Virtues Essay Example | Topics and Well Written Essays - 500 words

Virtues - Essay Example Integrity is defined as staying honest and having strong moral principles. For instance using the turn signal lights in a car. I make it a personal choice to use turn signals when turning off an empty road or in a parking lot. I strive to promise what I can deliver. This has made it easier for me to say no to what I cannot do and in turn my integrity is nourished.Work ethic is the policy that hard work is intrinsically virtuous or worthy of reward. Practice leads to perfection. It applies to academics, sports and life in general. What you reap is what you sow. Consistently, I have worked hard at my academics, and it has proved that work ethics does apply. Colin Powell states "A dream does not become reality through magic; it takes sweat, determination, and hard work." Teamwork is the effective and efficient action of a group. Teamwork can never be overrated. If you need to walk fast, walk alone. If you want to go far, walk with others. From the football pitch to the classroom, I have enjoyed the fruits of collaboration. In class discussions, I have always found previously hard concepts explained by others. I have improved my grades through such group discussions. Self-discipline is the ability to control one's feelings and overcome one's weaknesses. In high school, I would procrastinate a lot. Then I started rewarding myself for following a checklist of activities previously written down. Now in my undergraduate I can attest to the power of self-discipline as a virtue. However, fully mastering it is still a process, not a destination.

Criminal justice Individual project & Discussion Board Essay

Criminal justice Individual project & Discussion Board - Essay Example hich has the guidelines for the prevention of juvenile delinquency (1), and Juvenile Justice Planning Committee, whose mission is â€Å"to provide resources for youth who are at-risk of becoming delinquent due to individual, school, family, peer or community factors. These resources will also provide services for youth who are delinquent, undisciplined or involved in the juvenile court process from intake through aftercare† (2). The United Nations Guidelines consists of some chapters: Fundamental Principals of the Guidelines, Scope of the Guidelines, General Prevention, Socialization Processes (in turn it consists of the following sections: Family, Education, Community, Mass media), Social Policy, Legislation and Juvenile Justice Administration, and Research, Policy Development and Co-ordination. The purpose of the United Nations programme is to underline the key-point factors of the juvenile delinquency prevention and the main issues to be researched and studied in this topic. The programme underlines that the prevention of juvenile delinquency is one of the main purposes of our society. A child must be in the center of the Guidelines orientation. All the means of community should be attracted to develop the processes of socialization and juvenile delinquency prevention: â€Å"Community-based services and programmes should be developed for the prevention of juvenile delinquency, particularly where no agencies have yet been established. Formal agencies of social control should only be utilized as a means of last resort† (1). The United Nations Guidelines appals to the work with youth and has the description of appropriate means concerning namely juvenile delinquency prevention. But in addition to that, it appals for adults – adult family members, teachers, other community subjects and mass media officials should be reliable for the youth development and their successful adaptation and socialization in our society. The programme links to school and other

Bibilical Illusions With The Novel Cry Essay Example for Free

Bibilical Illusions With The Novel Cry Essay Biblical reference within the story Cry the Beloved Country Many times in literary pieces, allusions are put in novels, used to foreshadow the ending of a book. The most common types of allusions are those from the bible. This is probably because many are familiar with the bible and its stories. The goal of foreshadowing is to provide a way for the reader to think more about the big picture, rather than what is happening page by page. In the novel, Cry the Beloved County, allusions to the Bible are very apparent and hold high significance in the story. The character Absalom shows tremendous similarities to the Biblical Absalom and almost seem to be made out of the same mold. Steven Kumalo from the novel and the simple man Job from the bible are tested in the same way and come out in the end in the same way. Biblical Absalom is essentially wronged by his half-brother Amnon, when his half brother forced his sister Tamar to sleep with him. Similarly Absalom Kumalo is wronged by his fathers, brothers, son, Matthew, when he will not admit to the court that he was an accessory to murder. Basically, both are wronged by a close family member, Biblical Absalom by his brother, and Absalom Kumalo by his cousin. In both stories, though not shown in depth, the men show a close trusting relationship with the one whom have wronged them. Before Amnon slept with his sister Tamar, Biblical Absalom would have no reason not to trust his brother, just as Absalom Kumalo would not doubt his cousin whom aided him in the murder. Later on, both men find out that, Amnon and Matthew are in it for themselves, not unlike both Absaloms. Absalom Kumalo shot Arthur Jarvis with the intentions of becoming richer. Even though Biblical Absalom killed his brother for sleeping with his sister, with Amnon dead, Absalom would inherit his fathers throne. (Bible p372-380) (Ward pp.188-189) In retrospect, both men were ultimately driven to commit the murder. Absalom Kumalo probably felt that if a white man can underhand him, and deny him money, then he deserves some of his fortune. So because whites men, kept blacks unskilled and did not allow them the same rights, many rebelled against the whites. In the same frame of mind, biblical Absaloms hatred for his brother was built up until he decided to go through with his murder. Even though Absalom Kumalo shot the white man on accident, he was doing it for his own gain. He went into the  house with the intention of stealing and instead shot a white man out of fear. Though it may seem that he regretted what he had done, which he in some ways did, his crime could not be fully repented. More than anything he probably wishes for Arthur Jarvis to be alive. He doesnt feels bad about killing him, he simply does not want to deal with the consequences. Biblical Absalom plans out the murder of his brother when he has him over for dinner. Neither men regret killing a man that was as family to them. (Bible p372-380) (Davis p184) Biblical Absalom murdered his brother Amnon for raping his sister Tamar two years earlier. Absalom Kumalo, on the same note, accidentally murdered a white man, while attempting to rob him. Absalom Kumalo, like biblical Absalom essentially murdered his own brother. Arthur Jarvis, the man Absalom Kumalo shot, was like a brother to the black men. He devoted his life to make a difference in blacks rights in South Africa. For both men, the act of murder on their part, ultimately led to their own demise. Biblical Absalom killed his brother Amnon and when king David found out that Absalom had indeed killed his brother Amnon. After the murder, both men flee the scene. Absalom Kumalo, runs because the price for killing a white man is high. Biblical Absalom flees because he also knows, that if he stays, hash consequences will be enforced. (Bible p372-380) Eventually, both man are captured and die in an unusual manner against both their fathers wishes. Absalom Kumalo is hung for his crime, so as to set an example. Though, the hanging of Absalom is not so strange in itself, its almost foretold in the biblical story of Absalom. After biblical Absalom flees his home on a horse, his head gets caught in a tree while passing under. This act is almost too familiar. As biblical Absalom dies with his body off the ground, struggling to get down, Absalom Kumalo dies with his head in a noose, and body dangling above the ground. (Bible p372-380) (Davis p184) In the bible, Job is developed as a man whom would never speak ill of god. Job is tested by Satan, who believes that Job will curse God if his prosperity is taken away. Satan kills Jobs children and all of his livestock, but Job does not lose his faith. Satan then takes away Job health by planting boils all over his body. Job eventually become very disappointed with his life and curses the day he was born. This is a classic example of how no man is perfect and when  Steven was introduced into Cry, the Beloved Country, he seemed to strive for perfection just as Job had in the bible. Job in theory seemed perfect but, Satan proved Job not to be, just as Stevens family proved him not to be. (Davis pp.265-272) (Bible p572-600) When brought into the story, both Steven and Job seem to be perfect and upright men. Steven, as a simple black parson and Job, as a upright man whom has shown no flaws. Though Stevens flaws are shown early on the novel, Cry, the Beloved County, he is still seen as a good man. Both men are examples of how bad things sometimes happen to good people. They both try to be the best men they can be, by fixing others mistakes and trying to be good people. Job offered burnt offerings to god everyday for his children who may have cursed god in their hearts and Steven prayed everyday to repent the sins of others and his own. The main thing that made these men eligible to lose so much, was because they had gained so much earlier in life. Though Steven want a rich man, he was far better off than any man in his village, and Job was a very prosperous man and looked well upon by god. (Davis pp.265-272) (Bible p572-600) Since Job was thought so highly of by God, he was tested by Satan in order to see if he would lose his faith. Steven Kumalo is tested in the same way as Job. Steven receives a letter from a priest informing him with the news that his sister, Gertrude, is sick. He leaves his normal life in the valley and travels to the city, with the intentions of bringing her home. When he arrives there, he is confronted with the horrifying news that she is selling herself to men. Steven goes in search of his son Absalom, and eventually finds him. Absalom had shot a white man and is sentence to be hung. Everything that went on in Jhonnaneburg hurt Steven and just like Job, he is tortured to the point where he will break if anything else were to happen. (Bible p572-600) (Ward p.222) In the end, though both men had lost practically everything they cared about, Steven his son and sister, and Job all his children and his prosperity, but then things got significantly better. Steven loses a son but gains a daughter carrying baby, and his sister Gertrudes son. Job loses all his children but gains ten new children and all his livestock back. Its an interesting coincidence how both men lose their child or children, but as they regain faith, new children are restored to them. (Davis pp.265-272)  (Bible p572-600) Paton used the name Absalom as an allusion in the story. His goal was probably to allow people to see into the future of Absaloms mortality. When I first read the story of Absalom, I didnt any definite similarities but as the stories start intertwining, I understood why he used the name Absalom for Stevens son. Absalom in general was a greedy boy, who really thought he deserved more and makes the mistake of killing a man which ultimately leads to his own death. Job and Steven, on the other hand, are generally men who strived to be good men. They were tested with their faith and both men failed, but they do gain their faith back, and their happiness along with it.

Reimbursement Issues For Nurse Practitioner Health And Social Care Essay

Reimbursement Issues For Nurse Practitioner Health And Social Care Essay The Balanced Budget Act of 1997 was unquestionably a frontward step for advanced practice nurses (APNs).   Payment is remarkably allowed for all settings as long as no other provider fee or other facility fee was being paid in relationship to the assistance supplied by the APN.   The various constraints on settings for services provided by the advanced practice nurse were totally removed from the guidelines (Bardach, 2006). The regulations for reimbursement of APN services typically changes based on the category of setting. Within the office setting, the permissible reimbursement to nurse practitioners is only 85% of that of a physician. This same reimbursement is acceptable only if billed straight under the nurses name and provider number (Fishman, 2002). The decrease in conversion factor for Medicare for reimbursement has affected rural clinics. This paper will discuss some pressing issues regarding reimbursement for nurse practitioners. I. Crucial Areas for Reimbursement that Nursing Practitioners Should Know 1. An advance practice nurse (APN) should be responsible and aware of the reimbursement process. APN must have read the participation contracts involved. They must determine the following: Does the plan credentials the APN and assigned a provider number. What are the claim submission requirements?   It could be direct billing or billing which is conducted by a supervising physician. And what are the time frames for submission. Can appeal mechanisms for claims denial be conducted? What are the covered services? Is it reimbursement methodology capitation or fee for service, etc? 2. An APN must familiarize documentation requirements in order to support the Certified Performance Technologist or CPT. Last 2001, the Office of Inspector General had conducted reviews on nurse practitioner, clinical nurse specialist and assistants of physicians. This is to comply with the Health Care Financing Administration or HCFA rules and regulations. (Cooper, 2000) II. Understanding the Reimbursement Procedure In order to better understand the underlying reimbursement issues in nursing practitioner, we must first have a clear grasp on the reimbursement process itself. In 1965, two methods, the Medicare and Medicaid of Social Security Act were amended by the Congress. These two will be discussed thoroughly in the next sections of the paper. With the first method, Medicaid, 100% of the physician rate is reimbursed. This will only apply if the incident to criteria are met. The phrase incident to refers to the services provided by nursing practitioners where a physician is actually present, or available for consultation. In order to verify the presence of the attending physician, the patients contact, appointment schedule or a documentation of the medical records can be used. The local Medicare will give the nursing practitioner a unique identification number (UPIN) for his or her bills. For a direct reimbursement, a practitioner must undergo an application process conducted by the payer. With the second method, Medicare, the nursing practitioner receives 80% of the fee that is set by the practice. Or they also have the chance to receive 85% of the Medicare physician fee schedule. One disadvantage of this method is that it reimburses the lowest charge possible. Citing an example, a practitioners bill for his or her services is $120 and Medicare only allows $100, the practitioner will only reimburse $85, which is 85% of the Medicare allowable. (Rapsilver, 2000) II. General Issues There are various notable issues connected to the reimbursement for services provided by the APNs. They are expected to take possession and responsibility of the procedure on the reimbursement. The APNs should first begin with comprehending their involvement contracts with health care plans to ascertain the following items (Fishman, 2002): if the said health care plan will give credit to the nurse practitioner involved and will consequently assign a provider number, if there are any appeals procedures for denials of claims, if it is possible to review the comparison of fee for service versus the plans reimbursement methodology capitation, etc., if claims such as billing under the administering physicians name or direct billing ask for requirements to be submitted within a specific timeframe; and, if all specific services are covered On the secondary topic, nurse practitioners should become familiar with various requirements when it comes to documentation to sustain appropriate CPT coding. APNs should refer themselves to the HCFA rules and the Federal register for guidelines (Bardach, 2006).   The nurse practitioner should actively participate on internal audit of documentation to find out if their documentations support the CPT code billed. APNs should responsibly scrutinize an illustration of their assortments against their monthly charges. This guarantees that reimbursements are properly made according to contract and that no charges are being denied. (Kansas Nurse, 2008). III. Medicaid Reimbursement Process Issue The lack of consistent progress in the Medicaid hospital reimbursement processes has left the nurse practitioners confused and disappointed over the past few years. Progress towards simplifying the Medicaid reimbursement process has been slowed by the absence of relevant policies in hospital reimbursement, memberships, and the level of access for the members (Fishman, 2002). The lack of priority and actions from the leaders of healthcare to implement the policies for the Medicaid hospital reimbursement processes resulted to the decline in the productivity of the program and posed major setbacks for nurses. With the necessary improvements not being achieved, the government is left with nothing to use in integrating the needed reforms in the Medicaid hospital reimbursement processes. Suspended reforms for Medicaid hospital reimbursement processes reveal incoordination among various health departments which significantly affected Medicaid members. The adverse effects of the current economic crisis put local governments in a state of uncertainty whether to pursue plans of implementing the new Medicaid hospital reimbursement processes to handle the health needs of their residents (Farley, 2000). Over the past few years, the local governments have been limited with their actions to completely adopt the new Medicaid hospital reimbursement processes. In New York alone, residents that are not yet affiliated with Medicaid have reached a number of almost 4 million. New York, however, is still way ahead in terms of progress as compared to other states in America. Still, according to Bardach (2006), the majority of New York residents are completely dependent to the Medicaid program because: (1) Medicaid assists them in the access of health benefits; (2) Medicaid assists them by means of health insurance. Yet these Medicaid policies also led to New Yorks health issues due to the lack of coordination by the leaders. IV. Medicare Reimbursement Process Issue Many advanced practice nurses inaccurately presuppose that receiving an APN license eliminates all obstructions to getting reimbursements for all their services by the insurance companies.   The primary goal obviously is to achieve direct reimbursement, which basically means being able to bill in the APNs exact name and not that of the or under the physician.   This is because being billed under a doctors name austerely propagates the invisibility of the nurse practitioners (Fishman, 2002).    To accomplish this goal of straightforward reimbursement, advanced practice nurses have to be empanelled by a reimburse-er or have to get a provider status.   The methodology for Medicare had primarily implicated achieving a PIN or a Provider Identification Number, which has now transformed into the new NPI or the National Provider Identifier (NPI).   Ã‚   In reality, as an example, Medicare already was issuing PINs to advanced practice nurses in Illinois two years before the APN regulations for practice were written.   Comparatively, Medicaid in Illinois was also agreeable to directly reimburse advanced practice nurses even before Medicare (Bardach, 2006). The frequent misconception of many advanced practice nurses about Medicare is that if a contributor gets a Medicare number, he or she will be reimbursed mechanically by every other insurance corporation, including PPOs and HMOs.   That is very wrong since insurance companies create or develop their own precise policies.   It can then be said that what one company permits, another one might not (Fishman, 2002).    V. Private Insurance In the United States, there are many private insurance plans that exists. Due to this, the guidelines for advance practice nurses are highly variable. There are times that the plans include the nurse provider in the preferred provider network. But there are also times that the nurse provider is considered outside the preferred provider network. So in general, less coverage is then afforded for the services rendered by nurses. These phenomenal places burden on those who have minimal resources. The number of networks that seeks to include practitioners among their credential providers is increasing. When discussing about the reimbursement issues, the fact that advance practice nurses always receives less payment that physicians arises. Advance practice nurses have been taught how to provide high quality care which is equal to the care provided by physicians. Because of this, they should be paid an equitable fee for the services they have rendered. Efforts are now exerted in order to fix these inequities. (Lundy) VI. Why APNs Do Not Receive Equal Reimbursement The Medicare Payment Advisory Commission or MedPAC examined the payments differencials between the clinicians and physicians. Why does this two groups do not get equal reimbursements? The MedPAC conjured that there is actually no analytical foundation that can support this. So in order to answer this question, the Commission investigated if these two groups, physicians and non-physician providers produces the same products or different products. According to the Commission, the Medicare must set the service payment equal to the cost incurred in efficiently rendering the service. Whenever the physicians and clinicians have provided the same service, then the payment for the low cost provider must be applied for all service providers. In many cases, there are many distinguishable differences between the services rendered by physicians and clinicians. Citing an example, according to reimbursement data, clinicians who are not physicians demonstrates a less complex evaluation and management services than physicians. Other specializations and surgical services are not included in the scope of practice of certain clinicians. Adjustments and changes for these types of billing codes include differences in resource costs. Since the nature of billing codes is imprecise, the Center for Medicare and Medicaid Services were not able to distinguish the different categories of clinician who provide similar services. They have this assumption that physicians are much prepared to diagnose and treat patients that have severe illnesses. But, contrary to this, anecdotal reports stated that other clinician sometimes spend more times in checking and treating patients with severe illnesses or who are in critical conditions, which made the physicians to care for a greater number of patients with lower acuity. Whenever a physician and other clinician bill for the same service, it is very difficult to tell of the physician saw a more complex patient. Due to these uncertainties in comparing their services, the Commission is reluctant in altering the payment differential. And certain policies even on the same company might be allowed in one state but not in another state.   As point of the matter, if one company has three product lines such as HMO, fee-for-service or indemnity, and PPO, then it may also have three dissimilar guiding principles for nurse practitioners (Bardach, 2006).    Consecutively, to ultimately become a credentialed contributor for each insurance plan that patients are secured with, a nurse practitioner must then submit an application for provider category with each and every insurance company, including Medicare and Medicaid. From that discussion, every provider must be familiar with some fundamentals about Medicare. First and foremost, there is Medicare Part A, which actually covers skilled nursing home, hospital, and home health charges; and then there is Medicare Part B, which then envelops most outpatient services, the care patients in particular obtain from doctors offices (Fishman, 2002). When it comes to the incident to billing, the Commission decided to consider that services rendered by clinicians who are not physicians but billed as incident to must be paid 100% of the physician fee schedule. The Commission have stated that the incident care fee is predicated upon the care or service provided by the team, with the non-physician giving the direct patient care services and the physician taking responsibility to the over-all welfare of the patient. They concluded that the team approach to care provides value which warrants payment at the full rate. (Edmunds, 2002) V. Conclusion Reimbursement issues have become challenge to nursing practitioners. Among the critical areas that NP should know are the following: the reimbursement process, contracts and the documents required. They are expected to take possession and responsibility of the procedure on the reimbursement. The APNs should first begin with comprehending their involvement contracts with health care plans. Secondly, nurse practitioners should become familiar with various requirements when it comes to documentation to sustain appropriate CPT coding. APNs should responsibly scrutinize an illustration of their assortments against their monthly charges. VI. Preparing for Future APN Reimbursement Being part of the healthcare system, Advance Practice Nurses (APNs) continue to search for greater quality, effectiveness and effeciency in delivering care. Many organizations and institutions like Center for Medicare and Medicaid Services (CMS) are taking the lead in identifying and validating indicators of high quality health care aiming to streamline delivery of care and to reduce convulated health care costs. à ¢Ã¢â€š ¬Ã‚ ¢ Composite Measures a reimbursement coding category that is currently being validated to deliver quality measures which can lead to desired patient results for chosen chronic diseases or conditions. (Kennerly, 2007) Establishing these new standards are based on the assumptions that by using them will cause a consistent high quality of outcome for the majority of patients and there will a great decrease in health care cost. The CMS is currently focusing on reforming quality reimbursement sytems which can save money while rewarding those care providers for their quality performance. à ¢Ã¢â€š ¬Ã‚ ¢ Pay-for-Performance led to determining the importance of implementing a common set of clinical standards for medical care. This means a providers performance and reimbursement is now and in the future will depend on and be judge against a national standard for care rather that past provider;s performances. (Kennerly, 2007)

Lord Of The Flies :: essays research papers

Lord Of The Flies By: William Golding 1.) Title: Lord Of The Flies Published: 1958 Author: William Golding Where book was acquired: Wittenberg Library: Wausau Library. 2.) What type of book: Fiction, told in Third Person. 3.) Characters: 1.) Ralph: Ralph is about 12 years old and he is fair headed. He is described as being built and is chosen as the leader due to his positive qualities. Ralph is a self-assured boy whose confidence in himself came from the acceptance of his peers. He does not care about anything at first because he has a strong belief that his father, who is in the navy, will send someone to rescue them. He had a fair nature, as he was willing to listen to Piggy. He was softer compared to Jack, and also became pretty dependent on Piggy’s wisdom throughout the book. 2.) Jack Merridew: Jack is about 12 also. He has red hair and he has a skinnier build than Ralph. Jack began as the arrogant and self-righteous leader of a choir. The freedom of the island allowed him to further develop the darker side of his personality as the Chief of a savage tribe. He eventually took power through brute force, and toward the end had no humane feelings what so ever. He was a complete savage. 3.) Piggy: Piggy is short, overweight, has asthma, and wears glasses. He tries his best to keep peace. His glasses are very important because they are used over and over again to start fires. Piggy was an educated boy who had grown up as an outcast. Due to his academic childhood, he was more mature than the other boys and kept his civilized behavior, but his experiences on the island gave him a more realistic understanding of the cruelty possessed by some people. 4.) The Twins: Sam and Eric are two young twins who always travel and do everything together. Without each other they are incapable of almost everything. 5.) Simon: Small, scared little boy. Keeps on seeing the â€Å"the Beast† 4.) Two main conflicts: 1.) Jack Vs. Society: Jack couldn’t stand taking orders from Ralph anymore. It made him very angry. He didn’t like participating in the rules that they had either. (He must have felt like this before he even came to the island.) He didn’t want to listen to anyone but himself and felt his ideas were the best. He wanted people to listen to him, and do what he said, not follow the crowd.

Free Essays on Vouchers, School Choice, and Charter Schools :: Argumentative Persuasive Topics

School Choice and Charter Schools    I am not so sure I am for or against the idea of school choice as much as the idea for educational equality. If school choice and charter schools are the way this country will gain equity in the schools then I am for school choice. I feel that the impoverished are not going to get the best education that is available to them in their area. If the town fifteen miles away is a much better school, both educationally and developmentally, then I believe that the student that goes to school A should have the opportunity to attend school B. Why should someone who was born into an underpriviledged home live an underpriviledged life? This child did not choose to be born into this family, so I believe we should give them some kind of choice in their lives. A good education, along with other assets that one can gain through education, is the answer to bettering one's life. It gives these childrenm the choice to make a different life for themselves and for their children.    I am not so sure that there is an ideal school choice program, but then again does there really have to be? Choice is choice. If I am given the opportunity to choose, I will most likely make the right decision or I will fix the mistake that I made. If people are given the chance to better their lives, they will take that opportunity, if they are smart. We, as change agents, are not responsible to hold the hands of those who do not take the bull by the horn! There is only so much people can do for others. Give them the choice, and if they take it greeat, and if they don't, what else can we possibly do.    I think the only responsibilty of the change agents are to inform the public of their choices. Let the public know what is out there, and what the benefits are to school choice. Most people are going to wonder why they should take the trouble to transport their children to a school that might be a little farther than the school in the neighborhood. I believe that it is also very important to give many choices. I think it would be a mistake to limit the students to certain schools. Free Essays on Vouchers, School Choice, and Charter Schools :: Argumentative Persuasive Topics School Choice and Charter Schools    I am not so sure I am for or against the idea of school choice as much as the idea for educational equality. If school choice and charter schools are the way this country will gain equity in the schools then I am for school choice. I feel that the impoverished are not going to get the best education that is available to them in their area. If the town fifteen miles away is a much better school, both educationally and developmentally, then I believe that the student that goes to school A should have the opportunity to attend school B. Why should someone who was born into an underpriviledged home live an underpriviledged life? This child did not choose to be born into this family, so I believe we should give them some kind of choice in their lives. A good education, along with other assets that one can gain through education, is the answer to bettering one's life. It gives these childrenm the choice to make a different life for themselves and for their children.    I am not so sure that there is an ideal school choice program, but then again does there really have to be? Choice is choice. If I am given the opportunity to choose, I will most likely make the right decision or I will fix the mistake that I made. If people are given the chance to better their lives, they will take that opportunity, if they are smart. We, as change agents, are not responsible to hold the hands of those who do not take the bull by the horn! There is only so much people can do for others. Give them the choice, and if they take it greeat, and if they don't, what else can we possibly do.    I think the only responsibilty of the change agents are to inform the public of their choices. Let the public know what is out there, and what the benefits are to school choice. Most people are going to wonder why they should take the trouble to transport their children to a school that might be a little farther than the school in the neighborhood. I believe that it is also very important to give many choices. I think it would be a mistake to limit the students to certain schools.

Agency Problem – Essay

I partially agree with the statement that managers have a severely limited amount of discretion to pursue actions inconsistent with shareholder wealth maximization. By investing in a company, shareholders aim to maximize their wealth and achieve portfolio diversification. The objective of managers is assumed to be to further these interests by maximizing the firm’s share value. This can be achieved by taking on projects with positive NPV and good management of short-term capital and long-term debt. However, shareholders and managers are assumed to want to maximize their utilities; so this objective may not always be the priority for managers as they may rather prefer to maximize their own wealth or further other personal interests of theirs. This conflict of interest between the two is an example of the principal agent problem. The principal agent problem occurs due to two reasons. The first is the separation of ownership from control – the principal or the shareholders may own a corporation but it is the agent or manager who holds control of it and acts on their behalf. This gives managers the power to do things without necessarily being ‘detected’ by shareholders. The second is that shareholders may not possess the same information as the manager. The manager would have access to management accounting data and financial reports, whereas the shareholders would only receive annual reports, which may be subject to manipulation. Thus asymmetric information also leads to moral hazard and adverse selection problems. The following are areas where the interests of shareholders and managers often conflict: Managers may try to expropriate shareholders’ wealth in a number of ways. They may over consume perks such as using company credit cards for personal expenses, jet planes etc. †¢Empire building: Managers may pursue a suboptimal expansion path for the firm. They may expand the firm at a rationally unfeasible rate in order to increase their own benefits at the cost of shareholders’ wealth. †¢Managers may be more risk ave rse than shareholders who typically hold diversified portfolios. †¢Managers may not have the same motivation as shareholders, likely due to a lack of proper incentives. Managers may window dress financial statements in order to optimize bonuses or justify sub optimal strategies The principal agent problem normally leads to agency costs. This has been identified by Jensen and Meckling(1976) as the sum of: 1. Monitoring costs: Costs incurred by the shareholders when they attempt to monitor or control the actions of managers. 2. Bonding costs: Bonding refers to contracts that bond agents' performance with principal interests by limiting or restricting the agent’s activity as a result. The cost of this to the manager is the bonding cost. 3. The residual loss: Costs incurred from divergent principal and agent interests despite the use of monitoring and bonding. However the manager’s discretion is quite limited in practice. There are a number of internal and external solutions to agency costs for shareholders. Internal: †¢Well-written contracts ensure that there are fewer opportunities for managers to over consume perks. †¢An external board of directors could be appointed to monitor the efforts and actions of managers. This board would have access to information and considerable legal authority over management. It could thus safeguard information and represent shareholder interests in the company. †¢The board could hire independent accountants to audit the firm’s financial statements. If the managers don’t agree to changes proposed by auditors, the auditors issue a qualified opinion. This signals that managers are trying to hide something, and undermines investor confidence. †¢Compensation packages where the reward to the manager is linked to firm performance. This includes performance related bonuses and the payments of shares and share options. Ambitious, lower managers are a threat to the jobs of inefficient, evading ones. External: †¢The lenders of a company also monitor; a bank for instance would track the assets, earnings and cash flows of the company it provides a loan to. †¢Managerial labor market: Poor managers may not get another job or get a much poorer one. Ultimately the most important indicator to the labor market of managerial performance is share price. †¢Capital Markets – A falling share price increases the threat of a take-over, which can often result in redundancies. More concentrated shareholding by outsiders can lead to monitoring by them and improve managerial performance. However there are a few problems with these solutions though, which make it possible for managers to circumvent them to a small extent. In order to keep the share price high, managers may focus more on short term profitability at the cost of long term profitability. They may use gimmicks to temporarily boost the share price and neglect spending on research, development and H. R. They may also provide sub standard products and cease providing services for old, or relatively less important products in order to reduce costs and make a quick profit. This damages the company’s reputation, reduces its competitiveness in the future and thus affects long-term shareholder value negatively. While block holders may act as external monitoring mechanisms, they can also have private incentives to go along with management decisions, which may be detrimental to firm performance. Writing better contracts may reduce the problem of asymmetric information, but not fully solve it. This is because the design of such contracts is technically infeasible due to various reasons such as the difficulty of foreseeing all future contingencies. Dispersed shareholders often do not exercise the few controlling rights that they have. This leads to a free rider problem where shareholders would prefer to let other shareholders do the task of monitoring as they cannot justify spending on it over the few shares that they each own. In order to resist takeovers, managers may design contracts that compensate them in the event of loss of control due to the takeover. They may also undertake targeted repurchases and devise a poison pill, which changes the fundamental aspects of the corporate rules without the knowledge of shareholders. While incentive schemes such as shares and share options are effective, they are still reactive in the sense that they provide no mechanism for preventing mistakes or opportunistic behavior. Managers may continue to focus mainly on quarterly goals rather than the long term as they are allowed to sell the stocks after exercising their options. By focusing on quarterly performance, managers could boost the stock price and avail higher personal profits on their subsequent sale of stock. Managers may also sell their shares as soon as they are high, leading people to think that they lack confidence in their own operations. This may adversely affect share price. Share options also increase the risk of EPS dilution from an increase in shares outstanding. Managers may often ‘window dress’ financial statements as the company must be seen to perform well in order to improve share valuations. They may report inaccurate information, especially if their short-term rewards outweigh their long term ones such as pensions. It also encourages shareholder approval, and so would lead to less difficult AGM’s. Many managers may hide the true value of assets in order to hide the losses they incurred while buying them. Window dressing also involves managers presenting statistics such that they highlight the perceivably best bits about the company’s performance and avoid emphasis on the worst aspects of the previous year’s business. Other common practices of this include disguising liquidity problems and fraudulent representation of liabilities. This gross misrepresentation of debts has been seen with Enron in the US, where $billions of long-term liabilities were hidden off the balance sheet. Its executive Jeffery Skiller, initiated the use of mark to market accounting, while hoping to meet Wall Street expectations. Enron ultimately became bankrupt while its shareholders suffered huge losses. Despite having model board of directors and a talented audit committee, Enron’s managers were able to make it attract large sums of capital to fund a questionable business model and hype its stock to unsustainable levels. Worldcom, a telecommunications company in the US, inflated profits by disguising expenses as investment in assets and inflated revenues with bogus accounting entries from corporate, unallocated revenue accounts. In mid 2000, its stock price began to decline and CEO Bernard Ebbers persuaded WorldComà ¢â‚¬â„¢s board of directors to provide him corporate loans and guarantees of over $400 million to cover his margin calls on Worldcom stock. The board had hoped that the loans would avert the need for Ebbers to sell the substantial amounts of WorldCom stock that he owned, as this would have further reduced the stock's price. However, the company ultimately went bankrupt and Ebbers was ousted as CEO in April 2002. The shareholders suffered massive losses as they watched World Com’s stock price plummet from $60 to less than 20 cents. Thus, we can see that while there is room for managers to indulge in personal wealth maximization, it is quite difficult to do so. Usually, the solutions tend to be adequate enough to correct the conflicts, and restrict manager’s discretion.