FINC 331-WEEK 1:Organizational Forms of Business

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Discussion 1 – Organizational Forms of Business  

Suppose a group of accountants wanted to start their own accounting company. What are the various organizational forms of business they could choose? Describe the strengths and weaknesses of each model. Give your recommendation of which model would be best suited for a group of accountants and WHY?

In which organization type is it easiest or most difficult to raise money? Explain the advantages and disadvantages as a borrower or from the perspective of the lending institution. 

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Choose Your Business Structure comprises public domain material from The U.S. Small Business Administration.
UMGC has modified this work.

Choose Your Business Structure

Sole Proprietorship

A sole proprietorship is the simplest and most common structure chosen to start a business. It is an

unincorporated business owned and run by one individual with no distinction between the business and

you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses

and liabilities.

Forming a Sole Proprietorship

You do not have to take any formal action to form a sole proprietorship. As long as you are the only

owner, this status automatically comes from your business activities. In fact, you may already own one

without knowing it. If you are a freelance writer, for example, you are a sole proprietor.

But like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by

industry, state and locality. Use the Licensing & Permits tool to find a listing of federal, state and local

permits, licenses and registrations you’ll need to run a business.

If you choose to operate under a name different than your own, you will most likely have to file

a fictitious name (also known as an assumed name, trade name, or DBA name, short for “doing business

as”). You must choose an original name; it cannot already be claimed by another business.

Sole Proprietor Taxes

Because you and your business are one and the same, the business itself is not taxed separately-the sole

proprietorship income is your income. You report income and/or losses and expenses with a Schedule C

and the standard Form 1040. The “bottom-line amount” from Schedule C transfers to your personal tax

return. It’s your responsibility to withhold and pay all income taxes, including self-employment and

estimated taxes. You can find more information about sole proprietorship taxes and other forms at

IRS.gov.

Advantages of a Sole Proprietorship
• Easy and inexpensive to form: A sole proprietorship is the simplest and least expensive business

structure to establish. Costs are minimal, with legal costs limited to obtaining the necessary

license or permits.

• Complete control. Because you are the sole owner of the business, you have complete control

over all decisions. You aren’t required to consult with anyone else when you need to make

decisions or want to make changes.

• Easy tax preparation. Your business is not taxed separately, so it’s easy to fulfill the tax

reporting requirements for a sole proprietorship. The tax rates are also the lowest of the

business structures.

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Disadvantages of a Proprietorship

• Unlimited personal liability. Because there is no legal separation between you and your

business, you can be held personally liable for the debts and obligations of the business. This risk

extends to any liabilities incurred as a result of employee actions.

• Hard to raise money. Sole proprietors often face challenges when trying to raise money.

Because you can’t sell stock in the business, investors won’t often invest. Banks are also hesitant

to lend to a sole proprietorship because of a perceived lack of credibility when it comes to

repayment if the business fails.

• Heavy burden. The flipside of complete control is the burden and pressure it can impose. You

alone are ultimately responsible for the successes and failures of your business.

Limited Liability Company

A limited liability company is a hybrid type of legal structure that provides the limited liability features of

a corporation and the tax efficiencies and operational flexibility of a partnership.

The “owners” of an LLC are referred to as “members.” Depending on the state, the members can consist

of a single individual (one owner), two or more individuals, corporations or other LLCs.

Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits

and losses are “passed through” the business to each member of the LLC. LLC members report profits

and losses on their personal federal tax returns, just like the owners of a partnership would.

Forming an LLC

While each state has slight variations to forming an LLC, they all adhere to some general principles:

Choose a Business Name. There are 3 rules that your LLC name needs to follow: (1) it must be different

from an existing LLC in your state, (2) it must indicate that it’s an LLC (such as “LLC” or Limited

Company”) and (3) it must not include words restricted by your state (such as “bank” and “insurance”).

Your business name is automatically registered with your state when you register your business, so you

do not have to go through a separate process. Read more here about choosing a business name.

File the Articles of Organization. The “articles of organization” is a simple document that legitimizes

your LLC and includes information like your business name, address, and the names of its members. For

most states, you file with the Secretary of State. However, other states may require that you file with a

different office such as the State Corporation Commission, Department of Commerce and Consumer

Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations & Commercial

Code. Note: there may be an associated filing fee.

Create an Operating Agreement.Most states do not require operating agreements. However, an

operating agreement is highly recommended for multi-member LLCs because it structures your LLC’s

finances and organization, and provides rules and regulations for smooth operation. The operating

agreement usually includes percentage of interests, allocation of profits and losses, member’s rights and

responsibilities and other provisions.

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Obtain Licenses and Permits. Once your business is registered, you must obtain business licenses and

permits. Regulations vary by industry, state and locality. Use the Licensing & Permits tool to find a listing

of federal, state and local permits, licenses and registrations you’ll need to run a business.

Hiring Employees. If you are hiring employees, read more about federal and state regulations for

employers.

Announce Your Business. Some states, including Arizona and New York, require the extra step of

publishing a statement in your local newspaper about your LLC formation. Check with your state’s

business filing office for requirements in your area.

LLC Taxes

In the eyes of the federal government, an LLC is not a separate tax entity, so the business itself is not

taxed. Instead, all federal income taxes are passed on to the LLC’s members and are paid through their

personal income tax. While the federal government does not tax income on an LLC, some states do, so

check with your state’s income tax agency.

Since the federal government does not recognize LLC as a business entity for taxation purposes, all LLCs

must file as a corporation, partnership, or sole proprietorship tax return. Certain LLCs are automatically

classified and taxed as a corporation by federal tax law. For guidelines about how to classify an LLC,

visit IRS.gov.

LLCs that are not automatically classified as a corporation can choose their business entity classification.

To elect a classification, an LLC must file Form 8832. This form is also used if an LLC wishes to change its

classification status. Read more about filing as a corporation or partnership and filing as a single

member LLC at IRS.gov.

You should file the following tax forms depending on your classification:

• Single Member LLC. A single-member LLC files Form 1040 Schedule C like a sole proprietor.

• Partners in an LLC. Partners in an LLC file a Form 1065 partnership tax return like owners in a

traditional partnership.

• LLC filing as a Corporation. An LLC designated as a corporation files Form 1120, the corporation

income tax return.

The IRS guide to Limited Liability Companies provides all relevant tax forms and additional information

regarding their purpose and use.

Combining the Benefits of an LLC with an S-Corp

There is always the possibility of requesting S-Corp status for your LLC. An attorney can advise you on

the pros and cons. You’ll have to make a special election with the IRS to have the LLC taxed as an S-Corp

using Form 2553. You must file prior to the first two months and fifteen days of the beginning of the tax

year in which the election is to take effect. For more information about S-Corp status, visit IRS.gov or

read Should My Company be an LLC, an S-Corp or Both?

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The LLC remains a limited liability company from a legal standpoint, but for tax purposes it can be

treated as an S-Corp. Be sure to contact the state’s income tax agency where you plan to file your

election form. Ask about the tax requirements and if they recognize elections of other entities (such as

the S-Corp).

Advantages of an LLC

• Limited Liability.Members are protected from personal liability for business decisions or actions

of the LLC. This means that if the LLC incurs debt or is sued, members’ personal assets are

usually exempt. This is similar to the liability protections afforded to shareholders of a

corporation. Keep in mind that limited liability means “limited” liability – members are not

necessarily shielded from wrongful acts, including those of their employees.

• Less Recordkeeping. An LLC’s operational ease is one of its greatest advantages. Compared to

an S-Corporation, there is less registration paperwork and there are smaller start-up costs.

• Sharing of Profits. There are fewer restrictions on profit sharing within an LLC, as members

distribute profits as they see fit. Members might contribute different proportions of capital and

sweat equity. Consequently, it’s up to the members themselves to decide who has earned what

percentage of the profits or losses.

Disadvantages of an LLC

• Limited Life. In many states, when a member leaves an LLC, the business is dissolved and the

members must fulfill all remaining legal and business obligations to close the business. The

remaining members can decide if they want to start a new LLC or part ways. However, you can

include provisions in your operating agreement to prolong the life of the LLC if a member

decides to leave the business.

• Self-Employment Taxes.Members of an LLC are considered self-employed and must pay the

self-employment tax contributions towards Medicare and Social Security. The entire net income

of the LLC is subject to this tax.

Cooperative

A cooperative is a business or organization owned by and operated for the benefit of those using its

services. Profits and earnings generated by the cooperative are distributed among the members, also

known as user-owners.

Typically, an elected board of directors and officers run the cooperative while regular members have

voting power to control the direction of the cooperative. Members can become part of the cooperative

by purchasing shares, though the amount of shares they hold does not affect the weight of their vote.

Cooperatives are common in the healthcare, retail, agriculture, art and restaurant industries.

Forming a Cooperative

Forming a cooperative is different from forming any other business entity. To start up, a group of

potential members must agree on a common need and a strategy on how to meet that need. An

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organizing committee then conducts exploratory meetings, surveys, and cost and feasibility analyses

before every member agrees with the business plan. Not all cooperatives are incorporated, though

many choose to do so. If you decide to incorporate your cooperative, you must complete the following

steps:

• File Articles of Incorporation. The articles of incorporation legitimizes your cooperative and

includes information like the name of the cooperative, business location, purpose, duration of

existence, and names of the incorporators, and capital structure. Once the charter members

(also known as the incorporators) file with your state business entity registration office and the

articles are approved, you should create bylaws for your cooperative.

• Create Bylaws.While the law does not require bylaws, they do need to comply with state law

and are essential to the success of your cooperative. Bylaws list membership requirements,

duties, responsibilities and other operational procedures that allow your cooperative to run

smoothly. According to most state laws, the majority of your members must adopt articles of

incorporation and bylaws. Consult an attorney to verify that your bylaws comply with state laws.

• Create a Membership Application. To recruit members and legally verify that they are part of

the cooperative, you must create and issue a membership application. Membership applications

include names, signatures from the board of directors and member rights and benefits.

• Conduct a Charter Member Meeting and Elect Directors. During this meeting, charter members

discuss and amend the proposed bylaws. By the end of the meeting, all of the charter members

should vote to adopt the bylaws. If the board of directors were not named in the articles of

incorporation, you must designate them during the charter meeting.

• Obtain Licenses and Permits. You must obtain relevant business licenses and permits.

Regulations vary by industry, state and locality. Use our Licensing & Permits tool to find a list of

federal, state and local permits, licenses and registrations you’ll need to run a business.

• Hiring Employees. If you are hiring employees, read more about federal and state regulations

for employers.

Each state will have slightly different laws that govern a cooperative. Consult an attorney, your Secretary

of State or State Corporation Commissioner for more information regarding your state’s specific laws.

Cooperative Taxes

Most businesses need to register with the IRS, register with state and local revenue agencies, and obtain

a tax ID number or permit. A cooperative operates as a corporation and receives a “pass-through”

designation from the IRS. More specifically, cooperatives do not pay federal income taxes as a business

entity.

Instead, the cooperative’s members pay federal taxes when they file their personal income tax.

Members pay federal and state income tax on the margins earned by the cooperative, though the

amount of taxation varies slightly by state. Cooperatives must follow the rules and regulations of

the IRS’s Subchapter T Cooperatives tax code to receive this type of tax treatment.

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To file taxes on income received from cooperatives, please refer to IRS instructions on how to file Form

1099-PATR. If you create a consumer cooperative for retail sales of goods or services that are generally

for personal, living, or family, you will need to file Form 3491 Consumer Cooperative Exemption

Application for exemption from Form 1099-PATR.

Some cooperatives, like credit unions and rural utility cooperatives, are exempt from federal and state

taxes due to the nature of their operations. Check with your state’s income tax agency for information

about state taxes.

Advantages of a Cooperative

• Less Taxation. Similar to an LLC, cooperatives that are incorporated normally are not taxed on

surplus earnings (or patronage dividends) refunded to members. Therefore, members of a

cooperative are only taxed once on their income from the cooperative and not on both the

individual and the cooperative level.

• Funding Opportunities. Depending on the type of cooperative you own or participate in, there

are a variety of government-sponsored grant programs to help you start. For example, the USDA

Rural Development program offers grants to those establishing and operating new and existing

rural development cooperatives.

• Reduce Costs and Improve Products and Services. By leveraging their size, cooperatives can

more easily obtain discounts on supplies and other materials and services. Suppliers are more

likely to give better products and services because they are working with a customer of more

substantial size. Consequently, the members of the cooperative can focus on improving

products and services.

• Perpetual Existence. A cooperative structure brings less disruption and more continuity to the

business. Unlike other business structures, members in a cooperative can routinely join or leave

the business without causing dissolution.

• Democratic Organization. Democracy is a defining element of cooperatives. The democratic

structure of a cooperative ensures that it serves its members’ needs. The amount of a member’s

monetary investment in the cooperative does not affect the weight of each vote, so no member-

owner can dominate the decision-making process. The “one member-one vote” philosophy

particularly appeals to smaller investors because they have as much say in the organization as

does a larger investor.

Disadvantages of a Cooperative

• Obtaining Capital through Investors. Cooperatives may suffer from slower cash flow since a

member’s incentive to contribute depends on how much they use the cooperative’s services and

products. While the “one member-one vote” philosophy is appealing to small investors, larger

investors may choose to invest their money elsewhere because a larger share investment in the

cooperative does not translate to greater decision-making power.

• Lack of Membership and Participation. If members do not fully participate and perform their

duties, whether it be voting or carrying out daily operations, then the business cannot operate

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at full capacity. If a lack of participation becomes an ongoing issue for a cooperative, it could risk

losing members.

Corporation

Corporation (C Corporation)

A corporation (sometimes referred to as a C corporation) is an independent legal entity owned by

shareholders. This means that the corporation itself, not the shareholders that own it, is held legally

liable for the actions and debts the business incurs.

Corporations are more complex than other business structures because they tend to have costly

administrative fees and complex tax and legal requirements. Because of these issues, corporations are

generally suggested for established, larger companies with multiple employees.

For businesses in that position, corporations offer the ability to sell ownership shares in the business

through stock offerings. “Going public” through an initial public offering (IPO) is a major selling point in

attracting investment capital and high quality employees.

Forming a Corporation

A corporation is formed under the laws of the state in which it is registered. To form a corporation you’ll

need to establish your business name and register your legal name with your state government. If you

choose to operate under a name different than the officially registered name, you’ll most likely have to

file a fictitious name (also known as an assumed name, trade name, or DBA name, short for “doing

business as”). State laws vary, but generally corporations must include a corporate designation

(Corporation, Incorporated, Limited) at the end of the business name.

To register your business as a corporation, you need to file certain documents, typically articles of

incorporation, with your state’s Secretary of State office. Some states require corporations to establish

directors and issue stock certificates to initial shareholders in the registration process. Contact your

state business entity registration office to find out about specific filing requirements in the state where

you form your business.

Once your business is registered, you must obtain business licenses and permits. Regulations vary by

industry, state and locality. Use our Licensing & Permits tool to find a listing of federal, state and local

permits, licenses and registrations you’ll need to run a business.

If you are hiring employees, read more about federal and state regulations for employers.

Corporation Taxes

Corporations are required to pay federal, state, and in some cases, local taxes. Most businesses must

register with the IRS and state and local revenue agencies, and receive a tax ID number or permit.

When you form a corporation, you create a separate tax-paying entity. Regular corporations are called

“C corporations” because Subchapter C of Chapter 1 of the Internal Revenue Code is where you find

general tax rules affecting corporations and their shareholders.

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Unlike sole proprietors and partnerships, corporations pay income tax on their profits. In some cases,

corporations are taxed twice – first, when the company makes a profit, and again when dividends are

paid to shareholders on their personal tax returns. Corporations use IRS Form 1120 or 1120-A, U.S.

Corporation Income Tax Return to report revenue to the federal government.

Shareholders who are also employees pay income tax on their wages. The corporation and the

employee each pay one half of the Social Security and Medicare taxes, but this is usually a deductible

business expense.

Read more about tax requirements for Corporations on IRS.gov.

Advantages of a Corporation

• Limited Liability.When it comes to taking responsibility for business debts and actions of a

corporation, shareholders’ personal assets are protected. Shareholders can generally only be

held accountable for their investment in stock of the company.

• Ability to Generate Capital. Corporations have an advantage when it comes to raising capital for

their business – the ability to raise funds through the sale of stock.

• Corporate Tax Treatment. Corporations file taxes separately from their owners. Owners of a

corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses,

and dividends, while any additional profits are awarded a corporate tax rate, which is usually

lower than a personal income tax rate.

• Attractive to Potential Employees. Corporations are generally able to attract and hire high-

quality and motivated employees because they offer competitive benefits and the potential for

partial ownership through stock options.

Disadvantages of a Corporation

• Time and Money. Corporations are costly and time-consuming ventures to start and operate.

Incorporating requires start-up, operating and tax costs that most other structures do not

require.

• Double Taxing. In some cases, corporations are taxed twice – first, when the company makes a

profit, and again when dividends are paid to shareholders.

• Additional Paperwork. Because corporations are highly regulated by federal, state, and in some

cases local agencies, there are increased paperwork and recordkeeping burdens associated with

this entity.

Partnership

A partnership is a single business where two or more people share ownership.

Each partner contributes to all aspects of the business, including money, property, labor or skill. In

return, each partner shares in the profits and losses of the business.

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Because partnerships entail more than one person in the decision-making process, it’s important to

discuss a wide variety of issues up front and develop a legal partnership agreement. This agreement

should document how future business decisions will be made, including how the partners will divide

profits, resolve disputes, change ownership (bring in new partners or buy out current partners) and how

to dissolve the partnership. Although partnership agreements are not legally required, they are strongly

recommended and it is considered extremely risky to operate without one.

Types of Partnerships

There are three general types of partnership arrangements:

• General Partnerships assume that profits, liability and management duties are divided equally

among partners. If you opt for an unequal distribution, the percentages assigned to each

partner must be documented in the partnership agreement.

• Limited Partnerships (also known as a partnership with limited liability) are more complex than

general partnerships. Limited partnerships allow partners to have limited liability as well as

limited input with management decisions. These limits depend on the extent of each partner’s

investment percentage. Limited partnerships are attractive to investors of short-term projects.

• Joint Ventures act as general partnership, but for only a limited period of time or for a single

project. Partners in a joint venture can be recognized as an ongoing partnership if they continue

the venture, but they must file as such.

Forming a Partnership

To form a partnership, you must register your business with your state, a process generally done

through your Secretary of State’s office.

You’ll also need to establish your business name. For partnerships, your legal name is the name given in

your partnership agreement or the last names of the partners. If you choose to operate under a name

different than the officially registered name, you will most likely have to file a fictitious name (also

known as an assumed name, trade name, or DBA name, short for “doing business as”).

Once your business is registered, you must obtain business licenses and permits. Regulations vary by

industry, state and locality. Use our Licensing & Permits tool to find a listing of federal, state and local

permits, licenses and registrations you’ll need to run a business.

If you are hiring employees, read more about federal and state regulations for employers.

Partnership Taxes

Most businesses will need to register with the IRS, register with state and local revenue agencies, and

obtain a tax ID number or permit.

A partnership must file an “annual information return” to report the income, deductions, gains and

losses from the business’s operations, but the business itself does not pay income tax. Instead, the

business “passes through” any profits or losses to its partners. Partners include their respective share of

the partnership’s income or loss on their personal tax returns.

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Partnership taxes generally include:

• Annual Return of Income

• Employment Taxes

• Excise Taxes

Partners in the partnership are responsible for several additional taxes, including:

• Income Tax

• Self-Employment Tax

• Estimated Tax

Filing information for partnerships:

• Partnerships must furnish copies of their Schedule K-1 (Form 1065) to all partners by the date

Form 1065 is required to be filed, including extensions.

• Partners are not employees and should not be issued a FormW-2.

The IRS guide to Partnerships provides all relevant tax forms and additional information regarding their

purpose and use.

Advantages of a Partnership

• Easy and Inexpensive. Partnerships are generally an inexpensive and easily formed business

structure. The majority of time spent starting a partnership often focuses on developing the

partnership agreement.

• Shared Financial Commitment. In a partnership, each partner is equally invested in the success

of the business. Partnerships have the advantage of pooling resources to obtain capital. This

could be beneficial in terms of securing credit, or by simply doubling your seed money.

• Complementary Skills. A good partnership should reap the benefits of being able to utilize the

strengths, resources and expertise of each partner.

• Partnership Incentives for Employees. Partnerships have an employment advantage over other

entities if they offer employees the opportunity to become a partner. Partnership incentives

often attract highly motivated and qualified employees.

Disadvantages of a Partnership

• Joint and Individual Liability. Similar to sole proprietorships, partnerships retain full, shared

liability among the owners. Partners are not only liable for their own actions, but also for the

business debts and decisions made by other partners. In addition, the personal assets of all

partners can be used to satisfy the partnership’s debt.

• Disagreements Among Partners.With multiple partners, there are bound to be disagreements

Partners should consult each other on all decisions, make compromises, and resolve disputes as

amicably as possible.

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• Shared Profits. Because partnerships are jointly owned, each partner must share the successes

and profits of their business with the other partners. An unequal contribution of time, effort, or

resources can cause discord among partners.

S Corporation

An S corporation (sometimes referred to as an S Corp) is a special type of corporation created through

an IRS tax election. An eligible domestic corporation can avoid double taxation (once to the corporation

and again to the shareholders) by electing to be treated as an S corporation.

An S corp is a corporation with the Subchapter S designation from the IRS. To be considered an S corp,

you must first charter a business as a corporation in the state where it is headquartered. According to

the IRS, S corporations are “considered by law to be a unique entity, separate and apart from those who

own it.” This limits the financial liability for which you (the owner, or “shareholder”) are responsible.

Nevertheless, liability protection is limited – S corps do not necessarily shield you from all litigation such

as an employee’s tort actions as a result of a workplace incident.

What makes the S corp different from a traditional corporation (C corp) is that profits and losses can

pass through to your personal tax return. Consequently, the business is not taxed itself. Only the

shareholders are taxed. There is an important caveat, however: any shareholder who works for the

company must pay him or herself “reasonable compensation.” Basically, the shareholder must be paid

fair market value, or the IRS might reclassify any additional corporate earnings as “wages.”

Forming an S Corporation

Before you form an S Corporation, determine if your business will qualify under the IRS stipulations.

To file as an S Corporation, you must first file as a corporation. After you are considered a corporation,

all shareholders must sign and file Form 2553 to elect your corporation to become an S Corporation.

Once your business is registered, you must obtain business licenses and permits. Regulations vary by

industry, state and locality. Use the Licensing & Permits tool to find a listing of federal, state and local

permits, licenses, and registrations you’ll need to run a business.

If you are hiring employees, read more about federal and state regulations for employers.

Combining the Benefits of an LLC with an S Corp

There is always the possibility of requesting S Corp status for your LLC. Your attorney can advise you on

the pros and cons. You’ll have to make a special election with the IRS to have the LLC taxed as an S corp

using Form 2553. And you must file it before the first two months and fifteen days of the beginning of

the tax year in which the election is to take effect.

The LLC remains a limited liability company from a legal standpoint, but for tax purposes it’s treated as

an S corp. Be sure to contact your state’s income tax agency where you will file the election form to

learn about tax requirements.

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Taxes

Most businesses need to register with the IRS, register with state and local revenue agencies, and

obtain a tax ID number or permit.

All states do not tax S corps equally. Most recognize them similarly to the federal government and tax

the shareholders accordingly. However, some states (like Massachusetts) tax S corps on profits above a

specified limit. Other states don’t recognize the S corp election and treat the business as a C corp with

all of the tax ramifications. Some states (like New York and New Jersey) tax both the S corps profits and

the shareholder’s proportional shares of the profits.

Your corporation must file the Form 2553 to elect “S” status within two months and 15 days after the

beginning of the tax year or any time before the tax year for the status to be in effect.

Advantages of an S Corporation

• Tax Savings. One of the best features of the S Corp is the tax savings for you and your business.

While members of an LLC are subject to employment tax on the entire net income of the

business, only the wages of the S Corp shareholder who is an employee are subject to

employment tax. The remaining income is paid to the owner as a “distribution,” which is taxed

at a lower rate, if at all.

• Business Expense Tax Credits. Some expenses that shareholder/employees incur can be written

off as business expenses. Nevertheless, if such an employee owns 2% or more shares, then

benefits like health and life insurance are deemed taxable income.

• Independent Life. An S corp designation also allows a business to have an independent life,

separate from its shareholders. If a shareholder leaves the company, or sells his or her shares,

the S corp can continue doing business relatively undisturbed. Maintaining the business as a

distinct corporate entity defines clear lines between the shareholders and the business that

improve the protection of the shareholders.

Disadvantages of an S Corporation

• Stricter Operational Processes. As a separate structure, S corps require scheduled director and

shareholder meetings, minutes from those meetings, adoption and updates to by-laws, stock

transfers and records maintenance.

• Shareholder Compensation Requirements. A shareholder must receive reasonable

compensation. The IRS takes notice of shareholder red flags like low salary/high distribution

combinations, and may reclassify your distributions as wages. You could pay a higher

employment tax because of an audit with these results.

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Module 1: Finance and Financial

Performance

Topics

Introduction to Financial Management

Standard Financial Reporting

Evaluating Financial Performance

Financial Plans and Forecasts

Because it introduces the field of finance, the material in this module covers an unusually wide

spectrum of financial subjects, ranging from the definition of finance to the evaluation of

financial performance using ratio analysis.

Introduction to Financial Management

In this section, we address three important subjects in financial management. First, we critically

examine the question of what is the proper goal of the firm. Second, we examine the key

interactions between the firm and the various market entities. Third, we discuss some of the

generally recognized fundamental principals of financial management that form the foundations

of financial management analyses and decision making.

The Goal of the Firm

To measure the financial performance of a firm, it is necessary to establish a fundamental goal

against which to evaluate financial performance and financial decision making. In determining a

“proper” financial goal for the firm, three essential requirements should be satisfied. First, the

goal must be theoretically sound; second, it must be quantitative; and third, it must be easy to

apply in practice.

A review of current economic and business theory reveals two potential goals for a firm.

Traditional economic theory espouses maximizing profit, and modern finance theory advocates

maximizing shareholder wealth. Logically, there can be only one goal for evaluating financial

performance, therefore we must examine each proposed goal against the above-listed

requirements to determine which is superior.

In comparing our two candidates, it is apparent that both goals are quantitative and relatively

easy to measure and apply in decision making. The profit maximization goal would be

quantitatively measured based on accounting profit—total revenues generated less total costs

incurred. The goal of maximizing shareholder wealth would be measured by calculating the

market capitalization value—the number of shares of stock outstanding times the current market

price per share.

When examined from the perspective of theoretical validity, however, the goal of profit

maximization exhibits several significant weaknesses. Although this goal does stress the efficient

use of capital resources, by itself it is too narrow, in that it assumes away many of the financially

significant complexities of the real world. Specifically, the profit maximization goal has the

following two major weaknesses.

1. It assumes away the inherent uncertainty of the expected returns (e.g., it ignores any

consideration of risk).

2. It disregards the timing differences as to when the profits are received (e.g., it ignores the

time value of money).

As we shall see later, both of these weaknesses are critical considerations for proper financial

decision making and cannot be disregarded. Conversely, the maximization of shareholder wealth

goal does implicitly assume consideration of the time value of money, risk, and all the other

factors that are not directly profit related, but that should be considered in rational financial

decision making. Therefore, we conclude that maximizing shareholder wealth is the superior

primary goal for all businesses.

The Firm and Its Financial Environment

Fundamental to understanding finance is recognizing that the firm is the primary creator of

wealth, which it does by interacting with various sectors of the marketplace. To explain how

these basic interactions create wealth, we will develop a simplified transaction model of the firm.

This model will begin with a new startup company and trace the basic cash transactions and the

resulting counterflows of securities, goods, and services until a sustained profit generation is

achieved. In our simplified model, the worldwide marketplace will consist of the following

players:

• the firm—the creator of value-added wealth

• the investors—the source of capital

• the supply market—the source of materials, equipment, and required services

• the labor market—the source of labor

• the customers—the purchasers of the firm’s goods and services

• the government—the controller of taxes

The Fundamental Principles of Finance

A set of principles of finance has been established, tested over the years, and become accepted as

the basic philosophical foundation upon which to build or test financial theories, concepts, and

formulas. These principles can be found in many texts, form the paradigm of financial theory,

and are widely used in today’s business practices and academic research.

Various other academics and practitioners differ on the exact number of principles and their

precise wording. Most of these differences relate to wording and to the lower-priority principles,

where it is arguable as to whether or not the subject is of sufficient merit to warrant being called

a principle of finance. Of most significance for our study of finance, however, is the almost

universal acceptance by all recognized authorities of the three core financial principles described

below.

1. Risk-return tradeoff—This principle states that rational investors or financial managers

will not accept additional risk in an investment unless they are compensated with an

acceptable corresponding additional expected return.

This principle will be a key factor in the later development of valuation formulae for

stocks, bonds, and capital project analysis.

2. Time value of money—This principle states that a dollar today is worth more than a

dollar tomorrow because the dollar received today can be reinvested to earn money today.

This fundamental concept leads to the financial convention of bringing future expected

cash flows back to the present for comparable evaluation. This concept will be significant

in the later development of valuations of future payments, annuities, perpetuities, stocks,

bonds, and project analysis.

3. Measure cash, not profit—According to this principle, cash flows, or cash received less

cash disbursed, are the proper measures of wealth. Cash is tangible; only cash in hand can

be spent or invested. Profits are intangible, an accounting concept, and cannot be spent or

invested

Cash flows, or more specifically free cash flows, are the base currency for all financial

analysis and decision making related to maximizing wealth, be it future payments,

annuities, perpetuities, stocks, bonds, or project return.

These core principles are referenced repeatedly throughout the study of finance and explicitly

used in developing advanced financial theories, concepts, and formulas. We encourage you to

refer back to these definitions from time to time to reinforce your understanding of exactly how

the principles apply.

To summarize these principles, you could combine them into this one-sentence philosophic

financial analysis mission statement: The key determinant for most financial decision making is

the net value of the incrementally generated free cash flow stream after proper discounting for

the time value of money and adjustment to compensate for risk.

Callout

Practice Exercises

The following practice exercises will help you master the financial concepts in this section and

their application to real-world problems.

Complete the following practice exercises – Please go to My Tools -> Self Assessments -> to

complete this self assessment.

Standard Financial Reporting

In this section, we address one of the essentials of financial management—the ability of

management to measure and report their firm’s financial performance and cash flow in a standard

and consistent manner. Finance students must have at least a working knowledge of the three

standard financial statements—the income statement, the balance sheet, and the cash flow

statement—because they are the primary sources of information regarding a firm’s financial

performance.

In addition to understanding financial performance, as presented in the financial statements, you

must also understand and be able to measure the firm’s free cash flows. Referring back to core

financial principal 3, “Measure cash, not profit,” you must be able to reconcile the difference

between the two accrual-based accounting statement reports, the income statement and balance

sheet, and the calculation of free cash flows. We stress principle 3 because the discipline of

finance uses cash exclusively in analysis and decision making.

The Standard Financial Statements

Three basic financial statements, together, suffice to report the financial health of the firm. These

statements are prepared in accordance with Financial Accounting Standards Board (FASB)

pronouncements and Generally Accepted Accounting Principles (GAAP), and normally are

independently audited for conformance with these requirements. Each statement serves a specific

purpose. The purpose of the income statement is to report the firm’s net income or loss over a set

period of time—usually a month, a quarter, or a year. The purpose of the balance sheet is to

show the firm’s assets, liabilities, and residual or owners’ equity at a certain time. The purpose of

the free cash flow statement is to show the net change in actual cash, or the free cash flow,

generation or loss, over a period of time.

Reemphasizing, the income statement and cash flow statements, respectively, report earnings and

cash generated during a period of time, and the balance sheet reports asset, liability, and equity

positions at a specific time. Again, the income and cash generation represents the flow of activity

between two balance sheet positions. We will now describe each of these three standard financial

statements and illustrate them in a minipresentation.

The Income Statement—Measuring a Firm’s Profits and Losses

The income statement reports the firm’s net income or net loss (profit or loss) results obtained

from operating the business over a set period of time, typically a month, quarter, or year. Other

common names for the income statement are the profit and loss statement (P&L) and the

earnings statement. The income statement begins by identifying all sources of revenue for the

period and then sequentially subtracts all the costs that were incurred in generating that revenue.

Normally, the income statement comprises five major categories, one related to revenue and four

related to costs and expenses as shown below:

1. revenues—the proceeds from selling the product(s) or services(s)

2. costs—the costs of producing or acquiring the product(s) or service(s)

3. period expenses—the expenses incurred in marketing, administration, and R&D

4. interest—the financing costs of debt financing

5. taxes—the taxes owed based on a firm’s taxable income

The Balance Sheet—Measuring a Firm’s Book Value

The balance sheet provides a snapshot of the firm’s financial position at a specific time and

presents the firm’s asset holdings, liability obligations, and owners’ residual equity as of that

time. It is important to recognize that the balance sheet is an algebraic equation that relates and

balances the three components—assets, liabilities, and equity. In traditional accounting format,

the fundamental accounting equation is presented as follows:

Assets = liabilities + equities

Succinctly, this equation states that at any point in time the value of the firm’s assets must be

exactly equal to the value of its liabilities and equity. For a more intuitive understanding, it is

sometimes helpful to algebraically rearrange this equation to read as follows:

Assets – liabilities = equities

Interpreting the rearranged equation, we can now more clearly interpret the meaning of equity.

Equity is the residual value the owners can claim after the value of all the liability obligations

has been subtracted from the value of the firm’s assets. It is important to note that the balance

sheet measures “book” value and is not intended to represent the current market value of the

firm. Under the accounting rules, the balance sheet records the value of all assets, liabilities, and

equities at their historical purchase cost at the time of acquisition.

Assets

Assets represent the historical value of all the resources the firm owns. There are three categories

of assets in the balance sheet. These assets are listed in sequence based on the amount of time

that is expected to pass before they can be converted to cash.

1. Current assets, by definition, have an expected conversion life of less than one year.

Included in current assets are cash, marketable securities, accounts receivable,

inventories, and prepaid expenses. All of these assets are considered to be liquid, which

means they can quickly be converted into cash if required.

2. Fixed or long-term assets, by definition, have an expected conversion life of more than

one year. Included in fixed assets are equipment, buildings, and land. These assets are

considered nonliquid because normally they cannot be quickly converted into cash.

3. Other assets is a default category that includes all the firm’s remaining assets not

otherwise included in the current assets or fixed assets categories. Typical examples of

other assets are patents, long-term investments in securities, and goodwill.

Liabilities

Liabilities represent legal financial obligations of the firm. There are two major categories of

liabilities in the balance sheet. They are listed in sequence based on the amount of time that is

expected to pass before they can be liquidated through the payment of cash. These obligations

are normally incurred either from trade credit received from suppliers in the course of normal

business or from the firm’s use of debt financing to procure company assets.

1. Current liabilities, by definition, have an expected conversion life of less than one year.

Included in current liabilities are accounts payable, taxes payable, and short-term debt

financing obligations that must be paid within one year.

2. Long-term liabilities, by definition, have an expected conversion life of more than one

year. Included in long-term liabilities are long-term notes and long-term bond

obligations.

Equity

Equity includes the stockholders’ investment in the firm, both capital at par and additional paid-

in capital, and the cumulative profits and losses retained in the business from its inception up to

the date of the balance sheet.

The Cash Flow Statement and the Concept of Free Cash Flows

Although an income statement measures a company’s profits, as stated earlier, the reported

profits are not the same as cash. Accounting profit, or book profit, is calculated on a noncash

accounting accrual basis where revenues and expenses are matched in time and certain noncash

transactions such as depreciation and amortization are recorded. Under these accounting rules,

revenue is earned and cost incurred whether or not the actual cash has been received or disbursed

in that period. Therefore, in finance we require a method to translate the accrual-based

accounting profit back to its cash component. The statement that converts the accrual-based

accounting statements into a cash basis is called the free cash flow statement.

By definition, the free cash flows that are generated from the firm’s operations and investments

in assets must always be equal to the free cash flows paid to or received from the company’s

investor financing. Therefore, free cash flows can be calculated from two perspectives, the

operating perspective and the financing perspective.

Calculating Free Cash Flows: An Operating Perspective

A firm’s free cash flows, from an operating perspective, are the after-tax cash flows generated

from operations, less the firm’s after-tax cash flow investments in assets. The firm’s free cash

flows for a given period can be calculated from an operations perspective using the following

three-step process:

1. Calculate the firm’s after-tax cash flows from operations.

2. Subtract any investment (increase) in net operating working capital.

3. Subtract any investments in fixed assets (plant and equipment) and other assets.

Yields operating-perspective free cash flow

Calculating Free Cash Flows: A Financing Perspective

A firm’s free cash flows from a financing perspective are simply the net cash flows received by

the firm’s investors, or if negative, the cash flows the investors are paying into the firm. In the

latter situation, where the investors are putting money into the firm, it is because the firm’s free

cash flow from operations is negative, which in turn requires an additional infusion of capital

from the investors to maintain the firm as a going concern. The firm’s free cash flows for a given

period can be calculated from an investment perspective using the following two-part process:

Part 1. Calculations related to debt financing

Step 1 Calculate the interest payments to creditors.

Step 2 Add any decrease in debt principal.

Step 3 Subtract any increase in debt principal.

Part 2. Calculations related to equity financing

Step 4 Add any dividends paid to stockholders.

Step 5 Add any decrease in stock.

Step 6 Subtract any increase in stock.

______________________________________________________

Yields Financing-perspective free cash flow

As a final reinforcement when calculating free cash flows, remember that the free cash flow from

an operating perspective must equal the free cash flow from a financing perspective. This

identity can be used as one validity check to assure that your calculations are correct.

An Excel worksheet for the calculation of free cash flow.

Callout

Practice Exercises:

The following practice exercises will help you master the financial concepts in this section and

their application to real-world problems.

Complete the following practice exercises.

Evaluating Financial Performance

In this section, we will learn about one of the primary analytical tools commonly used to

evaluate the financial performance of the firm—financial ratio analysis. Its use provides a

financially sound, analytically powerful, and widely accepted approach for evaluating many

critical aspects of a firm’s financial performance.

Over the years, many standard financial ratio formulas have been developed and employed to

evaluate various and specific aspects of a firm’s financial performance. The art of this technique

now rests in organizing these ratios for effective implementation, properly applying them in

practice, and knowing the limitation of this technique. Because most textbooks cover this subject

in detail and adequately develop the theory behind each financial ratio, in this section we will

concentrate on two supplemental topics: (1) organizing the key financial ratios according to their

application and (2) providing some additional perspectives regarding the uses and limitations of

these techniques.

Organizing Financial Ratios by Application

The purpose of a financial ratio is to define a theoretically meaningful relationship between

selected activities of the firm’s financial statements that can provide insight into the firm’s

financial performance. Different practitioners and textbooks sometimes group the financial ratios

differently. There are at least 15–20 standard financial ratios plus variations of some of them.

Therefore, it is easy to lose sight of the forest for the trees.

Also, different practitioners and textbooks often group the financial ratios differently. One of the

more logical and useful ways to group these ratios is by their ability to answer the following four

key questions related to financial performance evaluation.

1. How liquid is the firm?

2. How effective is the firm in generating profits on its assets?

3. How is the firm financing its assets?

4. Are the shareholder returns adequate?

Using these four questions, the financial ratios can be grouped by category and be readily

available to analyze a firm according to four different perspectives. Here is a detailed chart that

organizes 10 key standard financial ratio formulas by the above four perspectives.

The Uses and Limitations of Financial Ratios

Who Uses Financial Ratio Analysis?

In addition to the management of the firm, a wide variety of individuals and organizations, for a

variety of purposes, use financial ratios to evaluate the financial statements of publicly traded

firms. The following is a list of some of the major users of financial ratios and their general

purposes for doing so.

1. Investors and investment brokers use analysis to

• evaluate alternative investments’ risks versus returns

• identify trends as indicators of a firm’s future performance

• identify opportunities and risks in future investment

2. Banks use analysis to

• evaluate loans to firms

• evaluate loans to individuals (personal financial statements)

• establish interest rates (higher risk equals higher interest rate)

• manage clients’ investment portfolios

3. Government regulatory agencies use analysis to

• evaluate new public stock issues [Securities and Exchange Commission (SEC)]

• conduct government audits [General Accounting Office (GAO)]

• establish rates for government contracting [the Defense Contract Auditing

Agency (DCAA)]

4. The firm uses analysis for

• management planning

• financial planning

• credit management (who to give trade credit and on what terms)

• shareholder reporting

• evaluating potential mergers and acquisitions

• evaluating competitors

• identifying operational problems

• assuring compliance with loan covenants (normal with bank loans)

The Use of Financial Ratio Analysis

The reliability and value of the information gained from financial ratio analysis can vary

significantly, depending on how it was conducted and on the quality and comparability of the

financial statements, which provide the financial data. By itself, a ratio is just a number and not

inherently meaningful. Stand-alone financial ratios are like stand-alone numbers. They have

limited value unless associated with other references. For an obvious example, 3 by itself means

little unless associated with some base, such as 3 degrees on the centigrade temperature scale.

The two basic approaches for meaningfully associating financial ratios are trend analysis and

comparative analysis. In fact, it is the careful integration of trend analysis with ratio analysis that

provides the single most powerful technique for evaluating financial performance. Normally,

trend analysis is performed on annual or quarterly data because public companies have to report

this information to the stockholders.

Of the two sources of data, the annual data are generally considered to be the more significant

because of the annual audit requirement. The two approaches can also be used together to

provide a more comprehensive picture of financial performance, such as “a comparative analysis

of a firm’s performance against the industry average over a three-year period.”

The reliability of comparative financial ratio analysis is primarily a function of the accuracy and

comparability of the two sets of source financial data. The analyst must be aware of the

following factors.

1. Different companies may use differing, but GAAP-acceptable, accounting treatments,

which can distort comparison of the financial statements and the ratios based on them.

2. Industry standards, although useful, combine many variations in accounting treatments

and may also contain inaccurate or incomplete input information from industry members.

3. It should be obvious that comparing significantly differing firms over differing time

periods will likely add such distortion as to render any analysis highly questionable.

In summary, the more comparable the financial statements and the more comparable the firms,

the more meaningful will be the results of the financial ratio analysis—and vice versa.

Financial Ratio Limitations and Cautions

Remember that financial ratios, although important, are only one piece of the financial

performance picture and are best used in conjunction with all other available financial

information. In employing financial ratio analysis, it is important to be aware of their implicit

weaknesses and limitations, as well as their explicit strengths. Be particularly aware of the

following points in using financial ratio analysis.

1. A financial ratio is only as reliable as the accuracy of the financial data.

2. GAAP accounting allows significant variation between companies.

3. Accounting data are historical and therefore may not project current performance.

4. Industry averages can contain significant dispersion and approximations.

5. Industry classifications have problems with multi-product-line companies.

6. Many firms have pronounced seasonal and cyclical variations that can affect ratios.

7. Different fiscal year endings can affect comparability.

8. Any financial ratio evaluation is relative, not absolute.

9. Firms, to the extent possible, try to look their best at reporting time.

Callout

Practice Exercises

The following practice exercises will help you master the financial concepts in this section and

their application to real-world problems.

Complete the practice exercises.

Financial Plans and Forecasts

In this section, we examine the critical function of financial planning. Most of management’s

time is spent on addressing the crisis of the day and understanding and explaining the past

performance of the firm to themselves and other interested parties, such as the investors and the

banks. As a result, it is easy in this reaction-based environment to lose focus and direction and

become vulnerable to an unexpected future shock.

One of the key marks of superior business and financial management is the ability to project

future performance with reasonable accuracy and consistency, and to anticipate both future

opportunities and future risks in time to prepare appropriate actions or contingencies. In this

section, we expand the traditional discussion of financial planning by providing some

supplemental perspectives on the benefits, types, and methods of financial planning and by

addressing the issue of uncertainty in financial planning.

Direct Benefits of Financial Planning

Financial planning and forecasting have direct benefits—that is, the primary reasons they were

undertaken—and often some indirect and synergistic benefits, which can also be significant.

Starting with the direct benefits, there are five clear benefits to be secured from disciplined

financial planning and forecasting, which are described below.

1. Financial planning provides a clear measurement of management’s performance because

the firm’s actual financial performance can, and will, be compared against the firm’s

planned performance. At the end of the plan, it must be remembered that:

• Wall Street evaluates publicly traded firms on their performance to plan/forecast

• CEOs evaluate their managers on their performance to plan/forecast

2. Financial planning generates detailed financial projections of cash flow to determine

future financing requirements and timing.

3. Financial planning provides management a better insight into its business operations and

the expected effect of operational matters on financial performance. Properly used, this

insight can identify potential future operational opportunities and risks.

4. The more uncertain the future, the greater the need for forecasting/planning. The weaker

the firm’s financial or competitive position, the greater the need for forecasting/planning.

5. Financial planning provides a solid benchmark to

• quantitatively explain actual versus plan variances

• quantify the expected effect of economic or operational factors

• identify bad financial planning assumptions or estimates

• continuously refine the financial planning process

Indirect Benefits of Financial Planning

In addition to the above direct benefits of projecting future financial performance and cash

requirements, the planning process also generates the following synergistic benefits for the firm.

1. It develops a comprehensive, coordinated set of critical business assumptions and facts

for management review.

2. It integrates economic assumptions with marketing sales plans and operating production

programs to assure a coherent, comprehensive picture of the firm’s strategic and tactical

objectives.

3. It nondestructively develops and tests the viability of various business tactics and

programs designed to achieve the firm’s business strategy.

Types and Methods of Financial Planning

The various types of planning, or forecasting, are generally a function of three variables, (1) the

objective of the plan, (2) the duration of the plan, and (3) the plan’s requirement for accuracy and

detail. While we are concentrating on financial planning, it is important to recognize that all

plans/forecasts have both a business function component and a financial component. The types

of planning used by most firms are summarized below.

1. Long-range planning (normally five years)

• strategic business planning

• acquisition/merger planning

• long-range business planning

• capital appropriation or project planning

2. Mid-range planning (normally one-two years)

• annual budget

• financial plan

• marketing plan

• technology plan

3. Short-range planning (normally less than one year)

• quarterly forecasts/financial projections

• monthly forecasts/financial projections

• monthly, weekly, and daily cash position projections

The Basic Methodologies of Financial Planning

There are two basic methods of financial planning and forecasting, each of which has a multitude

of variations to fit a company’s specific requirements and situation. The two methods are the

trend and ratio method (percent-of-sales method) and the financial modeling method. The trend

and ratio method is far too simplistic and inaccurate to be reliable for financial planning and is

seldom used in real-world decision making. Its major weaknesses are that it assumes everything

in the business varies as a constant percent of sales and that all business parameters have a linear

relationship to sales. In general, this approach becomes complex as you attempt to adjust the plan

to reality, and it is inferior in every respect to the alternative method of financial modeling.

Financial modeling uses powerful user-friendly computerized models and programs to model the

firm’s business and financial transactions. These models range from simple Excel spreadsheet

models to complex custom-designed stochastic-based models. When financial planning is

combined with a sound business model, this method allows rigorous and flexible financial

planning to any degree of detail with superior accuracy.

Financial Planning under Conditions of Uncertainty

Uncertainties and risk are a fact of life in all financial and business planning, and they must be

addressed and accounted for to the extent possible. Financial planning must be able to address

uncertainty for both the anticipated potential events and for the completely unexpected events.

The following are two typical methods used in financial planning to address uncertainty and risk.

1. Contingency provision—plan for a specific known or potential event

o What-if approach—Revise the base plan for a single contingency.

o BEW approach—Prepare plans for three outcomes: best, expected, and worst.

2. General uncertainty provision—plan for multiple unknown and unexpected events

o Sensitivity analysis—This form of analysis varies selected key plan parameters

by percentages or dollars to project the financial impact of a significant incident

without identifying the specific cause. The four major key parameters are price,

sales volume, cost, and capital expenditures.

o Simulation—This approach applies probability and statistical analysis to each

key variable, which in conjunction with sophisticated computerized financial

models can be used to generate a probabilistic range of possible outcomes, based

on thousands of simulation runs.

Chapter 2 “Financial Statements, Taxes, and Cash Flow” from Finance by Boundless is used under
the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported license. © 2014,
boundless.com. UMGC has modified this work and it is available under the original license.

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ts
to
sh
ow
w
h
et
h
er
th
e
co
m
p
an
y
m
ad
e
or
lo
st
m
on
ey
.


T
h
e
ca
sh
fl
ow
st
at
em
en
t
re
p
or
ts
th
e
fl
ow
of
ca
sh
in
an
d
ou
t
of

th
e
bu
si
n
es
s,
d
iv
id
in
g
ca
sh
in
to
op
er
at
in
g,
in
ve
st
in
g
an
d

fi
n
an
ci
n
g
ac
ti
vi
ti
es
.


A
st
at
em
en
t
of
ch
an
ge
s
in
eq
u
it
y
ex
p
la
in
s
th
e
ch
an
ge
s
of
th
e

co
m
p
an
y’
s
eq
u
it
y
th
ro
u
gh
ou
t
th
e
re
p
or
ti
n
g
p
er
io
d
,i
n
cl
u
d
in
g

p
ro
fi
ts
or
lo
ss
es
,d
iv
id
en
d
s
p
ai
d
an
d
is
su
e
or
re
d
em
p
ti
on
of

st
oc
k.

A
fi
n
an
ci
al
st
at
em
en
t
is
a
fo
rm
al
re
p
or
t
of
th
e
fi
n
an
ci
al
ac
ti
vi
ti
es
of

a
bu
si
n
es
s,
p
er
so
n
,o
r
ot
h
er
en
ti
ty
.F
in
an
ci
al
st
at
em
en
ts
ar
e
a
ke
y

co
m
p
on
en
t
of
ac
co
u
n
ti
n
g;
th
e
p
ro
ce
ss
of
co
m
m
u
n
ic
at
in
g

in
fo
rm
at
io
n
ab
ou
t
a
fi
n
an
ci
al
en
ti
ty
(F
ig
u
re
2.
1)
.F
in
an
ci
al

st
at
em
en
ts
ar
e
p
re
se
n
te
d
in
a
st
ru
ct
u
re
d
m
an
n
er
w
it
h
co
n
ve
n
ti
on
s

ac
ce
p
te
d
by
ac
co
u
n
ti
n
g
an
d
re
gu
la
to
ry
p
er
so
n
n
el
.A
n
en
ti
ty
’s

fi
n
an
ci
al
st
at
em
en
t
ty
p
ic
al
ly
in
cl
u
d
es
fo
u
r
ba
si
c
co
m
p
on
en
ts
:a

ba
la
n
ce
sh
ee
t,
in
co
m
e
st
a
te
m
e
n
t,
ca
sh
fl
ow
st
at
em
en
t,
an
d

st
at
em
en
t
of
ch
an
ge
s
in
eq
u
it
y:

1.
T
h
e
co
m
p
an
y’
s
ba
la
n
ce
sh
ee
t
re
p
or
ts
on
a
co
m
p
an
y’
s
as
se
ts
,

li
ab
il
it
ie
s
an
d
ow
n
er
sh
ip
eq
u
it
y.
A
ba
la
n
ce
sh
ee
t
is
of
te
n

d
es
cr
ib
ed
as
a
“s
n
ap
sh
ot
of
a
co
m
p
an
y’
s
fi
n
an
ci
al
co
n
d
it
io
n

at
a
si
n
gl
e
p
oi
n
t
in
ti
m
e.
B
al
an
ce
sh
ee
ts
ar
e
u
su
al
ly

91

Fi
na

nc
ia
l

S
ta
te
m
en

ts
he

lp
ke

ep
m
on

ey
or
ga

ni
ze

d
.

Fi
g
ur
e
2.
1
K
ee
p
in
g

M
on
ey

O
rg
an
iz
ed

Chapter 1 “Introduction to the Field of Financial Management” from Finance by Boundless is used under
the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported license. © 2014, boundless.com.
UMGC has modified this work and it is available under the original license.

C
h
a
p
te
r
1

In
tr
od

uc
tio

n
to

th
e
Fi
el
d
of

Fi
na

nc
ia
l

M
an

ag
em

en
t

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

go
al
s-
of
-
na

nc
ia
l-
m
an

ag
em

en
t/

D
e

ni
ng

Fi
na

nc
e

Fi
na

nc
e,

E
co

no
m
ic
s,

an
d
A
cc

ou
nt
in
g:

D
i
er
en

ce
s
an

d
C
om

m
on

al
iti
es

R
ol
e
of

Fi
na

nc
e
in

an
O
rg
an

iz
at
io
n

Ty
p
es

of
Fi
na

nc
ia
lD

ec
is
io
ns

:I
nv

es
tm

en
t
an

d
Fi
na

nc
in
g

Fu
nc

tio
ns

of
C
or
p
or
at
e
Fi
na

nc
e

Th
e
Fi
na

nc
ia
lM

an
ag

er
:A

n
O
ve

rv
ie
w

of
th
e
R
ol
e

R
ea

so
ns

to
S
tu
d
y
Fi
na

nc
e

Se
ct
io
n
1

In
tr
od

uc
in
g
Fi
na

nc
e

4

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
in
tr
od

uc
in
g-
n

an
ce

/

D
e

ni
ng

Fi
na

nc
e

Fi
na

nc
e
is

th
e
st
ud

y
of

fu
nd

m
an

ag
em

en
t
an

d
as

se
t

al
lo
ca

tio
n
ov

er
tim

e.

K
E
Y
P
O
IN
TS


T
h
e
tw
o
m
ai
n
d
ri
ve
rs
of
fi
n
an
ce
ar
e
th
e
ti
m
e
va
lu
e
of
m
on
ey

an
d
ri
sk
.


Si
n
ce
th
e
va
lu
e
of
as
se
ts
ch
an
ge
s
ov
er
ti
m
e,
fi
n
an
ce
se
ek
s
to

en
su
re
th
e
ch
an
ge
is
be
n
ef
ic
ia
lf
or
th
e
or
ga
n
iz
at
io
n
or

in
d
iv
id
u
al
.


F
in
an
ci
al
p
ro
fe
ss
io
n
al
s
ge
n
er
al
ly
op
er
at
e
in
an
en
vi
ro
n
m
en
t

of
u
n
ce
rt
ai
n
ty
w
h
er
e
th
ey
m
u
st
m
ak
e
fo
re
ca
st
s
ab
ou
t
fu
tu
re

ev
en
ts
.

O
ve
rv
ie
w

F
in
a
n
ce
is
th
e
st
u
d
y
of
fu
n
d
m
an
ag
em
en
t
an
d
as
se
t
al
lo
ca
ti
on
ov
er

ti
m
e.
F
u
n
d
s
co
n
si
st
of
m
on
ey
an
d
ot
h
er
a
ss
e
ts
.T
h
er
e
ar
e
m
an
y

d
if
fe
re
n
t
ty
p
es
of
fi
n
an
ce
,b
u
t
al
la
re
fu
n
d
am
en
ta
ll
y
co
n
ce
rn
ed
w
it
h

st
u
d
yi
n
g
h
ow
be
st
to
al
lo
ca
te
as
se
ts
in
d
if
fe
re
n
t
co
n
d
it
io
n
s
ov
er

ti
m
e.

Im
p
o
rt
a
n
ce
o
f
T
im
e

T
h
e
u
n
d
er
ly
in
g
d
ri
ve
r
be
h
in
d
al
lo
ff
in
an
ce
is
ti
m
e.
T
h
er
e
ar
e
tw
o

re
as
on
s
w
h
y
ti
m
e
is
so
im
p
or
ta
n
t
to
fi
n
an
ce
:

1.
T
im
e
va
lu
e
o
f
m
o
n
e
y:
F
or
a
n
u
m
be
r
of
re
as
on
s,
m
on
ey

to
d
ay
is
w
or
th
m
or
e
th
an
th
e
sa
m
e
am
ou
n
t
of
m
on
ey
in
th
e

fu
tu
re
.F
or
ex
am
p
le
,y
ou
w
ou
ld
ra
th
er
h
av
e
$
10
0
to
d
ay
th
an

$
10
0
in
10
ye
ar
s

th
e
m
on
ey
is
w
or
th
m
or
e
to
yo
u
n
ow
th
an

it
w
ou
ld
be
in
th
e
d
is
ta
n
t
fu
tu
re
.W
e
w
il
le
xp
lo
re
th
is
co
n
ce
p
t

in
gr
ea
te
r
d
ep
th
la
te
r
on
.

2.
R
is
k:
M
ak
in
g
an
in
ve
st
m
e
n
t
d
oe
s
n
ot
gu
ar
an
te
e
a
re
tu
rn
.

W
h
en
a
b
a
n
k
m
ak
es
a
lo
an
,t
h
ey
‘r
e
n
ot
su
re
th
e
d
e
b
to
r
w
il
l

p
ay
it
ba
ck
.T
h
er
e
is
a
ri
sk
th
at
th
e
p
er
so
n
w
il
lj
u
st
ta
ke
th
e

m
on
ey
an
d
ru
n
,t
h
e
d
eb
to
r
w
il
lf
il
e
fo
r
b
a
n
k
ru
p
tc
y,
or
,f
or

d
oz
en
s
of
ot
h
er
re
as
on
s,
th
e
ba
n
k
w
il
ln
ot
ge
t
th
e
m
on
ey
th
ey

le
n
t
ba
ck
.

T
h
e
fi
el
d
of
fi
n
an
ce
,h
ow
ev
er
,e
m
br
ac
es
ti
m
e.
F
in
an
ce
sa
ys
,”
Si
n
ce
I

kn
ow
as
se
ts
ch
an
ge
va
lu
e
ov
er
ti
m
e,
h
ow
d
o
I
u
se
th
at
to
ca
u
se
m
y

as
se
ts
to
ch
an
ge
va
lu
e
in
th
e
d
ir
ec
ti
on
I
w
an
t?
H
ow
d
o
I
m
an
ag
e

as
se
ts
so
th
at
th
ey
‘r
e
w
or
th
m
or
e
in
th
e
fu
tu
re
th
an
th
ey
ar
e
to
d
ay
?”

5

C
h
a
ll
e
n
g
e
s
in
F
in
a
n
ce

F
ig
u
ri
n
g
ou
t
w
h
at
to
d
o
w
it
h
as
se
ts
is
so
m
et
im
es
ea
sy
:a
ll
of
th
e

va
ri
a
b
le
s
ar
e
kn
ow
n
,a
n
d
th
er
e
is
cl
ea
rl
y
an
o
p
ti
o
n
th
at
is
be
tt
er

th
an
al
lt
h
e
ot
h
er
s.
M
os
t
of
th
e
ti
m
e,
th
is
is
n
‘t
th
e
ca
se
.F
in
an
ce

ge
n
er
al
ly
op
er
at
es
w
it
h
a
lo
t
of
u
n
ce
rt
ai
n
ty
.A
s
a
re
su
lt
,c
om
p
an
ie
s

h
ir
e
en
ti
re
d
ep
ar
tm
en
ts
of
p
eo
p
le
to
h
el
p
th
em
fi
gu
re
ou
t
w
h
ic
h

op
ti
on
is
be
st
(F
ig
u
re
1.
1 )
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/d
ef
in
in
g

fi
n
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

Fi
na

nc
e,

E
co

no
m
ic
s,

an
d

A
cc

ou
nt
in
g:

D
i
er
en

ce
s
an

d
C
om

m
on

al
iti
es

Fi
na

nc
e,

ec
on

om
ic
s,

an
d
ac

co
un

tin
g
ar
e
b
us

in
es

s
su

b
je
ct
s
w
ith

m
an

y
si
m
ila
rit
ie
s
an

d
d
i
er
en

ce
s;

ea
ch

is
a
d
is
tin

ct
e

ld
of

st
ud

y.

K
E
Y
P
O
IN
TS


F
in
an
ce
is
th
e
st
u
d
y
of
h
ow
to
op
ti
m
al
ly
al
lo
ca
te
as
se
ts
.

F
in
an
ce
is
fu
n
d
am
en
ta
ll
y
a
fo
rw
ar
d
lo
ok
in
g
fi
el
d
,c
on
ce
rn
ed

w
it
h
w
h
at
an
as
se
t
w
il
lb
e
w
or
th
in
th
e
fu
tu
re
.


E
co
n
om
ic
s
is
th
e
so
ci
al
sc
ie
n
ce
th
at
an
al
yz
es
th
e
p
ro
d
u
ct
io
n
,

d
is
tr
ib
u
ti
on
,a
n
d
co
n
su
m
p
ti
on
of
go
od
s
an
d
se
rv
ic
es
.


A
cc
ou
n
ti
n
g
is
th
e
p
ro
ce
ss
of
co
m
m
u
n
ic
at
in
g
fi
n
an
ci
al

in
fo
rm
at
io
n
ab
ou
t
a
bu
si
n
es
s.
A
cc
ou
n
ti
n
g
is
fu
n
d
am
en
ta
ll
y
a

ba
ck
w
ar
d
-l
oo
ki
n
g
fi
el
d
.

F
in
an
ce
,e
co
n
om
ic
s,
an
d
ac
co
u
n
ti
n
g
ar
e
bu
si
n
es
s
su
bj
ec
ts
w
it
h

m
an
y
si
m
il
ar
it
ie
s
an
d
d
if
fe
re
n
ce
s.
W
h
il
e
th
ey
in
fl
u
en
ce
ea
ch
ot
h
er
,

ea
ch
is
a
d
is
ti
n
ct
fi
el
d
of
st
u
d
y.

6

C
ha

rle
s
H
ol
le
y,
th
e
C
hi
ef

Fi
na

nc
ia
lO


ce

r
(C
FO

)
of

W
al
-M

ar
t,
is
in

ch
ar
ge

of
m
ak

in
g
su

re
al
lo

f
W
al
-M

ar
t’
s
as

se
ts

ar
e

al
lo
ca

te
d
as

op
tim

al
ly
as

p
os

si
b
le
.

Fi
g
ur
e
1.
1
W
al
m
ar
t
C
FO

F
in
a
n
ce

F
in
an
ce
is
th
e
st
u
d
y
of
h
ow
to
op
ti
m
al
ly
al
lo
ca
te
as
se
ts

h
ow

in
d
iv
id
u
al
s
an
d
or
ga
n
iz
at
io
n
s
sh
ou
ld
in
ve
st
as
se
ts
in
or
d
er
to
ge
t

th
e
h
ig
h
es
t
p
os
si
bl
e
re
tu
rn
gi
ve
n
ch
an
gi
n
g
co
n
d
it
io
n
s
ov
er
ti
m
e.

F
in
an
ce
is
fu
n
d
am
en
ta
ll
y
a
fo
rw
ar
d
lo
ok
in
g
fi
el
d
,c
on
ce
rn
ed
w
it
h

w
h
at
an
as
se
t
w
il
lb
e
w
or
th
in
th
e
fu
tu
re
.

E
co
n
o
m
ic
s

E
co
n
om
ic
s
is
a
so
ci
al
sc
ie
n
ce
th
at
an
al
yz
es
th
e
p
ro
d
u
ct
io
n
,

d
is
tr
ib
u
ti
o
n
,a
n
d
co
n
su
m
p
ti
on
of
go
od
s
an
d
se
rv
ic
es
.I
t
fo
cu
se
s

on
h
ow
ec
on
om
ic
ag
en
ts
(p
eo
p
le
,b
u
si
n
es
se
s,
an
d
go
ve
rn
m
en
t)

in
te
ra
ct
an
d
m
ak
e
d
ec
is
io
n
s.
E
co
n
om
ic
s
is
fu
n
d
am
en
ta
ll
y
th
e
st
u
d
y

of
ca
u
se
an
d
ef
fe
ct
.I
t
tr
ie
s
to
fi
gu
re
ou
t
h
ow
on
e
va
ri
ab
le
af
fe
ct
s

ec
on
om
ic
ag
en
ts
or
th
e
ec
on
om
y
as
a
w
h
ol
e.

A
cc
o
u
n
ti
n
g

A
cc
ou
n
ti
n
g
fo
cu
se
s
on
co
m
m
u
n
ic
at
in
g
a
bu
si
n
es
se
s’
fi
n
an
ci
al

in
fo
rm
at
io
n
.A
cc
ou
n
ti
n
g
is
fu
n
d
am
en
ta
ll
y
a
ba
ck
w
ar
d
-l
oo
ki
n
g
fi
el
d
,

co
n
ce
rn
ed
w
it
h
w
h
at
h
as
al
re
ad
y
h
ap
p
en
ed
fi
n
an
ci
al
ly
an
d
w
h
at

p
os
it
io
n
th
at
le
av
es
th
e
co
m
p
an
y
in
to
d
ay
.

If
ac
co
u
n
ti
n
g
is
ca
ll
ed
th
e
la
n
gu
ag
e
of
bu
si
n
es
s,
th
en
th
e
fi
n
a
n
ci
a
l

st
a
te
m
e
n
ts
th
at
ac
co
u
n
ta
n
ts
p
re
p
ar
e
ar
e
th
e
w
or
d
s
(F
ig
u
re
1.
2)
.

St
at
em
en
ts
ar
e
cr
ea
te
d
u
n
d
er
a
st
an
d
ar
d
iz
ed
se
t
of
ac
co
u
n
ti
n
g
la
w
s,

7

Th
e
b
al
an

ce
sh

ee
t
is
on

e
of

th
e
th
re
e
m
ai
n
n

an
ci
al

st
at
em

en
ts
.T

he
ot
he

r
tw

o
ar
e
th
e
ca

sh
o

w
st
at
em

en
t
an

d
th
e
in
co

m
e
st
at
em

en
t.

Fi
g
ur
e
1.
2
B
al
an
ce

sh
ee
t

w
h
ic
h
al
lo
w
s
on
e
to
ea
si
ly
co
m
p
ar
e
an
d
co
n
tr
as
t
co
m
p
an
ie
s.
T
h
is

in
d
ic
at
es
h
ow
fi
n
an
ci
al
ly
h
ea
lt
h
y
a
co
m
p
an
y
is
.

O
ve
rl
a
p

F
in
an
ce
,e
co
n
om
ic
s,
an
d
ac
co
u
n
ti
n
g
ov
er
la
p
in
a
lo
t
of
ar
ea
s.
F
or

ex
am
p
le
,a
n
in
ve
st
o
r
w
il
lu
se
ac
co
u
n
ti
n
g
to
se
e
w
h
et
h
er
a

co
m
p
an
y
h
as
sh
ow
n
p
as
t
fi
n
an
ci
al
su
cc
es
s
an
d
to
p
re
d
ic
t
w
h
at
th
e

co
m
p
an
y
w
il
ll
oo
k
li
ke
in
th
e
fu
tu
re
.P
ar
t
of
th
at
p
re
d
ic
ti
on

in
co
rp
or
at
es
ec
on
om
ic
s.
T
h
e
in
ve
st
or
w
an
ts
to
kn
ow
w
h
at
th
e

ov
er
al
le
co
n
om
y
w
il
ll
oo
k
li
ke
in
th
e
fu
tu
re
an
d
w
an
ts
to
kn
ow
h
ow

th
e
co
m
p
an
y
w
il
li
n
te
ra
ct
w
it
h
it
s
co
m
p
et
it
or
s.
T
h
e
in
ve
st
or
ca
n
u
se

fi
n
an
ce
to
fi
gu
re
ou
t
w
h
at
h
is
or
h
er
in
ve
st
m
en
t
w
il
lb
e
w
or
th
in
th
e

fu
tu
re
.

T
h
er
e
ar
e
fe
w
st
ro
n
g
d
el
in
ea
to
rs
be
tw
ee
n
fi
n
an
ce
,e
co
n
om
ic
s
an
d

ac
co
u
n
ti
n
g.
A
ll
th
re
e
fi
el
d
s
in
te
rm
in
gl
e
an
d
in
fl
u
en
ce
on
e
an
ot
h
er
.

It
is
al
m
os
t
im
p
os
si
bl
e
to
h
av
e
a
st
ro
n
g
gr
as
p
of
on
e
w
it
h
ou
t
at
le
as
t

a
ba
si
c
u
n
d
er
st
an
d
in
g
of
th
e
ot
h
er
tw
o.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/f
in
a
n
ce

ec
on
om
ic
s-
a
n
d
-a
cc
ou
n
ti
n
g
-d
if
fe
re
n
ce
s-
a
n
d
-c
om
m
on
a
li
ti
es
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
eB
ou
n
d
le
ss
is
a
n

op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

R
ol
e
of

Fi
na

nc
e
in

an
O
rg
an

iz
at
io
n

Th
e
p
rim

ar
y
ro
le

of
co

rp
or
at
e
n

an
ce

is
to

d
et
er
m
in
e

ho
w

b
es

t
to

m
ax

im
iz
e
sh

ar
eh

ol
d
er

va
lu
e.

K
E
Y
P
O
IN
TS


M
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e
ca
n
be
d
on
e
ov
er
th
e
lo
n
g-

te
rm
or
th
e
sh
or
t-
te
rm
,s
o
th
e
jo
b
of
th
e
fi
n
an
ce
d
ep
ar
tm
en
t

is
to
d
et
er
m
in
e
h
ow
be
st
to
d
o
bo
th
.S
om
et
im
es
,t
h
e
go
al
s

m
ay
ap
p
ea
r
to
co
n
tr
ad
ic
t
ea
ch
ot
h
er
.


T
h
e
fi
n
an
ce
d
ep
ar
tm
en
t
is
d
ev
ot
ed
to
th
e
ta
sk
of
fi
gu
ri
n
g
ou
t

h
ow
to
al
lo
ca
te
as
se
ts
fo
r
th
e
ov
er
ar
ch
in
g
go
al
of
m
ax
im
iz
in
g

sh
ar
eh
ol
d
er
va
lu
e.
T
h
ey
m
u
st
en
su
re
th
at
th
e
ri
gh
t
as
se
ts
ar
e

in
th
e
ri
gh
t
p
la
ce
at
th
e
ri
gh
t
ti
m
e.


T
h
e
fi
n
an
ce
d
ep
ar
tm
en
t
m
u
st
al
so
m
an
ag
e
th
e
co
m
p
an
y’
s

li
ab
il
it
ie
s
so
th
at
al
lp
ro
je
ct
s
ar
e
fi
n
an
ce
d
in
an
op
ti
m
al
w
ay

w
it
h
ou
t
ta
ki
n
g
on
to
o
m
u
ch
ri
sk
.

C
or
p
or
at
e
fi
n
an
ce
is
th
e
ar
ea
of
fi
n
an
ce
d
ea
li
n
g
w
it
h
m
on
et
ar
y

d
ec
is
io
n
s
th
at
bu
si
n
es
s
en
te
rp
ri
se
s
m
ak
e.
W
h
en
fi
n
an
ce
is
ta
lk
ed

ab
ou
t
in
th
e
co
n
te
xt
of
bu
si
n
es
s
d
ec
is
io
n
s,
it
is
ca
ll
ed
co
rp
or
at
e

fi
n
an
ce
(t
ec
h
n
ic
al
ly
,c
or
p
or
at
e
fi
n
an
ce
d
ea
ls
on
ly
w
it
h

co
rp
o
ra
ti
o
n
s,
w
h
il
e
m
an
ag
er
ia
lf
in
an
ce
d
ea
ls
w
it
h
al
lt
yp
es
of

co
m
p
an
ie
s,
bu
t
w
e
w
il
lu
se
th
e
te
rm
s
in
te
rc
h
an
ge
ab
ly
).
T
h
er
e
ar
e

8

ot
h
er
br
an
ch
es
of
fi
n
an
ce
su
ch
as
p
er
so
n
al
fi
n
an
ce
(i
n
d
iv
id
u
al
s

ta
ki
n
g
ca
re
of
th
ei
r
m
on
ey
)
an
d
p
u
bl
ic
fi
n
an
ce
(t
h
e
fi
n
an
ce
s
of
th
e

go
ve
rn
m
en
t)
.

T
h
e
p
ri
m
ar
y
go
al
of
co
rp
or
at
e
fi
n
an
ce
is
to
m
ax
im
iz
e
sh
a
re
h
o
ld
e
r

va
lu
e.
M
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e
ca
n
be
d
on
e
ov
er
th
e
lo
n
g-

te
rm
or
th
e
sh
or
t-
te
rm
,s
o
th
e
jo
b
of
th
e
fi
n
an
ce
d
ep
ar
tm
en
t
is
to

d
et
er
m
in
e
h
ow
be
st
to
d
o
bo
th
.S
om
et
im
es
,t
h
e
go
al
s
m
ay
ap
p
ea
r
to

be
in
co
m
p
et
it
io
n
w
it
h
on
e
an
ot
h
er
.F
or
ex
am
p
le
,a
co
m
p
an
y
ca
n

ch
oo
se
to
p
ay
d
iv
id
e
n
d
s
(a
sm
al
lp
ay
m
en
t
to
ea
ch
p
er
so
n
w
h
o

ow
n
s
a
st
o
ck
of
a
co
m
p
an
y)
,w
h
ic
h
in
cr
ea
se
s
sh
or
t-
te
rm

sh
ar
eh
ol
d
er
w
ea
lt
h
.H
ow
ev
er
,p
ay
in
g
d
iv
id
en
d
s
m
ea
n
s
th
at
th
e

m
on
ey
is
n
ot
be
in
g
in
ve
st
ed
in
lo
n
g-
te
rm
in
ve
st
m
en
ts
,w
h
ic
h
m
ay

ca
u
se
th
e
st
oc
k
p
ri
ce
to
in
cr
ea
se
m
or
e
in
th
e
fu
tu
re
,a
n
d
th
er
eb
y

in
cr
ea
si
n
g
lo
n
g-
te
rm
sh
ar
eh
ol
d
er
w
ea
lt
h
.

T
h
e
te
ch
n
iq
u
e
be
h
in
d
m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e
is
th
e

m
an
ag
em
en
t
of
as
se
ts
.T
h
is
m
ea
n
s
th
at
th
e
fi
n
an
ce
d
ep
ar
tm
en
t

fi
gu
re
s
ou
t
h
ow
to
be
st
in
ve
st
it
s
m
on
ey
.

F
or
ex
am
p
le
,a
co
m
p
an
y
co
u
ld
h
av
e
tw
o
p
ro
p
os
al
s
fr
om
th
e
R
&
D

d
ep
ar
tm
en
t
to
d
ev
el
op
d
if
fe
re
n
t
p
ro
d
u
ct
s,
bu
t
on
ly
en
ou
gh
m
on
ey

to
fu
n
d
on
e
(F
ig
u
re
1.
3)
.T
h
e
fi
n
an
ce
d
ep
ar
tm
en
t
w
il
lp
ro
je
ct
ou
t

th
e
fu
tu
re
re
ve
n
u
es
an
d
co
st
s
of
ea
ch
p
ro
d
u
ct
an
d
fi
gu
re
ou
t
w
h
ic
h

on
e,
if
ei
th
er
,i
s
w
or
th
th
e
m
on
ey
.

A
ls
o,
th
e
fi
n
an
ce
d
ep
ar
tm
en
t
w
il
ld
et
er
m
in
e
w
h
en
a
co
m
p
an
y

sh
ou
ld
ta
ke
on
a
li
a
b
il
it
y.
F
or
ex
am
p
le
,s
u
p
p
os
e
bo
th
p
ro
je
ct
s
ar
e

ab
so
lu
te
h
om
e-
ru
n
s,
bu
t
th
e
co
m
p
an
y
st
il
lo
n
ly
h
as
en
ou
gh
m
on
ey

to
fu
n
d
on
e.
T
h
e
fi
n
an
ce
d
ep
ar
tm
en
t
w
il
lf
ig
u
re
ou
t
if
th
e
co
m
p
an
y

sh
ou
ld
bo
rr
ow
m
on
ey
so
th
at
it
ca
n
fu
n
d
bo
th
.

T
h
e
ro
le
of
fi
n
an
ce
in
an
or
ga
n
iz
at
io
n
is
to
m
ak
e
su
re
th
at
m
on
ey
is

at
th
e
ri
gh
t
p
la
ce
at
th
e
ri
gh
t
ti
m
e.
A
co
m
p
an
y
w
an
ts
to
h
av
e
en
ou
gh

m
on
ey
to
p
ay
it
s
bi
ll
s,
bu
t
al
so
w
an
ts
to
in
ve
st
so
th
at
it
ca
n
gr
ow
in

9

A
p
p
le

us
ed

n
an

ci
al

an
al
ys
is
to

d
ec

id
e
to

fu
nd

th
e
d
ev

el
op

m
en

t
of

th
e

iP
od

.T
he

m
on

ey
al
lo
ca

te
d
d
ev

el
op

m
en

t
co

ul
d
no

t
b
e
us

ed
fo
r
an

ot
he

r
p
ro
je
ct
,b

ut
th
e
n

an
ce

d
ep

ar
tm

en
t
d
et
er
m
in
ed

th
e
iP
od

w
as

th
e
b
es

t
op

tio
n.

Fi
g
ur
e
1.
3
iP
od

To
uc
h

th
e
fu
tu
re
.T
h
e
fi
n
an
ce
d
ep
ar
tm
en
t
is
d
ev
ot
ed
to
th
e
ta
sk
of
fi
gu
ri
n
g

ou
t
h
ow
to
al
lo
ca
te
as
se
ts
to
d
o
so
,f
or
th
e
ov
er
ar
ch
in
g
go
al
of

m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/r
ol
e-
of

fi
n
a
n
ce
-i
n
-a
n
-o
rg
a
n
iz
a
ti
on
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

Ty
p
es

of
Fi
na

nc
ia
lD

ec
is
io
ns

:
In
ve

st
m
en

t
an

d
Fi
na

nc
in
g

In
ve

st
m
en

t
an

d
n

an
ci
ng

d
ec

is
io
ns

b
oi
ld

ow
n
to

ho
w

to
sp

en
d
m
on

ey
an

d
ho

w
to

b
or
ro
w

m
on

ey
.

K
E
Y
P
O
IN
TS


T
h
e
p
ri
m
ar
y
go
al
of
bo
th
in
ve
st
m
en
t
an
d
fi
n
an
ci
n
g
d
ec
is
io
n
s

is
to
m
ax
im
iz
e
sh
ar
eh
ol
d
er
va
lu
e.


In
ve
st
m
en
t
d
ec
is
io
n
s
re
vo
lv
e
ar
ou
n
d
h
ow
to
be
st
al
lo
ca
te

ca
p
it
al
to
m
ax
im
iz
e
th
ei
r
va
lu
e.


F
in
an
ci
n
g
d
ec
is
io
n
s
re
vo
lv
e
ar
ou
n
d
h
ow
to
p
ay
fo
r

in
ve
st
m
en
ts
an
d
ex
p
en
se
s.
C
om
p
an
ie
s
ca
n
u
se
ex
is
ti
n
g

ca
p
it
al
,b
or
ro
w
,o
r
se
ll
eq
u
it
y.

T
h
er
e
ar
e
tw
o
fu
n
d
am
en
ta
lt
yp
es
of
fi
n
an
ci
al
d
ec
is
io
n
s
th
at
th
e

fi
n
an
ce
te
am
n
ee
d
s
to
m
ak
e
in
a
bu
si
n
es
s:
in
ve
st
m
en
t
an
d

fi
n
a
n
ci
n
g
.T
h
e
tw
o
d
ec
is
io
n
s
bo
il
d
ow
n
to
h
ow
to
sp
en
d
m
on
ey

an
d
h
ow
to
bo
rr
ow
m
on
ey
.R
ec
al
lt
h
at
th
e
ov
er
al
lg
oa
lo
ff
in
an
ci
al

d
ec
is
io
n
s
is
to
m
ax
im
iz
e
sh
ar
eh
ol
d
er
va
lu
e,
so
ev
er
y
d
ec
is
io
n
m
u
st

be
p
u
t
in
th
at
co
n
te
xt
.

10

In
ve
st
m
e
n
t

A
n
in
ve
st
m
en
t
d
ec
is
io
n
re
vo
lv
es
ar
ou
n
d
sp
en
d
in
g
ca
p
it
a
l
on
as
se
ts

th
at
w
il
ly
ie
ld
th
e
h
ig
h
es
t
re
tu
rn
fo
r
th
e
co
m
p
an
y
ov
er
a
d
es
ir
ed

ti
m
e
p
e
ri
o
d
.I
n
ot
h
er
w
or
d
s,
th
e
d
ec
is
io
n
is
ab
ou
t
w
h
at
to
bu
y
so

th
at
th
e
co
m
p
an
y
w
il
lg
ai
n
th
e
m
os
t
va
lu
e.

T
o
d
o
so
,t
h
e
co
m
p
an
y
n
ee
d
s
to
fi
n
d
a
ba
la
n
ce
be
tw
ee
n
it
s
sh
or
t-

te
rm
an
d
lo
n
g-
te
rm
go
al
s.
In
th
e
ve
ry
sh
or
t-
te
rm
,a
co
m
p
an
y
n
ee
d
s

m
on
ey
to
p
ay
it
s
bi
ll
s,
bu
t
ke
ep
in
g
al
lo
fi
ts
ca
sh
m
ea
n
s
th
at
it
is
n
‘t

in
ve
st
in
g
in
th
in
gs
th
at
w
il
lh
el
p
it
gr
ow
in
th
e
fu
tu
re
.O
n
th
e
ot
h
er

en
d
of
th
e
sp
ec
tr
u
m
is
a
p
u
re
ly
lo
n
g-
te
rm
vi
ew
.A
co
m
p
an
y
th
at

in
ve
st
s
al
lo
fi
ts
m
on
ey
w
il
lm
ax
im
iz
e
it
s
lo
n
g-
te
rm
gr
ow
th

p
ro
sp
ec
ts
,b
u
t
if
it
d
oe
sn
‘t
h
ol
d
en
ou
gh
ca
sh
,i
t
ca
n
‘t
p
ay
it
s
bi
ll
s
an
d

w
il
lg
o
ou
t
of
bu
si
n
es
s
so
on
.C
om
p
an
ie
s
th
u
s
n
ee
d
to
fi
n
d
th
e
ri
gh
t

m
ix
be
tw
ee
n
lo
n
g-
te
rm
an
d
sh
or
t-
te
rm
in
ve
st
m
en
t.

T
h
e
in
ve
st
m
en
t
d
ec
is
io
n
al
so
co
n
ce
rn
s
w
h
at
sp
ec
if
ic
in
ve
st
m
en
ts
to

m
ak
e.
Si
n
ce
th
er
e
is
n
o
gu
ar
an
te
e
of
a
re
tu
rn
fo
r
m
os
t
in
ve
st
m
en
ts
,

th
e
fi
n
an
ce
d
ep
ar
tm
en
t
m
u
st
d
et
er
m
in
e
an
e
x
p
e
ct
e
d
re
tu
rn
.T
h
is

re
tu
rn
is
n
ot
gu
ar
an
te
ed
,b
u
t
is
th
e
av
er
ag
e
re
tu
rn
on
an
in
ve
st
m
en
t

if
it
w
er
e
to
be
m
ad
e
m
an
y
ti
m
es
.

T
h
e
in
ve
st
m
en
ts
m
u
st
m
ee
t
th
re
e
m
ai
n
cr
it
er
ia
:

1.
It
m
u
st
m
ax
im
iz
e
th
e
va
lu
e
of
th
e
fi
rm
,a
ft
er
co
n
si
d
er
in
g
th
e

am
ou
n
t
of
ri
sk
th
e
co
m
p
an
y
is
co
m
fo
rt
ab
le
w
it
h
(r
is
k

av
er
si
on
).

2.
It
m
u
st
be
fi
n
an
ce
d
ap
p
ro
p
ri
at
el
y
(w
e
w
il
lt
al
k
m
or
e
ab
ou
t

th
is
sh
or
tl
y)
.

3.
If
th
er
e
is
n
o
in
ve
st
m
en
t
op
p
or
tu
n
it
y
th
at
fi
ll
s
(1
)
an
d
(2
),
th
e

ca
sh
m
u
st
be
re
tu
rn
ed
to
sh
ar
eh
ol
d
er
in
or
d
er
to
m
ax
im
iz
e

sh
ar
eh
ol
d
er
va
lu
e.

F
in
a
n
ci
n
g

A
ll
fu
n
ct
io
n
s
of
a
co
m
p
an
y
n
ee
d
to
be
p
ai
d
fo
r
on
e
w
ay
or
an
ot
h
er
.

It
is
u
p
to
th
e
fi
n
an
ce
d
ep
ar
tm
en
t
to
fi
gu
re
ou
t
h
ow
to
p
ay
fo
r
th
em

th
ro
u
gh
th
e
p
ro
ce
ss
of
fi
n
an
ci
n
g.

T
h
er
e
ar
e
tw
o
w
ay
s
to
fi
n
an
ce
an
in
ve
st
m
en
t:
u
si
n
g
a
co
m
p
an
y’
s

ow
n
m
on
ey
or
by
ra
is
in
g
m
on
ey
fr
om
ex
te
rn
al
fu
n
d
er
s.
E
ac
h
h
as
it
s

ad
va
n
ta
ge
s
an
d
d
is
ad
va
n
ta
ge
s.

T
h
er
e
ar
e
tw
o
w
ay
s
to
ra
is
e
m
on
ey
fr
om
ex
te
rn
al
fu
n
d
er
s:
by
ta
ki
n
g

on
d
e
b
t
or
se
ll
in
g
e
q
u
it
y.
T
ak
in
g
on
d
eb
t
is
th
e
sa
m
e
as
ta
ki
n
g
on
a

lo
an
.T
h
e
lo
an
h
as
to
be
p
ai
d
ba
ck
w
it
h
in
te
re
st
,w
h
ic
h
is
th
e
co
st

of
bo
rr
ow
in
g.
Se
ll
in
g
eq
u
it
y
is
es
se
n
ti
al
ly
se
ll
in
g
p
ar
t
of
yo
u
r

co
m
p
an
y
(F
ig
u
re
1.
4)
.W
h
en
a
co
m
p
an
y
go
es
p
u
bl
ic
,f
or
ex
am
p
le
,

11

th
ey
d
ec
id
e
to
se
ll
th
ei
r
co
m
p
an
y

to
th
e
p
u
bl
ic
in
st
ea
d
of
to
p
ri
va
te

in
ve
st
or
s.
G
oi
n
g
p
u
bl
ic
en
ta
il
s

se
ll
in
g
st
oc
ks
w
h
ic
h
re
p
re
se
n
t

ow
n
in
g
a
sm
al
lp
ar
t
of
th
e

co
m
p
an
y.
T
h
e
co
m
p
an
y
is
se
ll
in
g

it
se
lf
to
th
e
p
u
bl
ic
in
re
tu
rn
fo
r

m
on
ey
.

E
ve
ry
in
ve
st
m
en
t
ca
n
be
fi
n
an
ce
d

th
ro
u
gh
co
m
p
an
y
m
on
ey
or
fr
om

ex
te
rn
al
fu
n
d
er
s.
It
is
th
e

fi
n
an
ci
n
g
d
ec
is
io
n
p
ro
ce
ss
th
at

d
et
er
m
in
es
th
e
op
ti
m
al
w
ay
to

fi
n
an
ce
th
e
in
ve
st
m
en
t.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/t
yp
es
-o
f-

fi
n
a
n
ci
a
l-
d
ec
is
io
n
s-
in
ve
st
m
en
t-
a
n
d
-f
in
a
n
ci
n
g
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

Fu
nc

tio
ns

of
C
or
p
or
at
e

Fi
na

nc
e

C
or
p
or
at
e
n

an
ce

ut
ili
ze

s
to
ol
s
an

d
an

al
ys

is
to

m
ak

e
so

un
d
n

an
ci
al

b
us

in
es

s
d
ec

is
io
ns

.

K
E
Y
P
O
IN
TS


T
h
e
fi
n
an
ce
gr
ou
p
is
in
ch
ar
ge
of
bu
d
ge
ti
n
g.
It
w
il
ll
oo
k
fo
r

th
e
op
ti
m
al
al
lo
ca
ti
on
of
as
se
ts
ac
ro
ss
al
lb
u
si
n
es
s
fu
n
ct
io
n
s.


C
or
p
or
at
e
fi
n
an
ce
d
ec
id
es
h
ow
be
st
to
fi
n
an
ce
p
ro
je
ct
s.
T
h
e

d
ep
ar
tm
en
t
ca
n
ei
th
er
u
se
ex
is
ti
n
g
in
te
rn
al
fu
n
d
s,
bo
rr
ow

m
on
ey
,o
r
se
ll
eq
u
it
y.


T
h
e
fi
n
an
ce
gr
ou
p
m
u
st
ba
la
n
ce
bo
th
sh
or
t-
an
d
lo
n
g-
te
rm

co
m
p
an
y
go
al
s,
th
ou
gh
th
e
ov
er
ar
ch
in
g
go
al
is
to
m
ax
im
iz
e

sh
ar
eh
ol
d
er
va
lu
e.

C
or
p
or
at
e
fi
n
an
ce
d
ea
ls
w
it
h
m
on
et
ar
y
d
ec
is
io
n
s
th
at
bu
si
n
es
s

en
te
rp
ri
se
s
m
ak
e
an
d
th
e
to
ol
s
an
d
an
al
ys
is
u
ti
li
ze
d
to
m
ak
e
th
e

d
ec
is
io
n
s.
C
or
p
or
at
e
fi
n
an
ce
is
co
n
ce
rn
ed
p
ri
m
ar
il
y
w
it
h
m
ak
in
g

in
ve
st
m
en
t
an
d
fi
n
an
ci
n
g
d
ec
is
io
n
s;
th
at
is
,m
ak
in
g
su
re
th
at

m
on
ey
is
be
in
g
u
se
d
in
th
e
be
st
w
ay
.

T
h
e
co
rp
or
at
e
fi
n
an
ce
d
ep
ar
tm
en
t
of
a
co
m
p
an
y
is
in
ch
ar
ge
of

bu
d
ge
ti
n
g.
M
an
ag
em
en
t
m
u
st
al
lo
ca
te
li
m
it
ed
re
so
u
rc
es
be
tw
ee
n

12

If
a
co

m
p
an

y
ch

oo
se

s
to

n
an

ce
an

in
ve

st
m
en

t
b
y
se

lli
ng

eq
ui
ty
,t
he

y
m
ay

is
su

e
st
oc

ks
on

an
ex

ch
an

ge
lik
e
th
e

N
ew

Yo
rk

S
to
ck

E
xc

ha
ng

e

Fi
g
ur
e
1.
4
N
Y
S
E

co
m
p
et
in
g
op
p
or
tu
n
it
ie
s;
si
n
ce
a
d
ol
la
r
ca
n
n
ot
be
u
se
d
fo
r
m
or
e

th
an
on
e
p
ro
je
ct
at
on
ce
,i
t
is
a
ch
al
le
n
ge
to
d
et
er
m
in
e
h
ow
m
u
ch

m
on
ey
sh
ou
ld
be
al
lo
ca
te
d
to
ea
ch
p
ar
t
of
th
e
bu
si
n
es
s.

In
d
et
er
m
in
in
g
h
ow
to
al
lo
ca
te
m
on
ey
,t
h
e
fi
n
an
ce
gr
ou
p
m
u
st
al
so

fi
gu
re
ou
t
w
h
er
e
th
e
m
on
ey
w
il
lb
e
be
st
u
ti
li
ze
d
.T
h
is
re
qu
ir
es

va
lu
in
g
p
ro
je
ct
s
an
d
bu
si
n
es
s
fu
n
ct
io
n
s.
A
la
rg
e
el
em
en
t
of
fi
n
an
ce

is
d
ec
id
in
g
h
ow
ex
ac
tl
y
to
va
lu
e
a
p
ro
je
ct
.T
h
er
e
ar
e
a
n
u
m
be
r
of

va
ri
ab
le
s

in
fl
a
ti
o
n
,e
xp
ec
te
d
re
ve
n
u
es
,e
xp
ec
te
d
co
st
s,
le
n
gt
h
of

ti
m
e
re
qu
ir
ed

th
at
ar
e
al
li
n
co
rp
or
at
ed
in
to
th
e
va
lu
a
ti
o
n

p
ro
ce
ss
.F
in
d
in
g
th
e
tr
u
e
va
lu
e
of
a
p
ro
je
ct
is
of
te
n
w
ro
u
gh
t
w
it
h

u
n
ce
rt
ai
n
ty
,b
u
t
w
it
h
ou
t
an
ac
cu
ra
te
va
lu
at
io
n
,a
co
m
p
an
y
m
ay

al
lo
ca
te
it
s
re
so
u
rc
es
su
b-
op
ti
m
al
ly
.

T
h
e
co
rp
or
at
e
fi
n
an
ce
d
ep
ar
tm
en
t
m
u
st
al
so
d
et
er
m
in
e
h
ow
to

fi
n
an
ce
p
ro
je
ct
s.
A
co
m
p
an
y
ca
n
fi
n
an
ce
a
p
ro
je
ct
by
u
si
n
g
ei
th
er

in
te
rn
al
fu
n
d
s
(m
on
ey
th
e
co
m
p
an
y
al
re
ad
y
h
as
),
bo
rr
ow
in
g,
or

se
ll
in
g
eq
u
it
y.
E
ac
h
op
ti
on
ca
rr
ie
s
a
ce
rt
ai
n
co
st
th
at
ca
n
be

qu
an
ti
fi
ed
.I
t
is
th
e
jo
b
of
th
e
fi
n
an
ce
d
ep
ar
tm
en
t
to
m
ak
e
su
re
th
at

th
e
ov
er
al
lc
os
t
is
n
‘t
to
o
h
ig
h
an
d
th
at
th
e
co
m
p
an
y
h
as
an
op
ti
m
al

m
ix
of
al
lt
h
re
e
st
ra
te
gi
es
.

O
n
e
p
u
bl
ic
jo
b
fu
n
ct
io
n
of
co
rp
or
at
e
fi
n
an
ce
is
d
et
er
m
in
in
g
w
h
et
h
er

or
n
ot
th
e
co
m
p
an
y
p
ay
s
a
d
iv
id
en
d
,a
n
d
if
so
,h
ow
m
u
ch
.T
h
e

co
m
p
an
y
h
as
a
re
sp
on
si
bi
li
ty
to
m
ax
im
iz
e
sh
ar
eh
ol
d
er
va
lu
e,
bu
t

th
at
ca
n
be
ac
h
ie
ve
d
in
m
u
lt
ip
le
w
ay
s.
P
ay
in
g
a
d
iv
id
en
d
p
u
ts
ca
sh

d
ir
ec
tl
y
in
th
e
h
an
d
s
of
sh
ar
eh
ol
d
er
s,
in
cr
ea
si
n
g
sh
ar
eh
ol
d
er
va
lu
e.

H
ow
ev
er
,p
ay
in
g
a
d
iv
id
en
d
m
ea
n
s
th
at
m
on
ey
is
n
ot
be
in
g

re
in
ve
st
ed
in
th
e
co
m
p
an
y.
If
a
co
m
p
an
y
d
oe
sn
‘t
p
ay
a
d
iv
id
en
d
an
d

in
st
ea
d
ch
oo
se
s
to
re
in
ve
st
th
e
m
on
ey
,t
h
e
va
lu
e
of
th
e
co
m
p
an
y

w
il
lp
re
su
m
ab
ly
in
cr
ea
se
,i
n
tu
rn
in
cr
ea
si
n
g
sh
ar
eh
ol
d
er
va
lu
e.
T
h
e

fi
n
an
ce
d
ep
ar
tm
en
t
d
et
er
m
in
es
w
h
ic
h
op
ti
on
m
ax
im
iz
es

sh
ar
eh
ol
d
er
va
lu
e.

L
as
tl
y,
th
e
fi
n
an
ce
d
ep
ar
tm
en
t
m
u
st
al
so
en
su
re
th
at
th
er
e
is
a
go
od

ba
la
n
ce
be
tw
ee
n
lo
n
g-
an
d
sh
or
t-
te
rm
go
al
s.
T
h
e
co
m
p
an
y
m
u
st

h
av
e
en
ou
gh
as
se
ts
to
co
ve
r
sh
or
t-
te
rm
co
st
s,
re
fe
rr
ed
to
as

w
o
rk
in
g
ca
p
it
a
l
m
an
ag
em
en
t,
an
d
en
ou
gh
in
ve
st
ed
to
en
su
re
th
e

co
m
p
an
y
h
as
lo
n
g-
te
rm
gr
ow
th
(F
ig
u
re
1.
5)
.

13

P
ur
ch

as
in
g
ne

w
m
ac

hi
ne

ry
re
q
ui
re
s

a
va

lu
at
io
n
of

al
l

eq
ui
p
m
en

t,
an

ac
cu

ra
te

id
ea

of
th
e

to
ta
lc

os
t
ov

er
tim

e,
an

d
a
w
ay

to
n

an
ce

th
e

p
ur
ch

as
e
w
hi
le

le
av

in
g
en

ou
gh

ca
sh

fo
r
ot
he

r
up

co
m
in
g
co

st
s.

Fi
g
ur
e
1.
5
Fa
ct
or
y

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/f
u
n
ct
io
n
s-
of

co
rp
or
a
te
-f
in
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

Th
e
Fi
na

nc
ia
lM

an
ag

er
:A

n
O
ve

rv
ie
w

of
th
e
R
ol
e

Th
e
n

an
ci
al

m
an

ag
er

is
re
sp

on
si
b
le

fo
r
b
ud

ge
tin

g,
p
ro
je
ct
in
g
ca

sh
o

w
s,

an
d
d
et
er
m
in
in
g
ho

w
to

in
ve

st
an

d
n

an
ce

p
ro
je
ct
s.

K
E
Y
P
O
IN
TS


T
h
e
fi
n
an
ce
m
an
ag
er
is
re
sp
on
si
bl
e
fo
r
kn
ow
in
g
h
ow
m
u
ch

th
e
p
ro
d
u
ct
is
ex
p
ec
te
d
to
co
st
an
d
h
ow
m
u
ch
re
ve
n
u
e
it
is

ex
p
ec
te
d
to
ea
rn
so
th
at
s/
h
e
ca
n
in
ve
st
th
e
ap
p
ro
p
ri
at
e

am
ou
n
t
in
th
e
p
ro
d
u
ct
.


T
h
e
fi
n
an
ce
m
an
ag
er
u
se
s
a
n
u
m
be
r
of
to
ol
s,
su
ch
as
se
tt
in
g

th
e
co
st
of
ca
p
it
al
(t
h
e
co
st
of
m
on
ey
ov
er
ti
m
e,
w
h
ic
h
w
il
lb
e

ex
p
lo
re
d
in
fu
rt
h
er
d
ep
th
la
te
r
on
)
to
d
et
er
m
in
e
th
e
co
st
of

fi
n
an
ci
n
g.


T
h
e
fi
n
an
ci
al
m
an
ag
er
m
u
st
n
ot
ju
st
be
an
ex
p
er
t
at
fi
n
an
ci
al

p
ro
je
ct
io
n
s;
s/
h
e
al
so
m
u
st
h
av
e
a
gr
as
p
of
th
e
ac
co
u
n
ti
n
g

sy
st
em
s
in
p
la
ce
an
d
th
e
st
ra
te
gy
of
th
e
bu
si
n
es
s
ov
er
th
e

co
m
in
g
ye
ar
s.


T
h
e
h
ea
d
of
th
e
fi
n
an
ci
al
d
ep
ar
tm
en
t
is
th
e
ch
ie
ff
in
an
ci
al

of
fi
ce
r
(C
F
O
)
w
h
o
is
re
sp
on
si
bl
e
fo
r
al
lf
in
an
ci
al
d
ec
is
io
n
s

an
d
re
p
or
ti
n
g
d
on
e
in
th
e
co
m
p
an
y.

14

T
h
e
R
o
le
o
f
th
e
F
in
a
n
ci
a
l
M
a
n
a
g
e
r

T
h
e
ro
le
of
a
fi
n
an
ci
al
m
an
ag
er
is
a
co
m
p
le
x
on
e,
re
qu
ir
in
g
bo
th
an

u
n
d
er
st
an
d
in
g
of
h
ow
th
e
bu
si
n
es
s
fu
n
ct
io
n
s
as
a
w
h
ol
e
an
d

sp
ec
ia
li
ze
d
fi
n
an
ci
al
kn
ow
le
d
ge
.T
h
e
h
ea
d
of
th
e
fi
n
an
ci
al

op
er
at
io
n
s
is
ca
ll
ed
th
e
ch
ie
ff
in
an
ci
al
of
fi
ce
r
(C
F
O
).

T
h
e
st
ru
ct
u
re
of
th
e
co
m
p
an
y
va
ri
es
,b
u
t
a
fi
n
an
ci
al
m
an
ag
er
is

re
sp
on
si
bl
e
fo
r
th
e
sa
m
e
ge
n
er
al
th
in
gs
ac
ro
ss
th
e
bo
ar
d
.T
h
e

m
an
ag
er
is
re
sp
on
si
bl
e
fo
r
m
an
ag
in
g
th
e
bu
d
ge
t.
T
h
is
in
vo
lv
es

al
lo
ca
ti
n
g
m
on
ey
to
d
if
fe
re
n
t
p
ro
je
ct
s
an
d
se
gm
en
ts
so
th
at
th
e

bu
si
n
es
s
ca
n
co
n
ti
n
u
e
op
er
at
in
g,
bu
t
th
e
be
st
p
ro
je
ct
s
ge
t
th
e

n
ec
es
sa
ry
fu
n
d
in
g.

T
h
e
m
an
ag
er
is
re
sp
on
si
bl
e
fo
r
fi
gu
ri
n
g
ou
t
th
e
fi
n
an
ci
al
p
ro
je
ct
io
n
s

fo
r
th
e
bu
si
n
es
s.
T
h
e
d
ev
el
op
m
en
t
of
a
n
ew
p
ro
d
u
ct
,f
or
ex
am
p
le
,

re
qu
ir
es
an
in
ve
st
m
en
t
of
ca
p
it
al
ov
er
ti
m
e.
T
h
e
fi
n
an
ce
m
an
ag
er
is

re
sp
on
si
bl
e
fo
r
kn
ow
in
g
h
ow
m
u
ch
th
e
p
ro
d
u
ct
is
ex
p
ec
te
d
to
co
st

an
d
h
ow
m
u
ch
re
ve
n
u
e
it
is
ex
p
ec
te
d
to
ea
rn
so
th
at
s/
h
e
ca
n
in
ve
st

th
e
ap
p
ro
p
ri
at
e
am
ou
n
t
in
th
e
p
ro
d
u
ct
.T
h
is
is
a
lo
t
to
u
gh
er
th
an
it

so
u
n
d
s
be
ca
u
se
th
er
e
is
n
o
ac
cu
ra
te
fi
n
an
ci
al
d
at
a
fo
r
th
e
fu
tu
re
.

T
h
e
fi
n
an
ce
m
an
ag
er
w
il
lu
se
d
at
a
an
al
ys
es
an
d
ed
u
ca
te
d
gu
es
se
s
to

ap
p
ro
xi
m
at
e
th
e
va
lu
e,
bu
t
it
‘s
ex
tr
em
el
y
ra
re
th
at
s/
h
e
ca
n
be
10
0
%

su
re
of
th
e
fu
tu
re
ca
sh
fl
o
w
s.

F
ig
u
ri
n
g
ou
t
th
e
va
lu
e
of
an
op
er
at
io
n
is
on
e
th
in
g,
bu
t
it
is
an
ot
h
er

th
in
g
to
fi
gu
re
ou
t
if
it
‘s
w
or
th
fi
n
an
ci
n
g.
T
h
er
e
is
a
co
st
to
in
ve
st
in
g

m
on
ey
,e
it
h
er
th
e
o
p
p
o
rt
u
n
it
y
co
st
of
n
ot
in
ve
st
in
g
it
el
se
w
h
er
e,

th
e
co
st
of
bo
rr
ow
in
g
m
on
ey
,o
r
th
e
co
st
of
se
ll
in
g
eq
u
it
y.
T
h
e

fi
n
an
ce
m
an
ag
er
u
se
s
a
n
u
m
be
r
of
to
ol
s,
su
ch
as
se
tt
in
g
th
e
co
st
o
f

ca
p
it
a
l
(t
h
e
co
st
of
m
on
ey
ov
er
ti
m
e,
w
h
ic
h
w
il
lb
e
ex
p
lo
re
d
in

fu
rt
h
er
d
ep
th
la
te
r
on
)
to
d
et
er
m
in
e
th
e
co
st
of
fi
n
an
ci
n
g.

A
t
th
e
sa
m
e
ti
m
e
th
at
th
is
is
go
in
g
on
,t
h
e
fi
n
an
ci
al
m
an
ag
er
m
u
st

al
so
en
su
re
th
at
th
e
bu
si
n
es
s
h
as
en
ou
gh
ca
sh
to
p
ay
u
p
co
m
in
g

fi
n
an
ci
al
ob
li
ga
ti
on
s
w
it
h
ou
t
h
oa
rd
in
g
as
se
ts
th
at
co
u
ld
ot
h
er
w
is
e

15

Th
e
n

an
ce

m
an

ag
er

m
us

t
co

lla
b
or
at
e
ac

ro
ss

b
us

in
es

s
fu
nc

tio
ns

in
or
d
er

to
d
et
er
m
in
e
ho

w
to

b
es

t
al
lo
ca

te
an

d
m
an

ag
e
as

se
ts
.

Fi
g
ur
e
1.
6

C
ol
la
b
or
at
io
n

be
in
ve
st
ed
.T
h
is
is
a
d
el
ic
at
e
d
an
ce
be
tw
ee
n
sh
or
t-
te
rm
an
d
lo
n
g-

te
rm
re
sp
on
si
bi
li
ti
es
.

T
h
e
C
F
O
is
th
e
h
ea
d
of
th
e
fi
n
an
ci
al
d
ep
ar
tm
en
t
an
d
is
re
sp
on
si
bl
e

fo
r
al
lo
ft
h
e
sa
m
e
th
in
gs
as
h
is
/h
er
su
bo
rd
in
at
es
,b
u
t
is
al
so
th
e

p
er
so
n
w
h
o
h
as
to
si
gn
of
ft
h
at
al
lo
ft
h
e
co
m
p
an
y’
s
fi
n
an
ci
al

st
at
em
en
ts
ar
e
ac
cu
ra
te
.S
/h
e
is
al
so
re
sp
on
si
bl
e
fo
r
fi
n
an
ci
al

p
la
n
n
in
g
an
d
re
co
rd
-k
ee
p
in
g,
as
w
el
la
s
fi
n
an
ci
al
re
p
or
ti
n
g
to

h
ig
h
er
m
an
ag
em
en
t.

T
h
e
fi
n
an
ci
al
m
an
ag
er
is
n
ot
ju
st
an
ex
p
er
t
at
fi
n
an
ci
al
p
ro
je
ct
io
n
s,

s/
h
e
m
u
st
al
so
h
av
e
a
gr
as
p
of
th
e
ac
co
u
n
ti
n
g
sy
st
em
s
in
p
la
ce
an
d

th
e
st
ra
te
g
y
of
th
e
bu
si
n
es
s
ov
er
th
e
co
m
in
g
ye
ar
s
(F
ig
u
re
1.
6)
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/t
he

fi
n
a
n
ci
a
l-
m
a
n
a
g
er
-a
n
-o
ve
rv
ie
w
-o
f-
th
e-
ro
le
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

R
ea

so
ns

to
S
tu
d
y
Fi
na

nc
e

Fi
na

nc
e
is

re
le
va

nt
to

al
lb

us
in
es

s
fu
nc

tio
ns

,t
he

m
ac

ro
ec

on
om

y,
an

d
p
er
so

na
l

na
nc

es
.

K
E
Y
P
O
IN
TS


F
in
an
ce
p
la
ys
an
in
vo
lv
ed
ro
le
in
th
e
h
ea
lt
h
of
th
e
ov
er
al
l

ec
on
om
y,
w
h
ic
h
im
p
ac
ts
ev
er
yo
n
e,
re
ga
rd
le
ss
of
w
h
et
h
er
or

n
ot
th
ey
h
av
e
st
u
d
ie
d
fi
n
an
ce
.


L
ik
e
co
m
p
an
ie
s,
in
d
iv
id
u
al
s
ar
e
fa
ce
d
w
it
h
in
ve
st
m
en
t
an
d

fi
n
an
ci
n
g
d
ec
is
io
n
s.
H
av
in
g
a
fi
rm
gr
as
p
of
fi
n
an
ce
w
il
lh
el
p

in
d
iv
id
u
al
s
m
ak
e
th
os
e
d
ec
is
io
n
s.


A
ll
bu
si
n
es
se
s
fu
n
ct
io
n
s
d
ea
lw
it
h
fi
n
an
ce
be
ca
u
se
th
ey
n
ee
d

to
be
ab
le
to
m
ak
e
th
e
fi
n
an
ci
al
ar
gu
m
en
t
fo
r
th
e
fu
n
d
in
g
of

th
ei
r
p
ro
je
ct
s
an
d
to
m
an
ag
e
th
ei
r
bu
d
ge
ts
.

T
h
e
st
u
d
y
of
fi
n
an
ce
of
te
n
fe
el
s
a
lo
t
n
ar
ro
w
er
th
an
it
re
al
ly
is
.

T
h
er
e
is
a
lo
t
of
ta
lk
of
is
su
in
g
b
o
n
d
s
or
p
ri
ci
n
g
p
ro
je
ct
s
w
h
ic
h

be
li
es
h
ow
re
le
va
n
t
fi
n
an
ce
is
to
ev
er
yd
ay
li
fe
,r
eg
ar
d
le
ss
of
w
h
et
h
er

or
n
ot
yo
u
h
av
e
an
y
d
es
ir
e
of
w
or
ki
n
g
in
fi
n
an
ce
.

U
n
d
e
rs
ta
n
d
in
g
th
e
E
co
n
o
m
ic
E
n
vi
ro
n
m
e
n
t

F
in
an
ce
p
la
ys
an
in
vo
lv
ed
ro
le
in
th
e
h
ea
lt
h
of
th
e
ov
er
al
le
co
n
om
y,

w
h
ic
h
im
p
ac
ts
ev
er
yo
n
e,
re
ga
rd
le
ss
of
w
h
et
h
er
or
n
ot
th
ey
h
av
e

st
u
d
ie
d
fi
n
an
ce
.T
h
e
fi
el
d
of
fi
n
an
ce
ex
p
la
in
s
w
h
y
th
e
20
0
8

16

re
ce
ss
io
n
oc
cu
rr
ed
;i
t
is
th
e
re
as
on
w
h
y
p
eo
p
le
ca
re
ab
ou
t
h
ow
th
e

st
oc
k
m
ar
ke
t
is
d
oi
n
g
ea
ch
d
ay
(F
ig
u
re
1.
7)
;a
n
d
it
ar
ti
cu
la
te
s
w
h
y

bu
si
n
es
se
s
an
d
go
ve
rn
m
en
ts
m
ak
e
so
m
e
of
th
e
d
ec
is
io
n
s
th
ey
d
o.

F
in
an
ce
p
la
ys
a
ro
le
in
m
an
y
of
th
e
st
or
ie
s
in
th
e
n
ew
s
ev
er
y
d
ay
,

w
h
ic
h
m
ea
n
s
th
at
th
os
e
w
h
o
u
n
d
er
st
an
d
fi
n
an
ce
h
av
e
a
be
tt
er
gr
as
p

on
h
ow
th
e
ev
en
ts
of
th
e
w
or
ld
af
fe
ct
th
em
.

P
e
rs
o
n
a
l
F
in
a
n
ce
s

E
ac
h
p
er
so
n
w
il
la
ls
o
h
av
e
to
m
an
ag
e
h
is
or
h
er
ow
n
p
er
so
n
al

fi
n
an
ce
s.
L
ik
e
co
rp
or
at
io
n
s,
in
d
iv
id
u
al
s
ar
e
fa
ce
d
w
it
h
in
ve
st
m
en
t

an
d
fi
n
an
ci
n
g
d
ec
is
io
n
s.
In
or
d
er
to
in
ve
st
,i
n
d
iv
id
u
al
s
m
u
st
be
ab
le

to
d
o
th
e
sa
m
e
p
ro
je
ct
io
n
s
an
d
va
lu
at
io
n
s
as
co
m
p
an
ie
s
in
or
d
er
to

d
et
er
m
in
e
th
e
be
st
in
ve
st
m
en
t
fo
r
th
ei
r
n
ee
d
s.
In
d
iv
id
u
al
s
ca
n
n
ot

se
ll
eq
u
it
y
li
ke
co
rp
or
at
io
n
s,
bu
t
th
ey
ca
n
ch
oo
se
to
ei
th
er
d
ip
in
to

th
ei
r
sa
vi
n
gs
or
ta
ke
ou
t
lo
an
s.
M
an
y
ta
ke
on
d
eb
t
in
th
e
fo
rm
of

st
u
d
en
t
lo
an
s,
m
or
tg
ag
es
,o
r
th
ro
u
gh
th
ei
r
cr
e
d
it
ca
rd
s;
be
in
g
ab
le

to
p
ro
p
er
ly
co
m
p
ar
e
op
ti
on
s
to
is
ju
st
as
im
p
or
ta
n
t
fo
r
in
d
iv
id
u
al
s

as
it
is
fo
r
co
m
p
an
ie
s.

A
p
p
li
ca
ti
o
n
to
B
u
si
n
e
ss

O
fc
ou
rs
e,
fi
n
an
ce
is
an
im
p
or
ta
n
t
fi
el
d
of
st
u
d
y
fo
r
th
os
e
w
h
o
h
av
e

a
d
es
ir
e
of
w
or
ki
n
g
in
fi
n
an
ce
or
ac
co
u
n
ti
n
g.
F
in
an
ce
is
h
ea
vi
ly
u
se
d

in
jo
bs
ra
n
gi
n
g
fr
om
in
ve
st
m
en
t
ba
n
ke
r
to
C
F
O
to
ve
n
tu
re

ca
p
it
al
is
t.

H
ow
ev
er
,f
in
an
ce
is
n
ot
se
gm
en
te
d
fr
om
th
e
ot
h
er
fu
n
ct
io
n
s
in

bu
si
n
es
s.
E
ve
ry
jo
b
fr
om
m
ar
ke
ti
n
g
to
en
gi
n
ee
ri
n
g
h
as
to
be
ab
le
to

m
an
ag
e
a
bu
d
ge
t
an
d
m
ak
e
a
bu
si
n
es
s
ca
se
th
at
it
sh
ou
ld
ge
t

fu
n
d
in
g
fo
r
a
p
ro
je
ct
.

T
h
is
is
es
p
ec
ia
ll
y
tr
u
e
h
ig
h
er
u
p
in
th
e
or
ga
n
iz
at
io
n
al
h
ie
ra
rc
h
y:

m
an
ag
er
s,
d
ir
ec
to
rs
,a
n
d
vi
ce
p
re
si
d
en
ts
n
ee
d
to
be
ab
le
to

ar
ti
cu
la
te
w
h
y
th
ei
r
d
ep
ar
tm
en
ts
sh
ou
ld
ge
t
fi
n
an
ci
al
su
p
p
or
t
fr
om

th
e
co
m
p
an
y.

17

Fi
na

nc
e
he

lp
s
ex

p
la
in

w
ha

t
tr
en

d
s
in

si
lv
er

b
id
s
m
ea

n,
b
ut

m
or
e
im

p
or
ta
nt
ly
,w

hy
p
eo

p
le

ca
re

ab
ou

t
th
em

(e
ve

n
th
os

e
no

t
tr
ad

in
g
si
lv
er
).

Fi
g
ur
e
1.
7
S
ilv
er
B
id
C
ha
rt

F
in
an
ce
is
a
fi
el
d
of
bo
th
h
ar
d
an
al
yt
ic
al
sk
il
la
n
d
p
er
so
n
al

ju
d
ge
m
en
t.
T
h
er
e
ar
e
se
t
p
ro
ce
ss
es
an
d
th
eo
ri
es
fo
r
d
et
er
m
in
in
g

w
h
ic
h
fi
n
an
ci
al
op
ti
on
is
be
st
,b
u
t
in
th
e
re
al
w
or
ld
,i
t
is
ra
re
to
h
av
e

al
lo
ft
h
e
in
fo
rm
at
io
n
n
ee
d
ed
to
be
ab
so
lu
te
ly
ce
rt
ai
n
ab
ou
t
w
h
at
to

d
o.
F
in
an
ce
d
ev
el
op
s
st
ro
n
g
an
al
yt
ic
al
sk
il
ls
,b
u
t
al
so
th
e
d
eg
re
e
of

fi
n
es
se
re
qu
ir
ed
to
op
er
at
e
in
an
en
vi
ro
n
m
en
t
of
u
n
ce
rt
ai
n
ty
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
in
tr
od
u
ci
n
g
-f
in
a
n
ce
/r
ea
so
n
s-
to

st
u
d
y-
fi
n
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

18

Va
lu
at
io
n

M
ax

im
iz
in
g
S
ha

re
ho

ld
er

an
d
M
ar
ke

t
Va

lu
e

M
ax

im
iz
in
g
Va

lu
e
w
ith

ou
t
H
ar
m
in
g
S
ta
ke

ho
ld
er
s

Se
ct
io
n
2

G
oa

ls
of

Fi
na

nc
ia
lM

an
ag

em
en

t

19

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
go

al
s-
of
-
na

nc
ia
l-
m
an

ag
em

en
t/

Va
lu
at
io
n

Va
lu
at
io
n,

a
go

al
of

n
an

ci
al

m
an

ag
em

en
t,
of
te
n
re
lie
s

on
fu
nd

am
en

ta
la

na
ly
si
s
of

n
an

ci
al

st
at
em

en
ts
.

K
E
Y
P
O
IN
TS


In
fi
n
an
ce
,v
al
u
at
io
n
is
th
e
p
ro
ce
ss
of
es
ti
m
at
in
g
w
h
at

so
m
et
h
in
g
is
w
or
th
.V
al
u
at
io
n
is
u
se
d
to
fo
r
a
va
ri
et
y
of

p
u
rp
os
es
:t
h
e
p
u
rc
h
as
e
or
sa
le
of
a
bu
si
n
es
s,
ap
p
ra
is
al
to

re
so
lv
e
d
is
p
u
te
s,
m
an
ag
er
ia
ld
ec
is
io
n
s
of
h
ow
to
al
lo
ca
te

bu
si
n
es
s
re
so
u
rc
es
,a
n
d
m
an
y
ot
h
er
bu
si
n
es
s
an
d
le
ga
l

p
u
rp
os
es
.


V
al
u
at
io
n
of
te
n
re
li
es
on
fu
n
d
am
en
ta
lf
in
an
ci
al
st
at
em
en
t

an
al
ys
is
u
si
n
g
to
ol
s
su
ch
as
d
is
co
u
n
te
d
ca
sh
fl
ow
or
n
et

p
re
se
n
t
va
lu
e.
A
s
su
ch
,a
n
ac
cu
ra
te
va
lu
at
io
n
,e
sp
ec
ia
ll
y
of

p
ri
va
te
ly
ow
n
ed
co
m
p
an
ie
s,
la
rg
el
y
d
ep
en
d
s
on
th
e
re
li
ab
il
it
y

of
th
e
fi
rm
‘s
h
is
to
ri
c
fi
n
an
ci
al
in
fo
rm
at
io
n
.


N
ot
on
ly
d
o
m
an
ag
er
s
w
an
t
to
ke
ep
re
li
ab
le
fi
n
an
ci
al

st
at
em
en
ts
so
th
at
th
ey
ca
n
kn
ow
th
e
va
lu
e
of
th
ei
r
ow
n

bu
si
n
es
se
s,
bu
t
th
ey
al
so
w
an
t
to
m
an
ag
e
fi
n
an
ce
s
w
el
lt
o

en
h
an
ce
th
e
va
lu
e
of
th
ei
r
bu
si
n
es
se
s
to
p
ot
en
ti
al
bu
ye
rs
,

cr
ed
it
or
s,
or
in
ve
st
or
s.

In
tr
o
d
u
ct
io
n

F
in
an
ci
al
m
an
ag
em
en
t
fo
cu
se
s
on
th
e
p
ra
ct
ic
al
si
gn
if
ic
an
ce
of

fi
n
an
ci
al
n
u
m
be
rs
.I
t
as
ks
:w
h
at
d
o
th
e
fi
gu
re
s
m
ea
n
?
So
u
n
d

fi
n
an
ci
al
m
an
ag
em
en
t
cr
ea
te
s
va
lu
e
an
d
or
ga
n
iz
at
io
n
al
ag
il
it
y

th
ro
u
gh
th
e
al
lo
ca
ti
on
of
sc
ar
ce
re
so
u
rc
es
am
on
g
co
m
p
et
in
g

bu
si
n
es
s
op
p
or
tu
n
it
ie
s.
It
is
an
ai
d
to
th
e
im
p
le
m
en
ta
ti
on
an
d

m
on
it
or
in
g
of
bu
si
n
es
s
st
ra
te
gi
es
an
d
h
el
p
s
ac
h
ie
ve
bu
si
n
es
s

ob
je
ct
iv
es
.T
h
er
e
ar
e
se
ve
ra
lg
oa
ls
of
fi
n
an
ci
al
m
an
ag
em
en
t,
on
e
of

w
h
ic
h
is
va
lu
at
io
n
(F
ig
u
re
1.
8
).

20

Va
lu
at
io
n
is
,f
or

so
m
e,

on
e
of

th
e
go

al
s
of

n
an

ci
al

m
an

ag
em

en
t.

Fi
g
ur
e
1.
8
Va
lu
at
io
n

V
a
lu
a
ti
o
n

In
fi
n
an
ce
,v
al
u
at
io
n
is
th
e
p
ro
ce
ss
of
es
ti
m
at
in
g
w
h
at
so
m
et
h
in
g
is

w
or
th
.V
al
u
at
io
n
of
te
n
re
li
es
on
fu
n
d
a
m
e
n
ta
l
a
n
a
ly
si
s
(o
f

fi
n
an
ci
al
st
at
em
en
ts
)
of
th
e
p
ro
je
ct
,b
u
si
n
es
s,
or
fi
rm
,u
si
n
g
to
ol
s

su
ch
as
d
is
co
u
n
te
d
ca
sh
fl
o
w
or
n
et
p
re
se
n
t
va
lu
e.
A
s
su
ch
,a
n

ac
cu
ra
te
va
lu
at
io
n
,e
sp
ec
ia
ll
y
of
p
ri
va
te
ly
ow
n
ed
co
m
p
an
ie
s,
la
rg
el
y

d
ep
en
d
s
on
th
e
re
li
ab
il
it
y
of
th
e
fi
rm
‘s
h
is
to
ri
c
fi
n
an
ci
al

in
fo
rm
at
io
n
.I
te
m
s
th
at
ar
e
u
su
al
ly
va
lu
ed
ar
e
a
fi
n
an
ci
al
as
se
t
or

li
ab
il
it
y.
V
al
u
at
io
n
s
ca
n
be
d
on
e
on
as
se
ts
(f
or
ex
am
p
le
,

in
ve
st
m
en
ts
in
m
ar
ke
ta
bl
e
se
cu
ri
ti
e
s
su
ch
as
st
oc
ks
,o
p
ti
on
s,

bu
si
n
es
s
en
te
rp
ri
se
s,
or
in
ta
n
g
ib
le
a
ss
e
ts
su
ch
as
p
a
te
n
ts
an
d

tr
ad
em
ar
ks
)
or
on
li
a
b
il
it
ie
s
(e
.g
.,
bo
n
d
s
is
su
ed
by
a
co
m
p
an
y)
.

V
al
u
at
io
n
is
u
se
d
to
d
et
er
m
in
e
th
e
p
ri
ce
fi
n
an
ci
al
m
ar
ke
t

p
ar
ti
ci
p
an
ts
ar
e
w
il
li
n
g
to
p
ay
or
re
ce
iv
e
to
bu
y
or
se
ll
a
bu
si
n
es
s.
In

ad
d
it
io
n
to
es
ti
m
at
in
g
th
e
se
ll
in
g
p
ri
ce
of
a
bu
si
n
es
s,
th
e
sa
m
e

va
lu
at
io
n
to
ol
s
ar
e
of
te
n
u
se
d
by
bu
si
n
es
s
ap
p
ra
is
er
s
to
re
so
lv
e

d
is
p
u
te
s
re
la
te
d
to
es
ta
te
an
d
gi
ft
ta
xa
ti
on
,d
iv
or
ce
li
ti
ga
ti
on
,

al
lo
ca
te
bu
si
n
es
s
p
u
rc
h
as
e
p
ri
ce
am
on
g
bu
si
n
es
s
as
se
ts
,

es
ta
bl
is
h
in
g
a
fo
rm
u
la
fo
r
es
ti
m
at
in
g
th
e
va
lu
e
of
p
ar
tn
er
s’

ow
n
er
sh
ip
in
te
re
st
fo
r
bu
y-
se
ll
ag
re
em
en
ts
,a
n
d
m
an
y
ot
h
er

bu
si
n
es
s
an
d
le
ga
lp
u
rp
os
es
.T
h
er
ef
or
e,
n
ot
on
ly
d
o
m
an
ag
er
s
w
an
t

to
ke
ep
re
li
ab
le
fi
n
an
ci
al
st
at
em
en
ts
so
th
at
th
ey
ca
n
kn
ow
th
e
va
lu
e

of
th
ei
r
ow
n
bu
si
n
es
se
s,
bu
t
th
ey
al
so
w
an
t
to
m
an
ag
e
fi
n
an
ce
s
w
el
l

to
en
h
an
ce
th
e
va
lu
e
of
th
ei
r
bu
si
n
es
se
s
to
p
ot
en
ti
al
bu
ye
rs
,

cr
e
d
it
o
rs
,o
r
in
ve
st
or
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/

va
lu
a
ti
on
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

21

M
ax

im
iz
in
g
S
ha

re
ho

ld
er

an
d

M
ar
ke

t
Va

lu
e

A
go

al
of

n
an

ci
al

m
an

ag
em

en
t
ca

n
b
e
to

m
ax

im
iz
e

sh
ar
eh

ol
d
er

w
ea

lth
b
y
p
ay

in
g
d
iv
id
en

d
s
an

d
/o
r
ca

us
in
g

th
e
m
ar
ke

t
va

lu
e
to

in
cr
ea

se
.

K
E
Y
P
O
IN
TS


O
n
e
in
te
rp
re
ta
ti
on
of
p
ro
p
er
fi
n
an
ci
al
m
an
ag
em
en
t
is
th
at

th
e
ag
en
ts
ar
e
or
ie
n
te
d
to
w
ar
d
th
e
be
n
ef
it
of
th
e
p
ri
n
ci
p
al
s,

sh
ar
eh
ol
d
er
s,
an
d
in
in
cr
ea
si
n
g
th
ei
r
w
ea
lt
h
by
p
ay
in
g

d
iv
id
en
d
s
an
d
/o
r
ca
u
si
n
g
th
e
st
oc
k
p
ri
ce
or
m
ar
ke
t
va
lu
e
to

in
cr
ea
se
.


T
h
e
id
ea
of
m
ax
im
iz
in
g
m
ar
ke
t
va
lu
e
is
re
la
te
d
to
th
e
id
ea
of

m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e,
as
m
ar
ke
t
va
lu
e
is
th
e
p
ri
ce
at

w
h
ic
h
an
as
se
t
w
ou
ld
tr
ad
e
in
a
co
m
p
et
it
iv
e
au
ct
io
n
se
tt
in
g;

fo
r
ex
am
p
le
,r
et
u
rn
in
g
va
lu
e
to
th
e
sh
ar
eh
ol
d
er
s
if
th
ey

d
ec
id
e
to
se
ll
sh
ar
es
or
if
th
e
fi
rm
d
ec
id
es
to
se
ll
.


T
h
er
e
ar
e
m
an
y
d
if
fe
re
n
t
m
od
el
s
of
co
rp
o
ra
te
g
o
ve
rn
a
n
ce

ar
ou
n
d
th
e
w
or
ld
.T
h
es
e
d
if
fe
r
ac
co
rd
in
g
to
th
e
va
ri
et
y
of

ca
p
it
a
li
sm
in
w
h
ic
h
th
ey
ar
e
em
be
d
d
ed
.T
h
e
A
n
gl
o-

A
m
er
ic
an
(U
S
an
d
U
K
)
“m
od
el

te
n
d
s
to
em
p
h
as
iz
e
th
e

in
te
re
st
s
of
sh
ar
eh
ol
d
er
s.

K
E
Y
P
O
IN
TS

(c
on
t.
)


T
h
e
so
le
co
n
ce
n
tr
at
io
n
on
sh
ar
eh
ol
d
er
va
lu
e
h
as
be
en

cr
it
ic
iz
ed
,f
or
co
n
ce
rn
th
at
a
m
an
ag
em
en
t
d
ec
is
io
n
ca
n

m
ax
im
iz
e
sh
ar
eh
ol
d
er
va
lu
e
w
h
il
e
lo
w
er
in
g
th
e
w
el
fa
re
of

ot
h
er
st
ak
eh
ol
d
er
s.
A
d
d
it
io
n
al
ly
,s
h
or
t-
te
rm
fo
cu
s
on

sh
ar
eh
ol
d
er
va
lu
e
ca
n
be
d
et
ri
m
en
ta
lt
o
lo
n
g-
te
rm

sh
ar
eh
ol
d
er
va
lu
e.

In
tr
o
d
u
ct
io
n

F
in
an
ci
al
m
an
ag
em
en
t
is
co
n
ce
rn
ed
w
it
h
fi
n
an
ci
al
m
at
te
rs
fo
r
th
e

p
ra
ct
ic
al
si
gn
if
ic
an
ce
of
th
e
n
u
m
be
rs
,a
sk
in
g:
w
h
at
d
o
th
e
fi
gu
re
s

m
ea
n
?
T
h
er
e
ar
e
se
ve
ra
lg
oa
ls
of
fi
n
an
ci
al
m
an
ag
em
en
t,
on
e
of

w
h
ic
h
is
m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
an
d
m
a
rk
e
t
va
lu
e

(F
ig
u
re
1.
9)
.

22

M
ax

im
iz
in
g

sh
ar
eh

ol
d
er

an
d

m
ar
ke

t
va

lu
e
is
,f
or

so
m
e,

on
e
of

th
e

go
al
s
of

n
an

ci
al

m
an

ag
em

en
t.

Fi
g
ur
e
1.
9
M
on
ey

to
S
ha
re
ho
ld
er
s

M
a
x
im
iz
in
g
S
h
a
re
h
o
ld
e
r
V
a
lu
e

T
h
e
id
ea
of
m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e
co
m
es
fr
om

in
te
rp
re
ta
ti
on
s
of
th
e
ro
le
of
co
rp
or
at
e
go
ve
rn
an
ce
.C
or
p
or
at
e

go
ve
rn
an
ce
in
vo
lv
es
re
gu
la
to
ry
an
d
m
ar
ke
t
m
ec
h
an
is
m
s
an
d
th
e

ro
le
s
an
d
re
la
ti
on
sh
ip
s
be
tw
ee
n
a
co
m
p
an
y’
s
m
an
ag
em
en
t,
it
s

bo
ar
d
,i
ts
sh
ar
eh
ol
d
er
s,
ot
h
er
st
a
k
e
h
o
ld
e
rs
,a
n
d
th
e
go
al
s
by

w
h
ic
h
th
e
co
rp
or
at
io
n
is
go
ve
rn
ed
.

In
la
rg
e
fi
rm
s
w
h
er
e
th
er
e
is
a
se
p
ar
at
io
n
of
ow
n
er
sh
ip
an
d

m
an
ag
em
en
t
an
d
n
o
co
n
tr
ol
li
n
g
sh
ar
eh
ol
d
er
,t
h
e
p
ri
n
ci
p
a
l–
ag
en
t

is
su
e
ar
is
es
be
tw
ee
n
u
p
p
er
-m
an
ag
em
en
t
(t
h
e
“a
ge
n
t”
)
an
d

sh
ar
eh
ol
d
er
s
(t
h
e
“p
ri
n
ci
p
al
s”
).
T
h
e
d
an
ge
r
ar
is
es
th
at
,r
at
h
er
th
an

ov
er
se
ei
n
g
m
an
ag
em
en
t
on
be
h
al
fo
fs
h
ar
eh
ol
d
er
s,
th
e
bo
ar
d
of

d
ir
ec
to
rs
m
ay
be
co
m
e
in
su
la
te
d
fr
om
sh
ar
eh
ol
d
er
s
an
d
be
h
ol
d
en
to

m
an
ag
em
en
t.

T
h
u
s,
on
e
in
te
rp
re
ta
ti
on
of
p
ro
p
er
fi
n
an
ci
al
m
an
ag
em
en
t
is
th
at
th
e

ag
en
ts
ar
e
or
ie
n
te
d
to
w
ar
d
th
e
b
e
n
e
fi
t
of
th
e
p
ri
n
ci
p
al
s

sh
ar
eh
ol
d
er
s

in
in
cr
ea
si
n
g
th
ei
r
w
ea
lt
h
by
p
ay
in
g
d
iv
id
en
d
s
an
d
/

or
ca
u
si
n
g
th
e
st
oc
k
p
ri
ce
or
m
ar
ke
t
va
lu
e
to
in
cr
ea
se
.

M
a
x
im
iz
in
g
M
a
rk
e
t
V
a
lu
e

T
h
e
id
ea
of
m
ax
im
iz
in
g
m
ar
ke
t
va
lu
e
is
re
la
te
d
to
th
e
id
ea
of

m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
va
lu
e,
as
m
ar
ke
t
va
lu
e
is
th
e
p
ri
ce
at
w
h
ic
h

an
as
se
t
w
ou
ld
tr
ad
e
in
a
co
m
p
et
it
iv
e
au
ct
io
n
se
tt
in
g;
fo
r
ex
am
p
le
,

re
tu
rn
in
g
va
lu
e
to
th
e
sh
ar
eh
ol
d
er
s
if
th
ey
d
ec
id
e
to
se
ll
sh
ar
es
or
if

th
e
fi
rm
d
ec
id
es
to
se
ll
.

T
h
er
e
ar
e
m
an
y
d
if
fe
re
n
t
m
od
el
s
of
co
rp
or
at
e
go
ve
rn
an
ce
ar
ou
n
d

th
e
w
or
ld
.T
h
es
e
d
if
fe
r
ac
co
rd
in
g
to
th
e
va
ri
et
y
of
ca
p
it
al
is
m
in

w
h
ic
h
th
ey
ar
e
em
be
d
d
ed
.T
h
e
A
n
gl
o-
A
m
er
ic
an
(U
S
an
d
U
K
)

“m
od
el

te
n
d
s
to
em
p
h
as
iz
e
th
e
in
te
re
st
s
of
sh
ar
eh
ol
d
er
s.

T
h
e
so
le
co
n
ce
n
tr
at
io
n
on
sh
ar
eh
ol
d
er
va
lu
e
h
as
be
en
w
id
el
y

cr
it
ic
iz
ed
,p
ar
ti
cu
la
rl
y
af
te
r
th
e
la
te
-2
0
0
0
s
fi
n
an
ci
al
cr
is
is
,w
h
er
e

at
te
n
ti
on
h
as
ri
se
n
to
th
e
co
n
ce
rn
th
at
a
m
an
ag
em
en
t
d
ec
is
io
n
ca
n

m
ax
im
iz
e
sh
ar
eh
ol
d
er
va
lu
e
w
h
il
e
lo
w
er
in
g
th
e
w
el
fa
re
of
ot
h
er

st
ak
eh
ol
d
er
s.
A
d
d
it
io
n
al
ly
,s
h
or
t-
te
rm
fo
cu
s
on
sh
ar
eh
ol
d
er
va
lu
e

ca
n
be
d
et
ri
m
en
ta
lt
o
lo
n
g-
te
rm
sh
ar
eh
ol
d
er
va
lu
e.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/

m
a
xi
m
iz
in
g
-s
ha
re
ho
ld
er
-a
n
d
-m
a
rk
et
-v
a
lu
e/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

23

M
ax

im
iz
in
g
Va

lu
e
w
ith

ou
t

H
ar
m
in
g
S
ta
ke

ho
ld
er
s

A
go

al
of

n
an

ci
al

m
an

ag
em

en
t
ca

n
b
e
to

m
ax

im
iz
e

va
lu
e
w
ith

ou
t
ha

rm
in
g
st
ak

eh
ol
d
er
s,

th
e
d
iv
er
se

se
t
of

p
ar
tie

s
a

ec
te
d
b
y
th
e
b
us

in
es

s.

K
E
Y
P
O
IN
TS


St
ak
eh
ol
d
er
s
ar
e
th
os
e
w
h
o
ar
e
af
fe
ct
ed
by
an
or
ga
n
iz
at
io
n
’s

ac
ti
vi
ti
es
.T
h
e
st
ak
eh
ol
d
er
s
ca
n
be
in
te
rn
al
or
ex
te
rn
al
to
th
e

fi
rm
an
d
so
m
e
w
il
lb
e
in
vo
lv
ed
d
ir
ec
tl
y
in
ec
on
om
ic

tr
an
sa
ct
io
n
s
w
it
h
th
e
bu
si
n
es
s,
w
h
il
e
ot
h
er
s
w
il
ln
ot
.


O
w
n
er
s,
em
p
lo
ye
es
,c
u
st
om
er
s,
su
p
p
li
er
s,
tr
ad
e
u
n
io
n
s,
th
e

go
ve
rn
m
en
t,
lo
ca
lc
om
m
u
n
it
ie
s,
an
d
th
e
en
vi
ro
n
m
en
t
ca
n
be

co
n
si
d
er
ed
st
ak
eh
ol
d
er
s.
B
ec
au
se
of
th
e
p
ot
en
ti
al
br
ea
d
th
of

th
e
te
rm
,t
h
er
e
ar
e
d
if
fe
re
n
t
vi
ew
s
on
w
h
om
to
in
cl
u
d
e
in

st
ak
eh
ol
d
er
co
n
si
d
er
at
io
n
s.


D
eb
at
e
is
on
go
in
g
ab
ou
t
w
h
et
h
er
fi
rm
s
sh
ou
ld
be
m
an
ag
ed

fo
r
sh
ar
eh
ol
d
er
va
lu
e
m
ax
im
iz
at
io
n
or
al
so
w
it
h
st
ak
eh
ol
d
er
s

in
m
in
d
.W
h
il
e
th
e
A
n
gl
o-
A
m
er
ic
an
“m
od
el

te
n
d
s
to

em
p
h
as
iz
e
sh
ar
eh
ol
d
er
s,
so
m
e
E
u
ro
p
ea
n
co
u
n
tr
ie
s
fo
rm
al
ly

re
co
gn
iz
e
ot
h
er
st
ak
eh
ol
d
er
s
in
co
rp
or
at
e
go
ve
rn
an
ce

d
ec
is
io
n
s.

K
E
Y
P
O
IN
TS

(c
on
t.
)


So
m
e
p
ro
p
on
en
ts
of
st
ak
eh
ol
d
er
co
n
si
d
er
at
io
n
s
ar
gu
e
th
at

at
te
n
ti
on
to
ot
h
er
st
ak
eh
ol
d
er
s
is
in
ti
m
at
el
y
in
te
rt
w
in
ed
w
it
h

m
ar
ke
t
va
lu
e
an
d
ca
n
en
h
an
ce
ou
tc
om
es
fo
r
al
ls
ta
ke
h
ol
d
er
s.

O
th
er
s
ar
gu
e
th
at
va
lu
e
sh
ou
ld
be
m
ax
im
iz
ed
w
it
h
ou
t

h
ar
m
in
g
st
ak
eh
ol
d
er
s.

In
tr
o
d
u
ct
io
n

P
ro
fe
ss
io
n
al
s
in
fi
n
an
ci
al
m
an
ag
em
en
t
ar
e
co
n
ce
rn
ed
w
it
h
th
e

p
ra
ct
ic
al
si
gn
if
ic
an
ce
of
th
e
n
u
m
be
rs
th
at
ap
p
ea
r
in
fi
n
an
ci
al

d
oc
u
m
en
ts
.G
iv
en
a
se
t
of
in
fo
rm
at
io
n
ab
ou
t
ce
rt
ai
n
fi
n
an
ci
al

b
e
h
a
vi
o
r,
th
ey
as
k,
w
h
at
d
o
th
e
fi
gu
re
s
m
ea
n
?
T
h
er
e
ar
e
se
ve
ra
l

go
al
s
of
fi
n
an
ci
al
m
an
ag
em
en
t,
on
e
of
w
h
ic
h
is
m
ax
im
iz
in
g
va
lu
e

w
it
h
ou
t
h
ar
m
in
g
sh
ar
eh
ol
d
er
s.

T
h
e
S
ta
k
e
h
o
ld
e
r
C
o
n
ce
p
t

T
h
e
st
ak
eh
ol
d
er
co
n
ce
p
t
is
as
so
ci
at
ed
w
it
h
th
e
co
n
ce
p
t
of
co
rp
or
at
e

go
ve
rn
an
ce
.C
or
p
or
at
e
go
ve
rn
an
ce
in
vo
lv
es
re
gu
la
to
ry
an
d
m
ar
ke
t

m
ec
h
an
is
m
s
an
d
th
e
re
la
ti
on
sh
ip
s
th
at
ex
is
t
be
tw
ee
n
a
co
m
p
an
y’
s

m
an
ag
em
en
t,
it
s
bo
ar
d
,i
ts
sh
ar
eh
ol
d
er
s,
ot
h
er
st
ak
eh
ol
d
er
s,
an
d

th
e
go
al
s
fo
r
w
h
ic
h
th
e
co
rp
or
at
io
n
is
go
ve
rn
ed
.S
ta
ke
h
ol
d
er
s
ar
e

th
os
e
w
h
o
ar
e
af
fe
ct
ed
by
an
or
ga
n
iz
at
io
n
’s
ac
ti
vi
ti
es
.T
h
e

st
ak
eh
ol
d
er
s
ca
n
be
in
te
rn
al
,l
ik
e
ow
n
er
s
or
em
p
lo
ye
es
.T
h
ey
ca
n

al
so
be
ex
te
rn
al
,l
ik
e
cu
st
om
er
s,
su
p
p
li
er
s,
th
e
go
ve
rn
m
en
t,
lo
ca
l

24

co
m
m
u
n
it
ie
s,
an
d
th
e
en
vi
ro
n
m
en
t
(F
ig
u
re
1.
10
).
So
m
e

st
ak
eh
ol
d
er
s
ar
e
in
vo
lv
ed
d
ir
ec
tl
y
in
ec
on
om
ic
tr
an
sa
ct
io
n
s
w
it
h
th
e

bu
si
n
es
s.
O
th
er
s
ar
e
ei
th
er
af
fe
ct
ed
by
,o
r
ab
le
to
af
fe
ct
,a
n

or
ga
n
iz
at
io
n
‘s
ac
ti
on
s
w
it
h
ou
t
d
ir
ec
tl
y
en
ga
gi
n
g
in
an
ec
on
om
ic

e
x
ch
a
n
g
e
w
it
h
th
e
bu
si
n
es
s
(f
or
ex
am
p
le
,t
ra
d
e
u
n
io
n
s,

co
m
m
u
n
it
ie
s,
ac
ti
vi
st
gr
ou
p
s,
et
c)
.B
ec
au
se
of
th
e
br
ea
d
th
of
th
e

te
rm
st
ak
eh
ol
d
er
,t
h
er
e
ar
e
d
if
fe
re
n
t
vi
ew
s
as
to
w
h
om
sh
ou
ld
be

in
cl
u
d
ed
in
st
ak
eh
ol
d
er
co
n
si
d
er
at
io
n
s.

S
ta
k
e
h
o
ld
e
rs
vs
.
S
h
a
re
h
o
ld
e
rs

In
th
e
fi
el
d
of
co
rp
or
at
e
go
ve
rn
an
ce
an
d
co
rp
or
at
e
re
sp
on
si
bi
li
ty
,a

m
aj
or
d
eb
at
e
is
cu
rr
en
tl
y
oc
cu
rr
in
g
ab
ou
t
w
h
et
h
er
a
fi
rm
or

co
m
p
an
y
sh
ou
ld
m
ak
e
d
ec
is
io
n
s
ch
ie
fl
y
to
m
ax
im
iz
e
va
lu
e
fo
r

sh
ar
eh
ol
d
er
s,
or
if
a
co
m
p
an
y
h
as
ob
li
ga
ti
on
s
to
ot
h
er
ty
p
es
of

st
ak
eh
ol
d
er
s.
T
h
is
in
cr
ea
se
d
af
te
r
th
e
fi
n
an
ci
al
cr
is
is
of
th
e
la
te

20
0
0
s,
w
h
en
co
n
ce
rn
s
d
ee
p
en
ed
ab
ou
t
th
e
p
ot
en
ti
al
of
co
m
p
an
ie
s

to
lo
w
er
th
e
w
el
fa
re
of
ot
h
er
st
ak
eh
ol
d
er
s
w
h
il
e
m
ax
im
iz
in
g
th
ei
r

sh
ar
eh
ol
d
er
va
lu
e.
W
h
il
e
th
e
A
n
gl
o-
A
m
er
ic
an
(U
S
an
d
U
K
)

bu
si
n
es
s
“m
od
el

te
n
d
s
to
em
p
h
as
iz
e
th
e
in
te
re
st
s
of
sh
ar
eh
ol
d
er
s

ov
er
ot
h
er
im
p
li
ca
te
d
p
ar
ti
es
,s
om
e
E
u
ro
p
ea
n
co
u
n
tr
ie
s
fo
rm
al
ly

re
co
gn
iz
e
ot
h
er
st
ak
eh
ol
d
er
s
in
co
rp
or
at
e
go
ve
rn
an
ce
d
ec
is
io
n
s.

So
m
e
p
eo
p
le
w
h
o
ar
gu
e
th
at
bu
si
n
es
se
s
sh
ou
ld
co
n
si
d
er
ot
h
er

st
ak
eh
ol
d
er
s,
li
ke
th
e
go
ve
rn
m
en
t
or
th
e
en
vi
ro
n
m
en
t,
ar
gu
e
th
at

an
at
te
n
ti
on
to
th
es
e
ty
p
es
of
st
ak
eh
ol
d
er
s
is
in
ti
m
at
el
y
in
tw
in
ed

w
it
h
m
ar
ke
t
va
lu
e.
T
h
ey
al
so
ar
gu
e
th
at
a
h
ol
is
ti
c
vi
ew
ca
n
en
h
an
ce

ge
n
er
al
ou
tc
om
es
fo
r
al
lt
h
e
st
ak
eh
ol
d
er
s
th
at
ar
e
in
vo
lv
ed
.S
ti
ll

ot
h
er
s
ar
gu
e
th
at
st
ak
eh
ol
d
er
s,
ev
en
if
th
ey
ar
e
n
ot
co
n
si
d
er
ed
in

bu
si
n
es
s
d
ec
is
io
n
s,
sh
ou
ld
at
th
e
ve
ry
le
as
t
n
ot
su
ff
er
h
ar
m
,a
n
d

th
at
bu
si
n
es
se
s
sh
ou
ld
m
ax
im
iz
e
va
lu
e
on
ly
if
th
ey
ca
n
d
o
so

w
it
h
ou
t
ge
n
er
at
in
g
h
ar
m
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/

m
a
xi
m
iz
in
g
-v
a
lu
e-
w
it
ho
u
t-
ha
rm
in
g
-s
ta
ke
ho
ld
er
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

25

Th
e
en

vi
ro
nm

en
t

ca
n
b
e
se

en
as

a
st
ak

eh
ol
d
er
.

M
ax

im
iz
in
g
va

lu
e

w
ith

ou
t
ha

rm
in
g

st
ak

eh
ol
d
er
s
is
,f
or

so
m
e,

on
e
of

th
e

go
al
s
of

n
an

ci
al

m
an

ag
em

en
t.

Fi
g
ur
e
1.
10

E
nv
iro
nm

en
t
as

st
ak
eh
ol
d
er

C
ur
re
nt

Is
su

es
in

Fi
na

nc
e

E
m
p
lo
ym

en
t
in

Fi
na

nc
e

Se
ct
io
n
3

Tr
en

d
s
an

d
Is
su

es
in

Fi
na

nc
e

26

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
tr
en

d
s-
an

d
-i
ss
ue

s-
in
-
na

nc
e/

C
ur
re
nt

Is
su

es
in

Fi
na

nc
e

C
ur
re
nt

is
su

es
in

n
an

ce
in
cl
ud

e
th
e
ec

on
om

ic
an

d
re
gu

la
to
ry

im
p
ac

ts
of

th
e
n

an
ci
al

cr
is
is

an
d
th
e
gr
ow

th
of

ne
w

ty
p
es

of
n

an
ce

.

K
E
Y
P
O
IN
TS


T
h
e
fi
n
an
ci
al
cr
is
is
of
20
0
7–
20
0
8
ca
u
se
d
th
e
n
ea
r-
to
ta
l

co
ll
ap
se
of
m
an
y
la
rg
e
fi
n
an
ci
al
in
st
it
u
ti
on
s,
th
e
ba
il
ou
t
of

ba
n
ks
by
n
at
io
n
al
go
ve
rn
m
en
ts
,a
n
d
d
ow
n
tu
rn
s
in
st
oc
k

m
ar
ke
ts
ar
ou
n
d
th
e
w
or
ld
.


F
ol
lo
w
in
g
th
e
fi
n
an
ci
al
cr
is
is
,v
ar
io
u
s
re
gu
la
to
ry
re
fo
rm
s

w
er
e
p
as
se
d
in
th
e
U
n
it
ed
St
at
es
,a
n
d
E
u
ro
p
ea
n
re
gu
la
to
rs

in
tr
od
u
ce
d
B
as
el
II
I
re
gu
la
ti
on
s
fo
r
ba
n
ks
.


T
h
er
e
ar
e
va
ri
ou
s
gr
ow
in
g
ar
ea
s
of
fi
n
an
ce
,i
n
cl
u
d
in
g

m
ic
ro
fi
n
an
ce
,c
ro
w
d
fu
n
d
in
g,
al
go
ri
th
m
ic
tr
ad
in
g,
an
d
im
p
ac
t

in
ve
st
in
g.

F
in
a
n
ci
a
l
cr
is
is
a
n
d
re
g
u
la
ti
o
n

T
h
e
fi
n
an
ci
al
cr
is
is
of
20
0
7–
20
0
8
ca
u
se
d
th
e
n
ea
r-
to
ta
lc
ol
la
p
se
of

m
an
y
la
rg
e
fi
n
an
ci
al
in
st
it
u
ti
on
s,
th
e
b
a
il
o
u
t
of
ba
n
ks
by
n
at
io
n
al

go
ve
rn
m
en
ts
,a
n
d
d
ow
n
tu
rn
s
in
st
oc
k
m
ar
ke
ts
ar
ou
n
d
th
e
w
or
ld
.

T
h
e
fi
n
a
n
ci
a
l
in
st
it
u
ti
o
n
cr
is
is
h
it
it
s
p
ea
k
in
la
te
20
0
8
.S
ev
er
al

m
aj
or
in
st
it
u
ti
on
s
fa
il
ed
,w
er
e
ac
qu
ir
ed
u
n
d
er
d
u
re
ss
,o
r
w
er
e

su
bj
ec
t
to
go
ve
rn
m
en
t
ta
ke
ov
er
,i
n
cl
u
d
in
g
L
eh
m
an
B
ro
th
er
s,

C
it
ig
ro
u
p
,F
an
n
ie
M
ae
,a
n
d
F
re
d
d
ie
M
ac
,a
m
on
g
se
ve
ra
lo
th
er
s.
T
h
e

cr
is
is
ra
p
id
ly
d
ev
el
op
ed
an
d
sp
re
ad
in
to
gl
ob
al
ec
on
om
ic
sh
oc
k,

re
su
lt
in
g
in
a
n
u
m
be
r
of
E
u
ro
p
ea
n
ba
n
k
fa
il
u
re
s,
ec
on
om
ic
cr
is
es
in

Ic
el
an
d
,d
ec
li
n
es
in
va
ri
ou
s
st
oc
k
in
d
ex
es
,a
n
d
la
rg
e
re
d
u
ct
io
n
s
in

th
e
m
ar
ke
t
va
lu
e
of
eq
u
it
ie
s
an
d
co
m
m
o
d
it
ie
s.
A
cu
rr
en
cy
cr
is
is

fo
ll
ow
ed
,w
it
h
in
ve
st
or
s
tr
an
sf
er
ri
n
g
va
st
ca
p
it
al
re
so
u
rc
es
in
to

st
ro
n
ge
r
cu
rr
en
ci
es
.I
n
m
an
y
ar
ea
s
in
th
e
U
n
it
ed
St
at
es
,t
h
e
h
ou
si
n
g

m
ar
ke
t
al
so
su
ff
er
ed
,r
es
u
lt
in
g
in
si
gn
if
ic
an
t
n
u
m
be
rs
of

fo
re
cl
os
u
re
s.
T
h
e
cr
is
is
p
la
ye
d
a
si
gn
if
ic
an
t
ro
le
in
th
e
fa
il
u
re
of
ke
y

bu
si
n
es
se
s,
d
ec
li
n
es
in
co
n
su
m
er
w
ea
lt
h
,p
ro
lo
n
ge
d
u
n
em
p
lo
ym
en
t,

an
d
a
d
ow
n
tu
rn
in
ec
on
om
ic
ac
ti
vi
ty
in
th
e
U
n
it
ed
St
at
es
.I
t
al
so
le
d

to
a
gl
ob
al
re
ce
ss
io
n
an
d
a
so
ve
re
ig
n
d
eb
t
cr
is
is
in
E
u
ro
p
e.

C
ri
ti
cs
of
th
e
fi
n
an
ci
al
cr
is
is
h
av
e
ar
gu
ed
th
at
th
e
re
gu
la
to
ry

fr
am
ew
or
k
d
id
n
ot
ke
ep
p
ac
e
w
it
h
ra
p
id
in
n
ov
at
io
n
in
fi
n
an
ci
al

m
ar
ke
ts
an
d
h
av
e
as
ke
d
fo
r
in
cr
ea
se
d
re
gu
la
ti
on
an
d
en
fo
rc
em
en
t.

V
ar
io
u
s
re
gu
la
to
ry
re
fo
rm
s
h
av
e
be
en
p
as
se
d
in
th
e
U
n
it
ed
St
at
es
,

an
d
E
u
ro
p
ea
n
re
gu
la
to
rs
in
tr
od
u
ce
d
B
as
el
II
I
re
gu
la
ti
on
s
fo
r
ba
n
ks
.

G
ro
w
in
g
a
re
a
s
o
f
b
u
si
n
e
ss

M
ic
ro
fi
n
an
ce
is
th
e
p
ro
vi
si
on
of
a
w
id
e
ra
n
ge
of
fi
n
an
ci
al
se
rv
ic
es
,

in
cl
u
d
in
g
sa
vi
n
gs
ac
co
u
n
ts
,t
o
th
e
p
oo
r.
M
ic
ro
cr
ed
it
is
a
p
ar
t
of

m
ic
ro
fi
n
an
ce
an
d
in
vo
lv
es
th
e
ex
te
n
si
on
of
ve
ry
sm
al
ll
oa
n
s

(m
ic
ro
lo
an
s)
to
im
p
ov
er
is
h
ed
bo
rr
ow
er
s,
of
te
n
w
it
h
th
e
go
al
of

su
p
p
or
ti
n
g
en
tr
ep
re
n
eu
rs
h
ip
an
d
/o
r
al
le
vi
at
in
g
p
ov
er
ty
.

27

P
ee
r-
to
-p
ee
r
le
n
d
in
g
ov
er
th
e
In
te
rn
et
is
an
ot
h
er
gr
ow
in
g

d
ev
el
op
m
en
t
in
th
e
fi
n
an
ci
al
se
ct
or
,t
o
w
h
ic
h
th
e
p
ri
n
ci
p
le
s
of

m
ic
ro
cr
ed
it
h
av
e
al
so
be
en
ap
p
li
ed
in
at
te
m
p
ti
n
g
to
ad
d
re
ss
p
ov
er
ty

as
w
el
la
s
va
ri
ou
s
n
on
-p
ov
er
ty
-r
el
at
ed
is
su
es
.S
u
ch
ef
fo
rt
s
in
cl
u
d
e

cr
o
w
d
fu
n
d
in
g
(F
ig
u
re
1.
11
),
a
te
rm
d
es
cr
ib
in
g
th
e
co
ll
ec
ti
ve
ef
fo
rt

of
in
d
iv
id
u
al
s
w
h
o
n
et
w
or
k
an
d
p
oo
lt
h
ei
r
re
so
u
rc
es
to
su
p
p
or
t

ch
ar
it
ie
s
in
it
ia
te
d
by
ot
h
er
p
eo
p
le
or
or
ga
n
iz
at
io
n
s.
T
h
e
ru
le
s
fo
r

cr
ow
d
fu
n
d
in
g
ar
e
st
il
lb
ei
n
g
d
ev
el
op
ed
,a
n
d
th
e
Se
cu
ri
ti
es
E
xc
h
an
ge

C
om
m
is
si
on
h
as
ye
t
to
se
t
ru
le
s
in
p
la
ce
fo
r
eq
u
it
y
cr
ow
d
fu
n
d
in
g

ca
m
p
ai
gn
s
in
vo
lv
in
g
u
n
ac
cr
ed
it
ed
in
ve
st
or
s
fo
r
p
ri
va
te
co
m
p
an
ie
s.

A
lg
or
it
h
m
ic
tr
ad
in
g,
n
ow
w
id
el
y
u
se
d
by
p
e
n
si
o
n
fu
n
d
s,
m
u
tu
a
l

fu
n
d
s,
an
d
ot
h
er
in
st
it
u
ti
on
al
tr
ad
er
s,
is
th
e
u
se
of
el
ec
tr
on
ic

p
la
tf
or
m
s
to
en
te
r
tr
ad
in
g
or
d
er
s
w
it
h
an
al
go
ri
th
m
th
at
ca
lc
u
la
te
s

as
p
ec
ts
su
ch
as
ti
m
in
g,
p
ri
ce
,a
n
d
qu
an
ti
ty
.P
ro
p
on
en
ts
h
av
e
ar
gu
ed

th
at
al
go
ri
th
m
ic
tr
ad
in
g
su
bs
ta
n
ti
al
ly
im
p
ro
ve
s
m
a
rk
e
t

li
q
u
id
it
y,
w
h
il
e
cr
it
ic
s
ar
gu
e
th
at
th
is
ty
p
e
of
tr
ad
in
g
is
op
aq
u
e—
a

“b
la
ck
bo
x”

an
d
m
ay
co
n
tr
ib
u
te
su
bs
ta
n
ti
al
ly
to
m
ar
ke
t

vo
la
ti
li
ty
.

T
h
e
gr
ow
in
g
fi
el
d
of
im
p
ac
t
in
ve
st
in
g
re
fe
rs
to
in
ve
st
m
en
ts
m
ad
e

ba
se
d
on
th
e
p
ra
ct
ic
e
of
as
se
ss
in
g
n
ot
on
ly
th
e
fi
n
an
ci
al
re
tu
rn
on

an
in
ve
st
m
en
t,
bu
t
al
so
it
s
so
ci
al
an
d
en
vi
ro
n
m
en
ta
li
m
p
ac
ts
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
tr
en
d
s-
a
n
d
-i
ss
u
es
-i
n
-f
in
a
n
ce
/

cu
rr
en
t-
is
su
es
-i
n
-f
in
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

28

O
ne

of
th
e
ne

w
er

tr
en

d
s
in

n
an

ce
is

“c
ro
w
d
fu
nd

in
g.

Fi
g
ur
e
1.
11

C
ro
w
d
s

E
m
p
lo
ym

en
t
in

Fi
na

nc
e

Th
e
n

an
ci
al

se
ct
or

is
a
la
rg
e
e

ld
o

er
in
g
m
an

y
d
i
er
en

t
ty
p
es

of
em

p
lo
ym

en
t
fo
r
a
b
ro
ad

ra
ng

e
of

or
ga

ni
za

tio
ns

th
at

m
an

ag
e
m
on

ey
.

K
E
Y
P
O
IN
TS


T
h
e
fi
n
an
ci
al
se
ct
or
is
a
la
rg
e
fi
el
d
of
fe
ri
n
g
m
an
y
d
if
fe
re
n
t

ty
p
es
of
em
p
lo
ym
en
t.
F
in
an
ci
al
se
rv
ic
es
en
co
m
p
as
se
s
a
br
oa
d

ra
n
ge
of
or
ga
n
iz
at
io
n
s
th
at
m
an
ag
e
m
on
ey
,i
n
cl
u
d
in
g
ba
n
ks
,

cr
ed
it
u
n
io
n
s,
cr
ed
it
ca
rd
co
m
p
an
ie
s,
in
su
re
rs
,s
to
ck

br
ok
er
ag
es
,a
n
d
in
ve
st
m
en
t
fu
n
d
s.


F
in
an
ci
al
an
al
ys
ts
m
ay
w
or
k
fo
r
go
ve
rn
m
en
t
in
ve
st
m
en
t

fu
n
d
s,
m
u
tu
al
fu
n
d
co
m
p
an
ie
s,
h
ed
ge
fu
n
d
s,
p
ri
va
te
eq
u
it
y

in
ve
st
or
s,
an
d
in
ve
st
m
en
t
ba
n
ks
.S
im
il
ar
ly
,c
re
d
it
an
al
ys
ts

w
or
k
in
a
va
ri
et
y
of
in
st
it
u
ti
on
s
to
as
se
ss
th
e
cr
ed
it
w
or
th
in
es
s

of
fi
rm
s,
go
ve
rn
m
en
ts
,o
r
in
d
iv
id
u
al
s
fo
r
lo
an
s.


In
in
su
ra
n
ce
,t
h
er
e
ar
e
in
su
ra
n
ce
br
ok
er
s
an
d
u
n
d
er
w
ri
te
rs

as
w
el
la
s
ac
tu
ar
ie
s
an
d
a
h
os
t
of
ot
h
er
p
os
it
io
n
s
su
ch
as

in
su
ra
n
ce
cl
ai
m
s
in
ve
st
ig
at
or
s
an
d
ag
en
ts
.I
n
te
rm
ed
ia
ri
es

ex
is
t
n
ot
ju
st
in
th
e
in
su
ra
n
ce
bu
si
n
es
s
bu
t
al
so
as

st
oc
kb
ro
ke
rs
th
at
as
si
st
in
ve
st
or
s
in
bu
yi
n
g
an
d
se
ll
in
g

sh
ar
es
.


F
in
an
ce
p
ro
fe
ss
io
n
al
s
m
ay
al
so
w
or
k
in
p
u
bl
ic
fi
n
an
ce
,f
or

lo
ca
lo
r
n
at
io
n
al
go
ve
rn
m
en
ts
,o
r
in
co
rp
or
at
e
fi
n
an
ce
.

G
ro
w
th
in
m
ic
ro
fi
n
an
ce
an
d
m
ic
ro
cr
ed
it
h
as
al
so
op
en
ed
u
p

K
E
Y
P
O
IN
TS

(c
on
t.
)

em
p
lo
ym
en
t
op
p
or
tu
n
it
ie
s
in
sm
al
l-
u
n
it
fi
n
an
ce
bo
th
in
th
e

U
S
an
d
ab
ro
ad
.


So
p
h
is
ti
ca
te
d
m
at
h
em
at
ic
al
an
d
te
ch
n
ol
og
ic
al
d
ev
el
op
m
en
ts

h
av
e
al
so
ad
va
n
ce
d
th
e
fi
el
d
of
qu
an
ti
ta
ti
ve
an
al
ys
is
fo
r
th
os
e

w
h
o
w
or
k
in
in
ve
st
m
en
t
m
an
ag
em
en
t,
ri
sk
m
an
ag
em
en
t,

d
er
iv
at
iv
es
p
ri
ci
n
g,
al
go
ri
th
m
ic
tr
ad
in
g,
an
d
ot
h
er
ar
ea
th
at

re
qu
ir
e
th
e
ap
p
li
ca
ti
on
of
m
at
h
em
at
ic
s
in
fi
n
an
ce
.


F
in
an
ci
al
em
p
lo
ye
es
ca
n
co
m
e
fr
om
a
va
ri
et
y
of
ba
ck
gr
ou
n
d
s.

M
an
y
fi
n
an
ci
al
an
al
ys
is
an
d
m
an
ag
em
en
t
p
os
it
io
n
s
re
qu
ir
e

so
m
e
ki
n
d
of
tr
ai
n
in
g
in
fi
n
an
ce
,a
cc
ou
n
ti
n
g,
ec
on
om
ic
s,

m
at
h
em
at
ic
s,
en
gi
n
ee
ri
n
g,
or
an
ot
h
er
qu
an
ti
ta
ti
ve
fi
el
d
.

T
h
e
fi
n
an
ci
al
se
ct
or
is
a
la
rg
e
fi
el
d
of
fe
ri
n
g
m
an
y
d
if
fe
re
n
t
ty
p
es
of

em
p
lo
ym
en
t.
F
in
an
ci
al
se
rv
ic
es
en
co
m
p
as
se
s
a
br
oa
d
ra
n
ge
of

or
ga
n
iz
at
io
n
s
th
at
m
an
ag
e
m
on
ey
,i
n
cl
u
d
in
g
ba
n
ks
,c
re
d
it
u
n
io
n
s,

cr
e
d
it
ca
rd
co
m
p
an
ie
s,
in
su
re
rs
,c
on
su
m
er
fi
n
an
ce
co
m
p
an
ie
s,

st
oc
k
br
ok
er
ag
es
,i
n
ve
st
m
en
t
fu
n
d
s,
so
m
e
go
ve
rn
m
en
t
sp
on
so
re
d

en
te
rp
ri
se
s,
an
d
ot
h
er
fi
n
an
ci
al
in
st
it
u
ti
on
s,
in
cl
u
d
in
g
p
ee
r-
to
-p
ee
r

le
n
d
in
g
p
la
tf
or
m
s.

In
ba
n
ki
n
g,
em
p
lo
ye
es
m
ay
se
rv
e
th
e
ra
n
ge
of
ro
le
s
n
ee
d
ed
to
ru
n

ba
n
ks
,f
ro
m
te
ll
er
s
to
fi
n
an
ci
al
p
la
n
n
er
s
an
d
u
n
d
e
rw
ri
te
rs
to

w
ea
lt
h
m
an
ag
er
s.
W
or
ke
rs
m
ay
be
em
p
lo
ye
d
in
a
va
ri
et
y
of

fu
n
ct
io
n
s
by
cr
ed
it
ca
rd
is
su
er
s,
su
ch
as
cu
st
om
er
se
rv
ic
e,
fo
re
ig
n

29

ex
ch
an
ge
se
rv
ic
e,
h
ig
h
-p
ro
fi
le
tr
ad
in
g,
an
d
ai
rp
or
t
cu
rr
en
cy

ex
ch
an
ge
rs
.F
in
an
ci
al
an
al
ys
ts
m
ay
w
or
k
fo
r
go
ve
rn
m
en
t

in
ve
st
m
en
t
fu
n
d
s,
m
u
tu
al
fu
n
d
co
m
p
an
ie
s,
h
e
d
g
e
fu
n
d
s,
p
ri
va
te

eq
u
it
y
in
ve
st
or
s,
an
d
in
ve
st
m
en
t
ba
n
ks
.C
re
d
it
an
al
ys
ts
w
or
k
in
a

va
ri
et
y
of
in
st
it
u
ti
on
s
to
as
se
ss
th
e
cr
ed
it
w
or
th
in
es
s
of
fi
rm
s,

go
ve
rn
m
en
ts
,o
r
in
d
iv
id
u
al
s
fo
r
lo
an
s.
In
in
su
ra
n
ce
,t
h
er
e
ar
e

in
su
ra
n
ce
br
ok
er
s
an
d
u
n
d
er
w
ri
te
rs
as
w
el
la
s
ac
tu
ar
ie
s
an
d
a
h
os
t

of
ot
h
er
p
os
it
io
n
s
su
ch
as
in
su
ra
n
ce
cl
ai
m
s
in
ve
st
ig
at
or
s
an
d

ag
en
ts
.

In
te
rm
ed
ia
ri
es
ex
is
t
n
ot
ju
st
in
th
e
in
su
ra
n
ce
bu
si
n
es
s.

S
to
ck
b
ro
k
e
rs
,f
or
in
st
an
ce
,a
ss
is
t
in
ve
st
or
s
in
bu
yi
n
g
an
d
se
ll
in
g

sh
ar
es
.T
h
er
e
ar
e
al
so
in
ve
st
or
s
ca
ll
ed
ve
n
tu
re
ca
p
it
al
is
ts
an
d
an
ge
l

in
ve
st
or
s.
F
in
an
ce
p
ro
fe
ss
io
n
al
s
m
ay
al
so
w
or
k
in
p
u
bl
ic
fi
n
an
ce
,

fo
r
lo
ca
lo
r
n
at
io
n
al
go
ve
rn
m
en
ts
,o
r
in
co
rp
or
at
e
fi
n
an
ce
.

G
ro
w
th
in
m
ic
ro
fi
n
an
ce
an
d
m
ic
ro
cr
ed
it
h
as
al
so
op
en
ed
u
p

em
p
lo
ym
en
t
op
p
or
tu
n
it
ie
s
in
fi
n
an
ce
bo
th
in
th
e
U
S
an
d
ab
ro
ad

(F
ig
u
re
1.
12
).
So
p
h
is
ti
ca
te
d
m
at
h
em
at
ic
al
an
d
te
ch
n
ol
og
ic
al

d
ev
el
op
m
en
ts
h
av
e
al
so
ad
va
n
ce
d
th
e
fi
el
d
of
qu
an
ti
ta
ti
ve
an
al
ys
is

fo
r
th
os
e
w
h
o
w
or
k
in
in
ve
st
m
en
t
m
an
ag
em
en
t,
ri
sk
m
an
ag
em
en
t,

d
e
ri
va
ti
ve
s
p
ri
ci
n
g,
al
go
ri
th
m
ic
tr
ad
in
g,
an
d
ot
h
er
ar
ea
s
th
at

re
qu
ir
e
th
e
ap
p
li
ca
ti
on
of
m
at
h
em
at
ic
s
in
fi
n
an
ce
.

F
in
an
ci
al
em
p
lo
ye
es
ca
n
co
m
e
fr
om
a
va
ri
et
y
of
ba
ck
gr
ou
n
d
s.
M
an
y

fi
n
a
n
ci
a
l
a
n
a
ly
si
s
an
d
m
an
ag
em
en
t
p
os
it
io
n
s
re
qu
ir
e
so
m
e
ki
n
d

of
tr
ai
n
in
g
in
fi
n
an
ce
,a
cc
ou
n
ti
n
g,
ec
on
om
ic
s,
m
at
h
em
at
ic
s,

en
gi
n
ee
ri
n
g,
or
an
ot
h
er
qu
an
ti
ta
ti
ve
fi
el
d
.T
h
er
e
ar
e
M
as
te
rs

d
eg
re
es
in
F
in
an
ce
an
d
B
u
si
n
es
s
as
w
el
la
s
ce
rt
if
ic
at
io
n
s
su
ch
as
th
e

w
id
el
y
re
co
gn
iz
ed
C
h
ar
te
re
d
F
in
an
ci
al
A
n
al
ys
t
ce
rt
if
ic
at
io
n
an
d

ac
co
u
n
ta
n
cy
qu
al
if
ic
at
io
n
s
su
ch
as
th
e
C
er
ti
fi
ed
P
u
bl
ic
A
cc
ou
n
ta
n
t.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
tr
en
d
s-
a
n
d
-i
ss
u
es
-i
n
-f
in
a
n
ce
/

em
p
lo
ym
en
t-
in
-f
in
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

30

M
uh

am
m
ad

Yu
nu

s
is
a
b
an

ke
r
w
ho

gr
ew

a
e

ld
in

m
ic
ro
cr
ed

it
an

d
m
ic
ro
n

an
ce

,
op

en
in
g
up

ne
w

ty
p
es

of
n

an
ci
al

em
p
lo
ym

en
t.

Fi
g
ur
e
1.
12

M
uh
am

m
ad

Yu
nu
s

D
e

ni
tio

n
of

E
th
ic
s

M
or
al

R
ea

so
ni
ng

an
d
E
th
ic
s

C
ul
tu
re

an
d
E
th
ic
s

P
er
so

na
lV

al
ue

s
an

d
E
th
ic
s

B
lu
rr
in
g
E
th
ic
al

Li
ne

s

Se
ct
io
n
4

E
th
ic
s,

an
O
ve

rv
ie
w

31

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
et
hi
cs

-a
n-
ov

er
vi
ew


2/

D
e

ni
tio

n
of

E
th
ic
s

E
th
ic
s
is

a
b
ra
nc

h
of

p
hi
lo
so

p
hy

co
nc

er
ne

d
w
ith

th
e

st
ud

y
of

w
ha

t
is

go
od

an
d
b
ad

.

K
E
Y
P
O
IN
TS


E
th
ic
al
be
h
av
io
r
is
ba
se
d
on
w
ri
tt
en
an
d
u
n
w
ri
tt
en
co
d
es
of

p
ri
n
ci
p
le
s
an
d
va
lu
es
h
el
d
in
so
ci
et
y.


E
th
ic
al
p
ri
n
ci
p
le
s
an
d
va
lu
es
se
rv
e
as
a
gu
id
e
to
be
h
av
io
rs
on

a
p
er
so
n
al
le
ve
l,
w
it
h
in
p
ro
fe
ss
io
n
s,
an
d
at
th
e
co
ll
ec
ti
ve

or
ga
n
iz
at
io
n
al
le
ve
l.


B
u
si
n
es
s
et
h
ic
s
in
vo
lv
es
p
er
so
n
al
,p
ro
fe
ss
io
n
al
,a
n
d
co
rp
or
at
e

be
h
av
io
rs
.

(F
ig
u
re
1.
13
)
E
th
ic
s
is
th
e
br
an
ch
of
p
h
il
os
op
h
y
co
n
ce
rn
ed
w
it
h
th
e

m
ea
n
in
g
of
al
la
sp
ec
ts
of
h
u
m
an
be
h
av
io
r.
T
h
eo
re
ti
ca
le
th
ic
s,

so
m
et
im
es
ca
ll
ed
n
or
m
at
iv
e
et
h
ic
s,
is
ab
ou
t
d
is
co
ve
ri
n
g
an
d

d
el
in
ea
ti
n
g
ri
gh
t
fr
om
w
ro
n
g;
it
is
th
e
co
n
si
d
er
at
io
n
of
h
ow
w
e

d
ev
el
op
th
e
ru
le
s
an
d
p
ri
n
ci
p
le
s
(o
r
n
o
rm
s)
u
se
d
to
ju
d
ge
an
d

gu
id
e
m
ea
n
in
gf
u
ld
ec
is
io
n
-m
ak
in
g.
T
h
eo
re
ti
ca
le
th
ic
s
is
su
p
re
m
el
y

in
te
ll
ec
tu
al
in
ch
ar
ac
te
r,
an
d
,b
ei
n
g
a
br
an
ch
of
p
h
il
os
op
h
y,
is
al
so

ra
ti
on
al
in
n
at
u
re
.T
h
eo
re
ti
ca
le
th
ic
s
is
th
e
ra
ti
on
al
re
fl
ec
ti
on
on

w
h
at
is
ri
gh
t,
w
h
at
is
w
ro
n
g,
w
h
at
is
ju
st
,w
h
at
is
u
n
ju
st
,w
h
at
is

go
od
,a
n
d
w
h
at
is
ba
d
in
te
rm
s
of
h
u
m
an
be
h
av
io
r.

B
u
si
n
e
ss
e
th
ic
s
(a
ls
o
co
rp
or
at
e
et
h
ic
s)
is
a
fo
rm
of
ap
p
li
ed
et
h
ic
s

or
p
ro
fe
ss
io
n
al
et
h
ic
s
th
at
ex
am
in
es
et
h
ic
al
p
ri
n
ci
p
le
s
an
d
m
or
al
or

et
h
ic
al
p
ro
bl
em
s
th
at
ar
is
e
in
a
bu
si
n
es
s
en
vi
ro
n
m
en
t.
It
ap
p
li
es
to

al
la
sp
ec
ts
of
bu
si
n
es
s
co
n
d
u
ct
an
d
is
re
le
va
n
t
to
th
e
co
n
d
u
ct
of

in
d
iv
id
u
al
s
an
d
en
ti
re
or
ga
n
iz
at
io
n
s.

32

H
ow

d
o
w
e
d
ev

el
op

th
e
ru
le
s
an

d
p
rin

ci
p
le
s
to

fo
llo

w
an

et
hi
ca

lp
at
h?

Fi
g
ur
e
1.
13

Th
is
W
ay

to
E
th
ic
s

B
u
si
n
es
s
et
h
ic
s
ca
n
be
th
ou
gh
t
of
as
w
ri
tt
en
an
d
u
n
w
ri
tt
en
co
d
es
of

p
ri
n
ci
p
le
s
an
d
va
lu
e
s
th
at
go
ve
rn
d
ec
is
io
n
s
an
d
ac
ti
on
s
w
it
h
in
a

co
m
p
an
y.
In
th
e
bu
si
n
es
s
w
or
ld
,t
h
e
or
ga
n
iz
at
io
n
’s
cu
lt
u
re
se
ts

st
an
d
ar
d
s
fo
r
d
et
er
m
in
in
g
th
e
d
if
fe
re
n
ce
be
tw
ee
n
go
od
an
d
ba
d

d
ec
is
io
n
-m
ak
in
g
an
d
be
h
av
io
r.
In
th
e
m
os
t
ba
si
c
te
rm
s,
a
d
ef
in
it
io
n

fo
r
bu
si
n
es
s
et
h
ic
s
bo
il
s
d
ow
n
to
kn
ow
in
g
th
e
d
if
fe
re
n
ce
be
tw
ee
n

ri
gh
t
an
d
w
ro
n
g
an
d
ch
oo
si
n
g
to
d
o
w
h
at
is
ri
gh
t.
T
h
e
p
h
ra
se

‘b
u
si
n
es
s
et
h
ic
s’
ca
n
be
u
se
d
to
d
es
cr
ib
e
th
e
ac
ti
on
s
of
in
d
iv
id
u
al
s

w
it
h
in
an
or
ga
n
iz
at
io
n
or
th
e
or
ga
n
iz
at
io
n
as
a
w
h
ol
e.

T
h
er
e
ar
e
th
re
e
p
ar
ts
to
th
e
d
is
ci
p
li
n
e
of
bu
si
n
es
s
et
h
ic
s:
p
er
so
n
al
,

p
ro
fe
ss
io
n
al
an
d
co
rp
or
at
e.
A
ll
th
re
e
ar
e
in
tr
ic
at
el
y
re
la
te
d
,a
n
d
it
is

h
el
p
fu
lt
o
d
is
ti
n
gu
is
h
be
tw
ee
n
th
em
be
ca
u
se
ea
ch
re
st
s
on
sl
ig
h
tl
y

d
if
fe
re
n
t
as
su
m
p
ti
on
s.
W
e
ar
e
lo
ok
in
g
at
bu
si
n
es
s
et
h
ic
s
th
ro
u
gh
a

tr
if
oc
al
le
n
s:
u
p
cl
os
e
an
d
p
er
so
n
al
,i
n
te
rm
ed
ia
te
an
d
p
ro
fe
ss
io
n
al
,

an
d
on
th
e
gr
an
d
sc
al
e
(u
ti
li
zi
n
g
bo
th
fa
rs
ig
h
te
d
an
d
p
er
ip
h
er
al

vi
si
on
)
of
th
e
co
rp
or
at
io
n
.

F
ir
st
an
d
fo
re
m
os
t,
bu
si
n
es
s
ex
ec
u
ti
ve
s
ar
e
h
u
m
an
be
in
gs
;t
h
ey
se
ek

m
ea
n
in
g
fo
r
th
ei
r
li
ve
s
th
ro
u
gh
re
la
ti
on
sh
ip
s
an
d
en
te
rp
ri
se
,a
n
d

th
ey
w
an
t
th
ei
r
li
ve
s
to
am
ou
n
t
to
so
m
et
h
in
g.
B
ec
au
se
et
h
ic
s
is

ch
ie
fl
y
th
e
d
is
ci
p
li
n
e
of
m
ea
n
in
g,
th
e
bu
si
n
es
s
ex
ec
u
ti
ve
(l
ik
e
al
l

ot
h
er
h
u
m
an
be
in
gs
)
is
en
ga
ge
d
in
th
is
d
is
ci
p
li
n
e
al
lt
h
e
ti
m
e,

w
h
et
h
er
co
gn
iz
an
t
of
it
or
n
ot
.

E
X
A
M
P
LE

C
or
p
or
at
e
So
ci
al
R
es
p
on
si
bi
li
ty
is
a
fo
rm
of
et
h
ic
al
be
h
av
io
r

th
at
re
qu
ir
es
th
at
or
ga
n
iz
at
io
n
s
u
n
d
er
st
an
d
,i
d
en
ti
fy
,a
n
d

el
im
in
at
e
u
n
et
h
ic
al
ec
on
om
ic
,e
n
vi
ro
n
m
en
ta
l,
an
d
so
ci
al

be
h
av
io
rs
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
tr
en
d
s-
a
n
d
-i
ss
u
es
-i
n
-f
in
a
n
ce
/

cu
rr
en
t-
is
su
es
-i
n
-f
in
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

33

M
or
al

R
ea

so
ni
ng

an
d
E
th
ic
s

M
or
al

re
as

on
in
g
al
lo
w
s
us

to
m
ak

e
go

od
d
ec

is
io
ns

ev
en

in
th
e
ab

se
nc

e
of

go
od

d
at
a,

ex
p
er
ie
nc

e,
or

p
re
ce

d
en

t.

K
E
Y
P
O
IN
TS


T
h
er
e
ar
e
fo
u
r
co
m
p
on
en
ts
of
m
or
al
be
h
av
io
r:
m
or
al

se
n
si
ti
vi
ty
,m
or
al
ju
d
gm
en
t,
m
or
al
m
ot
iv
at
io
n
,a
n
d
m
or
al

ch
ar
ac
te
r.


M
or
al
re
as
on
in
g
is
cu
lt
u
ra
ll
y
d
ef
in
ed
.


St
u
d
ie
s
h
av
e
u
n
co
ve
re
d
fo
u
r
sk
il
ls
et
s
th
at
p
la
y
a
d
ec
is
iv
e
ro
le

in
th
e
ex
er
ci
se
of
m
or
al
ex
p
er
ti
se
:m
or
al
im
ag
in
at
io
n
,m
or
al

cr
ea
ti
vi
ty
,r
ea
so
n
ab
le
n
es
s,
an
d
p
er
se
ve
ra
n
ce
.

(F
ig
u
re
1.
14
)
E
th
ic
al
co
n
si
d
er
at
io
n
s
ar
e
be
h
in
d
al
lb
u
si
n
es
s

d
ec
is
io
n
s.
It
‘s
si
m
p
ly
th
e
n
at
u
re
of
d
ec
is
io
n
-m
ak
in
g.
C
on
si
d
er
th
is

id
ea
: •
In
m
os
t
ca
se
s,
w
h
en
so
m
eo
n
e
m
ak
es
an
ec
on
om
ic
d
ec
is
io
n
,

th
ey
co
u
ld
h
av
e
ch
os
en
an
al
te
rn
at
e
p
at
h
;


W
h
at
ev
er
d
ec
is
io
n
is
m
ad
e
w
il
la
ff
ec
t
ot
h
er
p
eo
p
le
;


T
h
es
e
d
ec
is
io
n
s
ar
e
gr
ou
n
d
ed
in
a
be
li
ef
sy
st
em
th
at

en
co
m
p
as
se
s
so
m
e
fo
rm
of
ba
si
c
va
lu
es
.

In
an
u
n
ce
rt
ai
n
,c
om
p
le
x,
an
d
al
w
ay
s-
ch
an
gi
n
g
w
or
ld
,p
eo
p
le

ca
n
n
ot
al
w
ay
s
co
u
n
t
on
go
od
d
at
a
or
p
re
ce
d
en
t.
N
ow
it
is

in
cr
ea
si
n
gl
y
im
p
or
ta
n
t
to
h
av
e
th
e
ab
il
it
y
to
m
ak
e
“g
oo
d

d
ec
is
io
n
s

w
it
h
w
h
at
in
fo
rm
at
io
n
w
e
cu
rr
en
tl
y
h
av
e.
D
oi
n
g
so
re
qu
ir
es
th
e

ab
il
it
y
to
ch
oo
se
w
h
at
w
e
kn
ow
to
be
“g
oo
d

or
“r
ig
h
t.

M
or
al

re
as
on
in
g
se
rv
es
ju
st
th
is
p
u
rp
os
e.

34

Ik
no

w
w
ha

t
is
rig

ht
,b

ut
fe
el

no
in
cl
in
at
io
n
to

fo
llo

w
it,

Ik
no

w
w
ha

t
is
w
ro
ng

,b
ut

ca
nn

ot
d
es

is
t
fr
om

it.

Fi
g
ur
e
1.
14

To
b
e
E
th
ic
al
or

no
t
to

b
e.
..

A
n
O
ve
rv
ie
w
o
f
M
o
ra
l
R
e
a
so
n
in
g

M
or
al
re
as
on
in
g
is
a
st
u
d
y
in
p
sy
ch
ol
og
y
th
at
ov
er
la
p
s
w
it
h

p
h
il
os
op
h
y.
It
is
al
so
ca
ll
ed
m
or
al
d
ev
el
op
m
en
t.
P
ro
m
in
en
t

co
n
tr
ib
u
to
rs
to
th
eo
ry
in
cl
u
d
e
L
aw
re
n
ce
K
oh
lb
er
g
an
d
E
ll
io
t
T
u
ri
el
.

M
or
al
re
as
on
in
g
ca
n
be
d
ef
in
ed
as
th
e
p
ro
ce
ss
in
w
h
ic
h
an

in
d
iv
id
u
al
tr
ie
s
to
d
et
er
m
in
e
th
e
d
if
fe
re
n
ce
be
tw
ee
n
w
h
at
is
ri
gh
t

an
d
w
h
at
is
w
ro
n
g
in
a
p
er
so
n
al
si
tu
at
io
n
by
u
si
n
g
lo
gi
c.
T
h
is
is
an

im
p
or
ta
n
t
an
d
of
te
n
d
ai
ly
p
ro
ce
ss
th
at
p
eo
p
le
u
se
in
an
at
te
m
p
t
to

d
o
th
e
ri
gh
t
th
in
g.
E
ve
ry
d
ay
fo
r
in
st
an
ce
,p
eo
p
le
ar
e
fa
ce
d
w
it
h
th
e

d
il
em
m
a
of
w
h
et
h
er
to
li
e
in
a
gi
ve
n
si
tu
at
io
n
.P
eo
p
le
m
ak
e
th
is

d
ec
is
io
n
by
re
as
on
in
g
ou
t
th
e
m
or
al
it
y
of
th
is
ac
ti
on
an
d
w
ei
gh
in
g

th
at
ag
ai
n
st
it
s
co
n
se
qu
en
ce
s.

T
h
e
R
o
le
o
f
E
th
ic
s
in
M
o
ra
l
R
e
a
so
n
in
g

A
lt
h
ou
gh
al
lm
or
al
ch
oi
ce
s
ca
n
be
se
en
as
p
er
so
n
al
ch
oi
ce
s,
so
m
e

ch
oi
ce
s
ca
n
be
se
en
as
an
ec
on
om
ic
ch
oi
ce
s.

W
h
en
w
e
ta
lk
ab
ou
t
m
or
al
be
h
av
io
r
w
e
ge
n
er
al
ly
co
n
si
d
er
fo
u
r

co
m
p
on
en
ts
:


M
or
al
se
n
si
ti
vi
ty
,w
h
ic
h
is
“t
h
e
ab
il
it
y
to
se
e
an
et
h
ic
al

d
il
em
m
a,
in
cl
u
d
in
g
h
ow
ou
r
ac
ti
on
s
w
il
la
ff
ec
t
ot
h
er
s.


M
or
al
ju
d
gm
en
t,
w
h
ic
h
is
“t
h
e
ab
il
it
y
to
re
as
on
co
rr
ec
tl
y

ab
ou
t
w
h
at
‘o
u
gh
t’
to
be
d
on
e
in
a
sp
ec
if
ic
si
tu
at
io
n
.”


M
or
al
m
ot
iv
at
io
n
,w
h
ic
h
is
“a
p
er
so
n
al
co
m
m
it
m
en
t
to

m
or
al
ac
ti
on
,a
cc
ep
ti
n
g
re
sp
on
si
bi
li
ty
fo
r
th
e
ou
tc
om
e.


M
or
al
ch
ar
ac
te
r,
w
h
ic
h
is
a
“c
ou
ra
ge
ou
s
p
er
si
st
en
ce
in
sp
it
e

of
fa
ti
gu
e
or
te
m
p
ta
ti
on
s
to
ta
ke
th
e
ea
sy
w
ay
ou
t.

M
or
al
re
as
on
in
g
is
co
n
ce
rn
ed
w
it
h
h
ow
th
es
e
is
su
es
ar
e
p
er
ce
iv
ed

by
or
d
in
ar
y
p
eo
p
le
,w
h
o
co
ll
ec
ti
ve
ly
d
ef
in
e
it
as
a
cu
lt
u
re
.

W
h
y
S
tu
d
y
M
o
ra
l
R
e
a
so
n
in
g

O
u
r
ac
ti
on
s
st
em
fr
om
ou
r
th
ou
gh
ts
,a
n
d
su
ch
ac
ti
on
s
in
fl
u
en
ce
th
e

li
ve
s
of
ot
h
er
s.
U
n
fo
rt
u
n
at
el
y,
w
e
ar
e
n
ot
bo
rn
w
it
h
a
“c
od
e
of

co
n
d
u
ct
.”

T
h
e
ab
il
it
y
to
m
ak
e
a
ch
oi
ce
,a
n
d
to
m
ak
e
a
go
od
ch
oi
ce
,h
as

p
ow
er
fu
lc
on
se
qu
en
ce
s.
O
u
r
li
ve
s,
an
d
ou
r
ef
fe
ct
on
ot
h
er
s,
ar
e

go
ve
rn
ed
by
th
e
d
ec
is
io
n
s
w
e
m
ak
e,
an
d
th
e
co
n
se
qu
en
ce
s
of
ou
r

d
ec
is
io
n
s
ar
e
li
ke
ly
to
be
go
ve
rn
ed
by
th
e
qu
al
it
y
of
th
e
d
ec
is
io
n
s

w
e
m
ak
e.
T
h
e
ab
il
it
y
to
m
ak
e
go
od
d
ec
is
io
n
s

h
ow
ev
er
w
e
m
ay
en
d

u
p
d
ef
in
in
g
“g
oo
d


w
il
li
m
p
ac
t
ou
r
li
ve
s,
h
ow
w
e
tr
ea
t
ot
h
er
s,
an
d

h
ow
w
e
ar
e
tr
ea
te
d
in
re
tu
rn
.

W
h
il
e
w
e
w
il
lo
ft
en
fi
n
d
ou
rs
el
ve
s
la
ck
in
g
go
od
in
fo
rm
at
io
n
,a
n
d

so
m
et
im
es
la
ck
in
g
in
th
e
ab
il
it
y
to
p
er
ce
iv
e
p
er
ti
n
en
t
fa
ct
s,
th
e

ab
il
it
y
to
fo
rm
u
la
te
go
od
d
ec
is
io
n
s
w
it
h
w
h
at
ev
er
in
fo
rm
at
io
n
is

av
ai
la
bl
e
ca
n
en
ab
le
u
s
n
ot
to
m
er
el
y
m
u
d
d
le
th
ro
u
gh
,b
u
t
to

in
te
ll
ig
en
tl
y
ch
oo
se
th
e
m
os
t
ef
fe
ct
iv
e
ro
ad
.

35

M
o
ra
l
S
k
il
l
S
e
t

M
or
al
ex
p
er
ti
se
is
n
ot
re
d
u
ci
bl
e
to
kn
ow
in
g
w
h
at
co
n
st
it
u
te
s
go
od

co
n
d
u
ct
an
d
d
oi
n
g
yo
u
r
be
st
to
br
in
g
it
ab
ou
t.
R
ea
li
zi
n
g
go
od

co
n
d
u
ct
,b
ei
n
g
an
ef
fe
ct
iv
e
m
or
al
ag
en
t,
br
in
gi
n
g
va
lu
e
in
to
th
e

w
or
k,
al
lr
eq
u
ir
e
sk
il
ls
in
ad
d
it
io
n
to
“g
o
o
d
w
il
l.

St
u
d
ie
s
h
av
e

u
n
co
ve
re
d
fo
u
r
sk
il
ls
et
s
th
at
p
la
y
a
d
ec
is
iv
e
ro
le
in
th
e
ex
er
ci
se
of

m
or
al
ex
p
er
ti
se
.


M
or
al
im
ag
in
at
io
n
:T
h
e
ab
il
it
y
to
p
ro
je
ct
in
to
th
e
st
an
d
p
oi
n
t

of
ot
h
er
s
an
d
vi
ew
th
e
si
tu
at
io
n
at
h
an
d
th
ro
u
gh
th
ei
r
le
n
se
s.

M
or
al
im
ag
in
at
io
n
ac
h
ie
ve
s
a
ba
la
n
ce
be
tw
ee
n
be
co
m
in
g

lo
st
in
th
e
p
er
sp
ec
ti
ve
s
of
ot
h
er
s
an
d
fa
il
in
g
to
le
av
e
on
e’
s

ow
n
p
er
sp
ec
ti
ve
.A
d
am
Sm
it
h
te
rm
s
th
is
ba
la
n
ce

“p
ro
p
or
ti
on
al
it
y”
w
h
ic
h
w
e
ca
n
ac
h
ie
ve
in
em
p
at
h
y.


M
or
al
cr
ea
ti
vi
ty
:M
or
al
cr
ea
ti
vi
ty
is
cl
os
el
y
re
la
te
d
to
m
or
al

im
ag
in
at
io
n
.B
u
t
it
ce
n
te
rs
in
th
e
ab
il
it
y
to
fr
am
e
a
si
tu
at
io
n

in
d
if
fe
re
n
t
w
ay
s.


R
ea
so
n
ab
le
n
es
s:
R
ea
so
n
ab
le
n
es
s
ba
la
n
ce
s
op
en
n
es
s
to
th
e

vi
ew
s
of
ot
h
er
s
w
it
h
co
m
m
it
m
en
t
to
m
or
al
va
lu
es
an
d
ot
h
er

im
p
or
ta
n
t
go
al
s.
O
n
e
is
op
en
bu
t
n
ot
to
th
e
ex
te
n
t
of

be
li
ev
in
g
an
yt
h
in
g
an
d
fa
il
in
g
to
ke
ep
fu
n
d
am
en
ta
l

co
m
m
it
m
en
ts
.


P
er
se
ve
ra
n
ce
😛
er
se
ve
ra
n
ce
is
th
e
“a
bi
li
ty
to
p
la
n
m
or
al

ac
ti
on
an
d
co
n
ti
n
u
e
on
th
at
co
u
rs
e
by
re
sp
on
d
in
g
to

ci
rc
u
m
st
an
ce
s
an
d
ob
st
ac
le
s
w
h
il
e
ke
ep
in
g
et
h
ic
al
go
al
s

in
ta
ct
.”

E
X
A
M
P
LE

W
il
li
am
L
eM
es
se
u
r
d
es
ig
n
ed
th
e
C
it
ic
or
p
B
u
il
d
in
g
in
N
ew

Y
or
k.
W
h
en
a
st
u
d
en
t
id
en
ti
fi
ed
a
cr
it
ic
al
d
es
ig
n
fl
aw
in
th
e

bu
il
d
in
g
d
u
ri
n
g
a
ro
u
ti
n
e
cl
as
s
ex
er
ci
se
,L
eM
es
se
u
r
re
sp
on
d
ed
,

n
ot
by
sh
oo
ti
n
g
th
e
m
es
se
n
ge
r,
bu
t
by
d
ev
el
op
in
g
an
in
tr
ic
at
e

an
d
ef
fe
ct
iv
e
p
la
n
fo
r
co
rr
ec
ti
n
g
th
e
p
ro
bl
em
be
fo
re
it
is
su
ed
in

d
ra
st
ic
re
al
w
or
ld
co
n
se
qu
en
ce
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/m
a
n
a
g
em
en
t/
et
hi
cs
-i
n
-b
u
si
n
es
s/

et
hi
cs
-a
n
-o
ve
rv
ie
w

5/
m
or
a
l-
re
a
so
n
in
g
-a
n
d
-e
th
ic
s-
-3
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

36

C
ul
tu
re

an
d
E
th
ic
s

D
i
er
en

t
cu

ltu
re
s
ho

ld
d
i
er
en

t
va

lu
es

,m
ak

in
g
it
to
ug

h
to

m
ak

e
a
si
ng

ul
ar

“r
ig
ht

et
hi
ca

lc
ho

ic
e.

K
E
Y
P
O
IN
TS


C
u
lt
u
re
is
th
e
ou
tl
oo
k,
at
ti
tu
d
es
,v
al
u
es
,g
oa
ls
,a
n
d
p
ra
ct
ic
es

sh
ar
ed
by
a
so
ci
et
y.


P
eo
p
le
ca
n
re
fl
ec
t
th
e
cu
lt
u
re
of
th
ei
r
co
u
n
tr
y,
re
gi
on
,a
n
d
/o
r

su
bg
ro
u
p
.


A
cc
or
d
in
g
to
th
e
th
eo
ry
of
cu
lt
u
ra
lr
el
at
iv
is
m
,t
h
er
e
is
n
o

si
n
gu
la
r
tr
u
th
on
w
h
ic
h
to
ba
se
et
h
ic
al
or
m
or
al
be
h
av
io
r,
as

ou
r
in
te
rp
re
ta
ti
on
s
of
tr
u
th
s
ar
e
in
fl
u
en
ce
d
by
ou
r
ow
n

cu
lt
u
re
.


U
n
iv
er
sa
li
st
s
d
on
‘t
ag
re
e
w
it
h
cu
lt
u
ra
lr
el
at
iv
is
m
;t
h
ey
ar
gu
e

th
at
w
h
il
e
be
h
av
io
r
m
ay
d
if
fe
r
fr
om
cu
lt
u
re
to
cu
lt
u
re
,t
h
es
e

ar
e
su
rf
ac
e
d
if
fe
re
n
ce
s
su
p
p
or
te
d
by
m
or
al
p
ri
n
ci
p
le
s
th
at
ar
e

co
m
m
on
ac
ro
ss
cu
lt
u
re
s.

C
u
lt
u
re
:
A
n
In
tr
o
d
u
ct
io
n

C
u
lt
u
re
d
es
cr
ib
es
p
eo
p
le
‘s
‘w
ay
of
li
fe
,’
m
ea
n
in
g
th
e
w
ay
th
ey
d
o

th
in
gs
.I
t
is
th
e
ou
tl
oo
k,
at
ti
tu
d
es
,v
al
u
es
,g
oa
ls
,a
n
d
p
ra
ct
ic
es

sh
ar
ed
by
a
so
ci
et
y.
D
if
fe
re
n
t
gr
ou
p
s
of
p
eo
p
le
m
ay
h
av
e
d
if
fe
re
n
t

cu
lt
u
re
s.

C
u
lt
u
re
is
m
or
e
th
an
ju
st
m
at
er
ia
lg
oo
d
s,
or
th
e
th
in
gs
th
e
cu
lt
u
re

u
se
s
an
d
p
ro
d
u
ce
s.
C
u
lt
u
re
is
al
so
th
e
be
li
ef
s
an
d
va
lu
es
of
th
e

p
eo
p
le
in
th
at
cu
lt
u
re
.I
t
in
cl
u
d
es
th
e
w
ay
p
eo
p
le
th
in
k
ab
ou
t
an
d

u
n
d
er
st
an
d
th
e
w
or
ld
an
d
th
ei
r
ow
n
li
ve
s
(F
ig
u
re
1.
15
).

37

Th
ey

m
ay

d
i
er
,b

ut
w
he

re
ve

r
yo

u
go

,y
ou

‘ll
n

d
cu

ltu
ra
lv
al
ue

s.

Fi
g
ur
e
1.
15

C
ul
tu
ra
lM

ap
of
th
e
W
or
ld

C
u
lt
u
re
ca
n
al
so
va
ry
w
it
h
in
a
re
gi
on
,s
oc
ie
ty
,o
r
su
bg
ro
u
p
.A

w
or
kp
la
ce
m
ay
h
av
e
a
sp
ec
if
ic
cu
lt
u
re
th
at
se
ts
it
ap
ar
t
fr
om
si
m
il
ar

w
or
kp
la
ce
s.
A
re
gi
on
of
a
co
u
n
tr
y
m
ay
h
av
e
a
d
if
fe
re
n
t
cu
lt
u
re
th
an

th
e
re
st
of
th
e
co
u
n
tr
y.

C
om
p
an
ie
s
or
ot
h
er
or
ga
n
iz
at
io
n
s
(g
ro
u
p
s
of
p
eo
p
le
)
ca
n
h
av
e
a

se
p
ar
at
e
cu
lt
u
re
.J
ap
an
es
e
m
an
u
fa
ct
u
ri
n
g
co
m
p
an
ie
s
of
te
n
h
av
e
a

d
if
fe
re
n
t
cu
lt
u
re
th
an
ot
h
er
co
m
p
an
ie
s;
th
e
w
or
kd
ay
st
ar
ts
w
it
h

ex
er
ci
se
,a
n
d
th
e
w
or
ke
rs
ar
e
ve
ry
lo
ya
lt
o
th
e
co
m
p
an
y.
So
ft
w
ar
e

an
d
co
m
p
u
te
r
co
m
p
an
ie
s
so
m
et
im
es
al
lo
w
em
p
lo
ye
es
to
p
la
y

ga
m
es
d
u
ri
n
g
th
e
w
or
kd
ay
,o
r
ta
ke
ti
m
e
of
fw
or
k
to
re
la
x,
be
ca
u
se

th
es
e
co
m
p
an
ie
s
be
li
ev
e
th
at
th
is
w
il
lh
el
p
th
e
w
or
ke
rs
to
th
in
k

be
tt
er
.

C
u
lt
u
re
‘s
In
fl
u
e
n
ce
o
n
E
th
ic
s
in
B
u
si
n
e
ss

T
od
ay
‘s
gl
ob
al
co
m
p
an
ie
s
al
lo
w
p
eo
p
le
to
w
or
k
w
it
h
ot
h
er
s
fr
om

d
if
fe
re
n
t
p
ar
ts
of
th
e
w
or
ld
,a
s
em
p
lo
ye
es
,m
an
ag
er
s,
an
d

co
ll
ea
gu
es
.T
h
is
is
on
ly
on
e
w
ay
th
at
th
e
va
ri
et
y
of
cu
lt
u
re
s
m
ig
h
t

be
in
cr
ea
se
d
.E
m
p
lo
ye
es
m
ay
br
in
g
cu
st
om
s
an
d
tr
ad
it
io
n
s
fr
om

h
om
e
co
u
n
tr
ie
s
an
d
h
om
e
bu
si
n
es
se
s
to
th
e
gl
ob
al
of
fi
ce
.

C
u
lt
u
ra
ln
or
m
s
ar
e
th
e
sh
ar
ed
,s
an
ct
io
n
ed
,a
n
d
in
te
gr
at
ed
sy
st
em
s

of
be
li
ef
s
an
d
p
ra
ct
ic
es
th
at
ar
e
p
as
se
d
d
ow
n
th
ro
u
gh
ge
n
er
at
io
n
s

an
d
ch
ar
ac
te
ri
ze
a
cu
lt
u
ra
lg
ro
u
p
.N
or
m
s
cu
lt
iv
at
e
re
li
ab
le

gu
id
el
in
es
fo
r
d
ai
ly
li
vi
n
g
an
d
co
n
tr
ib
u
te
to
th
e
h
ea
lt
h
an
d
w
el
l-

be
in
g
of
a
cu
lt
u
re
.T
h
ey
ac
t
as
p
re
sc
ri
p
ti
on
s
fo
r
co
rr
ec
t
an
d
m
or
al

be
h
av
io
r,
le
n
d
m
ea
n
in
g
an
d
co
h
er
en
ce
to
li
fe
,a
n
d
p
ro
vi
d
e
a
m
ea
n
s

to
ac
h
ie
ve
a
se
n
se
of
in
te
gr
it
y,
sa
fe
ty
,a
n
d
be
lo
n
gi
n
g.
T
h
es
e

n
or
m
at
iv
e
be
li
ef
s,
to
ge
th
er
w
it
h
re
la
te
d
cu
lt
u
ra
lv
al
u
es
an
d
ri
tu
al
s,

p
re
se
n
t
a
se
n
se
of
or
d
er
an
d
co
n
tr
ol
u
p
on
as
p
ec
ts
of
li
fe
th
at
m
ig
h
t

ot
h
er
w
is
e
ap
p
ea
r
ch
ao
ti
c
or
u
n
p
re
d
ic
ta
bl
e.

T
h
is
is
w
h
er
e
cu
lt
u
re
in
te
rs
ec
ts
et
h
ic
s.
W
h
en
on
e
h
as
to
m
ak
e
an

et
h
ic
al
d
ec
is
io
n
,t
h
ey
d
o
so
th
ro
u
gh
th
e
le
n
s
of
th
ei
r
cu
lt
u
re
.W
h
at

h
ap
p
en
s
w
h
en
on
e
cu
lt
u
re
sa
ys
a
p
ra
ct
ic
e
is
et
h
ic
al
an
d
an
ot
h
er

sa
ys
it
is
n
‘t?

C
u
lt
u
ra
l
R
e
la
ti
vi
sm

C
u
lt
u
ra
lR
el
at
iv
is
m
fo
cu
se
s
on
th
is
is
su
e.
It
st
at
es
th
er
e
is
n
o

si
n
gu
la
r
tr
u
th
on
w
h
ic
h
to
ba
se
et
h
ic
al
or
m
or
al
be
h
av
io
r,
as
ou
r

in
te
rp
re
ta
ti
on
s
of
tr
u
th
s
ar
e
in
fl
u
en
ce
d
by
ou
r
ow
n
cu
lt
u
re
.

A
lo
n
g
w
it
h
m
o
ra
l
re
la
ti
vi
sm
,i
t
h
ol
d
s
th
e
p
os
it
io
n
th
at
th
er
e
is
n
o

ab
so
lu
te
or
u
n
iv
er
sa
ls
et
of
va
lu
es
or
p
ri
n
ci
p
le
s
th
at
ca
n
be
u
se
d
to

ju
d
ge
h
u
m
an
be
h
av
io
r.
It
d
if
fe
rs
fr
om
m
or
al
re
la
ti
vi
sm
in
th
at
it

si
tu
at
es
m
or
al
be
h
av
io
r
as
be
in
g
re
la
ti
ve
to
(c
on
fo
rm
in
g
w
it
h
)
a

le
ar
n
ed
se
t
of
cu
lt
u
ra
ln
or
m
s,
ra
th
er
th
an
be
in
g
re
la
ti
ve
to
th
e

ac
ti
on
s
of
th
e
in
d
iv
id
u
al
.I
n
th
is
se
n
se
it
co
n
si
d
er
s
m
or
al
be
h
av
io
r

to
be
h
is
to
ri
ca
ll
y
an
d
co
n
te
xt
u
al
ly
si
tu
at
ed
.

C
u
lt
u
ra
lr
el
at
iv
is
m
is
a
n
or
m
at
iv
e
et
h
ic
al
p
os
it
io
n
ra
th
er
th
an
a

p
re
sc
ri
p
ti
ve
on
e.
T
h
at
is
,r
at
h
er
th
an
p
re
sc
ri
bi
n
g
w
h
at
ou
gh
t
to
be

d
on
e
in
a
sp
ec
if
ic
si
tu
at
io
n
,i
t
d
es
cr
ib
es
th
e
w
ay
p
eo
p
le
be
h
av
e
in

th
at
si
tu
at
io
n
.

38

T
h
e
ba
si
s
fo
r
cu
lt
u
ra
lr
el
at
iv
is
m
is
th
e
ob
se
rv
at
io
n
th
at
d
if
fe
re
n
t

cu
lt
u
re
s
h
av
e
d
if
fe
re
n
t
se
ts
of
n
or
m
s
an
d
va
lu
es
th
at
go
ve
rn

be
h
av
io
r
in
th
ei
r
cu
lt
u
ra
l.
T
h
is
is
in
co
n
tr
as
t
to
u
n
iv
er
sa
li
sm
,w
h
ic
h

h
ol
d
s
th
e
p
os
it
io
n
th
at
m
or
al
va
lu
es
ar
e
th
e
sa
m
e
fo
r
ev
er
yo
n
e.

C
u
lt
u
ra
lr
el
at
iv
is
ts
co
n
si
d
er
th
is
to
be
an
e
th
n
o
ce
n
tr
ic
vi
ew
as
th
e

u
n
iv
er
sa
ls
et
of
va
lu
es
p
ro
p
os
ed
by
u
n
iv
er
sa
li
st
s
ar
e
ba
se
d
on
th
ei
r

se
t
of
va
lu
es
.C
u
lt
u
ra
lr
el
at
iv
is
m
is
al
so
co
n
si
d
er
ed
to
be
m
or
e

to
le
ra
n
t
th
an
u
n
iv
er
sa
li
sm
be
ca
u
se
,i
ft
h
er
e
is
n
o
ba
si
s
fo
r
m
ak
in
g

m
or
al
ju
d
gm
en
ts
be
tw
ee
n
cu
lt
u
re
s,
th
en
cu
lt
u
re
s
h
av
e
to
be

to
le
ra
n
t
of
ea
ch
ot
h
er
.

C
u
lt
u
ra
lr
el
at
iv
is
m
h
as
be
en
cr
it
ic
iz
ed
fo
r
it
s
fo
cu
s
on
be
h
av
io
r.
F
or

ex
am
p
le
,u
n
iv
er
sa
li
st
s
ar
gu
e
th
at
w
h
il
e
be
h
av
io
r
m
ay
d
if
fe
r
fr
om

cu
lt
u
re
to
cu
lt
u
re
,t
h
es
e
ar
e
su
rf
ac
e
d
if
fe
re
n
ce
s
su
p
p
or
te
d
by
m
or
al

p
ri
n
ci
p
le
s
th
at
ar
e
co
m
m
on
ac
ro
ss
cu
lt
u
re
s.
C
om
p
an
ie
s
th
at
tr
y
to

cr
ea
te
a
co
m
m
on
co
d
e
of
co
n
d
u
ct
ac
ro
ss
al
lo
ft
h
ei
r
lo
ca
ti
on
s
ar
e
in

a
se
n
se
op
er
at
in
g
u
n
d
er
th
e
vi
ew
th
at
a
u
n
iv
er
sa
ls
et
of
va
lu
es
d
o

in
d
ee
d
ex
is
t.

E
X
A
M
P
LE

T
h
e
F
re
n
ch
an
d
A
m
er
ic
an
s
h
av
e
d
if
fe
re
n
t
vi
ew
s
on
w
h
is
tl
e-

bl
ow
in
g.
C
om
p
ar
ed
to
th
e
F
re
n
ch
,A
m
er
ic
an
co
m
p
an
ie
s

co
n
si
d
er
it
to
be
a
n
at
u
ra
lp
ar
t
of
bu
si
n
es
s.
So
n
at
u
ra
l,
in
fa
ct
,

th
at
th
ey
se
t
u
p
an
on
ym
ou
s
h
ot
li
n
es
.T
h
e
F
re
n
ch
,o
n
th
e
ot
h
er

h
an
d
,v
ie
w
w
h
is
tl
e-
bl
ow
in
g
as
u
n
d
er
m
in
in
g
so
li
d
ar
it
y
am
on
gs
t

co
-w
or
ke
rs
an
d
d
ep
lo
re
su
ch
p
ro
ce
d
u
re
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/m
a
n
a
g
em
en
t/
et
hi
cs
-i
n
-b
u
si
n
es
s/

et
hi
cs
-a
n
-o
ve
rv
ie
w

5/
cu
lt
u
re
-a
n
d
-e
th
ic
s-
-3
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

39

P
er
so

na
lV

al
ue

s
an

d
E
th
ic
s

E
m
p
lo
ye

es
ca

n
m
or
e
ea

si
ly

m
ak

e
et
hi
ca

ld
ec

is
io
ns

th
at

p
ro
m
ot
e
a
co

m
p
an

y’
s
va

lu
es

an
d
go

al
s
w
he

n
th
ei
r

p
er
so

na
lv

al
ue

s
m
at
ch

th
e
co

m
p
an

y’
s
no

rm
s.

K
E
Y
P
O
IN
TS


P
er
so
n
al
va
lu
es
p
ro
vi
d
e
an
in
te
rn
al
re
fe
re
n
ce
fo
r
w
h
at
is

go
od
,b
en
ef
ic
ia
l,
im
p
or
ta
n
t,
u
se
fu
l,
be
au
ti
fu
l,
d
es
ir
ab
le
,a
n
d

co
n
st
ru
ct
iv
e.


O
ve
r
ti
m
e
th
e
p
u
bl
ic
ex
p
re
ss
io
n
of
p
er
so
n
al
va
lu
es
la
y
th
e

fo
u
n
d
at
io
n
s
of
la
w
,c
u
st
om
an
d
tr
ad
it
io
n
.


V
al
u
es
ar
e
ob
ta
in
ed
fr
om
on
e’
s
fa
m
il
y,
sc
h
oo
l,
an
d
re
li
gi
on
.

A
n
In
tr
o
d
u
ct
io
n
to
P
e
rs
o
n
a
l
V
a
lu
e
s

P
er
so
n
al
va
lu
es
p
ro
vi
d
e
an
in
te
rn
al
re
fe
re
n
ce
fo
r
w
h
at
is
go
od
,

be
n
ef
ic
ia
l,
im
p
or
ta
n
t,
u
se
fu
l,
be
au
ti
fu
l,
d
es
ir
ab
le
,a
n
d
co
n
st
ru
ct
iv
e.

V
al
u
es
ge
n
er
at
e
be
h
av
io
r
an
d
h
el
p
so
lv
e
co
m
m
on
h
u
m
an
p
ro
bl
em
s

of
su
rv
iv
al
by
co
m
p
ar
at
iv
e
ra
n
ki
n
gs
of
va
lu
e,
th
e
re
su
lt
s
of
w
h
ic
h

p
ro
vi
d
e
an
sw
er
s
to
qu
es
ti
on
s
of
w
h
y
p
eo
p
le
d
o
w
h
at
th
ey
d
o.

W
ya
tt
W
oo
d
sm
al
lp
oi
n
ts
ou
t
th
at
“c
ri
te
ri
a”
ar
e
u
se
d
to
re
fe
r
to
“t
h
e

st
an
d
ar
d
s
on
w
h
ic
h
an
ev
al
u
at
io
n
is
ba
se
d
.”
V
al
u
es
re
la
te
th
en
to

w
h
at
on
e
w
an
ts
an
d
in
w
h
at

or
d
er
on
e
w
an
ts
th
em
.T
o
th
is

p
oi
n
t,
cr
it
er
ia
ac
ts
as
a

co
m
p
ar
at
iv
e
st
an
d
ar
d
to

ev
al
u
at
e
w
h
et
h
er
go
al
s
an
d

va
lu
es
h
av
e
be
en
m
et
.

O
ve
r
ti
m
e
th
e
p
u
bl
ic
ex
p
re
ss
io
n

of
p
er
so
n
al
va
lu
es
la
y
th
e

fo
u
n
d
at
io
n
s
of
la
w
,c
u
st
om
,a
n
d

tr
ad
it
io
n
.P
er
so
n
al
va
lu
es
in
th
is

w
ay
ex
is
t
in
re
la
ti
on
to
cu
lt
u
ra
l

va
lu
es
,e
it
h
er
in
ag
re
em
en
t
w
it
h

or
d
iv
er
ge
n
t
fr
om
p
re
va
il
in
g

n
or
m
s.

W
it
h
ou
t
p
er
so
n
al
va
lu
es
,t
h
er
e
w
ou
ld
be
n
o
cu
lt
u
ra
lr
ef
er
en
ce

ag
ai
n
st
w
h
ic
h
to
m
ea
su
re
th
e
vi
rt
u
e
of
in
d
iv
id
u
al
va
lu
es
.A
s
a

co
n
se
qu
en
ce
,c
u
lt
u
ra
li
d
en
ti
ty
w
ou
ld
d
is
in
te
gr
at
e.

T
h
e
F
o
rm
a
ti
o
n
o
f
P
e
rs
o
n
a
l
V
a
lu
e
s

V
al
u
es
ar
e
ob
ta
in
ed
in
m
an
y
d
if
fe
re
n
t
w
ay
s:


T
h
e
m
os
t
im
p
or
ta
n
t
p
la
ce
fo
r
bu
il
d
in
g
va
lu
es
is
a
p
er
so
n
‘s

fa
m
il
y.
T
h
e
fa
m
il
y
is
re
sp
on
si
bl
e
fo
r
te
ac
h
in
g
ch
il
d
re
n
w
h
at

40

P
er
so

na
lv
al
ue

s
ar
e
le
ar
ne

d
at

an
ea

rly
ag

e.

Fi
g
ur
e
1.
16

Fo
rm

in
g
P
er
so
na
lV
al
ue
s

is
ri
gh
t
an
d
w
ro
n
g
lo
n
g
be
fo
re
th
er
e
ar
e
ot
h
er
in
fl
u
en
ce
s.
It

is
th
u
s
sa
id
th
at
a
ch
il
d
is
a
re
fl
ec
ti
on
of
h
is
or
h
er
p
ar
en
ts
.


A
s
a
ch
il
d
st
ar
ts
sc
h
oo
l,
te
ac
h
er
s
an
d
cl
as
sm
at
es
h
el
p
sh
ap
e

th
e
va
lu
es
of
ch
il
d
re
n
.


R
el
ig
io
n
al
so
p
la
ys
a
ro
le
in
te
ac
h
in
g
ch
il
d
re
n
va
lu
es
(F
ig
u
re

1.
16
).

A
cc
or
d
in
g
to
Sh
iv
am
Sh
ar
m
a,
va
lu
es
ar
e
fo
rm
ed
d
u
ri
n
g
th
re
e

si
gn
if
ic
an
t
p
er
io
d
s:

1.
Im
p
ri
n
t
p
er
io
d
fr
om
bi
rt
h

7
ye
ar
s.

2.
M
od
el
li
n
g
p
er
io
d
fr
om
8

13
ye
ar
s.

3.
So
ci
al
iz
at
io
n
p
er
io
d
fr
om
13

21
ye
ar
s.

P
e
rs
o
n
a
l
V
a
lu
e
s
a
n
d
E
th
ic
s
in
B
u
si
n
e
ss

E
m
p
lo
ye
rs
d
o
th
ei
r
be
st
to
h
ir
e
in
d
iv
id
u
al
s
w
h
o
ar
e
a
go
od
fi
t,

m
ea
n
in
g
th
at
th
ey
m
at
ch
w
el
lw
it
h
th
e
or
ga
n
iz
at
io
n
‘s
n
or
m
s.
St
il
l,

p
eo
p
le
ar
e
n
ot
cl
on
es
.T
h
ey
co
m
e
in
to
an
or
ga
n
iz
at
io
n
w
it
h
th
e

p
er
so
n
al
va
lu
es
th
ey
ob
ta
in
ed
fr
om
th
ei
r
fa
m
il
y,
sc
h
oo
l,
an
d

re
li
gi
on
.A
co
n
fl
ic
t
ca
n
oc
cu
r
w
h
en
an
em
p
lo
ye
e
h
as
to
m
ak
e
an

et
h
ic
al
d
ec
is
io
n
if
th
ei
r
p
er
so
n
al
va
lu
es
d
o
n
ot
m
at
ch
th
e

or
ga
n
iz
at
io
n
‘s
n
or
m
s.

T
h
e
em
p
lo
ye
e
m
ay
n
ot
op
en
ly
ex
p
re
ss
th
ei
r
d
iv
er
ge
n
t
vi
ew
,b
u
t

th
ei
r
re
si
st
an
ce
to
th
e
n
or
m
s
of
th
e
or
ga
n
iz
at
io
n
ca
n
st
il
ls
u
rf
ac
e
in

su
bt
le
w
ay
s.
A
n
d
li
ke
a
ca
n
ce
r,
th
ei
r
st
an
ce
ca
n
sp
re
ad
th
ro
u
gh
ou
t

th
e
or
ga
n
iz
at
io
n
,c
au
si
n
g
n
eg
at
iv
it
y
an
d
d
ys
fu
n
ct
io
n
.

A
s
in
a
fa
m
il
y
w
h
er
e
th
e
sa
yi
n
g
“p
ar
en
ts
kn
ow
be
st

p
re
va
il
s,

em
p
lo
ye
es
sh
ou
ld
re
m
em
be
r
th
at
th
ei
r
d
ec
is
io
n
s
n
ee
d
to
be
ba
se
d

on
th
e
or
ga
n
iz
at
io
n
‘s
n
or
m
s
an
d
n
ot
th
ei
r
ow
n
p
er
so
n
al
va
lu
es
if

th
e
bu
si
n
es
s
is
to
ru
n
su
cc
es
sf
u
ll
y.

E
X
A
M
P
LE

If
yo
u
va
lu
e
eq
u
al
ri
gh
ts
fo
r
al
la
n
d
yo
u
go
to
w
or
k
fo
r
an

or
ga
n
iz
at
io
n
th
at
tr
ea
ts
it
s
m
an
ag
er
s
m
u
ch
be
tt
er
th
an
it
d
oe
s

it
s
w
or
ke
rs
,y
ou
m
ay
fo
rm
th
e
at
ti
tu
d
e
th
at
th
e
co
m
p
an
y
is
an

u
n
fa
ir
p
la
ce
to
w
or
k;
co
n
se
qu
en
tl
y,
yo
u
m
ay
n
ot
p
ro
d
u
ce
w
el
l

or
m
ay
p
er
h
ap
s
le
av
e
th
e
co
m
p
an
y.
It
is
li
ke
ly
th
at
if
th
e

co
m
p
an
y
h
ad
a
m
or
e
eg
al
it
ar
ia
n
p
ol
ic
y,
yo
u
r
at
ti
tu
d
e
an
d

be
h
av
io
rs
w
ou
ld
h
av
e
be
en
m
or
e
p
os
it
iv
e.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/m
a
n
a
g
em
en
t/
et
hi
cs
-i
n
-b
u
si
n
es
s/

et
hi
cs
-a
n
-o
ve
rv
ie
w

5/
p
er
so
n
a
l-
va
lu
es
-a
n
d
-e
th
ic
s-
-3
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

41

B
lu
rr
in
g
E
th
ic
al

Li
ne

s
Th

er
e
is

no
cl
ea

r
gu

id
el
in
e
fo
r
en

fo
rc
in
g
et
hi
cs

w
ith

in
an

or
ga

ni
za

tio
n;

it
is

up
to

a
co

m
p
an

y
to

es
ta
b
lis
h
an

et
hi
ca

lc
od

e
its

em
p
lo
ye

es
ca

n
up

ho
ld
.

K
E
Y
P
O
IN
TS


D
ef
in
in
g
bu
si
n
es
s
et
h
ic
s
is
h
ar
d
be
ca
u
se
u
n
li
ke
la
w
s,
w
h
ic
h

ar
e
w
ri
tt
en
d
ow
n
an
d
u
su
al
ly
p
re
d
ic
ta
bl
e
in
ap
p
li
ca
ti
on
,

et
h
ic
s
ar
e
n
or
m
s
th
at
h
av
e
ev
ol
ve
d
fr
om
ou
r
re
li
gi
ou
s
an
d

cu
lt
u
ra
lh
er
it
ag
e
an
d
ar
e
in
te
rp
re
te
d
en
d
le
ss
ly
.


It
is
th
e
d
u
ty
of
a
le
ad
er
to
co
m
m
it
to
h
ig
h
et
h
ic
al
st
an
d
ar
d
s.


A
s
th
er
e
ar
e
m
an
y
et
h
ic
al
gr
ay
ar
ea
s,
it
is
of
te
n
d
if
fi
cu
lt
to

m
ak
e
et
h
ic
al
d
ec
is
io
n
s
in
ce
rt
ai
n
si
tu
at
io
n
s.

B
lu
rr
in
g
E
th
ic
a
l
L
in
e
s

T
h
er
e
ar
e
m
an
y
d
if
fe
re
n
t
in
st
an
ce
s
w
h
er
e
a
bu
si
n
es
s
w
as
ca
u
gh
t

co
m
m
it
ti
n
g
ac
ts
th
at
w
er
e
le
ss
th
an
et
h
ic
al
.T
h
er
e
ar
e
ti
m
es
w
h
en
a

bu
si
n
es
s
p
ra
ct
ic
e
is
w
id
es
p
re
ad
an
d
th
e
go
ve
rn
m
en
t
n
ee
d
s
to
st
ep

in
an
d
ch
an
ge
re
gu
la
ti
on
s.
T
h
e
Sa
rb
an
es

O
xl
ey
A
ct
of
20
0
2

re
fo
rm
ed
ac
co
u
n
ti
n
g
p
ra
ct
ic
es
af
te
r
a
se
ri
es
of
bu
si
n
es
s
ac
co
u
n
ti
n
g

sc
an
d
al
s.
T
h
e
20
0
0
‘s
h
ou
si
n
g
cr
is
is
is
of
te
n
bl
am
ed
on
th
e

re
la
xa
ti
on
of
fe
d
er
al
re
gu
la
ti
on
s
th
at
al
lo
w
ed
ba
n
ks
to
en
ac
t

qu
es
ti
on
ab
le
bu
si
n
es
s
p
ra
ct
ic
es
.

L
ar
ge
co
rp
or
at
io
n
s
of
te
n
h
av
e
th
e
st
ig
m
a
of
fo
cu
si
n
g
on
p
ro
fi
ts

in
st
ea
d
of
p
eo
p
le
.W
h
il
e
n
ot
ev
er
y
bu
si
n
es
s
co
m
m
it
s
u
n
et
h
ic
al
ac
ts
,

th
e
on
es
th
at
h
av
e
be
en
ca
u
gh
t
ca
n
m
ak
e
th
e
ge
n
er
al
p
u
bl
ic
be
li
ev
e

th
is
n
eg
at
iv
e
im
ag
e.
T
h
is
is
on
e
re
as
on
w
h
y
u
n
d
er
st
an
d
in
g
bu
si
n
es
s

et
h
ic
s
is
an
im
p
or
ta
n
t
p
ar
t
of
th
e
cu
rr
ic
u
lu
m
in
m
an
y
bu
si
n
es
s

co
ll
eg
es
.

So
w
h
y
is
it
th
at
so
m
e
bu
si
n
es
se
s
an
d
in
d
iv
id
u
al
s
co
m
m
it
ac
ts
th
at

ar
e
se
em
in
gl
y
u
n
et
h
ic
al
?
It
is
n
‘t
be
ca
u
se
th
ey
la
ck
a
cl
ea
r
id
ea
of

ri
gh
t
or
w
ro
n
g;
ra
th
er
,i
t’s
be
ca
u
se
et
h
ic
s
it
se
lf
is
fu
ll
of
gr
ay
ar
ea
s

an
d
p
eo
p
le
of
te
n
h
av
e
th
e
ab
il
it
y
to
ju
st
if
y
su
ch
qu
es
ti
on
ab
le

be
h
av
io
r.

W
h
e
n
E
g
o
T
a
k
e
s
C
o
n
tr
o
l

A
st
u
d
y
by
P
ro
fe
ss
or
R
ob
er
t
P
re
n
ti
ce
su
gg
es
ts
th
at
se
lf
-i
m
ag
e
ca
n

in
fl
u
en
ce
an
in
d
iv
id
u
al
‘s
d
ec
is
io
n
-m
ak
in
g
p
ro
ce
ss
,m
ak
in
g
h
im
or

h
er
fe
el
ju
st
if
ie
d
in
ta
ki
n
g
sh
or
t
cu
ts
or
d
oi
n
g
th
in
gs
th
at
ar
e

qu
es
ti
on
ab
le
et
h
ic
al
ly
.I
n
ad
d
it
io
n
,t
h
er
e
ar
e
ti
m
es
w
h
en
p
eo
p
le

be
li
ev
e
th
at
th
e
en
d
s
ju
st
if
y
th
e
m
ea
n
s.
In
ot
h
er
w
or
d
s,
if
th
e
re
su
lt

of
an
ac
ti
on
is
go
od
,t
h
en
it
is
ok
ay
if
th
e
ac
ti
on
it
se
lf
is
u
n
et
h
ic
al
.

T
h
er
e
is
a
sa
yi
n
g
th
at
a
go
od
p
er
so
n
is
on
e
w
h
o
d
oe
s
go
od
d
ee
d
s

w
h
en
n
o
on
e
is
lo
ok
in
g.
T
h
e
sa
m
e
go
es
w
it
h
et
h
ic
al
d
ec
is
io
n
s.

P
eo
p
le
w
h
o
ar
e
et
h
ic
al
fo
ll
ow
th
ei
r
be
li
ef
s
ev
en
w
h
en
th
ey
be
li
ev
e

n
o
on
e
w
il
lf
in
d
ou
t
ab
ou
t
w
h
at
th
ey
h
av
e
d
on
e.
A
s
w
it
h
th
e
ca
se
of

th
e
ac
co
u
n
ti
n
g
p
ra
ct
ic
es
,t
h
os
e
w
h
o
co
m
m
it
te
d
th
e
d
is
cr
ep
an
ci
es

42

be
li
ev
ed
th
at
th
ey
w
ou
ld
n
‘t
be
d
is
co
ve
re
d
.O
th
er
s
th
ou
gh
t
th
at
if

th
e
is
su
es
w
er
e
d
is
co
ve
re
d
,t
h
e
ac
ti
on
s
w
ou
ld
n
‘t
be
tr
ac
ed
ba
ck
to

th
em
.T
h
ey
h
ad
th
e
op
p
or
tu
n
it
y
to
be
et
h
ic
al
bu
t
ch
os
e
n
ot
to
be
.

B
u
si
n
e
ss
E
th
ic
s
A
ro
u
n
d
th
e
G
lo
b
e

So
ci
al
n
or
m
s
ar
en
‘t
id
en
ti
ca
li
n
d
if
fe
re
n
t
co
u
n
tr
ie
s.
W
h
en

bu
si
n
es
se
s
fr
om
th
e
U
n
it
ed
St
at
es
an
d
ot
h
er
co
u
n
tr
ie
s
w
it
h
st
ro
n
g

et
h
ic
s
es
ta
bl
is
h
op
er
at
io
n
s
in
le
ss
et
h
ic
al
co
u
n
tr
ie
s,
co
n
fl
ic
ts
of
te
n

ar
is
e.
T
h
er
e
ar
e
co
u
n
tr
ie
s
w
h
er
e
of
fe
ri
n
g
br
ib
es
to
ob
ta
in
n
ec
es
sa
ry

p
er
m
it
s
is
co
m
m
on
p
ra
ct
ic
e.
If
a
co
m
p
an
y
h
as
a
p
ol
ic
y
of
n
ot

br
ib
in
g
p
ol
it
ic
al
of
fi
ci
al
s,
h
ow
w
il
le
m
p
lo
ye
es
ob
ta
in
th
e
n
ec
es
sa
ry

d
oc
u
m
en
ts
?
In
ad
d
it
io
n
,h
ow
w
il
le
m
p
lo
ye
es
of
th
es
e
fo
re
ig
n

co
u
n
tr
ie
s
fu
n
ct
io
n
w
or
ki
n
g
fo
r
a
co
m
p
an
y
w
it
h
su
ch
d
if
fe
re
n
t

p
ol
ic
ie
s?

W
h
il
e
bu
si
n
es
s
et
h
ic
s
is
an
im
p
or
ta
n
t
is
su
e,
th
er
e
is
n
o
cl
ea
r

gu
id
el
in
e
fo
r
cr
ea
ti
n
g
an
d
en
fo
rc
in
g
et
h
ic
s
w
it
h
in
an
or
ga
n
iz
at
io
n
.

It
is
u
p
to
a
co
m
p
an
y
an
d
it
s
st
ak
eh
ol
d
er
s
to
es
ta
bl
is
h
an
et
h
ic
al

co
d
e
it
s
em
p
lo
ye
es
ca
n
u
p
h
ol
d
( F
ig
u
re
1.
17
).

E
X
A
M
P
LE

A
m
er
ic
an
co
m
p
an
ie
s
ar
e
of
te
n
cr
it
ic
iz
ed
fo
r
th
e
tr
ea
tm
en
t
of

w
or
ke
rs
w
h
o
p
ro
d
u
ce
th
ei
r
p
ro
d
u
ct
s
in
C
h
in
a.
H
ow
ev
er
,r
u
le
s

co
n
ce
rn
in
g
th
e
ri
gh
ts
of
w
or
ke
rs
ar
e
m
u
ch
m
or
e
re
la
xe
d
in

C
h
in
a
th
an
in
th
e
U
n
it
ed
St
at
es
.D
oe
s
an
A
m
er
ic
an
co
m
p
an
y

h
av
e
th
e
ri
gh
t
to
or
d
er
a
fa
ct
or
y
in
C
h
in
a
to
ch
an
ge
th
ei
r
w
ay

of
d
oi
n
g
bu
si
n
es
s?
T
h
at
is
on
e
ex
am
p
le
of
an
et
h
ic
al
gr
ay
ar
ea

in
to
d
ay
‘s
gl
ob
al
iz
ed
ec
on
om
y.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/m
a
n
a
g
em
en
t/
et
hi
cs
-i
n
-b
u
si
n
es
s/

et
hi
cs
-a
n
-o
ve
rv
ie
w

5/
bl
u
rr
in
g
-e
th
ic
a
l-
li
n
es

3/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

43

E
th
ic
al

d
ec

is
io
ns

ar
e
no

t
al
w
ay

s
cl
ea

r
cu

t.

Fi
g
ur
e
1.
17

Th
is

W
ay

to
E
th
ic
s

O
ve

rv
ie
w

of
O
rg
an

iz
at
io
na

lS
tr
uc

tu
re

S
ol
e
P
ro
p
rie

to
rs
hi
p
😛

ro
s
an

d
C
on

s

P
ar
tn
er
sh

ip
😛

ro
s
an

d
C
on

s

C
or
p
or
at
io
n:

P
ro
s
an

d
C
on

s

Se
ct
io
n
5

B
us

in
es

s
O
rg
an

iz
at
io
n
Ty
p
es

44

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
b
us

in
es

s-
or
ga

ni
za

tio
n-
ty
p
es

/

O
ve

rv
ie
w

of
O
rg
an

iz
at
io
na

l
S
tr
uc

tu
re

B
us

in
es

s
or
ga

ni
za

tio
ns

ca
n
b
e
st
ru
ct
ur
ed

in
va

rio
us

w
ay

s,
b
ot
h
as

le
ga

le
nt
iti
es

an
d
in

te
rm

s
of

in
te
rn
al

m
an

ag
em

en
t
p
ro
ce

ss
es

.

K
E
Y
P
O
IN
TS


F
ro
m
a
le
ga
ls
tr
u
ct
u
re
p
er
sp
ec
ti
ve
,m
an
y
bu
si
n
es
s
st
ru
ct
u
re
s

re
qu
ir
e
a
fo
rm
of
in
co
rp
or
at
io
n
to
re
gi
st
er
th
e
bu
si
n
es
s
as
a

le
ga
le
n
ti
ty
.T
h
e
bu
si
n
es
s
en
ti
ty
’s
ty
p
e,
it
s
ge
og
ra
p
h
ic
sp
an
of

op
er
at
io
n
s,
ri
sk
p
ro
fi
le
,a
n
d
ot
h
er
fa
ct
or
s
ar
e
is
su
es
to

co
n
si
d
er
w
h
en
ch
oo
si
n
g
w
h
at
en
ti
ty
ty
p
e
to
u
se
.


T
h
er
e
ar
e
va
ri
ou
s
fo
rm
s
of
or
ga
n
iz
at
io
n
al
st
ru
ct
u
re
s
fr
om
a

co
rp
or
at
e
la
w
p
er
sp
ec
ti
ve
,i
n
cl
u
d
in
g
so
le
p
ro
p
ri
et
or
sh
ip
s,

co
op
er
at
iv
es
,p
ar
tn
er
sh
ip
s,
li
m
it
ed
li
ab
il
it
y
co
m
p
an
ie
s,
an
d

co
rp
or
at
io
n
s.


O
n
e
of
th
e
is
su
es
d
iv
id
in
g
th
e
d
if
fe
re
n
t
or
ga
n
iz
at
io
n
al

st
ru
ct
u
re
s
is
th
at
of
li
ab
il
it
y.
W
it
h
so
le
p
ro
p
ri
et
or
sh
ip
s
an
d

so
m
e
fo
rm
s
of
p
ar
tn
er
sh
ip
,o
w
n
er
s
ca
n
be
p
er
so
n
al
ly
li
ab
le

fo
r
bu
si
n
es
s
lo
ss
es
,m
ea
n
in
g
th
ei
r
p
er
so
n
al
as
se
ts
ar
e
n
ot

p
ro
te
ct
ed
ag
ai
n
st
th
e
cl
ai
m
s
of
cr
ed
it
or
s.


In
te
rn
al
ly
,o
rg
an
iz
at
io
n
s
ca
n
al
so
be
st
ru
ct
u
re
d
d
if
fe
re
n
tl
y,
in

te
rm
s
of
th
e
gr
ou
p
in
gs
of
or
ga
n
iz
at
io
n
al
re
la
ti
on
sh
ip
s
an
d
th
e

ch
ar
ac
te
ri
st
ic
s
of
m
an
ag
em
en
t.
So
m
e
co
m
m
on
st
ru
ct
u
re
s
ar
e

K
E
Y
P
O
IN
TS

(c
on
t.
)

th
e
fu
n
ct
io
n
al
,d
iv
is
io
n
al
,m
at
ri
x,
te
am
,n
et
w
or
k,
an
d

m
od
u
la
r
st
ru
ct
u
re
s.


In
d
ep
en
d
en
t
fr
om
th
ei
r
le
ga
la
n
d
in
te
rn
al
st
ru
ct
u
re
s,

or
ga
n
iz
at
io
n
s
ca
n
al
so
op
er
at
e
d
if
fe
re
n
tl
y.
F
or
ex
am
p
le
,

h
yb
ri
d
or
ga
n
iz
at
io
n
s,
w
h
ic
h
m
ay
fa
ll
u
n
d
er
va
ri
ou
s
le
ga
l

ca
te
go
ri
es
,c
an
m
ix
el
em
en
ts
,v
al
u
e
sy
st
em
s
an
d
lo
gi
cs
of

ac
ti
on
fr
om
th
e
p
ri
va
te
,p
u
bl
ic
,a
n
d
vo
lu
n
ta
ry
se
ct
or
s.

45

B
us

in
es

se
s
an

d
th
e
m
ili
ta
ry

ar
e
si
m
ila
r
in

th
at

th
ey

ty
p
ic
al
ly
re
ly
on

so
m
e

fo
rm

of
hi
er
ar
ch

ic
al

or
ga

ni
za

tio
n.

Fi
g
ur
e
1.
18

M
ili
ta
ry
or
ga
ni
za
tio
na
lc
ha
rt

O
rg
a
n
iz
a
ti
o
n
a
l
S
tr
u
ct
u
re

B
u
si
n
es
s
or
ga
n
iz
at
io
n
s
ca
n
be
st
ru
ct
u
re
d
in
va
ri
ou
s
w
ay
s,

d
ep
en
d
in
g
on
th
ei
r
st
an
d
in
g
as
le
ga
le
n
ti
ti
es
,i
n
te
rn
al
st
ru
ct
u
re
,a
n
d

m
an
ag
em
en
t
p
ro
ce
ss
es
(F
ig
u
re
1.
18
).

P
re
-b
u
re
a
u
cr
a
ti
c
st
ru
ct
u
re
s

P
re
-b
u
re
au
cr
at
ic
(e
n
tr
ep
re
n
eu
ri
al
)
st
ru
ct
u
re
s
la
ck
st
an
d
ar
d
iz
at
io
n

of
ta
sk
s.
T
h
is
st
ru
ct
u
re
is
m
os
t
co
m
m
on
in
sm
al
le
r
or
ga
n
iz
at
io
n
s

an
d
is
be
st
u
se
d
to
so
lv
e
si
m
p
le
ta
sk
s.
T
h
e
st
ru
ct
u
re
is
to
ta
ll
y

ce
n
tr
al
iz
ed
an
d
ap
p
ea
rs
li
ke
a
h
ie
ra
rc
h
y.
T
h
e
st
ra
te
gi
c
le
ad
er
m
ak
es

al
lk
ey
d
ec
is
io
n
s
an
d
m
os
t
co
m
m
u
n
ic
at
io
n
is
d
on
e
by
on
e-
on
-o
n
e

co
n
ve
rs
at
io
n
s.
It
is
p
ar
ti
cu
la
rl
y
u
se
fu
lf
or
n
ew
(e
n
tr
ep
re
n
eu
ri
al
)

bu
si
n
es
s
as
it
en
ab
le
s
th
e
fo
u
n
d
er
to
co
n
tr
ol
gr
ow
th
an
d

d
ev
el
op
m
en
t.

B
u
re
a
u
cr
a
ti
c
st
ru
ct
u
re
s

W
eb
er
sa
id
th
at
th
e
fu
ll
y
d
ev
el
op
ed
bu
re
au
cr
at
ic
m
ec
h
an
is
m

co
m
p
ar
es
w
it
h
ot
h
er
or
ga
n
iz
at
io
n
s
ex
ac
tl
y
as
d
oe
s
th
e
m
ac
h
in
e

co
m
p
ar
e
w
it
h
th
e
n
on
-m
ec
h
an
ic
al
m
od
es
of
p
ro
d
u
ct
io
n
.P
re
ci
si
on
,

sp
ee
d
,u
n
am
bi
gu
it
y…
st
ri
ct
su
bo
rd
in
at
io
n
,r
ed
u
ct
io
n
of
fr
ic
ti
on
an
d

of
m
at
er
ia
la
n
d
p
er
so
n
al
co
st
s
ar
e
ra
is
ed
to
th
e
op
ti
m
u
m
p
oi
n
t
in

th
e
st
ri
ct
ly
bu
re
au
cr
at
ic
ad
m
in
is
tr
at
io
n
.B
u
re
au
cr
at
ic
st
ru
ct
u
re
s

h
av
e
a
ce
rt
ai
n
d
eg
re
e
of
st
an
d
ar
d
iz
at
io
n
.T
h
ey
ar
e
be
tt
er
su
it
ed
fo
r

m
or
e
co
m
p
le
x
or
la
rg
er
sc
al
e
or
ga
n
iz
at
io
n
s,
u
su
al
ly
ad
op
ti
n
g
a
ta
ll

st
ru
ct
u
re
.T
h
e
te
n
si
on
be
tw
ee
n
bu
re
au
cr
at
ic
st
ru
ct
u
re
s
an
d
n
on

bu
re
au
cr
at
ic
is
ec
h
oe
d
in
B
u
rn
s
an
d
St
al
ke
r’
s
d
is
ti
n
ct
io
n
be
tw
ee
n

m
ec
h
an
is
ti
c
an
d
or
ga
n
ic
st
ru
ct
u
re
s.

F
u
n
ct
io
n
a
l
st
ru
ct
u
re

E
m
p
lo
ye
es
w
it
h
in
th
e
fu
n
ct
io
n
al
d
iv
is
io
n
s
of
an
or
ga
n
iz
at
io
n
te
n
d

to
p
er
fo
rm
a
sp
ec
ia
li
ze
d
se
t
of
ta
sk
s;
fo
r
in
st
an
ce
,t
h
e
en
gi
n
ee
ri
n
g

d
ep
ar
tm
en
t
is
st
af
fe
d
on
ly
w
it
h
so
ft
w
ar
e
en
gi
n
ee
rs
.T
h
is
le
ad
s
to

op
er
at
io
n
al
ef
fi
ci
en
ci
es
w
it
h
in
th
at
gr
ou
p
.H
ow
ev
er
,i
t
co
u
ld
al
so

le
ad
to
a
la
ck
of
co
m
m
u
n
ic
at
io
n
be
tw
ee
n
th
e
fu
n
ct
io
n
al
gr
ou
p
s

w
it
h
in
an
or
ga
n
iz
at
io
n
,m
ak
in
g
th
e
or
ga
n
iz
at
io
n
sl
ow
an
d
in
fl
ex
ib
le
.

A
s
a
w
h
ol
e,
a
fu
n
ct
io
n
al
or
ga
n
iz
at
io
n
is
be
st
su
it
ed
as
a
p
ro
d
u
ce
r
of

st
an
d
ar
d
iz
ed
go
od
s
an
d
se
rv
ic
es
at
la
rg
e
vo
lu
m
e
an
d
lo
w
co
st
.

D
iv
is
io
n
a
l
st
ru
ct
u
re

A
ls
o
ca
ll
ed
a
“p
ro
d
u
ct
st
ru
ct
u
re
,”
th
e
d
iv
is
io
n
al
st
ru
ct
u
re
gr
ou
p
s

ea
ch
or
ga
n
iz
at
io
n
al
fu
n
ct
io
n
in
to
a
d
iv
is
io
n
.E
ac
h
d
iv
is
io
n
w
it
h
in
a

d
iv
is
io
n
al
st
ru
ct
u
re
co
n
ta
in
s
al
lt
h
e
n
ec
es
sa
ry
re
so
u
rc
es
an
d

fu
n
ct
io
n
s
w
it
h
in
it
.D
iv
is
io
n
s
ca
n
be
ca
te
go
ri
ze
d
by
d
if
fe
re
n
t
p
oi
n
ts

of
vi
ew
.O
n
e
m
ig
h
t
m
ak
e
d
is
ti
n
ct
io
n
s
on
a
ge
og
ra
p
h
ic
al
ba
si
s
(a
U
S

d
iv
is
io
n
an
d
an
E
U
d
iv
is
io
n
,f
or
ex
am
p
le
)
or
on
p
ro
d
u
ct
/s
er
vi
ce

46

ba
si
s
(d
if
fe
re
n
t
p
ro
d
u
ct
s
fo
r
d
if
fe
re
n
t
cu
st
om
er
s,
h
ou
se
h
ol
d
s,
or

co
m
p
an
ie
s)
.I
n
an
ot
h
er
ex
am
p
le
,a
n
au
to
m
ob
il
e
co
m
p
an
y
w
it
h
a

d
iv
is
io
n
al
st
ru
ct
u
re
m
ig
h
t
h
av
e
on
e
d
iv
is
io
n
fo
r
SU
V
s,
an
ot
h
er

d
iv
is
io
n
fo
r
su
bc
om
p
ac
t
ca
rs
,a
n
d
an
ot
h
er
fo
r
se
d
an
s.

M
a
tr
ix
st
ru
ct
u
re

T
h
e
m
at
ri
x
st
ru
ct
u
re
gr
ou
p
s
em
p
lo
ye
es
by
bo
th
fu
n
ct
io
n
an
d

p
ro
d
u
ct
.T
h
is
st
ru
ct
u
re
ca
n
co
m
bi
n
e
th
e
be
st
of
bo
th
se
p
ar
at
e

st
ru
ct
u
re
s.
A
m
at
ri
x
or
ga
n
iz
at
io
n
fr
eq
u
en
tl
y
u
se
s
te
am
s
of

em
p
lo
ye
es
to
ac
co
m
p
li
sh
w
or
k,
in
or
d
er
to
ta
ke
ad
va
n
ta
ge
of

st
re
n
gt
h
s
an
d
m
ak
e
u
p
fo
r
w
ea
kn
es
se
s
of
fu
n
ct
io
n
al
an
d

d
ec
en
tr
al
iz
ed
fo
rm
s.
A
n
ex
am
p
le
w
ou
ld
be
a
co
m
p
an
y
th
at
p
ro
d
u
ce
s

tw
o
p
ro
d
u
ct
s,
“p
ro
d
u
ct
a”
an
d
“p
ro
d
u
ct
b.

U
si
n
g
th
e
m
at
ri
x

st
ru
ct
u
re
,t
h
is
co
m
p
an
y
w
ou
ld
or
ga
n
iz
e
fu
n
ct
io
n
s
w
it
h
in
th
e

co
m
p
an
y
as
fo
ll
ow
s:
“p
ro
d
u
ct
a”
sa
le
s
d
ep
ar
tm
en
t,
“p
ro
d
u
ct
a”

cu
st
om
er
se
rv
ic
e
d
ep
ar
tm
en
t,
“p
ro
d
u
ct
a”
ac
co
u
n
ti
n
g
d
ep
ar
tm
en
t,

“p
ro
d
u
ct
b”
sa
le
s
d
ep
ar
tm
en
t,
“p
ro
d
u
ct
b”
cu
st
om
er
se
rv
ic
e

d
ep
ar
tm
en
t,
“p
ro
d
u
ct
b”
ac
co
u
n
ti
n
g
d
ep
ar
tm
en
t.
M
at
ri
x
st
ru
ct
u
re
is

am
on
gs
t
th
e
p
u
re
st
of
or
ga
n
iz
at
io
n
al
st
ru
ct
u
re
s

a
si
m
p
le
la
tt
ic
e

em
u
la
ti
n
g
or
d
er
an
d
re
gu
la
ri
ty
d
em
on
st
ra
te
d
in
n
at
u
re
.

L
e
g
a
l
co
n
si
d
e
ra
ti
o
n
s

In
th
e
U
S
an
d
el
se
w
h
er
e,
m
an
y
bu
si
n
es
s
st
ru
ct
u
re
s
re
qu
ir
e
a
fo
rm

of
in
co
rp
or
at
io
n
to
re
gi
st
er
th
e
bu
si
n
es
s
as
a
le
ga
le
n
ti
ty
.T
h
e
ow
n
er

fi
le
s
ar
ti
cl
es
of
in
co
rp
or
at
io
n
w
it
h
th
e
se
cr
et
ar
y
of
st
at
e’
s
of
fi
ce
fo
r

th
e
p
ar
ti
cu
la
r
ju
ri
sd
ic
ti
o
n
.T
h
e
or
ga
n
iz
at
io
n
m
ay
al
so
h
ol
d

m
ee
ti
n
gs
,s
el
ec
t
a
bo
ar
d
of
d
ir
ec
to
rs
,a
d
op
t
by
la
w
s,
an
d
re
p
or
t
on
a

re
gu
la
r
ba
si
s.
T
h
e
bu
si
n
es
s
en
ti
ty
’s
ty
p
e,
it
s
ge
og
ra
p
h
ic
sp
an
of

op
er
at
io
n
s,
ri
sk
p
ro
fi
le
,a
n
d
ot
h
er
fa
ct
or
s
ar
e
is
su
es
to
co
n
si
d
er

w
h
en
ch
oo
si
n
g
w
h
at
en
ti
ty
ty
p
e
to
u
se
,i
n
w
h
at
ju
ri
sd
ic
ti
on
to

in
co
rp
o
ra
te
,h
ow
th
e
ar
ti
cl
es
sh
ou
ld
be
d
ra
ft
ed
,a
n
d
if
a
st
oc
k

fo
rm
sh
ou
ld
be
u
se
d
.

B
u
si
n
e
ss
p
e
rs
p
e
ct
iv
e

T
h
er
e
ar
e
va
ri
ou
s
fo
rm
s
of
or
ga
n
iz
at
io
n
al
st
ru
ct
u
re
s
fr
om
a

bu
si
n
es
s
p
er
sp
ec
ti
ve
,i
n
cl
u
d
in
g
so
le
p
ro
p
ri
e
to
rs
h
ip
s,

co
op
er
at
iv
es
,p
a
rt
n
e
rs
h
ip
s,
li
m
it
ed
li
ab
il
it
y
co
m
p
an
ie
s,
an
d

co
rp
or
at
io
n
s.
A
ll
of
th
es
e
st
ru
ct
u
re
s
ar
e
fo
r
p
ro
fi
t,
bu
t
th
er
e
ar
e
al
so

n
on
-p
ro
fi
t
co
rp
or
at
io
n
s
an
d
ot
h
er
st
ru
ct
u
re
s.
T
h
e
d
if
fe
re
n
ce
s
in

st
ru
ct
u
re
s
ca
n
d
ep
en
d
on
th
e
n
u
m
be
r
of
e
n
tr
e
p
re
n
e
u
rs
or
ow
n
er
s

in
vo
lv
ed
,a
n
d
th
e
d
if
fe
re
n
t
ta
x
tr
ea
tm
en
ts
.O
n
e
of
th
e
is
su
es

d
iv
id
in
g
fo
rm
s
is
th
at
of
li
ab
il
it
y.
W
it
h
so
le
p
ro
p
ri
et
or
sh
ip
s
an
d

so
m
e
fo
rm
s
of
p
ar
tn
er
sh
ip
,o
w
n
er
s
ca
n
be
p
er
so
n
al
ly
li
ab
le
fo
r

bu
si
n
es
s
lo
ss
es
,m
ea
n
in
g
th
ei
r
p
er
so
n
al
as
se
ts
ar
e
n
ot
p
ro
te
ct
ed

ag
ai
n
st
th
e
cl
ai
m
s
of
cr
ed
it
or
s.
T
h
es
e
or
ga
n
iz
at
io
n
al
st
ru
ct
u
re
s
ar
e

al
so
n
ot
se
p
ar
at
e
en
ti
ti
es
fr
om
th
e
ow
n
er
s/
en
tr
ep
re
n
eu
rs
,u
n
li
ke
a

co
rp
or
at
io
n
.

47

O
rg
a
n
iz
a
ti
o
n
a
l
b
e
h
a
vi
o
r

In
te
rn
al
ly
,o
rg
an
iz
at
io
n
s
ca
n
al
so
be
st
ru
ct
u
re
d
d
if
fe
re
n
tl
y,
in
te
rm
s

of
th
e
gr
ou
p
in
gs
of
or
ga
n
iz
at
io
n
al
re
la
ti
on
sh
ip
s
an
d
th
e

ch
ar
ac
te
ri
st
ic
s
of
m
an
ag
em
en
t.
So
m
e
co
m
m
on
st
ru
ct
u
re
s
ar
e
th
e

fu
n
ct
io
n
al
,d
iv
is
io
n
al
,m
at
ri
x,
te
am
,n
et
w
or
k,
an
d
m
od
u
la
r

st
ru
ct
u
re
s.

In
d
e
p
e
n
d
e
n
t
fr
om
th
ei
r
le
ga
la
n
d
in
te
rn
al
st
ru
ct
u
re
s,

or
ga
n
iz
at
io
n
s
ca
n
al
so
be
h
av
e
d
if
fe
re
n
tl
y.
F
or
ex
am
p
le
,h
yb
ri
d

or
ga
n
iz
at
io
n
s,
w
h
ic
h
m
ay
fa
ll
u
n
d
er
va
ri
ou
s
le
ga
lc
at
eg
or
ie
s,
ca
n

m
ix
el
em
en
ts
,v
al
u
e
sy
st
em
s,
an
d
lo
gi
cs
of
ac
ti
on
fr
om
th
e
p
ri
va
te
,

p
u
bl
ic
,a
n
d
vo
lu
n
ta
ry
se
ct
or
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
bu
si
n
es
s-
or
g
a
n
iz
a
ti
on
-t
yp
es
/

ov
er
vi
ew
-o
f-
or
g
a
n
iz
a
ti
on
a
l-
st
ru
ct
u
re
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

S
ol
e
P
ro
p
rie

to
rs
hi
p
😛

ro
s
an

d
C
on

s
Th

e
so

le
p
ro
p
rie

to
rs
hi
p
st
ru
ct
ur
e
ha

s
th
e
b
en

e
t
of

si
m
p
lic
ity

an
d
co

nt
ro
lb

ut
th
e
d
ra
w
b
ac

k
of

un
lim

ite
d

lia
b
ili
ty
.

K
E
Y
P
O
IN
TS


T
h
e
so
le
p
ro
p
ri
et
or
sh
ip
is
a
ty
p
e
of
bu
si
n
es
s
st
ru
ct
u
re
op
en
to

bu
si
n
es
se
s
ru
n
an
d
ow
n
ed
by
on
e
en
tr
ep
re
n
eu
r.


A
la
rg
e
ad
va
n
ta
ge
of
th
e
so
le
p
ro
p
ri
et
or
sh
ip
st
ru
ct
u
re
is
it
s

ea
se
.T
h
e
so
le
p
ro
p
ri
et
or
sh
ip
st
ru
ct
u
re
d
oe
s
n
ot
re
qu
ir
e
fi
li
n
g

of
ar
ti
cl
es
of
in
co
rp
or
at
io
n
,r
eg
u
la
r
m
ee
ti
n
gs
,o
r
el
ec
ti
on
of
a

bo
ar
d
.A
so
le
p
ro
p
ri
et
or
al
so
fi
le
s
ta
xe
s
as
p
er
so
n
al
in
co
m
e.


T
h
e
ot
h
er
si
d
e
of
th
is
p
ro
ce
ss
is
th
e
st
ru
ct
u
re
’s
m
ai
n

d
is
ad
va
n
ta
ge
:t
h
er
e
is
n
o
se
p
ar
at
io
n
be
tw
ee
n
th
e

en
tr
ep
re
n
eu
r
an
d
th
e
bu
si
n
es
s.
T
h
is
m
ea
n
s
th
e
so
le

p
ro
p
ri
et
or
is
p
er
so
n
al
ly
li
ab
le
fo
r
bu
si
n
es
s
lo
ss
es
.A
ls
o,
if
th
e

p
ro
p
ri
et
or
d
ie
s,
th
e
bu
si
n
es
s
ce
as
es
to
ex
is
t.

O
ve
rv
ie
w
o
f
B
u
si
n
e
ss
S
tr
u
ct
u
re
s

B
u
si
n
es
s
or
ga
n
iz
at
io
n
s
ca
n
be
st
ru
ct
u
re
d
in
tw
o
m
aj
or
w
ay
s,

n
am
el
y,
in
te
rm
s
of
th
ei
r
st
ru
ct
u
re
s
as
le
ga
le
n
ti
ti
es
an
d
al
so
in

48

te
rm
s
of
th
e
in
te
rn
al
st
ru
ct
u
re
an
d
m
an
ag
em
en
t
p
ro
ce
ss
es
.T
h
e
so
le

p
ro
p
ri
et
or
sh
ip
is
on
e
ty
p
e
of
bu
si
n
es
s
st
ru
ct
u
re
fr
om
a
le
ga
ls
ta
tu
s

p
er
sp
ec
ti
ve
.I
t
is
a
st
ru
ct
u
re
op
en
to
bu
si
n
es
se
s
ru
n
an
d
ow
n
ed
by

on
e
en
tr
ep
re
n
eu
r
(F
ig
u
re
1.
19
).

S
o
le
P
ro
p
ri
e
to
rs
h
ip
:
P
ro
s
a
n
d
C
o
n
s

A
la
rg
e
ad
va
n
ta
ge
of
th
e
so
le
p
ro
p
ri
et
or
sh
ip
st
ru
ct
u
re
is
it
s
ea
se
of

fi
li
n
g
in
co
rp
or
at
io
n
an
d
ta
x
d
oc
u
m
en
ts
as
w
el
la
s
h
av
in
g

u
n
in
te
rr
u
p
te
d
co
n
tr
ol
of
th
e
bu
si
n
es
s.
T
h
e
so
le
p
ro
p
ri
et
or
sh
ip
is

on
e
ty
p
e
of
bu
si
n
es
s
st
ru
ct
u
re
in
th
e
U
S
th
at
d
oe
s
n
ot
re
qu
ir
e

fo
rm
al
in
co
rp
or
at
io
n
,m
ea
n
in
g
th
at
so
le
p
ro
p
ri
et
or
s
d
o
n
ot
n
ee
d
to

fo
rm
al
ly
fi
le
ar
ti
cl
es
of
in
co
rp
or
at
io
n
,h
ol
d
re
gu
la
r
m
ee
ti
n
gs
,o
r

el
ec
t
an
ad
vi
si
n
g
or
d
ir
ec
ti
n
g
bo
ar
d
.T
h
is
si
m
p
li
ci
ty
is
al
so
re
fl
ec
te
d

in
ta
x
tr
ea
tm
en
t,
as
a
so
le
p
ro
p
ri
e
to
r
fi
le
s
ta
xe
s
as
p
er
so
n
al

in
co
m
e.
So
le
p
ro
p
ri
et
or
s
al
so
h
av
e
co
n
tr
ol
ov
er
th
e
as
p
ec
ts
of
th
ei
r

bu
si
n
es
s
w
it
h
ou
t
th
e
in
vo
lv
em
en
t
of
el
ec
te
d
bo
ar
d
m
em
be
rs
.

O
n
th
e
fl
ip
si
d
e,
th
e
so
le
p
ro
p
ri
et
or
sh
ip
h
as
on
e
m
ai
n
d
is
ad
va
n
ta
ge
:

th
er
e
is
n
o
se
p
ar
at
io
n
be
tw
ee
n
th
e
en
tr
ep
re
n
eu
r
an
d
th
e
bu
si
n
es
s.

W
it
h
so
le
p
ro
p
ri
et
or
sh
ip
s,
li
ke
so
m
e
fo
rm
s
of
p
ar
tn
er
sh
ip
,o
w
n
er
s

ca
n
be
p
er
so
n
al
ly
li
ab
le
fo
r
bu
si
n
es
s
lo
ss
es
,m
ea
n
in
g
th
ei
r
p
er
so
n
al

as
se
ts
ar
e
n
ot
p
ro
te
ct
ed
ag
ai
n
st
th
e
cl
ai
m
s
of
cr
ed
it
or
s.
T
h
e
so
le

p
ro
p
ri
et
or
sh
ip
is
n
ot
a
se
p
ar
at
e
en
ti
ty
fr
om
th
e
ow
n
er
/

en
tr
ep
re
n
eu
r,
u
n
li
ke
a
co
rp
or
at
io
n
.A
s
a
re
su
lt
,i
ft
h
e
p
ro
p
ri
et
or

d
ie
s,
th
e
bu
si
n
es
s
ce
as
es
to
ex
is
t.
B
ec
au
se
th
e
en
te
rp
ri
se
re
st
s

ex
cl
u
si
ve
ly
on
on
e
p
er
so
n
,i
t
of
te
n
h
as
d
if
fi
cu
lt
y
ra
is
in
g
lo
n
g-
te
rm

ca
p
it
al
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
bu
si
n
es
s-
or
g
a
n
iz
a
ti
on
-t
yp
es
/s
ol
e-

p
ro
p
ri
et
or
sh
ip
-p
ro
s-
a
n
d
-c
on
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

49

S
m
al
lb

us
in
es

se
s

(m
om

an
d
p
op

sh
op

s,
in

la
ym

an
‘s

te
rm

s)
su

ch
as

th
is

lo
ca

lm
ar
ke

t
ar
e

m
os

t
of
te
n

st
ru
ct
ur
ed

as
a
so

le
p
ro
p
rie

to
rs
hi
p
.

Fi
g
ur
e
1.
19

S
ol
e

P
ro
p
rie
to
rs
hi
p

P
ar
tn
er
sh

ip
😛

ro
s
an

d
C
on

s
Th

e
p
ar
tn
er
sh

ip
st
ru
ct
ur
e
ha

s
th
e
b
en

e
t
of

si
m
p
lic
ity

an
d
co

nt
ro
lb

ut
th
e
d
ra
w
b
ac

k
of

p
er
so

na
ll
ia
b
ili
ty

fo
r
th
e

p
ar
tn
er
sh

ip
’s
ac

tiv
iti
es

.

K
E
Y
P
O
IN
TS


T
h
e
p
ar
tn
er
sh
ip
is
a
ty
p
e
of
bu
si
n
es
s
st
ru
ct
u
re
op
en
to

bu
si
n
es
se
s
ru
n
an
d
ow
n
ed
by
tw
o
or
m
or
e
en
tr
ep
re
n
eu
rs
.


A
la
rg
e
ad
va
n
ta
ge
of
th
e
p
ar
tn
er
sh
ip
st
ru
ct
u
re
is
it
s
ea
se
,i
n

te
rm
s
of
fi
li
n
g
an
d
ta
x
tr
ea
tm
en
t.
A
ge
n
er
al
p
ar
tn
er
sh
ip
ca
n

be
st
ar
te
d
w
it
h
n
o
sp
ec
ia
lf
or
m
al
it
ie
s.
T
h
e
p
ar
tn
er
s
ar
e
ta
xe
d

in
d
iv
id
u
al
ly
on
th
ei
r
sh
ar
e
of
th
e
p
ar
tn
er
sh
ip
‘s
p
ro
fi
ts
.


T
h
e
st
ru
ct
u
re
’s
m
ai
n
d
is
ad
va
n
ta
ge
is
th
at
p
ar
tn
er
sh
ip
ow
n
er
s

ca
n
be
p
er
so
n
al
ly
li
ab
le
fo
r
bu
si
n
es
s
lo
ss
es
.T
h
e
p
ar
tn
er
sh
ip

is
n
ot
a
se
p
ar
at
e
en
ti
ty
fr
om
th
e
ow
n
er
s/
en
tr
ep
re
n
eu
rs
,

u
n
li
ke
a
co
rp
or
at
io
n
.


T
yp
es
of
p
ar
tn
er
sh
ip
be
yo
n
d
th
e
ge
n
er
al
p
ar
tn
er
sh
ip
h
av
e

d
ev
el
op
ed
to
m
it
ig
at
e
so
m
e
of
th
e
d
is
ad
va
n
ta
ge
s
of
th
e

st
ru
ct
u
re
.L
im
it
ed
p
ar
tn
er
sh
ip
s
an
d
li
m
it
ed
li
ab
il
it
y

p
ar
tn
er
sh
ip
s
ar
e
tw
o
ex
am
p
le
s.

B
u
si
n
e
ss
O
rg
a
n
iz
a
ti
o
n
T
yp
e
s

B
u
si
n
es
s
or
ga
n
iz
at
io
n
s
ca
n
be
st
ru
ct
u
re
d
in
va
ri
ou
s
w
ay
s,
in
te
rm
s

of
th
ei
r
st
ru
ct
u
re
s
as
le
ga
le
n
ti
ti
es
an
d
al
so
in
te
rm
s
of
th
e
in
te
rn
al

st
ru
ct
u
re
an
d
m
an
ag
em
en
t
p
ro
ce
ss
es
.T
h
e
p
ar
tn
er
sh
ip
is
on
e
ty
p
e

of
bu
si
n
es
s
st
ru
ct
u
re
.T
h
e
p
ar
tn
er
sh
ip
is
th
e
n
ex
t
si
m
p
le
st
bu
si
n
es
s

st
ru
ct
u
re
af
te
r
th
e
so
le
p
ro
p
ri
et
or
sh
ip
.B
ec
au
se
so
le
p
ro
p
ri
et
or
s
ca
n

on
ly
h
av
e
on
e
ow
n
er
,t
h
e
p
ar
tn
er
sh
ip
is
th
e
si
m
p
le
st
st
ru
ct
u
re
op
en

to
co
ll
ab
or
at
iv
e
ow
n
er
sh
ip
(F
ig
u
re
1.
20
).

P
a
rt
n
e
rs
h
ip
:
P
ro
s
a
n
d
C
o
n
s

A
la
rg
e
ad
va
n
ta
ge
of
th
e
p
ar
tn
er
sh
ip
st
ru
ct
u
re
is
it
s
ea
se
in
fi
li
n
g

an
d
ta
x
tr
ea
tm
en
t.
W
it
h
a
ge
n
er
al
p
ar
tn
er
sh
ip
,t
w
o
or
m
or
e
p
eo
p
le

ca
n
st
ar
t
a
bu
si
n
es
s
as
co
-o
w
n
er
s
w
it
h
n
o
sp
ec
ia
lf
or
m
al
it
ie
s,

d
ir
ec
tl
y
co
n
tr
ol
li
n
g
th
e
p
ar
tn
er
sh
ip
an
d
m
ak
in
g
bi
n
d
in
g
d
ec
is
io
n
s

w
it
h
a
si
m
p
le
m
aj
or
it
y
vo
te
.T
h
e
p
ar
tn
er
s
ar
e
ta
xe
d
in
d
iv
id
u
al
ly
on

th
ei
r
sh
ar
e
of
th
e
p
ar
tn
er
sh
ip
‘s
p
ro
fi
ts
.B
y
d
e
fa
u
lt
,p
ro
fi
ts
ar
e

50

Th
e
p
ar
tn
er
sh

ip
is

th
e
si
m
p
le
st

st
ru
ct
ur
e
op

en
to

co
lla
b
or
at
iv
e

ow
ne

rs
hi
p
.

Fi
g
ur
e
1.
20

P
ar
tn
er
sh
ip

sh
ar
ed
eq
u
al
ly
am
on
g
th
e
p
ar
tn
er
s.
H
ow
ev
er
,a
p
ar
tn
er
sh
ip

ag
re
em
en
t
w
il
la
lm
os
t
in
va
ri
ab
ly
ex
p
re
ss
ly
p
ro
vi
d
e
fo
r
th
e
m
an
n
er

in
w
h
ic
h
p
ro
fi
ts
an
d
lo
ss
es
ar
e
to
be
sh
ar
ed
.

T
h
e
st
ru
ct
u
re
’s
m
ai
n
d
is
ad
va
n
ta
ge
is
si
m
il
ar
to
th
e
so
le

p
ro
p
ri
et
or
sh
ip
.O
w
n
er
s
ca
n
be
p
er
so
n
al
ly
li
ab
le
fo
r
bu
si
n
es
s
lo
ss
es

in
so
m
e
fo
rm
s
of
p
ar
tn
er
sh
ip
,m
ea
n
in
g
th
ei
r
p
er
so
n
al
as
se
ts
ar
e
n
ot

p
ro
te
ct
ed
ag
ai
n
st
th
e
cl
ai
m
s
of
cr
ed
it
or
s.
T
h
e
p
ar
tn
er
sh
ip
is
n
ot
a

se
p
ar
at
e
en
ti
ty
fr
om
th
e
ow
n
er
s/
en
tr
ep
re
n
eu
rs
,u
n
li
ke
a

co
rp
or
at
io
n
.T
h
is
m
ea
n
s
th
at
th
e
p
ar
tn
er
sh
ip
st
ru
ct
u
re
is
on
ly
as

go
od
as
th
e
p
ar
tn
er
sh
ip
at
th
e
re
la
ti
on
al
le
ve
l.
If
th
e
m
u
tu
al
co
n
se
n
t

to
fo
rm
a
p
ar
tn
er
sh
ip
br
ea
ks
d
ow
n
,t
h
e
p
ar
tn
er
sh
ip
br
ea
ks
d
ow
n
as

w
el
l;
p
ar
tn
er
sh
ip
s
ar
e
co
n
si
d
er
ed
to
be
an
ag
gr
eg
at
e
of
th
ei
r

p
ar
tn
er
s
ra
th
er
th
an
a
se
p
ar
at
e
en
ti
ty
.

T
h
er
e
h
as
be
en
d
eb
at
e
in
m
os
t
st
at
es
as
to
w
h
et
h
er
a
p
ar
tn
er
sh
ip

sh
ou
ld
re
m
ai
n
ag
gr
eg
at
e
or
be
al
lo
w
ed
to
be
co
m
e
a
bu
si
n
es
s
en
ti
ty

w
it
h
a
se
p
ar
at
e
co
n
ti
n
u
in
g
le
ga
lp
er
so
n
al
it
y.
T
yp
es
of
p
ar
tn
er
sh
ip

be
yo
n
d
th
e
ge
n
er
al
p
ar
tn
er
sh
ip
h
av
e
d
ev
el
op
ed
to
m
it
ig
at
e
so
m
e
of

th
e
d
is
ad
va
n
ta
ge
s
of
th
e
st
ru
ct
u
re
.L
im
it
ed
p
ar
tn
er
sh
ip
s
al
lo
w

li
m
it
ed
li
ab
il
it
y
fo
r
so
m
e
p
ar
tn
er
s
w
h
o
h
av
e
n
o
m
an
ag
em
en
t

au
th
or
it
y,
an
d
in
so
m
e
ca
se
s
(d
ep
en
d
in
g
on
th
e
ju
ri
sd
ic
ti
on
)
li
m
it
ed

li
ab
il
it
y
p
ar
tn
er
sh
ip
s
p
ro
vi
d
e
fo
r
li
m
it
ed
li
ab
il
it
y
fo
r
al
lp
ar
tn
er
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
bu
si
n
es
s-
or
g
a
n
iz
a
ti
on
-t
yp
es
/

p
a
rt
n
er
sh
ip
-p
ro
s-
a
n
d
-c
on
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

51

C
or
p
or
at
io
n:

P
ro
s
an

d
C
on

s
Th

e
co

rp
or
at
e
st
ru
ct
ur
e
is

le
ss

si
m
p
le

to
fo
un

d
an

d
m
ai
nt
ai
n
b
ut

ha
s
th
e
ad

va
nt
ag

es
of

lim
ite

d
lia
b
ili
ty

an
d

p
er
p
et
ua

ll
ife

.

K
E
Y
P
O
IN
TS


C
om
p
ar
ed
to
so
le
p
ro
p
ri
et
or
sh
ip
s
an
d
p
ar
tn
er
sh
ip
s,
th
e

co
rp
or
at
io
n
is
m
or
e
co
m
p
li
ca
te
d
to
fo
u
n
d
an
d
m
ai
n
ta
in
,o
n
e

of
it
s
d
is
ad
va
n
ta
ge
s.
T
h
e
in
co
rp
or
at
or
m
u
st
fi
le
ar
ti
cl
es
of

in
co
rp
or
at
io
n
as
w
el
la
s
h
ol
d
an
or
ga
n
iz
at
io
n
al
m
ee
ti
n
g
to

el
ec
t
a
bo
ar
d
of
d
ir
ec
to
rs
.


T
h
e
st
ru
ct
u
re
al
so
ge
n
er
al
ly
re
qu
ir
es
th
e
m
ai
n
te
n
an
ce
of
at

le
as
t
an
n
u
al
re
p
or
ti
n
g,
in
cl
u
d
in
g
an
n
u
al
fi
n
an
ci
al
st
at
em
en
ts

an
d
ot
h
er
d
at
a.


O
n
e
of
th
e
m
os
t
fa
vo
ra
bl
e
ad
va
n
ta
ge
s
of
th
e
co
rp
or
at
e

st
ru
ct
u
re
is
th
e
p
ro
te
ct
io
n
of
p
er
so
n
al
as
se
ts
of
st
oc
kh
ol
d
er
s,

d
ir
ec
to
rs
,a
n
d
of
fi
ce
rs
.T
h
ey
ar
e
li
m
it
ed
in
li
ab
il
it
y
to
th
e

am
ou
n
t
th
ey
h
av
e
in
ve
st
ed
in
th
e
co
rp
or
at
io
n
.


A
ls
o,
be
ca
u
se
th
e
co
rp
or
at
io
n
is
an
en
ti
ty
se
p
ar
at
e
fr
om
it
s

ow
n
er
s,
ow
n
er
sh
ip
is
ea
si
ly
tr
an
sf
er
ab
le
.S
im
il
ar
ly
,t
h
e

co
rp
or
at
io
n
d
oe
s
n
ot
ce
as
e
to
ex
is
t
w
it
h
th
e
d
ea
th
of

sh
ar
eh
ol
d
er
s,
d
ir
ec
to
rs
,o
r
of
fi
ce
rs
of
th
e
co
rp
or
at
io
n
.

B
u
si
n
es
s
or
ga
n
iz
at
io
n
s
ca
n
be

st
ru
ct
u
re
d
in
va
ri
ou
s
w
ay
s,
in

te
rm
s
of
th
ei
r
st
ru
ct
u
re
s
as

le
ga
le
n
ti
ti
es
an
d
al
so
in
te
rm
s

of
th
e
in
te
rn
al
st
ru
ct
u
re
an
d

m
an
ag
em
en
t
p
ro
ce
ss
es
.T
h
e

co
rp
or
at
io
n
is
on
e
ty
p
e
of

bu
si
n
es
s
st
ru
ct
u
re
.(
F
ig
u
re
1.
21
)

C
o
rp
o
ra
ti
o
n
:
C
o
n
s

C
om
p
ar
ed
to
ot
h
er
bu
si
n
es
s
st
ru
ct
u
re
s,
su
ch
as
so
le
p
ro
p
ri
et
or
sh
ip
s

an
d
p
ar
tn
er
sh
ip
s,
th
e
co
rp
or
at
io
n
is
le
ss
si
m
p
le
to
fo
u
n
d
an
d

m
ai
n
ta
in
,o
n
e
of
it
s
d
is
ad
va
n
ta
ge
s.
T
h
e
in
co
rp
or
at
or
m
u
st
fi
le

ar
ti
cl
es
of
in
co
rp
or
at
io
n
w
it
h
th
e
se
cr
et
ar
y
of
st
at
e’
s
of
fi
ce
in
th
e

st
at
e
in
w
h
ic
h
it
w
il
lb
e
in
co
rp
or
at
ed
,a
s
w
el
la
s
h
ol
d
an

or
ga
n
iz
at
io
n
al
m
ee
ti
n
g
to
el
ec
t
a
bo
ar
d
of
d
ir
ec
to
rs
.T
h
e
st
ru
ct
u
re

al
so
ge
n
er
al
ly
re
qu
ir
es
th
e
m
ai
n
te
n
an
ce
of
at
le
as
t
an
n
u
al
re
p
or
ti
n
g.

In
m
an
y
ju
ri
sd
ic
ti
on
s
co
rp
or
at
io
n
s,
w
h
os
e
sh
ar
eh
ol
d
er
s
be
n
ef
it

fr
om
li
m
it
ed
li
ab
il
it
y,
ar
e
re
qu
ir
ed
to
p
u
bl
is
h
an
n
u
al
fi
n
an
ci
al

st
at
em
en
ts
an
d
ot
h
er
d
at
a,
so
th
at
cr
ed
it
or
s
w
h
o
d
o
bu
si
n
es
s
w
it
h

th
e
co
rp
or
at
io
n
ar
e
ab
le
to
as
se
ss
th
e
cr
ed
it
w
or
th
in
es
s
of
th
e

co
rp
or
at
io
n
an
d
ca
n
n
ot
en
fo
rc
e
cl
ai
m
s
ag
ai
n
st
sh
ar
eh
ol
d
er
s.

Sh
ar
eh
ol
d
er
s,
th
er
ef
or
e,
ex
p
er
ie
n
ce
so
m
e
lo
ss
of
p
ri
va
cy
in
re
tu
rn

fo
r
li
m
it
ed
li
ab
il
it
y.

52

O
ne

of
th
e
w
or
ld
‘s

la
rg
es

t
co

m
p
an

ie
s
b
y

re
ve

nu
e,

it
is
st
ru
ct
ur
ed

as
a
co

rp
or
at
io
n.

Fi
g
ur
e
1.
21

E
xx
on

M
ob

il
C
or
p
or
at
io
n

C
o
rp
o
ra
ti
o
n
:
P
ro
s

O
n
e
of
th
e
m
os
t
fa
vo
ra
bl
e
ad
va
n
ta
ge
s
of
th
e
co
rp
or
at
e
st
ru
ct
u
re
is

th
e
p
ro
te
ct
io
n
of
p
er
so
n
al
as
se
ts
:s
to
ck
h
o
ld
e
rs
,d
ir
ec
to
rs
,a
n
d

of
fi
ce
rs
of
a
co
rp
or
at
io
n
ar
e
ty
p
ic
al
ly
n
ot
li
ab
le
fo
r
th
e
co
m
p
an
y’
s

d
eb
ts
an
d
ob
li
ga
ti
on
s.
T
h
ey
ar
e
li
m
it
ed
in
li
ab
il
it
y
to
th
e
am
ou
n
t

th
ey
h
av
e
in
ve
st
ed
in
th
e
co
rp
or
at
io
n
.T
h
is
li
m
it
ed
li
ab
il
it
y
al
so

m
ak
es
fi
n
an
ci
n
g
m
or
e
at
tr
ac
ti
ve
fr
om
a
ri
sk
p
er
sp
ec
ti
ve
.A
ls
o,

be
ca
u
se
th
e
co
rp
or
at
io
n
is
an
en
ti
ty
se
p
ar
at
e
fr
om
it
s
ow
n
er
s,

ow
n
er
sh
ip
is
ea
si
ly
tr
an
sf
er
ab
le
.S
im
il
ar
ly
,t
h
e
co
rp
or
at
io
n
d
oe
s
n
ot

ce
as
e
to
ex
is
t
w
it
h
th
e
d
ea
th
of
sh
ar
eh
ol
d
er
s,
d
ir
ec
to
rs
,o
r
of
fi
ce
rs
of

th
e
co
rp
or
at
io
n
.

A
n
ot
h
er
be
n
ef
it
of
th
e
co
rp
or
at
e
st
ru
ct
u
re
is
th
at
,i
n
th
e
U
n
it
ed

St
at
es
,c
or
p
or
at
io
n
s
ar
e
ge
n
er
al
ly
ta
xe
d
at
a
lo
w
er
ra
te
th
an
ar
e

in
d
iv
id
u
al
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
bu
si
n
es
s-
or
g
a
n
iz
a
ti
on
-t
yp
es
/

co
rp
or
a
ti
on
-p
ro
s-
a
n
d
-c
on
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

53

W
ha

t
is

C
or
p
or
at
e
G
ov

er
na

nc
e

S
ar
b
an

es
-O

xl
ey

Se
ct
io
n
6

C
or
p
or
at
e
G
ov

er
na

nc
e

54

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
co

rp
or
at
e-
go

ve
rn
an

ce
/

W
ha

t
is
C
or
p
or
at
e

G
ov

er
na

nc
e

C
or
p
or
at
e
go

ve
rn
an

ce
is

th
e
sy

st
em

b
y
w
hi
ch

co
m
p
an

ie
s
ar
e
d
ire

ct
ed

an
d
co

nt
ro
lle
d
.

K
E
Y
P
O
IN
TS


In
co
n
te
m
p
or
ar
y
bu
si
n
es
s
co
rp
or
at
io
n
s,
th
e
m
ai
n
ex
te
rn
al

st
ak
eh
ol
d
er
gr
ou
p
s
ar
e
sh
ar
eh
ol
d
er
s,
d
eb
t
h
ol
d
er
s,
tr
ad
e

cr
ed
it
or
s,
su
p
p
li
er
s,
cu
st
om
er
s,
an
d
co
m
m
u
n
it
ie
s
af
fe
ct
ed
by

th
e
co
rp
or
at
io
n
‘s
ac
ti
vi
ti
es
.I
n
te
rn
al
st
ak
eh
ol
d
er
s
ar
e
th
e

bo
ar
d
of
d
ir
ec
to
rs
,e
xe
cu
ti
ve
s,
an
d
ot
h
er
em
p
lo
ye
es
.


W
ay
s
of
m
it
ig
at
in
g
or
p
re
ve
n
ti
n
g
th
es
e
co
n
fl
ic
ts
of
in
te
re
st
s

in
cl
u
d
e
th
e
p
ro
ce
ss
es
,c
u
st
om
s,
p
ol
ic
ie
s,
la
w
s,
an
d

in
st
it
u
ti
on
s
w
h
ic
h
h
av
e
im
p
ac
t
on
th
e
w
ay
a
co
m
p
an
y
is

co
n
tr
ol
le
d
.


A
re
la
te
d
bu
t
se
p
ar
at
e
th
re
ad
of
d
is
cu
ss
io
n
fo
cu
se
s
on
th
e

im
p
ac
t
of
a
co
rp
or
at
e
go
ve
rn
an
ce
sy
st
em
on
ec
on
om
ic

ef
fi
ci
en
cy
,w
it
h
a
st
ro
n
g
em
p
h
as
is
on
sh
ar
eh
ol
d
er
s’
w
el
fa
re
.


P
ri
n
ci
p
le
s
of
co
rp
or
at
e
go
ve
rn
an
ce
in
cl
u
d
e
ri
gh
ts
an
d

eq
u
it
ab
le
tr
ea
tm
en
t
of
sh
ar
eh
ol
d
er
s,
in
te
re
st
s
of
ot
h
er

st
ak
eh
ol
d
er
s,
ro
le
an
d
re
sp
on
si
bi
li
ti
es
of
th
e
bo
ar
d
,i
n
te
gr
it
y

an
d
et
h
ic
al
be
h
av
io
r,
an
d
d
is
cl
os
u
re
an
d
tr
an
sp
ar
en
cy
.

W
h
a
t
is
C
o
rp
o
ra
te
G
o
ve
rn
a
n
ce
?

C
or
p
or
at
e
go
ve
rn
an
ce
is
th
e
sy
st
em
by
w
h
ic
h
co
m
p
an
ie
s
ar
e

d
ir
ec
te
d
an
d
co
n
tr
ol
le
d
.I
t
in
vo
lv
es
re
gu
la
to
ry
an
d
m
ar
ke
t

m
ec
h
an
is
m
s;
th
e
ro
le
s
an
d
re
la
ti
on
sh
ip
s
be
tw
ee
n
a
co
m
p
an
y’
s

m
an
ag
em
en
t,
it
s
bo
ar
d
,i
ts
sh
ar
eh
ol
d
er
s,
an
d
ot
h
er
st
ak
eh
ol
d
er
s;

an
d
th
e
go
al
s
fo
r
w
h
ic
h
th
e
co
rp
or
at
io
n
is
go
ve
rn
ed
.I
n

co
n
te
m
p
or
ar
y
bu
si
n
es
s
co
rp
or
at
io
n
s,
th
e
m
ai
n
ex
te
rn
al
st
ak
eh
ol
d
er

gr
ou
p
s
ar
e
sh
ar
eh
ol
d
er
s,
d
eb
t
h
ol
d
er
s,
tr
ad
e
cr
ed
it
or
s,
su
p
p
li
e
rs
,

cu
st
om
er
s,
an
d
co
m
m
u
n
it
ie
s
af
fe
ct
ed
by
th
e
co
rp
or
at
io
n
‘s
ac
ti
vi
ti
es
.

In
te
rn
al
st
ak
eh
ol
d
er
s
ar
e
th
e
bo
ar
d
of
d
ir
ec
to
rs
,e
xe
cu
ti
ve
s,
an
d

ot
h
er
em
p
lo
ye
es
(F
ig
u
re
1.
22
).

M
u
ch
of
th
e
co
n
te
m
p
or
ar
y
in
te
re
st
in
co
rp
or
at
e
go
ve
rn
an
ce
is

co
n
ce
rn
ed
w
it
h
m
it
ig
at
io
n
of
th
e
co
n
fl
ic
ts
of
in
te
re
st
s
be
tw
ee
n

55

C
or
p
or
at
e

go
ve

rn
an

ce
d
ea

ls
w
ith

th
e
co

n
ic
ts

of
in
te
re
st
s
in

a
co

m
p
an

y.

Fi
g
ur
e
1.
22

R
ed
es
ig
ni
ng

co
rp
or
at
e

go
ve
rn
an
ce

st
ak
eh
ol
d
er
s.
W
ay
s
of
m
it
ig
at
in
g
or
p
re
ve
n
ti
n
g
th
es
e
co
n
fl
ic
ts
of

in
te
re
st
s
in
cl
u
d
e
th
e
p
ro
ce
ss
es
,c
u
st
om
s,
p
ol
ic
ie
s,
la
w
s,
an
d

in
st
it
u
ti
on
s
w
h
ic
h
h
av
e
im
p
ac
t
on
th
e
w
ay
a
co
m
p
an
y
is
co
n
tr
ol
le
d
.

A
n
im
p
or
ta
n
t
th
em
e
of
co
rp
or
at
e
go
ve
rn
an
ce
is
th
e
n
at
u
re
an
d

ex
te
n
t
of
ac
co
u
n
ta
bi
li
ty
of
p
eo
p
le
in
th
e
bu
si
n
es
s.

A
re
la
te
d
bu
t
se
p
ar
at
e
th
re
ad
of
d
is
cu
ss
io
n
fo
cu
se
s
on
th
e
im
p
ac
t
of

a
co
rp
or
at
e
go
ve
rn
an
ce
sy
st
em
on
ec
on
om
ic
ef
fi
ci
en
cy
,w
it
h
a

st
ro
n
g
em
p
h
as
is
on
sh
ar
eh
ol
d
er
s’
w
el
fa
re
.I
n
la
rg
e
fi
rm
s
w
h
er
e

th
er
e
is
a
se
p
ar
at
io
n
of
ow
n
er
sh
ip
an
d
m
an
ag
em
en
t
an
d
n
o

co
n
tr
ol
li
n
g
sh
ar
eh
ol
d
er
,t
h
e
p
ri
n
ci
p
al

ag
en
t
is
su
e
ar
is
es
be
tw
ee
n

u
p
p
er
-m
an
ag
em
en
t
(t
h
e
“a
ge
n
t”
)
w
h
ic
h
m
ay
h
av
e
ve
ry
d
if
fe
re
n
t

in
te
re
st
s,
an
d
by
d
ef
in
it
io
n
co
n
si
d
er
ab
ly
m
or
e
in
fo
rm
at
io
n
,t
h
an

sh
ar
eh
ol
d
er
s
(t
h
e
“p
ri
n
ci
p
al
s”
).
R
at
h
er
th
an
ov
er
se
ei
n
g

m
an
ag
em
en
t
on
be
h
al
fo
fs
h
ar
eh
ol
d
er
s,
th
e
bo
ar
d
of
d
ir
ec
to
rs
m
ay

be
co
m
e
in
su
la
te
d
fr
om
sh
ar
eh
ol
d
er
s
an
d
be
h
ol
d
en
to
m
an
ag
em
en
t.

T
h
is
as
p
ec
t
is
p
ar
ti
cu
la
rl
y
p
re
se
n
t
in
co
n
te
m
p
or
ar
y
p
u
bl
ic
d
eb
at
es

an
d
d
ev
el
op
m
en
ts
in
re
gu
la
to
ry
p
ol
ic
y.

P
ri
n
ci
p
le
s
O
f
C
o
rp
o
ra
te
G
o
ve
rn
a
n
ce

C
on
te
m
p
or
ar
y
d
is
cu
ss
io
n
s
of
co
rp
or
at
e
go
ve
rn
an
ce
te
n
d
to
re
fe
r
to

p
ri
n
ci
p
le
s
ra
is
ed
in
th
re
e
d
oc
u
m
en
ts
re
le
as
ed
si
n
ce
19
90
:T
h
e

C
ad
bu
ry
R
ep
or
t
(U
K
,1
99
2)
,t
h
e
P
ri
n
ci
p
le
s
of
C
or
p
or
at
e
G
ov
er
n
an
ce

(O
E
C
D
,1
99
8
an
d
20
0
4)
,t
h
e
Sa
rb
an
es
-O
xl
ey
A
ct
of
20
0
2
(U
S,

20
0
2)
.T
h
e
C
ad
bu
ry
an
d
O
E
C
D
re
p
or
ts
p
re
se
n
t
ge
n
er
al
p
ri
n
ci
p
al
s

ar
ou
n
d
w
h
ic
h
bu
si
n
es
se
s
ar
e
ex
p
ec
te
d
to
op
er
at
e
to
as
su
re
p
ro
p
er

go
ve
rn
an
ce
.T
h
e
Sa
rb
an
es
-O
xl
ey
A
ct
,i
n
fo
rm
al
ly
re
fe
rr
ed
to
as

Sa
rb
ox
or
So
x,
is
an
at
te
m
p
t
by
th
e
fe
d
er
al
go
ve
rn
m
en
t
in
th
e

U
n
it
ed
St
at
es
to
le
gi
sl
at
e
se
ve
ra
lo
ft
h
e
p
ri
n
ci
p
le
s
re
co
m
m
en
d
ed
in

th
e
C
ad
bu
ry
an
d
O
E
C
D
re
p
or
ts
.

R
ig
h
ts
a
n
d
E
q
u
it
a
b
le
T
re
a
tm
e
n
t
O
f
S
h
a
re
h
o
ld
e
rs

O
rg
an
iz
at
io
n
s
sh
ou
ld
re
sp
ec
t
th
e
ri
gh
ts
of
sh
ar
eh
ol
d
er
s
an
d
h
el
p

sh
ar
eh
ol
d
er
s
to
ex
er
ci
se
th
os
e
ri
gh
ts
.T
h
ey
ca
n
h
el
p
sh
ar
eh
ol
d
er
s

ex
er
ci
se
th
ei
r
ri
gh
ts
by
op
en
ly
an
d
ef
fe
ct
iv
el
y
co
m
m
u
n
ic
at
in
g

in
fo
rm
at
io
n
an
d
by
en
co
u
ra
gi
n
g
sh
ar
eh
ol
d
er
s
to
p
ar
ti
ci
p
at
e
in

ge
n
er
al
m
ee
ti
n
gs
.

In
te
re
st
s
O
f
O
th
e
r
S
ta
k
e
h
o
ld
e
rs

O
rg
an
iz
at
io
n
s
sh
ou
ld
re
co
gn
iz
e
th
at
th
ey
h
av
e
le
ga
l,
co
n
tr
ac
tu
al
,

so
ci
al
,a
n
d
m
ar
ke
t
d
ri
ve
n
ob
li
ga
ti
on
s
to
n
on
-s
h
ar
eh
ol
d
er

st
ak
eh
ol
d
er
s,
su
ch
as
em
p
lo
ye
es
,i
n
ve
st
or
s,
cr
ed
it
or
s,
su
p
p
li
er
s,

lo
ca
lc
om
m
u
n
it
ie
s,
cu
st
om
er
s,
an
d
p
ol
ic
y
m
ak
er
s.

R
o
le
a
n
d
R
e
sp
o
n
si
b
il
it
ie
s
O
f
th
e
B
o
a
rd

T
h
e
bo
ar
d
n
ee
d
s
su
ff
ic
ie
n
t
re
le
va
n
t
sk
il
ls
an
d
u
n
d
er
st
an
d
in
g
to

re
vi
ew
an
d
ch
al
le
n
ge
m
an
ag
em
en
t
p
er
fo
rm
an
ce
.I
t
al
so
n
ee
d
s

ad
eq
u
at
e
si
ze
an
d
ap
p
ro
p
ri
at
e
le
ve
ls
of
in
d
ep
en
d
en
ce
an
d

co
m
m
it
m
en
t.

56

In
te
g
ri
ty
a
n
d
E
th
ic
a
l
B
e
h
a
vi
o
r

In
te
gr
it
y
sh
ou
ld
be
a
fu
n
d
am
en
ta
lr
eq
u
ir
em
en
t
in
ch
oo
si
n
g

co
rp
or
at
e
of
fi
ce
rs
an
d
bo
ar
d
m
em
be
rs
.O
rg
an
iz
at
io
n
s
sh
ou
ld

d
ev
el
op
a
co
d
e
of
co
n
d
u
ct
fo
r
th
ei
r
d
ir
ec
to
rs
an
d
ex
ec
u
ti
ve
s
th
at

p
ro
m
ot
es
et
h
ic
al
an
d
re
sp
on
si
bl
e
d
ec
is
io
n
m
ak
in
g.

D
is
cl
o
su
re
a
n
d
T
ra
n
sp
a
re
n
cy

O
rg
an
iz
at
io
n
s
sh
ou
ld
cl
ar
if
y
an
d
m
ak
e
p
u
bl
ic
ly
kn
ow
n
th
e
ro
le
s
an
d

re
sp
on
si
bi
li
ti
es
of
bo
ar
d
an
d
m
an
ag
em
en
t
to
p
ro
vi
d
e
st
ak
eh
ol
d
er
s

w
it
h
a
le
ve
lo
fa
cc
ou
n
ta
bi
li
ty
.T
h
ey
sh
ou
ld
al
so
im
p
le
m
en
t

p
ro
ce
d
u
re
s
to
in
d
ep
en
d
en
tl
y
ve
ri
fy
an
d
sa
fe
gu
ar
d
th
e
in
te
gr
it
y
of

th
e
co
m
p
an
y’
s
fi
n
an
ci
al
re
p
or
ti
n
g.
D
is
cl
os
u
re
of
m
at
er
ia
lm
at
te
rs

co
n
ce
rn
in
g
th
e
or
ga
n
iz
at
io
n
sh
ou
ld
be
ti
m
el
y
an
d
ba
la
n
ce
d
to

en
su
re
th
at
al
li
n
ve
st
or
s
h
av
e
ac
ce
ss
to
cl
ea
r,
fa
ct
u
al
in
fo
rm
at
io
n
.

C
o
d
e
s
a
n
d
G
u
id
e
li
n
e
s

C
or
p
or
at
e
go
ve
rn
an
ce
p
ri
n
ci
p
le
s
an
d
co
d
es
h
av
e
be
en
d
ev
el
op
ed
in

d
if
fe
re
n
t
co
u
n
tr
ie
s
an
d
is
su
ed
fr
om
st
o
ck
e
x
ch
a
n
g
e
s,

co
rp
or
at
io
n
s,
in
st
it
u
ti
on
al
in
ve
st
or
s,
or
as
so
ci
at
io
n
s
(i
n
st
it
u
te
s)
of

d
ir
ec
to
rs
an
d
m
an
ag
er
s
w
it
h
th
e
su
p
p
or
t
of
go
ve
rn
m
en
ts
an
d

in
te
rn
at
io
n
al
or
ga
n
iz
at
io
n
s.
A
s
a
ru
le
,c
om
p
li
an
ce
w
it
h
th
es
e

go
ve
rn
an
ce
re
co
m
m
en
d
at
io
n
s
is
n
ot
m
an
d
at
ed
by
la
w
,a
lt
h
ou
gh
th
e

co
d
es
li
n
ke
d
to
st
oc
k
ex
ch
an
ge
li
st
in
g
re
qu
ir
em
en
ts
m
ay
h
av
e
a

co
er
ci
ve
ef
fe
ct
.

O
n
e
of
th
e
m
os
t
in
fl
u
en
ti
al
gu
id
el
in
es
h
as
be
en
th
e
O
E
C
D
P
ri
n
ci
p
le
s

of
C
or
p
or
at
e
G
ov
er
n
an
ce

p
u
bl
is
h
ed
in
19
99
an
d
re
vi
se
d
in
20
0
4.

T
h
e
O
E
C
D
gu
id
el
in
es
ar
e
of
te
n
re
fe
re
n
ce
d
by
co
u
n
tr
ie
s
d
ev
el
op
in
g

lo
ca
lc
od
es
or
gu
id
el
in
es
.B
u
il
d
in
g
on
th
e
w
or
k
of
th
e
O
E
C
D
,o
th
er

in
te
rn
at
io
n
al
or
ga
n
iz
at
io
n
s,
p
ri
va
te
se
ct
or
as
so
ci
at
io
n
s,
an
d
m
or
e

th
an
20
n
at
io
n
al
co
rp
or
at
e
go
ve
rn
an
ce
co
d
es
fo
rm
ed
th
e
U
n
it
ed

N
at
io
n
s
In
te
rg
ov
er
n
m
en
ta
lW
or
ki
n
g
G
ro
u
p
of
E
xp
er
ts
on

In
te
rn
at
io
n
al
St
an
d
ar
d
s
of
A
cc
ou
n
ti
n
g
an
d
R
ep
or
ti
n
g
(I
SA
R
)
to

p
ro
d
u
ce
th
ei
r
G
u
id
an
ce
on
G
oo
d
P
ra
ct
ic
es
in
C
or
p
or
at
e
G
ov
er
n
an
ce

D
is
cl
os
u
re
.T
h
is
in
te
rn
at
io
n
al
ly
ag
re
ed
b
e
n
ch
m
a
rk
co
n
si
st
s
of

m
or
e
th
an
fi
ft
y
d
is
ti
n
ct
d
is
cl
os
u
re
it
em
s
ac
ro
ss
fi
ve
br
oa
d

ca
te
go
ri
es
:

1.
A
u
d
it
in
g

2.
B
oa
rd
an
d
m
an
ag
em
en
t
st
ru
ct
u
re
an
d
p
ro
ce
ss

3.
C
or
p
or
at
e
re
sp
on
si
bi
li
ty
an
d
co
m
p
li
an
ce

4.
F
in
an
ci
al
tr
an
sp
ar
en
cy
an
d
in
fo
rm
at
io
n
d
is
cl
os
u
re

5.
O
w
n
er
sh
ip
st
ru
ct
u
re
an
d
ex
er
ci
se
of
co
n
tr
ol
ri
gh
ts

M
os
t
co
d
es
ar
e
la
rg
el
y
vo
lu
n
ta
ry
.A
n
is
su
e
ra
is
ed
in
th
e
U
.S
.s
in
ce

th
e
20
0
5
D
is
n
ey
d
ec
is
io
n
is
th
e
d
eg
re
e
to
w
h
ic
h
co
m
p
an
ie
s
m
an
ag
e

th
ei
r
go
ve
rn
an
ce
re
sp
on
si
bi
li
ti
es
.I
n
ot
h
er
w
or
d
s,
d
o
th
ey
m
er
el
y
tr
y

57

to
su
p
er
se
d
e
th
e
le
ga
lt
h
re
sh
ol
d
?
O
r
sh
ou
ld
th
ey
cr
ea
te
go
ve
rn
an
ce

gu
id
el
in
es
th
at
as
ce
n
d
to
th
e
le
ve
lo
fb
es
t
p
ra
ct
ic
e?

E
X
A
M
P
LE

F
or
ex
am
p
le
,c
om
p
an
ie
s
qu
ot
ed
on
th
e
L
on
d
on
,T
or
on
to
,a
n
d

A
u
st
ra
li
an
St
oc
k
E
xc
h
an
ge
s
fo
rm
al
ly
n
ee
d
n
ot
fo
ll
ow
th
e

re
co
m
m
en
d
at
io
n
s
of
th
ei
r
re
sp
ec
ti
ve
co
d
es
.H
ow
ev
er
,t
h
ey

m
u
st
d
is
cl
os
e
w
h
et
h
er
th
ey
fo
ll
ow
th
e
re
co
m
m
en
d
at
io
n
s
in

th
os
e
d
oc
u
m
en
ts
an
d
,w
h
er
e
n
ot
,t
h
ey
sh
ou
ld
p
ro
vi
d
e

ex
p
la
n
at
io
n
s
co
n
ce
rn
in
g
d
iv
er
ge
n
t
p
ra
ct
ic
es
.S
u
ch
d
is
cl
os
u
re

re
qu
ir
em
en
ts
ex
er
t
a
si
gn
if
ic
an
t
p
re
ss
u
re
on
li
st
ed
co
m
p
an
ie
s

fo
r
co
m
p
li
an
ce
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
co
rp
or
a
te
-g
ov
er
n
a
n
ce
/w
ha
t-
is

co
rp
or
a
te
-g
ov
er
n
a
n
ce
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

S
ar
b
an

es
-O

xl
ey

Th
e
S
ar
b
an

es
–O

xl
ey

A
ct

is
a
U
S
fe
d
er
al

la
w

en
ha

nc
in
g

st
an

d
ar
d
s
fo
r
al
lU

S
p
ub

lic
co

m
p
an

y
b
oa

rd
s,

m
an

ag
em

en
t
an

d
p
ub

lic
ac

co
un

tin
g
r
m
s.

K
E
Y
P
O
IN
TS


A
s
a
re
su
lt
of
SO
X
,t
op
m
an
ag
em
en
t
m
u
st
n
ow
in
d
iv
id
u
al
ly

ce
rt
if
y
th
e
ac
cu
ra
cy
of
fi
n
an
ci
al
in
fo
rm
at
io
n
.


SO
X
in
cr
ea
se
d
th
e
in
d
ep
en
d
en
ce
of
ou
ts
id
e
au
d
it
or
s
w
h
o

re
vi
ew
th
e
ac
cu
ra
cy
of
co
rp
or
at
e
fi
n
an
ci
al
st
at
em
en
ts
,a
n
d

in
cr
ea
se
d
th
e
ov
er
si
gh
t
ro
le
of
bo
ar
d
s
of
d
ir
ec
to
rs
.


SO
X
w
as
en
ac
te
d
as
a
re
ac
ti
on
to
a
n
u
m
be
r
of
m
aj
or

co
rp
or
at
e
an
d
ac
co
u
n
ti
n
g
sc
an
d
al
s.


T
h
e
Sa
rb
an
es

O
xl
ey
A
ct
in
cl
u
d
es
A
u
d
it
or
In
d
ep
en
d
en
ce
,

C
or
p
or
at
e
R
es
p
on
si
bi
li
ty
,E
n
h
an
ce
d
F
in
an
ci
al
D
is
cl
os
u
re
s,

A
n
al
ys
t
C
on
fl
ic
ts
of
In
te
re
st
,C
om
m
is
si
on
R
es
ou
rc
es
an
d

A
u
th
or
it
y,
C
or
p
or
at
e
an
d
C
ri
m
in
al
F
ra
u
d
A
cc
ou
n
ta
bi
li
ty
,

C
or
p
or
at
e
T
ax
R
et
u
rn
s,
an
d
C
or
p
or
at
e
F
ra
u
d
A
cc
ou
n
ta
bi
li
ty
.

T
h
e
S
a
rb
a
n
e
s–
O
x
le
y
A
ct

T
h
e
Sa
rb
an
es

O
xl
ey
A
ct
of
20
0
2
is
a
U
n
it
ed
St
at
es
fe
d
er
al
la
w
th
at

se
t
n
ew
or
en
h
an
ce
d
st
an
d
ar
d
s
fo
r
al
lU
.S
.p
u
bl
ic
co
m
p
an
y
bo
ar
d
s,

m
an
ag
em
en
t
an
d
p
u
bl
ic
ac
co
u
n
ti
n
g
fi
rm
s.
T
h
e
ac
t
is
al
so
kn
ow
n
as

th
e
“P
u
bl
ic
C
om
p
an
y
A
cc
ou
n
ti
n
g
R
ef
or
m
an
d
In
ve
st
or
P
ro
te
ct
io
n

58

A
ct

(i
n
th
e
Se
n
at
e)
an
d
“C
or
p
or
at
e
an
d
A
u
d
it
in
g
A
cc
ou
n
ta
bi
li
ty

an
d
R
es
p
on
si
bi
li
ty
A
ct

(i
n
th
e
H
ou
se
).
It
‘s
m
or
e
co
m
m
on
ly
ca
ll
ed

Sa
rb
an
es

O
xl
ey
,S
ar
bo
x
or
SO
X
;i
t
is
n
am
ed
af
te
r
sp
on
so
rs
U
.S
.

Se
n
at
or
P
au
lS
ar
ba
n
es
(D
-M
D
)
an
d
U
.S
.R
ep
re
se
n
ta
ti
ve
M
ic
h
ae
lG
.

O
xl
ey
(R
-O
H
).
A
s
a
re
su
lt
of
SO
X
,t
op
m
an
ag
em
en
t
m
u
st
n
ow

in
d
iv
id
u
al
ly
ce
rt
if
y
th
e
ac
cu
ra
cy
of
fi
n
an
ci
al
in
fo
rm
at
io
n
.I
n

ad
d
it
io
n
,p
en
al
ti
es
fo
r
fr
au
d
u
le
n
t
fi
n
an
ci
al
ac
ti
vi
ty
ar
e
m
u
ch
m
or
e

se
ve
re
.A
ls
o,
SO
X
in
cr
ea
se
d
th
e
ov
er
si
gh
t
ro
le
of
b
o
a
rd
s
o
f

d
ir
e
ct
o
rs
w
h
il
e
al
so
in
cr
ea
si
n
g
th
e
in
d
ep
en
d
en
ce
of
ou
ts
id
e

au
d
it
or
s
w
h
o
re
vi
ew
th
e
ac
cu
ra
cy
of
co
rp
or
at
e
fi
n
an
ci
al
st
at
em
en
ts
.

(F
ig
u
re
1.
23
)

T
h
e
bi
ll
w
as
en
ac
te
d
as
a
re
ac
ti
on
to
m
aj
or
co
rp
or
at
e
an
d

ac
co
u
n
ti
n
g
sc
an
d
al
s
af
fe
ct
in
g
E
n
ro
n
,T
yc
o
In
te
rn
at
io
n
al
an
d
ot
h
er
s.

T
h
es
e
sc
an
d
al
s,
w
h
ic
h
co
st
in
ve
st
or
s
bi
ll
io
n
s
of
d
ol
la
rs
,s
h
oo
k

p
u
bl
ic
co
n
fi
d
en
ce
in
th
e
n
at
io
n
‘s
se
cu
ri
ti
es
m
ar
ke
ts
.

D
eb
at
e
co
n
ti
n
u
es
ov
er
th
e
p
er
ce
iv
ed
be
n
ef
it
s
an
d
co
st
s
of
SO
X
.

O
p
p
on
en
ts
of
th
e
bi
ll
cl
ai
m
it
h
as
re
d
u
ce
d
A
m
er
ic
a’
s
in
te
rn
at
io
n
al

co
m
p
et
it
iv
e
ed
ge
ag
ai
n
st
fo
re
ig
n
fi
n
an
ci
al
se
rv
ic
e
p
ro
vi
d
er
s,
sa
yi
n
g

it
in
tr
od
u
ce
d
an
ov
er
ly
co
m
p
le
x
re
gu
la
to
ry
en
vi
ro
n
m
en
t
in
to
U
.S
.

fi
n
an
ci
al
m
ar
ke
ts
.P
ro
p
on
en
ts
of
th
e
m
ea
su
re
sa
y
th
at
SO
X
h
as

im
p
ro
ve
d
th
e
co
n
fi
d
en
ce
of
fu
n
d
m
an
ag
er
s
an
d
ot
h
er
in
ve
st
or
s
w
it
h

re
ga
rd
to
th
e
ve
ra
ci
ty
of
co
rp
or
at
e
fi
n
an
ci
al
st
at
em
en
ts
.

P
u
b
li
c
C
o
m
p
a
n
y
A
cc
o
u
n
ti
n
g
O
ve
rs
ig
h
t
B
o
a
rd
(P
C
A
O
B
)

T
it
le
I
co
n
si
st
s
of
n
in
e
se
ct
io
n
s
an
d
es
ta
bl
is
h
es
th
e
P
u
bl
ic
C
om
p
an
y

A
cc
ou
n
ti
n
g
O
ve
rs
ig
h
t
B
oa
rd
,p
ro
vi
d
in
g
in
d
ep
en
d
en
t
ov
er
si
gh
t
of

p
u
bl
ic
ac
co
u
n
ti
n
g
fi
rm
s.
It
al
so
cr
ea
te
s
a
ce
n
tr
al
ov
er
si
gh
t
bo
ar
d

ta
sk
ed
w
it
h
re
gi
st
er
in
g
au
d
it
or
s,
d
ef
in
in
g
th
e
sp
ec
if
ic
p
ro
ce
ss
es
fo
r

co
m
p
li
an
ce
au
d
it
s,
in
sp
ec
ti
n
g
co
n
d
u
ct
an
d
qu
al
it
y
co
n
tr
ol
,a
n
d

en
fo
rc
in
g
co
m
p
li
an
ce
.

A
u
d
it
o
r
In
d
e
p
e
n
d
e
n
ce

T
it
le
II
co
n
si
st
s
of
n
in
e
se
ct
io
n
s
an
d
es
ta
bl
is
h
es
st
an
d
ar
d
s
fo
r

e
x
te
rn
a
l
a
u
d
it
o
r
in
d
ep
en
d
en
ce
.I
t
al
so
ad
d
re
ss
es
n
ew
au
d
it
or

ap
p
ro
va
lr
eq
u
ir
em
en
ts
,a
u
d
it
p
ar
tn
er
ro
ta
ti
on
an
d
au
d
it
or

59

S
O
X
is
a
U
ni
te
d
S
ta
te
s

fe
d
er
al

la
w

th
at

se
t
ne

w
or

en
ha

nc
ed

st
an

d
ar
d
s
fo
r
al
l

U
.S
.p

ub
lic

co
m
p
an

y
b
oa

rd
s,

m
an

ag
em

en
t
an

d
p
ub

lic
ac

co
un

tin
g
r
m
s.

Fi
g
ur
e
1.
23

S
ar
b
an
es

O
xl
ey

A
ct

re
p
or
ti
n
g
re
qu
ir
em
en
ts
.I
t
re
st
ri
ct
s
au
d
it
in
g
co
m
p
an
ie
s
fr
om

p
ro
vi
d
in
g
n
on
-a
u
d
it
se
rv
ic
es
(e
.g
.,
co
n
su
lt
in
g)
fo
r
th
e
sa
m
e
cl
ie
n
ts
.

C
o
rp
o
ra
te
R
e
sp
o
n
si
b
il
it
y

T
it
le
II
I
co
n
si
st
s
of
ei
gh
t
se
ct
io
n
s
m
an
d
at
in
g
th
at
se
n
io
r
ex
ec
u
ti
ve
s

ta
ke
in
d
iv
id
u
al
re
sp
on
si
bi
li
ty
fo
r
th
e
ac
cu
ra
cy
an
d
co
m
p
le
te
n
es
s
of

co
rp
or
at
e
fi
n
an
ci
al
re
p
or
ts
.I
t
d
ef
in
es
th
e
in
te
ra
ct
io
n
of
ex
te
rn
al

au
d
it
or
s
an
d
co
rp
or
at
e
au
d
it
co
m
m
it
te
es
,a
n
d
sp
ec
if
ie
s
th
e

re
sp
on
si
bi
li
ty
of
co
rp
or
at
e
of
fi
ce
rs
fo
r
th
e
ac
cu
ra
cy
an
d
va
li
d
it
y
of

co
rp
or
at
e
fi
n
an
ci
al
re
p
or
ts
.

E
n
h
a
n
ce
d
F
in
a
n
ci
a
l
D
is
cl
o
su
re
s

T
it
le
IV
co
n
si
st
s
of
n
in
e
se
ct
io
n
s.
It
d
es
cr
ib
es
en
h
an
ce
d
re
p
or
ti
n
g

re
qu
ir
em
en
ts
fo
r
fi
n
an
ci
al
tr
an
sa
ct
io
n
s,
in
cl
u
d
in
g
o
ff
-b
a
la
n
ce

sh
e
e
t
tr
an
sa
ct
io
n
s,
p
ro
-f
or
m
a
fi
gu
re
s
an
d
st
oc
k
tr
an
sa
ct
io
n
s
of

co
rp
or
at
e
of
fi
ce
rs
.I
t
re
qu
ir
es
in
te
rn
al
co
n
tr
ol
s
fo
r
as
su
ri
n
g
th
e

ac
cu
ra
cy
of
fi
n
an
ci
al
re
p
or
ts
an
d
d
is
cl
os
u
re
s,
an
d
m
an
d
at
es
bo
th

au
d
it
s
an
d
re
p
or
ts
on
th
os
e
co
n
tr
ol
s.

A
n
a
ly
st
C
o
n
fl
ic
ts
o
f
In
te
re
st

T
it
le
V
co
n
si
st
s
of
on
ly
on
e
se
ct
io
n
,w
h
ic
h
in
cl
u
d
es
m
ea
su
re
s

d
es
ig
n
ed
to
h
el
p
re
st
or
e
in
ve
st
or
co
n
fi
d
en
ce
in
re
p
or
ti
n
g
of

se
cu
ri
ti
es
an
al
ys
ts
.I
t
d
ef
in
es
th
e
co
d
es
of
co
n
d
u
ct
fo
r
se
cu
ri
ti
es

an
al
ys
ts
an
d
re
qu
ir
es
d
is
cl
os
u
re
of
kn
ow
ab
le
co
n
fl
ic
ts
of
in
te
re
st
.

C
o
m
m
is
si
o
n
R
e
so
u
rc
e
s
a
n
d
A
u
th
o
ri
ty

T
it
le
V
I
co
n
si
st
s
of
fo
u
r
se
ct
io
n
s
an
d
d
ef
in
es
p
ra
ct
ic
es
to
re
st
or
e

in
ve
st
or
co
n
fi
d
en
ce
in
se
cu
ri
ti
es
an
al
ys
ts
.I
t
al
so
d
ef
in
es
th
e
SE
C
‘s

au
th
or
it
y
to
ce
n
su
re
se
cu
ri
ti
es
p
ro
fe
ss
io
n
al
s
fr
om
p
ra
ct
ic
e
an
d

d
ef
in
es
co
n
d
it
io
n
s
u
n
d
er
w
h
ic
h
a
p
er
so
n
ca
n
be
ba
rr
ed
fr
om

p
ra
ct
ic
in
g
as
a
br
ok
er
,a
d
vi
so
r,
or
d
ea
le
r.

S
tu
d
ie
s
a
n
d
R
e
p
o
rt
s

T
it
le
V
II
co
n
si
st
s
of
fi
ve
se
ct
io
n
s
an
d
re
qu
ir
es
th
e
C
om
p
tr
ol
le
r

G
en
er
al
an
d
th
e
S
E
C
to
p
er
fo
rm
va
ri
ou
s
st
u
d
ie
s
an
d
re
p
or
t
th
ei
r

fi
n
d
in
gs
.S
tu
d
ie
s
in
cl
u
d
e
th
e
ef
fe
ct
s
of
co
n
so
li
d
at
io
n
of
p
u
bl
ic

ac
co
u
n
ti
n
g
fi
rm
s
an
d
ro
le
of
cr
e
d
it
ra
ti
n
g
a
g
e
n
ci
e
s
in
th
e

op
er
at
io
n
of
se
cu
ri
ti
es
m
ar
ke
ts
.

C
o
rp
o
ra
te
a
n
d
C
ri
m
in
a
l
F
ra
u
d
A
cc
o
u
n
ta
b
il
it
y

T
it
le
V
II
I
co
n
si
st
s
of
se
ve
n
se
ct
io
n
s
an
d
is
al
so
re
fe
rr
ed
to
as
th
e

“C
or
p
or
at
e
an
d
C
ri
m
in
al
F
ra
u
d
A
cc
ou
n
ta
bi
li
ty
A
ct
of
20
0
2.

It

d
es
cr
ib
es
sp
ec
if
ic
cr
im
in
al
p
en
al
ti
es
fo
r
m
an
ip
u
la
ti
on
,d
es
tr
u
ct
io
n

or
al
te
ra
ti
on
of
fi
n
an
ci
al
re
co
rd
s,
or
ot
h
er
in
te
rf
er
en
ce
w
it
h

60

in
ve
st
ig
at
io
n
s,
w
h
il
e
al
so
p
ro
vi
d
in
g
ce
rt
ai
n
p
ro
te
ct
io
n
s
fo
r

w
h
is
tl
eb
lo
w
er
s.

W
h
it
e
C
o
ll
a
r
C
ri
m
e
P
e
n
a
lt
y
E
n
h
a
n
ce
m
e
n
t

T
it
le
IX
co
n
si
st
s
of
si
x
se
ct
io
n
s.
T
h
is
se
ct
io
n
in
cr
ea
se
s
th
e
cr
im
in
al

p
en
al
ti
es
as
so
ci
at
ed
w
it
h
w
h
it
e-
co
ll
ar
cr
im
es
an
d
co
n
sp
ir
ac
ie
s.
It

re
co
m
m
en
d
s
st
ro
n
ge
r
se
n
te
n
ci
n
g
gu
id
el
in
es
an
d
sp
ec
if
ic
al
ly
ad
d
s

fa
il
u
re
to
ce
rt
if
y
co
rp
or
at
e
fi
n
an
ci
al
re
p
or
ts
as
a
cr
im
in
al
of
fe
n
se
.

C
o
rp
o
ra
te
T
a
x
R
e
tu
rn
s

T
it
le
X
co
n
si
st
s
of
on
e
se
ct
io
n
.S
ec
ti
on
10
0
1
st
at
es
th
at
th
e
C
h
ie
f

E
xe
cu
ti
ve
O
ff
ic
er
sh
ou
ld
si
gn
th
e
co
m
p
an
y
ta
x
re
tu
rn
.

C
o
rp
o
ra
te
F
ra
u
d
A
cc
o
u
n
ta
b
il
it
y

T
it
le
X
I
co
n
si
st
s
of
se
ve
n
se
ct
io
n
s.
Se
ct
io
n
11
0
1
re
co
m
m
en
d
s
a

n
am
e
fo
r
th
is
ti
tl
e
as
“C
or
p
or
at
e
F
ra
u
d
A
cc
ou
n
ta
bi
li
ty
A
ct
of
20
0
2.

It
id
en
ti
fi
es
co
rp
or
at
e
fr
au
d
an
d
re
co
rd
s
ta
m
p
er
in
g
as
cr
im
in
al

of
fe
n
se
s
an
d
jo
in
s
th
os
e
of
fe
n
se
s
to
sp
ec
if
ic
p
en
al
ti
es
.I
t
al
so
re
vi
se
s

se
n
te
n
ci
n
g
gu
id
el
in
es
an
d
st
re
n
gt
h
en
s
th
ei
r
p
en
al
ti
es
.

E
X
A
M
P
LE

Se
ct
io
n
30
2
re
qu
ir
es
th
at
th
e
co
m
p
an
y’
s
“p
ri
n
ci
p
al

of
fi
ce
rs

(t
yp
ic
al
ly
th
e
C
h
ie
fE
xe
cu
ti
ve
O
ff
ic
er
an
d
C
h
ie
f

F
in
an
ci
al
O
ff
ic
er
)
ce
rt
if
y
an
d
ap
p
ro
ve
th
e
in
te
gr
it
y
of
th
ei
r

co
m
p
an
y
fi
n
an
ci
al
re
p
or
ts
qu
ar
te
rl
y.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
co
rp
or
a
te
-g
ov
er
n
a
n
ce
/s
a
rb
a
n
es

ox
le
y/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

61

D
e

ni
ng

A
ge

nc
y
C
on

i
ct
s

M
an

ag
er
s,

S
ha

re
ho

ld
er
s,

an
d
B
on

d
ho

ld
er
s

M
an

ag
er
s
C
on

i
ct
s
w
ith

S
ha

re
ho

ld
er
s

S
ha

re
ho

ld
er
s
C
on

i
ct
s
w
ith

B
on

d
ho

ld
er
s

Se
ct
io
n
7

A
ge

nc
y
an

d
C
on

i
ct
s
of

In
te
re
st

62

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
ag

en
cy

-a
nd

-c
on

i
ct
s-
of
-i
nt
er
es

t/

D
e

ni
ng

A
ge

nc
y
C
on

i
ct
s

A
ge

nc
y
co

n
ic
ts

ca
n
oc

cu
r
w
he

n
th
e
in
ce

nt
iv
es

of
th
e

ag
en

t
d
o
no

t
al
ig
n
w
ith

th
os

e
of

th
e
p
rin

ci
p
al
.

K
E
Y
P
O
IN
TS


T
h
e
ag
en
cy
vi
ew
of
th
e
co
rp
or
at
io
n
p
os
it
s
th
at
th
e
d
ec
is
io
n

ri
gh
ts
(c
on
tr
ol
)
of
th
e
co
rp
or
at
io
n
ar
e
en
tr
u
st
ed
to
th
e

m
an
ag
er
to
ac
t
in
sh
ar
eh
ol
d
er
s’
in
te
re
st
s.
C
on
tr
ol
sy
st
em
s
in

co
rp
or
at
e
go
ve
rn
an
ce
ca
n
h
el
p
al
ig
n
m
an
ag
er
s’
in
ce
n
ti
ve
s

w
it
h
th
os
e
of
sh
ar
eh
ol
d
er
s
an
d
ot
h
er
st
ak
eh
ol
d
er
s.


T
h
e
p
ri
n
ci
p
al

ag
en
t
p
ro
bl
em
co
n
ce
rn
s
th
e
d
if
fi
cu
lt
ie
s
in

m
ot
iv
at
in
g
on
e
p
ar
ty
(t
h
e
“a
ge
n
t”
),
to
ac
t
on
be
h
al
fo
fa
n
ot
h
er

(t
h
e
“p
ri
n
ci
p
al
“)
.T
h
e
tw
o
p
ar
ti
es
h
av
e
d
if
fe
re
n
t
in
te
re
st
s
an
d

as
ym
m
et
ri
c
in
fo
rm
at
io
n
.M
or
al
h
az
ar
d
an
d
co
n
fl
ic
t
of

in
te
re
st
m
ay
th
u
s
ar
is
e.


T
h
e
d
ev
ia
ti
on
fr
om
th
e
p
ri
n
ci
p
al
‘s
in
te
re
st
by
th
e
ag
en
t
is

ca
ll
ed
“a
ge
n
cy
co
st
s.

A
ge
n
cy
co
st
s
m
ai
n
ly
ar
is
e
d
u
e
to

co
n
tr
ac
ti
n
g
co
st
s
an
d
th
e
d
iv
er
ge
n
ce
of
co
n
tr
ol
,s
ep
ar
at
io
n
of

ow
n
er
sh
ip
an
d
co
n
tr
ol
,a
n
d
th
e
d
if
fe
re
n
t
ob
je
ct
iv
es
(r
at
h
er

th
an
sh
ar
eh
ol
d
er
m
ax
im
iz
at
io
n
)
of
th
e
m
an
ag
er
s.

T
h
e
ag
en
cy
vi
ew
of
th
e
co
rp
or
at
io
n
p
os
it
s
th
at
th
e
d
ec
is
io
n
ri
gh
ts

(c
on
tr
ol
)
of
th
e
co
rp
or
at
io
n
ar
e
en
tr
u
st
ed
to
th
e
m
an
ag
er
to
ac
t
in

sh
ar
eh
ol
d
er
s’
(a
n
d
ot
h
er
p
ar
ti
es
’)
in
te
re
st
s.
P
ar
tl
y
as
a
re
su
lt
of
th
is

se
p
ar
at
io
n
,c
or
p
or
at
e
go
ve
rn
an
ce
m
ec
h
an
is
m
s
in
cl
u
d
e
a
sy
st
em
of

co
n
tr
ol
s
in
te
n
d
ed
to
h
el
p
al
ig
n
m
an
ag
er
s’
in
ce
n
ti
ve
s
w
it
h
th
os
e
of

sh
ar
eh
ol
d
er
s
an
d
ot
h
er
st
ak
eh
ol
d
er
s.

T
h
e
p
ri
n
ci
p
al

ag
en
t
p
ro
bl
em
or
ag
en
cy
d
il
em
m
a,
d
ev
el
op
ed
in

ec
on
om
ic
th
eo
ry
,c
on
ce
rn
s
th
e
d
if
fi
cu
lt
ie
s
in
m
ot
iv
at
in
g
on
e
p
ar
ty

(t
h
e
“a
g
e
n
t”
),
to
ac
t
on
be
h
al
fo
fa
n
ot
h
er
(t
h
e
“p
ri
n
ci
p
al
“)
.T
h
e
tw
o

p
ar
ti
es
h
av
e
d
if
fe
re
n
t
in
te
re
st
s
an
d
a
sy
m
m
e
tr
ic
in
fo
rm
a
ti
o
n

(t
h
e
ag
en
t
h
av
in
g
m
or
e
in
fo
rm
at
io
n
),
su
ch
th
at
th
e
p
ri
n
ci
p
al
ca
n
n
ot

d
ir
ec
tl
y
en
su
re
th
at
th
e
ag
en
ts
ar
e
al
w
ay
s
ac
ti
n
g
in
it
s
(t
h
e

p
ri
n
ci
p
al
s’
)
be
st
in
te
re
st
s,
p
ar
ti
cu
la
rl
y
w
h
en
ac
ti
vi
ti
es
th
at
ar
e

u
se
fu
lt
o
th
e
p
ri
n
ci
p
al
ar
e
co
st
ly
to
th
e
ag
en
t,
an
d
w
h
er
e
el
em
en
ts
of

w
h
at
th
e
ag
en
t
d
oe
s
ar
e
co
st
ly
fo
r
th
e
p
ri
n
ci
p
al
to
ob
se
rv
e.
M
o
ra
l

h
a
za
rd
an
d
co
n
fl
ic
t
o
f
in
te
re
st
(C
O
I)
m
ay
th
u
s
ar
is
e
(F
ig
u
re
1.

24
).

63

P
rin

ci
p
al
-a
ge

nt
p
ro
b
le
m
s

w
hi
ch

ar
is
e

w
he

n
m
an

ag
er
s
ac

t
on

th
e
b
eh

al
fo

fa
r
m

an
d
its

in
ve

st
or
s

in
cl
ud

e
p
ot
en

tia
l

co
n

ic
ts

of
in
te
re
st
.

Fi
g
ur
e
1.
24

C
on
i
ct
of

In
te
re
st

T
h
e
d
ev
ia
ti
on
fr
om
th
e
p
ri
n
ci
p
al
‘s
in
te
re
st
by
th
e
ag
en
t
is
ca
ll
ed

“a
ge
n
cy
co
st
s.

A
ge
n
cy
co
st
s
m
ai
n
ly
ar
is
e
d
u
e
to
co
n
tr
ac
ti
n
g
co
st
s

an
d
th
e
d
iv
er
ge
n
ce
of
co
n
tr
ol
,s
ep
ar
at
io
n
of
ow
n
er
sh
ip
an
d
co
n
tr
ol
,

an
d
th
e
d
if
fe
re
n
t
ob
je
ct
iv
es
(r
at
h
er
th
an
sh
ar
eh
ol
d
er
m
ax
im
iz
at
io
n
)

of
th
e
m
an
ag
er
s.
W
h
en
a
fi
rm
h
as
d
eb
t,
co
n
fl
ic
ts
of
in
te
re
st
ca
n
al
so

ar
is
e
be
tw
ee
n
st
oc
kh
ol
d
er
s
an
d
bo
n
d
h
ol
d
er
s,
le
ad
in
g
to
ag
en
cy

co
st
s
on
th
e
fi
rm
.E
xa
m
p
le
s
of
ag
en
cy
co
st
s
in
cl
u
d
e
th
at
bo
rn
e
by

sh
ar
eh
ol
d
er
s
(t
h
e
p
ri
n
ci
p
al
),
w
h
en
co
rp
or
at
e
m
an
ag
em
en
t
(t
h
e

ag
en
t)
bu
ys
ot
h
er
co
m
p
an
ie
s
to
ex
p
an
d
it
s
p
ow
er
in
st
ea
d
of

m
ax
im
iz
in
g
th
e
va
lu
e
of
th
e
co
rp
or
at
io
n
‘s
w
or
th
;o
r
by
th
e

co
n
st
it
u
en
ts
of
a
p
ol
it
ic
ia
n
‘s
d
is
tr
ic
t
(t
h
e
p
ri
n
ci
p
al
)
w
h
en
th
e

p
ol
it
ic
ia
n
(t
h
e
ag
en
t)
p
as
se
s
le
gi
sl
at
io
n
h
el
p
fu
lt
o
la
rg
e
co
n
tr
ib
u
to
rs

to
th
ei
r
ca
m
p
ai
gn
ra
th
er
th
an
h
el
p
fu
lt
o
vo
te
rs
.

M
u
ch
of
th
e
co
n
te
m
p
or
ar
y
in
te
re
st
in
co
rp
or
at
e
go
ve
rn
an
ce
is

co
n
ce
rn
ed
w
it
h
m
it
ig
at
io
n
of
th
e
co
n
fl
ic
ts
of
in
te
re
st
s
be
tw
ee
n

st
ak
eh
ol
d
er
s.
A
co
n
fl
ic
t
of
in
te
re
st
oc
cu
rs
w
h
en
an
in
d
iv
id
u
al
or

or
ga
n
iz
at
io
n
is
in
vo
lv
ed
in
m
u
lt
ip
le
in
te
re
st
s
th
at
m
ay
le
ad
to

co
n
fl
ic
ts
in
th
ei
r
ab
il
it
y
to
ac
t
in
th
e
be
st
in
te
re
st
of
on
e
p
ar
ty
.I
n

ad
d
it
io
n
to
co
n
fl
ic
ts
of
in
te
re
st
be
tw
ee
n
m
an
ag
er
s,
sh
ar
eh
ol
d
er
s,

an
d
bo
n
d
h
ol
d
er
s,
co
n
fl
ic
ts
of
in
te
re
st
ca
n
al
so
oc
cu
r
am
on
g
ot
h
er

st
ak
eh
ol
d
er
s
of
a
co
m
p
an
y,
su
ch
as
th
e
bo
ar
d
of
d
ir
ec
to
rs
,

em
p
lo
ye
es
,g
ov
er
n
m
en
t,
su
p
p
li
er
s,
an
d
cu
st
om
er
s.
C
O
I
is

so
m
et
im
es
te
rm
ed
“c
om
p
et
it
io
n
of
in
te
re
st

ra
th
er
th
an
“c
on
fl
ic
t”
,

em
p
h
as
iz
in
g
a
co
n
n
ot
at
io
n
of
n
at
u
ra
lc
om
p
et
it
io
n
be
tw
ee
n
va
li
d

in
te
re
st
s
ra
th
er
th
an
vi
ol
en
t
co
n
fl
ic
t.
A
t
ot
h
er
ti
m
es
,c
on
fl
ic
ts
of

in
te
re
st
ar
e
co
n
fu
se
d
w
it
h
ca
se
s
th
at
m
ig
h
t
be
tt
er
be
te
rm
ed

“c
or
ru
p
ti
on
“,
su
ch
as
br
ib
e-
ta
ki
n
g
or
fr
au
d
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
g
en
cy
-a
n
d
-c
on
fl
ic
ts
-o
f-
in
te
re
st
/

d
ef
in
in
g
-a
g
en
cy
-c
on
fl
ic
ts
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

64

M
an

ag
er
s,

S
ha

re
ho

ld
er
s,

an
d

B
on

d
ho

ld
er
s

Th
re
e
p
ar
tie

s
ke

y
to

th
e
co

rp
or
at
io
n’
s
fu
nc

tio
ni
ng

ar
e

m
an

ag
er
s,

sh
ar
eh

ol
d
er
s,

an
d
b
on

d
ho

ld
er
s,

ea
ch

of
w
hi
ch

ca
n
ha

ve
d
i
er
en

t
in
te
re
st
s.

K
E
Y
P
O
IN
TS


T
h
re
e
p
ar
ti
es
ke
y
to
th
e
fu
n
ct
io
n
in
g
of
th
e
co
rp
or
at
io
n
ar
e
th
e

m
an
ag
er
s,
sh
ar
eh
ol
d
er
s,
an
d
bo
n
d
h
ol
d
er
s.
W
h
il
e
m
an
ag
er
s

co
n
tr
ol
th
e
co
rp
or
at
io
n
an
d
m
ak
e
st
ra
te
gi
c
d
ec
is
io
n
s,

sh
ar
eh
ol
d
er
s
ar
e
ow
n
er
s,
an
d
bo
n
d
h
ol
d
er
s
ar
e
cr
ed
it
or
s.


W
h
il
e
al
lt
h
re
e
p
ar
ti
es
h
av
e
an
in
te
re
st
,w
h
et
h
er
d
ir
ec
t
or

in
d
ir
ec
t,
in
th
e
fi
n
an
ci
al
p
er
fo
rm
an
ce
of
th
e
co
rp
or
at
io
n
,e
ac
h

of
th
e
th
re
e
p
ar
ti
es
h
as
d
if
fe
re
n
t
ri
gh
ts
an
d
re
w
ar
d
s,
fo
r

ex
am
p
le
vo
ti
n
g
ri
gh
ts
an
d
fo
rm
s
of
fi
n
an
ci
al
re
tu
rn
.


Sh
ar
eh
ol
d
er
s,
m
an
ag
er
s,
an
d
bo
n
d
h
ol
d
er
s
h
av
e
d
if
fe
re
n
t

ob
je
ct
iv
es
.F
or
ex
am
p
le
,s
h
ar
eh
ol
d
er
s
h
av
e
an
in
ce
n
ti
ve
to

ta
ke
ri
sk
ie
r
p
ro
je
ct
s
th
an
bo
n
d
h
ol
d
er
s
d
o
an
d
m
ay
p
re
fe
r
th
at

th
e
co
m
p
an
y
p
ay
m
or
e
ou
t
in
d
iv
id
en
d
s.
M
an
ag
er
s
m
ay
al
so

be
sh
ar
eh
ol
d
er
s
or
p
re
fe
r
ri
sk
-a
ve
rs
e,
em
p
ir
e-
bu
il
d
in
g

p
ro
je
ct
s.

T
h
e
ag
en
cy
vi
ew
of
th
e
co
rp
or
at
io
n
p
os
it
s
th
at
th
e
d
ec
is
io
n
ri
gh
ts

(c
on
tr
ol
)
of
th
e
co
rp
or
at
io
n
ar
e
en
tr
u
st
ed
to
th
e
m
an
ag
er
to
ac
t
in

sh
ar
eh
ol
d
er
s’
an
d
ot
h
er
st
ak
eh
ol
d
er
s’
in
te
re
st
s.
P
ar
tl
y
as
a
re
su
lt
of

th
is
se
p
ar
at
io
n
,c
or
p
or
at
e
go
ve
rn
an
ce
m
ec
h
an
is
m
s
in
cl
u
d
e
a
sy
st
em

of
co
n
tr
ol
s
in
te
n
d
ed
to
h
el
p
al
ig
n
m
an
ag
er
s’
in
ce
n
ti
ve
s
w
it
h
th
os
e
of

sh
ar
eh
ol
d
er
s
an
d
ot
h
er
st
ak
eh
ol
d
er
s.

T
h
e
d
ev
ia
ti
on
fr
om
th
e
p
ri
n
ci
p
al
‘s
in
te
re
st
by
th
e
ag
en
t
is
ca
ll
ed

‘a
ge
n
cy
co
st
s.
‘A
ge
n
cy
co
st
s
m
ai
n
ly
ar
is
e
d
u
e
to
co
n
tr
ac
ti
n
g
co
st
s

an
d
th
e
d
iv
er
ge
n
ce
of
co
n
tr
ol
,s
ep
ar
at
io
n
of
ow
n
er
sh
ip
an
d
co
n
tr
ol

an
d
th
e
d
if
fe
re
n
t
ob
je
ct
iv
es
of
th
e
m
an
ag
er
s
an
d
ot
h
er
st
ak
eh
ol
d
er
s.

T
h
re
e
p
ar
ti
es
ke
y
to
th
e
fu
n
ct
io
n
in
g
of
th
e
co
rp
or
at
io
n
ar
e
th
e

m
an
ag
er
s,
sh
ar
eh
ol
d
er
s,
an
d
bo
n
d
h
ol
d
er
s
(F
ig
u
re
1.
25
).
T
h
es
e

th
re
e
p
ar
ti
es
h
av
e
d
if
fe
re
n
t
in
te
re
st
s
an
d
as
ym
m
et
ri
c
in
fo
rm
at
io
n
,

su
ch
th
at
th
e
p
ri
n
ci
p
al
s
ca
n
n
ot
d
ir
ec
tl
y
en
su
re
th
at
th
e
ag
en
ts
ar
e

al
w
ay
s
ac
ti
n
g
in
it
s
(t
h
e
p
ri
n
ci
p
al
s’
)
be
st
in
te
re
st
s.
M
or
al
h
az
ar
d
an
d

co
n
fl
ic
t
of
in
te
re
st
m
ay
ar
is
e.

65

B
us

in
es

s
in
vo

lv
es

a
co

m
p
le
x
ne

tw
or
k
of

in
te
re
st
s
of

m
an

ag
er
s,

sh
ar
eh

ol
d
er
s,

an
d

b
on

d
ho

ld
er
s.

Fi
g
ur
e
1.
25

Th
re
e

B
us
in
es
sm

en

D
is
cu
ss
in
g
a

D
oc
um

en
t

W
h
il
e
m
an
ag
er
s
co
n
tr
ol
th
e
co
rp
or
at
io
n
an
d
m
ak
e
st
ra
te
gi
c

d
ec
is
io
n
s,
sh
ar
eh
ol
d
er
s
ar
e
ow
n
er
s,
an
d
bo
n
d
h
ol
d
er
s
ar
e
cr
ed
it
or
s.

W
h
il
e
al
lt
h
re
e
p
ar
ti
es
h
av
e
an
in
te
re
st
,w
h
et
h
er
d
ir
ec
t
or
in
d
ir
ec
t,

in
th
e
fi
n
an
ci
al
p
er
fo
rm
an
ce
of
th
e
co
rp
or
at
io
n
,e
ac
h
of
th
e
th
re
e

p
ar
ti
es
h
as
d
if
fe
re
n
t
ri
gh
ts
an
d
re
w
ar
d
s,
fo
r
ex
am
p
le
vo
ti
n
g
ri
g
h
ts

an
d
fo
rm
s
of
fi
n
an
ci
al
re
tu
rn
.S
h
ar
eh
ol
d
er
s,
m
an
ag
er
s,
an
d

bo
n
d
h
ol
d
er
s
h
av
e
d
if
fe
re
n
t
ob
je
ct
iv
es
.F
or
ex
am
p
le
,s
to
ck
h
ol
d
er
s

h
av
e
an
in
ce
n
ti
ve
to
ta
ke
ri
sk
ie
r
p
ro
je
ct
s
th
an
bo
n
d
h
ol
d
er
s
d
o,
as

bo
n
d
h
ol
d
er
s
ar
e
m
or
e
in
te
re
st
ed
in
st
ra
te
gi
es
th
at
w
il
li
n
cr
ea
se
th
e

ch
an
ce
s
of
ge
tt
in
g
th
ei
r
in
ve
st
m
en
t
ba
ck
.S
h
ar
eh
ol
d
er
s
al
so
p
re
fe
r

th
at
th
e
co
m
p
an
y
p
ay
m
or
e
ou
t
in
d
iv
id
en
d
s
th
an
bo
n
d
h
ol
d
er
s

w
ou
ld
li
ke
.M
an
ag
er
s
m
ay
al
so
be
sh
ar
eh
ol
d
er
s
an
d
re
ap
th
e
p
ro
fi
ts

of
m
or
e
ri
sk
y
st
ra
te
gi
es
or
m
ay
p
re
fe
r
ri
sk
-a
ve
rs
e
em
p
ir
e-
bu
il
d
in
g

p
ro
je
ct
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
g
en
cy
-a
n
d
-c
on
fl
ic
ts
-o
f-
in
te
re
st
/

m
a
n
a
g
er
s-
sh
a
re
ho
ld
er
s-
a
n
d
-b
on
d
ho
ld
er
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

M
an

ag
er
s
C
on

i
ct
s
w
ith

S
ha

re
ho

ld
er
s

A
ge

nc
y
co

st
s
m
ai
nl
y
oc

cu
r
w
he

n
ow

ne
rs
hi
p
is

se
p
ar
at
ed

,o
r
w
he

n
m
an

ag
er
s
ha

ve
ob

je
ct
iv
es

ot
he

r
th
an

sh
ar
eh

ol
d
er

va
lu
e
m
ax

im
iz
at
io
n.

K
E
Y
P
O
IN
TS


T
h
e
ag
en
cy
vi
ew
of
th
e
co
rp
or
at
io
n
su
gg
es
ts
th
at
th
e
d
ec
is
io
n

ri
gh
ts
of
th
e
co
rp
or
at
io
n
sh
ou
ld
be
en
tr
u
st
ed
to
a
m
an
ag
er
to

ac
t
in
sh
ar
eh
ol
d
er
s’
in
te
re
st
s.
A
ge
n
cy
co
st
s
m
ai
n
ly
oc
cu
r

w
h
en
ow
n
er
sh
ip
is
se
p
ar
at
ed
,o
r
w
h
en
m
an
ag
er
s
h
av
e

ob
je
ct
iv
es
ot
h
er
th
an
sh
ar
eh
ol
d
er
va
lu
e
m
ax
im
iz
at
io
n
.


T
yp
ic
al
ly
,t
h
e
C
E
O
an
d
ot
h
er
to
p
ex
ec
u
ti
ve
s
ar
e
re
sp
on
si
bl
e

fo
r
m
ak
in
g
d
ec
is
io
n
s
ab
ou
t
h
ig
h
-l
ev
el
p
ol
ic
y
an
d
st
ra
te
gy
.

Sh
ar
eh
ol
d
er
s,
on
th
e
ot
h
er
h
an
d
,a
re
in
d
iv
id
u
al
s
or

in
st
it
u
ti
on
s
th
at
le
ga
ll
y
ow
n
sh
ar
es
of
co
rp
or
at
io
n
st
oc
k.

Sh
ar
eh
ol
d
er
s
ty
p
ic
al
ly
co
n
ce
d
e
co
n
tr
ol
ri
gh
ts
to
m
an
ag
er
s.


T
h
er
e
ar
e
va
ri
ou
s
co
n
fl
ic
ts
of
in
te
re
st
th
at
ca
n
im
p
ac
t

m
an
ag
er
’s
d
ec
is
io
n
s
to
ac
t
in
sh
ar
eh
ol
d
er
s’
in
te
re
st
s.

M
an
ag
em
en
t
m
ay
,f
or
ex
am
p
le
,b
u
y
ot
h
er
co
m
p
an
ie
s
to

ex
p
an
d
p
ow
er
.V
en
tu
ri
n
g
on
to
fr
au
d
,t
h
ey
m
ay
ev
en

m
an
ip
u
la
te
fi
n
an
ci
al
fi
gu
re
s
to
op
ti
m
iz
e
bo
n
u
se
s
an
d
st
oc
k-

p
ri
ce
-r
el
at
ed
op
ti
on
s.

66

K
E
Y
P
O
IN
TS

(c
on
t.
)


C
on
te
m
p
or
ar
y
d
is
cu
ss
io
n
s
of
co
rp
or
at
e
go
ve
rn
an
ce
ar
gu
e

th
at
co
rp
or
at
io
n
s
sh
ou
ld
re
sp
ec
t
th
e
ri
gh
ts
of
sh
ar
eh
ol
d
er
s

an
d
h
el
p
sh
ar
eh
ol
d
er
s
to
ex
er
ci
se
th
os
e
ri
gh
ts
.D
is
cl
os
u
re
an
d

tr
an
sp
ar
en
cy
ar
e
in
ti
m
at
el
y
in
te
rt
w
in
ed
w
it
h
th
es
e
go
al
s.

T
h
e
“a
ge
n
cy
vi
ew

of

co
rp
or
at
io
n
s
ar
gu
es
th
at
th
e

d
ec
is
io
n
s
ri
gh
ts
(o
r
co
n
tr
ol
)

of
a
co
rp
or
at
io
n
sh
ou
ld
be

en
tr
u
st
ed
to
a
m
an
ag
er
,s
o

th
at
th
e
m
an
ag
er
ca
n
ac
t
in

th
e
in
te
re
st
of
sh
ar
eh
ol
d
er
s

(F
ig
u
re
1.
26
).
P
ar
tl
y
as
a

re
su
lt
of
th
is
,m
ec
h
an
is
m
s
of

co
rp
or
at
e
go
ve
rn
an
ce
in
cl
u
d
e

a
sy
st
em
of
co
n
tr
ol
s
th
at
ar
e

in
te
n
d
ed
to
al
ig
n
th
e

in
ce
n
ti
ve
s
of
m
an
ag
er
s
w
it
h

th
os
e
of
sh
ar
eh
ol
d
er
s.

T
h
e
te
rm
“a
ge
n
cy
co
st
s”

re
fe
rs
to
in
st
an
ce
s
w
h
en
an

ag
en
t’s
be
h
av
io
r
h
as
d
ev
ia
te
d

fr
om
a
p
ri
n
ci
p
al
‘s
in
te
re
st
.I
n
th
is
ca
se
,t
h
e
p
ri
n
ci
p
al
w
ou
ld
be
th
e

sh
ar
eh
ol
d
er
.T
h
es
e
ty
p
es
of
co
st
s
m
ai
n
ly
ar
is
e
be
ca
u
se
of

co
n
tr
ac
ti
n
g
co
st
s,
or
be
ca
u
se
in
d
iv
id
u
al
m
an
ag
er
s
m
ig
h
t
on
ly

p
os
se
ss
p
ar
ti
al
co
n
tr
ol
of
co
rp
or
at
io
n
be
h
av
io
r.
T
h
ey
al
so
ar
is
e

w
h
en
m
an
ag
er
s
h
av
e
p
er
so
n
al
ob
je
ct
iv
es
th
at
ar
e
d
if
fe
re
n
t
fr
om
th
e

go
al
of
m
ax
im
iz
in
g
sh
ar
eh
ol
d
er
p
ro
fi
t.

T
yp
ic
al
ly
,t
h
e
C
E
O
an
d
ot
h
er
to
p
ex
ec
u
ti
ve
s
ar
e
re
sp
on
si
bl
e
fo
r

m
ak
in
g
d
ec
is
io
n
s
ab
ou
t
h
ig
h
-l
ev
el
p
ol
ic
y
an
d
st
ra
te
gy
.

Sh
ar
eh
ol
d
er
s,
on
th
e
ot
h
er
h
an
d
,a
re
in
d
iv
id
u
al
s
or
in
st
it
u
ti
on
s
th
at

le
ga
ll
y
ow
n
sh
ar
es
of
st
oc
k
in
a
co
rp
or
at
io
n
.T
yp
ic
al
ly
,t
h
es
e
p
eo
p
le

h
av
e
th
e
ri
gh
t
to
se
ll
th
os
e
sh
ar
es
,t
o
vo
te
on
d
ir
ec
to
rs
n
om
in
at
ed
by

va
ri
ou
s
bo
ar
d
s,
an
d
m
an
y
ot
h
er
p
ri
vi
le
ge
s.
T
h
is
be
in
g
sa
id
,

sh
ar
eh
ol
d
er
s
u
su
al
ly
co
n
ce
d
e
m
os
t
of
th
ei
r
co
n
tr
ol
ri
gh
ts
to

m
an
ag
er
s.

W
h
il
e
at
te
m
p
ti
n
g
to
be
n
ef
it
sh
ar
eh
ol
d
er
s,
m
an
ag
er
s
of
te
n

en
co
u
n
te
r
co
n
fl
ic
ts
of
in
te
re
st
.F
or
ex
am
p
le
,a
m
an
ag
er
m
ig
h
t

en
ga
ge
in
se
lf
-d
ea
li
n
g,
en
te
ri
n
g
in
to
tr
an
sa
ct
io
n
s
th
at
be
n
ef
it

th
em
se
lv
es
ov
er
sh
ar
eh
ol
d
er
s.
M
an
ag
er
s
m
ig
h
t
al
so
p
u
rc
h
as
e
ot
h
er

co
m
p
an
ie
s
to
ex
p
an
d
in
d
iv
id
u
al
p
ow
er
,o
r
sp
en
d
m
on
ey
on
w
as
te
fu
l

p
et
p
ro
je
ct
s,
in
st
ea
d
of
w
or
ki
n
g
to
m
ax
im
iz
e
th
e
va
lu
e
of

co
rp
or
at
io
n
st
oc
k.
V
en
tu
ri
n
g
on
to
fr
au
d
,t
h
ey
m
ay
ev
en
m
an
ip
u
la
te

fi
n
an
ci
al
fi
gu
re
s
to
op
ti
m
iz
e
bo
n
u
se
s
an
d
st
oc
k-
p
ri
ce
-r
el
at
ed

be
n
ef
it
s.

67

Th
es

e
tw

o
b
us

in
es

sm
en

co
ul
d
re
p
re
se

nt
a

m
an

ag
er

an
d
sh

ar
eh

ol
d
er

d
is
cu

ss
in
g
th
e

op
er
at
io
n
of

th
e
b
us

in
es

s.

Fi
g
ur
e
1.
26

Tw
o
B
us
in
es
sm

en
H
av
in
g
a

D
is
cu
ss
io
n

T
h
e
ch
ie
fg
oa
lo
fc
u
rr
en
t
co
rp
or
at
e
go
ve
rn
an
ce
is
to
el
im
in
at
e

in
st
an
ce
s
w
h
en
sh
ar
eh
ol
d
er
s
h
av
e
co
n
fl
ic
ts
of
in
te
re
st
w
it
h
on
e

an
ot
h
er
.A
n
ot
h
er
im
p
or
ta
n
t
go
al
is
to
ev
al
u
at
e
w
h
et
h
er
a
co
rp
or
at
e

go
ve
rn
an
ce
sy
st
em
h
am
p
er
s
or
im
p
ro
ve
s
th
e
ef
fi
ci
en
cy
of
an

or
ga
n
iz
at
io
n
.R
es
ea
rc
h
of
th
is
ty
p
e
is
p
ar
ti
cu
la
rl
y
fo
cu
se
d
on
h
ow

co
rp
or
at
e
go
ve
rn
an
ce
im
p
ac
ts
th
e
w
el
fa
re
of
sh
ar
eh
ol
d
er
s.
A
ft
er
th
e

h
ig
h
-p
ro
fi
le
co
ll
ap
se
of
a
n
u
m
be
r
of
la
rg
e
co
rp
or
at
io
n
s
in
th
e
p
as
t

tw
o
d
ec
ad
es
,s
ev
er
al
of
w
h
ic
h
in
vo
lv
ed
ac
co
u
n
ti
n
g
fr
au
d
,t
h
er
e
h
as

be
en
a
re
n
ew
ed
p
u
bl
ic
in
te
re
st
in
h
ow
m
od
er
n
co
rp
or
at
io
n
s
p
ra
ct
ic
e

go
ve
rn
an
ce
,p
ar
ti
cu
la
rl
y
re
ga
rd
in
g
ac
co
u
n
ti
n
g.

A
d
vo
ca
te
s
of
go
ve
rn
an
ce
ty
p
ic
al
ly
en
co
u
ra
ge
co
rp
or
at
io
n
s
to

re
sp
ec
t
sh
ar
eh
ol
d
er
ri
gh
ts
,a
n
d
to
h
el
p
sh
ar
eh
ol
d
er
s
le
ar
n
h
ow
an
d

w
h
er
e
to
ex
er
ci
se
th
os
e
ri
gh
ts
.D
is
cl
os
u
re
an
d
tr
a
n
sp
a
re
n
cy
ar
e

in
te
rt
w
in
ed
w
it
h
th
es
e
go
al
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
g
en
cy
-a
n
d
-c
on
fl
ic
ts
-o
f-
in
te
re
st
/

m
a
n
a
g
er
s-
co
n
fl
ic
ts
-w
it
h-
sh
a
re
ho
ld
er
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

S
ha

re
ho

ld
er
s
C
on

i
ct
s
w
ith

B
on

d
ho

ld
er
s

Th
e
sh

ar
eh

ol
d
er
s
an

d
b
on

d
ho

ld
er
s
ha

ve
d
i
er
en

t
rig

ht
s

an
d
re
tu
rn
s,

le
ad

in
g
to

p
ot
en

tia
lc

on
i
ct
s
of

in
te
re
st
.

K
E
Y
P
O
IN
TS


T
h
e
sh
ar
eh
ol
d
er
s
ar
e
in
d
iv
id
u
al
s
or
in
st
it
u
ti
on
s
th
at
le
ga
ll
y

ow
n
sh
ar
es
of
st
oc
k
in
th
e
co
rp
or
at
io
n
,w
h
il
e
th
e
bo
n
d
h
ol
d
er
s

ar
e
th
e
fi
rm
’s
cr
ed
it
or
s.
T
h
e
tw
o
p
ar
ti
es
h
av
e
d
if
fe
re
n
t

re
la
ti
on
sh
ip
s
to
th
e
co
m
p
an
y,
ac
co
m
p
an
ie
d
by
d
if
fe
re
n
t

ri
gh
ts
an
d
fi
n
an
ci
al
re
tu
rn
s.


St
oc
kh
ol
d
er
s
h
av
e
an
in
ce
n
ti
ve
to
ta
ke
ri
sk
ie
r
p
ro
je
ct
s
th
an

bo
n
d
h
ol
d
er
s
d
o.
O
th
er
co
n
fl
ic
ts
of
in
te
re
st
ca
n
st
em
fr
om
th
e

fa
ct
th
at
bo
n
d
s
of
te
n
h
av
e
a
d
ef
in
ed
te
rm
,o
r
m
at
u
ri
ty
,a
ft
er

w
h
ic
h
th
e
bo
n
d
is
re
d
ee
m
ed
,w
h
er
ea
s
st
oc
ks
m
ay
be

ou
ts
ta
n
d
in
g
in
d
ef
in
it
el
y
bu
t
ca
n
al
so
be
so
ld
at
an
y
p
oi
n
t.


B
on
d
h
ol
d
er
s
m
ay
p
u
t
co
n
tr
ac
ts
in
p
la
ce
p
ro
h
ib
it
in
g

m
an
ag
em
en
t
fr
om
ta
ki
n
g
on
ve
ry
ri
sk
y
p
ro
je
ct
s
or
m
ay
ra
is
e

th
e
in
te
re
st
ra
te
d
em
an
d
ed
,i
n
cr
ea
si
n
g
th
e
co
st
of
ca
p
it
al
fo
r

th
e
co
m
p
an
y.
C
on
ve
rs
el
y,
sh
ar
eh
ol
d
er
p
re
fe
re
n
ce
s—
fo
r

ex
am
p
le
fo
r
ri
sk
ie
r
gr
ow
th
st
ra
te
gi
es

ca
n
ad
ve
rs
el
y
im
p
ac
t

bo
n
d
h
ol
d
er
s.

68

T
h
e
ag
en
cy
vi
ew
of
th
e
co
rp
or
at
io
n
p
os
it
s
th
at
th
e
d
ec
is
io
n
ri
gh
ts

(c
on
tr
ol
)
of
th
e
co
rp
or
at
io
n
ar
e
en
tr
u
st
ed
to
th
e
m
an
ag
er
(t
h
e

ag
en
t)
to
ac
t
in
th
e
p
ri
n
ci
p
al
s’
in
te
re
st
s.

T
h
e
d
ev
ia
ti
on
fr
om
th
e
p
ri
n
ci
p
al
s’
in
te
re
st
s
by
th
e
ag
en
t
is
ca
ll
ed

‘a
ge
n
cy
co
st
s’
,w
h
ic
h
ar
e
of
te
n
d
es
cr
ib
ed
as
ex
is
ti
n
g
be
tw
ee
n

m
an
ag
er
s
an
d
sh
ar
eh
ol
d
er
s;
bu
t
co
n
fl
ic
ts
of
in
te
re
st
ca
n
al
so
ex
is
t

be
tw
ee
n
sh
ar
eh
ol
d
er
s
an
d
bo
n
d
h
ol
d
er
s.

T
h
e
sh
ar
eh
ol
d
er
s
ar
e
in
d
iv
id
u
al
s
or
in
st
it
u
ti
on
s
th
at
le
ga
ll
y
ow
n

sh
ar
es
of
st
oc
k
in
th
e
co
rp
or
at
io
n
,w
h
il
e
th
e
bo
n
d
h
ol
d
er
s
ar
e
th
e

fi
rm
’s
cr
ed
it
or
s.
T
h
e
tw
o
p
ar
ti
es
h
av
e
d
if
fe
re
n
t
re
la
ti
on
sh
ip
s
to
th
e

co
m
p
an
y,
ac
co
m
p
an
ie
d
by
d
if
fe
re
n
t
ri
gh
ts
an
d
fi
n
an
ci
al
re
tu
rn
s.

F
or
ex
am
p
le
,s
to
ck
h
ol
d
er
s
h
av
e
an
in
ce
n
ti
ve
to
ta
ke
ri
sk
ie
r
p
ro
je
ct
s

th
an
bo
n
d
h
ol
d
er
s
d
o
(F
ig
u
re
1.
27
),
as
bo
n
d
h
ol
d
er
s
ar
e
m
or
e

in
te
re
st
ed
in
st
ra
te
gi
es
th
at
w
il
li
n
cr
ea
se
th
e
ch
an
ce
s
of
ge
tt
in
g
th
ei
r

in
ve
st
m
en
t
ba
ck
.S
h
ar
eh
ol
d
er
s
al
so
p
re
fe
r
th
at
th
e
co
m
p
an
y
p
ay

m
or
e
ou
t
in
d
iv
id
en
d
s
th
an
bo
n
d
h
ol
d
er
s
w
ou
ld
li
ke
.S
h
ar
eh
ol
d
er
s

h
av
e
vo
ti
n
g
ri
gh
ts
at
ge
n
er
al
m
ee
ti
n
gs
,w
h
il
e
bo
n
d
h
ol
d
er
s
d
o
n
ot
.I
f

th
er
e
is
n
o
p
ro
fi
t,
th
e
sh
ar
eh
ol
d
er
d
oe
s
n
ot
re
ce
iv
e
a
d
iv
id
en
d
,w
h
il
e

in
te
re
st
is
p
ai
d
to
d
eb
en
tu
re
-h
ol
d
er
s
re
ga
rd
le
ss
of
w
h
et
h
er
or
n
ot
a

p
ro
fi
t
h
as
be
en
m
ad
e.
O
th
er
co
n
fl
ic
ts
of
in
te
re
st
ca
n
st
em
fr
om
th
e

fa
ct
th
at
bo
n
d
s
of
te
n
h
av
e
a
d
ef
in
ed
te
rm
,o
r
m
a
tu
ri
ty
,a
ft
er
w
h
ic
h

th
e
bo
n
d
is
re
d
ee
m
ed
,w
h
er
ea
s
st
oc
ks
m
ay
be
ou
ts
ta
n
d
in
g

in
d
ef
in
it
el
y
bu
t
ca
n
al
so
be
so
ld
at
an
y
p
oi
n
t.

B
ec
au
se
bo
n
d
h
ol
d
er
s
kn
ow
th
is
,t
h
ey
m
ay
cr
ea
te
ex
-a
n
te
co
n
tr
ac
ts

p
ro
h
ib
it
in
g
th
e
m
an
ag
em
en
t
fr
om
ta
ki
n
g
on
ve
ry
ri
sk
y
p
ro
je
ct
s
th
at

m
ig
h
t
ar
is
e,
or
th
ey
m
ay
ra
is
e
th
e
in
te
re
st
ra
te
d
em
an
d
ed
,

in
cr
ea
si
n
g
th
e
co
st
of
ca
p
it
al
fo
r
th
e
co
m
p
an
y.
F
or
ex
am
p
le
,l
oa
n

co
ve
n
an
ts
ca
n
be
p
u
t
in
p
la
ce
to
co
n
tr
ol
th
e
ri
sk
p
ro
fi
le
of
a
lo
an
,

re
qu
ir
in
g
th
e
bo
rr
ow
er
to
fu
lf
il
lc
er
ta
in
co
n
d
it
io
n
s
or
fo
rb
id
d
in
g
th
e

bo
rr
ow
er
fr
om
u
n
d
er
ta
ki
n
g
ce
rt
ai
n
ac
ti
on
s
as
a
co
n
d
it
io
n
of
th
e

lo
an
.T
h
is
ca
n
n
eg
at
iv
el
y
im
p
ac
t
th
e
sh
ar
eh
ol
d
er
s.
C
on
ve
rs
el
y,

69

Th
e
b
ul
lo

n
W
al
lS

tr
ee

t
is
an

ic
on

ic
im

ag
e
of

th
e
N
ew

Yo
rk

S
to
ck

E
xc

ha
ng

e.

Fi
g
ur
e
1.
27

W
al
lS
tr
ee
t
b
ul
l

sh
ar
eh
ol
d
er
p
re
fe
re
n
ce
s—
as
fo
r
ex
am
p
le
ri
sk
ie
r
st
ra
te
gi
es
fo
r

gr
ow
th

ca
n
ad
ve
rs
el
y
im
p
ac
t
bo
n
d
h
ol
d
er
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
g
en
cy
-a
n
d
-c
on
fl
ic
ts
-o
f-
in
te
re
st
/

sh
a
re
ho
ld
er
s-
co
n
fl
ic
ts
-w
it
h-
bo
n
d
ho
ld
er
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

70

C
as

h

D
eb

t

S
to
ck

s

Se
ct
io
n
8

A
ss
et

C
la
ss
es

71

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
as

se
t-
cl
as

se
s/

C
as

h
C
as

h,
th
e
m
os

t
liq

ui
d
as

se
t,
re
fe
rs

to
p
hy

si
ca

lc
ur
re
nc

y
su

ch
as

b
an

kn
ot
es

an
d
co

in
s.

K
E
Y
P
O
IN
TS


C
as
h
re
fe
rs
to
p
h
ys
ic
al
cu
rr
en
cy
su
ch
as
ba
n
kn
ot
es
an
d
co
in
s.


C
as
h
h
as
n
ow
be
co
m
e
a
ve
ry
sm
al
lp
ar
t
of
th
e
m
on
ey
su
p
p
ly
.


A
bu
si
n
es
s
op
er
at
in
g
en
ti
re
ly
in
ca
sh
ca
n
m
ea
su
re
it
s
p
ro
fi
ts

by
w
it
h
d
ra
w
in
g
th
e
en
ti
re
ba
n
k
ba
la
n
ce
at
th
e
en
d
of
th
e

p
er
io
d
,p
lu
s
an
y
ca
sh
in
h
an
d
.


C
as
h
an
d
ca
sh
eq
u
iv
al
en
ts
ar
e
th
e
m
os
t
li
qu
id
as
se
ts
fo
u
n
d

w
it
h
in
th
e
as
se
t
p
or
ti
on
of
a
co
m
p
an
y’
s
ba
la
n
ce
sh
ee
t.

C
a
sh

In
co
m
m
on
la
n
gu
ag
e,
ca
sh
re
fe
rs
to
p
h
ys
ic
al
cu
rr
en
cy
su
ch
as

ba
n
kn
ot
es
an
d
co
in
s.
(F
ig
u
re
1.
28
)

In
bo
ok
ke
ep
in
g
an
d
fi
n
an
ce
,c
as
h
re
fe
rs
to
cu
rr
e
n
t
a
ss
e
ts

co
m
p
ri
si
n
g
cu
rr
en
cy
or
cu
rr
en
cy
eq
u
iv
al
en
ts
th
at
ca
n
be
ac
ce
ss
ed

im
m
ed
ia
te
ly
or
n
ea
r-
im
m
ed
ia
te
ly
(a
s
in
th
e
ca
se
of
m
o
n
e
y

m
a
rk
e
t
ac
co
u
n
ts
).
C
as
h
is
vi
ew
ed
ei
th
er
as
a
re
se
rv
e
fo
r
p
ay
m
en
ts
,

in
ca
se
of
a
st
ru
ct
u
ra
lo
r
in
ci
d
en
ta
ln
eg
at
iv
e
ca
sh
fl
ow
,o
r
as
a
w
ay
to

av
oi
d
a
d
ow
n
tu
rn
in
fi
n
an
ci
al
m
ar
ke
ts
.

C
as
h
h
as
n
ow
be
co
m
e
a
ve
ry
sm
al
lp
ar
t
of
th
e
m
o
n
e
y
su
p
p
ly
.I
ts

re
m
ai
n
in
g
ro
le
is
to
p
ro
vi
d
e
a
fo
rm
of
cu
rr
en
cy
st
or
ag
e
an
d
p
ay
m
en
t

fo
r
th
os
e
w
h
o
d
o
n
ot
w
is
h
to
ta
ke
p
ar
t
in
ot
h
er
sy
st
em
s,
an
d
p
re
fe
r

to
m
ak
e
sm
al
lp
ay
m
en
ts
co
n
ve
n
ie
n
tl
y
an
d
p
ro
m
p
tl
y.
T
h
is
la
tt
er

m
et
h
od
,h
ow
ev
er
,i
s
be
in
g
re
p
la
ce
d
m
or
e
an
d
m
or
e
fr
eq
u
en
tl
y
by

el
ec
tr
on
ic
p
ay
m
en
t
sy
st
em
s.

A
bu
si
n
es
s
op
er
at
in
g
en
ti
re
ly
in
ca
sh
ca
n
m
ea
su
re
it
s
p
ro
fi
ts
by

w
it
h
d
ra
w
in
g
th
e
en
ti
re
ba
n
k
ba
la
n
ce
at
th
e
en
d
of
th
e
p
er
io
d
,p
lu
s

an
y
ca
sh
in
h
an
d
.H
ow
ev
er
,m
an
y
bu
si
n
es
se
s
ar
e
n
ot
p
ai
d

im
m
ed
ia
te
ly
;t
h
ey
bu
il
d
u
p
in
ve
n
to
ri
es
of
go
od
s
an
d
th
ey
ac
qu
ir
e

bu
il
d
in
gs
an
d
eq
u
ip
m
en
t.
In
ot
h
er
w
or
d
s,
be
ca
u
se
bu
si
n
es
se
s
h
av
e

as
se
ts
,t
h
ey
ca
n
n
ot
im
m
ed
ia
te
ly
tu
rn
th
em
in
to
ca
sh
at
th
e
en
d
of

ea
ch
p
er
io
d
.O
ft
en
,t
h
es
e
bu
si
n
es
se
s
ow
e
m
on
ey
to
su
p
p
li
er
s
an
d
to

ta
x
au
th
or
it
ie
s,
an
d
th
e
p
ro
p
ri
et
or
s
d
o
n
ot
w
it
h
d
ra
w
al
lt
h
ei
r

or
ig
in
al
ca
p
it
al
an
d
p
ro
fi
ts
at
th
e
en
d
of
ea
ch
p
er
io
d
.T
h
is
m
ea
n
s

th
at
bu
si
n
es
se
s
al
so
h
av
e
li
ab
il
it
ie
s.
C
as
h
an
d
ca
sh
e
q
u
iv
a
le
n
ts

ca
n
be
u
se
d
to
p
ay
th
e
sh
or
t-
te
rm
d
eb
t
of
a
co
m
p
an
y.

72

C
as

h
is
th
e
m
os

t
liq

ui
d
as

se
t
w
ith

in
a

b
us

in
es

s.

Fi
g
ur
e
1.
28

C
as
h

C
a
sh
a
n
d
ca
sh
e
q
u
iv
a
le
n
ts

C
as
h
an
d
ca
sh
eq
u
iv
al
en
ts
ar
e
th
e
m
os
t
li
qu
id
as
se
ts
fo
u
n
d
w
it
h
in

th
e
as
se
t
p
or
ti
on
of
a
co
m
p
an
y’
s
b
a
la
n
ce
sh
e
e
t.
C
as
h
eq
u
iv
al
en
ts

ar
e
as
se
ts
th
at
ar
e
re
ad
il
y
co
n
ve
rt
ib
le
in
to
ca
sh
,s
u
ch
as
m
on
ey

m
ar
ke
t
h
ol
d
in
gs
,s
h
or
t-
te
rm
go
ve
rn
m
en
t
bo
n
d
s
or
tr
e
a
su
ry
b
il
ls
,

m
ar
ke
ta
bl
e
se
cu
ri
ti
es
,a
n
d
co
m
m
e
rc
ia
l
p
a
p
e
r.
C
as
h
eq
u
iv
al
en
ts

ar
e
d
is
ti
n
gu
is
h
ed
fr
om
ot
h
er
in
ve
st
m
en
ts
th
ro
u
gh
th
ei
r
sh
or
t-
te
rm

ex
is
te
n
ce
;t
h
ey
m
at
u
re
w
it
h
in
3
m
on
th
s,
w
h
er
ea
s
sh
or
t-
te
rm

in
ve
st
m
en
ts
ta
ke
12
m
on
th
s
or
le
ss
an
d
lo
n
g-
te
rm
in
ve
st
m
en
ts
ta
ke

lo
n
ge
r
th
an
12
m
on
th
s.
C
as
h
eq
u
iv
al
en
t
in
ve
st
m
en
ts
sh
ou
ld
al
so

h
av
e
an
in
si
gn
if
ic
an
t
ri
sk
of
ch
an
ge
in
va
lu
e:
fo
r
ex
am
p
le
,

co
m
m
o
n
st
o
ck
ca
n
n
ot
be
co
n
si
d
er
ed
a
ca
sh
eq
u
iv
al
en
t,
bu
t

p
re
fe
rr
e
d
st
o
ck
ac
qu
ir
ed
sh
or
tl
y
be
fo
re
it
s
re
d
em
p
ti
on
d
at
e
ca
n
.

M
o
n
e
y

M
on
ey
is
an
y
ob
je
ct
or
re
co
rd
th
at
is
ge
n
er
al
ly
ac
ce
p
te
d
as
p
ay
m
en
t

fo
r
go
od
s
an
d
se
rv
ic
es
an
d
re
p
ay
m
en
t
of
d
eb
ts
in
a
gi
ve
n

so
ci
o
e
co
n
o
m
ic
co
n
te
xt
or
co
u
n
tr
y.
T
h
e
m
ai
n
fu
n
ct
io
n
s
of
m
on
ey

ca
n
be
d
ef
in
ed
as
fo
ll
ow
s:
a
m
ed
iu
m
of
ex
ch
an
ge
;a
u
n
it
of
ac
co
u
n
t;

a
st
or
e
of
va
lu
e;
an
d
oc
ca
si
on
al
ly
,i
n
th
e
p
as
t,
a
st
an
d
ar
d
of

d
e
fe
rr
e
d
p
ay
m
en
t.
A
n
y
ki
n
d
of
ob
je
ct
or
se
cu
re
ve
ri
fi
ab
le
re
co
rd

th
at
fu
lf
il
ls
th
es
e
fu
n
ct
io
n
s
ca
n
se
rv
e
as
m
on
ey
.

B
a
n
k
n
o
te

A
ba
n
kn
ot
e
(o
ft
en
kn
ow
n
as
a
bi
ll
,p
ap
er
m
on
ey
,o
r
si
m
p
ly
a
n
ot
e)
is

a
ty
p
e
of
n
eg
ot
ia
bl
e
in
st
ru
m
en
t
kn
ow
n
as
a
p
ro
m
is
so
ry
n
ot
e,
m
ad
e

by
a
ba
n
k,
p
ay
ab
le
to
th
e
be
ar
er
on
d
em
an
d
.W
h
en
ba
n
kn
ot
es
w
er
e

fi
rs
t
in
tr
od
u
ce
d
,t
h
ey
w
er
e,
in
ef
fe
ct
,a
p
ro
m
is
e
to
p
ay
th
e
be
ar
er
in

co
in
s,
bu
t
gr
ad
u
al
ly
be
ca
m
e
a
su
bs
ti
tu
te
fo
r
th
e
co
in
s
an
d
a
fo
rm
of

m
on
ey
in
th
ei
r
ow
n
ri
gh
t.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
ss
et
-c
la
ss
es
/c
a
sh
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

73

D
eb

t
A
d
eb

t
is

an
ob

lig
at
io
n
ow

ed
b
y
on

e
p
ar
ty

(th
e
d
eb

to
r)

to
a
se

co
nd

p
ar
ty

(th
e
cr
ed

ito
r)
.

K
E
Y
P
O
IN
TS


A
d
eb
t
is
cr
ea
te
d
w
h
en
a
cr
ed
it
or
ag
re
es
to
le
n
d
a
su
m
of

as
se
ts
to
a
d
eb
to
r.
D
eb
t
is
u
su
al
ly
gr
an
te
d
w
it
h
ex
p
ec
te
d

re
p
ay
m
en
t.


T
h
e
va
ri
ou
s
ty
p
es
of
d
eb
t
ca
n
ge
n
er
al
ly
be
ca
te
go
ri
ze
d
in
to
:1
)

se
cu
re
d
an
d
u
n
se
cu
re
d
d
eb
t,
2)
p
ri
va
te
an
d
p
u
bl
ic
d
eb
t,
3)

sy
n
d
ic
at
ed
an
d
bi
la
te
ra
ld
eb
t,
an
d
4)
ot
h
er
ty
p
es
of
d
eb
t
th
at

d
is
p
la
y
on
e
or
m
or
e
of
th
e
ch
ar
ac
te
ri
st
ic
s
n
ot
ed
ab
ov
e.


D
eb
t
al
lo
w
s
p
eo
p
le
an
d
or
ga
n
iz
at
io
n
s
to
d
o
th
in
gs
th
at
th
ey

w
ou
ld
ot
h
er
w
is
e
n
ot
be
ab
le
,o
r
al
lo
w
ed
,t
o
d
o.

D
e
b
t

A
d
eb
t
is
an
ob
li
ga
ti
on
ow
ed
by
on
e
p
ar
ty
(t
h
e
d
eb
to
r)
to
a
se
co
n
d

p
ar
ty
(t
h
e
cr
ed
it
or
).
D
eb
t
u
su
al
ly
re
fe
rs
to
as
se
ts
gr
an
te
d
by
th
e

cr
ed
it
or
to
th
e
d
eb
to
r,
bu
t
th
e
te
rm
ca
n
al
so
be
u
se
d
m
et
ap
h
or
ic
al
ly

to
co
ve
r
m
or
al
ob
li
ga
ti
on
s
an
d
ot
h
er
in
te
ra
ct
io
n
s
n
ot
ba
se
d
on

ec
on
om
ic
va
lu
e.

A
d
eb
t
is
cr
ea
te
d
w
h
en
a
cr
ed
it
or
ag
re
es
to
le
n
d
a
su
m
of
as
se
ts
to
a

d
eb
to
r.
D
eb
t
is
u
su
al
ly
gr
an
te
d
w
it
h
ex
p
ec
te
d
re
p
ay
m
en
t.
In

m
od
er
n
so
ci
et
y,
th
is
ty
p
ic
al
ly
in
cl
u
d
es
re
p
ay
m
en
t
of
th
e
or
ig
in
al

su
m
,p
lu
s
in
te
re
st
.

In
fi
n
an
ce
,d
eb
t
is
a
m
ea
n
s
of
u
si
n
g
an
ti
ci
p
at
ed
fu
tu
re
p
u
rc
h
a
si
n
g

p
o
w
e
r
in
th
e
p
re
se
n
t
be
fo
re
it
h
as
ac
tu
al
ly
be
en
ea
rn
ed
.S
om
e

co
m
p
an
ie
s
an
d
co
rp
or
at
io
n
s
u
se
d
eb
t
as
a
p
ar
t
of
th
ei
r
ov
er
al
l

co
rp
or
at
e
fi
n
an
ce
st
ra
te
gy
.

D
eb
t
al
lo
w
s
p
eo
p
le
an
d
or
ga
n
iz
at
io
n
s
to
d
o
th
in
gs
th
at
th
ey
w
ou
ld

ot
h
er
w
is
e
n
ot
be
ab
le
,o
r
al
lo
w
ed
,t
o
d
o.
P
eo
p
le
in
in
d
u
st
ri
al
iz
ed

n
at
io
n
s
co
m
m
on
ly
u
se
it
to
p
u
rc
h
as
e
h
ou
se
s,
ca
rs
,a
n
d
m
an
y
ot
h
er

th
in
gs
to
o
ex
p
en
si
ve
to
bu
y
w
it
h
ca
sh
on
h
an
d
.C
om
p
an
ie
s
al
so
u
se

d
eb
t
in
m
an
y
w
ay
s
to
le
ve
ra
g
e
th
e
in
ve
st
m
en
t
m
ad
e
in
th
ei
r
as
se
ts
,

by
“l
ev
er
ag
in
g”
th
e
re
tu
rn
on
th
ei
r
eq
u
it
y.
T
h
is
le
ve
ra
ge
,t
h
e

p
ro
p
o
rt
io
n
of
d
eb
t
to
eq
u
it
y,
is
co
n
si
d
er
ed
im
p
or
ta
n
t
in

d
et
er
m
in
in
g
th
e
ri
sk
in
es
s
of
an
in
ve
st
m
en
t—
th
e
m
or
e
d
eb
t
p
er

eq
u
it
y,
th
e
ri
sk
ie
r.
F
or
bo
th
co
m
p
an
ie
s
an
d
in
d
iv
id
u
al
s,
th
is

in
cr
ea
se
d
ri
sk
ca
n
le
ad
to
p
oo
r
re
su
lt
s,
as
th
e
co
st
of
se
rv
ic
in
g
th
e

d
eb
t
ca
n
gr
ow
be
yo
n
d
th
e
ab
il
it
y
to
p
ay
d
u
e
to
ei
th
er
ex
te
rn
al
ev
en
ts

(i
n
co
m
e
lo
ss
)
or
in
te
rn
al
d
if
fi
cu
lt
ie
s
(p
oo
r
m
an
ag
em
en
t
of

re
so
u
rc
es
).

T
yp
e
s
o
f
d
e
b
t

A
co
m
p
an
y
u
se
s
va
ri
ou
s
ki
n
d
s
of
d
eb
t
to
fi
n
an
ce
it
s
op
er
at
io
n
s.
T
h
e

va
ri
ou
s
ty
p
es
of
d
eb
t
ca
n
ge
n
er
al
ly
be
ca
te
go
ri
ze
d
in
to
:

74

1)
se
cu
re
d
a
n
d
u
n
se
cu
re
d
d
e
b
t

A
d
eb
t
ob
li
ga
ti
on
is
co
n
si
d
er
ed
se
cu
re
d
if
cr
ed
it
or
s
h
av
e
re
co
u
rs
e
to

th
e
as
se
ts
of
th
e
co
m
p
an
y
on
a
p
ro
p
ri
et
ar
y
ba
si
s
or
ot
h
er
w
is
e
ah
ea
d

of
ge
n
er
al
cl
ai
m
s
ag
ai
n
st
th
e
co
m
p
an
y.
U
n
se
cu
re
d
d
eb
t
co
m
p
ri
se
s

fi
n
an
ci
al
ob
li
ga
ti
on
s,
w
h
er
e
cr
ed
it
or
s
d
o
n
ot
h
av
e
re
co
u
rs
e
to
th
e

as
se
ts
of
th
e
bo
rr
ow
er
to
sa
ti
sf
y
th
ei
r
cl
ai
m
s.

2
)
p
ri
va
te
a
n
d
p
u
b
li
c
d
e
b
t

P
ri
va
te
d
eb
t
in
vo
lv
es
ba
n
k-
lo
an
ty
p
e
ob
li
ga
ti
on
s,
w
h
et
h
er
se
n
io
r
or

m
ez
za
n
in
e.
P
u
bl
ic
d
eb
t
is
a
ge
n
er
al
d
ef
in
it
io
n
co
ve
ri
n
g
al
lt
h
e

fi
n
an
ci
al
in
st
ru
m
en
ts
th
at
ar
e
fr
ee
ly
tr
ad
ea
bl
e
on
a
p
u
bl
ic
ex
ch
an
ge

or
ov
er
th
e
co
u
n
te
r,
w
it
h
fe
w
if
an
y
re
st
ri
ct
io
n
s.

3
)
sy
n
d
ic
a
te
d
a
n
d
b
il
a
te
ra
l
d
e
b
t

A
sy
n
d
ic
at
ed
lo
an
is
a
lo
an
th
at
is
gr
an
te
d
to
co
m
p
an
ie
s
th
at
w
is
h
to

bo
rr
ow
m
or
e
m
on
ey
th
an
an
y
si
n
gl
e
le
n
d
er
is
p
re
p
ar
ed
to
ri
sk
in
a

si
n
gl
e
lo
an
,a
n
am
ou
n
t
u
su
al
ly
in
th
e
m
an
y
m
il
li
on
s
of
d
ol
la
rs
.I
n

su
ch
a
ca
se
,a
sy
n
d
ic
at
e
of
ba
n
ks
ca
n
ea
ch
ag
re
e
to
p
u
t
fo
rw
ar
d
a

p
or
ti
on
of
th
e
p
ri
n
ci
p
al
su
m
.L
oa
n
sy
n
d
ic
at
io
n
is
a
ri
sk

m
an
ag
em
en
t
to
ol
th
at
al
lo
w
s
th
e
le
ad
ba
n
ks
u
n
d
er
w
ri
ti
n
g
th
e
d
eb
t

to
re
d
u
ce
th
ei
r
ri
sk
an
d
fr
ee
u
p
le
n
d
in
g
ca
p
a
ci
ty
.

4
)
o
th
e
r
ty
p
e
s
o
f
d
e
b
t

A
bo
n
d
is
a
d
eb
t
se
cu
ri
ty
is
su
ed
by
ce
rt
ai
n
in
st
it
u
ti
on
s
su
ch
as

co
m
p
an
ie
s
an
d
go
ve
rn
m
en
ts
.A
bo
n
d
en
ti
tl
es
th
e
h
ol
d
er
to

re
p
ay
m
en
t
of
th
e
p
ri
n
ci
p
al
su
m
,p
lu
s
in
te
re
st
.B
on
d
s
ar
e
is
su
ed
to

in
ve
st
or
s
in
a
m
ar
ke
tp
la
ce
w
h
en
an
in
st
it
u
ti
on
w
is
h
es
to
bo
rr
ow

m
on
ey
.B
on
d
s
h
av
e
a
fi
xe
d
li
fe
ti
m
e,
u
su
al
ly
a
n
u
m
be
r
of
ye
ar
s.

So
m
e
lo
n
g-
te
rm
bo
n
d
s,
ca
n
la
st
ov
er
30
ye
ar
s,
th
ou
gh
th
ey
ar
e
le
ss

co
m
m
on
.A
t
th
e
en
d
of
th
e
bo
n
d
‘s
li
fe
th
e
m
on
ey
sh
ou
ld
be
re
p
ai
d

in
fu
ll
.I
n
te
re
st
m
ay
be
ad
d
ed
to
th
e
en
d
p
ay
m
en
t
or
ca
n
be
p
ai
d
in

re
gu
la
r
in
st
al
lm
en
ts
(k
n
ow
n
as
co
u
p
on
s)
d
u
ri
n
g
th
e
li
fe
of
th
e
bo
n
d
.

75

Tr
ea

su
ry

b
ill
s
ar
e
on

e
of

th
e
d
eb

ts
is
su

ed
b
y
go

ve
rn
m
en

ts
.

Fi
g
ur
e
1.
29

T-
b
ill

B
on
d
s
m
ay
be
tr
ad
ed
in
th
e
bo
n
d
m
ar
ke
ts
an
d
ar
e
w
id
el
y
u
se
d
as

re
la
ti
ve
ly
sa
fe
in
ve
st
m
en
ts
in
co
m
p
ar
is
on
to
eq
u
it
y.

B
or
ro
w
in
g
an
d
re
p
ay
m
en
t
ar
ra
n
ge
m
en
ts
li
n
ke
d
to
in
fl
at
io
n
-i
n
d
ex
ed

u
n
it
s
of
ac
co
u
n
t
ar
e
p
os
si
bl
e
an
d
ar
e
u
se
d
in
so
m
e
co
u
n
tr
ie
s.
F
or

ex
am
p
le
,t
h
e
U
S
go
ve
rn
m
en
t
is
su
es
tw
o
ty
p
es
of
in
fl
at
io
n
-i
n
d
ex
ed

bo
n
d
s,
T
re
as
u
ry
In
fl
at
io
n
-P
ro
te
ct
ed
Se
cu
ri
ti
es
(T
IP
S
)
an
d
I-
bo
n
d
s.

In
fl
at
io
n
-i
n
d
ex
ed
d
eb
t
is
on
e
of
th
e
sa
fe
st
fo
rm
s
of
in
ve
st
m
en
t

av
ai
la
bl
e,
si
n
ce
th
e
on
ly
m
aj
or
so
u
rc
e
of
ri
sk

th
at
of
in
fl
at
io
n

is

el
im
in
at
ed
.A
n
u
m
be
r
of
ot
h
er
go
ve
rn
m
en
ts
is
su
e
si
m
il
ar
bo
n
d
s,

w
it
h
so
m
e
d
oi
n
g
so
fo
r
m
an
y
ye
ar
s
be
fo
re
th
e
U
S
go
ve
rn
m
en
t.
In

co
u
n
tr
ie
s
w
it
h
co
n
si
st
en
tl
y
h
ig
h
in
fl
at
io
n
,o
rd
in
ar
y
bo
rr
ow
in
gs
at

ba
n
ks
m
ay
al
so
be
in
fl
at
io
n
in
d
ex
ed
.(
F
ig
u
re
1.
29
)

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
ss
et
-c
la
ss
es
/d
eb
t/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

S
to
ck

s
Th

e
ca

p
ita

ls
to
ck

(o
r
st
oc

k)
of

a
b
us

in
es

s
en

tit
y

re
p
re
se

nt
s
th
e
or
ig
in
al

ca
p
ita

lp
ai
d
in
to

or
in
ve

st
ed

in
th
e
b
us

in
es

s
b
y
its

fo
un

d
er
s.

K
E
Y
P
O
IN
TS


T
h
e
ca
p
it
al
st
oc
k
(o
r
st
oc
k)
of
a
bu
si
n
es
s
en
ti
ty
re
p
re
se
n
ts
th
e

or
ig
in
al
ca
p
it
al
p
ai
d
in
to
or
in
ve
st
ed
in
th
e
bu
si
n
es
s
by
it
s

fo
u
n
d
er
s.
It
se
rv
es
as
a
se
cu
ri
ty
fo
r
th
e
cr
ed
it
or
s
of
a
bu
si
n
es
s

si
n
ce
it
ca
n
n
ot
be
w
it
h
d
ra
w
n
to
th
e
d
et
ri
m
en
t
of
th
e

cr
ed
it
or
s.


St
oc
k
ty
p
ic
al
ly
ta
ke
s
th
e
fo
rm
of
sh
ar
es
of
ei
th
er
co
m
m
on

st
oc
k
or
p
re
fe
rr
ed
st
oc
k.


A
s
a
u
n
it
of
ow
n
er
sh
ip
,c
om
m
on
st
oc
k
ty
p
ic
al
ly
ca
rr
ie
s
vo
ti
n
g

ri
gh
ts
th
at
ca
n
be
ex
er
ci
se
d
in
co
rp
or
at
e
d
ec
is
io
n
s;
P
re
fe
rr
ed

st
oc
k
d
if
fe
rs
fr
om
co
m
m
on
st
oc
k
in
th
at
it
ty
p
ic
al
ly
d
oe
s
n
ot

ca
rr
y
vo
ti
n
g
ri
gh
ts
bu
t
is
le
ga
ll
y
en
ti
tl
ed
to
re
ce
iv
e
a
ce
rt
ai
n

le
ve
lo
fd
iv
id
en
d
p
ay
m
en
ts
be
fo
re
an
y
d
iv
id
en
d
s
ca
n
be

is
su
ed
to
ot
h
er
sh
ar
eh
ol
d
er
s.


In
ge
n
er
al
,t
h
e
sh
ar
es
of
a
co
m
p
an
y
m
ay
be
tr
an
sf
er
re
d
fr
om

sh
ar
eh
ol
d
er
s
to
ot
h
er
p
ar
ti
es
by
sa
le
or
ot
h
er
m
ec
h
an
is
m
s,

u
n
le
ss
p
ro
h
ib
it
ed
.

76

S
to
ck

T
h
e
ca
p
it
al
st
oc
k
(o
r
st
oc
k)
of
a
bu
si
n
es
s
en
ti
ty
re
p
re
se
n
ts
th
e

or
ig
in
al
ca
p
it
al
p
ai
d
in
to
or
in
ve
st
ed
in
th
e
bu
si
n
es
s
by
it
s
fo
u
n
d
er
s.

It
se
rv
es
as
a
se
cu
ri
ty
fo
r
th
e
cr
ed
it
or
s
of
a
bu
si
n
es
s
si
n
ce
it
ca
n
n
ot

be
w
it
h
d
ra
w
n
to
th
e
d
et
ri
m
en
t
of
th
e
cr
ed
it
or
s.
St
oc
k
is
d
if
fe
re
n
t

fr
om
th
e
p
ro
p
er
ty
an
d
th
e
as
se
ts
of
a
bu
si
n
es
s
w
h
ic
h
m
ay
fl
u
ct
u
at
e

in
qu
an
ti
ty
an
d
va
lu
e.

T
h
e
st
oc
k
of
a
bu
si
n
es
s
is
d
iv
id
ed
in
to
m
u
lt
ip
le
sh
ar
es
,t
h
e
to
ta
lo
f

w
h
ic
h
m
u
st
be
st
at
ed
at
th
e
ti
m
e
of
bu
si
n
es
s
fo
rm
at
io
n
.G
iv
en
th
e

to
ta
la
m
ou
n
t
of
m
on
ey
in
ve
st
ed
in
th
e
bu
si
n
es
s,
a
sh
ar
e
h
as
a

ce
rt
ai
n
d
ec
la
re
d
fa
ce
va
lu
e,
co
m
m
on
ly
kn
ow
n
as
th
e
p
a
r
va
lu
e
of
a

sh
ar
e.
T
h
e
p
a
r
va
lu
e
is
th
e
d
e
m
in
im
is
(m
in
im
u
m
)
am
ou
n
t
of

m
on
ey
th
at
a
bu
si
n
es
s
m
ay
is
su
e
an
d
se
ll
sh
ar
es
fo
r
in
m
an
y

ju
ri
sd
ic
ti
on
s
an
d
it
is
th
e
va
lu
e
re
p
re
se
n
te
d
as
ca
p
it
al
in
th
e

ac
co
u
n
ti
n
g
of
th
e
bu
si
n
es
s.
In
ot
h
er
ju
ri
sd
ic
ti
on
s,
h
ow
ev
er
,s
h
ar
es

m
ay
n
ot
h
av
e
an
as
so
ci
at
ed
p
ar
va
lu
e
at
al
l.
Su
ch
st
oc
k
is
of
te
n

ca
ll
ed
n
on
-p
ar
st
oc
k.
Sh
ar
es
re
p
re
se
n
t
a
fr
ac
ti
on
of
ow
n
er
sh
ip
in
a

bu
si
n
es
s.
A
bu
si
n
es
s
m
ay
d
ec
la
re
d
if
fe
re
n
t
ty
p
es
(c
la
ss
es
)
of
sh
ar
es
,

ea
ch
h
av
in
g
d
is
ti
n
ct
iv
e
ow
n
er
sh
ip
ru
le
s,
p
ri
vi
le
ge
s,
or
sh
ar
e
va
lu
es
.

T
yp
e
s
o
f
st
o
ck

St
oc
k
ty
p
ic
al
ly
ta
ke
s
th
e
fo
rm
of
sh
ar
es
of
ei
th
er
co
m
m
on
st
oc
k
or

p
re
fe
rr
ed
st
oc
k.


A
s
a
u
n
it
of
ow
n
er
sh
ip
,c
om
m
on
st
oc
k
ty
p
ic
al
ly
ca
rr
ie
s
vo
ti
n
g

ri
gh
ts
th
at
ca
n
be
ex
er
ci
se
d
in
co
rp
or
at
e
d
ec
is
io
n
s.


P
re
fe
rr
ed
st
oc
k
d
if
fe
rs
fr
om
co
m
m
on
st
oc
k
in
th
at
it
ty
p
ic
al
ly

d
oe
s
n
ot
ca
rr
y
vo
ti
n
g
ri
gh
ts
bu
t
is
le
ga
ll
y
en
ti
tl
ed
to
re
ce
iv
e
a

ce
rt
ai
n
le
ve
lo
fd
iv
id
en
d
p
ay
m
en
ts
be
fo
re
an
y
d
iv
id
en
d
s
ca
n
be

is
su
ed
to
ot
h
er
sh
ar
eh
ol
d
er
s.


C
o
n
ve
rt
ib
le
p
re
fe
rr
e
d
st
o
ck
is
p
re
fe
rr
ed
st
oc
k
th
at

in
cl
u
d
es
an
op
ti
on
fo
r
th
e
h
ol
d
er
to
co
n
ve
rt
th
e
p
re
fe
rr
ed

sh
ar
es
in
to
a
fi
xe
d
n
u
m
be
r
of
co
m
m
on
sh
ar
es
,u
su
al
ly
an
y

ti
m
e
af
te
r
a
p
re
d
et
er
m
in
ed
d
at
e.
Sh
ar
es
of
su
ch
st
oc
k
ar
e

ca
ll
ed
“c
on
ve
rt
ib
le
p
re
fe
rr
ed
sh
ar
es
“.

N
ew
eq
u
it
y
is
su
es
m
ay
h
av
e
sp
ec
if
ic
le
ga
lc
la
u
se
s
at
ta
ch
ed
th
at

d
if
fe
re
n
ti
at
e
th
em
fr
om
p
re
vi
ou
s
is
su
es
of
th
e
is
su
er
.S
om
e
sh
ar
es

of
co
m
m
on
st
oc
k
m
ay
be
is
su
ed
w
it
h
ou
t
th
e
ty
p
ic
al
vo
ti
n
g
ri
gh
ts
,

fo
r
in
st
an
ce
,o
r
so
m
e
sh
ar
es
m
ay
h
av
e
sp
ec
ia
lr
ig
h
ts
u
n
iq
u
e
to
th
em

an
d
is
su
ed
on
ly
to
ce
rt
ai
n
p
ar
ti
es
.O
ft
en
,n
ew
is
su
es
th
at
h
av
e
n
ot

be
en
re
gi
st
er
ed
w
it
h
a
se
cu
ri
ti
es
go
ve
rn
in
g
bo
d
y
m
ay
be
re
st
ri
ct
ed

fr
om
re
sa
le
fo
r
ce
rt
ai
n
p
er
io
d
s
of
ti
m
e.

P
re
fe
rr
ed
st
oc
k
m
ay
be
h
yb
ri
d
by
h
av
in
g
th
e
qu
al
it
ie
s
of
bo
n
d
s
of

fi
xe
d
re
tu
rn
s
an
d
co
m
m
on
st
oc
k
vo
ti
n
g
ri
gh
ts
.T
h
ey
al
so
h
av
e

p
re
fe
re
n
ce
in
th
e
p
ay
m
en
t
of
d
iv
id
en
d
s
ov
er
co
m
m
on
st
oc
k
an
d
al
so

h
av
e
be
en
gi
ve
n
p
re
fe
re
n
ce
at
th
e
ti
m
e
of
li
q
u
id
a
ti
o
n
ov
er

co
m
m
on
st
oc
k.
T
h
ey
h
av
e
ot
h
er
fe
at
u
re
s
of
ac
cu
m
u
la
ti
on
in

77

d
iv
id
en
d
.I
n
ad
d
it
io
n
,p
re
fe
rr
ed
st
oc
k
u
su
al
ly
co
m
es
w
it
h
a
le
tt
er

d
es
ig
n
at
io
n
at
th
e
en
d
of
th
e
se
cu
ri
ty
.T
h
is
ex
tr
a
le
tt
er
d
oe
s
n
ot

m
ea
n
th
at
an
y
ex
cl
u
si
ve
ri
gh
ts
ex
is
t
fo
r
th
e
sh
ar
eh
ol
d
er
s
bu
t
it
d
oe
s

le
t
in
ve
st
or
s
kn
ow
th
at
th
e
sh
ar
es
ar
e
co
n
si
d
er
ed
fo
r
su
ch
,h
ow
ev
er
,

th
es
e
ri
gh
ts
or
p
ri
vi
le
ge
s
m
ay
ch
an
ge
ba
se
d
on
th
e
d
ec
is
io
n
s
m
ad
e

by
th
e
u
n
d
er
ly
in
g
co
m
p
an
y.

A
p
p
li
ca
ti
o
n

T
h
e
ow
n
er
s
of
a
p
ri
va
te
co
m
p
an
y
m
ay
w
an
t
ad
d
it
io
n
al
ca
p
it
al
to

in
ve
st
in
n
ew
p
ro
je
ct
s
w
it
h
in
th
e
co
m
p
an
y.
T
h
ey
m
ay
al
so
si
m
p
ly

w
is
h
to
re
d
u
ce
th
ei
r
h
ol
d
in
g,
fr
ee
in
g
u
p
ca
p
it
al
fo
r
th
ei
r
ow
n
p
ri
va
te

u
se
.T
h
ey
ca
n
ac
h
ie
ve
th
es
e
go
al
s
by
se
ll
in
g
sh
ar
es
in
th
e
co
m
p
an
y

to
th
e
ge
n
er
al
p
u
bl
ic
,t
h
ro
u
gh
a
sa
le
on
a
st
oc
k
ex
ch
an
ge
.T
h
is

p
ro
ce
ss
is
ca
ll
ed
an
in
it
ia
l
p
u
b
li
c
o
ff
e
ri
n
g
,o
r
IP
O
.

B
y
se
ll
in
g
sh
ar
es
th
ey
ca
n
se
ll
p
ar
t
or
al
lo
ft
h
e
co
m
p
an
y
to
m
an
y

p
ar
t-
ow
n
er
s.
T
h
e
p
u
rc
h
as
e
of
on
e
sh
ar
e
en
ti
tl
es
th
e
ow
n
er
of
th
at

sh
ar
e
to
li
te
ra
ll
y
sh
ar
e
in
th
e
ow
n
er
sh
ip
of
th
e
co
m
p
an
y,
a
fr
ac
ti
on

of
th
e
d
ec
is
io
n
-m
ak
in
g
p
ow
er
,a
n
d
p
ot
en
ti
al
ly
a
fr
ac
ti
on
of
th
e

p
ro
fi
ts
,w
h
ic
h
th
e
co
m
p
an
y
m
ay
is
su
e
as
d
iv
id
en
d
s.

T
ra
d
in
g

In
ge
n
er
al
,t
h
e
sh
ar
es
of
a
co
m
p
an
y
m
ay
be
tr
an
sf
er
re
d
fr
om

sh
ar
eh
ol
d
er
s
to
ot
h
er
p
ar
ti
es
by
sa
le
or
ot
h
er
m
ec
h
an
is
m
s,
u
n
le
ss

p
ro
h
ib
it
ed
.M
os
t
ju
ri
sd
ic
ti
on
s
h
av
e
es
ta
bl
is
h
ed
la
w
s
an
d
re
gu
la
ti
on
s

go
ve
rn
in
g
su
ch
tr
an
sf
er
s,

p
ar
ti
cu
la
rl
y
if
th
e
is
su
er
is

a
p
u
bl
ic
ly
tr
ad
ed
en
ti
ty
.

T
h
e
d
es
ir
e
of
st
oc
kh
ol
d
er
s

to
tr
ad
e
th
ei
r
sh
ar
es
h
as

le
d
to
th
e
es
ta
bl
is
h
m
en
t
of

st
oc
k
ex
ch
an
ge
s,

or
ga
n
iz
at
io
n
s
w
h
ic
h

p
ro
vi
d
e
m
ar
ke
tp
la
ce
s
fo
r

tr
ad
in
g
sh
ar
es
an
d
ot
h
er

d
er
iv
at
iv
es
an
d
fi
n
an
ci
al

p
ro
d
u
ct
s.
T
od
ay
,s
to
ck

tr
ad
er
s
ar
e
u
su
al
ly

re
p
re
se
n
te
d
by
a
st
oc
kb
ro
ke
r
w
h
o
bu
ys
an
d
se
ll
s
sh
ar
es
of
a
w
id
e

ra
n
ge
of
co
m
p
an
ie
s
on
su
ch
ex
ch
an
ge
s.
A
co
m
p
an
y
m
ay
li
st
it
s

sh
ar
es
on
an
ex
ch
an
ge
by
m
ee
ti
n
g
an
d
m
ai
n
ta
in
in
g
th
e
li
st
in
g

re
qu
ir
em
en
ts
of
a
p
ar
ti
cu
la
r
st
oc
k
ex
ch
an
ge
.I
n
th
e
U
n
it
ed
St
at
es
,

th
ro
u
gh
th
e
in
te
rm
ar
ke
t
tr
ad
in
g
sy
st
em
,s
to
ck
s
li
st
ed
on
on
e

ex
ch
an
ge
ca
n
of
te
n
al
so
be
tr
ad
ed
on
ot
h
er
p
ar
ti
ci
p
at
in
g
ex
ch
an
ge
s,

in
cl
u
d
in
g
el
ec
tr
on
ic
co
m
m
u
n
ic
at
io
n
n
et
w
or
ks
(E
C
N
s)
,s
u
ch
as

A
rc
h
ip
el
ag
o
or
In
st
in
et
(F
ig
u
re
1.
30
).

78

Th
e
p
ric

e
of

a
st
oc

k
u

ct
ua

te
s
fu
nd

am
en

ta
lly

d
ue

to
th
e
th
eo

ry
of

su
p
p
ly
an

d
d
em

an
d
.

Fi
g
ur
e
1.
30

S
to
ck

p
ric
e

E
X
A
M
P
LE

P
re
fe
rr
ed
st
oc
k
u
su
al
ly
co
m
es
w
it
h
a
le
tt
er
d
es
ig
n
at
io
n
at
th
e

en
d
of
th
e
se
cu
ri
ty
;f
or
ex
am
p
le
,B
er
ks
h
ir
e-
H
at
h
aw
ay
C
la
ss
“B

sh
ar
es
se
ll
u
n
d
er
st
oc
k
ti
ck
er
B
R
K
.B
w
h
er
ea
s
C
la
ss
“A

sh
ar
es

of
O
R
IO
N
D
H
C
,I
n
c
w
il
ls
el
lu
n
d
er
ti
ck
er
O
O
D
H
A
u
n
ti
lt
h
e

co
m
p
an
y
d
ro
p
s
th
e
“A

cr
ea
ti
n
g
ti
ck
er
O
O
D
H
fo
r
it
s

“C
om
m
on

sh
ar
es
on
ly
d
es
ig
n
at
io
n
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
a
ss
et
-c
la
ss
es
/s
to
ck
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

79

Ty
p
es

of
Fi
na

nc
ia
lM

ar
ke

ts

R
ol
e
in

C
ap

ita
lA

llo
ca

tio
n

R
ol
e
in

P
ro
vi
d
in
g
Fe

ed
b
ac

k
to

M
an

ag
em

en
t

Tr
en

d
s
in

M
ar
ke

ts

Se
ct
io
n
9

Fi
na

nc
ia
lM

ar
ke

ts

80

ht
tp
s:
//
w
w
w
.b
ou

nd
le
ss
.c
om

/
na

nc
e/
in
tr
od

uc
tio

n-
to
-t
he

-
el
d
-a
nd

-g
oa

ls
-o
f-
n

an
ci
al
-m

an
ag

em
en

t/
n

an
ci
al
-m

ar
ke

ts
/

Ty
p
es

of
Fi
na

nc
ia
lM

ar
ke

ts
Fi
na

nc
ia
lm

ar
ke

ts
ar
e
of

m
an

y
ty
p
es

,i
nc

lu
d
in
g
ge

ne
ra
l

an
d
sp

ec
ia
liz
ed

;c
ap

ita
la

nd
m
on

ey
;a

nd
p
rim

ar
y
an

d
se

co
nd

ar
y.

K
E
Y
P
O
IN
TS


A
fi
n
an
ci
al
m
ar
ke
t
is
an
ag
gr
eg
at
e
of
p
os
si
bl
e
bu
ye
rs
an
d

se
ll
er
s
of
fi
n
an
ci
al
se
cu
ri
ti
es
,c
om
m
od
it
ie
s,
an
d
ot
h
er

fu
n
gi
bl
e
it
em
s,
as
w
el
la
s
th
e
tr
an
sa
ct
io
n
s
be
tw
ee
n
th
em
.


T
h
e
te
rm
“f
in
an
ci
al
m
ar
ke
ts

is
of
te
n
u
se
d
to
re
fe
r
so
le
ly
to

th
e
m
ar
ke
ts
th
at
ar
e
u
se
d
to
ra
is
e
fi
n
an
ce
:f
or
lo
n
g-
te
rm

fi
n
an
ce
,c
ap
it
al
m
ar
ke
ts
ar
e
u
se
d
;f
or
sh
or
t-
te
rm
fi
n
an
ce

(m
at
u
ri
ty
u
p
to
on
e
ye
ar
),
m
on
ey
m
ar
ke
ts
ar
e
u
se
d
.


St
oc
k
m
ar
ke
ts
an
d
bo
n
d
m
ar
ke
ts
ar
e
tw
o
ty
p
es
of
ca
p
it
al

m
ar
ke
ts
th
at
p
ro
vi
d
e
fi
n
an
ci
n
g
th
ro
u
gh
th
e
is
su
in
g
of
sh
ar
es

of
st
oc
k
or
th
e
is
su
in
g
of
bo
n
d
s,
re
sp
ec
ti
ve
ly
.A
ke
y
d
iv
is
io
n

w
it
h
in
th
e
ca
p
it
al
m
ar
ke
ts
is
be
tw
ee
n
th
e
p
ri
m
ar
y
m
ar
ke
ts

an
d
se
co
n
d
ar
y
m
ar
ke
ts
.


W
h
il
e
ca
p
it
al
m
ar
ke
ts
an
d
m
on
ey
m
ar
ke
ts
co
n
st
it
u
te
th
e

n
ar
ro
w
er
d
ef
in
it
io
n
of
fi
n
an
ci
al
m
ar
ke
ts
,o
th
er
m
ar
ke
ts
,s
u
ch

as
d
er
iv
at
iv
es
an
d
cu
rr
en
cy
m
ar
ke
ts
,a
re
of
te
n
in
cl
u
d
ed
in
th
e

m
or
e
ge
n
er
al
se
n
se
of
th
e
w
or
d
.

A
fi
n
an
ci
al
m
ar
ke
t
is
an
ag
gr
eg
at
e
of
p
os
si
bl
e
bu
ye
rs
an
d
se
ll
er
s
of

fi
n
an
ci
al
se
cu
ri
ti
es
,c
om
m
od
it
ie
s,
an
d
ot
h
er
fu
n
gi
bl
e
it
em
s,
as
w
el
l

as
th
e
tr
an
sa
ct
io
n
s
be
tw
ee
n
th
em
.E
xa
m
p
le
s
of
fi
n
an
ci
al
m
ar
ke
ts

in
cl
u
d
e
ca
p
it
al
m
ar
ke
ts
,d
er
iv
at
iv
e
m
ar
ke
ts
,m
on
ey
m
ar
ke
ts
,a
n
d

cu
rr
en
cy
m
ar
ke
ts
.T
h
er
e
ar
e
m
an
y
d
if
fe
re
n
t
w
ay
s
to
d
iv
id
e
an
d

cl
as
si
fy
fi
n
an
ci
al
m
ar
ke
ts
:f
or
ex
am
p
le
,i
n
to
ge
n
er
al
m
ar
ke
ts
an
d

sp
ec
ia
li
ze
d
m
ar
ke
ts
,c
ap
it
al
m
ar
ke
ts
an
d
m
on
ey
m
ar
ke
ts
,a
n
d

p
ri
m
ar
y
an
d
se
co
n
d
a
ry
m
a
rk
e
ts
.

W
it
h
in
th
e
fi
n
an
ci
al
se
ct
or
,t
h
e
te
rm
“f
in
an
ci
al
m
ar
ke
ts

is
of
te
n

u
se
d
to
re
fe
r
so
le
ly
to
th
e
m
ar
ke
ts
th
at
ar
e
u
se
d
to
ra
is
e
fi
n
an
ce
:


fo
r
lo
n
g-
te
rm
fi
n
an
ce
,c
ap
it
al
m
ar
ke
ts
ar
e
u
se
d


fo
r
sh
or
t-
te
rm
fi
n
an
ce
(m
at
u
ri
ty
u
p
to
on
e
ye
ar
),
m
on
ey

m
ar
ke
ts
ar
e
u
se
d
.

St
oc
k
m
ar
ke
ts
(F
ig
u
re
1.
31
)
an
d
bo
n
d
m
ar
ke
ts
ar
e
tw
o
ty
p
es
of

ca
p
it
al
m
ar
ke
ts
th
at
p
ro
vi
d
e
fi
n
an
ci
n
g
th
ro
u
gh
th
e
is
su
in
g
of
sh
ar
es

of
st
oc
k
an
d
th
e
is
su
in
g
of
bo
n
d
s,
re
sp
ec
ti
ve
ly
.A
ke
y
d
iv
is
io
n
w
it
h
in

th
e
ca
p
it
al
m
ar
ke
ts
is
be
tw
ee
n
th
e
p
ri
m
ar
y
m
ar
ke
ts
an
d
se
co
n
d
ar
y

81

Th
e
N
ew

Yo
rk

S
to
ck

E
xc

ha
ng

e
(N
Y
S
E
)i
s
an

ex
ch

an
ge

en
ab

lin
g
a

n
an

ci
al

m
ar
ke

t.

Fi
g
ur
e
1.
31

Th
e
N
ew

Yo
rk
S
to
ck

E
xc
ha
ng
e

m
ar
ke
ts
.N
ew
ly
fo
rm
ed
(i
ss
u
ed
)
se
cu
ri
ti
es
ar
e
bo
u
gh
t
or
so
ld
in

p
ri
m
ar
y
m
ar
ke
ts
,s
u
ch
as
d
u
ri
n
g
in
it
ia
lp
u
bl
ic
of
fe
ri
n
gs
.S
ec
on
d
ar
y

m
ar
ke
ts
ar
e
fo
r
th
e
se
co
n
d
ar
y
tr
ad
e
of
se
cu
ri
ti
es
,p
ro
vi
d
in
g
a

co
n
ti
n
u
ou
s
an
d
re
gu
la
r
m
ar
ke
t
fo
r
th
e
bu
yi
n
g
an
d
se
ll
in
g
of

se
cu
ri
ti
es
.

W
h
il
e
ca
p
it
al
m
ar
ke
ts
an
d
m
on
ey
m
ar
ke
ts
co
n
st
it
u
te
th
e
n
ar
ro
w
er

d
ef
in
it
io
n
of
fi
n
an
ci
al
m
ar
ke
ts
,o
th
er
m
ar
ke
ts
ar
e
of
te
n
in
cl
u
d
ed
in

th
e
m
or
e
ge
n
er
al
se
n
se
of
th
e
w
or
d
.T
h
e
d
er
iv
at
iv
es
m
ar
ke
t
is
th
e

fi
n
an
ci
al
m
ar
ke
t
fo
r
d
er
iv
at
iv
es

fi
n
an
ci
al
in
st
ru
m
en
ts
li
ke
fu
tu
re
s

co
n
tr
ac
ts
or
op
ti
on
s—
w
h
ic
h
ar
e
d
er
iv
ed
fr
om
ot
h
er
fo
rm
s
of
as
se
ts
.

C
u
rr
en
cy
m
ar
ke
ts
,e
n
ab
le
d
by
fo
re
ig
n
ex
ch
an
ge
(o
r
fo
re
x)
m
ar
ke
ts

en
ab
le
cu
rr
en
cy
co
n
ve
rs
io
n
an
d
d
et
er
m
in
e
th
e
re
la
ti
ve
va
lu
e
of

w
or
ld
cu
rr
en
ci
es
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
fi
n
a
n
ci
a
l-
m
a
rk
et
s/
ty
p
es
-o
f-

fi
n
a
n
ci
a
l-
m
a
rk
et
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

R
ol
e
in

C
ap

ita
lA

llo
ca

tio
n

O
ne

of
th
e
m
ai
n
fu
nc

tio
ns

of
n

an
ci
al

m
ar
ke

ts
is

to
al
lo
ca

te
ca

p
ita

l,
m
at
ch

in
g
th
os

e
w
ho

ha
ve

ca
p
ita

lt
o

th
os

e
w
ho

ne
ed

it.

K
E
Y
P
O
IN
TS


O
n
e
of
th
e
m
ai
n
fu
n
ct
io
n
s
of
fi
n
an
ci
al
m
ar
ke
ts
is
to
al
lo
ca
te

ca
p
it
al
.C
ap
it
al
m
ar
ke
ts
es
p
ec
ia
ll
y
fa
ci
li
ta
te
th
e
ra
is
in
g
of

ca
p
it
al
w
h
il
e
m
on
ey
m
ar
ke
ts
fa
ci
li
ta
te
th
e
tr
an
sf
er
of

li
qu
id
it
y,
in
bo
th
ca
se
s
m
at
ch
in
g
th
os
e
w
h
o
h
av
e
ca
p
it
al
to

th
os
e
w
h
o
n
ee
d
it
.


F
in
an
ci
al
m
ar
ke
ts
at
tr
ac
t
fu
n
d
s
fr
om
in
ve
st
or
s
an
d
ch
an
n
el

th
em
to
en
te
rp
ri
se
s
th
at
u
se
th
at
ca
p
it
al
to
fi
n
an
ce
th
ei
r

op
er
at
io
n
s
an
d
ac
h
ie
ve
gr
ow
th
,f
ro
m
st
ar
tu
p
p
h
as
es
to

ex
p
an
si
on

ev
en
m
u
ch
la
te
r
in
th
e
fi
rm
’s
li
fe
.


W
it
h
ou
t
fi
n
an
ci
al
m
ar
ke
ts
,b
or
ro
w
er
s
w
ou
ld
h
av
e
d
if
fi
cu
lt
y

fi
n
d
in
g
le
n
d
er
s
th
em
se
lv
es
.I
n
te
rm
ed
ia
ri
es
su
ch
as
ba
n
ks

h
el
p
in
th
is
p
ro
ce
ss
.B
an
k
d
ep
os
it
s
ar
e
a
si
m
p
le
w
ay
in
w
h
ic
h

ca
p
it
al
is
al
lo
ca
te
d
fr
om
a
p
oo
lo
fs
av
er
s
to
bu
si
n
es
se
s
th
at

w
an
t
to
d
ep
lo
y
it
.


M
or
e
co
m
p
le
x
tr
an
sa
ct
io
n
s
th
an
a
si
m
p
le
ba
n
k
d
ep
os
it

re
qu
ir
e
m
ar
ke
ts
w
h
er
e
le
n
d
er
s
an
d
th
ei
r
ag
en
ts
ca
n
m
ee
t

bo
rr
ow
er
s
an
d
th
ei
r
ag
en
ts
,a
n
d
w
h
er
e
ex
is
ti
n
g
in
st
ru
m
en
ts

ca
n
be
re
so
ld
.O
n
e
ex
am
p
le
be
in
g
a
st
oc
k
ex
ch
an
ge
.

82

In
tr
o
d
u
ct
io
n

A
fi
n
an
ci
al
m
ar
ke
t
is
an
ag
gr
eg
at
e
of
p
os
si
bl
e
bu
ye
rs
an
d
se
ll
er
s
of

fi
n
an
ci
al
se
cu
ri
ti
es
,c
om
m
od
it
ie
s,
an
d
ot
h
er
fu
n
gi
bl
e
it
em
s
an
d
th
e

tr
an
sa
ct
io
n
s
be
tw
ee
n
th
em
(F
ig
u
re
1.
32
).
W
it
h
in
th
e
fi
n
an
ci
al

se
ct
or
,t
h
e
te
rm
“f
in
an
ci
al
m
ar
ke
ts

is
of
te
n
u
se
d
to
re
fe
r
ju
st
to
th
e

m
ar
ke
ts
th
at
ar
e
u
se
d
to
ra
is
e
fi
n
an
ce
:t
h
e
ca
p
it
al
m
ar
ke
ts
fo
r
lo
n
g-

te
rm
fi
n
an
ce
an
d
th
e
m
on
ey
m
ar
ke
ts
fo
r
sh
or
t-
te
rm
fi
n
an
ce

(m
at
u
ri
ty
u
p
to
on
e
ye
ar
).

A
ll
o
ca
ti
n
g
C
a
p
it
a
l

O
n
e
of
th
e
m
ai
n
fu
n
ct
io
n
s
of
fi
n
an
ci
al
m
ar
ke
ts
is
to
al
lo
ca
te
ca
p
it
al
.

C
ap
it
al
m
ar
ke
ts
es
p
ec
ia
ll
y
fa
ci
li
ta
te
th
e
ra
is
in
g
of
ca
p
it
al
w
h
il
e

m
on
ey
m
ar
ke
ts
fa
ci
li
ta
te
th
e
tr
an
sf
er
of
li
q
u
id
it
y,
m
at
ch
in
g
th
os
e

w
h
o
h
av
e
ca
p
it
al
to
th
os
e
w
h
o
n
ee
d
it
.F
in
an
ci
al
m
ar
ke
ts
at
tr
ac
t

fu
n
d
s
fr
om
in
ve
st
or
s
an
d
ch
an
n
el
th
em
to
en
te
rp
ri
se
s
th
at
u
se
th
at

ca
p
it
al
to
fi
n
an
ce
th
ei
r
op
er
at
io
n
s
an
d
ac
h
ie
ve
gr
ow
th
,f
ro
m
st
ar
t-

u
p
p
h
as
es
to
ex
p
an
si
on

ev
en
m
u
ch
la
te
r
in
th
e
fi
rm
’s
li
fe
.M
on
ey

m
ar
ke
ts
al
lo
w
fi
rm
s
to
bo
rr
ow
fu
n
d
s
on
a
sh
or
t-
te
rm
ba
si
s,
w
h
il
e

ca
p
it
al
m
ar
ke
ts
al
lo
w
co
rp
or
at
io
n
s
to
ga
in
lo
n
g-
te
rm
fu
n
d
in
g
to

su
p
p
or
t
ex
p
an
si
on
.

F
u
n
d
s
bo
rr
ow
ed
fr
om
th
e
m
on
ey
m
ar
ke
ts
ar
e
ty
p
ic
al
ly
u
se
d
fo
r

ge
n
er
al
op
er
at
in
g
ex
p
en
se
s,
to
co
ve
r
br
ie
fp
er
io
d
s
of
il
li
qu
id
it
y.

W
h
en
a
co
m
p
an
y
bo
rr
ow
s
fr
om
th
e
p
ri
m
ar
y
ca
p
it
al
m
ar
ke
ts
,o
ft
en

th
e
p
u
rp
os
e
is
to
in
ve
st
in
ad
d
it
io
n
al
p
h
ys
ic
al
ca
p
it
al
go
od
s,
w
h
ic
h

w
il
lb
e
u
se
d
to
h
el
p
in
cr
ea
se
it
s
in
co
m
e.
F
in
an
ci
al
ca
p
it
al
is
m
on
ey

u
se
d
by
en
tr
ep
re
n
eu
rs
an
d
bu
si
n
es
se
s
to
bu
y
w
h
at
th
ey
n
ee
d
to

m
ak
e
th
ei
r
p
ro
d
u
ct
s
or
p
ro
vi
d
e
th
ei
r
se
rv
ic
es
.I
t
ca
n
ta
ke
m
an
y

m
on
th
s
or
ye
ar
s
be
fo
re
th
e
in
ve
st
m
en
t
ge
n
er
at
es
su
ff
ic
ie
n
t
re
tu
rn
to

p
ay
ba
ck
it
s
co
st
,a
n
d
h
en
ce
th
e
fi
n
an
ce
is
lo
n
g-
te
rm
.L
on
g-
te
rm

ca
p
it
al
ca
n
co
m
e
in
th
e
fo
rm
of
sh
ar
ed
ca
p
it
al
,m
or
tg
ag
e
lo
an
s,
an
d

ve
n
tu
re
ca
p
it
a
l,
am
on
g
ot
h
er
ty
p
es
.

W
it
h
ou
t
fi
n
an
ci
al
m
ar
ke
ts
,b
or
ro
w
er
s
w
ou
ld
h
av
e
d
if
fi
cu
lt
y
fi
n
d
in
g

le
n
d
er
s
th
em
se
lv
es
.I
n
te
rm
ed
ia
ri
es
su
ch
as
ba
n
ks
h
el
p
in
th
is

p
ro
ce
ss
.B
an
ks
ta
ke
d
ep
os
it
s
fr
om
th
os
e
w
h
o
h
av
e
m
on
ey
to
sa
ve
.

M
an
y
in
d
iv
id
u
al
s
ar
e
n
ot
aw
ar
e
th
at
th
ey
ar
e
le
n
d
er
s
p
ro
vi
d
in
g

ca
p
it
al
,b
u
t
m
an
y
d
o
le
n
d
m
on
ey
at
le
as
t
in
d
ir
ec
tl
y,
fo
r
ex
am
p
le

w
h
en
th
ey
p
u
t
m
on
ey
in
a
sa
vi
n
gs
ac
co
u
n
t
or
co
n
tr
ib
u
te
to
a

83

Th
e
Fr
an

kf
ur
t
B
on

d
M
ar
ke

t
is
an

ex
am

p
le

of
a

n
an

ci
al

m
ar
ke

t
th
at

al
lo
ca

te
s

ca
p
ita

l.

Fi
g
ur
e
1.
32

Fr
an
kf
ur
t
B
on
d

M
ar
ke
t

p
en
si
on
.I
n
te
rm
ed
ia
ri
es
li
ke
ba
n
ks
ca
n
th
en
le
n
d
m
on
ey
fr
om
th
is

p
oo
lo
fd
ep
os
it
ed
m
on
ey
in
th
e
fo
rm
of
lo
an
s
to
th
os
e
w
h
o
se
ek
to

bo
rr
ow
.M
or
e
co
m
p
le
x
tr
an
sa
ct
io
n
s
th
an
a
si
m
p
le
ba
n
k
d
ep
os
it

re
qu
ir
e
m
ar
ke
ts
w
h
er
e
le
n
d
er
s
an
d
th
ei
r
ag
en
ts
ca
n
m
ee
t
bo
rr
ow
er
s

an
d
th
ei
r
ag
en
ts
,a
n
d
w
h
er
e
ex
is
ti
n
g
bo
rr
ow
in
g
or
le
n
d
in
g

co
m
m
it
m
en
ts
ca
n
be
so
ld
on
to
ot
h
er
p
ar
ti
es
.O
n
e
ex
am
p
le
is
th
e

st
oc
k
ex
ch
an
ge
,w
h
er
e
a
co
m
p
an
y
ca
n
ra
is
e
m
on
ey
by
se
ll
in
g

ow
n
er
sh
ip
sh
ar
es
to
in
ve
st
or
s
an
d
it
s
ex
is
ti
n
g
sh
ar
es
ca
n
be
bo
u
gh
t

or
so
ld
.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
fi
n
a
n
ci
a
l-
m
a
rk
et
s/
ro
le
-i
n

ca
p
it
a
l-
a
ll
oc
a
ti
on
/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

R
ol
e
in

P
ro
vi
d
in
g
Fe

ed
b
ac

k
to

M
an

ag
em

en
t

Fi
na

nc
ia
lm

ar
ke

ts
ca

n
p
ro
vi
d
e
fe
ed

b
ac

k
to

m
an

ag
em

en
t
b
y
sh

ow
in
g
si
gn

al
s
of

th
e
d
em

an
d
to

su
p
p
ly

fu
nd

s
to

th
at

en
te
rp
ris

e.

K
E
Y
P
O
IN
TS


F
in
an
ci
al
m
ar
ke
ts
fu
n
ct
io
n
th
ro
u
gh
th
e
in
te
ra
ct
io
n
of
bu
ye
rs

an
d
se
ll
er
s
th
at
d
et
er
m
in
e
th
e
p
ri
ce
of
tr
ad
ed
as
se
ts
.

F
in
an
ci
al
m
ar
ke
ts
p
ro
vi
d
e
a
si
gn
fo
r
th
e
al
lo
ca
ti
on
of
fu
n
d
s
in

th
e
ec
on
om
y
ba
se
d
on
th
e
d
em
an
d
an
d
su
p
p
ly
th
ro
u
gh
th
e

m
ec
h
an
is
m
ca
ll
ed
th
e
p
ri
ce
d
is
co
ve
ry
p
ro
ce
ss
.


M
an
ag
em
en
t
of
te
n
h
as
im
p
er
fe
ct
in
fo
rm
at
io
n
ab
ou
t
it
s
ow
n

bu
si
n
es
s.
O
n
e
w
ay
in
w
h
ic
h
m
an
ag
er
s
tr
y
to
ga
in
fe
ed
ba
ck
on

th
ei
r
bu
si
n
es
s
is
by
co
n
d
u
ct
in
g
m
ar
ke
t
re
se
ar
ch
.F
in
an
ci
al

m
ar
ke
ts
ca
n
al
so
p
ro
vi
d
e
fe
ed
ba
ck
.


T
h
es
e
va
ri
ou
s
au
d
ie
n
ce
s
ca
n
p
ro
vi
d
e
fe
ed
ba
ck
to

m
an
ag
em
en
t,
su
ch
as
w
h
en
th
e
st
oc
k
p
ri
ce
ri
se
s
or
d
ec
li
n
es
.

H
ow
ev
er
,g
iv
en
th
at
th
e
st
oc
k
m
ar
ke
t
is
p
ro
n
e
to
os
ci
ll
at
io
n
,

th
is
fe
ed
ba
ck
ca
n
va
ry
in
it
s
u
se
fu
ln
es
s
fo
r
m
an
ag
er
s
m
ak
in
g

d
ec
is
io
n
s.

84

M
a
rk
e
t
R
o
le
in
P
ro
vi
d
in
g
F
e
e
d
b
a
ck
to
M
a
n
a
g
e
m
e
n
t

M
an
ag
em
en
t
of
te
n
h
as
im
p
er
fe
ct
in
fo
rm
at
io
n
ab
ou
t
it
s
ow
n

bu
si
n
es
s,
es
p
ec
ia
ll
y
it
s
bu
si
n
es
s’
va
lu
e
in
th
e
ou
ts
id
e
w
or
ld
(F
ig
u
re

1.
33
).
O
n
e
w
ay
in
w
h
ic
h
m
an
ag
er
s
tr
y
to
ga
in
fe
e
d
b
a
ck
on
th
ei
r

bu
si
n
es
s
is
by
co
n
d
u
ct
in
g
m
ar
ke
t
re
se
ar
ch
to
d
is
co
ve
r
w
h
at
p
eo
p
le

w
an
t,
n
ee
d
,o
r
be
li
ev
e.
O
n
ce
th
at
re
se
ar
ch
is
co
m
p
le
te
d
,i
t
ca
n
be

u
se
d
to
d
et
er
m
in
e
h
ow
to
m
ar
ke
t
va
ri
ou
s
p
ro
d
u
ct
s.

F
in
an
ci
al
m
ar
ke
ts
ca
n
al
so
p
ro
vi
d
e
fe
ed
ba
ck
,d
em
on
st
ra
ti
n
g
h
ow

p
ot
en
ti
al
sh
ar
eh
ol
d
er
s
vi
ew
th
e
fi
n
an
ci
al
va
lu
e
of
on
e
co
m
p
an
y
as

co
m
p
ar
ed
to
it
s
co
m
p
et
it
or
s.
F
or
ex
am
p
le
,i
n
ve
st
or
s
w
h
o
h
ol
d

sh
ar
es
in
m
u
lt
ip
le
fi
rm
s
in
a
se
ct
or
m
ay
h
av
e
m
or
e
in
fo
rm
at
io
n

ab
ou
t
th
e
p
ro
sp
ec
ts
in
th
at
se
ct
or
th
an
th
e
m
an
ag
er
of
on
e
fi
rm
in

th
at
se
ct
or
.I
n
ec
on
om
ic
s
an
d
co
n
tr
ac
t
th
eo
ry
,i
n
fo
rm
a
ti
o
n

a
sy
m
m
e
tr
y
d
ea
ls
w
it
h
th
e
st
u
d
y
of
d
ec
is
io
n
s
in
tr
an
sa
ct
io
n
s
w
h
er
e

on
e
p
ar
ty
h
as
m
or
e
or
be
tt
er
in
fo
rm
at
io
n
th
an
th
e
ot
h
er
,c
re
at
in
g
an

im
ba
la
n
ce
of
p
ow
er
.F
in
an
ci
al
ec
on
om
is
ts
h
av
e
ap
p
li
ed
in
fo
rm
at
io
n

as
ym
m
et
ry
in
st
u
d
ie
s
of
d
if
fe
re
n
ti
al
ly
in
fo
rm
ed
fi
n
an
ci
al
m
ar
ke
t

p
ar
ti
ci
p
an
ts
(i
n
si
d
e
rs
,s
to
ck
an
al
ys
ts
,i
n
ve
st
or
s,
am
on
g
ot
h
er
s)
.

T
h
es
e
va
ri
ou
s
au
d
ie
n
ce
s
ca
n
p
ro
vi
d
e
fe
ed
ba
ck
to
m
an
ag
em
en
t,
su
ch

as
w
h
en
th
e
st
oc
k
p
ri
ce
ri
se
s
or
d
ec
li
n
es
.T
h
at
sa
id
,t
h
e
st
oc
k
m
ar
ke
t

is
an
ex
am
p
le
of
a
sy
st
em
p
ro
n
e
to
os
ci
ll
at
io
n
.I
t
is
go
ve
rn
ed
by

p
os
it
iv
e
an
d
n
eg
at
iv
e
fe
ed
ba
ck
re
su
lt
in
g
fr
om
th
e
co
gn
it
iv
e
an
d

em
ot
io
n
al
fa
ct
or
s
am
on
g
m
ar
ke
t
p
ar
ti
ci
p
an
ts
.T
h
is
m
ay
be
th
e

re
su
lt
of
d
at
a-
ba
se
d
fu
n
d
am
en
ta
la
n
al
ys
is
or
m
or
e
se
n
ti
m
e
n
t-

ba
se
d
an
al
ys
is
,m
ea
n
in
g
th
at
th
e
fe
ed
ba
ck
fr
om
th
e
st
oc
k
m
ar
ke
t

ca
n
va
ry
in
it
s
u
se
fu
ln
es
s
fo
r
m
an
ge
rs
m
ak
in
g
sh
or
t-
te
rm
an
d
lo
n
g-

te
rm
d
ec
is
io
n
s.

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
fi
n
a
n
ci
a
l-
m
a
rk
et
s/
ro
le
-i
n

p
ro
vi
d
in
g
-f
ee
d
ba
ck
-t
o-
m
a
n
a
g
em
en
t/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

85

H
er
e
a
gr
ou

p
m
ay

b
e
p
ro
vi
d
in
g

fe
ed

b
ac

k
to

m
an

ag
em

en
t.
Th

is
ca

n
b
e
d
on

e
at

a
m
uc

h
la
rg
er

sc
al
e

to
d
ay
.

Fi
g
ur
e
1.
33

Fe
ed
b
ac
k
to

M
an
ag
em

en
t

Tr
en

d
s
in

M
ar
ke

ts
A
m
ar
ke

t
tr
en

d
is

a
p
ut
at
iv
e
te
nd

en
cy

of
a
n

an
ci
al

m
ar
ke

t
to

m
ov

e
in

a
p
ar
tic

ul
ar

d
ire

ct
io
n
ov

er
tim

e.

K
E
Y
P
O
IN
TS


T
h
e
te
rm
s
bu
ll
m
ar
ke
t
an
d
be
ar
m
ar
ke
t
d
es
cr
ib
e
u
p
w
ar
d
an
d

d
ow
n
w
ar
d
m
ar
ke
t
tr
en
d
s,
re
sp
ec
ti
ve
ly
,a
n
d
ca
n
be
u
se
d
to

d
es
cr
ib
e
ei
th
er
th
e
m
ar
ke
t
as
a
w
h
ol
e
or
sp
ec
if
ic
se
ct
or
s
an
d

se
cu
ri
ti
es
.


A
se
cu
la
r
m
ar
ke
t
tr
en
d
is
a
lo
n
g-
te
rm
tr
en
d
th
at
la
st
s
5
to
25

ye
ar
s
an
d
co
n
si
st
s
of
a
se
ri
es
of
p
ri
m
ar
y
tr
en
d
s.


A
p
ri
m
ar
y
tr
en
d
h
as
br
oa
d
su
p
p
or
t
th
ro
u
gh
ou
t
th
e
en
ti
re

m
ar
ke
t
an
d
la
st
s
fo
r
a
ye
ar
or
m
or
e.

T
re
n
d
s
in
M
a
rk
e
ts

A
m
ar
ke
t
tr
en
d
is
a
p
u
ta
ti
ve
te
n
d
en
cy
of
a
fi
n
an
ci
al
m
ar
ke
t
to

m
ov
e
in
a
p
ar
ti
cu
la
r
d
ir
ec
ti
on
ov
er
ti
m
e.
T
h
es
e
tr
en
d
s
ar
e
cl
as
si
fi
ed

as
se
cu
la
r
fo
r
lo
n
g-
te
rm
fr
am
es
,p
ri
m
ar
y
fo
r
m
ed
iu
m
-t
er
m
fr
am
es
,

an
d
se
co
n
d
ar
y
fo
r
sh
or
t-
te
rm
fr
am
es
.T
ra
d
er
s
id
en
ti
fy
m
ar
ke
t

tr
en
d
s
u
si
n
g
te
ch
n
ic
a
l
a
n
a
ly
si
s,
a
fr
am
ew
or
k
w
h
ic
h
ch
ar
ac
te
ri
ze
s

m
ar
ke
t
tr
en
d
s
as
p
re
d
ic
ta
bl
e
p
ri
ce
te
n
d
en
ci
es
w
h
en
p
ri
ce
re
ac
h
es

su
p
p
or
t
an
d
re
si
st
an
ce
le
ve
ls
,v
ar
yi
n
g
ov
er
ti
m
e.

T
h
e
te
rm
s
bu
ll
m
ar
ke
t
an
d
be
ar
m
ar
ke
t
d
es
cr
ib
e
u
p
w
ar
d
an
d

d
ow
n
w
ar
d
m
ar
ke
t
tr
en
d
s,
re
sp
ec
ti
ve
ly
,a
n
d
ca
n
be
u
se
d
to
d
es
cr
ib
e

ei
th
er
th
e
m
ar
ke
t
as
a
w
h
ol
e
or
sp
ec
if
ic
se
ct
or
s
an
d
se
cu
ri
ti
es

(F
ig
u
re
1.
34
).

S
e
cu
la
r
M
a
rk
e
t
T
re
n
d

A
se
cu
la
r
m
ar
ke
t
tr
en
d
is
a
lo
n
g-
te
rm
tr
en
d
th
at
la
st
s
5
to
25
ye
ar
s

an
d
co
n
si
st
s
of
a
se
ri
es
of
p
ri
m
ar
y
tr
en
d
s.
A
se
cu
la
r
be
ar
m
ar
ke
t

co
n
si
st
s
of
sm
al
le
r
bu
ll
m
ar
ke
ts
an
d
la
rg
er
be
ar
m
ar
ke
ts
,w
h
il
e
a

se
cu
la
r
bu
ll
m
ar
ke
t
co
n
si
st
s
of
la
rg
er
bu
ll
m
ar
ke
ts
an
d
sm
al
le
r
be
ar

m
ar
ke
ts
.

In
a
se
cu
la
r
bu
ll
m
ar
ke
t,
th
e
p
re
va
il
in
g
tr
en
d
is
“b
u
ll
is
h

or
u
p
w
ar
d

m
ov
in
g.
T
h
e
U
n
it
ed
St
at
es
st
oc
k
m
ar
ke
t
w
as
d
es
cr
ib
ed
as
be
in
g
in
a

86

Th
e
b
ul
la

nd
b
ea

r
re
p
re
se

nt
th
e
tw

o
m
aj
or

fo
rm

s
of

m
ar
ke

t
tr
en

d
.

Fi
g
ur
e
1.
34

B
ul
l

an
d
B
ea
r.

se
cu
la
r
bu
ll
m
ar
ke
t
fr
om
ab
ou
t
19
8
3
to
20
0
0
,w
it
h
br
ie
fu
p
se
ts

in
cl
u
d
in
g
th
e
cr
as
h
of
19
8
7
an
d
th
e
d
ot
-c
om
bu
st
of
20
0
0
to
20
0
2.

In
a
se
cu
la
r
be
ar
m
ar
ke
t,
th
e
p
re
va
il
in
g
tr
en
d
is
“b
ea
ri
sh

or

d
ow
n
w
ar
d
-m
ov
in
g.
A
n
ex
am
p
le
of
a
se
cu
la
r
be
ar
m
ar
ke
t
w
as
se
en

in
go
ld
d
u
ri
n
g
th
e
p
er
io
d
be
tw
ee
n
Ja
n
u
ar
y
19
8
0
to
Ju
n
e
19
99
,

cu
lm
in
at
in
g
w
it
h
th
e
B
ro
w
n
B
ot
to
m
.D
u
ri
n
g
th
is
p
er
io
d
,t
h
e

n
om
in
al
go
ld
p
ri
ce
fe
ll
fr
om
a
h
ig
h
of
$
8
50
/o
z
($
30
/g
)
to
a
lo
w
of

$
25
3/
oz
($
9/
g)
,a
n
d
be
ca
m
e
p
ar
t
of
th
e
G
re
at
C
om
m
od
it
ie
s

D
ep
re
ss
io
n
.

P
ri
m
a
ry
M
a
rk
e
t
T
re
n
d

A
p
ri
m
ar
y
tr
en
d
h
as
br
oa
d
su
p
p
or
t
th
ro
u
gh
ou
t
th
e
en
ti
re
m
ar
ke
t

an
d
la
st
s
fo
r
a
ye
ar
or
m
or
e.

B
u
ll
M
a
rk
e
t

A
bu
ll
m
ar
ke
t
is
as
so
ci
at
ed
w
it
h
in
cr
ea
si
n
g
in
ve
st
or
co
n
fi
d
en
ce
,a
n
d

in
cr
ea
se
d
in
ve
st
in
g
in
an
ti
ci
p
at
io
n
of
fu
tu
re
p
ri
ce
in
cr
ea
se
s.
A

bu
ll
is
h
tr
en
d
in
th
e
st
oc
k
m
ar
ke
t
of
te
n
be
gi
n
s
be
fo
re
th
e
ge
n
er
al

ec
on
om
y
sh
ow
s
cl
ea
r
si
gn
s
of
re
co
ve
ry
.

B
e
a
r
M
a
rk
e
t

A
be
ar
m
ar
ke
t
is
a
ge
n
er
al
d
ec
li
n
e
in
th
e
st
oc
k
m
ar
ke
t
ov
er
a
p
er
io
d

of
ti
m
e.
It
is
a
tr
an
si
ti
on
fr
om
h
ig
h
in
ve
st
or
op
ti
m
is
m
to
w
id
es
p
re
ad

in
ve
st
or
fe
ar
an
d
p
es
si
m
is
m
.A
cc
or
d
in
g
to
T
h
e
V
an
gu
ar
d
G
ro
u
p
,

“W
h
il
e
th
er
e’
s
n
o
ag
re
ed
-u
p
on
d
ef
in
it
io
n
of
a
be
ar
m
ar
ke
t,
on
e

ge
n
er
al
ly
ac
ce
p
te
d
m
ea
su
re
is
a
p
ri
ce
d
ec
li
n
e
of
20
%
or
m
or
e
ov
er

at
le
as
t
a
tw
o-
m
on
th
p
er
io
d
.”

M
a
rk
e
t
T
o
p

A
m
ar
ke
t
to
p
(o
r
m
ar
ke
t
h
ig
h
)
is
u
su
al
ly
n
ot
a
d
ra
m
at
ic
ev
en
t.
T
h
e

m
ar
ke
t
h
as
si
m
p
ly
re
ac
h
ed
th
e
h
ig
h
es
t
p
oi
n
t
th
at
it
w
il
lf
or
so
m
e

ti
m
e.
A
d
ec
li
n
e
th
en
fo
ll
ow
s,
u
su
al
ly
gr
ad
u
al
ly
at
fi
rs
t
an
d
la
te
r
w
it
h

m
or
e
ra
p
id
it
y.
W
il
li
am
J.
O
‘N
ei
la
n
d
co
m
p
an
y
re
p
or
te
d
th
at
si
n
ce

th
e
19
50
s,
a
m
ar
ke
t
to
p
is
ch
ar
ac
te
ri
ze
d
by
th
re
e
to
fi
ve
d
is
tr
ib
u
ti
on

d
ay
s
in
a
m
aj
or
m
ar
ke
t
in
d
ex
oc
cu
rr
in
g
w
it
h
in
a
re
la
ti
ve
ly
sh
or
t

p
er
io
d
of
ti
m
e.
D
is
tr
ib
u
ti
on
is
a
d
ec
li
n
e
in
p
ri
ce
w
it
h
h
ig
h
er
vo
lu
m
e

th
an
th
e
p
re
ce
d
in
g
se
ss
io
n
.

M
a
rk
e
t
B
o
tt
o
m

A
m
ar
ke
t
bo
tt
om
is
a
tr
en
d
re
ve
rs
al
,t
h
e
en
d
of
a
m
ar
ke
t
d
ow
n
tu
rn
,

an
d
p
re
ce
d
es
th
e
be
gi
n
n
in
g
of
an
u
p
w
ar
d
m
ov
in
g
tr
en
d
(b
u
ll

m
ar
ke
t)
.

It
is
ve
ry
d
if
fi
cu
lt
to
id
en
ti
fy
a
bo
tt
om
w
h
il
e
it
is
oc
cu
rr
in
g.
T
h
e

u
p
tu
rn
fo
ll
ow
in
g
a
d
ec
li
n
e
is
of
te
n
sh
or
t-
li
ve
d
an
d
p
ri
ce
s
m
ig
h
t

re
su
m
e
th
ei
r
d
ec
li
n
e.
T
h
is
w
ou
ld
br
in
g
a
lo
ss
fo
r
th
e
in
ve
st
or
w
h
o

p
u
rc
h
as
ed
st
oc
k
d
u
ri
n
g
a
m
is
p
er
ce
iv
ed
or
“f
al
se

m
ar
ke
t
bo
tt
om
.

87

So
u
rc
e:
ht
tp
s:
//
w
w
w
.b
ou
n
d
le
ss
.c
om
/f
in
a
n
ce
/i
n
tr
od
u
ct
io
n
-t
o-
th
e-
fi
el
d

a
n
d
-g
oa
ls
-o
f-
fi
n
a
n
ci
a
l-
m
a
n
a
g
em
en
t/
fi
n
a
n
ci
a
l-
m
a
rk
et
s/
tr
en
d
s-
in

m
a
rk
et
s/

C
C
-B
Y
-S
A

B
ou
n
d
le
ss
is
a
n
op
en
ly
li
ce
n
se
d
ed
u
ca
ti
on
a
lr
es
ou
rc
e

88

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