Beware of Gratutity Reductions on Visa Gift Cards

One might think a Visa Gift Card could pay for a restaurant meal without any complication, but there is one little technicality involved with the process. According to Visa, restaurant order terminals deduct gratuity off the total balance of Visa Gift Cards. This means the card will be declined if the check balance is higher than the card's balance after the reduction.

Perhaps restaurants did this because clientele were putting tips on cards with no balance in an attempt to mess around with the debit card system. To get around this card limitation the card either has to have a high enough balance to include gratuity or the remainder of the check with gratuity can be paid with the rest of the gift card's balance plus cash or with another payment card.

The restaurant will not actually deduct the tip from the Visa Gift Card's balance until the client Visa receipt is signed according to Visa. If the restaurant is able to close the check at the terminal before reconciling the tips via the Visa payment system the card may still be able to be used to pay the check in full using the gift card. However, this would require shrinking or transferring the tip by enough to allow the balance of the card to pay the check amount.

Why Stock Dilution can Boost Market Capitalization

Since P/E divides share price by EPS, the P/E ratio stays the same at the time of a stock split. However, if the share price after the stock split rises from $5 per share to $7.5 per share, the P/E ratio rises. If the market psychology favors the dilution, the effect is higher market capitalization and a higher P/E ratio than may have been the case without dilution. This stresses the importance of investor perception.

Complete article link: http://www.helium.com/items/2185674-what-is-stock-dilution

Tips for Selling Recycled Steel

Recycled steel is a well entrenched market with numerous venues and networks. Recycled steel goes through a process starting with the collection of scrap metal and products reaching the end of their consumption cycle. Depending on whether or not the recycled steel is a finished alloy or bundled scrap, the cost of recycled steel can vary. 

Complete article link: http://www.ehow.com/how_8640676_sell-recycled-steel.html

Could the Deepwater Horizon have caused a British Petroleum bankruptcy?

British Petroleum (BP), certainly lost money after the "Deepwater Horizon" oil rig literally saw a deepwater horizon after exploding in April, 2010. However, the loss of money doesn't necessarily put BP into the red, or so far in to the red that the company will become insolvent. This is especially so after a $7.8 billion shareholder dividend cut over 3 quarters.(1)

To ascertain whether British Petroleum PLC, is likely to go bankrupt or not is a matter of weighing losses against revenues and liabilities arising out of the Deepwater Horizon calamity. Some of the financial damages BP will have to absorb include a very large loss in equity capitalization in addition to liability claims and earnings losses.
 

• BP's debt rating downgraded by Fitch and Moody's• Over $90 billion loss of market capitalization
• $20 Billion set aside for gulf relief
• Estimated $3.3 million 3 month revenue loss
• Potential uninsured losses costing billions more

With assets over $235 billion, and an average annual revenue over $66 billion the over $110 billion losses relating to declines in equity, increased liabilities, relief funds and revenue loss could be sustained without a bankruptcy.(3) However, with a lower debt rating and market capitalization, the company is not as leveraged as it once was which could impact future business operations and income.

In the best-case scenario, BP will be a bad year for shareholders with a public relations and financial scar that will impact share prices, potential insurance costs and to an extent revenue without a bankruptcy. Even with $40 billion in liability payments, BP could still continue its operations due to a high demand and relatively stable price for its oil products in addition to ample assets to cover losses costing billions of dollars while still potentially remaining profitable.

With approximate Q2, 2010 liabilities amounting to only 57 percent of total asset value, British Petroleum, PLC does have some financial leeway even with downgraded and potentially more expensive debt. British Petroleum PLC could quite possibly end the 2010 fiscal year with its first net loss in a while, but it is not unusual for large companies to stay operational with several years of tax-deductible losses on future profits either.

In a June 18, 2010 report by Laurel Brubaker Calkins and Margaret Cronin Fisk, in Bloomberg Business Week, a district judge is cited as stating the many class action lawsuits held against BP could indeed cost more than BP has accounted for.(4) This is further confirmed by Calkins and Fisk's reference of a more than $37 billion liability damage estimate from Credit Suisse.

If the oil spill continues to be a problem and the impending lawsuits and settlements that arise out of the Deepwater Horizon oil rig explosion continue to mount, the costs could far exceed $20 billion and potentially reach or surpass the widely publicized $75 billion liability cap set forth by the Oil Pollution Act of 1990. If BP's uninsured losses exceed the solvency threshold for the company to continue, then bankruptcy becomes a more real possibility. Until the actual damage costs are determined in their full scope, such a scenario can only be estimated as probable if damages significantly beyond $20 billion occur.

Sources: 

1. http://bit.ly/amW76p (Reuters)
2. http://bit.ly/afuHIx (Securities and Exchange Commission)
3. http://yhoo.it/afcGiJ (Yahoo Finance)
4. http://bit.ly/a4ZwIU (Bloomberg Business week)
5. http://bit.ly/bWr2tS (International Business Times)

Overview of Small-Cap Stocks

Small Capitalization Stocks are stocks that contribute to no more than $1 billion dollars of a company's equity. The value of a company's capitalization is commonly calculated by multiplying the number of a company's outstanding shares by it's share price or average share price. There are also micro-capitalization stocks that have even lower amounts of equity capitalization, but this article will focus on Small cap stocks. A few of the general features of small cap companies are as follows:

• Smaller share prices on market exchanges
• Subject to higher risk from larger competitors
• Greater growth potential
• Potential stock price volatility

Benefits and risks

Each capitalization class of stocks have certain advantages and disadvantages associated with them. Some tend to be higher risk whereas others tend to be lower risk. These benefits and risk also vary depending on the economic sector in which stock trading occurs. An overview of the benefits and risks associated with small cap stocks is provided below:

• Benefits of Investing in Small Cap Stocks:

 Small cap stocks are cheaper to buy than mid cap and large cap stocks. What's more, small cap stocks under $5.00 per share are not as well studied by financial analysts. This can be an advantage as a company may be undervalued due to this media deficit. Also, since these stocks represent smaller companies, there is more potential for earnings to grow at a larger percent than a well established company with strong market positioning. Since these companies are smaller, they may also be acquisition targets for larger companies which is often good for a stock price.

• Risks

Since small cap stocks are cheaper to buy, one can buy more of them. What's more at a lower cost per share, any decline in value is a proportionally greater percentage loss of invested capital than with a higher priced stock. For example, if person A owns 100 shares of Berkshire Hathaway Class A shares and Person B owns 1000 shares of Little Cap's Are Us Corp. and Person A's shares cost $100K per share and Person B's shares cost $10 per share, person B is going to experience a far greater investment loss if his or her shares decline $1 than if Person A's shares decline $1.

Risk avoidance techniques

The risks associated with Small Cap stocks can be mitigated through investment strategies or trading tactics. In an investment strategy an investor may choose to diversify one's small cap investments by purchasing several small cap companies across several industries and/or purchasing a large cap competitor in the same industry. This reduces the risk of investment loss should one company go belly up in competition.

In terms of trading, long positions can be hedged with short positions and short positions can be hedged with put options. While risk mitigation reduces the potential for loss it may also inhibit potential gains. A few of the risk mitigation methods one may utilize when investing in small cap stocks are as follows:

• Diversify across multiple industries
• Select only small cap companies with proved financial strength
• Purchase mutual funds that specialize in small cap companies
• Avoid small caps altogether

Tips for investing in small cap stocks

Investing in Small Capitalization stocks is generally for investors and traders with at least some taste for risk. For this reason it is important to utilize a well thought out entry and possibly exit strategy. Below are some techniques to stabilizing an investment strategy:

Stop loss orders:

By not allowing stocks to decline by more than 10% investors are in effect risking no more than 10% of their capital per investment.

Emotional control:

Emotional investing is shunned by some professional investors. Emotions can cause one to sell a stock that is about to rocket or buy a stock that is about to tank. Using logic and exercising fiscal discipline helps one manage money unemotionally and can reduce risks associated with emotional investing.

Research:

Due diligence is a hallmark of fundamental stock analysis. If it's done right, it can probably reduce risk if accompanied by good decision making.

As with most investments, risk is always a factor that can only be minimized but not always eliminated. Many investors have experienced loss at one time or another. Even large brokerage firms, high powered investors and sophisticated investment computing algorithms are not completely immune to unexpected events in the World and economic markets. Nevertheless, investment in small capitalization stocks can be profitable and the potential for profitability may increase by utilizing the information in this article.

Import Licenses Explained

An import license is not always required to import goods into the United States or the European Union. Outside of U.S. "free zones", imported goods are subject to both customs and restrictions, some of which require certain goods to be imported only with a license. Similar tariff structure and restrictions also exist within the European Union.

In the instance of the United States, licenses are sometimes required to "protect the economy and security of the United States, and to safeguard consumer health and well being, and to preserve domestic plant and animal life." (www.cpb.gov) The motives for import licensure are similar within the European Union.

The import license is a document issued by a regulatory branch of a Government allowing the import of certain goods. The licenses legalize importation but do not necessarily exempt imported goods from trade taxes such as tariffs or customs tax. In certain cases import limitations may also be imposed on certain goods as determined by the import legislation.

How to obtain an import license

The rules for obtaining an import license are different within the United States and the European Union. Generally specific Government departments issue import licenses/permits within the United States and the European Commission issues import licenses through member state organizations in the European Union. A brief overview of some of the different import requirements within the U.S. and the E.U. are provided below.

1. United States import licensure

The United States may require an import license via a specific Federal agency in addition to completion of customs entry forms. Customs entry forms can be completed online using the "Customs Automated Commercial System" (www.americanimporters.org). A few of the requirements that may be necessary are listed below:

•Import licenses/permits obtained through specific Government Departments Ex. USDA

•Customs entry form must be completed to expedite import

•Import Bonds allow possession prior to payment of tariffs for "formal" commercial importation.

2. European Union import licensure

Within the European Union a specific process is involved to acquire an import license. Additionally, issuance of import licenses do not necessarily allow for unrestricted quantities of imports in certain cases. The import license procedure and rules are governed by the European Commission through import legislation.

• An export document may be required to obtain an import license

• Applied for through member states and approved by the European Commission

• Expire after 6 months 

• Genetically modified organisms are restricted

• Import bans are in place for goods deemed hazardous

License costs

License costs are separate from tariff duties if such taxes are applicable. Within The United States , "customs brokers" and/or the Customs Border Protection Agency facilitate the application of the "Harmonized Tariff Schedule" which is a set of costs for particular goods as determined by agreements such as the North American Free Trade Agreement (NAFTA).

The cost of import licenses and permits will vary depending on the issuing agency's processing fees and the specific trading territory in which goods will be imported. These costs will be assessed in the currency of the final destination of the imported goods. An example license fee is the U.S. Department of Agriculture dairy import license, which at the time of this articles compilation was $150.00 per license within the tariff quota range i.e. within the allowable volume of imported goods.

Items requiring an import license

Both in the United States and the European Union, similar items are subject to import licensure requirements. An exception being genetically modified products and various hazardous materials within the European Union. Within the United States the U.S. Customs Border Protection Agency oversee the import of goods. Some of the goods more typically requiring licenses in both trading territories are as listed:

• Organic products such as food, milk and plants

• Animals

• Alcohol, tobacco, and in some cases medicine

• Culture specific artwork and crafts

• Books, published information and written material

• Hunting rifles and similar products

Summary

In summary, import licenses may or may not be a requirement for import of goods, however a customs entry form and import taxes may have to be paid if the imports enter a trading territory from a tariff free zone. Business identification numbers are not always required on customs entry forms and social security numbers may be used in lieu of such identification. Moreover, in the case of informal and formal import, a customs broker may complete the necessary documentation requirements. An examples of customs entry form includes the customs forms handed out on planes during international travel.

The licensure requirements and costs vary from state to state and trading territory to trading territory. Moreover, before importing goods, it may be advisable to contact the relevant Government agency and/or department to assess whether or not a license will be required in addition to contacting the applicable customs agent to assess any import holding periods, costs and paperwork requirements.

Sources:

1. http://www.americanimporters.org/pages/marketing/USimportrequirements.html
2. http://www.cbp.gov/linkhandler/cgov/newsroom/publications/trade/iius.ctt/iius.pdf
3. http://info.hktdc.com/euguide/2-9.htm
4. http://library.findlaw.com/2000/Jul/1/130645.html
5. http://www.itintl.com/how-to-get-an-import-license.html
6. http://www.fas.usda.gov/info/fr/2007/081407dairyimport.asp

A return to the "Gold Standard" makes no sense

At best returning to the gold standard is like putting a size 6 shoe on a basketball player with a  size 13 foot. If the IMF's valuation of U.S. Gold reserves is accurate, they amount to approximately $390 billion dollars (8,133 tons at $1,500 per ounce) per the June 13, 2011 Moneycation post citing the World Gold Council data. There simply isn't enough gold to have a gold standard because global economies would be forced to stay unnaturally small due to the restriction of the natural resource's availability.

As Bloomberg-BusinessWeek points out in 'Ron Paul's Fort Knox Fever', alleged U.S. gold reserves are only a fraction of national debt; about 2.7 percent not including silver and other metals. If the gold price bubble is in fact a bubble and it bursts a decline in gold price would cause U.S. gold reserves could be worth as low as $78 billion at $300 per ounce. Even including the remaining 25 percent of non-gold U.S. reserves, $520 billion or so at current prices would only allow a fiat currency to be fractional  to about 3 percent. This is much lower than it was before President Nixon let any use of gold standard go altogether.

If an economy is to be accountable to itself, which appears to be the theme of Congressman Paul's view,  a different kind of standard seems to make more sense. These days, national Gross Domestic Product as a percentage of national debt is often used as a general metric. If that ratio were to be limited to 1 or higher, then national debt would not be allowed to exceed 100 percent of GDP ever. Pegging a standard in such a way does little to facilitate the ebb and flow of economic contractions and expansions however, and limits fiscal policy's ability to influence, hopefully in a good way, economic growth.

Put Your Money Where Your Mouth Is

Many corporations have charity programs that allow customers to donate money to causes such as disease research, social programs etc. Not all these companies actually match these funds or donate money from their own revenue. Sometimes customers and employees who have proportionally less money are more generous than these companies.

How Floating Charge Loans Work

Floating charge loans are a type of secured debt made by corporations. Floating charges are subordinate to fixed charges which give the lender more control over assets. An advantage of floating charge loans is borrowers retain control over the collateralized assets.

Complete article link: http://www.helium.com/items/2180437-what-is-floating-rate-charge

Why businesses use job orders

Businesses use job orders to account for and guide unique work order processes. Without job orders, business communications and operations can become cluttered and inefficient. This is because products and services that are not standardized or documented via job orders can be botched, misunderstood or completed late thereby lowering both the performance of the business and the quality of service. Effective business job orders may also be used for one or more of the following purposes.

• Initiate

A business job order can be used to initiate a project or job that is a-typical of a standard procedure. If the procedure is unchanged, the job order may instead be referred to as a process order. In the former case, the job order will initiate the preparation for the new job and its requirements.

• Inform

To properly inform employees who will be completing the job, business job orders are used to let the employee know what is expected of them. The job order provides instructions as to what needs to be completed, how it should be completed and by when. In this sense a job order is similar to an instruction manual with associated costs included.

• Specify

Specificity is an important aspect of job orders because details may be essential to completing the job correctly. For example, suppose a roof repair company receives a call to repair broken shingles. The job order should specify the type of shingles, and how much they cost so the installer charges the right amount and knows what materials he needs for the job.

• Tally

Job orders are also used by businesses to keep track of costs. By documenting inventory usage and costs via job orders, materials can be used resourcefully and costs of goods sold can be kept track of more accurately and in a timely manner. The job orders can also be analyzed for trends and cost adjusting.

• Record

Another important reason why businesses use job orders is to keep track of what's going on. This can help with managerial accounting in terms of assessing scheduling requirements, inventory management, and cost control. By having recorded job orders, a quick reference is available for audits, bookkeeping  and managerial decision making.

Sometimes job orders are referred to in a different context, specifically as a recruitment mechanism for new employees i.e. job listing and application process. This is generally not the traditional business use of the term however. Job orders may be used alongside or with work orders and process orders depending on the task. Businesses may also use job orders to measure resource capacity utilization.

Sources:

1. http://bit.ly/bSNmac (DOD: Job order accounting)
2. http://bit.ly/aFeWj8 (Miami Dade College: J.Hortens)
3. http://bit.ly/bsCyVE (State of Montana)

How to Save 66 Percent on Groceries

Just in case no one thinks this is possible, the receipts below demonstrate 66 percent can be knocked off a grocery bill. Here's how it was done: The store underwent renovation and designed an advertising campaign around the renovation. This included a coupon pack and 10 percent off any purchase linked to a new Safeway card sent in the mail.

This special was the perfect coupon and special stacking opportunity. By combining 1. manufacturer coupons, 2. 10 percent discount, 3. store coupons and 4. on sale items what would have been a $122.55 bill ended up being $43.26. As with any coupon stacking strategy a key element was also to only purchases needed items.

Good and Bad Ways to Save Money

Duct tape is good for a lot of things, but using it to keep the trunk of your car down also makes it really easy for robbers to get into the trunk. It may also be a road safety violation which could end up with a ticket that's cost could be used for repair.

CVS coupon centers however, are a good idea when needed items are purchased using a free CVS Extra Care Card on discount. These machines scan free CVS Extra Care Cards available from the cashier and print out coupons. The card records transactions when it is used and when combined with in store specials and bonus bucks, the savings really do add up. 

Bonus bucks can be earned from buying needed items such as toothpaste at CVS over time and from in store awards that offer bonus bucks for purchasing specific items. When an item is already on discount, and has a bonus buck reward this can be stacked with a 30 percent or other amount coupon if more than one item is purchased. 

For example, suppose toothpaste normally costs $3.99 but there is an in store special for $2.99. Using a bonus buck from previous purchases the cost becomes $1.99 and when stacked with a 30 percent coupon the cost becomes $1.39. However, if the 30 percent coupon only applies to one item when another item is bought, the second item is ideally 1. necessary and 2. also on special. 

To illustrate further; in addition to toothpaste, two bars of soap are purchased. These bars of soap normally cost $2.45 but are on special for $1.99. Together the soaps plus the toothpaste cost $3.38 before tax. Normally, these items would have cost $6.44, the savings add up to $3.06 before 5 percent tax and $3.24 after tax. That's around 47.5-48 percent savings before and after tax. 

Registered agents: How to find a good one and how to pay for services

A registered agent is a facilitator of business registration services. These agents represent jurisdictions from all around the World, and both maintain and provide business documentation services required by the laws of the location of business registration. These requirements vary from country to country and can impact business-operating costs, legal legitimacy as a business entity, and reporting of business information such as executive officers, and shareholder information to the Governmental authority represented by the registered agent.

Finding a registered agency is a simple enough process and can happen naturally during the process of researching a business opportunity or discovering a licensing requirement through the mail. In other words, a business and/or people responsible for it will find out about registration activity and requirements as a normal part of being in business. To directly find a registered agent one can either contact the division of Government responsible for business regulation or taxation, perform an Internet web browser search or ask for referrals from local business owners, or chambers of commerce.

Registered agents may or may not be required by law depending on where a business is legally registered. For this reason, it is a good idea to be aware of the legal requirements prescribed by business regulations as it could end up saving registered agent fees that vary considerably from agent to agent and country to country. In some instances a registered agent is not legally required and a business can register itself. For example, the nature of the business practice itself may qualify it for self-registration.

Additionally, in locations where a registered agent is not mandatory, knowledge of the registration process and/or regulations and the appropriate fees may be all that is needed. For small businesses not required to maintain a registered agent, self-registration may be more expedient and financially practical than utilizing a registered agent. 

In other words, if it can be done better independently, then self-registering may be a more efficient and viable option. Payment methods can vary for registered agent costs and registration fees. Some may operate on a cash-basis where as others may utilize an accrual i.e. bill now pay later method. Essentially, the registration payment options are dependent on the terms of agreement and accepted forms of payment between the agent and/or regulatory authority and the business.

The quality of a registered agent's services, fees, correspondence, record keeping and so forth can also be important. Generally this can vary based on a number of factors such as training and efficiency of the registered agencies staff, capacity vs. volume of registrants handled by the agent, organizational and industry experience as a registered agent, and timeliness of expiry and registration requirement notices. A registered agent's experience in providing its services will vary depending on these and other factors.

A relationship with a registered agent may last as long as the life of the business or may be severed by re-registering with another registered agent or by re-location of a business to a new area of operation. If a business does utilize a registered agent, finding the right one may be important for the simple matter of business process. Self-registration directly with a registry, secretary of State, or department of business may be a good option if the filing requirements are few, and if the administrative department responsible for handling registrations is worth the time it terms of the opportunity cost of self-registration. 

This can involve becoming familiar with the paperwork requirements for one's business. Examples of such documents include articles of incorporation, certificates of good standing, share certificates, business-licensing documentation. In short, a registered agent provides legal secretarial services for a specific function, namely reporting, filing and documentation requirement maintained by the regulatory authority for the location of business operation. Registered agents services and cost may vary or not be required at all, and can depend on business statutes and complexity of filing.

How To Repair a Late S Corporation Election

An S-Corporation election repair is the option available to businesses within the United States to be considered an 'S-Corporation' for tax filing purposes by the U.S. Internal Revenue Service after the filing deadline has passed. Moreover, while S-Corporations can elect officers, the repair of late S-Corporation election refers to the late filing of a business as an S-Corporation i.e. after the April 15 fiscal year deadline mandated by the U.S. Internal Revenue Service. This article will illustrate what an S-Corporation is, benefits of electing to become an S-Corporation, how to repari a late S-corporation filing in addition to providing tips to consider when making the decision to reclassify a business as a S-Corporation.

What is an S Corporation?

S-Corporations have unique tax advantages that a sole proprietorship, partnership or limited liability corporation do not. Specifically, S corporations avoid owner self-employment tax and social security taxes on salary. However, the lower social security taxes can also imply lower social security recorded income and credits which can have an impact later in life. Additionally, since the corporation's income is not taxed, the shareholders are meaning tax is still paid, just not by the company but rather the shareholders unless there is a net loss which means shareholders can deduct the losses on their form 1040 income tax forms potentially lowering personal income tax significantly.

An S-Corporation is a small business registered with the U.S. Internal Revenue service. Generally, for a business to be considered an S-Corporation for tax purposes, the appropriate paper work must be filed with the IRS before April 15th of a given year to qualify as an S-Corporation for the previous year's tax filing and tax considerations. If this paperwork is not filed by April 15th, the company will not be considered an S-Corporation for the previous tax year unless a repair is completed.

How to "repair" a late S Corporation filing

To repair a late S-corporation election it is important to understand what qualifies a company for a late S-corporation election filing and how to go about registering the company after the April 15th deadline. To qualify for late S-Corporation election the business must file an IRS form 1120S (U.S. Income Tax Return for an S Corporation) and a form 2553 (Election by a small Business Corporation) with an explanation of filing late according to the IRS 2007 policy change. Additionally, an IRS form 8832 (Entity Classification Election) can be filed with the previously mentioned two forms. This joint filing of documents essentially slows down the bureaucracy involved in changing corporate status.

In addition to the above filing requirement, several other conditions must be met in order for the late S-Corporation election filing to be approved. The following link provides some useful tips on what to place on the late form 2553 in addition to timing, business structure qualification. To qualify as an S-Corporation a business can have no more than 100 shareholders or less as determined by the State of incorporation in addition to conformity with all the applicable State and Federal requirements of incorporation. These requirements can be obtained from the appropriate Secretary of State's office.

S corporation election tips

When filing to become an S-Corporation it can be wise to verify the businesses structure is appropriate for the shareholders and businesses needs and goals. Since corporate structure is generally a long standing decision that cannot be easily reversed, the implications of ineffectively incorporating or electing S-Corporation has the potential to be quite negative for businesses unaware of specific caveats, taxation, and liability implications. Becoming aware of these things can be assisted through the following tips.

• Implement a diligent company risk management policy

• Contact the Internal Revenue Service

• Contact a business consultant

• Verify registration requirements

• Assess potential advantages and disadvantages

• Obtain and accurately complete the necessary paperwork and information needed for the 

S-Corporation election

The above tips can potentially better inform business owners and officers of the necessary steps, requirements and affects of initiating a formal change in business status from another type of business. Also, to avoid complications in the filing process, reviewing the late filing paperwork can be beneficial especially if the businesses profitability and success depends on the transition to an S-Corporation.

Summary

An S-Corporation is a type of business classification within the United States of America. Business can elect to change their classification to S-Corporation provided they meet specific State and Federal filing requirements. In some cases, election to become S-Corporations may be filed with the IRS after the April 15th tax deadline. In such cases, a late election as S-corporation procedure exists to help expedite the process and eliminate unnecessary complication in the transition to a S-Corporation.

When a business chooses to become an S-Corporation, it can be beneficial to properly assess the necessary requirements of such in accordance with the businesses strategic goals. Furthermore, when filing an election to become an S-Corporation after the IRS tax deadline, the need for accuracy and proper filing is given more weight of importance, as the process is already somewhat at fault. This article has provided sources, instructions and tips on how to increase the chance of successfully filing a late election to become an S-Corporation.

Sources:

1. http://www.irs.gov/newsroom/article/0,id=174675,00.html
2. http://taxes.about.com/od/scorporations/a/scorp_formation_2.htm
3. http://www.microsoft.com/smallbusiness/resources/startups/business-plans-entities/more-pros-than-cons-to-becoming-an-s-corporation.aspx#MoreprosthanconstobecominganScorporation
4. http://www.irs.gov/pub/irs-pdf/f1120s.pdf
5. http://www.irs.gov/pub/irs-pdf/f2553.pdf
6. http://www.irs.gov/pub/irs-pdf/f8832.pdf
7. http://www.irs.gov/businesses/small/article/0,id=98263,00.html

How Agents are Different from Independent Contractors

Agents are employees and independent contractors are not. Independent contractors can be a lot cheaper to companies and are not as well protected from liability. They are also not subject to minimum wage requirements. For clients, it is important to understand where both the agent's and independent contractor's responsibilities and priorities rest.

Complete article link: http://www.ehow.co.uk/info_8607860_difference-between-agent-independent-contractor.html

How a Consumer Buyer Matrix Works

 CC0-1.0 US-PD

Consumer buyer matrices are used to evaluate consumer behavior and record reasons why buyers make purchase decisions for specific types of products or services. The consumer buyer matrix is a marketing tool used during the marketing research process and when deciding which products to advertise.

Complete article link: http://www.ehow.com/info_8597049_consumer-buyer-matrix.html

Basic statistical concepts: Data collection by sampling method

Data sampling is used to learn more about people such as consumers, events such as consumer spending, and information such as how much a consumer spends. In other words, data sampling is the acquisition of recorded numbers, information, facts or events in the form of a data set or multiple data sets. This data set is the data sample that is used in obtaining statistical answers for questions. 

Data can be collected in a number of ways, one of which is the sample method. Other methods of data collection include data mining, aggregate data gathering, random sampling, and qualitative research. This article will discuss data collection by sampling in terms of 1) its objectives, 2) how it can be done and 3) how it is analyzed.

Objectives of data sampling collection

Data sampling attempts to achieve some core objectives relevant to the statistical study in question. Specifically, sample data is utilized in a number of disciplines/fields to learn more about the subject. Moreover, in marketing, sample data may be used to learn more about people's behavior, choices, and actions for the purpose of improving marketing techniques and goals. The points listed below indicate some of the ways sample data can be used to determine.

• Information about a larger sample or population group

• Relationships between events, things or actions with other things, events or actions

• Identification of trends and patterns

• Grouping of sample data for categorization

• Analysis for research evidence and/or verification 

• Functionality of software analysis tools

An illustration of data sampling

Data sampling can be analyzed and implemented in a number of ways as we have seen. However, how this is done can vary so an illustration of how sample data is gathered and studied can be helpful. In the following hypothetical example, 1000 people are asked to partake in a statistical study. The study attempts to achieve market research into the juice flavor preferences of the 1000 people who are of different ages, gender and cultural background. To do this the following steps are taken:

• Create a simple survey with a few questions that can be used in the sample analysis

• Locate a suitable population sample from which to gather the data

• Of that population recruit 1000 of them to participate in the survey study

• Perform the research by having the population sample fill out the survey

• Analyze the data using statistical tools, software and/or techniques

• Draw conclusions based on the evidence presented by the sampling data

To further illustrate, data sampling helps answer questions like the following example: If 1000 people drink juice every day and have a choice of apple, tomato and grape juice what will be the affect on that sample population if orange juice is added to the selection? In this example, the dependent variable is the numbers of people selecting each type of juice, for example 700 apple, 100 tomato and 200 grape. The independent variable is the orange juice. The data sample is the number of people who drink each type of juice after the addition of orange juice.

Analysis of sample data

To further illustrate data sampling, data sets are used in statistics to deduce statistical relationships and characteristics of the sample data set and between independent and dependent variables within the sample data alone. Dependent variables are the individual records within a data set that are influenced by a change in the dependent variable. Sample data can be acquired a number of ways for example by primary or secondary research. The application and analysis of sample data can be used in many ways, some examples being double blind studies, control experiments, population surveys, hypothesis testing and more.

In the above example sample study of juice drinkers the affect of introducing orange juice to their choice of juices is the sample data. The data was collected with surveys rather than by observation(s), and the study was at one fixed point in time and not a over time. Thus, studies can be limited or extensive depending on what sample data is collected and how it is analyzed. How data is gathered and an analyzed can thus have a decidedly significant affect on the quality of the data and the extent of its use.

For example, the data can be analyzed simply for summary statistics such as X amount of people would drink orange juice if the given the choice out of 4 juices and Y amount of people would drink grape juice. However, the data can be further analyzed for accuracy using regression analysis in which alpha, beta and P-values are determined to aid in determining the validity of the statistics garnered through the sample data. These values help determine correlation, falsification due to pre-existing beliefs being tested, and probability of accuracy. Another way the information can be used is in cluster analysis in which the patterns of information are grouped for the purpose of assessing additional relationships. For example, the number of grape juice drinkers who would choose orange juice if grape juice were not available.

Sources:

1. http://home.ubalt.edu/ntsbarsh/Business-stat/opre504.htm#rrTopiinbuSt
2. http://brent.tvu.ac.uk/dissguide/hm1u3/hm1u3text3.htm
3. http://www.businessdictionary.com/
4. http://www.investorwords.com/
5. http://dictionary.babylon.com/

Uncontrollable Market Forces of a Marketing System

Image attribution: Renjith Kishnan. Standard royalty free license

Uncontrollable macro environmental forces of a marketing system include variables outside the scope of a marketing campaign's control. Marketers account for these factors before hand by gathering data, product testing, statistical analysis, forecasting etc., and this helps reduce the risk of uncontrollable macro-environmental factors. Some of these uncontrollable macro-environmental forces of a marketing system are described below.

• Consumer behavior

Consumer behavior is part of the marketing system and is often proselytized to using a marketing campaign. However, the accuracy of game theory, and consumer behavior formulas such as the Fishbein Model, statistical modeling, Luce models, Logit models etc. are limited in scope according to a study by John H. Roberts and Gary L. Lillien called 'Explanatory and Predictive Models of Consumer Behavior.'

• Economic environment

The economy at large is far greater than any single business or industry to control, and is consequently an uncontrollable macro-environmental force of a marketing system. The economy is part of a marketing system because it is what allows that system to functionally operate. If an economy experiences slow growth, or adverse financial conditions it can put pressure on both consumers and business marketing campaigns.

• Cultural norms and mores

Cultural zeitgeist, beliefs, and trends can change and this may happen more or less frequently depending on the political and social structure of that culture. Since these too are often larger than any single marketing campaign, there is certainly an element of uncontrollability when relying on such norms and mores to guide marketing decision in the marketing system in which commerce and culture exist side by side.

• Legislative mandates

A nexus of lobbying, power, political objectives, and goals of the legislative body influence the making of law. In terms of marketing, legal regulation is an uncontrollable macro-environmental force of a marketing system in so far as lobbying can fail and that not all regulation is designed to favor marketers. As regulatory policy changes, marketing projects may see a need to adjust in order to benefit under new and new regulations.

In summary, macro environmental conditions or forces can affect marketing in an uncontrollable way.  These uncontrolled variables can be studied and minimized however, thereby allowing greater control or less uncontrollability.

To illustrate the previous point, according to an article in the Journal of Macromarketing called 'Wisdom: Exploring the Pinnacel of Human Virtues as a Central Link from Micromarketing to Macromarketing', micro-marketing decisions on a large scale have an impact on the macromarketing environment.

This implicates micro-marketing as has having some control over what is considered uncontrollable at the macro level. Moreover, the article in the Journal of Macromarketing also claims uncontrollable variables caused by poor marketing decisions can be influenced by adjustments to 'knowledge shortcomings'.

Sources:

1. http://bit.ly/hweEJc (Roberts and Lillien)
2. http://bit.ly/ew1acj   (Managerial Marketing)
3. http://bit.ly/fQq5t9   (Journal of Macromarketing)

Oil commodities technical analysis

On Tuesday, June 14 'Commodities Mansion' forecasted 'choppy range bound'  prices of light sweet crude oil. However, it was also noted if the price broke the $95 resistance level a further drop would be indicated. What does this mean? Resistance is the price at which a financial instrument, in this case oil commodities futures tests by not extending past that point. In other words, after not breaking through the value of $95 more than once it becomes a resistance point.

On Wednesday, June 15 WTI Crude Oil closed at $95.19 according to Bloomberg News. This price is very close to the resistance level discussed by Commodities Mansion in the above technical analysis video. The price of oil seems to have recently been correlated with broader market performance rising and falling with it. Moreover, since the major indexes such as the S&P 500 fell today, so it seems did oil. 

A question becomes does the breaking of low price resistance carry the same weight if the broader market also encourages it? One would think so especially since a market resistance point is also near; approximately 1,260 for the S&P 500 and 11,500 for the Dow Jones Industrial Average. If index resistance levels are also broken soon after the bearish oil technical oil indicator of $95 per barrel is breached, then the indicator seems stronger and speculators have greater reason to sell.

If the indexes don't fall past their resistance levels, the price of light sweet crude oil appears more likely to continue range bound trading even if it drops below $95. This is because the broader and possibly influential market indexes pattern may be range bound in the short-run until it resolves whether or not more selling is due.  

Good Excuses for Missing Work

Image attribution: Freedigitalphotos.net; standard royalty free license

Workers the world over miss work sooner or later some of which have paid sick and vacation leave built into their contracts. Even so, missing work still has to be requested and/or justified to an employer in which case good excuses for missing work can come in handy. Sometimes having excuses for missing work isn't enough and the method with which the excuse is used can become invaluable in making the most of the excuse.

Some of the real excuses that might sound good, may not be that typical, but are nevertheless good excuses for missing work. For an excuse to be 'good', it should be real, valid, not overused and plausible. However, one's work situation may be unique; it may be high season, or your office is short staffed and supervisors are counting on you to get the job done. In this case it may be important to utilize some 'office diplomacy' or 'tact' when taking sick leave. 

Below are a few of the less common excuses for missing work, followed by an explanation as to why they are good excuses and how they work. After that are some tips and techniques that might help make your excuse more bona fide. When sick days and vacation days get overused, coming up with genuine and good excuses for missing work can be slim pickings. There are different types of excuses for missing work: real excuses that are good, excuses that seem real but aren't, and bad excuses. Essentially, the first category is the one that will get you into the least amount of trouble; these are the excuses that are good because of their legitimacy.

7 excuses for missing work

1. Evicted from home: So maybe your personal life is a mess and you haven't paid your rent or mortgage. An eviction notice can be a great excuse to miss work especially if you can't find your clothes.

2. Yoga injury: This one can be used more than once due to the many types of exercise available. Sports and exercise injuries are common and demonstrate that you the employee are actually trying to improve your life and be pro-active in becoming a better person.

3. Parasites: Parasites are small creatures that feed off a host body. Lice can be a good excuse for missing work because they can spread and chances are no one else in your work place are going to like the idea of being exposed to them.

4. Police investigation: Police investigations can take time and sound serious. An explanation of the police investigation is not needed unless asked because it's not really your bosses business unless you're the one being investigated.

5. Jury duty: Jury duty requires one to attend court by law to perform civic responsibilities. You have to be a Citizen for this excuse to work and it can get you up to a week off if it's a lengthy criminal trial. Better yet, you can get vacation pay and jury duty pay simultaneously.

6. Poverty stricken foster child: If you take care of proxy children or support children overseas through foster sponsorships, they can return the favor by visiting you and getting you off work.

7. Car issues: Car issues are quite common so are a realistic excuse for missing work. Flat tires may be good for being late, but a failed safety inspection can get you the day off especially if its something that has to be done right away. Brakes that are about to fail, a muffler that is dragging against the ground, or a broken serpentine belt all require fast attention and take around a morning or longer to repair.

Another final reason that may work on occasion is hospitalization or dental surgery.  This doesn't happen quite often, so can't really be overused unless your getting bypass surgery or something requiring long periods off work. Depending on the type of hospitalization, you may not want to disclose the type of hospital; for example, if it is a mental hospital. 

There are many reasons for hospitalization, minor surgery, wisdom tooth removal, root canals, rehabilitation, physical therapy etc. are all incapacitating or require time, and may even require advance notice to the boss because you may not be able to speak after surgery.

Missing work tips and techniques: 

Missing work is a bit of an art especially if you need to do it a lot. Demonstrating to the boss that you're still dedicated to getting your job done and taking time off for various reasons can be challenging in high stress work environments. Knowing which excuse to use and when is important as some excuses work better at different times. In other words, there are lots of excuses, some more creative than others and an excuse that fits the occasion can be just right.

• Keep it real: If it sounds like a lie, the boss will become suspicious. For example, yard city ordinances work better in summer than winter, and to use kids as an excuse you actually have to have some. The best excuses are real and honest.

• Use tact: If you're using an excuse you know won't be received well, but is genuine, it may be wiser to add some flare to it with a modest amount of embellishment, and emphasis on the reality of the situation.

• Look like hell: When you go in the next day wear less make up, get bags under your eyes, or if you have allergies eat foods that cause a mild physical reaction like hives. What's more, an allergic reaction can also get you the day off without a Doctor's note.

• Wear mismatching clothes: Unflattering clothes and colors that don't look good on you tell your colleagues something is wrong.

• Bring a box of tissues to work: There's no harm in playing up a cold or flu with a few sniffs and nose blows here and there. It adds authenticity to the excuse for missing work.

• Create a diversion: An unfortunate workplace event can be just the thing to take attention away from your horrendous attendance at work. Hopefully you have another pair of pants to replace the ones with hot coffee on them, or a band-aid for that monster paper cut.

Are martini glass logos a good idea?

Corporate logos on martini glasses are a form of advertising ideally backed by strong marketing and marketing research. This article will discuss the corporate logo on Martini glasses in terms of 1) target demographic, 2) logo objective and 3) product branding. The decision to utilize corporate logos may first be carried out in a sample population such as a city or town prior to expanding the campaign, and after researching the feasibility, and affect the martini glass logo advertising campaign has. The reason for testing the advertising on a smaller group is to validate the statistical, quantitative and/or qualitative market research.

 Image source: 'Kyle May', CC BY SA-2.0

The martini drinker: What demographics is the logo aimed at

The objective of utilizing martini glasses with brand names should conform with marketing and corporate goals. For example, increased sales of a product, higher product exposure, creation of brand image etc. Since martini glasses are quite specific in usage, location of use and demographic, the product should be aimed at those consumers most likely to drink martinis. Some attributes of martini drinkers are the following:

• Pro-alcohol

• Over 21 years old

• Worldly or informed

• Drinkers of Gin or Vodka

• Partial to complimentary products ex. Napkins

These are just a few common aspects that may apply to martini drinkers that illustrate who corporate logos on martini glasses would appeal to. Moreover, just are the persons more likely to drink martinis, there are also those who are less likely to drink martinis such as the following:

• Children

• Non-drinkers 

• Religious Muslims

• Health advocates

Thus the corporate logo on martini glasses targets martini drinkers who tend to fit into a specific demographic grouping. This helps eliminate the range of products less likely to benefit from martini glass logos and assists in clarifying the objective of the logo. The objective of the logo should not only conform to the identified target market but also influence or appeal to that group. Otherwise, the target market has been identified but advertised to incorrectly.

The logo: Defining the objective of the martini glass

The objective of a martini glass logo is obviously advertising and marketing, and perhaps less obviously to indicate the type of glass, country of origin and other manufacturing information. Generally however, the objective is creating brand awareness. Determining how best to generate brand awareness involves 1) analyzing the market 2) weighing pros and cons and 3) implementation of the advertising campaign. These factors should ideally be considered prior to distribution of martini glasses. Some possible objectives to consider when utilizing logos on martini glasses are listed below:

• Affect on revenue

• Congruence with corporate branding as a whole

• Increases in brand loyalty

• Improved consumer awareness

• Positive cost/benefit proportions and profit margin

• Enhanced product perception

After analyzing the market, and performing a SWOT analysis it should become more clear to a company's marketing team how useful a logo on martini glasses is likely to be. Moreover, research should be aimed at measuring the liklihood of the above objectives being achieved. The research may involve product testing, consumer surveys, branding cost comparisons, production and logistical feasibility studies and so forth. If the it becomes evident that the corporate objectives, applicable time horizon and/or strategic objectives of a company can benefit from the martini glass logos, it may be worth while to implement a campaign that includes the glasses.

Product branding: How martini glass logos affect the product

The martini glass may be branded in a number of ways and the martini glass itself doesn't necessarily have to have a logo on it. If a company is giving away free glasses to promote itself then a logo may not be needed. Moreover, if a business is promoting an event or providing financing of an event, then the martini glasses along with martinis itself be advertising enough. Some companies that might benefit from use of martini glasses and or logos on martini glasses are the following because they are more likely to appeal to the aforementioned demographic.

• Alcohol producers

• Bars and hospitality venues

• Event marketers

• Corporate sponsors

• Artists, artisans, or glass blowers

• Martini glass distributors

The above list is not necessarily exhaustive of who might benefit from corporate logos on martini glasses but is indicative of the most obvious of beneficiaries. To go beyond these types of companies could involve more marketing risk and hence necessitate more market research that costs money. This is not to say a whole new way of bringing a somewhat un-marketed product to the forefront of a new marketing campaign isn't possible. For example, consider the image of the martini itself. A cocktail among many it has acquired a reputation through history and film. Without that type of branding, the martini might very well have no significant pre-existing brand value at all.

In other words, martinis themselves were branded long ago and add value to any branding on top of the martini's existing brand equity. How the martini is portrayed, its brand image and when it is used can all influence the affect of the martini glass logo. Consequently, putting a corporate logo on a Martini glass would ideally be considered not just in terms of appearance but also context. Other factors relevant to and surrounding the martini glass' logo include a number of aesthetic features.

• Glass shape

• Color and size of the martini glass

• Style and thickness of the glass

• Setting in which the glass is used ex. Art exhibit

• Sponsorship of the event in which martini is used

• Free distribution of the glasses

Summary

Martini glass logos are a form of advertising that may or may not be conducive to a particular company's marketing objectives and brand image. Specific demographic groups are more likely to be influenced and/or persuaded by martini glass logos than others. The objectives of martini glass logos should be clearly defined and identified prior to ascertaining the forecasted benefits of their use. 

These possible benefits can be determined through market research. Market research in tandem with corporate strategy an goals can help establish feasibility, parameters, features and distribution of the martini logos in concept before implementation of the actual advertising campaign, thus reducing possible risk to the company's objectives and advertising goals.

Marketing: Understanding segmentation variables

To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics in marketing research so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Moreover, market segmentation variables define both how a demographic will be segmented and categorized. Market segments can also be divided into sub-categories or branched-categories in which additional variables are added to sub-sets of the market segment for more elaborate identification.


What segmentation variables are

Segmentation variables help marketers and/or market researchers refine target marketing and market segmentation to pre-determined goals and/or inquiries regarding the market segment. These variables can include and/or exclude a wide range of data depending on what the market researcher wants to find out. Some commonly used market segmentation variables include age, gender, and zip code. Segmentation variables span a range of functions, intents and descriptions and include the following types as also illustrated at Netmba:

• Geographic variables ex-zip code, area code, city

• Consumer behavior ex-spending habits, favorite products

• Interest information ex-attitudes, beliefs, lifestyle

• Population information ex-gender, age, income, occupation

Illustrating further, in times when basic demographic is not enough to segment a market additional variables are needed to further focus the categorization of potential and existing client profiles. In such cases the marketer may want to know about product preferences, income level, occupation, and other more detailed aspects of market segmentation. For example, if a marketer knows clients for ABC store generally come from 3 surrounding zip codes a geographic market segmentation is defined. However, other than this no additional information is available about the market. Questions such as why they shop at ABC store, when they shop there, and what they shop for may also be useful to the market researcher.

How segmentation variables are used

Market segmentation variables are used to answer specific questions and provide more detailed information about existing and potential clients in the context of business applications. To use the variables correctly proper statistical methods, and data collection techniques should be used so as to not disproportionately gather information, incorrectly collect that information, or haphazardly analyze and utilize it. 

Good segmentation variables address the budget, product, brand equity, revenue goals and other important aspects of business operations. If the wrong variables are used in the wrong way during market segmentation, the questions answered may not be appropriate for the company's objectives. Market segmentation variables are thus used in the following ways:

• Assist in determining market information

• Help companies identify who to market to

• Provide criteria to more specifically categorize existing market(s)

• Are used in statistical analysis and/or additional market research

• Allow companies to fine tune their marketing budgets and expenditures

To illustrate further, consider the ABC company once again. ABC company wants to find out three things, 1) who buys its products, 2) why these people buy their products and 3) what products they buy. In order to do this ABC company first defines its goals i.e. to answer these 3 questions, then creates a way to do this, ie. data gathering. Following this the data collected is analyzed using tools like histograms, regression analysis, and further qualitative and/or quantitative research. When the information is compiled and analyzed, a more detailed overview and understanding of the company's market should be clear.

Summary

This article has discussed market segmentation variables in terms of what they are and how they are used in the context of business decision-making. Moreover, market segmentation variables are data that reflect unique and specific aspects of a company's existing and/or potential market. These variables are gathered using information acquisition techniques, Following this, the information is processed through analysis designed to answer and address a businesses key objectives and concerns. Once the information is analyzed and presented, the company may then have an increased probability of making more sound financial, operational marketing and advertising decisions.

Sources:

1. http://www.businessplans.org/Segment.html
2. http://www.netmba.com/marketing/market/segmentation/

Consumer Buying Behavior and Market Segmentation

The relationship between consumer behavior and market segmentation reflects the interaction between a marketing program and consumer psychology. Marketers seek to identify large population groups known as 'market segments', and then understand consumer behavior within these market segments  in order to develop a marketing campaign.

Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments. 

Consumer behavior

To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:

• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)

Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.

Market segmentation

Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:

• Age
• Income
• Gender
• Ethnicity
• Religion

In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.

To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.

Integration of consumer behavior with segmentation

In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.

Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.

This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1)  This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.

• Attitude
• Intention
• Reasoning
• Mood
• Activity

In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.

Sources:

1. http://bit.ly/cwRX7X (Federal Highway Administration consumer research)
2. http://bit.ly/acrFFa (USC Marshall: Lars Perner: Consumer behavior)
3. http://bit.ly/9Har7j (Library of Congress: Market Segmentation)
4. http://bit.ly/bh2kfA (Wisconsin School of Business: Bill Shepard)

Is 'National Default' From Not Raising the Debt Ceiling a Scare Tactic?

Today Federal Reserve Board Chairman Ben Bernanke spoke in front of the 'Committee for a Responsible Federal Budget' annual conference. His advice; using the debt ceiling as a political tools will cause more harm than good for the economy and U.S. fiscal credibility because of the potential risk of debt "default".

Rick Santelli of CNBC provides information on the other side of the story. Specifically, he states default refers only to non-payment of bond holders, for which there is enough money regardless of debt ceiling limitation. This is a possible suggestion that not raising the debt ceiling doesn't necessarily have to lead to  default. The implication is the debt ceiling default is a scare tactic.

Professional insurance for U.K. psychotherapists

Within the United Kingdom, liability insurance is requisite for legal practice of psychotherapy. Liability insurance protects therapists in the case of lawsuit and provides financial recourse for legal costs and in the event of a successful malpractice suit against the therapist. 

Lawsuits may be filed for a number of reasons for which the psychotherapist should be legally insured for. The purpose of lawsuits against psychotherapists is to protect clients against professional wrongdoing. A few of the reasons a psychotherapist may be sued include the following:

• Sexual misconduct by therapists

• Violation of confidentiality 

• Professional negligence

• Misuse of language including slander and/or libel 

• Practicing without a license

UK Psychotherapist insurance providers:

Psychotherapists employed by the National Health Service (NHS) of the United Kingdom may already have liability insurance as part of an employment benefits package, in which case private liability insurance may not be necessary. However, in the case of practitioners not working with an employer provided health insurance, private liability insurance may be acquired from the following sources:

Howden Insurance Brokers

An international insurance provider with a London office located at Bevis Marks House, Bevis Marks, London, EC3A 7JB 44(0)20 0113 251 5011. The company specializes in liability insurance and is one of two insurance providers listed by the UK council for psychotherapy.

Towegate Professional Risks

This is another insurance provider listed by the UK council for psychotherapy and claims to be "the largest independently owned general intermediary" within the UK. The company can be reached by calling 44(0)20 0113 391 9598, by email at professionalrisks@towergate.co.uk. or by mail at Towergate House, 5 Airport West Lancaster Way, Yeadon, LS19 7ZA.

Professional Indemnity Insurance (PI)

A provider of compulsory professional indemnity insurance within the United Kingdom. The contact information for this insurance provider is 44 (0) 1323 648000 by phone and info@professionalinsuranceagents.co.uk by email. The physical address for this company is Lion Works, Sidley Raod, Eastbourne, East Sussex, BN22 7HB.

Sennet Professional Indemnity

An insurance intermediary that's main service includes professional indemnity insurance. The contact information for this company is 01227 781200 by phone and info@sennet-insurance.co.uk via email. The mailing address for Sennet Professional Indemnity is Sennet Insurance Services Ltd, 1 Oaten Hill Place, Canterbury, Kent CT1 3HJ.

The above insurance providers specialize in indemnity insurance but are not inclusive of all the insurance providers within the UK that provide such insurance. For a more complete list of insurance providers that may offer liability and/or indemnity insurance to psychotherapists one may consult the e-insurance directory.

With a growing awareness of legal rights and protections among clients of psychotherapists, in addition to demand for psychotherapy services, legal issues surrounding the field of mental health are a relevant concern. In the United Kingdom both private and public psychotherapists are to be insured by law. Such insurance is typically termed professional liability and/or indemnity insurance and can protect a psychotherapist from potential bankruptcy and large costs associated with legal defense.

Several UK insurance providers provide insurance suitable for psychotherapists and discounts may be obtained through membership in other organizations such as the UK council for psychotherapy. Researching how much insurance is legally necessary, cost comparisons, insurance provider claim statistics and financial solvency in addition to coverage benefits may be advisable in obtaining the best deal on professional liability insurance.

Sources:

1. http://www.psychotherapy.org.uk/registrants_benefits.html
2. http://www.howdenins.com/
3. http://www.towergateprofessionalrisks.co.uk/
4. http://www.professionalinsuranceagents.co.uk/
5. http://www. sennet-insurance.co.uk
6. http://www.e-insurancedirectory.com/indemn.php