Discuss the arguments for and against a critically charged and politically involved Public Sociology - Free Essay Example

Sample details Pages: 8 Words: 2331 Downloads: 10 Date added: 2017/06/26 Category Politics Essay Type Case study Did you like this example? It may be argued that sociology is of activist origins, propelled by a desire to comprehend, diagnose and ultimately administer solutions to societal ailments. However, with the advent of scientific discourse, especially the rise of so-called hard sciences, the discipline has been absorbed into the pedagogic realm of social-science which seeks to emulate its empirical cousin and take residence within the ivory tower of academia, virtuous in its efforts to seek objectivism, value-freedom and political abstinence. The purpose of this essay is to explore the proposition that sociology should reclaim its identity, expanding its imagination (Mills 1959) as a politically engaged agent tasked with improving society through a critical dialogue with various institutions and actors. Don’t waste time! Our writers will create an original "Discuss the arguments for and against a critically charged and politically involved Public Sociology" essay for you Create order This essay will consider the contention offered by some of sociologys founding fathers, particularly Marx and Engels (1848) and Durkheim (1972), that sociology should be at the vanguard of social engagement and change à ¢Ã¢â€š ¬Ã¢â‚¬Å" a citadel of moral and intellectual purity, a philosopher king (Plato 1993: 109). By extension, this essay will include a critique of the academic milieu in which sociology resides, addressing the dispute that it has become colonised and thus compromised by wider market and political forces and thus incapable of functioning as an independent agent of knowledge and change. The proposition of a Public Sociology is not a recent phenomenon. In fact, the founding progenitors envisaged a discipline actively engaged with the political milieu and public lifeworld. Indeed, Durkheim (1972), conceiving of a social world underpinned by tangible laws à ¢Ã¢â€š ¬Ã¢â‚¬Å" reiterating Comtes (1988: 33) science of society predicted that sociologists would become ai des-de-camp to the state, revered intellects who would influence policy and legislature. By contrast, Marx and Engels (1848) were interested in the dissemination of knowledge to the grass-roots or proletariat to reawaken their collective consciousness and engender a rebellious will-to-power (Nietzsche 2014) against the prevailing capitalist system. Importantly, despite its definition, sociology was less interested in the comprehension of social life per se: rather it was obsessed with the noxious configurations that comprised society, mournful of the crippling and incarcerating effects these had on humanitys potential and species-being (Marx and Engels 1991). This remains a dominating theme within sociology today: the field of critical theory has almost reached a level of theoretical saturation (Bryman 2004:544) inasmuch as abuses against civilisation on grounds of (for example) gender, class, race and creed have been researched and articulated repeatedly in pedagogic discourse, si mply restructured in linguistic hyperbole to pass as authentic. By contrast, Weber (1989) was concerned with maintaining abstinence from the political arena, endorsing scientific mastery and the conduct of research for its own virtue i.e. as a vocation (78); sociology held no greater esteem over the value-laden judgements of social-political discourse and must thereforelimit public discussion to the classrooms. The debate regarding sociologys public face was again revitalised by Mills (1959) who, acknowledging a gross depreciation in the social lifeworld, offered a critical assessment of his field, which had abandoned its public calling, instead becoming captivated by the power and prestige (including resources) offered by academia. The discipline had succumbed to institutionalisation, a servant of the university and its preoccupation with quantifiable (profitable) results, professionalism and its self-image as a reputable organisation. By extension, as a business, academia pande red to powerful organisations (purse holders) like the state and private shareholders; exploration was only authorised and noteworthy if it aligned with the demands and/or values of a minority who possess the architectural means of production (Zsolnai and Gasparski 2002). Also, Parker and Jary (1995) allude to the notion that sociology is subject to the McUniversity, whereby the fixation of budgets, time restraints and production of (quantifiable) articles, books and graduates has a detrimental effect on the vibrancy and eclecticism of its sociological imagination (Mills 1959), thereby crippling any possibility for politicking à ¢Ã¢â€š ¬Ã¢â‚¬Å" scientific absence is the prevailing episteme or ideology (Gouldner 1971). Thus, sociology is not only accused of abandonment but also of participating in a form of symbolic violence inasmuch as it retains potentially empowering or life-giving knowledge, which it retrieves from an ailing world, to secure its own somewhat tentative (albeit pr ofitable) status as a soft ad-hoc science. As Luck (2007) ably posits, this negative label cast on the back of sociology is based on not so much its actions but failing to act (140). In addition, Gouldner (1971) had contended that, awkwardly aware of it betrayal and desperately seeking to generate a credible facade, sociology provides lip-service or commiseration and an imitated gesture of desire for social change. Yet some have argued that sociology has required time to solidify itself and create a scholarly community based not only on substantive research but also camaraderie, interdependency and trust (Adair-Toteff 1995) from which a new breed of intellect could arise, unfettered by self-interest, and rather concerned with improving society and seeking to reinvigorate and enhance its intellectual flare through public engagement. As Marx and Engels (1848: 3) asserted: philosophers have interpreted the world [à ¢Ã¢â€š ¬Ã‚ ¦] the point however is to change it!. Therefore, sociol ogy should be less concerned with holding onto the tailcoats of so-called hard sciences, and focus on harnessing its own methodology to irradiate, disseminate and help transform the social milieu à ¢Ã¢â€š ¬Ã¢â‚¬Å" to become a participatory agent in the (re)creation of society. Indeed, the political life of Boudieu (1993) is often regarded as a prime example of the kinds of dirty work sociologists should be engaged in; having witnessed the venomous social disparities of a failing and unjust French society, he took to the streets in numerous political protests. This constitutes a form of academic bricolage (Hebdige 1988) whereby normative procedures and forms of professionalism prolific within the pedagogic milieu designed to confine scholars to specific predefined scripts of conduct are broken or otherwise inverted. His actions as a scholarly activist serve as a template for todays sociologists; a reminded of their role involves dirty work or aligning themselves with ordinary peop le in a bid to better understand social angsts à ¢Ã¢â€š ¬Ã¢â‚¬Å" thereby enhancing epistemologies and methodologies à ¢Ã¢â€š ¬Ã¢â‚¬Å" and subsequently improve society. As a result, Bourdieu (1993) suggested that, only through public engagement could sociology develop an augmented, rich and powerful knowledge-base, otherwise it would simply be masquerading as a social-scientific field. Thus, Chomsky and Otero (2004) denote that we must fashion a more reflexive sociology (third-order understanding) à ¢Ã¢â€š ¬Ã¢â‚¬Å" to analyse and remodify the pedagogic habitus à ¢Ã¢â€š ¬Ã¢â‚¬Å" capable of comprehending often subtle and taken-for-granted interconnections, like the asymmetrical interplay of power, capital and playing fields within academia, that affect and hinder the discipline. Sociology must be aware of its own metaphorical blind spot its arrogances and handicaps à ¢Ã¢â€š ¬Ã¢â‚¬Å" and critically engage in reciprocated policing within its various subfields and other interdepe ndent social-sciences. As Bourdieu (1988) advocated, being self-critical will facilitate a comfortability in ones own skin and ultimately strengthen the fields core. Indeed, as Murji (2007) argues, sociology remains a host to external asymmetries such that a white middle-class male continues to demarcate the archetypal modern-day sociologist. In a similar vein, as Ossewaarde (2007) alludes, sociological productions are overwhelmingly driven by and imbued with Westernised ideals, values and perspectives, specifically those fashioned in the United States: this is obviously indicative of wider societal inequalities that belittle or otherwise disadvantage other countries not befitting first-world status. Also, as Parenti (1995) suggests, the types of research revered most are typically those aligned with empiricism (e.g. statistics, quantification, reports) and policy-centred. As a result, somewhat idealistically, Burawoy (2005) advocates an academic revolution within sociology to gener ate a more equitable playing field. Despite the criticism inferred on sociology, concerning its diminished public identity and seeing it as a hotbed of malignance, many have come to its defence. For example, Hossfeld and Nyden (2005) have contended that an ASA Task Force has been created to reclaim sociological presence within the political, offering incentives and promotional positions to eligible scholars interested in disseminating the sociological imagination to wider audiences. Also, Kalleberg (2005) recognises the existing efforts made to produce jargon-free literature and broadcasts that pertain to parochial as well as (inter)national issues. Similarly, as Skeggs and Deem (2003) note, especially following the cultural turn, face-to-face and in-depth engagements with the public, including those disadvantaged groups such as women, the working-class and ethnic minorities, have intensified with the rise of qualitative methodologies. Hence, there remains active engagement and p articipation by sociologists with extra-academic cohorts, alluding to the fact that sociology can synthesise professionalism with public involvement; a by-product of this is the emancipatory and empowering effects such engagements can generate. However, proclaiming that sociologists should uproot and become heretical scholars is a monumental ask; one that threatens their very ontological wellbeing i.e. their reputation, financial security, friendships and way of life could be jeopardised in the process of transgression à ¢Ã¢â€š ¬Ã¢â‚¬Å" one might even envisage a social death for those daring to try (Shilling 2003). By extension, such an act would invariably compromise the already fragile reputation of sociology; opening its doors to the public would risk its credibility and entice the stigmatised label (Goffman 1990) of just another fanatical ism to be discarded alongside the other failed idealistic enterprises, such as Marxism and Feminism (Brady 2004). In addition, given the f act that sociology is inhabited by a diverse and deeply opinionated cohort of intellects who occupy a range of paradigms, it is unlikely that (in the near future anyway) such individuals will collectively march in unison under the banner of a Public Sociology. Yet it might be plausible for sociology to formulate a democratically charged governing body that could represent the standpoints of a majority force; elected representatives may perhaps serve as champions charged with proliferating ideas and findings and leaving society to decide what, if anything, should be done with them. That said, Nielson (2004) makes the important point that there is a massive incongruence between the ideal and somewhat advanced heuristic devices and ideas generated within the pedagogic milieu and the realities of the social lifeworld; the latter remains a comparatively primitive figuration of ideologies and values incapable or unready to assimilate the ideas of the former. The mind is a cursed thing, it permits us to envisage infinitely wonderful (utopian) worlds where societal processes operate as a beautiful symphony unchecked by toxic social phenomena, histories, idiosyncrasies and other variants that make reality a constant work-in-progress of ebbs and flows, of civility and barbarism, of progress and regression (Parenti 1995). As a result, in true Weberian tradition, Nielson (2004) contends that sociology has no superior right of way (33) in public-political affairs. Instead, we should concern ourselves with aiding the present or aligning ourselves with the spirit of the times (zeitgeist). In the end, the question of sociologys public identity continues to be a hotly debated concept, its actual realisation requires a level of faith and risk and remains (in large) something to behold. This essay has sought to detail the various arguments for and against a politically engaged Public Sociology a controversy that has reigned since the subjects inception and one that continues in a somewhat recurring pattern throughout its development. Indeed, as sociology becomes increasingly self-reflexive and more substantiated in its understanding of social processes, the urge for argumentation regarding its identity and role within society becomes greater. As this essay shows, there is certainly a moral imperative or compulsion within sociology to irradiate asymmetrical discourses that cripple humanitys potential and subsequently assist in emancipating ourselves from them; this urge is expected given that we are sentient and empathic beings. However, this essay has also acknowledged the possible detriment that may befall sociology in such a venture. Moreover, we have explored the various external forces that contribute to the overall condition of the sociological paradigm; the discipline is imprinted with numerous inequalities and is persuaded greatly by market and political demands to the disadvantage of forming a Public Sociology. Finally, the issue of individual differences, whilst not extensively explored, will remain a long-lasting dilemma as we attempt to reconcile our differences, and harness our collective research and experiences to develop a legitimate and democratically-orientated discipline suitably equipped, confident and competent in participating within wider society. Bibliography Adair-Toteff, C. 1995. Ferdinand Tonnies: Utopian Visionary. Sociological Theory. Vol. 13, No. 1, pp. 58-65. Bourdieu, P. 1993. The field of cultural reproduction. Polity: Cambridge. Bourdieu, P. 1988. Homo Academicus. Polity: Cambridge. Brady, D. 2004. Why public sociology may fail. Social Forces. Vol. 82, No.4 pp. 1629-1638. Bryman, A. 2004. Social Research Methods. 2ND Edition. Oxford University Press: Oxford. Burawoy, M. 2005. The return of the repressed: recovering the public face of U.S. Sociology, One hundred years on. ANNALS. Vol 600, No. 1, pp. 68-85. Chomsky, N. Otero, C. 2004. Language and Politics. AK Press: London. Comte, A. 1988. Introduction to Positive Philosophy. Oxford University Press: Oxford. Durkheim, E. 1972. Emile Durkheim: Selected Writings, ed and trans. Giddens, A. Cambridge University Press. Goffman, I. 1990. Stigma: Notes on the Management of Spoiled Identity. Penguin Press Gouldner, A. 1971. The coming crisis of Western Soc iology. Heinemann: London. Hebdige, D. 1988. Subculture: the meaning of style. London: Routledge. Hossfeld,L. Nyden, P. 2005. Public Sociology: Research, Action, and Change. Sage Publications: London. Kalleberg, R. 2005. What is Public Sociology? Why and how should it be made stronger? The British Journal of Sociology. Vol. 56, No. 3, pp. 387-393. Luck, P. 2007. Sociology as a practice in humanity: Noam Chomsky, Howard Zinn, and Social Responsibility. Critical Sociology. Vol. 33, No. 5-6, pp. 937-956. Marx. K. Engels, F. 1991. The German Ideology. Lawrence and Wishart: London. Marx. K. Engels, F. 1848. The Communist Manifesto. Penguin Books: London Mills, C. 1959. The Sociological Imagination. Oxford University Press: New York. Murji, K. 2007. Sociological Engagements: Institutional Racism and Beyond. Sociology. Vol. 41, No. 5, pp. 843-855. Nielson, F. 2004. The vacant we: remarks on public sociology. Social Forces. Vol. 82, No.4, pp. 1619-1628. Nietzsc he, F. 2014. Beyond good and evil. Penguin Press. Ossewaarde, M. 2007. Sociology Back to the Publics. Sociology. Vol. 4, No. 5, pp. 799-812. Parenti, M. 1995. Against Empire. San Francisco: City Lights. Parker, M. Jary, D. 1995. The McUniversity: Organisation, management and academic subjectivity. Organisation. Vol. 2, No. 2, pp. 118-319. Plato. 1993. Republic. Oxford University Press: Oxford. Shilling, C. 2003. The body and social theory. 2nd edition. Sage Publications: London. Skeggs, B. Deem, R. 2003. Feminist research methods. Sage Publications: London. Weber, M. 1989. Science as a Vocation. Unwin Hyman: London. Zsolnai, L. Gasparski, W. 2002. Ethics and the future of capitalism, praxeology: The international annual of practical philosophy and methodology. Transaction Publishers: London.

Hidden Meanings Within Shakespeare s Midsummer Night s...

Helena: Hidden Meanings within Her Words. In many of Shakespeare’s literary works one can find multiple themes that reflect or question our reality. He accomplishes this by using figurative language such as metaphors and similes. Shakespeare’s Midsummer Night’s Dream encompasses many themes and apply them to certain characters or through communication between multiple characters. Helena portrays themes of love, betrayal, jealousy, and gender norms in Midsummer Night’s Dream presenting them through her speech and behavior. She depicts the challenges of a woman and also the flaws of human nature. In Act 2 scene 1 and Act 3 scene 2 Helena uses a metaphor twice which emulates these themes presenting us a broader understanding of her representation within the play and the play as a whole. Following are lines from Helena. Act II.1 HELENA â€Å"I am your spaniel, and Demetrius. Line 204 The more you beat me, I will fawn on you. Use me but as your spaniel - spurn me, strike me, Neglect me, lose me; only give me leave Unworthy as I am to fallow you.† Occurring in Act 2 scene 1, Helena informs Demetrius of Hermia and Lysander’s plans to run away together in hopes of winning Demetrius’s heart. After hearing about their plan, Demetrius is determined to stop Hermia and pursues after her into the woods. Helena isn’t far behind and tries to reason with Demetrius. Once again she expresses her love for him and even offers him to do anythingShow MoreRelatedWilliam Shakespeare s A Midsummer Night s Dream904 Words   |  4 Pagesbecome lost within, or use as an escape from the binds of society. In A Midsummer Night s Dream, the scenes that take place in the woods are full of enchantment and mystery, but Shakespeare also uses the word wood in several very unique and distinct ways. The term is associated with several meanings and Shakespeare uses these differently throughout the play. The purpose of this essay is not to focus on the wood as a setting in the play, but how Shakespeare plays with the various meanings of w ord woodRead MoreWhy Did Freud Use Oedipis As Basis?1355 Words   |  6 PagesSHAKESPEARES PLAY-FREUD WHY DID FREUD USE OEDIPIS AS BASIS!! HAMLET Freudian theories are most prominent in Hamlet out of all Shakespeare’s plays. The most common repressed desire is that of Oedipus. In the myth Oedipus killed his father, and went on to marry his mother, without knowing who each of them were. In this myth the feelings are brought to light however in Hamlet they stay repressed. We only learn of it through the effects it causes. Hamlet is all about incest. After his father’s deathRead MoreWilliam Shakespeare s Sonnets : The Greatest Of All Love Poems1465 Words   |  6 Pagescome. â€Å"Shakespeare has completely dominated the English-speaking state over the last four hundred years.† When thinking of Shakespeare, his famous plays such Hamlet and Romeo and Juliet are usually the first to come to mind. However, very few people realize he was also one of the most significant writers of all time. â€Å"He [Shakespeare] was the most admired writer in the country by the time he was thirty and the owner of the grandest house in Stratford three years later† (Ashton 6). â€Å"Shakespeare livedRead MoreAnalysis Of Harold Pinter s The Lover2155 Words   |  9 Pages META-DRAMA IN HAROLD PINTER S THE LOVER (1962) AND ALFRED FARAG S GAWAZ ALA WARAQET TALAQ (MARRIAGE ON A DIVORCE CONTRACT) (1973) The main aim of this paper is to study the concept of meta-drama in Harold Pinter s The Lover (1962) and Alfred Farag s Gawz Ala Waraqet Talaq (Marriage on A Divorce Contract) (1973). This paper will first examine the apparent reality of each play as a whole. This picture will be mainly based on the impressions, or prejudices, which the audience carriesRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesbuilt-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Kim S. Cameron UNIVERSITY OF MICHIGAN Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore

Relevancy of Artificial Intelligence in the Age of Humanity Sample

Questions: 1.What is Artificial Intelligence2.To explore the Positive Negative factors that will affect Humanity after the Adoption of Artificial Intelligence. Answers: Introduction The replacement of the humans by the artificial intelligence is one of the major concerns in the present age. The artificial intelligence has taken over the spheres of modern world and it is dominating the various sectors. The use of machines and the diminishing of the use of human labor have affected the world economy. This situation as adversely affected the workplace operations (Ritchie et al., 2013). Viewing it from other perspective, the emergence of the artificial intelligence weapons has stalled the outpour of the human emotions. Herein, the humanitarian age attains an interrogative parameter. This research speculates the relevancy of artificial intelligence from the perspective of humanity (Bryman, 2015). The arbitrary interview between two people from the education and engineering sector will be discussed but before that a brief session of discussion on the impact of this phenomenon will be explained in the context of social issues. Discussion In this part of the essay a brief session will be conducted on explaining the issues of artificial intelligence and its effects on humanity and other fields that it has made an impact on. At first, the idea of artificial intelligence and its relevance has to be discussed. 1.Artificial Intelligence Artificial Intelligence is a very recent concept that has taken over the modern world and its inhabitants. It is actually something that is governed or dominated by the machines. The use of machines has become a very common trait in the recent years. As we know, the people have become busier than before and they have very little time to do their own works by applying effort. They tend to find some alternative medium that would help them to do their works in shorter amount of time and with a lesser effort (Denscombe, 2014). The machines are the only medium that could provide them with those advantages. Science and technology has advanced so far in this era that nothing seems to be impossible now (Monette, Sullivan DeJong, 2013). Machines have reduced the tasks of human beings and they are believed to take over the next generation world as well as read in the science fiction articles. It is interpreted that machines are able to perform all the cognitive tasks that human beings used to do manually. Machines are even liable to do more tasks in the given time and more swiftly (Punch, 2013). The working fields of the Artificial Intelligence are the works done through computers and computerized robots. Different Aspects of Artificial Intelligence Artificial intelligence has a large impact on the modern society. There have been various philosophies on the topic that are developed to cater to the machinery devices. Everyone knows that a human being can think and work rationally. Human beings can think with emotions and work with keeping various things in minds. It was thought that machines also can do the same works in little time but they must develop emotions and rational thinking powers (Frankish Ramsey, 2014). This thought gave the rise to invent machines with same intelligence level as human beings included. The aim behind inventing AI is to create expert systems that can act, demonstrate, to create human intelligence in the machines which would help the machines to think and act like the human beings (Cohen Feigenbaum, 2014). AI is basically a trait of science and technology that includes subjects like Computer Science, Psychology, Mathematics, Sociology, Philosophy and Biology. These traits are involved with human intelligence such as reasoning and solving problems. There are various applications of AI where one needs to focus on. These zones are gaming, natural language processing, expert systems and vision systems, speech recognition, handwriting recognition and making intelligent robots. Figure name: Artificial Intelligence Source: (Neuman Robson, 2012). 2.Impacts of Artificial Intelligence Impact on jobs Artificial intelligence has left a deep and long lasting impression on the society in different aspects. It may have shed its influence on the work culture but its impact on jobs and employment is something of great concern (Sarason, 2013). The most striking aspect of AI is to felt in the loss of jobs and a good amount of reduction in employment sectors. The probable sectors that would include in the reduction of jobs are likely to be the business services that deal with works like spotting of customer bases, its effects on the organizations, finding suitable job profiles for future employment, sales and marketing and many others. Many people will lose their jobs as there will be no need of human beings to operate the machines because the machines are going to be automatically driven. A machine can do similar works as can be performed by multiple men. It is better to invest on a machine than multiple men to get the desired outcomes. The jobs of the drivers will be affected as well be cause the new types of cars and trucks will be developed in such a manner that drivers will no longer be needed to drive the trucks (Ashrafian, Darzi Athanasiou, 2015). The jobs in manufacturing companies, insurance companies and stock trading companies might also face employment reductions. It is very apparent that introduction of AI will have large effects on jobs (Banks Zeitlyn, 2015). It is an interesting matter to note that that the impact of the AI is not going to be only the negative ones. It may have some positive points also. The companies and the organizations can rise to a higher position after a good amount of growth because of the fast improvement in various fields. The companies can use certain technologies and implement them to get faster results. Impact on Education Grading and taking tests on larger courses and making preparations for the examinations are one of the most important works of education sector (Hovy, Navigli Ponzetto, 2013). These works are generally done by the teachers. Human effort is necessary for this. The recent rise of AI has put doubts over the need of human effort in grading tasks. These things can be performed by the machines while teachers can focus more on the in-class activities and interacting more with the students. Another important impact of AI can be implication of various software applications in educational institutions. Students can be groomed by installing the software applications and they can be learnt many things by responding to the needs of the student, emphasizing on certain tough topics, repeating the topics that the student is yet to learn properly. AI has an added advantage of pointing out the areas where the learning courses should improve and the lacking of the students. There can be developed some online tutoring programs that will help the students understand the problems more and solve them. Indirect Impact on Military There have been many video games in the past that have shown many operations with weapons to capture a land or making them free for the security of the people. This can be turned into a reality if AI can be implemented in the security systems of a country. The military force and the commercial robots can be mixed to undertake various missions. It is a matter of thinking that machines are superior in some cases but in these cases where it requires judgment and knowledge, human beings only should be allowed to combat as the frontline involves uncertainty at every step. Another important aspect is that military systems may tend to incorporate autonomous weapon systems in their forces but it is still a concern that if these autonomous weapons can be relied on in case they are fire weapons. Improvement in Quality of Living The consequences of a implementing AI may have some positive effects. The robots may be useful for the home makers. The robots will be able to do the household works and they can do the works in very little time. They can very easily do all the hard tasks in the house and the members of the house can have some relief as they will get some space and time for spending more time in the house with other members. They will be able to lead a better and healthy life. The good points of AI will come to effect in these points. The home makers do not have to do all the things alone as the machines would do it for them. Different machines would do different tasks relieving the human beings. In the above points various matters have been discussed. In the case of impact of Artistic Intelligence, the cons of the matter are discussed as many people will lose their jobs and it will be very bad for the humanity. Jobless people will fill the planet and there will be severe consequences in the economy of the big countries. This may lead to draughts and homelessness and deaths. The introduction of AI in the military system can also prove to be fatal as it is still on an experimental basis. The security of a country cannot be compromised with anything. There are some pros as well because it will have a positive impact on the education system, helping the students to improve their skills. The lifestyle will be improved as well if it is implemented. Interview The following is an excerpt from the interview between student and an engineer, which enlivens the relevance of artificial intelligence in an age, where humanity is gradually becoming obsolete (Neuman Robson, 2012). In this part, an imaginary interview is going to be conducted for a thorough understanding of the entire matter. The two persons in the interview, the engineer and the student will have a discussion between them about the new things that are going to be introduced because of the introduction of the Artistic Intelligence. Student: Hello sir. Engineer: Hello. Student: Sir, what do you think of the performance of humans in the present age? Engineer (laughing): Performance of the humans! Now, it is the age of the machines. Student: Yes sir, I know but to operate the machines also we need the labors. .Engineer: You seem to be intelligent. Student: Thank you sir. Sir, nowadays, I have heard that there is a new concept called artificial intelligence. Can you enlighten me a little about it? Engineer: Sure. Student: Begin sir, I am all ears. Engineer: I will begin from the root level so that you can grasp the whole concept easily. Student: Yes sir that will be fine. Engineer: You are aware of the aspect of intellect. Student: Yes sir. When the teachers ask us questions, we try to answer it intellectually. Student: Can we substitute the artificial intelligence concept with the robots? Engineer: Well, yes, to some extent. This concept has become utmost importance in the workplace for carrying out the tasks in a modern way. You will be surprised; there are artificial intelligence weapons, which have brought efficiency in the business activities of the companies and organizations (Sarantakos, 2012). Student: Is it? Engineer: Yes. Due to the achievement of success through the artificial intelligence, the companies are now planning to boycott the human talents. Student: This issue questions the intellectual application of the employees to execute the roles and responsibilities allocated to them. Engineer: No. Student: Why? Engineer: I counter your interrogative perspective with the information that when there will be no recruitment, how can the individual talents can go unnoticed and unrecognized (Sarason, 2013). Student: Counter arguing your point, effective utilization of the devices by the staffs of the companies and organizations would substitute the functionality of the artificial intelligence weapons. What are your opinions? Engineer: You are right, but if there are no recruitments, there is no question of staffs and there is no question of their utilization of the devices. Another thing, which will surprise you, is that the scope and arena of this artificial intelligence is so widespread, that there will be no offices in the near future (Banks Zeitlyn, 2015). Student: (speechless) Engineer: There is more for you. The artificial intelligence weapons will create employment opportunities, which will benefit you. Student: Really? Engineer: Yes. To give you an example, by 2016, 21jobs have witnessed the presence of robots instead of staffs for carrying out the workplace operations. Engineer: Look, the robots with modern inbuilt features would automatically perform the operations. This will reduce the stress of the manual labor. Rather, it will nullify the need for labors. Student: Then, will the individual talents of the employees take a backseat? What will happen to the hard efforts put in by the employees for earning their daily bread? Engineer: Do you read newspapers? Student: Well, regularly. However, sometimes, I hardly get time, as there is pressure of projects and assignments. Student: Countering your argument, robots can be placed ahead of the humans, as they possess intellect, which is artificially created and manufactured. Engineer: You have grasped the subject. With this observation of yours, I think your rational application in terms of humanity is very strong and flexible. Student: Thank you sir, we have to make intellectual observations in the projects and assignments that we are allocated. Engineer: How? Student: We are so foolish, we have come a long way through our discussion and we have not introduced ourselves. Engineer: The issue of our discussion is so intensified that it contradicts the limitations in our existence and humanity. The robots have taken over our existence, which has and is gradually fading away our existence (Ingrand Ghallab, 2014). Student: This is one of the major concerns in the present age. In order to mitigate the intensity of this concern, I now feel that this artificial intelligence is needed. Engineer: Yes. This test helps the scientists to track the performance of the robots. In addition, do you know, where will this concept show its charisma? Student: Where, sir? Engineer: You will be surprised to know that the artificial intelligence weapons find its applicability in the automotive industry, especially in the aircrafts and cars (Ingrand Ghallab, 2014). Student: Please specify it to me sir. Engineer: Nowadays automatic technology is being installed in the cars and planes, which nullifies the need of the pilots and drivers. Student: What are you saying? Engineer: Yes, the scope and area of this technology is so widespread and advanced, that the cars and planes will run on their own (Ashrafian, Darzi Athanasiou, 2015). Student: What about accidents in the highways? Engineer: The design of the cars and planes are created I such a way that it will automatically stop before the accident-prone zone (Frankish Ramsey, 2014). Student: Indeed, it is very advanced. I lose in terms of the widespread charisma of science. What are the other applications of this wonder? Engineer: The artificial intelligence will also sow its wonder I the field of education. Student: You have told about this once, but I want to hear about it more. Student: Really? Engineer: Do not be disheartened. Debates and plans are on regarding the extension of the durability of the technology of artificial intelligence. Student: Sir, please look into the matter with due consideration. Engineer: Ok, let me divert you with some more interesting points about this technology. Student: Yes, sir. Engineer: As per the propositions of an article, several learning materials are to be introduced, which makes the learning process easier for the students like you (Sarantakos, 2012). Student: Really? Engineer: Yes. With the help of this technology, the students can establish contacts with their teachers through the means of video calling for solving their doubts regarding the execution of the assignments and projects. Along with this, they can participate in the global classrooms (Hovy, Navigli Ponzetto, 2013). Student: So many benefits! Engineer: Yes, dear, if you can make effective and judicious utilization of this technology, then you will find a modern touch to your lives (Bond Gasser, 2014). Student: Thank o so much sir, for your precious time. Engineer: Pleasure. Conclusion This research emerges successful in providing an insight into the widespread utilization of artificial intelligence technology. The conversation between a student and an engineer enlivens its usage in diversified fields. The reference to the newspaper and website articles acts as a typical example of what the companies and organizations are doing for adopting this technology. Rather, it reflects the approach towards the technology, which has reduced the individual efforts largely. In view of all the points put forward, stance can be taken in favor of relevancy of the artificial intelligence in the age of humanity. References Ashrafian, H., Darzi, A., Athanasiou, T. (2015). A novel modification of the Turing test for artificial intelligence and robotics in healthcare.The International Journal of Medical Robotics and Computer Assisted Surgery,11(1), 38-43. Banks, M., Zeitlyn, D. (2015).Visual methods in social research. Sage. Bond, A. H., Gasser, L. (Eds.). (2014).Readings in distributed artificial intelligence. Morgan Kaufmann. Brodie, M. L., Mylopoulos, J., Schmidt, J. W. (Eds.). (2012).On conceptual modelling: Perspectives from artificial intelligence, databases, and programming languages. Springer Science Business Media. Bryman, A. (2015).Social research methods. Oxford university press. Cohen, P. R., Feigenbaum, E. A. (Eds.). (2014).The handbook of artificial intelligence(Vol. 3). Butterworth-Heinemann. De Vaus, D. (2013).Surveys in social research. Routledge. Denscombe, M. (2014).The good research guide: for small-scale social research projects. McGraw-Hill Education (UK). Frankish, K., Ramsey, W. M. (Eds.). (2014).The Cambridge handbook of artificial intelligence. Cambridge University Press. Ghahramani, Z. (2015). Probabilistic machine learning and artificial intelligence.Nature,521(7553), 452-459. Hovy, E., Navigli, R., Ponzetto, S. P. (2013). Collaboratively built semi-structured content and Artificial Intelligence: The story so far.Artificial Intelligence,194, 2-27. Ingrand, F., Ghallab, M. (2014). Robotics and artificial intelligence: A perspective on deliberation functions.AI Communications,27(1), 63-80. Michalski, R. S., Carbonell, J. G., Mitchell, T. M. (Eds.). (2013).Machine learning: An artificial intelligence approach. Springer Science Business Media. Monette, D. R., Sullivan, T. J., DeJong, C. R. (2013).Applied social research: A tool for the human services. Cengage Learning. Neuman, W. L., Robson, K. (2012). Basics of social research: Qualitative and quantitative approaches. Nilsson, N. J. (2014).Principles of artificial intelligence. Morgan Kaufmann. Punch, K. F. (2013).Introduction to social research: Quantitative and qualitative approaches. Sage. Ritchie, J., Lewis, J., Nicholls, C. M., Ormston, R. (Eds.). (2013).Qualitative research practice: A guide for social science students and researchers. Sage. Sarantakos, S. (2012).Social research. Palgrave Macmillan. Sarason, I. G. (Ed.). (2013).Social support: Theory, research and applications(Vol. 24). Springer Science Business Media. Wenger, E. (2014).Artificial intelligence and tutoring systems: computational and cognitive approaches to the communication o

The Loewen Group Inc. was founded in 1969. The com Essay Example For Students

The Loewen Group Inc. was founded in 1969. The com Essay pany has two major headquarters in North America, one in Burnaby, British Colombia and a second in Cincinnati, Ohio. Loewen Group Inc. (L.G.I.) is the largest funeral services enterprise in Canada and is the second largest company in the North American Funeral Services Industry. L.G.I. owns 918 funeral homes and 269 cemeteries and also engages in the pre-need selling of funeral services including cemetery and cremation services. The company strives on respecting its Eagle Principle, which is displayed on the first page of its 1995 Annual Report:To soar to heights of possibilities one needs two equally healthy, strong wings one being that of people or service concerns, the other that of responsible planning and fiscal management. It is the balance of these wings that enables the eagle to soar beyond all heights1 In 1995, the company defended itself against two major lawsuits, as well as continued to negotiate acquisition agreements. The Loewen Group Inc. stresses that once an acquisi tion has been completed, local management is encouraged to remain and offers long term contracts to its key employees, rarely dismissing the other employees. L.G.I. provides many services to its acquired companies including offering training to new employees on its management information systems and covering costs for any renovations which are needed on the acquired locations. Each funeral home and cemetery is operated as a distinct profit centre, with monthly and annual financial performance monitored by regional and corporate management in accordance with budgeted projections. This report includes a study of The Canadian Funeral Services Industry practices, a review of the take-over attempt by Service Corporation International, an analysis of the Loewen Group Inc. 1995 Annual Report for the period ending December 31, 1995, and examination of the revenue recognition practices used by L.G.I.. We will write a custom essay on The Loewen Group Inc. was founded in 1969. The com specifically for you for only $16.38 $13.9/page Order now The Funeral Services IndustryAccording to a paper issued in August 1995, by Statistics Canadas Services, Science and technology Division Final Purchase, Growing Demand: The Canadian Funeral Services Industry, the funeral services industry, in comparison to other industries, has historically been considered a low risk industry. The Funeral service industry is not significantly affected by economic cycles. The stability of the industry is increased by future demographic trends. Individuals from the baby boomer generation are now entering their fifties and the death rate is growing slowly at 1.5% per year, compounded, as demonstrated in Appendix A: Deaths, Actual and Projected. The industry is characterised by above-average profitability and revenue growth. Public Health issues and consumer protection issues are primarily regulated at the provincial level of government. These regulations are implemented to protect the dignity of the deceased as well as his or her estate. These regulations are described in detail in the revenue recognition section. Loewen Group Inc. StrategiesThe Provident America Corporation lawsuit was settled in February, 1995 for US $19 million. On November 2nd, 1995, a jury in Jackson, Mississippi, awarded US $500 million in Breach-of-contract lawsuit brought by Gulf National. This amount is almost twenty-six times high than what was originally asked for. In order to appeal, Loewen was required to post a US $625 million bond, which was later reduced to US $125 million with the condition that there would be no significant change in assets or increases in dividends without prior notification to the court and the other party. No provision on was made on the financial statement at this point since the result was hard to predict on the appeal. On January 29th, 1996, Loewen settled the lawsuit for US $175 million and recorded US $135 million, present value of $175 million. Loewen decided to settle because of two reasons: the first is that the appeal would have a financial impact on the companys income and the se cond reason is that prolonging the lawsuits would create uncertainty and speculation amongst the companys shareholders. S.C.I. Take-over AttemptOn September 17, 1996 Service Corporation International (S.C.I.), the largest Funeral Service Company in the world, placed a $ 2.5. billion take-over bid for Loewen Group Inc. The bids share value is equivalent to US $ 43 each. Houston based S.C.I.s bid was considered to be fair by many analysts like Todd Richter of Dean Witter Reynolds Inc. (New York) and Ivar Leipens of Moss, Lawson ; Co. (Toronto). Another analyst, Dean Martin of TD securities Inc. (Toronto), stated that the bid was too low and that the a bid of US $ 50 would be fair. He noted that Chairman Ray Loewen and his management team retain 20 % (15 % + 5 % respectively) of the companys stock. Canadian institutional holders of the companys stock would be more likely to support the company because they must follow constraints such as a cap of 20 % on foreign holdings in regards to Canadian Pension funds. Therefore S.C.I. will has had a difficult time gaining the support of 75 % of Loewen Group Inc. s hareholders needed as per the Canadian securities law. In the week following the announcement of the take-over bid, the fourth largest company in the industry, Equity Corp. International, based in Lufkin, Texas had contacted the Federal Trade Commission in regards to how to become eligible to bid for divested properties if the take-over took place. Equity Corp. International is 40 % owned by Service Corp. International. Another company, Continua LLC, offered Loewen Group Inc. $ 500 million in exchange for some of Loewens southern US holdings. On September 27, 1996 the State of Florida launched an antitrust probe into the take-over bid. The state was worried about the impact it would have on Medicare issues, pricing and other areas. S.C.I. would raise the bid to US $ 45 per share before Loewen rejected the bid on October 10, 1996, while at the same time launching an antitrust lawsuit against S.C.I. and Equity Corp. International. The lawsuit accused the two companies of conspiring to eliminate L.G.I. from the industry. All companies in the Funeral Service Industry are continuing to reposition themselves as the industry continues to expand. If successful, S.C.I. would be able to monopolise the North American market. S.C.I.s take-over proposal is intended to eliminate the competition in North America. S.C.I. wanted to buy cheap after the one time event with the jury. By taking over Loewen, S.C.I. would become the preferred buyer in the industry. Loewen rejected their offer because of the following reasons:1) inadequate proposal which has a potential anti-competition effect in thecommonwealth of the industry. 2) Although both companies encourage the integration of new acquisitions in their structures, Loewen felt that its structure would not be preserved. 3) Loewen is considered as the preferred acquirer in the industry after the acquisition of two of its key assets: Prime Succession, and Ross Hill Memorial Park, two major cemeteries in the United States of America. Loewen decided that it is best to continue implementing the companys long term business plan as an independent company. Loewen has created a good corporate culture and has a record for caring for its employees, customers, and communities it serves. Annual Report AnalysisThe Loewen Group Incorporated 1995 Annual Report covers the period beginning January 1, 1994 and ending December 31st, 1995. This analysis will cover the following items: the report to the companys shareholders, the Striking a Balance section of the report and the operational highlights. The operational highlights analysis will include Managements Statement of Responsibility, the Auditors report to the Shareholders, a ratio analysis of the financial statements disclosed in the report as well as the pertinence of the notes regarding the financial statements. .u3a70c5644e75a15198bfda4fe930caef , .u3a70c5644e75a15198bfda4fe930caef .postImageUrl , .u3a70c5644e75a15198bfda4fe930caef .centered-text-area { min-height: 80px; position: relative; } .u3a70c5644e75a15198bfda4fe930caef , .u3a70c5644e75a15198bfda4fe930caef:hover , .u3a70c5644e75a15198bfda4fe930caef:visited , .u3a70c5644e75a15198bfda4fe930caef:active { border:0!important; } .u3a70c5644e75a15198bfda4fe930caef .clearfix:after { content: ""; display: table; clear: both; } .u3a70c5644e75a15198bfda4fe930caef { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u3a70c5644e75a15198bfda4fe930caef:active , .u3a70c5644e75a15198bfda4fe930caef:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u3a70c5644e75a15198bfda4fe930caef .centered-text-area { width: 100%; position: relative ; } .u3a70c5644e75a15198bfda4fe930caef .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u3a70c5644e75a15198bfda4fe930caef .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u3a70c5644e75a15198bfda4fe930caef .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u3a70c5644e75a15198bfda4fe930caef:hover .ctaButton { background-color: #34495E!important; } .u3a70c5644e75a15198bfda4fe930caef .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u3a70c5644e75a15198bfda4fe930caef .u3a70c5644e75a15198bfda4fe930caef-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u3a70c5644e75a15198bfda4fe930caef:after { content: ""; display: block; clear: both; } READ: When The Legends Die (769 words) EssayThe annual report stresses the companys belief in its Eagle Principle. In the report to the companys shareholders, The chairman and chief executive officer, Ray Loewen stresses that the company showed outstanding growth despite the inflicting costs associated with the two major lawsuits it dealt with. He thanked the shareholders for their support, then stated promising figures that were overshadowed by the above for mentioned events. He continued with the aspect of growth by discussing the companys acquisitions. Mr. Loewen concluded by promising to continue to uphold the companys standards in 1996. The Striking a Balance section of the annual reports purpose is to provide answers from management and executive members about questions shareholders might have about the Loewen Group Inc. beliefs, operations and structure. The topics ranged from the effect of the Gulf National lawsuit to how the services provided by Loewen benefit the communities it serves. This section does not disclose monetary figures, its responsibility lies in creating or restoring the trust of its potential shareholders and current shareholders before they analyse the financial statements in the following section of the annual report, by demonstrating the personal accountability of its staff . Operational HighlightsThe managements statement of responsibility states that management has presented fairly the financial position of the company while respecting the generally accepted accounting principles in Canada. Management also states that it maintains its control systems to assure that also transactions are com pleted and recorded properly. The letter conclusion indicates that the auditors selected are independent. The auditors report to the shareholders notes that the audits made by KPMG Peat Marwick Thorne (independent auditors) were based on the generally accepted auditing standards and summarises its criterion: finding evidence of amounts and disclosure policies and the manner in which the company adopted the generally accepted accounting principles. The auditors concluded upon the completion of the audits that the information provided in the consolidated financial statements to be presented fairly because the company applied generally accepted accounting principles consistently. Ratio Analysis of Financial StatementsAll ratios presented show 1995 in the first column and 1994 in the second column. As shown with the return on equity ratio. The dollar figures in the annual report are in American currency. Performance Ratios19951994Return on equity(76684)/614682 = (0.125)38494/411139 = 0.094Return on equity based on the Scott formula (Please refer to Appendix E: for complete figures)ROE=SR*AT+ ROA-IN *D/E1995(0.125) = (0.011) * 0.265+(0.003) 0.043 * 2.68219940.094= 0.146* 0.315+0.046- 0.025 * 2.226In 1995, $50 million of cash and 1.5 million Common shares are paid off to Gulf National. The settlement decreases Loewens 1995 net income and retained earnings while increasing their owners equity. Therefore the shareholders lost 12.5 % on their initial investment, compared to a gain of 9.4 % in 1994. Return on equity, calculated without the lawsuit settlement, shows a smaller decrease of 7.8 % from the previous year. This is primarily due to the increase in share capital of $210 million made by the company to cover the debts incurred through the litigation proceedings. Based on the Scott formula results, the decrease on the return on equity ratio was caused by a loss on overall operating return before interest cost and a high leverage return. Return on assets(72949)/2262980 = (0.032)95113/1326275 = 0.0717Total assets increased by 70.6 % however, the costs associated with the legal settlements ($165 million) resulted in a net loss. These occurrences resulted in a negative return on assets. The negative return on assets normally indicates trouble in ability to pay interests. Only $53 million of $165 million was paid in cash and the remainder was recorded as a long term liability without interest. We can also relate these figures to the decrease in credit ratings of Loewen Group Inc. by the following credit facilities: Duff Phelps Credit Rating, Standard Poors Rating Group and Moodys Investor Services as stated in the Current Credit Facilities and Credit Ratings section of the 1995 annual report.Sales return(76684)/599939 = (0.128)38494/417328 = 0.092In 1994, 9.2 % of all revenues ended up as profit, while in 1995, 12.8 % of all revenues were recorded as a loss. 0.080If the company would not have had to incur the costs relating to the lawsuit, 8 % of its revenues would have been profit. The costs relating to funeral homes and cemeteries expenditures exceeded the revenues they generated, because their revenues were not considered revenues of L.G.I. until the acquisitions were completed. Gross margin599939-373131/599939 = 0.378417328-258474/417328 = 0.381Average interest rate50913/1648298 = 0.03134203/91536 = 0.037The gross margin and the average interest rate both remained st eady. Cash flow to total assets39454/2262980 = 0.01711649/1326275 = 0.009Cash flow to total assets ratio shows an increase, because the new acquisitions generated more revenues. The majority of the costs related to the Gulf National lawsuit were not included in the ratio, since a large percentage of the costs were recorded as long term liabilities. These liabilities did not involve a cash transaction. Earnings per share(1.690)0.970Book value per share614682000/48167765 = $12.761 per share411139000/41015447 = $10.024 per sharePrice-earning ratio34.380/(1.690) = (20.343)36.750/0.970 = 37.887Dividend payout ratio0.050/(1.69) = (0.030)0.070/0.970 = 0.072Earnings per share shows a large decrease in percentage, since the company issued US $ 210 million dollars worth of new shares. Therefore the dividends were distributed to a larger number of shares. The value of shareholders equity per share increased from US $ 10.02 in 1994 to US $ 12.76 in 1995.The dividend payout ratio decreased becau se earnings per share decreased. The price earning ratio lowered due to the decrease in earnings per share, as well as the current market price per share. Activity RatiosTotal asset turnover599939/2262980 = 0.265417328/1326275 = 0.315The total asset turnover remained steady because of the new acquisitions off balanced the legal settlements and litigation cost. One American dollar of total assets generated US $ 0.27 in 1995, whereas in 1994, it generated US $ 0.32. Inventory turnover373131/27489+19673/2= 15.800210471/19673+15952/2= 11.820Collection ratio115953/599939/365 = 70.50070547/417328/365 = 61.700The inventory turnover was 15.8 times in 1995, an increase from 11.8 times in 1994.In 1995, it took 70.5 days to collect accounts receivables compared to 61.7 days in 1994. This has a negative impact on the companys liquidity. Financing RatiosDebt-equity ratio1648298/614682 = 2.682915136/411139 = 2.200Long-term debt-equity934509/614682 = 1.520516654/411139 = 1.260Debt to assets ratio1648298/2262980 = 0.728915136/1326275 = 0.690The companys reliance on debt increased because the costs it had to incur relating to the Gulf National lawsuit as well as the insurance liabilities incurred created by the two insurance companies it received during the acquisition of S.I. Acquisitions Associates, L.P. Liquidity and Solvency Warning RatioWorking capital ratio191081/241275 = 0.790109868/97665 = 1.125The working capital ratio lowered to 0.790 from 1.125 in 1994. This means that their current liabilities increased at a faster rate than their current assets in 1995. This is cause for concern because ideally this ratio should be at $ 2 of assets to $ 1 of liabilities. .u0b001b40d4c67af4fa9077bddc2a9c46 , .u0b001b40d4c67af4fa9077bddc2a9c46 .postImageUrl , .u0b001b40d4c67af4fa9077bddc2a9c46 .centered-text-area { min-height: 80px; position: relative; } .u0b001b40d4c67af4fa9077bddc2a9c46 , .u0b001b40d4c67af4fa9077bddc2a9c46:hover , .u0b001b40d4c67af4fa9077bddc2a9c46:visited , .u0b001b40d4c67af4fa9077bddc2a9c46:active { border:0!important; } .u0b001b40d4c67af4fa9077bddc2a9c46 .clearfix:after { content: ""; display: table; clear: both; } .u0b001b40d4c67af4fa9077bddc2a9c46 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u0b001b40d4c67af4fa9077bddc2a9c46:active , .u0b001b40d4c67af4fa9077bddc2a9c46:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u0b001b40d4c67af4fa9077bddc2a9c46 .centered-text-area { width: 100%; position: relative ; } .u0b001b40d4c67af4fa9077bddc2a9c46 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u0b001b40d4c67af4fa9077bddc2a9c46 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u0b001b40d4c67af4fa9077bddc2a9c46 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u0b001b40d4c67af4fa9077bddc2a9c46:hover .ctaButton { background-color: #34495E!important; } .u0b001b40d4c67af4fa9077bddc2a9c46 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u0b001b40d4c67af4fa9077bddc2a9c46 .u0b001b40d4c67af4fa9077bddc2a9c46-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u0b001b40d4c67af4fa9077bddc2a9c46:after { content: ""; display: block; clear: both; } READ: Poverty In America EssayAcid test ratio39454+115953/241275 = 0.64415349+70547/97665 = 0.880Interest coverage ratio72949-47178/50913 = 0.50624029+19738/34203 = 1.280Both the acid test ratio and the interest coverage ratio both fell from last year. The acid test ratio decrease was caused by larger increase in liabilities than assets. The interest coverage ratio decreased below to 0.506 which is below the ideal target of 1. The company is not generating sufficient income to cover its obligations as they become due. Revenue RecognitionThis analysis of the revenue recognition practices by Loewen Group Inc. is divided into two sections. The first section will concentrate on revenue recognition practices relating to funeral services and the second section will develop those relating to the cemetery operations of this company. We have included three Appendixes, Appendix B: Average Funeral Costs, Appendix C: Revenue by Source in the Funeral Service Industry and Appendix D: Total Revenue of the Funeral Service Industry by Sector for additional references .Funeral homes offer services, which include everything from the actual service and registration of the death of an individual to the sale of a casket. These services can be purchased at-need, which is considered as a purchase at the time of death, or pre-need, which is a prearranged contract established while the deceased is still living. Provincial regulations in Ontario protect the consumer with respect to pre-need funeral and cemetery services. In general, the regulations require a specific percentage of pre-paid funds to be deposited in trust. Ontario requires 100% deposits in trust on the sale of pre-arranged funeral services. This is required in order to protect the consumer from service non-delivery due to the closure or failure of the firm where they purchased the funeral services. Firms within the province of Ontario can not take the fullest financial advantage of pre-need services due to regulatory restrictions on the funds in question. However the firms still benefit, in that they are gaining control of future market share, and can be certain of future revenue flows. Payments made for pre-need contracts are either placed intrust by the company or are used on behalf of the purchaserof the pre-need contract to pay premiums on life insurance policies under which the company is the designated beneficiary. At the date of performance of a pre-arrangedservice, the company records as a funeral revenue the amount originally trusted or the insurance contract amount,together with all related insurance contract amount, together with all related accrued trust earnings and increased insurance benefits2 Pre-arranged funeral services are included in other assets and amortised over a period of ten years approximating the period the benefits are expected to be realised. The regulations regarding cemeteries focus on public health aspects and the care and maintenance of cemetery grounds. Funeral home companies are required to deposit a certain percentage from the proceeds of sales of interment rights (ie: the lot, crypt or riches for the final disposition of the remains). These perpetual care funds are held in perpetuity and is not considered an asset to the firm. The firm does however have the right to the interest earned on the funds in order to provide the care and maintenance of their cemeteries.The percentage required to be deposited into the perpetual care fund varies from 5% to 40%, depending on the area. In the event that the firm suspends its operation these funds can be made available through the province or municipality. The pre-need sale of interment rights and other related products is recorded as revenue when customer contracts are signed and, concurrently, related costs are recorded and an allowance is established for customers cancella tions and refunds based on managements estimated of expected cancellations.31995, was a controversial year for The Loewen Group Inc. The company showed its desire to expand within the funeral industry by acquiring funeral homes and cemeteries from Osiris Holding Corp., MHI Group as well as other companies. The speed in which they attempted to acquire new holdings made the company vulnerable to lawsuits. The company stated in its annual report that it has become more aware of this issue after the Gulf National incident. Although the company was severely affected financially by the settlement as demonstrated by the financing and liquidity ratios, the company showed its potential to maintain its position in the industry, as shown by the relative unchanged gross margin. The company now finds itself highly leveraged (as demonstrated by the Scott Formula calculations) and therefore has the potential for big earnings for shareholders. This has also made the company vulnerable to outsiders, as demonstrated by the Service Corporation Internationals attempt to take-over the company. If Loewen Group Incorporated is able to stop the take-over attempt, it will prove its stability.REFERENCES1. Loewen Group Incorporated, The Loewen Group Inc. 1995 Annual Report, H. MacDonald Printing.,1996, 1. 2. Loewen Group International Inc., online Available @ http://www.sec.gov/archives/edgar/data/845577/0000950109/09-96-003953.txt. 3. Ibid. BIBLIOGRAPHYFreiedman, Jack P., Dictionary of Business Terms, New York, Barrons Educational Series Inc., 1994. Gibbins, Michael, Financial Accounting: An Integrated Approach, 2nd Edition, Scarborough, Nelson Canada, 1995. Heimbecker, John, Final Purchase, Growing Demand, The Canadian Funeral Services Industry, Ottawa, Statistics Canada, 1995. The Loewen Group Inc., The Loewen Group Inc. 1995 Annual Report, Burnaby B.C.: H. MacDonald Printing, 1996. The Loewen Group International Inc., online Available @ http://www.sec.gov/archives/edgar/data/845577/0000950109/09-96-003953.txt. Milner, Brian. Loewen board rejects SCI takeover bid, The Globe and Mail, 11 October 1996, B13. Milner, Brian. Rivals target Loewen assets, The Globe and Mail, 23 Sepetember 1996, B1, B10. Schreiner, John. Loewen wont concede defeat without exacting a high price The Financial Post 19 September 1996: 1-2. Schreiner, John. U.S. giant bids for Loewen The Financial Post 18 September 1996: 1-2. APPENDIX A: Death, Actual and ProjectedSource: p.18 of Final Purchase, Growing Demand The Canadian Funeral Services Industry. APPENDIX B: Average Funeral CostsSource: p.13 of Final Purchase, Growing Demand The Canadian Funeral Services Industry. APPENDIX C: Revenue by Source in the Funeral Services IndustrySource: p.6 of Final Purchase, Growing Demand The Canadian Funeral Services Industry. APPENDIX D: Total Revenue of the Funeral Services Industry by SectorSource: p.4 of Final Purchase, Growing Demand The Canadian Funeral Services Industry. APPENDIX E: The Scott Formula (Expressed in thousands of U.S. Dollars)19951994SymbolsTotal assets22629801326275ATotal liabilities1648298915136LTotal equity614682411139ETotal revenue599939417328REVNet income(76684)38494NIInterest expense5091334203INTIncome tax rate(38.1) %33.9 %TRAfter-tax interest expense50913 * 1.381 = 7031134203 * .661 = 22608ATI = INT (1 TR)ROE (return on equity)(76684) / 614682 = (0.125)38494 / 411139 = 0.094NI / ESR (sales return before interest)(76684) + 70311 / 599939 = (0.011) 38494 + 22608 / 417328 = 0.146 NI + ATI / REVAT (asset turnover)599939 / 2262980 = 0.265417328 / 1326275 = 0.315REV / AROA (return on assets)(76684) + 70311 / 2262980 = (0.003) 38494 + 22608 / 1326275 = 0.046 NI + ATI / AIN (average interest rate after tax)70311 / 1648298 = 0.04322608 / 915136 = 0.025ATI / LD / E (debt-equity ratio)1648298 / 614682 = 2.682915136 / 411139 = 2.226L / E