Outsourcing Plan Essay Example for Free

Outsourcing Plan Essay 1. Outsourcing has become a way to increase an organization’s flexibility to meet rapidly changing market conditions, focus on core competencies and develop competitive advantage. As a result, the need for SM has intensified and positioned Supply Managers as agents of strategic change critical to supply chain success. A. True 2. Outsourcing decreases an organization’s flexibility to meet rapidly changing market conditions, but it can usually reduce total costs in the long-term B. False 3. Early supply management involvement is an approach in supply management to bring the expertise and collaborative synergy of suppliers into the design process. A. True 4. The strategic sourcing plan should be developed in a collaborative environment that includes all relevant functional area representatives and supply chain members. A. True 5. Foreign governments never impose countertrade requirements. B. False 6. Statutory rates are full rates for tariffs. A. True 7. Which of the following is not a strategic issue in making the outsourcing decision? A. The issue of short-term vulnerabilities. 8. Which of the following is a consideration that favors buying a product? B. Multiple source policy 9. Which of the following is not one of the conditions demanding negotiation? C. Market must consist of adequate number of sellers.

Marae Essay examples -- Sociology, Māori culture

From a modern day perspective, the purpose of the marae has been as a place for the more official parts of MÄ ori culture. The marae are unequalled places of importance. "Marae hold the knowledge of the MÄ ori culture. They are the repositories of their history, their stories, and their existence." Ratima, 2010. Importantly, as highlighted in the creation story in Ahorangi Genesis, the ancestor link is through Tane, as the whare is an embodiment of Tane. His precious gift was te whare kura as a physical structure to house knowledge which can be viewed as the parallel to the human â€Å"structure†. Whereas in earlier times, the term marae applied only to the open area, often now called marae-atea, in front of the whare, today the term marae is commonly used to describe the entire compound (Tauroa & Tauroa, 1986). The whare (tipuna or nui), sometimes called meeting house, reads, to the initiated, like a history book. With arms outstretched in welcome, the body of the ancestor, generally endowing his name to the marae, is represented by the whare. His carved form, tekoteko, is atop the roof (maori.org.nz, 2011). The carved pieces under the head and down towards the ground- maihi, represent the arms, with the tahuhu or centre ridge pole being the spine of the ancestor, then the heke, or rafters, running off the tahuhu on both sides representing the ribs. In the fully carved whare, the walls are adorned with poupou or carvings, as well as tukutuku, or woven panels. The uprights, normally two, hold up the tahuhu, representing the connection between Ranginui, the sky father and Papat uanuku, the earth mother, (mÄ ori.org.nz) (Tauroa & Tauroa 1986). â€Å"Carvings of the ancestors serve to preserve history† (Graham, 1997, p. 38). Looking back... ...on by NZQA for its courses in crafts and MÄ ori arts and carving, hospitality and employment skills (Christchurch city council, 2011). Incredibly, in keeping pace with technological advances, we have virtual marae, as shown by the artist Lisa Reihana, who has created her own virtual marae, accessible to MÄ ori living worldwide, using photography and video (visualarts.qld.gov.au). In conclusion, as an institution, the marae stands for much more than the official parts of MÄ ori culture. It has its own system, its own learning and its own function. It is operaring still as Tane’s gift to mankind. Education is dominant on Marae, which now provide pathways to degrees, trade training and other NZQA opportunities. Marae are leading the way, taking their proper place in MÄ ori society. â€Å"Marae are the foundation of MÄ ori autonomy and tinorangatiratanga† ( Ratima, 2010). Marae Essay examples -- Sociology, MÄ ori culture From a modern day perspective, the purpose of the marae has been as a place for the more official parts of MÄ ori culture. The marae are unequalled places of importance. "Marae hold the knowledge of the MÄ ori culture. They are the repositories of their history, their stories, and their existence." Ratima, 2010. Importantly, as highlighted in the creation story in Ahorangi Genesis, the ancestor link is through Tane, as the whare is an embodiment of Tane. His precious gift was te whare kura as a physical structure to house knowledge which can be viewed as the parallel to the human â€Å"structure†. Whereas in earlier times, the term marae applied only to the open area, often now called marae-atea, in front of the whare, today the term marae is commonly used to describe the entire compound (Tauroa & Tauroa, 1986). The whare (tipuna or nui), sometimes called meeting house, reads, to the initiated, like a history book. With arms outstretched in welcome, the body of the ancestor, generally endowing his name to the marae, is represented by the whare. His carved form, tekoteko, is atop the roof (maori.org.nz, 2011). The carved pieces under the head and down towards the ground- maihi, represent the arms, with the tahuhu or centre ridge pole being the spine of the ancestor, then the heke, or rafters, running off the tahuhu on both sides representing the ribs. In the fully carved whare, the walls are adorned with poupou or carvings, as well as tukutuku, or woven panels. The uprights, normally two, hold up the tahuhu, representing the connection between Ranginui, the sky father and Papat uanuku, the earth mother, (mÄ ori.org.nz) (Tauroa & Tauroa 1986). â€Å"Carvings of the ancestors serve to preserve history† (Graham, 1997, p. 38). Looking back... ...on by NZQA for its courses in crafts and MÄ ori arts and carving, hospitality and employment skills (Christchurch city council, 2011). Incredibly, in keeping pace with technological advances, we have virtual marae, as shown by the artist Lisa Reihana, who has created her own virtual marae, accessible to MÄ ori living worldwide, using photography and video (visualarts.qld.gov.au). In conclusion, as an institution, the marae stands for much more than the official parts of MÄ ori culture. It has its own system, its own learning and its own function. It is operaring still as Tane’s gift to mankind. Education is dominant on Marae, which now provide pathways to degrees, trade training and other NZQA opportunities. Marae are leading the way, taking their proper place in MÄ ori society. â€Å"Marae are the foundation of MÄ ori autonomy and tinorangatiratanga† ( Ratima, 2010).

With specific reference to Act 2 Scene 1 examine Marlene’s character

With specific reference to Act 2 Scene 1 examine Marlene's character. Consider how the interview process exposed what she is like and the choices she has made. Marlene is a high powered business woman; she has just gained a promotion to managing director of a successful employment agency called ‘Top Girls. ‘ In Act 2 Scene 1 Marlene is positioned in the work environment, this enables the audience to see her perform as she would on a daily basis. This is the first time the audience sees Marlene in the work place you are able to make the observation that Marlene is well suited in this career as she is very ambitious. Act 1 informed the audience that Marlene just received a promotion this shows she is dedicated and successful within this agency. Marlene's charisma does a lot to hide her working class roots which she has obviously tried very hard to conceal from the people around her. You would never make the assumption that Marlene is from an impoverish background however, this is revealed when her sister is introduced in Act 2 Scene 2 and shown in working class society. Marlene has made several choices in life in order to move herself up civilization, which Churchill discloses throughout the play. Marlene is interviewing a young girl, Jeanine, for a job in Act 2 Scene 1. The audience is able to see her brisk interviewing skills here and how Marlene would generally perform in the work place. Marlene is quick to notice Jeanine's faults; this shows her to be a relatively pessimistic person. She is fairly blunt and seems rushed in this scene. This shows she is a busy woman who is committed to her work. Churchill purposely exposes the differences within the two women here even though Marlene was once from the same background as Jeanine, her abandoning of the ‘working class' background is noticeable in this scene as she clearly views Jeanine as being underneath her. This is shown by Marlene using Jeanine's forename, † Right Jeanine, you are Jeanine aren't you? † which is generally informal and disrespectful in this situation. Marlene is very original in her views of other women, she seems very self indulged, even though she helps people get jobs she is very ambitious and constantly looking ahead. As Marlene has no one else to worry about Churchill shows her to be self reliant and not want to let anyone else into her life. Jeanine has different ambitions to Marlene, though Jeanine is not necessarily the ambitious type she does have one desire, to get married. Marlene's character is thoroughly exposed when the idea of marriage and children in introduced. She reacts very negatively to both these aspects and seems to view Jeanine negatively for having this ambition. It is revealed in the Act 3 of ‘Top Girls' that Marlene in fact gave up her own child in order to pursue her career. Marlene has made sacrifices, marriage and children to be in the position she is in now and Churchill portrays Marlene to view other people differently for taking this path, like she believes others should make the same choices as she has. When Jeanine mentions not receiving an engagement ring Marlene responds with, â€Å"saves taking it off. † This shows she believes marriage affects work and possibly should stay undisclosed. This shows she is very dedicated to work, possibly too much so. Marlene is definitely a woman who knows what she wants from life and plans ahead to the future. Jeanine is very much the opposite of this as she is very reliant on other people's views and ideas instead of her own. When Marlene questions her about ten years time Jeanine replies with â€Å"I might not be alive in ten years. † This shows the audience their obvious differences and Jeanine's lack of expectations for herself. Marlene is definitely the type of woman who has planned out her next direction in life with steady consideration. Marlene thoroughly believes in commitment to work in order to receive the things you want. She went in to do higher education in order to pursue a career and distant her self from the working class life, her sister's life. This has been an inevitable choice for Marlene and she seems very independent. Marlene does not have a close connection with anyone. Here distances are brought across while speaking to Jeanine on the idea of marriage and children but also the idea of cutting Jeanine's speech up meaning she does not care about her personal life. I don't believe Marlene leads a great social life as she is very work orientated. Act one shows us she has never really had any partners showing again her self reliance but also her inability to make time for others. We know she has at least had one partner when it is revealed that Angie is in fact Marlene's daughter who she handed over to her sister. Though it is never revealed properly why, you get the impression Marlene would not give up the time to look after her daughter and did not want a child to interfere with her plans in future. She wanted to pick the career path not the child path. Marlene's new middle class background Marlene is definitely in a better financial state than Joyce but Marlene chooses to leave Joyce to take care on Angie. Marlene is not fond of children so the audience is able to identify that this child was not planned and Marlene left her mistakes behind her by moving away and beginning work. When Jeanine is speaking about her marriage, Marlene is swift to change the subject, possibly showing she is lonely and knows what she has missed out on. Marlene has abandoned the idea of ever getting married, to work for this company, receive her latest promotion etc. The play provides negative connotations toward being married and having children in this work environment as Marlene says â€Å"So you won't tell them you're getting married†¦ It would probably help. † Showing it is more difficult to get a good job when you have other commitments. Relationships are a hindrance for Marlene while Jeanine sees her relationship as her main focus in life. Marlene is very enigmatic as she keeps most problems and situations to herself. She is a serious character, especially in the work place. In Act 1 you see a slightly more open and humorous side to Marlene however, this was most likely because of her severe alcohol intake. In this interview process, Churchill portrays Marlene as being straight to the point and says what she thinks so that she does not have to waste time. Her job is a busy one and the way she acts towards Jeanine in the interview shows she does not have time to waste â€Å"We don't have any foreign clients. You'd have to go elsewhere. † Marlene also speeds up the interview so it finishes quickly this may be due to her amount of other work or her disliking of Jeanine, it is unclear because of Marlene's secretive side. Marlene seems to live up to the middle class stereotype. There is no connection with anyone from working class background made; this shows Marlene to be ashamed. She is proud for leaving that world behind but keeps it to herself as she doesn't want people to judge her for whom she used to be. Marlene is presented in many ways. Seeing her in the working environment is very significant as this is how she exposes herself to other people. Churchill wants to shows the differences between the two characters in Act 2 Scene 1. Marlene is apathetic towards Jeanine. She has dissimilar ambitions to Jeanine and slightly frowns upon her for choosing this path that Marlene has been so successful without. The differences here really highlight Marlene's thoughts and her as a character. The choices she has made in order to live a middle class career following life are very significant. Giving up a child is a huge decision and Marlene believes in part she made the correct choice and she is now a very successful business woman. You do receive the feeling that it has affected her on the whole as she quickly switches the direction of conversation while speaking with Jeanine about marriage and children. Also the idea of being very secretive shows Marlene must be slightly ashamed or possibly does not find others very trust worthy. She has changed her image and does not feel the need to mention the past which is mature of Marlene. Overall she is exposed by Churchill as making many significant choices in life which she makes no attempt to change permanently. Marlene is portrayed as being dedicated and successful in the work place and this is largely helped by her steady ambition. She has transformed herself and sacrifices certain aspects of life in order to be successful and have her dream occupation.

Swot Analysis of Starbucks

Management 303 SWOT Analysis of Starbucks Corporation Section I – Organizational History / Mission Statement In 1971, Starbuck’s opened its first location in the touristy Pikes Place Market in Seattle. The Starbucks name is derived from the coffee-loving first mate in the novel, Moby Dick. The logo, a two-tailed mermaid encircled by the stores name, continues with the theme and background of the name. From the beginning, Starbucks prides themselves on not only providing their customers with high-quality whole bean coffees, but also with providing them with an inviting atmosphere. The mission statement, â€Å"to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time†, is seen today in the more than 15,000 locations in more than 150 countries. Section II – Strengths and Weaknesses In my opinion, the top two strengths of Starbucks is their strong brand image associated with their high-quality coffee and their committed and strong workforce. Their top two weaknesses in my opinion are their high premium prices and lack of internal focus. Strength 1 – Strong Brand Image According to G Serrano, â€Å"The strongest attribute that consumers associate with the Starbucks brand is its being known for specialty/gourmet coffee. Starbucks is a widely-recognized brand. Its top-of-mind recall is high. It is both a household name and a buzzword. † By becoming a household name people go to Starbucks to get the â€Å"Starbucks Experience†. This means that Starbucks has made their stores so inviting that people actually get up early in the morning, grab the paper or a good book and drive down to the local Starbucks and basically just chill out. They provide an optional light snack, a good cup of coffee, free Wi-Fi and the comfort of your own home. Being highly recognized for all of the above qualities has contributed in the growth and expansion of their many locations throughout the US and abroad. This is a huge strength in that that being on top of the market share pretty much ensures that no matter what they will continue to stay on top because of their branding and their popularity. Strength 2 – Committed and Strong Workforce Not only does the coffee drive customers to Starbucks, but the dedicated employees who care about their jobs and their customers do as well. Starbucks thinks so highly of their employees, they call them â€Å"partners†. The partners are the ones who create the atmosphere that makes the customers feel the way they do about Starbucks. As Hammers stated in her â€Å"Workforce Management† piece, â€Å"The company’s rich benefit blend keeps turnover low and employee satisfaction high. And that's why it's the Optimas Award winner for Quality of Life. As business owners and managers, our job is to make sure that our employees or partners, for that matter, are happy and well-trained. When this happens, as it has with Starbucks, it outwardly shows to the clientele and it makes them want to come back time and time again. Weakness 1 – High Premium Prices Starbucks is a premium brand that commands premium prices. As competitive pressures increase, the company could b e undercut by lower price rivals such as McDonalds or Duncan Donuts. Recession or downturn in the economy, like we are facing now, affects consumer spending. If Starbucks continues to increase prices over the next few years in the face of increasing coffee prices, there could be a downside to their forecast. In this highly competitive market and with less disposable income to spend, consumers turn to lower priced venues and competitors. † Starbucks should look into some sort of cost saving efforts when it comes to the coffee beans that they buy. I know they are known for their premium brands, but with prices on the steady increase something Weakness 2 – Lack of Internal Focus Starbucks has grown by leaps and bounds over the past decade or so. They seem to be consumed with growing their market share by increasing the amount of locations they have within the states as well as abroad. Serrano states just this point in saying â€Å"The growth strategy was not really the failing point. In fact, this augured well for the company’s bottom line. What the company’s executives failed to see was the fact that if it wanted to saturate the market, its product and service offerings were not really meeting the characteristics of the market. That is why the market perceived Starbucks as merely concerned with growth in the number of stores and profits. The wide potential market base did not see Starbucks as concerned with their needs. † Starbucks goes through a lot of effort to get the opinions of their partners and their clients. They even have a board of people who read the queries on a monthly basis to see where improvements can be made. Since they are putting in all the effort, they need to follow through and start listening to the very people that give them their profits. Expanding will do no good if you don’t have any customers. The more they neglect what their partners and customers are saying, the more they are going to lose touch. Section III – Opportunities and Strengths In my opinion, the two biggest opportunities for Starbucks are increasing their CRM and database marketing and expanding into new product lines. Strength 1 – Increasing CRM and Database Marketing One of the greatest opportunities for Starbucks is to increase their CRM and Database Marketing. At the moment Starbucks just asks you what you want, you pay for it, they make your drink and you are on your way. In order to better serve their clients and give back to them, they could come up with some type of rewards program. Many large retailers and food chains have already begun these programs. This would help them stay in touch with their clients by sending them emails of upcoming events, new drinks and new offers. They could also attach a rewards program for the customers who have a daily addiction to their drinks. This basically becomes a win-win situation for not only Starbucks but for their customers as well. Strength 2 – Expanding Product Lines and Services We all know that Starbucks has the best selection of coffees around. Unfortunately, that is all they do. I think one of the greatest opportunities for them would be for them to expand their food line to go along with their drinks. Seeing that they are open all day long and into the night, they could benefit greatly by developing a larger lunch line. They currently have small salads and finger sandwiches at some of their locations. By increasing their menu they could also increase their profits. This would help give them a competitive advantage of other cafes along the same lines as them.

Free Essays on Emerson and Transcendentalism

were infallible. One can see this in the following passage: We lie in the lap of immense intelligence, which makes us receivers of its truth and organ of its activity. When we discern justice, when we discern truth, we do nothing by ourselves, but allow a passage to its beams. If we ask whence this comes, if we seek to pry into the soul that causes, all philosophy is at fault. Its presence or its absence is all we can affirm. (Self-Reliance 1163) In the preceding passage reference to the divinity of humanity is made when he states â€Å"When we discern justice, we discern truth†. Another â€Å"truth† he discusses is the divinity of nature and mankind’s oneness with it. Ralph Waldo Emerson believes that there is Divinity in Nature, and everything makes a circle back to a unity with the universe. The universe is the externsation of the soul. Whereve... Free Essays on Emerson and Transcendentalism Free Essays on Emerson and Transcendentalism Emerson and Transcendentalism In The Pulley George Herbert stated â€Å"He would adore my gifts instead of me; And rest in Nature, not the God of Nature†. Quite often people make this mistake of not seeing the forest through the trees. Be that as it may, there are many that only see one aspect of the whole scheme and focus all of their lives and energy into that feature. Ralph Waldo Emerson is one of these, devoting his existence to the concept there is divinity in nature and humanity. Emerson exemplifies these points in his writings â€Å"The Poet† and â€Å"Self-Reliance†. Ralph Waldo Emerson’s beliefs are grouped in a category called transcendentality. This idea started a philosophical and literary movement that flourished in New England from about 1836 to 1860. It began in a small group of intellectuals who were debating against the orthodoxy of Calvinism and the rationalism of the Unitarian Church, developing their own faith centering on the divinity of humanity and the natural world. Because he surrounded himself with intellectuals he started to believe that his words were infallible. One can see this in the following passage: We lie in the lap of immense intelligence, which makes us receivers of its truth and organ of its activity. When we discern justice, when we discern truth, we do nothing by ourselves, but allow a passage to its beams. If we ask whence this comes, if we seek to pry into the soul that causes, all philosophy is at fault. Its presence or its absence is all we can affirm. (Self-Reliance 1163) In the preceding passage reference to the divinity of humanity is made when he states â€Å"When we discern justice, we discern truth†. Another â€Å"truth† he discusses is the divinity of nature and mankind’s oneness with it. Ralph Waldo Emerson believes that there is Divinity in Nature, and everything makes a circle back to a unity with the universe. The universe is the externsation of the soul. Whereve...

Definition of the Disengagement Theory of Aging

Definition of the Disengagement Theory of Aging Disengagement theory outlines a process of disengagement from social life that people experience as they age and become elderly. The theory states that, over time, elderly people withdraw, or disengage from, the social roles and relationships that were central to their life in adulthood. As a functionalist theory, this framework casts the process of disengagement as necessary and beneficial to society, as it allows the social system to remain stable and ordered. Overview of Disengagement in Sociology Disengagement theory was created by social scientists  Elaine Cumming and William Earle Henry, and presented in the book  Growing Old, published in 1961. It is notable for being the first social science theory of aging, and in part, because it was controversially received, sparked further development of social science research, and theories about the elderly, their social relationships, and their roles in society. This theory presents a social systemic discussion of the aging process and the evolution of the social lives of elderly  and was inspired by functionalist theory. In fact, famed sociologist Talcott Parsons, who is regarded as a leading functionalist, wrote the foreword to the Cummings and Henrys book. With the theory, Cummings and Henry situate aging within the social system and offer a set of steps that outline how the process of disengagement occurs as one ages  and why this is important and beneficial to the social system as a whole. They based their theory on  data from the Kansas City Study of Adult Life, a  longitudinal study that tracked several hundred adults from middle to old age,  conducted by researchers at the University of Chicago. Postulates of the Theory of Disengagement Based on this data Cummings and Henry created the following nine postulates that comprise the theory of disengagement. People lose social ties to those around them because they expect death, and their abilities to engage with others deteriorate over time.As a person begins to disengage, they are increasingly freed from social norms which guide interaction. Losing touch with norms reinforces and fuels the process of disengagement.The disengagement process for men and women differs due to their different social roles.The process of disengaging is spurred by an individuals desire to not have their reputation damaged by losing skills and abilities while they are still fully engaged in their social roles. Simultaneously younger adults are trained to develop the knowledge and skills necessary to take over the roles played by those who disengage.Complete disengagement happens when both the individual and society are ready for this to occur. A disjunction between the two will occur when one is ready but not the other.People who have disengaged adopt new social roles so as not to suffer a crisis of identity o r become demoralized. A person is ready to disengage when they are aware of the short time remaining in their life and they no longer wish to fulfill their current social roles; and society allows for disengagement in order to provide jobs for those coming of age, to satisfy the social needs of a nuclear family, and because people die.Once disengaged, remaining relationships shift, rewards of them may change, and hierarchies may also shift.Disengagement occurs across all cultures but is shaped by the culture in which it occurs. Based on these postulates, Cummings and Henry suggested that the elderly are happiest when they accept and willingly go along with the process of disengagement. Critiques of the Theory of Disengagement The theory of disengagement caused controversy as soon as it was published. Some critics pointed out that this was a flawed social science theory because Cummings and Henry assume that the process is natural, innate, and inevitable, as well as universal. Evoking a fundamental conflict within sociology between functionalist and other theoretical perspectives, some pointed out that the theory completely  ignores the role of class in shaping the experience of aging, while others critiqued the assumption that the elderly have seemingly no agency in this process, but rather are compliant tools of the social system. Further, based on subsequent research, others asserted that the  theory of disengagement fails to capture the complex and rich social lives of the elderly, and the many forms of engagement that follow retirement (see The Social Connectedness of Older Adults: A National Profile by Cornwall et al., published in  American Sociological Review  in 2008). Noted contemporary sociologist Arlie Hochschild also published critiques of this theory. From her view, the theory is flawed because it has  an escape clause, wherein those who do not disengage are considered troubled outliers. She also critiqued Cummings and Henry for failing to provide evidence that disengagement is willingly done. While Cummings stuck to her theoretical position, Henry subsequently disavowed it in later publications and aligned himself with alternative theories that followed, including  activity theory and continuity theory. Recommended Reading Growing Old, by Cumming and Henry, 1961.Lives Through the Years: Styles of Life and Successful Aging, by Wiliams and Wirths, 1965.Disengagement Theory: A Critical Evaluation, by George L. Maddox, Jr.,  The Gerontologist,  1964.Disengagement Theory: A Critique and Proposal, by Arlie Hochschild,  American Sociological Review  40, no. 5 (1975): 553–569.Disengagement Theory: A Logical, Empirical, and Phenomenological Critique, by Arlie Hochshchild, in  Time, Roles, and Self in Old Age, 1976.Revisiting the Kansas City study of adult life: roots of the disengagement model in social gerontology, by J. Hendricks,  Getontologist, 1994. ​​Updated  by Nicki Lisa Cole, Ph.D.

Income statement and balance sheet Essay Example | Topics and Well Written Essays - 750 words

Income statement and balance sheet - Essay Example The business community has more accumulated wealth that the governments of the over 200 countries in the world combined.There are thousands of publicly traded companies been traded on Wall Street and international markets such as the London Stock Exchange every day. Due to the importance of these capital markets there is a need for professionals dedicated to financial reporting. Publicly traded companies have to prepare financial statements every accounting period. The normal accounting period is one year, but most companies also release quarterly financial statements. The four major financial statements are the income statement, balance sheet, statement of cash flow, and statement of stockholders equity. These four financial statements are included in the Annual Report of corporations. The purpose of this paper is to analyze and describe the income statement and the balance sheet. The income statement and the balance sheet are two interrelated statements. The outcome of the income s tatement affects the equity account of the balance sheet. The income statement is a financial report that provides information regarding the profitability of the company during an accounting period. The top figure in the income statement is sales. Sales are very important because they provide the economic asset needed to operate a business. The sales of the company are subtracted by the cost of goods sold. The subtraction of those variables is the gross profit. At the bottom of the income statement the operating expenses and taxes are subtracted from gross profit to arrive at net income. The income statement is a very valuable report because it indicates how well a business operation is doing in terms of financial success. The income statement reports the revenues and expenses of an enterprise during a natural or fiscal year. The top and bottom figures of the income statement are the two numbers investors look for which are sales and net income. The higher the figure of net income t he better off a company is financially. Net incomes help companies accumulate capital. The net income figure is transferred from the balance sheet to the stockholder’s equity section. The second major financial statement is the balance sheet. The balance sheet is considered a statement of position. This means that the figures illustrated in the balance are the account balances at a specific point in time. The three major components or categories within the balance sheet are assets, liabilities and stockholder’s equity. The internal structure of the balance sheet follows the logic of the basic accounting equation. The basic accounting equation states that assets are equal to liabilities plus stockholder’s equity. An asset can be defined as an item of economic value owned by an individual or corporation (Answers, 2011). The assets in the balance sheet are listed in order to liquidity. The most liquid asset is cash. Equipment and machinery are two examples of asset s. Machinery is a fixed asset that can be used to generate revenues. Assets can also be converted to cash by selling them. The liabilities of a company are short and long term obligations to financial institutions such as banks. It is preferable for a company to have a low level of debt. Debt instruments can be used to finance expansion projects. The debt section of the balance sheet is divided into short and long term liabilities. The last segment of the balance sheet is the equity section. The balance sheet and the income statement are prepared once the accounting department completes the accounting cycle. These two financial statements are extremely valuable pieces of information for the user of financial information. It is mandatory for public companies to release the financial statements at least once a year. The regulatory agency that foresees the financial actions of public corporations is the Securities and Exchange Commission (SEC). The data in the balance sheet and income statement can be used by financial analyst or anyone with financial knowledge to perform ratio, trend,