Dessisons Thesis Statement Essay Example for Free

Dessisons Thesis Statement Essay One of the 6 decisions is friends. Friends can help you graduate from high school as well as prevent you from graduating as well. It could be just as bad having no friends as having the wrong kind of friends. Three reasons are you if you have smart and good friends you have a much higher chance of graduating, if you have bad friends that are always getting in trouble then you have a low chance of graduating or being successful in life, the last reason is having no friends could be as bad as having the wrong friends. If you have smart friend’s chances are you will do better in school and be successful in life. One reason is your friend won’t call you asking you to come to a party or go to the mall when you need to study because you most likely will be studying too. Another reason is they will get you into good habits like studying instead of bad habit like drugs and skipping school. The last reason is there might be a little friendly competition between you and your friends about grades and test scores. Those are three reasons why having smart friends can help you graduate and be successful in life. If you have bad friends that always get in trouble and do bad stuff then chances are you will do the same and do poorly in school and not graduate. One reason is they get you into bad Habits such as drugs, partying, and skipping school. Another reason is they will call you and tell you to come to a party while you’re trying to study and if you don’t go then they might make fun of you. The final reason is they will want you to skip school which will mean missed assignments which will make your grades go down which will make you do poorly in school and maybe not graduate. Those are three reasons why having bad friends who get in trouble can prevent you from doing well in school. If you have no friends it could be just as bad as friends that get in trouble. One reason is other kids might bully you which could make yourself esteem go way down which might make you care less about school. Another reason if you need help with homework you won’t have any friends to call for help. The final reason is if you’re having family problems you won’t have someone to talk to and help you get passed it and focus on school some again. Those are the three reasons why having no friends could be as bad as having fiends that get in trouble. Those are the three main reasons why friends can help you or prevent you from graduating high school and be successful in life. So make the choice keep partying and sliding by in school or have smart friends and fly right through school and graduate and have a successful life and provide your kids with a good life as well. You can do well in school and still have fun because your parents might give you more responsibility and let you do what you want more. So the best choice is have good, smart friends. But it’s your choice.

Accounting Report Essay -- GCSE Business Marketing Coursework

Accounting Report Anyone considering accounting needs to assess whether this career fits his or her interests, abilities, and aspirations. There are certain qualities and qualifications, however, that a person should consider before making a commitment to a particular career field. Selecting a career can take a lot of time, and many people do not choose until they are adults. Contributing to the difficulty in choosing a career is the vast number of vocations from which to choose. The field of accounting alone covers dozens of types of accountants and dozens of jobs. In trying to decide whether accounting is an appropriate career choice, a person should talk with bookkeepers and accountants that have years of experience. Ask questions about their daily work requirements, their likes and dislikes about accounting, and how they became interested in the profession. Questions such as these can give a person insight into the profession and help in considering accounting as a career. Accounting is a system used to provide financial information about a business or person. Accountants prepare and analyze financial records for individuals, companies, governments, or other organizations. Accounting is a basic need for every business, and the term business has been broadened to mean any operation that deals with money. That includes families and corporations, and also schools, theaters, art galleries, charitable organizations, and even some private persons. People sometimes call accounting â€Å"the language of business† because accounting data are used to detail firms activities. Accounting tells the history of a business or person in numbers. Over one million people are employed as accountants, and most can be found in private business and industry. â€Å"Nearly 40 percent of all accountants are certified, and about 10 percent are self-employed’(Caruna, 1). In addition to openings resulting from growth, the need to replace accountants who retire or transfer to other occupations will produce thousands of job opening annually in this large occupation. The Occupational Outlook Handbook states that the expansion of accountants is related to: â€Å"increasingly complex taxation, growth in both the size and the number of business corporations required to release financial reports to stockholders, a more general use of accounting in the management of business, and outsourcing of a... ...anning and control. â€Å"Other examples of consulting projects of CPA firms are: advising and developing a system for a stock exchange, assisting a new integrated financial management system for New York City, and helping several major railroads with resource planning† (Rosenthal, 22). A career in management consulting offers the opportunity to work with a company’s executives in applying the concepts of modern management and information technology. The final level of entry into public accounting is entrepreneurial services. In the book Careers in Accounting, it says that working in the entrepreneurial field â€Å"is a fast-growing and dynamic area that has been formed in most large firms in the last few years† (5). The person working in this area deals with the special requirements of a startup or growing company. Professionals in this group are involved in counseling and advising the emerging or middle-market company that may lack the resources to successfully handle planning, cost control, attracting capital, going public, or choosing the right information system or compensation plan. Audit, tax, and management consulting skills are all used to fill the needs of an emerging business.

Debt Policy at Ust Inc.

Executive Summary Holding nearly 80% of the market share in the smokeless tobacco industry, UST Inc. has been generating large and stable income. However, the leading company in a certain industry tends to react slowly to market share erosion by competing firms and lack of creativity in the introduction of new product, a situation UST Inc. is now undergoing. Concerning the declining sales growth and gradual loss of the market share, UST Inc. is now considering recapitalizing by issuing debt amounts to $1 billion.By recapitalizing, it can create a total $380 million interest tax shield to add up firm value and, at the same time, make shareholders better off by using the proceeds from the issuance of debt to buyback outstanding shares. Although declining sales growth and litigation problem might be hidden concerns for UST Inc. , after some analysis about the attributes of the company such as business risk, capital structure as well as payout policy, I still believe that UST Inc. s head ing toward the right direction. And we can also observe that, after the adjustment of capital structure, its traditional dividend payout policy will not be hampered in the near future. Analysis of Business Risks (from bondholder’s viewpoint) Bondholders only care about the ability of the company to make interest payments and whether they can get the face value when the bond matures. Therefore, we have to consider the factors that contribute to the amount and stability of future EBIT.In the situation of UST, several factors have more of an impact on the company’s business risk, such as sales growth, competition faced owing to other competitors’ erosion into their market share and the effect of litigation problem and government regulations. Since the smokeless tobacco are considered less harmful to health and increased prevalence of smoking bans, demand of smokeless tobacco has undergone a continued growth, which would contribute good prospect to UST since its pro ducts strategy focus primarily on smokeless tobacco.However, as a dominant player in the industry, UST seems to be less creative on the introduction of new product and react too slowly to other competitors’ erosion into their market share. So far, UST has been increasing the price of their product as a way to boost their annual earning, which gives other players a perfect chance to gain some market share by using price value strategy. Despite the steady decline of market share might turn into future concern for UST, it still holds 77% of the market share. Besides, UST has started to make effort in new product development and renew their marketing and promotion strategy.On the other hand, although litigation and legislation problems have impacts on sales of UST, these problems has been there for a long time, which means that it shouldn’t create new turbulence on the prospect of UST. To conclude, the attributes of UST are steadily growing EBIT(approximately 9% compounded ), dominant market share in the industry. Therefore, although there are some disadvantages toward their future earning power, such as increasing competition and litigation problems, bondholders shouldn’t care too much on them since the interest expense is still a minor portion of the total EBIT.The Timing of Recapitalization It is publicly known that, through leverage, companies can lower their WACC and receive benefit from interest tax shield in order to boost their firm value. This is exactly what UST Inc. is doing right now. By issuing debt and use the fund to buy back outstanding shares, it is boosting their stock price higher. I reckon that the reason they choose to do so at this specific time is because the company has been facing more and more vigorous competition these years and undergoing declining rate of sales growth.By adopting leverage recapitalization, UST can still make the stockholder better off even its sales growth is not high enough. Besides, UST’s d ebt to asset ratio is currently at a low level compare to other competitors in the industry. Therefore, they can adopt the recapitalization strategy without worrying too much about the default risk problem. Capital Structure after the Recapitalization From the pro forma income statement (exhibit 1) in the appendix, we can see that even if the bond is issued at a rating of BBB (higher cost of debt), the EBIT/interest coverage ratio is still 10. 21, which shows that UST as sufficient amount of EBIT to make the interest payments. And the marginal effect on UST’s firm value would be the total debt ($1 billion) multiplied by the corporate tax rate (38%), which is $380 million. Dividend Payout Policy From Exhibit 2, we can observe that, under current condition, the payout ratio is around 63%, which is the percentage UST has long been paying out in the past. Therefore, it is safe to draw the conclusion that the recapitalization will not hamper future dividend payment under current c ondition. However, we are not sure whether the market share and the growth of sales will continue to drop.If they do, it will become more and more difficult for UST to stick to their traditional â€Å"pleasing† payout policy. Likely, we are not sure whether the litigation problem will be more of a concern for UST in the future. Ultimately, despite the fact that the opponents’ erosion into UST’s market share and litigation problem are both hidden concerns, it takes time for both problems to pose a threat to UST’s traditional payout policy. Appendix Exhibit 1 Pro Forma Income Statement Exhibit 2 Dividend Calculation after the Buyback Program Corporate Finance Case Study Assignment Debt Policy at UST Inc. Debt Policy at Ust Inc. Executive Summary As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1. 6% over past 7 years.In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion restrictions. The increasing business risks force management of UST to consider a recapitalization plan in which UST borrows up to $1 billion to repurchase its stocks. The marginal effect of the recapitalization will be a $380 million increase in fi rm value, which is the present value of interest tax shield. Besides the recapitalization benefit, management also needs to notice the costs of recapitalization, which include higher bankruptcy costs and a potential of lower credit rating.UST has a high and constant dividend payout history since 1912. The recapitalization will expose more risks to shareholders since revenues will be used to pay interest before pay dividends. Thus, the recapitalization may hamper future dividend payments. Background Having long been the leading company in the moist smokeless tobacco industry, UST Inc. was famous for its product innovation, dominate market share, and pricing adjusting power. However, as the competition of the moist smokeless tobacco industry became more intense and the legislative environment became more unfavorable, UST is facing several business risks: . Lose of market share. Relying on its superior products and innovation ability, UST used to control most of the moist smokeless tob acco market and was able to increase the price of its products year by year without losing its customers. The historical pricing flexibility gave UST a robust earning performance and bumped up its stock prices. However, as the speed of product innovation became slower, UST is facing the threat of price-value competitors, who enter the market by charging a lower price. Although later UTS responded to the threat by introducing new products, the company’s market share still dropped from 86. % in 1991 to 77. 2% in 1998. 2. Increase exposure to legislative environment. Moist smokeless tobacco manufactures used to face fewer lawsuits than cigarette manufactures due to less scientific evidence liking smokeless tobacco to cancer. However, the legislative environment has become more unfavorable to smokeless tobacco manufactures since the industry has agreed on a ban on advertising in order to settle state Medicaid lawsuit. Also, UST was the only main manufacturer that signed an agreem ent on promotion restrictions that aim to reduce youth exposure.Recapitalization UST has been widely known for its conservative debt policy, which allows the company to generate high returns with very low financial leverage. However, as business risks such as market share erosion and unfavorable legislation exposure increase, UST has an incentive to change its capital structure in order to benefit from interest tax shield and maximize the firm value. Recapitalization will also benefit shareholders in a way of higher company stock price since the proceeds from debt will be used to repurchase outstanding stocks.Also, although UST has a very high gross profit margin and return on assets on its core business compared to other smokeless tobacco manufactures, the poor performance of its non-core operations such as market wine and premium cigars give UST a low to zero profit contribution. UST’s management needs to diversify its product line and bump up earnings by investing more in the non-core operations using debt funds. Marginal Effect of Recapitalization To analysis if UST should undertake the $1 million recapitalization, management needs to calculate the value of the firm before and after ecapitalization. In a market with taxation, the value of the levered firm equals to the value of the unlevered firm plus the present value of interest tax shield. Because management assumes that the new debt is constant and perpetual, the present value of interest tax shield equals to the amount of debt multiplied by the effective tax rate, which is 38%. Thus, the present value of UST’s future tax saving should be 38% * $ 1 billion, which is $380 million. At the end of 1998, the market equity of UST was $6,470. 8 million based on the average shares outstanding and year-end stock price.If UST borrows $1 billion debt immediately, the total value of the levered firm would be $6,470. 8 million unlevered value plus $380 million tax shield, which is $6,850. 8 million. B ecause firm value will rise to $6,850. 8 million immediately after the recapitalization announcement, original shareholders will capture the full benefit of interest tax shield since they are able to sell their stocks at a higher price. The new stock price is determined by dividing the value of the levered firm by the number of shares outstanding at the end of 1998.Since there were 185, 516,055 shares outstanding at year end 1998, the new stock price after the announcement of recapitalization would be $6,850. 8 million divided by 185, 516,055, which is $36. 93. Compared to the original stock price of $34. 88, each pre-existing shareholder will benefit $2. 05 from the increase in leverage. If taxation is the only issue that management should take into consideration, the marginal effect of raising debt will be increase in company value by $380 million.However, as financial leverage increases, default risk on debt also increases, thus leads to a potential increase in bankruptcy costs. UST has been maintained an A-1 credit for its low debt / capital ratio of 28. 2%, which is a competitive advantage over its competitors who are highly leveraged. If UST decides to increase its leverage ratio, it will cause rating agencies to revalue its capital structure and cash flow generating ability in order to assign an appropriate rating.The potential change in rating will significantly affect UST’s cost of capital. Thus, management should balance the tax benefit with the expected cost of bankruptcy to maximize form value. Besides its conservative debt policy, UST was also famous for its stable and constant dividend payout since 1912. The recapitalization may hamper future dividend payments since earnings should be used to pay off debt and interest expense before they are delivered as dividends to stockholders.Because debt is risk-free and debt holders have first claim on a company’s asset, levered equity often carries a higher risk premium than unlevered equity to compensate stockholders. The remaining balance of earnings after paying interest may also be retained for operating purpose. Thus, the possibility of an interruption of cash dividends payout may occur. Summary In summary, facing the increase business risks of losing market share and exposing to unfavorable legislations, the management of UST Inc. s considering changing the company’s capital structure by raising $1 billion debt and accelerating its stock buyback program. The benefit of recapitalization will be an increase in firm value of $380 million and increase in stock price by $2. 05 each share. However, management should also take into consideration the potential increase in bankruptcy costs and changes in credit rating. Last, the constant divided payout may be hampered by recapitalization since earnings need to be used to pay interest to debt holders first.

Ways to achieve financial goals - Free Essay Example

Sample details Pages: 11 Words: 3218 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Level High school Did you like this example? 3.0 Ways to Achieve Financial Goals 3.0.1 Part-Time Job Since we are having negative value for net worth, we can do some part time job while we are still studying in Utar. There are a number of restaurants, Cafe, and some other shops around Kampar area are recruiting part-time workers. That is a good opportunity for us to apply for a part-time job there. Besides, we can become a tuition teacher who guides primary and/or secondary school students in their studies. By becoming a tuition teacher, we can contribute our knowledge to this society at the same time gaining experiences as well as extra income. In order to become tuition teacher, we can apply for it in Kamparà ¢Ã¢â€š ¬Ã¢â€ž ¢s tuition centre. Not only that, we can utilize our skills in musical instruments and open music class to those who are interested. Many students who pursuing their studies in Kampar think that Kampar is a small town which lack of entertainment centre and some of them might not have idea on how to spend their free time in a beneficiary way. Regarding this, music class might attractive to some of them. By doing part-time job, we will have a more stable cash flow. By having stable cash flow, it takes lesser time for us to pay off our debts and reduce our financial stress after we graduate from Utar. (Greaves, n.d.). Moreover, we will get the network opportunities if we do some part-time job. Part-time job enables us to develop network connections. We can meet a reference, great friend, connection or even obtain full-time job after we graduate from Utar if we able to perform well when we are still a part-time worker. (Greaves, n.d.). Apart from that, we may enjoy employee benefits by committing ourselves as a part-time worker. Even if we are not eligible for full health benefits, we might obtain the privilege of perks or staff discounts. Other staff benefits include food, discounted tickets, merchandise and etc. (Greaves, n.d.). Different working pla ce offers different staff benefits. We can also do some research regarding the staff benefits offered by different shops or companies before we apply for a part-time job position. In addition, we will be able to gain more working experience by having part-time job. As many of the employers concern about our working experience before we get employed, the working experience as part-time worker enable us to stay higher chance to get a full-time job after we graduate. Speci ¬Ãƒâ€šÃ‚ cally, it has been proven that practical skills, communication skills, team building skills and customer care can be developed through taking on part-time job (Lucas and Lammont, 1998). Watts and Pickering (2000) found that part time job leads to improvement in personal transferable skills, employability, and increase in con ¬Ãƒâ€šÃ‚ dence level. 3.0.2 Scholarship and PTPTN Repayment Exemption Since we can obtain scholarship or even exempt from PTPTN loan repayment if our academic result meets the required level, we should study smart all the time in order to achieve excellent result. If we able to exempt from PTPTN, we can achieve our financial goal in a shorter time. To become a first class honour, we should study hard, but more important is study smart. A well-organized time management is needed. We should have a schedule that suitable to us and follow it all the time. As a university student, self-learning is important. However, in some cases, we need to be assisted or guided by our lecturers or tutors. Not to feel ashamed to ask questions is a key point to gain more knowledge. To become a first class honour, one must do what others not willing to do. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s not just about spending time in studies, healthy life style need to be developed. Scholarship is a very good source of financial support since we are using othersà ¢Ã¢â€š ¬Ã¢â€ž ¢ money and we donà ¢Ã¢â€š ¬Ã¢â€ž ¢t need to use our savings in some of the expenses. Other than usi ng the funds to pay tuition fees, we can also utilize the funds in other expenses, such as paying rental fees, buying foods and purchasing books. By having scholarship or exemption of PTPTN repayment, our resume will be more outstanding. When our academic achievement has been recognized, we stay a high chance to be shortlisted for interview session. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s not easy to obtain a satisfying job, however, if we have plenty of qualifications and achievements, it will be much easier for us to get our dream job. 3.0.3 Employee Provident Fund (EPF) In Malaysia, Employee Provident Fund (EPF) is a compulsory savings scheme. In Malay term, EPF is known as KWSP or Kumpulan Wang Simpanan Pekerja. Every wage earner in Malaysia who has reached the age of sixteen and obtain a job under contract must register and own the Employee Provident Fund account. Since all companies are legally required to offer workplace insurance as well as monthly retirement fund contribution to the ir full-time staffs, EPF is a significant criterion that needs to be considered when we are offered a job. We should contribute to the Employee Provident Fund (EPF) before starting our first job. Conventionally, employers are responsible for their staffsà ¢Ã¢â€š ¬Ã¢â€ž ¢ EPF registration but at the present time new applicants are required to register the account individually. To prevent unnecessary hassle, the EPF account should be registered before our new job starts. EPF provides some benefits to its member, including retirement benefit, incapacitation and death benefits, dividend, and tax exemption. It is a significant tool for our retirement planning. EPF ensures a favourable growth in our money due to the tax free interest as well as the maturity. In long term, the accumulated funds help us to achieve our retirement goal. In addition, EPF able to help us to fulfil other goals or provide financing for us in case we are in need of funds urgently. EPF delivers benefit for p atients who are going to have major surgical operation in hospital. The benefit also applicable to those who suffering from the following diseases: paralysis, TB, cancer, leprosy, heart ailment, or mental derangement. Patients are allowed to withdraw six times of their wages or the entire contribution made till date, whichever is less. The funds are applicable for treatment of the EPF member or his/her family member. In addition, EPF provides many other benefits. To those who are physically handicapped due to natural disasters, they can make use of the funds to purchase equipment. EPF member can also have a facility of putting forward family members to obtain funds after he/she demise. EPF holder needs to mindful that withdrawing EPF after changing job is legal only whilst he/she is jobless for two months or above. (Solanki, 2012) Apart from that, EPF member can withdraw funds from the EPF account for construction of house, maintenance or repair service or for repayment of housin g loan. For all the benefits mentioned, organization has specified some conditions that need to be followed. If the EPF member given a housing loan and hope to repay, then he/she can make use of up to thirty-six months salary from his/her EPF balance in case the EPF member has completed the service for ten years. Likewise, EPF members are allowed to withdraw up to twelve months salary (only once) if their existing house is subjected to maintenance or repairing. For this five years of service (ten years for repairing) should have completed.The number of years of services decreases to five years if EPF member hope to purchase or build anew plot or house. The EPF holder can withdraw up to thirty-six months wages (twenty-four months for plot) but it can only be withdrawn once. It is very nice that the house can be in the name of the EPF memberà ¢Ã¢â€š ¬Ã¢â€ž ¢s spouse or in joint-ownership. (Solanki, 2012) Moreover, EPF can also help us to achieve other goals, such as marriage, fina ncial needs for education for ourselves, any sibling or child. If we have to assemble funds for any of the goals stated above, we can withdraw funds from our EPF account up to fifty percent of our contribution. In addition to this, we can enjoy this benefit up to three times in our life. (Solanki, 2012) Furthermore, insurance benefit can be obtained through EPF. In accordance with Employee Deposit Linked Insurance (EDLI) scheme, any institution that do not provide group insurance scheme for their employees has to contribute .5% of monthly basic pay as premium for the life insurance cover. Presently, the amount of insurance cover is higher of the two: twenty times the average salary of the past twelve months or the full amount in the PF account up to forty percent of the balance amount. For those who are working in small enterprises, the funds are more than enough for them to support the family survival. (Solanki, 2012) 3.0.4 Fixed Deposit Fixed deposit also known as term de posit or time deposit. It is a safety approach to gain more interest or return. That is because the principal and interest accrued is protected by PIDM. Normally, the tenure of the fixed deposit is ranging from 1month to 60 months. Depositors who place their funds in this account cannot withdraw it within the tenure. If not, the bank will impose the penalty on the depositors which will lead the depositors to loss the interest earned (Banks, n.d.). According to the information provided by Maybank and Public Bank, depositors is required to place a minimum of RM 5000 for 1-month fixed deposit. For the tenure that is 2-months and above, minimum of RM 1000 in fixed deposit account is required. There are plenty of benefits by placing money into the fixed deposit account. First of all, the interest rate earn on this account will be higher than a normal saving account. The interest rate will be higher when the tenure is getting longer. According to the Maybank Fixed Deposit Account, thei r interest range is from 3% up to 3.5% per annum. While the interest rate of a saving account only offer about 2.1%. Another way to get higher interest rate return is to open a joint venture account with parents (or transfer funds to their account) who are at least 49 years old and above. Then, apply for the fixed deposit account trough this joint venture account (or their account). This is because banks will provide higher interest rate for those senior savers. So, we may get a larger amount of interest earn. Besides that, fixed deposit account is completely risk free because our funds are protected from interest rate fluctuation, the interest earn is fixed on a certain rate when we are entering into this account (Gilani, n.d.). So, it is a safer investment and easy to set up compare to stocks, mutual funds or property. According to Mkumar, the fixed deposit account can be pledge and get a loan at lower interest rate. That is because the banks belief the depositor who has str ong base of investment. So, they are easier to get a loan with lower interest rate. This may help us to reduce the interest rate payment in the future when we apply for a hire purchase or a housing loan. 3.0.5 Setting Up an Online Business Nowadays, it is very easy for a person to set up an online business. Many students and housewife are selling products through social media, for example, Facebook, We Chat and Line. The products that are selling online normally included clothes, shoes, bags, purse, jewellery, and baby accessories. Before setting up an online business, we need to find the suppliers that can give us good quality products with reasonable price. When we are selling the products with good quality at reasonable price, our customer base definitely will become larger. The main benefit of online business is it can save our money and time (Mior111, 2008). An online business just needs to start by having a laptop or pad with internet access. We can share the photo of the product along with its characteristics trough social media easily. We can promote our product by clicking on the laptop and no need to distribute the flyer or brochure door to door. Advertising the products online not just cost and time effective, it allow us to reach more customer in different geographical area (Henderson, n.d.). Besides, the working time of online business is flexible (Mior111, 2008). We can manage our business after class or during break, at the campus, hostel or cafÃÆ' ©. We can work at anytime and anyplace with internet access. We do not need to rent a stall to sell our product. So, online business is more suitable for a student than having a stall. Moreover, we may earn more than a part timer, if we manage our business very well. The money that we earn not just depends on the cost of the product, but also depends on how much effort we putting on it. The more effort we put, the more we may earn. According to an example in the Facebooker, as a succ ess online business person, she may earn more than thousand per month. While a part timer salary is about RM 400 per month in Kampar area. So, this is a better way if we do not want to work as a part timer. 3.0.6 Invest in Bond or Stock i) Bond According to Investopedia and Investor Words, bond or debt is an investment that the investor loan their money to the company or government for a fixed period of time and in return with a fixed interest rate. The interest payment also called coupon payment, usually paid in semi-annually. The participants in bond market included company, municipality, state, local and foreign government. These participants may use this bond to finance their activities as well as their projects. There are varieties of bonds available, such as corporate bond, municipal bond, Treasury bond, note, and bill. The maturity of a bond is depending on the type of bond. Normally, corporate and municipal bond will have 3-10 years maturity, while Treasury bill wil l have 90-days maturity. Basically, invest in bond will be safer than invest in shares. This is because bond will pay a fixed return every six months while share only pay dividend when the company make a profit. Besides, bondholder has the right to claim their money back prior to shareholder when bankruptcy happens (Sifma, n.d.). So, the principal of the bondholder is safe. But before investing in the bond, we must examine that the bond is not junk bond, because this bond will make us to loss money instead of earning profit (Investopedia Staff, n.d.). Moreover, invest in bond is better than just saving the money in a saving account. Bond will give a higher interest return than a saving account. So, it is better for us to allocate some of our money into the bond when the money is not being use in that period of time. Without posing too much risk, it will gain a high return compare to save in the bank (Investopedia Staff, n.d.). ii) Stock The holder of stock or equity is r epresenting an ownership to the company. They have the right to claim on the assets and profits of the company. We can either choose to invest in common stock or preferred stock. Preferred stockholder has the priority to claim on the assets and profits, but has no voting right. While common stock has the right to vote at the meeting. Common shareholder will claim after the preferred shareholder when the company going bankrupt (Investopedia, n.d.). Normally they claim nothing because all the assets or money are claimed by bondholders and creditors (Learning Bonds, n.d.). Stock does not promise about the returns, it is solely depend on the growth of the company and the stock price (Investopedia Staff, n.d.). If the company make a loss during that period, common shareholder may not receive any dividend. But if the company performing very well, shareholder may gain a lot of bonus or dividend compare to invest in bond (Learning Bonds, n.d.). The bonus can in term of cash or free share s (Holyguy, 2011). So, the best way to gain more profit to achieve our financial goals, we should invest in both bond and stock market. This is because we can diversify our investment by allocating some to bond market to ensure a fixed return while allocating some to share market to gain a higher return (Investopedia Staff, n.d.). Diversification helps us to spread all the risk by investing in different market. Hence, we are not just focus on a single investment (Learning Market, n.d.). So, anything happen, we may not loss all the money. References Banks. (n.d.). Advantages and Disadvantages of Term Deposits. Retrieved 13 July, 2014, from https://www.banks.com.au/news/advantages-and-disadvantages-of-term-deposits/ Barron,P., Anastasiadou,C. (2009). Student part-time employment : Implications, challenges and opportunities for higher education. International Journal of Contemporary Hospitality Management, 21(2), 140-153. EPF Benefits As An EPF Member KWSP. (n.d.). R etrieved from https://www.kwsp.gov.my/portal/en/members/member-responsibility/registration/benefits-as-an-epf-member Gilani, N. (n.d.). The Advantages of Fixed Deposits. Retrieved 13 July, 2014, from https://bizfluent.com/info-8454481-advantages-disadvantages-fixed-deposits.html Greaves,M. (n.d.). 6 Benefits Of Having A Part-Time Job At School | TalentEgg Career Incubator. Retrieved from https://talentegg.ca/incubator/2013/08/26/6-benefits-of-a-having-a-part-time-job-at-school/ Henderson, K.J. (n.d.). Advantage of Using the Internet for Business. Retrieved 14 July, 2014 from https://smallbusiness.chron.com/advantages-using-internet- business-320.html Holyguy. (2011). Advantages and Disadvantages of Investing in Shares. Retrieved 13July, 2014, from https://holyguy.hubpages.com/hub/advantages-and- disadvantages-of-investing-in-shares Investopedia. (n.d.). Bond. Retrieved 13July, 2014, from https://www.investopedia.com/terms/b/bond.asp Investopedia. (n.d.). Stock . Retrieved 13July, 2014, from https://www.investo pedia.com/terms/s/stock.asp Investopedia Staff. (n.d.). The Advantages of Bond. Retrieved 13July, 2014, from https://www.investopedia.com/articles/00/111500.asp Investopedia Staff. (n.d.). What are The Advantages and Disadvantages of Buying Stocks Instead of Bonds. Retrieved 13July, 2014, from https://www.investopedia.com/ask/answers/124.asp Investor Words. (n.d.). Bond. Retrieved 13July, 2014, from https://www.investorwords.com/521/bond.html Learning Markets. (n.d.). Benefits of Investing in the Stock Market. Retrieved 13July, 2014, from https://www.learningmarkets.com/benefits-of-investing-in-the-stock-market/Sifma. (n.d.). Types of Bonds. Retrieved 13July, 2014, from https://www.investinginbonds.com/learnmore.asp?catid=5subcatid=19id=1 91 Lucas, R. and Lammont, N. (1998), à ¢Ã¢â€š ¬Ã…“Combining work and study: an empirical study of full time students in school college and universityà ¢Ã¢â€š ¬Ã‚ , Journa l of Education and Work, Vol. 11 No. 1,pp. 41-56. Solanki,J. (2012). The various benefits of your Employee Provident Fund Moneycontrol.com. Retrieved from https://www.moneycontrol.com/news/investing/the-various-benefitsyour-employee-provident-fund_775030.html Maybank. (2014). Fixed Deposit Account. Retrieved 13 July, 2014, fromhttps://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?c hannelId=ACC-AccountscntTypeId=0cntKey=ACC03.01programId= ACC03-FixedDepositAccountschCatId=/mbb/Personal/ACC-Accounts Mior111. (2008). 5Advantages of Online Business vs Offline Business. Retrieved 14 July, 2014 from https://webcache.googleusercontent.com/search?q=cache:https://webonline.com.my/news/2008/07/5-advantages-of-online-business-vs- offline-business/ Mkumar. (2013). Benefits of Fixed Deposits. Retrieved 13 July, 2014, from https://forums.bankbazaar.com/discussion/285/benefits-of-fixed-deposits Public Bank. (2014). PLUS Fixed Deposit Account. Retrieved 13 July, 2014, from https://www.pbebank.com/Personal-Banking/Banking/Deposit/Fixed-Deposit- Acounts/PLUS-Fixed-Deposit-Account.aspx Watts, C. and Pickering, A. (2000), à ¢Ã¢â€š ¬Ã…“Pay and you learn: student employment and academic progressà ¢Ã¢â€š ¬Ã‚ , Education and Training, Vol. 42 No. 3, pp. 129-35 Don’t waste time! Our writers will create an original "Ways to achieve financial goals" essay for you Create order