The Financial Crisis and The Great Depression Free Essay Example, 1000 words

The recovery that was seen in the periods after 1933 was rapid, but not rapid enough to completely reverse the effects of the depression. Another point of similarity is that both of them were preceded by asset price booms and bursts. There was a housing boom and burst in the 1920s and the Wall Street boom and crash around 1929. Similarly in 2006, there was a mortgage related housing boom and burst, leading to the 2008 crisis. Another similarity lied in the fact that both the crises led to massive unemployment resulting from layoffs. When the industrial production shrunk, the industries had no choice but to send a portion of the employee’s home. The differences between the two economic hardships the world faced were their causes and the times they occurred. It is often thought that the great depression was a result of the effects of the world war during which a lot of destructions happened, and some of the things that held the world economy together were affected severely. We also have generational differences in the sense that one took place in 1929 and another about 80 years later. We will write a custom essay sample on The Financial Crisis and The Great Depression or any topic specifically for you Only $17.96 $11.86/pageorder now There was deflation in the industrial output, meaning a decrease in the overall size of production in the manufacturing sector. The layoffs meant that the disposable income reduced. Much of the recovery started in the times around and after 1933. Some of the differences between the great depression and the current economic difficulties including the 2008 credit crunch lie in a number of things, which include a number of things. In 1929, there was a concentration of industrial activities in the European nations and the United States. In 2008, even the nations that hadn’t invested in industry by the 1920s had some amount of industrial production going on in them. The effects of the two economic periods are similar in the sense of shrunk industrial production (Cooper, 2008). The difference here is that whereas the 1929 situation only affected the then industrialized nations, sparing those that hadn’t invested in industry, the 2008 situation affected each and every country of the world, because virtually all the countries of the world have an industrialized economy, no matter how small. Another difference between 1929 and the 2008 situation was that the great depression of the late 1920s and the early 1930s was an old fashioned version of banking liquidity crisis that resulted from the failure by federal bank to serve as a lender of last resort. The 2008 crisis resulted from a bank solvency crisis.

Effect of Internal Controls on Financial Performance

CHAPTER ONE 1.0 INTRODUCTION 1.1 Background of the study Over the past decade, Africa and other developing regions have been in the midst of tremendous changes. Market liberalization and governmental decentralization policies have interfaced with globalization and urbanization trends to dramatically transform social, political, economic and cultural lives. In this context of rapid change, SME operations can no longer remain behind serving only to meet sustenance income for their owners. SMEs engagements have to become a dynamic and integral part of the market economy. The identification of factors that determine new venture performance such as survival, growth or profitability has been one of the†¦show more content†¦The dynamic role of small and medium enterprises (SMEs) in developing countries as engines through which the growth objectives of developing countries can be achieved has long been recognized. The growth of small scale businesses in Ghana so rapid, that it is now seen as a daily affair. Many Potential owners of SMEs move to areas where the feel they can succeed to set them up there. More so, many factors may contribute to the movement of people to settle at certain geographical areas. It is believed that the factors that influence migration include the need for peaceful and violent free environment, the need for fertile business locations, the desire for privacy, government policy and a host of others. Specifically, with reference to the above, the Medina municipality of the Greater Accra region has experienced a noticeable growth and increase in the number movements into the area and for that matter SMEs increase in the last few years. It is important to mention that some research studies have been conducted to determine the real impact of migrations on host societies. In line with the above, this study sorts to assess the nature of SMEs in Medina with respect to the involvement of men and women, the main sources funds for them, the main objectives and challenges faced by SMEs in Medina, reasons the explosion of SMEs in Medina and the scio-economic impacts of this growth of SMEs in Medina. 1.3 Objectives: 1.3.1 Main Objective TheShow MoreRelatedEffects Of Internal Audit Practices On Financial Performance Of Commercial Banks1689 Words   |  7 Pages EFFECTS OF INTERNAL AUDIT PRACTICES ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA (A CASE STUDY OF KENYA COMMERCIAL BANK) GIDALI MUHINDI FRANKLINE A Research Proposal in Partial Fulfillment for the Bachelor of Business Administration of the Technical University of Mombasa 2016 DECLARATION I declare that this research proposal is my original work and has not been presented for a degree award in any other university. Signature†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreThe Effect Of Professional Ethics788 Words   |  4 PagesThe Effect of Professional Ethics in U.S. Accounting Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. Ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamentalRead MoreThe Impact Of Internal Controls On Tertiary Institution s Financial Performance1510 Words   |  7 PagesThe different impacts that internal controls on tertiary institution’s Financial Performance: Background of the study Internal controls refer to different measures employed by organizations so as to ensure attainment of the entity’s objective, goals and missions. With the aim of reducing wastes, theft or the misuse of organization resources specifically funds, different policies and procedures are enforced on the transactions to ensure appropriate transactions management. These provide the necessaryRead MoreInternal Controls And The Audit Process1708 Words   |  7 PagesDuring the audit of the financial statements we will be assessing the internal controls in use as mandated by the Sarbanes-Oxley Act of 2002. The act was designed to enhance corporate responsibility as it relates to financial reporting issues. Section 404 covers the internal controls that have been setup by the company. Internal controls are designed to protect the assets of a business from misuse or loss. Internal controls also help the business to streamline processes so that goals can be achievedRead MoreA Framework F or Continuous Auditing1295 Words   |  6 PagesContinuous Auditing is a part of a company’s internal control and is not implemented to replace regular auditing. Continuous auditing primarily focuses on frequency of risk and the effectiveness of internal control. Thus, continuing auditing is used to improve auditing organization, efficiency, and add value to a company performance. â€Æ' Continuous auditing is an essential tool in reducing waste, inefficiencies, and improve reliable, relevant, timely financial evaluations. The current data analytic scriptsRead MoreThe Sarbanes Oxley Act ( Sox )1604 Words   |  7 PagesFraudulent financial reporting has gained substantial attention from the public after the scandals of many high profile companies in the 21st century. Periodic cases of financial statement fraud raise concerns about the credibility of financial reports and are as a result of problem in the capital markets, a dropping of shareholder value, and, the bankruptcy of the company. Thus, to respond to the public pressure over acts of corporate offense, the Sarbanes-Oxley Act (SOX) was enacted in 2002. SOXRead MoreSarbanes-Oxley Act Acc 403- Auditing1443 Words   |  6 PagesSARBANES-OXLEY ACT ACC 403- AUDITING PROFESSOR August 19, 2012 The Sarbanes-Oxley Act was placed into effect July 2002; the act introduced major changes to the regulation of corporate governance and financial practice. The Sarbanes-Oxley Act was named after Senator Paul Sarbanes and Representative Michael Oxley, who were the main architects that set a number of non-negotiable deadlines for compliance. The organization for Economic Cooperation and Development was one of the first non- governmentRead MoreBalance Scorecard As A Technique Used For Performance Strategies1480 Words   |  6 PagesBalance Scorecard as a Technique used in Performance Strategies 1.0 Introduction The balance scorecard refers to a component within a comprehensive management system that integrates strategy and operations (Kaplan, 2009, pp. 1265). The balanced scorecard has been a multi-dimensional performance measurement system (Kaplan and Norton, 1992), which over the years has upgraded versions with much interest not only in academic fields (Hoque, 2014); but also as a management tool (Rigby Bilodeau, 2013)Read MoreTutorial 4 Internal Auditing1732 Words   |  7 Pagesquestions: 1- What does the term internal control mean? The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as: * â€Å" a process, affected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories† * Effectiveness and efficiency of operations * Reliability of financial reporting * Compliance withRead MoreThe Balanced Scorecard And How It Is Used For A Competitive Advantage Within The Business Industry1229 Words   |  5 Pagesto key decisions. The Balanced Scorecard The balanced scorecard is a performance management tool that assists in the management of an organisation’s business strategy using traditional financial measurements combined with non-financial information (Candle 2008). Kaplan and Norton (1992), the creators of the concept, introduced the business scorecard as 4 main perspectives, customer, learning and growth, financial and internal business process. They breakdown the meaning behind each perspective is

Cons of Obamacare Free Essays

Patient Protection and Affordable Care Act The Patient Protection and Affordable Care Act of 2010 is the first major healthcare act passed since the 1967’s Medicare and Medicade act. Obamacare is the name given by critics, because of the power that is given to the federal government to regulate healthcare prices. The reason given that this act was passed is that it willl save billions of federal dollars each year. We will write a custom essay sample on Cons of Obamacare or any similar topic only for you Order Now Many people against the act believe it should be repealed ,and the reason for this is, because it gives away healthcare to people who don’t pay for it. The act also takes away from seniors who really need the medi,cade benefits, and also makes doctors increase how much people pay them. The Patient Protection and Affordable Care Act of 2010 is an extreme set of laws that give the federal government too much power over health care, lets government choose the price of health care, takes away health benefits from senior citizens, takes away more care from people who work for it truly deserve the care, and in addition it is already costing three times more than what it was expected to cost. The Patient Protection and Affordable Care Act is an act that generally lets everyone have health care, and is supposed to make health care cheaper. The idea of this plan is to reduce the cost of health care over a decade by 1. 2 trillion dollars making everyone get health care. Overall studies have shown that in the first decade it actually cost 3. 2 trillion dollars to insure everyone, and that is not good at all. There are many good parts of medicare like how it benfits small business, and it allows for parents to let their kids stay on their own insuramce plan until they are 26 which actually earns health insuracne companies for money in the long term. However the Obamacare will actually hurt the middle class, and more than likely increase health insurance cost for everyone. This wiill ultimately hurt our budget deficit recovery plan which is the whole reason the PPAC was initially made. Obamacare was a dishonest plan to begin with, and if Romney gets in office hopefully he will repeal the horrible act that is Obamacare. Many people think The Patient Protection and Affordable Care Act of 2010 is socialism. There are many reasons for this, one is that it lets the federal government mandate what the price of health care is which in effect can cause the prices of healthcare to go up dramatically within the next four years. This also makes everyone get health care even if that set family cant afford it which is a form of Socialism. If you refuse to get the new health care, like in the case of small businesses with over 50 employees they will drop existing businesses medicade plan that you have, and you wont have the extra care at all. In all technicallity there has been no limit in which the federal government can tax Americans for health care. In the long run that will put a bigger dent in Americas economy and our debt to China. Senior citizens across the country who cant afford regular health care prices use medicade to lower their price, and The Patient Protection and Affordable Care Act of 2010 is making it more difficult for seniors to recieve Medicade help practically taking all the relief given to senior citizens with obamacare. The effects on senior citizens will be catastrophic there will be a shortage of 95,000 doctors due to pay cuts. Which will make it to where less and less people can be seen by a doctor each day. Seniors, in fact, will have to pay at least ten percent more than their usual medicare plan due to tax cuts, and price increases. Another bad fact is that due to Obama’s irresponsible tax cuts that fifteen percent of medicare or medicaid plans will be cut from the system, directly affecting the amount of care that seniors will be able to recieve no matter what. One elderly woman from Massachusetts who is fighting parkinson’s says that she has already stopped recieving cheap care because doctors are already preparing for Obamacare in 2013. In 2010 president Barack Obama ensured us that in the first decade of his healthcare plan it will save us 1. 2 trillion dollars. However that was false, and The Patient Protection and Affordable Care Act of 2010 will cost three times more than what was originally projected. Republican senators have shown this estimate everytime they calculate the plan, and many say that Obama just plain out lied to Americans who had given him support. Also it will put Americans in an extra two trillion dollar deficit in which the total deficit will add up to 5 trillion dollars. The senate is already pushing to ammend the bill to where maybe we can correct his mistakes, but also save us money in the first three decades which was originally projected. Obama held a joint session in 2010 where he practically said this is the plan, and it will cost 900 billion dollars however its already made us spent three more times the usual amount for any health care plan in America. Many people who some say don’t deserve healthcare are getting healthcare while middle class families are giving more than ever to support these bums. Obamacare is practically ripping care out of the hands of people who work hard for care, yet supports the poor people who cant afford it. Now we must understand that there are special circumstances for people, but most people have the energy to get off the couch so they should be able to find a job. In most circumstances if they got laid off or whatever the other circumstances are, but it doesnt mean Obama should just give special care to these people because there to lazy to go out and work every day like normal Americans. The conclusion to my thoughts about The Patient Protection and Affordable Care Act of 2010 is simple. One, it lets the government choose the price of healthcare and medicade, and also is a form of socialism. Two, war veterans, and senior citizens who worked hard everyday for our country are steadily being taken from. Three, the act grants them the power to tax more from medicade. Next, The Patient Protection and Affordable Care Act of 2010 is starting to cost three times more than president Barack Obama originally projected it to cost. In conclusion the Patient Protection and Affordable Care Act of 2010 could’ve been a great act, but many others think it will be a economic disaster that sets off another depression. How to cite Cons of Obamacare, Papers