M3 Discussion Essay Example | Topics and Well Written Essays - 500 words

M3 Discussion - Essay Example Common stocks are the most popular investment instrument in the stock market. One of the advantages of common stocks is its liquidity. A second advantage of common stocks is that the payment of dividends is optional (Harris, 2012). A disadvantage of the sale of common stocks is the lost of power due to the fact that common stockholders have voting rights. The high cost of launching an IPO is another con of common stocks. The use of preferred stocks is another long term financing option for the company. Preferred stocks offer the advantage of not diluting the power of the owners due to its lack of voting rights. One of the disadvantages of the use of preferred stocks is that preferred stocks have mandatory dividend payments. A third long term financing option for Genesis is bank loans. A business loan in the United States can be obtained to be financed in ten or more years. The interest rate of a business loan varies depending on the credit score of the business. A con of business loans is that they are a liability that must be paid every month. An increase in liabilities decreases the cash flow of a company. Lenders have cero power or influence over the operating decisions of a company, thus the use of loans does not dilute the power structure of an enterprise. A good thing about bank loans is that they provide companies with large sums of money in exchange for a small monthly payment. A fourth option that Genesis can utilize to obtain financing is the use of corporate bonds. A bond is a debt instruments that pays a coupon interest payment, while the principal is paid once the bond reaches maturity age. Bonds can be very useful debt instruments for companies with cash flow problems because the bond deb tor does not have the obligation of paying the principal payment until the end of the bond contract. The relative risk affects the cost of capital of a company due to the

Theories of Justice (Nozick's theory of distributive justice, compared Essay

Theories of Justice (Nozick's theory of distributive justice, compared to Rawls ) - Essay Example Out of the four theories of distributive justice, the only theory that has the most reliability is "justice as entitlement. This Nozickian theory is frequently thought as a response to Rawls' "justice as fairness" for the reason that it is a theory of extremes in comparison. "Whilst Rawls uses the original position to generate a model of fairness, he, does not take critically the distinction between persons since it extremely limits people's rights to utilize their own natural and social possessions" [5]. Robert Nozick's "Entitlement Theory" establishes a system of distribution that permits for holdings to be attained as well as transferred by means of legitimate means. This is in disagreement to a redistributive type of justice, like Rawls', which is an effort to level the difference by taking from a little to give to others who don't have as much. Nozick's form of distribution consists of the respect for people as well as their holdings by means of allowing the free market to be a basis of society. Thereby, the government's role in the economic sector would be minimal, allowing for increased productivity levels for those that engage in the free market. The rights of the citizens, and of legal aliens, of a liberal democratic state should not be infringed upon through the use of taxation or illegitimate transfers of holdings; self-ownership is a right that all people in a liberal (the broad sense) state could agree on. Taxation is a form of forced labor by Nozick's account. Rawls' would argue that taxation is fundamental in maintaining public institutions and goods that benefit all in some cases and those in most need. "Taxation would provide those most needy with a base-needs minimum. Nozick's objection to redistribution is that it uses some people as "means to other people's ends" This derives from Immanuel Kant's notion that we should not "treat others as means to our own or other people's ends, but as ends in themselves."[6] I agree with Nozick that taxation for re-distributive purposes is forced labor because it treats people as means; taxes also pay for street light, and the police and defense. These are things that we all benefit from; therefore some taxes (though forced) are beneficial to society as a whole and thus should be implemented. The involuntary transfer from the richer to the poorer caused by taxation is a violation of a person's rights, but if it can be proven that the taxes they pay are advantageous to their own purposes then some might consider voluntarily paying taxes. I think the problem arises when fairness is being questioned. Fairness is hard to come by when taxation is being argued. It wouldn't be fair for some have to pay more for the same service that others pay less. Those that do not have the means would argue that taxing the rich more is fair. Hence, the raising and lowering of taxes, alternates with the change of parties heading this nation in particular. When speaking of how Rawls and Nozick have different view points their ideas of the "separateness of persons," Adam Swift says: "What if I am one of the people made unhappy for the sake of other people's happiness"[6]. This is a question we must consider