must be grouped together and within reasonable time and distance reach for the visitor. The institutional environment The institutional elements need to be considered in planning the theme park environment. From national to local governing levels, statutory requirements may stimulate or hinder tourism development. For example, policies on infrastructure may favor one area over another. Also, the administrative laws and regulations can influence the amount and quality of tourism development in a particular area. Policies of the many departments and bureaus can greatly influence how human, physical and cultural resources are applied. The development of theme parks The theme park market worldwide has grown dramatically during the last decades. For example, in the USA (where most of the theme park trends originated), theme parks have more than 200 million paid attendees each year. This strong consumer demand has resulted in the development of many parks. These parks are not only growing rapidly in size and importance, but also are investing substantial amounts in new entertainment and facilities, and extending their services into relatively unexplored areas such as catering and accommodation.. Also, Asia is the theme park market for the new millennium. Even more, several Asian cities, like Bangkok, Singapore and Kuala Lumpur, want to become ‘tourism hubs’, and theme parks are central to these plans. Although in the Asian countries a shift from hopping centers to theme parks can be seen, the opposite can be observed as well indicating a growing role of retailing in existing theme parks. The relationship between merchandising and theme park visits clearly has potential for further growth, and the advantages of stimulating this demand are becoming increasingly recognized by theme park operators. They are racing to obtain more profits out of their rides, activities and exhibits by linking rides to merchandise and placing goods at spots where visitors are most likely to buy, and that is close to the key rides, activities and exhibits The objective is to give people a part of the park to take home and share with others. In Europe most theme parks were built in the last 25 years. First, theme parks were more a Northern Europe phenomenon, but recently, several regions and countries in Southern Europe have supported the growth of theme parks as an attractive option to increase economic input. Due to all these new parks built, the theme park market is saturating. Consequently, the competition in the European theme park market is growing. Not only in terms of the growing number of new other parks, but also due to other uses of leisure time and discretionary expenditure such as home-based entertainment systems. Managers of large theme parks are concerned about the scale of the investments required to add new exciting rides, activities and exhibits to their product. Especially, because a golden rule is that a theme park every year has to expand their park with a new attraction, to attract the required level of visitors European theme parks invest in average twenty percent of their turnover on new or better rides, activities and exhibits. Theme parks challenges The first challenge for theme parks managers is to integrate the elements in the park itself with all the elements defining the theme park environment in the theme park development plan. For example, theme parks cannot function without transportation possibilities to bring the visitor to the park, or food supply or accommodation to support the visitor’s stay. Planning a theme park requires significant public private cooperation. More and more public governments turn to the private sector for the provision of services and the production of new products However, in order for such processes to run smoothly in theme parks, greater understanding of the roles of both sectors is needed. All private sector players on the supply side of the theme park environment such as, attractions, services, transportation, etc., depend greatly on investment, planning and management policies of government. Conversely, governments depend on the private sector for many tourism activities and responsibilities. Therefore, cooperation between the public and private sector is essential. 638 Another characteristic of theme parks is that their demand is highly seasonal. For theme park planners seasonality effects mean that they need to plan the facilities in such a way that whatever season or number of visitors in the park, the visitor experiences in the park are optimal. Also, when demand for rides, activities and facilities fluctuates during the day this can cause problems for the park, such as congestion and time specific peaks at the rides, activities and facilities. For theme park managers, capacity planning and routing is therefore an important task to deal with these problems. For example, to optimize the visitor streams in the park and to minimize waiting times at the activities. Another characteristic is the fact that theme parks face high fixed costs and low variable costs. This means that the costs per visitor in the low season, when there are only few visitors in the park, are much higher than in the high season, especially if the quality of the visitor experience has to be maintained. Furthermore, each year parks require high investments to add new exciting attractions to their product to attract the required level of visitors At the demand side, theme park planners may rely on marketers to actively try and manipulate tourist demand, by price differentiation across seasons, special rates for early bookings and bundling of services and visits over time or with other tourist facilities in the region. Similar to other tourist attractions, theme parks first and foremost provide enjoyment to their customers. This implies that theme park managers face especially strong demands from customers for new and exciting innovations in their services. Special strategies need to be devised to deal with tourist variety seeking. Also typically a diverse number of services within a park is required to promote repeat visits and to cater for different members of visitors groups as seniors and children) and for different segments in the tourist population at large. This has important implications for theme park planning in terms of location and type of activities that should be introduced and supported. Detailed consumer information often is essential to meet these consumers’ requirements. The costumers requirements place special demands on theme park planners in terms of: meeting environmental standards imposed through (inter)national regulations and local communities, by increasing demands in terms of landscaping and design, and financial responsibilities in terms of managing large areas of land which need to be bought, leased or rented depending on the organization’s financial management strategy. Another challenge facing theme park planner is that planning a park requires special skills in terms of combining creative and commercial abilities. Theme park design is crucial in determining the success of a park. In terms of design, several different levels can be distinguished. First, rides, activities and exhibits have to be designed attractively and effectively both in terms of initial appeal and usage. Second, landscaping and urban designs are required to integrate the different single facilities into a whole based on the selected theme for the park. And finally, activities and services need to be arranged that can support and increase consumer experiences of the physical elements in the park. There also are some more general features of the theme park product that are shared with other services and that are a challenge to theme park planning. Meeting consumer demand must be done however without compromising environmental and socio-cultural objectives. Because the theme product is consumed and produced at the same time, the service must be right the first time. Therefore, adequate theme park planning is highly critical for optimizing the delivery of the theme park product to the consumer. The final challenges facing theme park planners are created by the theme park market. There is a growing competition in the theme park market, with an ever increasing number of parks and many parks expanding their activities. Even more so, the tourist demand market is facing demographic changes in the form of agreeing population, economic changes that lead to tighter family time budgets because of an increasing number of double earner households, and the introduction of new technologies such as multimedia entertainment that compete directly with the traditional theme park market. Knowledge of potential market origins, and interests, habits and other travel characteristics of the population is a necessary but not sufficient condition to plan the several components of the supply side. It is important for the parks to know how consumers think, and what makes them visit or not visit attractions, and when they want to visit a park. Also, for theme park planners, an estimate of peak visitor volume is essential to the planning of every feature of the theme park, parking, attractions, exhibits, toilet facilities, tour guidance, food services and souvenir sales. 639 It can be concluded that the challenges theme park planners face ask for planning methods that can integrate the different components in the planning processes within and across various levels of planning. References : 1. 2. 3. 4. 5. 6. 7. Clave, Clark, Global theme park industry, Cab International, 2007; Goelder, Ch. , Tourism – principles, practices, philosophies 8th ed. , Edit. John Wiley Sons, SUA, 2000; Wright, Godwin, The Imagineering Field Guide to Magic Kingdom Park at Walt Disney World Disney Press, 2005; www. themeparkinsider. com www. amusamentparks. com.

Examining Family Business Corporate Governance

Examining Family Business Corporate Governance This dissertation sets out a study of the family businesss corporate governance, addressing the relationship between the owners and the management. Family businesses constitute a wide spectrum of enterprises, from small family owned and managed companies to a large internationally operating family controlled corporations. There are several definitions illustrates the family owned businesses, however the majority agree that Nebauer Lank definition illustrate the family business in a simple way and puts it as A firm can be regarded as a family business if a given family holds the voting control of the firm (Nebauer Lank, 1998). This dissertation argues that, given the duality of the economic and non-economic goals family firms pursue and the complexity of the stakeholders structure, family firms need governance structure that matches the complexity of their constitutes stakeholders. According to that a better research and empirical understanding as how family firms are governed is needed. In this study the focus will be on assessing the level of understanding of the corporate governance concept overall and the codes provided by the Capital Market Authority (CMA), the Capital Market Authority in Oman focusing on strengthen the family owned business by incentives them to go public. The CMA is just recently in the process to create a corporate governance to help the Family business to be prepared to do so. In this study, the focus will be to create an understating and help to create a better code to help the family business sustain in the future. On the other hand there will be an evaluation of the agency theo ry and how the family owners acceptance of this model. Furthermore a research by McKinsey quarterly shows that 95 per cent fails to succeed the generation due to the lacking of succession planning and roles defining, therefore the dissertation will be evaluating the practice and preparation if any on how the existing owner prepare companys succession planning rules and codes to handover their responsibilities to their successors. In this study the focus will be on the family businesses in Sultanate of Oman, a country in the Arabian Gulf with a fledgling capital market. Oman has made significant efforts to improves the level of corporate governance, particularly in the listed companies and now the capital market would like to expand its corporate governance codes to the family owned businesses to strengthen the chances of the sustainability of its growth. Aims And Objective This dissertation will focus on the unique corporate governance challenges that any family business faces and propose structures and practices that can mitigate these challenges and ensure the viability of the business. The detailed objectives that guide the dissertation process are: To review and analyze relevant theoretical, and other, streams of literature that focus on corporate governance and family business Analyzing the practice of the existing code of corporate governance that applied by the CMA and if it fit to be implemented in the family business companies. Asses the ownership structure and polices in the companies and testing the theory of the ownership and control separation. Asses the long term planning by the company owners and how the successor is been appointed. To assess the significance, reliability, and validity of the results; to discuss the theoretical, empirical, and practical implications of the findings; to assess the limitations The impact of corporate governance in family businesses performance. Scope of the dissertation The present study addresses the governance of family firms, focusing on the nature of various governance mechanisms and how they affect firm performance. Family businesses provide a fruitful research context to study corporate governance due to lack of governance research in the area and the distinctive characteristics of family firms. The family business context, especially, enables the study of how aspects of formal and social control vary according to characteristics of ownership structure. Research Approaches and method The methods to gather the required data will be a qualitative, where the participations will be selected based on their history and age of the company in practice. The research will be analyzing their policies and corporate governance practice. Interviews will be placed with the owners and senior managers of the companies to get all the data required for the findings and results. Structure of the dissertation Chapter 1: Introduction This chapter included the background of the study, the aim, purpose of the study, research questions and limitation of the study and it will present the structural framework of the study. Chapter 2: Literature Review This chapter will review the historical perspective, theories and related studies of corporate governance, family business and related theories to corporate governance. This chapter will include the secondary data which will be used in discussing the findings. Chapter 3: Methodology Chapter describes the methodology and procedures that were used to carry out this study. Furthermore, this chapter will review the population and participants of the study, instruments and data collection procedures. Chapter 4: Results and Findings This chapter will present the data and findings related to the research questions Chapter 5: Data Analysis and Discussion This chapter presents the data analysis and the discussion of the finding. Chapter 6: Conclusion In this chapter, the researcher will present a summary of the study and the findings, conclusion and recommendation. The structural framework of the dissertation is illustrated in Figure 1. Figure Literature Review Introduction A growing number of studies have been done on the family business ownership and management separation or combination in the past few years and what is the linkage between the performance and these two elements. In this chapter we will be presenting the theories and the studies that are related to it and selecting a frame work that will be the base of the evolution of the practice we examine in the family businesses. Family Owned Business Family enterprises or family owned businesses represent the oldest form of businesses in the world. The family owned businesses constitutes more than 70 percent of all business in most of the third world countries and in some developed countries (IFC, 2009). In the IFC research Family Businesses Corporate Handbook shows that family owned businesses are the higher contributor in any country growth in terms of economic development and employment. In Spain, for example, about 75 percent of the businesses are family-owned and contribute to 65 percent of the countrys GNP on average. Correspondingly, family businesses contribute to about 60 percent of the cumulative GNP in Latin America (IFC, 2009). in addition to, accordingly to recent researches that 95% percent of employment in the Middle East and especially in the Arabian Gulf Peninsula is in the family owned businesses. There are several definitions that explains the family business corporations, the IFC define it as a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants, in another words is A business actively owned and/or managed by more than one member of the same family. There are two systems that control the family businesses; which are the family system, and the management system, the two system overlap due to the dual roles that any family member take, like a family member may be a manger or an employee in the business and here where the conflict arise. The family system is based on emotional, love and care. The family system is based on the relationship in the family and they take most of these values to the business. Where in the business system is the professional values are the edge of the decision. (Managment Resources, 2010) To define a family business need to understand the environment from one to another, here are list of family business definitions that made by researcher past the year that cover the family business from different view but reserving the concept. Table Family business Definitions A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family. (Donnelley, [1964] 1988: 428). Controlling ownership rested in the hands of an individual or of the members of a single family. (Barnes Hershon, 1976: 106). Organizations where one or more extended family members influence the direction of the business through the exercise on kinship ties, management roles, or ownership rights. (Tagiuri Davis, [1982] 1996: 199). It is the interaction between the two sets of organization, family and business, that establishes the basic character of the family business and defines its uniqueness. (Davis, 1983: 47). What is usually meant by .family business.is either the occurrence or the anticipation that a younger family member has or will assume control of the business from an elder. (Churchill Hatten, 1987: 52). We define a family business as one that will be passed on for the family.s next generation to manage and control. (Ward, 1987: 252). A business in which the members of a family have legal control over ownership. (Lansberg et al., 1988:2). A family business is defined here as an organization whose major operating decisions and plans for leadership succession are influenced by family members serving in management or on the board. (Handler,1989b: 262). Firms in which one family holds the majority of the shares and controls management. (Donckels FrÃÆ' ¶hlich,1991: 149). A business where a single family owns the majority of stock and has total control. Family members also form part of the management and make the most important decisions concerning the business. (Gallo Sveen, 1991: 181). A business firm may be considered a family business to the extent that its ownership and management are concentrated within a family unit, and to the extent its members strive to achieve, maintain, and/or increase intraorganizational family-based relatedness. (Litz, 1995: 78). A business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families. (Sharma et al., 1997: 2). A family enterprise is a proprietorship, partnership, corporation or any form of business association where the voting control is in the hands of a given family. (Neubauer Lank, 1998: 8). Family businesses share some common characteristics, largely due to the interacting and overlapping domains of family, ownership and management (Tagiuri Davis, 1982). Family firms have a complex stakeholder structure that involves family members, top management, and a board of directors. Family members, who are often significant owners, usually play multiple roles in managing and governing the firm (Tagiuri Davis, 1982). This involvement promotes loyalty and also commitment to long-term value creation (Dyer Handler, 1994) and reduces problems that arise from separation of ownership and control, as experienced in large, public corporations (Jensen, 1989). Also, family businesses may enjoy a competitive advantage due, for example, to remaining entrepreneurial in character and having a strong sense of responsibility to society (Neubauer Lank, 1998), fast verbal and nonverbal communication, aided by a shared identity and common language of families (Gersick, Davis, McCollom Hampton Landsberg, 1997), family members. Business expertise gained during early childhood onward (Kets De Vries, 1996), and a strong organizational culture contributing to external adaptation and internal integration (Schein, 1983). However, the familys involvement in governing the firm may induce a focus on business and non-business goals, possibly leading to inefficiency (Schulze, Lubatkin, Dino Buchholtz, 2001). If the owner family is not regularly informed about the companys affairs, differing visions of the companys future may develop between management and the family. The resulting feuds between family factions may distract managements attention from value-creating activities and so reduce their commitment to strategic decisions. Owner-managers also may act opportunistically by satisfying their own needs at the expense of the companys performance and long-term survival. Entrenched owner-managers may not share their powers with others, especially not with the companys board. Furthermore the common characters of all family businesses are illustrated in the diagram below. Figure The individual represent the family members who are directly involved in daily bases with the operation, the family symbolizes the whole family where in some family businesses called the family counsel and the management dimension represents the family managers and non-family managers. McKinsey quarterly stated in the report keeping the family in business that only 5 percent will continue to create shareholders value after the third generation. Moreover; the IFC also mentioned in the family business hand book, while the third generation takes over; 95 percent of all family businesses will not survive the ownership around. These consequences might be a result to the lack of commitment and proper business education of handling the business demands. In addition, the survival of family firms is often challenged by dictatorial rule, resistance to change, lack of professionalism in management capabilities, confusion in family and business roles, rivalry and enlarged human emotions among family members, conflicts between interests of the family and the business, and a low rate of investment in business development (Donnelley, 1964; Gersick et al., 1997; Kets De Vries, 1993). All the definitions are focusing on the shareholders and their power in voting and management and these two points are actually the core strength and weaknesses of any family business. However there are other dimensions that a family business can be measured of its strength and weaknesses like: Culture Ownership and governance Succession planning Family involvement This dissertation will be reflected somehow in the culture dimension due to the strength of the factor here in the Arabian Gulf Countries and Oman. Different researcher came up with different definitions of the family business; however, the definitions imply six themes for clarifying the boundaries of the domain of family business: (1) ownership, (2) management, (3) generational transfer, (4) the familys intention to continue as a family business, (5) family goals, and (6) interaction between the family and business. These themes are similar to those found in the extant literature. For example, Handler (1989a) categorized family business definitions under four headings: ownership and management, interdependent subsystems, generational transfer, and multiple conditions. The extant literature on family business research has largely neglected the definition of the family itself. By modifying Winter.s, Fitzgerald, Heck, Haynes Danes (1998) definition of the family, the present study defines it as a kinship group of people related by blood or marriage or comparable relationship. This definition allows a multigenerational view of an extended family. Family Business in Oman According to the family firm institute (FFI) the around the 75% of Omans private companies are family owned, with their firms creating 70% of the country employment. There are 12 top families who are controlling around 75% of the contribution over all in Oman. The family owned business also control 90% of commercial activity according to Tharawat (Fortunes) Magazine. Oman is a part of the GCC Region where in the region is estimated that family businesses worth more than 1 trillion dollar, that is ready to be handled to the next generation. All family owned business share same characteristics as mentioned above, even the strengths and the weakness are similar to some extant in all family businesses. However, the family business can be categorized to two categories: Listed family businesses Non-listed family business The listed family businesses are set to fulfill the listed companies corporate governance code as per the CMA regulation, but the non-listed are not treated that way; whats so ever the size or the operations are. The CMA in Oman are concentrating nowadays to establish an attractive market and safe to all sizes of family businesses, the CMA is concentrating on converting the family closed family business to go public by Initial Public Offering(IPO) offering them a less strict rules and requirements to commence the IPO as the Head corporate governance Center declared. Furthermore there are different points that might affect the operation of any family businesses such as: family relations affect the assignment of the management family indirectly runs the company major family influence/dominance of the management (in terms of  strategic decisions) significant proportion of the enterprises senior management most important decision made by the family family control of the management of the enterprise at least 2 generations having had control over the enterprise These points might be strengthen the family business in the initial stages of the operations but there must be some kind of governance or policies on whom can make a decisions and how is not. Corporate Governance Corporate governance is a topic that has been a subject of significant debate since 2001 Enrons and other US companies crashed. Some analyst say lack of corporate governance was the main reason behind the crash (International Swaps and Derivatives Association, 2002). The international Swaps and Derivatives Association highlight that the failure was due to interests that extended certain managers at the expense of the shareholders. While the United States capital market where busy analyzing the reasons behind the crash of Enron and World Com, Sultanate of Oman has also experienced its share of corporate trouble affecting not only large companies such as Rice Mills SAOG and Oman National Investment Company Holding SOAG but also dozens of smaller companies, which have had to turn to the government for assistance (Dry, 2003). The year 2002 was the birth of the new corporate governance standards from the Capital Market Authority (CMA), but it was only covering the list companies in the Mu scat Security Market only. Since then the CMA focused on upgrading this standards and code and refine it to be in a worldwide acceptable standards and to include the best practice for the companies. The standards have been modernized since 2002 on the listed companies and the closed shared ones but nothing was mentioned on the family business side. In 2009 the CMA established the corporate governance center to help the companies implement the codes of corporate governance and to regulate the practice and monitor it, in addition to create a new standards to fit the family businesses practice. Till today the CMA and the Center did not establish a full concept on how they can produce a set of codes to be acceptable to the share holders of these businesses due to the lack of information on the family owned businesses in Oman. Theoretical framework related to Corporate Governance. The corporate governance model did not came from one framework or a certain theories, but I was built up on different practices and theories which results of different frameworks that today any economic system can customized to suit the needs to regulate the market. There are certain theories that been always associated with corporate governance practice which is set out the relation between the principle (shareholder) and the agent (management): The agency theory Stewardship Theory Stakeholder theory The agency Theory Agency theory having its roots in economic theory was exposited by Alchian and Demsetz (1972) and further developed by Jensen and Meckling (1976). Agency theory is defined as the relationship between the principals, such as shareholders and agents such as the company executives and managers. Agency theory argues that in the modern corporation, in which share ownership is widely held, managerial actions depart from those required to maximize shareholder returns (Berle and Means 1932; Pratt and Zeckhauser 1985). Since Jensen and Meckling (1976) proposed a theory of the firm (Agency Theory) based upon conflicts of interest between various contracting parties à ¢Ã¢â€š ¬Ã¢â‚¬Å" shareholders, company managers and debt holders à ¢Ã¢â€š ¬Ã¢â‚¬Å" a vast literature has been developed in explaining both aspects of these conflicts. Jensen and Meckling (1976) further specified the existence of agency costs which arise owing to the conflicts either between managers and shareholders (agency costs of equity) or between shareholders and debtholders (agency costs of debt). Financial markets capture these agency costs as a value loss to shareholders. The agency theory argues that an agency relationship exists when shareholders (principals) hire managers (agents) as the decision makers of the corporations. The agency problems arise because managers will not solely act to maximize the shareholders wealth; they may protect their own interests or seek the goal of maximizing companies growth instead of earnings while making decisions. Jensen and Meckling (1976) suggested that the inefficiency may be reduced as managerial incentives to take value maximizing decisions increased. Agency costs are arising from divergence of interests between shareholders and company managers. Agency costs are defined by Jensen and Meckling as the sum of monitoring costs, bonding costs and residual loss. (1) Monitoring Costs Monitoring costs are expenditures paid by the principal to measure, observe and control an agents behavior. The economic impact of asymmetric information also results in various corporate agency problems. Firm managers (insiders) know more about their firm than shareholders and debt financiers (outsiders). When outsiders are unable to judge over the firms performance, they tend to qualify a firms performance as moderate. A result of this asymmetric information is that shares of a firm with a great performance are undervalued and vice versa. More specifically, information asymmetries between shareholders or bondholders and corporate executive management creates the necessity of monitoring (costs) and complications for the structuring of financial contracts. They may include the costs of preparing reliable accounting information and audits, writing executive compensation contracts and even ultimately the cost of replacing managers. Denis, Denis, and Sarin (1997) contended that effective monitoring is restricted to certain groups or individuals. Such monitors must have the necessary expertise and incentives to fully monitor manager. In addition, such monitors must provide a credible threat to managements control of the company. (2) Bonding Costs To minimize monitoring costs, managers tend to set up the principles or structures and try to act in shareholders best interests. The costs of establishing and adhering to these systems are known as bonding costs. They may include the costs of additional information disclosures to shareholders, but management will obviously also have the benefit of preparing these themselves. Agents will stop incurring bonding costs when the marginal reduction in monitoring equals the marginal increase in bonding costs. As suggested by the agency theory, the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests. However, since managers cannot be made to do everything that shareholders would wish, bonding provides a means of making managers do some of the things that shareholders would like by writing a less than perfect contract. (3) Residual Loss Despite monitoring and bonding, the interest of managers and shareholders are still unlikely to be fully aligned. Therefore, there are still agency losses arising from conflicts of interest. These are known as residual loss, which represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems. There are some other types of agency costs as following: (4) Agency Costs of Debt There are three groups of participants in a firm, suppliers of equity, debt suppliers and firm managers. It is logical that they would try to achieve their goals with different measures. Suppliers of equity, or shareholders, are interested in high dividend ratios and high share prices. Debt suppliers, on the other hand, are interested in interest and debt repayments, whereas firm managers would be focused on their financial remuneration. These conflicts of interest give rise to opportunity costs (whereby best strategies are often not adopted) and real costs (e.g., inspection costs). These costs decrease the market value of a firm. Kim and Sorensen (1986) investigated the presence of agency costs and their relation to debt policies of corporations. It is found that firms with higher insiders (managers) ownership have greater debt ratios than firms with lower insider ownership, which may be explained by the agency costs of debt or the agency costs of equity. (5) Agency Costs of Free Cash Flow The free cash flow theory presumes that there are enormous conflicts of interest between shareholders and stakeholders. This implies that managers decisions do not always maximize the value of a firm (Jensen, 1986). Jensen (1986) also emphasized the continuous agency conflicts between top managers and shareholders. These conflicts are especially severe in firms with large free cash flows. A free cash flow is the balance of money a company is left with when all projects are financed. If top managers hold more cash than profitable investment opportunities, they may overspend money on organization inefficiencies or invest it in projects with net present value (NPV) less than zero. The logic has it that higher debt levels reduces free cash flows and consequently increases the value of the company. Examining Family Business Corporate Governance Examining Family Business Corporate Governance This dissertation sets out a study of the family businesss corporate governance, addressing the relationship between the owners and the management. Family businesses constitute a wide spectrum of enterprises, from small family owned and managed companies to a large internationally operating family controlled corporations. There are several definitions illustrates the family owned businesses, however the majority agree that Nebauer Lank definition illustrate the family business in a simple way and puts it as A firm can be regarded as a family business if a given family holds the voting control of the firm (Nebauer Lank, 1998). This dissertation argues that, given the duality of the economic and non-economic goals family firms pursue and the complexity of the stakeholders structure, family firms need governance structure that matches the complexity of their constitutes stakeholders. According to that a better research and empirical understanding as how family firms are governed is needed. In this study the focus will be on assessing the level of understanding of the corporate governance concept overall and the codes provided by the Capital Market Authority (CMA), the Capital Market Authority in Oman focusing on strengthen the family owned business by incentives them to go public. The CMA is just recently in the process to create a corporate governance to help the Family business to be prepared to do so. In this study, the focus will be to create an understating and help to create a better code to help the family business sustain in the future. On the other hand there will be an evaluation of the agency theo ry and how the family owners acceptance of this model. Furthermore a research by McKinsey quarterly shows that 95 per cent fails to succeed the generation due to the lacking of succession planning and roles defining, therefore the dissertation will be evaluating the practice and preparation if any on how the existing owner prepare companys succession planning rules and codes to handover their responsibilities to their successors. In this study the focus will be on the family businesses in Sultanate of Oman, a country in the Arabian Gulf with a fledgling capital market. Oman has made significant efforts to improves the level of corporate governance, particularly in the listed companies and now the capital market would like to expand its corporate governance codes to the family owned businesses to strengthen the chances of the sustainability of its growth. Aims And Objective This dissertation will focus on the unique corporate governance challenges that any family business faces and propose structures and practices that can mitigate these challenges and ensure the viability of the business. The detailed objectives that guide the dissertation process are: To review and analyze relevant theoretical, and other, streams of literature that focus on corporate governance and family business Analyzing the practice of the existing code of corporate governance that applied by the CMA and if it fit to be implemented in the family business companies. Asses the ownership structure and polices in the companies and testing the theory of the ownership and control separation. Asses the long term planning by the company owners and how the successor is been appointed. To assess the significance, reliability, and validity of the results; to discuss the theoretical, empirical, and practical implications of the findings; to assess the limitations The impact of corporate governance in family businesses performance. Scope of the dissertation The present study addresses the governance of family firms, focusing on the nature of various governance mechanisms and how they affect firm performance. Family businesses provide a fruitful research context to study corporate governance due to lack of governance research in the area and the distinctive characteristics of family firms. The family business context, especially, enables the study of how aspects of formal and social control vary according to characteristics of ownership structure. Research Approaches and method The methods to gather the required data will be a qualitative, where the participations will be selected based on their history and age of the company in practice. The research will be analyzing their policies and corporate governance practice. Interviews will be placed with the owners and senior managers of the companies to get all the data required for the findings and results. Structure of the dissertation Chapter 1: Introduction This chapter included the background of the study, the aim, purpose of the study, research questions and limitation of the study and it will present the structural framework of the study. Chapter 2: Literature Review This chapter will review the historical perspective, theories and related studies of corporate governance, family business and related theories to corporate governance. This chapter will include the secondary data which will be used in discussing the findings. Chapter 3: Methodology Chapter describes the methodology and procedures that were used to carry out this study. Furthermore, this chapter will review the population and participants of the study, instruments and data collection procedures. Chapter 4: Results and Findings This chapter will present the data and findings related to the research questions Chapter 5: Data Analysis and Discussion This chapter presents the data analysis and the discussion of the finding. Chapter 6: Conclusion In this chapter, the researcher will present a summary of the study and the findings, conclusion and recommendation. The structural framework of the dissertation is illustrated in Figure 1. Figure Literature Review Introduction A growing number of studies have been done on the family business ownership and management separation or combination in the past few years and what is the linkage between the performance and these two elements. In this chapter we will be presenting the theories and the studies that are related to it and selecting a frame work that will be the base of the evolution of the practice we examine in the family businesses. Family Owned Business Family enterprises or family owned businesses represent the oldest form of businesses in the world. The family owned businesses constitutes more than 70 percent of all business in most of the third world countries and in some developed countries (IFC, 2009). In the IFC research Family Businesses Corporate Handbook shows that family owned businesses are the higher contributor in any country growth in terms of economic development and employment. In Spain, for example, about 75 percent of the businesses are family-owned and contribute to 65 percent of the countrys GNP on average. Correspondingly, family businesses contribute to about 60 percent of the cumulative GNP in Latin America (IFC, 2009). in addition to, accordingly to recent researches that 95% percent of employment in the Middle East and especially in the Arabian Gulf Peninsula is in the family owned businesses. There are several definitions that explains the family business corporations, the IFC define it as a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants, in another words is A business actively owned and/or managed by more than one member of the same family. There are two systems that control the family businesses; which are the family system, and the management system, the two system overlap due to the dual roles that any family member take, like a family member may be a manger or an employee in the business and here where the conflict arise. The family system is based on emotional, love and care. The family system is based on the relationship in the family and they take most of these values to the business. Where in the business system is the professional values are the edge of the decision. (Managment Resources, 2010) To define a family business need to understand the environment from one to another, here are list of family business definitions that made by researcher past the year that cover the family business from different view but reserving the concept. Table Family business Definitions A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family. (Donnelley, [1964] 1988: 428). Controlling ownership rested in the hands of an individual or of the members of a single family. (Barnes Hershon, 1976: 106). Organizations where one or more extended family members influence the direction of the business through the exercise on kinship ties, management roles, or ownership rights. (Tagiuri Davis, [1982] 1996: 199). It is the interaction between the two sets of organization, family and business, that establishes the basic character of the family business and defines its uniqueness. (Davis, 1983: 47). What is usually meant by .family business.is either the occurrence or the anticipation that a younger family member has or will assume control of the business from an elder. (Churchill Hatten, 1987: 52). We define a family business as one that will be passed on for the family.s next generation to manage and control. (Ward, 1987: 252). A business in which the members of a family have legal control over ownership. (Lansberg et al., 1988:2). A family business is defined here as an organization whose major operating decisions and plans for leadership succession are influenced by family members serving in management or on the board. (Handler,1989b: 262). Firms in which one family holds the majority of the shares and controls management. (Donckels FrÃÆ' ¶hlich,1991: 149). A business where a single family owns the majority of stock and has total control. Family members also form part of the management and make the most important decisions concerning the business. (Gallo Sveen, 1991: 181). A business firm may be considered a family business to the extent that its ownership and management are concentrated within a family unit, and to the extent its members strive to achieve, maintain, and/or increase intraorganizational family-based relatedness. (Litz, 1995: 78). A business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families. (Sharma et al., 1997: 2). A family enterprise is a proprietorship, partnership, corporation or any form of business association where the voting control is in the hands of a given family. (Neubauer Lank, 1998: 8). Family businesses share some common characteristics, largely due to the interacting and overlapping domains of family, ownership and management (Tagiuri Davis, 1982). Family firms have a complex stakeholder structure that involves family members, top management, and a board of directors. Family members, who are often significant owners, usually play multiple roles in managing and governing the firm (Tagiuri Davis, 1982). This involvement promotes loyalty and also commitment to long-term value creation (Dyer Handler, 1994) and reduces problems that arise from separation of ownership and control, as experienced in large, public corporations (Jensen, 1989). Also, family businesses may enjoy a competitive advantage due, for example, to remaining entrepreneurial in character and having a strong sense of responsibility to society (Neubauer Lank, 1998), fast verbal and nonverbal communication, aided by a shared identity and common language of families (Gersick, Davis, McCollom Hampton Landsberg, 1997), family members. Business expertise gained during early childhood onward (Kets De Vries, 1996), and a strong organizational culture contributing to external adaptation and internal integration (Schein, 1983). However, the familys involvement in governing the firm may induce a focus on business and non-business goals, possibly leading to inefficiency (Schulze, Lubatkin, Dino Buchholtz, 2001). If the owner family is not regularly informed about the companys affairs, differing visions of the companys future may develop between management and the family. The resulting feuds between family factions may distract managements attention from value-creating activities and so reduce their commitment to strategic decisions. Owner-managers also may act opportunistically by satisfying their own needs at the expense of the companys performance and long-term survival. Entrenched owner-managers may not share their powers with others, especially not with the companys board. Furthermore the common characters of all family businesses are illustrated in the diagram below. Figure The individual represent the family members who are directly involved in daily bases with the operation, the family symbolizes the whole family where in some family businesses called the family counsel and the management dimension represents the family managers and non-family managers. McKinsey quarterly stated in the report keeping the family in business that only 5 percent will continue to create shareholders value after the third generation. Moreover; the IFC also mentioned in the family business hand book, while the third generation takes over; 95 percent of all family businesses will not survive the ownership around. These consequences might be a result to the lack of commitment and proper business education of handling the business demands. In addition, the survival of family firms is often challenged by dictatorial rule, resistance to change, lack of professionalism in management capabilities, confusion in family and business roles, rivalry and enlarged human emotions among family members, conflicts between interests of the family and the business, and a low rate of investment in business development (Donnelley, 1964; Gersick et al., 1997; Kets De Vries, 1993). All the definitions are focusing on the shareholders and their power in voting and management and these two points are actually the core strength and weaknesses of any family business. However there are other dimensions that a family business can be measured of its strength and weaknesses like: Culture Ownership and governance Succession planning Family involvement This dissertation will be reflected somehow in the culture dimension due to the strength of the factor here in the Arabian Gulf Countries and Oman. Different researcher came up with different definitions of the family business; however, the definitions imply six themes for clarifying the boundaries of the domain of family business: (1) ownership, (2) management, (3) generational transfer, (4) the familys intention to continue as a family business, (5) family goals, and (6) interaction between the family and business. These themes are similar to those found in the extant literature. For example, Handler (1989a) categorized family business definitions under four headings: ownership and management, interdependent subsystems, generational transfer, and multiple conditions. The extant literature on family business research has largely neglected the definition of the family itself. By modifying Winter.s, Fitzgerald, Heck, Haynes Danes (1998) definition of the family, the present study defines it as a kinship group of people related by blood or marriage or comparable relationship. This definition allows a multigenerational view of an extended family. Family Business in Oman According to the family firm institute (FFI) the around the 75% of Omans private companies are family owned, with their firms creating 70% of the country employment. There are 12 top families who are controlling around 75% of the contribution over all in Oman. The family owned business also control 90% of commercial activity according to Tharawat (Fortunes) Magazine. Oman is a part of the GCC Region where in the region is estimated that family businesses worth more than 1 trillion dollar, that is ready to be handled to the next generation. All family owned business share same characteristics as mentioned above, even the strengths and the weakness are similar to some extant in all family businesses. However, the family business can be categorized to two categories: Listed family businesses Non-listed family business The listed family businesses are set to fulfill the listed companies corporate governance code as per the CMA regulation, but the non-listed are not treated that way; whats so ever the size or the operations are. The CMA in Oman are concentrating nowadays to establish an attractive market and safe to all sizes of family businesses, the CMA is concentrating on converting the family closed family business to go public by Initial Public Offering(IPO) offering them a less strict rules and requirements to commence the IPO as the Head corporate governance Center declared. Furthermore there are different points that might affect the operation of any family businesses such as: family relations affect the assignment of the management family indirectly runs the company major family influence/dominance of the management (in terms of  strategic decisions) significant proportion of the enterprises senior management most important decision made by the family family control of the management of the enterprise at least 2 generations having had control over the enterprise These points might be strengthen the family business in the initial stages of the operations but there must be some kind of governance or policies on whom can make a decisions and how is not. Corporate Governance Corporate governance is a topic that has been a subject of significant debate since 2001 Enrons and other US companies crashed. Some analyst say lack of corporate governance was the main reason behind the crash (International Swaps and Derivatives Association, 2002). The international Swaps and Derivatives Association highlight that the failure was due to interests that extended certain managers at the expense of the shareholders. While the United States capital market where busy analyzing the reasons behind the crash of Enron and World Com, Sultanate of Oman has also experienced its share of corporate trouble affecting not only large companies such as Rice Mills SAOG and Oman National Investment Company Holding SOAG but also dozens of smaller companies, which have had to turn to the government for assistance (Dry, 2003). The year 2002 was the birth of the new corporate governance standards from the Capital Market Authority (CMA), but it was only covering the list companies in the Mu scat Security Market only. Since then the CMA focused on upgrading this standards and code and refine it to be in a worldwide acceptable standards and to include the best practice for the companies. The standards have been modernized since 2002 on the listed companies and the closed shared ones but nothing was mentioned on the family business side. In 2009 the CMA established the corporate governance center to help the companies implement the codes of corporate governance and to regulate the practice and monitor it, in addition to create a new standards to fit the family businesses practice. Till today the CMA and the Center did not establish a full concept on how they can produce a set of codes to be acceptable to the share holders of these businesses due to the lack of information on the family owned businesses in Oman. Theoretical framework related to Corporate Governance. The corporate governance model did not came from one framework or a certain theories, but I was built up on different practices and theories which results of different frameworks that today any economic system can customized to suit the needs to regulate the market. There are certain theories that been always associated with corporate governance practice which is set out the relation between the principle (shareholder) and the agent (management): The agency theory Stewardship Theory Stakeholder theory The agency Theory Agency theory having its roots in economic theory was exposited by Alchian and Demsetz (1972) and further developed by Jensen and Meckling (1976). Agency theory is defined as the relationship between the principals, such as shareholders and agents such as the company executives and managers. Agency theory argues that in the modern corporation, in which share ownership is widely held, managerial actions depart from those required to maximize shareholder returns (Berle and Means 1932; Pratt and Zeckhauser 1985). Since Jensen and Meckling (1976) proposed a theory of the firm (Agency Theory) based upon conflicts of interest between various contracting parties à ¢Ã¢â€š ¬Ã¢â‚¬Å" shareholders, company managers and debt holders à ¢Ã¢â€š ¬Ã¢â‚¬Å" a vast literature has been developed in explaining both aspects of these conflicts. Jensen and Meckling (1976) further specified the existence of agency costs which arise owing to the conflicts either between managers and shareholders (agency costs of equity) or between shareholders and debtholders (agency costs of debt). Financial markets capture these agency costs as a value loss to shareholders. The agency theory argues that an agency relationship exists when shareholders (principals) hire managers (agents) as the decision makers of the corporations. The agency problems arise because managers will not solely act to maximize the shareholders wealth; they may protect their own interests or seek the goal of maximizing companies growth instead of earnings while making decisions. Jensen and Meckling (1976) suggested that the inefficiency may be reduced as managerial incentives to take value maximizing decisions increased. Agency costs are arising from divergence of interests between shareholders and company managers. Agency costs are defined by Jensen and Meckling as the sum of monitoring costs, bonding costs and residual loss. (1) Monitoring Costs Monitoring costs are expenditures paid by the principal to measure, observe and control an agents behavior. The economic impact of asymmetric information also results in various corporate agency problems. Firm managers (insiders) know more about their firm than shareholders and debt financiers (outsiders). When outsiders are unable to judge over the firms performance, they tend to qualify a firms performance as moderate. A result of this asymmetric information is that shares of a firm with a great performance are undervalued and vice versa. More specifically, information asymmetries between shareholders or bondholders and corporate executive management creates the necessity of monitoring (costs) and complications for the structuring of financial contracts. They may include the costs of preparing reliable accounting information and audits, writing executive compensation contracts and even ultimately the cost of replacing managers. Denis, Denis, and Sarin (1997) contended that effective monitoring is restricted to certain groups or individuals. Such monitors must have the necessary expertise and incentives to fully monitor manager. In addition, such monitors must provide a credible threat to managements control of the company. (2) Bonding Costs To minimize monitoring costs, managers tend to set up the principles or structures and try to act in shareholders best interests. The costs of establishing and adhering to these systems are known as bonding costs. They may include the costs of additional information disclosures to shareholders, but management will obviously also have the benefit of preparing these themselves. Agents will stop incurring bonding costs when the marginal reduction in monitoring equals the marginal increase in bonding costs. As suggested by the agency theory, the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests. However, since managers cannot be made to do everything that shareholders would wish, bonding provides a means of making managers do some of the things that shareholders would like by writing a less than perfect contract. (3) Residual Loss Despite monitoring and bonding, the interest of managers and shareholders are still unlikely to be fully aligned. Therefore, there are still agency losses arising from conflicts of interest. These are known as residual loss, which represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems. There are some other types of agency costs as following: (4) Agency Costs of Debt There are three groups of participants in a firm, suppliers of equity, debt suppliers and firm managers. It is logical that they would try to achieve their goals with different measures. Suppliers of equity, or shareholders, are interested in high dividend ratios and high share prices. Debt suppliers, on the other hand, are interested in interest and debt repayments, whereas firm managers would be focused on their financial remuneration. These conflicts of interest give rise to opportunity costs (whereby best strategies are often not adopted) and real costs (e.g., inspection costs). These costs decrease the market value of a firm. Kim and Sorensen (1986) investigated the presence of agency costs and their relation to debt policies of corporations. It is found that firms with higher insiders (managers) ownership have greater debt ratios than firms with lower insider ownership, which may be explained by the agency costs of debt or the agency costs of equity. (5) Agency Costs of Free Cash Flow The free cash flow theory presumes that there are enormous conflicts of interest between shareholders and stakeholders. This implies that managers decisions do not always maximize the value of a firm (Jensen, 1986). Jensen (1986) also emphasized the continuous agency conflicts between top managers and shareholders. These conflicts are especially severe in firms with large free cash flows. A free cash flow is the balance of money a company is left with when all projects are financed. If top managers hold more cash than profitable investment opportunities, they may overspend money on organization inefficiencies or invest it in projects with net present value (NPV) less than zero. The logic has it that higher debt levels reduces free cash flows and consequently increases the value of the company.