Sunday, February 23, 2020

Rifa Essay Example | Topics and Well Written Essays - 2000 words

Rifa - Essay Example Key Words financial terms, jargons, financial methods and techniques Discussion a) Jonny 1) According to Turner’s 2004 report, pension crisis is caused by two major factors. These are the downturn in financial markets and unpredicted improvement in longevity (Whitaker 1997, pg. 16). Of course there are other factors as well, but these two elements have the biggest role to play in anybody’s descent into pension crisis. Bill Murray should therefore watch them closely if he wants to avoid being caught up in the cobweb that is pension crisis. 2) A money purchase scheme is a variation of defined contribution pension schemes (Hearn 2004, pg. 32). It is normally created by employers as a pool from which they can pay their retired employees income. Despite the employer sponsoring it, it is managed by a board of trustees (with the only exception being public sector schemes). The Trustees are in charge of paying death and retirement benefits. The amount of income payable depends on the amount of contributions made to the scheme by an employer or member, the performance of investment funds and the annuity rate at the time one is retiring. 3) Jonny is not too young to think about pension schemes. In fact, at the age of 30, he should be ready to start putting money in a pension scheme. The reason for this is that he has 30 years or less of gainful employment, after which he will retire. Contributing consistently for 30 years in any pension scheme (especially a money-purchase scheme) is enough to sustain him for possibly the rest of his life. Pension Crisis Pension is a contract made in a regular basis to a person with a fixed sum on the retirement from service (Rein & Schma?hl 2004, pg. 69). Pension crisis can be defined as the predictable difficulty found in the payment for the federal, corporate and the state pensions in Europe caused by the difference between resources and the pension obligations used in funding them. Causes of Pension Crisis Underfunded Pe nsion Plan Pension funds have to maintain a funding status or the assets value to liabilities in order to be able to afford the retirement benefits for their employees. An underfunded pension plan has fewer assets used to afford its liabilities. This is mainly caused by mismanagement as the pension schemes rely on the amount of cash being contributed from the sponsor which can be an employer (Rein & Schma?hl 2004, pg. 71). This management has a negative impact to the employees because there pension money has not been well handled. Shifting Demographics have also led to the lower ratio of workers per retiree. These are caused by the number of people retiring thereby causing employers to spend a lot of money on them compared to the profit gain of the company. The lower birth rates are also seen as a major factor as it leads to the decreasing labor force that is the number of workers. Money Purchase Scheme A money purchase scheme includes stakeholder and other occupational pension plan s among others (Rein & Schma?hl 2004, pg. 73). Its benefits depend on contributions to the pension fund and also the investment of the assets placed which can be positive or negative. When one retires the amount of money depending on the two factors is what will lead to the income one will get on retirement. Money

Friday, February 7, 2020

Assess To What Extent Large Chain Stores Are Positive For National Research Paper

Assess To What Extent Large Chain Stores Are Positive For National Growth - Research Paper Example The growth of chain stores is of considerable importance when it comes to the growth and size of an economy. There are changes which have emerged due to growth of these stores. This has led to the globalization of the markets and the economic integration due to the introduction of custom unions, free trade areas, political economic unions and social changes which result from the common monetary and fiscal policies (Greenfield, 2011). There are different types of chain stores. These include the consumables and the non consumables stores which are used to stock different types of commodities. These stores are of considerable importance to the nation. Greenfield (2011) asserts that to begin with they have led to the improvement of health sector in the economy. It has been due to this that we have changed the nature of conduct within the place of work. This has led to changes in the political behaviors of dictatorship in the government. This has been due to the misconduct by the wealthy merchants taking their business without considering the health of the workers and their care towards the society members. Secondly these stores have led to environmental conservation. This is due to the organized storage of stock thus avoiding pollution in both air and water. This has led to the conservation of the environment and health for the citizens. In addition, they have led to proper and well organized distribution of goods and services. This is due to the mass production by large companies in the world. Most of these companies are anticipating high returns, and they thus effectively and efficiently struggle to make high profits due to the increase in consumption behavior of the consumers (Howard, 2011). Distribution is a key factor to consider in the modern business. This has been due to the increased competitive nature of suppliers and distributors. Lebhar (4) asserts that consequently, advertising of products is also another factor to adopt due to the rising modern market ing strategies in the field of business. Chain store is managed by observing the degree in which to employ the salesmanship. Salesmanship is employing the convincing power in marketing of the product. However, the business has enhanced the availability of commodities to the customers. This has made it so easy for individuals to acquire goods because of the single roofing whereby one can select the desired product out of the multiple products in the store. The collaboration among many business enterprises has led to capital adequacy in investing especially to the green field investors. Capital is a significant factor to consider in doing a business since it enables an entrepreneur to acquire the factors of production which include land and labor. These are the main resources in production (Lebhar 8). The resources are endowed differently in different countries in the world, and thus chain stores are enjoying together the absolute advantage in production and avoid the comparative disa dvantage caused by factor distortion. This has led to franchise in the international market. In addition, the size of the economy must grow, and there is a significant impact on social living which results from varied opportunities in employment. This leads to eradication of poverty and place individuals in a better position to acquire goods and services (Lebhar 10). They thus