The Alignment Of Compensation And Business Strategies Commerce Essay

The Alignment Of Compensation And Business Strategies Commerce Essay Compensation is a key element in the success of any business. Although compensation plans were not always seen as a strategic business initiative, their huge impact on a companys bottom line, recruiting, retaining and motivating people has led to compensation design being considered an important element to achieving success (OConnell, 2007). The alignment of compensation business strategies It is essential that a fair, competitive and attractive compensation plan is created in order to ensure the future success of the company. If the compensation plan is carried out properly it can improve organisational effectiveness, support human capital requirements of a business, and motivate and reward achievement of key corporate strategic and financial goals (OConnell, 2007: 20). It is thus essential that compensation plans are well thought out and effectively designed. Compensation is the answer to attracting, retaining and motivating employees who have the necessary competencies to carry out the business strategy and handle greater responsibilities (Milkovich, Newman Gerhart, 2007). Managers must take note of the rewards that motivate their employees. If this is not done, it may result in a mismatch between the strategies being used by managers to motivate their employees and the motivational rewards that the employees prefer (Arnolds Venter, 2007). This mismatch, as well as failure on the part of managers and employees to reach common ground in the pursuit of organisational objectives, can result in firms failing to successfully implement their business strategies. Employees will perform at a low level, doing only what is least expected of them when the reward systems are not aligned to their needs. They will not be motivated to put in extra effort so that the organisations goals can be achieved (Arnolds Venter, 2007). It is therefore important for all firms to regularly assess the rewards that motivate employees. Different organisations have different compensation policies in place. Matching compensation policies to business strategy leads to greater organisational performance (Montemayor, 1996). Some organisations are quick to introduce a new compensation program based on what they have heard about it. The problem is that it may not fit with their organisations strategic direction. Only programs that can move the organisation further along its strategic path should be identified and implemented (Kaplan, 2007). Ultimately, compensation strategies seek to either decrease costs or increase revenues relative to competitors (Milkovich et al, 2007). Compensation professionals play an important role in helping organisations put their business strategies into effect by introducing appropriate compensation plans. Compensation experts need to be at the focal point where strategy, organisational effectiveness and human capital management converge (OConnell, 2007: 25). It is important that they have a clear understanding of the business, the organisational issues and the direction in which the company is headed. Organisational, employee and business needs must be balanced with the financial and strategic goals of the company. Only then can the right compensation strategy be developed to motivate, reward and sustain high levels of performance. When this balance is found, a company can effectively use compensation to execute and achieve desired business results (OConnell, 2007: 25). For example, if a companys strategy is to be innovative, the strategy will focus on new products and a short response time to market trends. The compensation strategy must be tailored to align with the business strategy. A supporting compensation strategy will thus place less emphasis on evaluating skills and jobs and more emphasis will be placed on incentives designed to encourage innovations (Milkovich et al, 2007). A cost cutting business strategy will focus on efficiency and doing more with less. To support the business strategy, the compensation policy will focus on competitors labour costs, variable pay will be increased and productivity will be emphasised (Milkovich et al, 2007). A company with a customer-focused business strategy will focus on pleasing customers and employees will be paid according to how well they do this. The compensation strategy will thus include customer satisfaction incentives (Milkovich et al, 2007). In order to do better than its competitors, a firm m ust come up with ways in which it can add value by matching its business and pay strategies. When business strategies change, pay systems must also change (Milkovich et al, 2007). Organisations want to see the returns that they are getting from paying incentives, benefits and even base pay. Companies are starting to realise that by sharing in the economic gains of achieving targets, they keep employees motivated to reach increasingly difficult goals. When there is a clear line of sight between work and reward, employees will work harder to achieve the goals and receive the rewards (Ulrich, 1997). It has been suggested that performance-based pay works best when there is success to share (Milkovich et al, 2007: 54). An organisation can pay larger bonuses and stock awards when their profits or market share is on the rise. By paying bonuses fairly, employee attitudes and work behaviours improve, which in turn improves their performance (Milkovich et al, 2007). One of the major challenges in managing total compensation is to understand how the pay system can add value and create a more successful organisation. Internal alignment Internal alignment refers to comparisons among jobs or skill levels inside a single organisation. Jobs and peoples skills are compared in terms of their relative contributions to the organisations business objectives (Milkovich et al, 2007: 19). Internal alignment is not only concerned with the pay rates for employees doing equal work, but also for those employees doing different work. One challenge that managers face is how to determine differences in pay for people doing different work (Milkovich et al, 2007). An employees decision to stay with the organisation, to become more flexible by investing in additional training, or to seek greater responsibility is influenced by the pay that they receive (Milkovich et al, 2007: 19). A compensation system should not stand in the organisations way of retaining talented and productive employees. One of the main causes of employee turnover is inadequate compensation (Grobler, Warnich, Carrell, Elbert Hatfield, 2006). Tensions will result if employees feel that they are not being treated equally and this may cause employees to reduce their future efforts, change their perceptions regarding rewards for their efforts or leave the organisation (Grobler et al, 2006). Managements goal is to minimise turnover and lost production due to feelings among employees that they are not being compensated equitably. In order to ensure greater equity among jobs, a process known as job evaluation may be embarked upon, whereby a systematic relationship between the pay scales for jobs within an organisation is created. Job evaluation is the systematic determination of the relative worth of a job within the organisation that results in an organisations pay system (Grobler et al, 2006: 404). When comparing jobs, the following factors are taken into account: the skills needed to complete the job, the efforts needed to perform the job, the responsibilities of the job holder, and the working conditions of the job (Grobler et al, 2006). Job evaluation is preformed in order to develop a system of compensation that employees will consider to be fair, and in this way internal consistency among jobs is obtained. Internal consistency thus refers to the relationship between the pay structure, the design of the organisation and the work (Grobler et al, 2006). It is important to design a pay system that supports the work flow, is fair to employees and directs their behaviours toward organisation objectives (Grobler et al, 2006: 404). Many organisations are dividing their employees and creating different compensation plans for the different employee groups. For example, the executive team will be compensated one way, while a different approach will be used for the sales team, and yet another set of rules will apply to those working in the admin department. In todays business environment, a one-size-fits-all approach is no longer effectiveness (OConnell, 2007). Compensation methods have undergone a number of changes over the years such as the use of performance pay and other contingent systems of reward, the flattening of pay scales with fewer but broader pay grades and flexible cafeteria-style benefit systems (Brewster, Carey, Grobler, Holland Warnich, 2008). This new approach to compensation is known as strategic pay and is much more suitable to todays changing organisational environments and structures. Strategic pay flows from and implements an organisations business strategy. The old methods of compensation were associated with job-evaluated pay structures, time and seniority (Brewster et al, 2008: 188). These old methods were appropriate for hierarchical organisations who operated in a stable environment. Internal pay structures must be designed in such a way that employees will be motivated to achieve the organisations objectives. There must be a clear line-of-sight between each job and the objectives of the organisation. It is also essential that the structure is fair to all employees (Milkovich et al, 2007). To motivate employees, management can build the following ideas into their strategic pay structure: increase the proportion of pay contingent on performance, increase the potency of variable pay by making base salaries only moderately competitive, broaden the range of incentive schemes to include linking pay to group and organisational performance as well as individual performance, identify new performance measures of business success, and introduce flexibility into compensation plans so that rewards extend beyond monetary ones to include prizes and recognition (Brewster et al, 2008: 188). Pay structures vary among organisations depending on the number of levels within the organisation, the pay differentials between the levels, and the criteria used to determine the levels and differentials i.e. work content and its value. People are usually paid more if their job requires more knowledge or skills than another job, if their working conditions are unpleasant, or if their job adds a great deal of value. One reason for pay differentials is to motivate employees to work towards promotion and a higher-paying level (Milkovich et al, 2007). Internal structures are shaped by both external and organisation factors. External factors include: economic pressures; government policies, laws and regulations; stakeholders; and cultures and customs (Milkovich et al, 2007: 75). Organisation factors include: strategy; technology; human capital; HR policy; employee acceptance; and cost implications (Milkovich et al, 2007: 75). With regards to economic pressures, one job is paid more or less than another because of differences in relative productivity of the job and differences in how much a consumer values the output (Milkovich et al, 2007: 76). It will only be worthwhile to employ an additional worker if they can produce a value equal to the value of their wage. This is referred to as marginal productivity (Milkovich et al, 2007). The supply and demand for labour, products and services all affect internal structures. Organisations are constantly forced to redesign their work flow and employees must continuously learn new skills in order to keep up with changes in competitors products and customers tastes. Unpredictable external conditions require pay structures that support agile organisations and flexible people (Milkovich et al, 2007: 76). Government policies, laws and regulations also have an impact on the internal pay structure. Our law gives everybody the right to fair compensation. This is also known as the right to a living wage. Laws have also been put in place to govern minimum wages (Brewster et al, 2008). Pay-related legislation tries to achieve social welfare objectives by regulating economic forces (Milkovich et al, 2007). The government has influenced compensation by legislating pay levels, hours of work, pay for overtime and holidays and non-discriminatory pay practices (Grobler et al, 2006: 187). The Basic Conditions of Employment Act has a direct impact on a companys compensation strategy. Unions, stockholders and political groups also influence the internal pay structure. In order to promote solidarity among members, unions generally prefer small differences among jobs and seniority-based promotions. Stockholders compare the salaries paid to executives with the salaries paid to others in the organisation. Stockholders are interested in this difference (Milkovich et al, 2007). If the pay structure is not aligned to the organisations strategy it can become an obstacle to the achievement of the organisations goals. Another factor that has an impact on internal structures is human capital. Human capital refers to the education, experience, knowledge, abilities and skills required to perform the work (Milkovich et al, 2007: 78). The technology used will influence the organisational design, the work that needs to be performed, and the skills or knowledge that is needed to perform the work (Milkovich et al, 2007). The organisations other HR policies also have an impact on the internal pay structure. The more levels an organisation has, the more promotions it can offer, but the pay differences between the levels may be smaller. It is believed that when promotions take place often, even if they do not include pay increases, employees develop a sense of career progress (Milkovich et al, 2007). Some companies develop talent from within the organisation. This also se rves to retain top talent. These candidates are promoted when job vacancies arise. The result is that they do not have to employ expensive talent from outside the organisation. It is also easier to manage these individuals as they are already aligned with the culture and business priorities of the organisation. This leads to a greater return on the companys investment (Barnes, 2009). Another important factor influencing the internal pay structure is whether or not the employees involved accept it. In order to assess the fairness of their pay, employees compare the pay that they receive to that which others receive for doing different jobs in the same internal structure. They also look at what others are paid for doing the same job at competing employers (Milkovich et al, 2007). The procedures for determining the pay structure must be fair as well as the pay structure itself. It has been suggested that employees and managers will accept low pay if they believe that the way in which the pay was determined is fair. It is likely that the pay procedures will be considered fair if they are consistently applied to all employees, if employees participated in the process, if appeals procedures are included, and if the data used are accurate (Milkovich et al, 2007: 80). Pay structures do not stay constant. They change in response to external factors. An organisation will achieve much better results if the structure is aligned. The structure must be perceived as fair by the employees and it must motivate them to achieve the organisations goals. If there is a big pay differential between an entry level job and the highest level job in an organisation, it can encourage employees to stay with the employer and increase their training and experience. It can also result in greater co-operation with co-workers and for employees to look for more responsibility within the organisation (Milkovich et al, 2007). External competitiveness External competitiveness refers to the level of pay that an organisation offers in comparison with its competitors (Montemayor, 1996). This has a huge impact on the attraction and retention of talent as well as on labour cost objectives. With a high pay level, the organisation will be better able to acquire a competent workforce. By increasing the pay level, total labour costs will increase but it may also result in improved labour costs per unit (Montemayor, 1996). The efficiency wage theory states that paying above market levels can promote employee motivation that would offset any increment in labour costs (Montemayor, 1996: 891). The pay systems of many organisations are market-driven i.e. based on what competitors pay. In the hope of attracting the best applicants, some organisations set their pay levels above that of their competitors (Milkovich et al, 2007). In order to compete with the external market, organisations must ensure that the pay that they are offering is sufficient to attract and retain employees. Employees are likely to leave an organisation if they believe that their pay is not competitive in comparison to what other employers are offering. Organisations must also ensure that they control their labour costs so that they can supply their products and services at a good price and remain competitive in the global economy (Milkovich et al, 2007). It is essential that when companies prepare their business strategies they decide how they are going to compete in the marketplace. For example, they can choose to compete on price, or they may prefer to differentiate themselves based on products or ser vices, they could even decide to segment the market and only focus on a particular group of buyers. Understanding the competition is key (Kaplan, 2007). Employers can better differentiate themselves from their competition by introducing learning and development programs and creating a fun and flexible work environment. These are also known as relational rewards. These initiatives will enhance employee commitment to the organisation (Kaplan, 2007). Employers that are highly-rated usually receive more employment applications as people want to work for the best organisation. The high ratings also result in improved retention of staff and greater profitability as committed employees usually provide better customer service (Kaplan, 2007). Job applicants who receive more than one offer will compare the offers and the pay scales. More weight is often placed on the salary being offered rather than on the other types of compensation, like benefits and intrinsic rewards (Grobler et al, 2006). In order to remain competitive within the local labour market, employers usually offer salaries that are similar to those offered by competitors. Employers thus need to know what the going rate is for jobs within the local labour market. Wage surveys as well as published market data can be used to determine the average salaries for various positions. These methods assist the organisation in maintaining external consistency with other organisations (Grobler et al, 2006). An important strategic decision must be made as to whether the organisation should mirror what its competitors are paying, or whether it should design its own pay structure that differs from its competitors but is aligned to the business strategy. The pay level can be set above, below or equal to that of competitors. The mix of pay forms must also be determined relative to those of competitors (Milkovich et al, 2007). The following three factors shape external competitiveness: labour market factors, product market factors and organisation factors. Together these factors influence pay-level and pay-mix decisions (Milkovich et al, 2007). As mentioned above, organisations usually claim to be market-driven. Looking at the demand and supply of labour gives one a greater understanding of how the markets work. The demand side deals with the actions of the employer i.e. the number of new employees they require, and what they are willing and able to pay them. The supply side deals with the potential employees i.e. their qualifications and the pay that they are likely to accept (Milkovich et al, 2007). The market rate is found at the point where the demand for labour meets the supply of labour. In the short run, the only way that an organisation can change its level of production is by changing its level of human resources. The other factors of production, such as technology, capital and natural resources are fixed in the short run. The marginal product of labour is the additional output associated with the employment of one additional person (Milkovich et al, 2007: 207). However, each additional employee hired will produce less than the previous employee due to the fact that the factors of production are fixed. Each employee thus has fewer resources to work with. The additional amount that each new employee produces is known as the marginal product (Milkovich et al, 2007). When the marginal product is sold, the money that is generated from the sale is known as marginal revenue. Employers will hire new staff until the marginal revenue generated by the last hire is equal to the costs associated with employing that person (Milkovich et al, 2007: 208). At this point the employ er is maximising their profits. Therefore, in order to determine how many people to employ, a manager must establish two things: the pay level that is set by the market forces and the marginal revenue generated by each new employee (Milkovich et al, 2007). This, however, is not so easy to do in reality. With regards to labour supply, the model assumes that many people are seeking jobs, that they possess accurate information about all job openings and that no barriers to mobility exists (Milkovich et al, 2007: 209). It is not so simple in the real world. For example, the supply curve slopes upward and shows that as pay increases more people will want to take jobs. In the case where unemployment is very low, supply may not increase with offers of higher pay as everybody has a job (Milkovich et al, 2007). The model provides a useful analytical framework but oversimplifies reality. In certain instances employers pay more than the market-rate. For example, if there are negative elements to a job such as very expensive training, small chances of success, weak job security and unpleasant working conditions, employers may decide to pay higher wages in order to compensate for the negative characteristics. This is referred to as compensating differentials (Milkovich et al, 2007). As mentioned above, in terms of the efficiency wage theory, high wages can in fact increase efficiency and lower labour costs. This can be achieved by attracting more qualified applicants and encouraging existing employees to work harder or smarter. It is assumed that the pay level determines effort (Milkovich et al, 2007). An organisations ability to pay is also an important issue. The greater an organisations profits in comparison with its competitors the more it is able to share with its employees. These organisations will usually pay more that their competitors and may even pay bonuses in line with their profitability (Milkovich et al, 2007). Employers can design their pay levels and mix in such a way that a signal is sent to both current and future employees as to the kinds of behaviour that they require. This is known as signaling. For example, if the organisations base pay is below the market-rate but they offer good bonuses, they may be sending a signal that employees who are risk takers are required. If the organisation pays the market wage and offers no performance-based pay, a different signal is sent and different people are attracted. Signaling helps to communicate expectations (Milkovich et al, 2007). There are also two theories that help us to understand employee behaviour. A job seeker will not accept a job offer if the wage is below a certain amount irrespective of the other benefits or job attributes. This is known as the reservation wage. It may be above or below the market-rate (Milkovich et al, 2007). The second theory is the human capital theory. In terms of this theory, those who have improved their productive abilities by investing in themselves through education, training etc will earn higher wages (Milkovich et al, 2007). The next factor that shapes external competitiveness is the product market and ability to pay. To a large extent, product market conditions determine what the organisation can afford to pay its employees. The organisations ability to change what it charges for its products and services is affected by the demand for the product and the amount of competition (Milkovich et al, 2007). An employer who increases their wage level will either choose to increase its prices, thereby passing the higher labour costs on to consumers, or it can choose to keep prices fixed and pay the increased labour costs out of their revenues. If an employer is operating in a very competitive market they will not easily be able to increase prices (Milkovich et al, 2007). Lastly, organisation factors include characteristics that are unique to each organisation and their employees such as: industry and technology, employer size, peoples preferences and organisational strategy (Milkovich et al, 2007). The industry in which an organisation competes influences the technologies used (Milkovich et al, 2007: 216). Lower wages are paid in labour-intensive industries than in technology-intensive industries. When new technology is introduced within an industry, pay levels are also affected (Milkovich et al, 2007). Large organisations generally pay more than small ones. In big organisations, talented people have a greater marginal value as they are able to influence more people and decisions resulting in larger profits for the organisation (Milkovich et al, 2007). Better understanding of employee preferences is increasingly important in determining external competitiveness (Milkovich et al, 2007: 217). It is, however, difficult to measure preferences. It has been found that pay is more important to people than they are willing to admit (Milkovich et al, 2007). With regards to organisation strategy, some employers compete by adopting a low-wage, no services strategy. These organisations, such as Nike and Reebok, often rely on outsourcing to manufacture their products. Other organisations may choose a low-wage, high services strategy or even a high-wage, high services approach (Milkovich et al, 2007). Employers will pay more than their competitors if the job has a direct impact on the success of the organisation. Pay levels will equal that of competitors in jobs that have less of an impact on the success of the organisation. Evidence shows that those organisations with higher-skilled workers who make use of high-performance work practices and computer-based technology also pay higher wages (Milkovich et al, 2007). The integration of internal alignment external competitiveness In order for a compensation strategy to be successful it must blend internal consistency with market competitiveness, and must be structured to recognise the credentials, knowledge and performance of the individuals involved (Martocchio, 2001). An appropriate compensation policy is designed around the organisational structure, competitive position, leadership style and the strategic plan of the organisation (Santone, Sigler Britt, 1993: 86). A mentioned above, one of the main causes of employee turnover is inadequate compensation. The competitiveness of pay will affect the organisations ability to achieve its compensation objectives, and this in turn will affect its performance (Milkovich et al, 2007: 221). It is common for organisations to match the rates paid by their competitors. If organisations fail to do so, the existing employees will be unhappy and the organisations ability to recruit will be limited (Milkovich et al, 2007). Such a policy will result in the organisations wage costs being similar to that of its product competitors and the organisations ability to attract new employees will thus also be similar to its labour market competitors (Milkovich et al, 2007). Job evaluation, whereby the worth of a job within an organisation is determined, is performed in order to develop a system of compensation that employees will find fair. In this way, internal consistency among jobs is obtained (Grobler et al, 2006). However, if a competitor is willing to pay an employee a higher wage to do the same work, the employee will leave their current job to earn better pay elsewhere. An employer must therefore not only consider what they are willing to pay for a particular job but also what the competitors are paying for the same job. This is important if they want to attract and retain quality workers. Conclusion It is important that companies ensure that their reward systems are aligned with their organisational goals, strategy and culture. Strategic compensation allows for employees to earn incentives if they accomplish company goals. Compensation has a huge effect on recruiting, retaining and motivating people. The compensation strategy of an organisation also has a direct impact on its performance. Internal alignment and external competitiveness should be integrated when forming the pay structure. Practical Core strategy details ABSA SARS Objectives -Attract and retain high quality individuals with the optimum mix of skills, competencies and values. -Motivate and reinforce superior performance. -Encourage the development of skills and competencies required to meet current and future objectives. -Employees should share in the success of the business. -Drive productivity, service quality and cost efficiency. -Enable employees to perform at their peak. -Build a skills inflow through the graduate and youth recruitment programme. Internal alignment -Remunerate people fairly and consistently according to their contribution. -Ensure that employees of equal value are remunerated more or less equally. -Parity in the immediate environment is the most important. -Fair remuneration. -Recognition system. -Employee development. -Talent management. Externally competitive -Set cost to company (CTC) at the market median. -Reads the market regularly to strategically position itself at mid-market for fixed remuneration packages with differentiation between employees via variable reward programmes. -Differentiates aggressively between levels of performance. -Emphasis on variable pay i.e. incentive and commission schemes. -Incentive system in place. Employee contributions Direct rewards (standard): Fixed remuneration (CTC), allowances, overtime, leave encashments, variable/ performance based pay (long and short-term incentives). Direct rewards (non-standard): Commission. Indirect reward: Recognition rewards (prestige awards, service heroes, long service awards). Bursaries for employees and employee dependants. Benefits: free banking, staff interest rates, disability support fund, leave. -Fixed remuneration, allowances. -Overtime. -Government subsidies. -Incentive pay. Management -Open and transparent communication. -Objective remuneration decisions. -Show genuine care and concern. -Create an enabling environment. Rewards/ compensation strategic map LOW HIGH Objectives Attraction and retention Superior performance Quality service Please see attachment Internal al

Assignment Questions

FEDERAL TAXATION 307__________________________________ Week 2 – Chapter 4 Homework: student’s name #20. Brenda loaned her son Bart $250,000 to purchase a new home. Brenda did not charge interest on the loan. Brenda was required to recognize imputed interest income and Bart had imputed home mortgage interest expense that he deducted as an itemized deduction. Would Brenda’s and Bart’s combined total income taxes likely increase or decrease as a result of the imputed interest? #23. On July 1, 1998, when Betty was 65 years old, she purchased an annuity contract for $108,000.The annuity was to pay Betty $9,000 on June 30 each year for the remainder of her life. Betty died on March 31, 2011. What are the effects of the annuity on Betty’s gross income and taxable income for 2011? #31. Al is a medical doctor who conducts his practice as a sole proprietor. During 2011, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was fo r services provided in 2010. At the end of 2011, Al had accounts receivable of $60,000, all for services rendered in 2011.In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2012. Compute Al’s gross income for 2011† a)Using the cash basis of accounting. b)Using the accrual basis of accounting. c)Advise Al on which method of accounting he should use. #34. Color Paint Shop, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that paints automobiles. During the year, the company painted Samuel’s car and was to receive a $1,000 payment from his insurance company.Samuel was not satisfied with the work, however, and the insurance company refused to pay. In December 2011, Color and Samuel agreed that Color would receive $800 for the work, subject to final approval by the insurance company. In the past, Color had come to terms with customers only to have the insurance company negotiate an even lesser amount. In May 2012, the insurance company reviewed the claim and paid the $800 to Color. An IRS agent thinks that Color, as an accrual basis taxpayer, should report $1,000 of income in 2011, when the work was done, and then deduct a $200 loss in 2012.Prepare a memo to Susan Apple, a tax partner for whom you are working, with the recommended treatment for the disputed income. #36. Marlene, a cash basis taxpayer, invests in Series EE U. S. Government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2011 gross income. a)On July 1, 2011, she purchased a CD for $10,000. The CD matures on June 30, 2013, and will pay $10. 816, thus yielding a 4% annual return. b)On December 31, 2011, she cashed in a CD and received $11,025. She purchased the CD on January 1, 2010 and the yield to maturity was 5%. )On September 30, 2011, she cashed in Series EE bonds for $10,000. She purchase d the bonds in 2011 for $7,025. The yield to maturity on the bonds was 4. 5%. #38. Freda is a cash basis taxpayer. In 2011, she negotiated her salary for 2012. Her employer offered to pay her a total of $250,000 for the year. Freda countered that she would accept $10,000 each month for the 12 months in 2012, and the remaining $130,000 in January 2013. The employer accepted Freda’s terms for 2012 and 2013. a)Did Freda actually or constructively receive $250,000 in 2012? b)What could explain Freda’s willingness to spread her salary over a longer period of time? 42. Fran, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $50,000 at the beginning of the tax year. The partnership profits for the tax year were $240,000. Changes in their capital accounts during the tax year were as follows: Fran Gary Heidi Total Beginning balance$50,000$50,000$50,000$150,000 Withdrawals(25,000)(35,000)(10,00 0)( 70,000) Additional contributions -0- -0- 5,000 5,000 Allocation of profits 80,000 80,000 80,000 240,000 Ending balance $105,000 $95,000 $125,000$325,000In arriving at the $240,000 of partnership profits, the partnership deducted $1,800 ($600 for each partner) in premiums paid for group term life insurance on the partners. Fran and Gary are 39 years old, and Heidi is 35 years old. Other employees are also eligible for group term life insurance equal to their annual salary. These premiums of $10,000 have been deducted in calculating the partnership profits of $240,000. Computer each partner’s gross income from the partnership for last year. #49. On June 30, 2011, Ridge borrowed $62,000 from his employer. On July 1, 2011, Ridge used the money as follows:Interest-free loan to Ridge’s controlled corporation (operated by Ridge on a part-time basis)$31,000 Interest-free loan to Tab (Ridge’s son) 11,000 National Bank of Grundy 5% CD ($14,700 due at maturity, June 30 , 2012) 14,000 National Bank of Grundy 5. 5% CD ($6,678 due at maturity, June 30, 2012) 6,000 $62,000 Ridge’s employer did not charge him interest. The applicable Federal rate was 5% throughout the relevant period. Tab had investment income of $800 for the year, and he used the loan proceeds to pay medical school tuition. There were no other outstanding loans between Ridge and Tab.What are the effects of the preceding transactions on Ridge’s taxable income for 2011? #51. Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2011, Vito borrowed $8,000 from Vito, Inc. , and on July 1, 2012, he borrowed an additional $4,000. Both loans were due on demand. No interest was charged on the loans, and the Federal rate was 8% for all relevant dates. Vito used the money to purchase a boat, and he had $1,100 of investment income. Determine the tax consequences to Vito and Vito, Inc. in each of the following situations: )The loans are consi dered employer-employee loans. b)The loans are considered corporation-shareholder loans #52. Tess retires after 30 years of service with her employer. She is 66 years old and has contributed $37,800 to her employer’s qualified pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life. a)Assume that Tess retires in June 2011 and collects six annuity payments this year. What is her gross income from the annuity payments in the first year? b)Assume that Tess lives 30 years after retiring.What is her gross income from the annuity payments in the twenty-ninth year? c)Assume that Tess dies after collecting 180 payments. She collected six payments in the year of her death. What are Tess’s gross income and deductions from the annuity contract in the year of her death? FEDERAL TAXATION 307__________________________________ – Chapter 5 Homework: #7. Lime Finance Company requires its customers to purchase a credit life insurance policy associated with the loans it makes. Lime is the beneficiary of the policy to the extent of the remaining balance on the loan at the time of the customer’s death.In 2010, Lime wrote off as uncollectible a $5,000 account receivable from Wally, which included $1,500 of accrued interest. When Wally died in 2011, the life insurance policy was still in force, and Lime received $3,500. Is the $3,500 of life insurance proceeds received by Lime included in its gross income? #13. Melba’s employer provides a flexible spending plan for medical and dental expenses not covered by insurance. Melba contributed $1,500 during 2011, but by the end of December 2011, she still had $300 remaining in the account.Melba intended to get new eyeglasses, but was too busy during the holiday season. Is Melba required to forfeit the balance in her flexible spending account? #23. In 2011, Montgomery County experienced a budget surplus. The County is considering using a po rtion of the surplus to rebate part of the real estate taxes paid by county real estate owners. What would be the income tax consequences to the real estate owners of receiving the rebate in 2012? #25. Molly is a cash basis taxpayer. In 2011, she earned only $6,500, which was less than the standard deduction and personal exemption.In January 2012, Molly’s employer determined that he had miscalculated her December 2011 bonus and that she should have received an additional $1,000 of compensation in 2011. The employer paid Molly the $1,000 in 2012. If Molly had received the $1,000 in 2011, it would not have resulted in any tax liability because her gross income would still have been less than her standard deduction and personal exemption. In 2012, Molly had over $30,000 in taxable income. Does the tax benefit rule apply to Molly’s situation? Explain. #28. Ed, an employee of the Natural Color Company, suffered from a rare disease that was very expensive to treat.The local media ran several stories about Ed's problems, and the family received more than $10,000 in gifts from individuals to help pay the medical bills. Ed’s employer provided hospital and medical insurance for its employees, but the policy did not cover Ed’s illness. When it became apparent that Ed could not pay all of his medical expenses, the hospital canceled the $25,000 Ed owed at the time of his death. After Ed’s death, his former employer paid Ed’s widow $12,000 in â€Å"her time of need. † Ed’s widow also collected $50,000 on a group term life insurance policy paid for by Ed’s employer. What are Ed’s and his wife’s gross income? 31. What is the taxpayer’s gross income in each of the following situations? a)Darrin received a salary of $50,000 in 2011 from his employer, Green Construction Associates, Inc. In July 2011, Green gave each employee $2,500 as a bonus for exceeding the monthly sales goals. b)Megan receive d $10,000 from her employer to help her pay the college expenses of her daughter. c)Blake received $15,000 from his deceased wife’s employer in â€Å"recognition of her 30 years of faithful service to the company. † d)Clint collected $50,000 as the beneficiary of a group term life insurance policy for which his deceased wife’s employer had paid the premiums. 33. Ray and Carin are partners in an accounting firm. The partners have entered into an arm’s length agreement requiring Ray to purchase Carin’s partnership interest from Carin’s estate if she dies before Ray. The price is set at 120% of the book value of Carin’s partnership interest at the time of her death. Ray purchased an insurance policy on Carin’s life to fund this agreement. After Ray had paid $45,000 in premiums, Carin was killed in an automobile accident, and Ray collected $800,000 of life insurance proceeds. Ray used the life insurance proceeds to purchase Carinâ €™s partnership interest. )What amount should Ray include in his gross income from receiving the life insurance proceeds? b)The insurance company paid Ray $16,000 interest on the life insurance proceeds during the period Carin’s estate was in administration. During this period, Ray had left the insurance proceeds with the insurance company. Is this interest taxable? c)When Ray paid $800,000 for Carin’s partnership interest, priced as specified in the agreement, the fair market value of Carin’s interest was $1 million. How much should Ray include in his gross income from this bargain purchase? #36.Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile the collector attempted to repossess$ 3,300 Physical damage to her arm caused by the collector 15,000 Loss of income while her arm was healing 6,000 Punitive damages 80,000 a)What effect does the settlement have on Leigh’s gross income? b)Assume Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh’s employer and other creditors. Is this $25,000 included in Leigh’s gross income? #39.The UVW Union and HON Corporation are negotiating contract terms. Assume the union members are in the 28% marginal tax bracket and all benefits are provided on a nondiscriminatory basis. Write a letter to the UVW Union members explaining the tax consequences of the options discussed below. The union’s address is 905 Spruce Street, Washington, DC 20227. a)The company would impose a $100 deductible on medical insurance benefits. Most employees incur more than $100 each year in medical expenses. b)Employees would get an additional paid holiday with the same annual income (the same pay but less work). )An employee who did not need health insurance (because the employer’s spouse works and receives family coverage) would be allowed to receive the cash value of the coverage. #52. Tonya, who lives in Virginia, inherited a $10,000 State of Virginia bond in 2011. Her marginal Federal tax rate is 35%, and her marginal state tax rate is 5%. The Virginia bond pays 4% interest, which is not subject to Virginia income tax. She can purchase a corporate bond of comparable risk that will yield 6% or a U. S. government bond that pays 5. 6% interest.Tonya does not itemize her deductions. Which investment will provide the greatest after-tax yield? Chapter 6 Homework #7 Nanette is a third-grade teacher. Potential deductions are charitable contributions of $520, personal property taxes on her car of $225, and various supplies purchased for use in her classroom of $225 (none reimbursed by her school). How will these items affect Nanette’s income tax return? #11 Mary Kate owns a building that she leases to an individual who operates a grocery store. Rent income is $10,000 and rental expenses are $6,000.On what Form 1040 schedule or sch edules are the income and expenses reported? #20 Gordon anticipates that being positively perceived by the individual who is elected mayor will be beneficial for his business. Therefore, he contributes to the campaigns of both the Democratic and the Republican candidates. The Republican candidate is elected mayor. Can Gordon deduct any of the political contributions he made? #25 Are there any circumstances under which taxpayers can rent their personal residence and not be required to report the rent income received?Does this have an effect on the deductions allowed? #37 This has not been a good year for Betsy. During the year, she had losses from the following sales: Personal use sailboat$ 6,000 Personal residence$30,000 Rental house$12,000 Orange, Inc. stock$ 4,000 City of James bonds$ 2,000 a)What is the amount of Betsy’s deductible losses b) Classify the deductible losses as deductions for or from AGI #45 Vermillion, Inc. , a publicly held corporation (not a TARP recipient ), pays the following salaries to its executives: Retirement Plan SalaryBonus ContributionCEO$2,000,000$100,000 $80,000 Executive vice president 1,800,000 90,000 72,000 Treasurer 1,600,000 -0- 64,000 Marketing vice president 1,500,000 75,000 60,000 Operations vice president 1,400,000 70,000 56,000 Distribution vice president 1,200,000 60,000 48,000 Research vice president 1,100,000 -0- 44,000 Controller 800,000 -0- 32,000 Vermillion normally does not pay bonuses, but after reviewing the results of operations for the year, the board of directors decided to pay a 5% bonus to selected executives.What is the amount of these payments hat =Vermillion may deduct? #47 Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurred the expenses in June and July 2011. Under the following circumstances, what can Terry deduct in 2011? a)Terry was in the hardw are store business and did not acquire the two hardware stores. b)Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2011. )Terry did not acquire the two hardware stores and was not in the hardware store business. d)Terry acquired the two hardware stores, but was not in the hardware store business when he acquired them. Operations began on October 1, 2011. #58 The Robin Corporation is owned as follows: Isabelle26% Peter, Isabelle’s husband19% Sonya, Isabelle’s mother15% Reggie, Isabelle’s father25% Quinn, an unrelated party15% Robin is on the accrual basis, and Isabelle and Peter are on the cash basis. Isabelle and Peter each loaned the Robin Corporation $40,000 out of their separate funds.On December 31, 2011, Robin accrued interest at 7% on both loans. The interest was paid on February 4, 2012. What is the tax treatment of this interest expense/income to Isabelle, Peter, and Robin? #59 For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer. a)Bonnie sells Parchment, Inc. stock (adjusted basis $17,000) to Phillip, her brother, for its fair market value of $12,000 b)Amos sells land (adjusted basis $85,000) to his nephew, Boyd, for its fair market value of $70,000. c)Susan sells a tax-exempt bond (adjusted basis $20,000) to her holly owned corporation for its fair market value of $19,000 d)Ron sells a business truck (adjusted basis $20,000) that he uses in his sole proprietorship to his cousin, Agnes, for its fair market value of $18,500. e)Martha sells her partnership interest (adjusted basis $175,000) in Pearl Partnership to her adult daughter, Kim, for $220,000. #61 Lee incurred the following expenses in the current tax year. Indicate, in the spaces provided, whether each expenditure is deductible for AGI, from AGI, or not deductible. DeductibleNot Expenses Item For AGI From AGI Deductible a) Lee’s personal medical expenses. ______ ______________ b) Lee’s dependent daughter’s medical expenses _______ ______________ c) Real estate taxes on Lee’s rental property _______ ______________ d) Real estate taxes on Lee’s personal residence _______ ______________ e) Real estate taxes on daughter’s personal residence _______ ______________ f) Lee’s state income taxes _______ ______________ g) Interest on Lee’s rental property mortgage _______ ______________ h) Interest on Lee’s personal residence mortgage _______ ______________ i) Interest on daughter’s personal residence mortgage _______ ______________ j) Interest on Lee’s business loans. _______ ______________ k) Lee’s charitable contributions. ______ ______________ l) Depreciation on Lee’s rental property _______ ______________ m) Depreciation on auto used in Lee’s business _______ ______________ n) Depreciation on Lee’s personal use auto _______ ______________ o) Depreciation on daughter’s personal use auto _______ ______________ Chapter 7 Homework: student’s name #7Many years ago, Jack purchased 400 shares of Canary stock. During the current year, the stock became worthless. It was determined that the company â€Å"went under† because several corporate officers embezzled a large amount of company funds. Identify the relevant tax issues for Jack. #22Green Corporation made extensive modifications to a portion of a building so that it could be used to conduct product research. Discuss whether the modification costs would qualify as research and experimental expenditures. #29Monty loaned his friend Ned $20,000 three years ago.Ned signed a note and made payments on the loan. Last year, when the remaining balance was $11,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $11,000 as a nonbusiness bad debt. Last y ear Monty had no capital gains and taxable income of $12,000. During the current year, Ned paid Monty $5,000 in satisfaction of the debt. Determine Monty’s tax treatment for the $5,000 received in the current year. #32Mary, a single taxpayer, purchased 10,000 shares of  §1244 stock several years ago at a cost of $20 per share. In November of the current year, Mary received an offer to sell the stock for $12 per share.She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. Mary will receive a salary of $80,000 for the current year and $90,000 next year. Mary will have long-term capital gains of $8,000 for the current year and $10,000 next year. If Mary’s goal is to minimize her AGI for the two years, determine whether she should sell all of her stock this year or half of her stock this year and half next year. #35Heather owns a two-story building. The building is used 60% for business us e and 40% for personal use. During 2011, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $150,000 on the business portion.At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. If Heather’s AGI is $100,000 before considering the effects of the fire, determine her itemized deduction as a result of the fire. Also determine Heather’s AGI.

Environmental Effects of Pesticides Essay

Over 98% of sprayed insecticides and 95% of herbicides reach a destination other than their target species, including nontarget species, air, water, bottom sediments, and food.[1] Pesticide contaminates land and water when it escapes from production sites and storage tanks, when it runs off from fields, when it is discarded, when it is sprayed aerially, and when it is sprayed into water to kill algae.[2] The amount of pesticide that migrates from the intended application area is influenced by the particular chemical’s properties: its propensity for binding to soil, its vapor pressure, its water solubility, and its resistance to being broken down over time.[3] Factors in the soil, such as its texture, its ability to retain water, and the amount of organic matter contained in it, also affect the amount of pesticide that will leave the area.[3] Some pesticides contribute to global warming and the depletion of the ozone layer.[4] [edit] Air Pesticides can contribute to air pollution . Pesticide drift occurs when pesticides suspended in the air as particles are carried by wind to other areas, potentially contaminating them.[5] Pesticides that are applied to crops can volatilize and may be blown by winds into nearby areas, potentially posing a threat to wildlife.[6] Also, droplets of sprayed pesticides or particles from pesticides applied as dusts may travel on the wind to other areas,[7] or pesticides may adhere to particles that blow in the wind, such as dust particles.[8] Ground spraying produces less pesticide drift than aerial spraying does.[9] Farmers can employ a buffer zone around their crop, consisting of empty land or non-crop plants such as evergreen trees to serve as windbreaks and absorb the pesticides, preventing drift into other areas.[10] Such windbreaks are legally required in the Netherlands.[10] Pesticides that are sprayed on to fields and used to fumigate soil can give off chemicals called volatile organic compounds, which can react with other chemicals and form a pollutant called tropospheric ozone. Pesticide use accounts for about 6 percent of total tropospheric ozone levels.[11] [edit] Water In the United States, pesticides were found to pollute every stream and over 90% of wells sampled in a study by the US Geological Survey.[12] Pesticide residues have also been found in rain and groundwater.[3] Studies by the UK government showed that pesticide concentrations exceeded those allowable for drinking water in some samples of river water and groundwater.[13] Pesticide impacts on aquatic systems are often studied using a hydrology transport model to study movement and fate of chemicals in rivers and streams. As early as the 1970s quantitative analysis of pesticide runoff was conducted in order to predict amounts of pesticide that would reach surface waters.[14] There are four major routes through which pesticides reach the water: it may drift outside of the intended area when it is sprayed, it may percolate, or leach, through the soil, it may be carried to the water as runoff, or it may be spilled, for example accidentally or through neglect.[15] They may also be carried to water by eroding soil.[16] Factors that affect a pesticide’s ability to contaminate water include its water solubility, the distance from an application site to a body of water, weather, soil type, presence of a growing crop, and the method used to apply the chemical.[17] Maximum limits of allowable concentrations for individual pesticides in public bodies of water are set by the Environmental Protection Agency in the US.[3][17] Similarly, the government of the United Kingdom sets Environmental Quality Standards (EQS), or maximum allowable concentrations of some pesticides in bodies of water above which toxicity may occur.[18] The European Union also regulates maximum concentrations of pesticides in water.[18] [edit] Soil Many of the chemicals used in pesticides are persistent soil contaminants, whose impact may endure for decades and adversely affect soil conservation.[19] The use of pesticides decreases the general biodiversity in the soil. Not using the chemicals results in higher soil quality,[verification needed][20] with the additional effect that more organic matter in the soil allows for higher water retention.[3] This helps increase yields for farms in drought years, when organic farms have had yields 20-40% higher than their conventional counterparts.[21] A smaller content of organic matter in the soil increases the amount of pesticide that will leave the area of application, because organic matter binds to and helps break down pesticides.[3] [edit] Effects on biota [edit] Plants Nitrogen fixation, which is required for the growth of higher plants, is hindered by pesticides in soil.[22] The insecticides DDT, methyl parathion, and especially pentachlorophenol have been shown to interfere with legume-rhizobium chemical signaling.[22] Reduction of this symbiotic chemical signaling results in reduced nitrogen fixation and thus reduced crop yields.[22] Root nodule formation in these plants saves the world economy $10 billion in synthetic nitrogen fertilizer every year.[23] Pesticides can kill bees and are strongly implicated in pollinator decline, the loss of species that pollinate plants, including through the mechanism of Colony Collapse Disorder,[24][25][26][27] in which worker bees from a beehive or Western honey bee colony abruptly disappear. Application of pesticides to crops that are in bloom can kill honeybees,[5] which act as pollinators. The USDA and USFWS estimate that US farmers lose at least $200 million a year from reduced crop pollination because pesticides applied to fields eliminate about a fifth of honeybee colonies in the US and harm an additional 15%.[1] On the other side, pesticides have some direct harmful effect on plant including poor root hair development, shoot yellowing and reduced plant growth [28]. [edit] Animals Pesticides inflict extremely widespread damage to biota, and many countries have acted to discourage pesticide usage through their Biodiversity Action Plans.[citation needed] Animals may be poisoned by pesticide residues that remain on food after spraying, for example when wild animals enter sprayed fields or nearby areas shortly after spraying.[9] Widespread application of pesticides can eliminate food sources that certain types of animals need, causing the animals to relocate, change their diet, or starve.[5] Poisoning from pesticides can travel up the food chain; for example, birds can be harmed when they eat insects and worms that have consumed pesticides.[5] Some pesticides can bioaccumulate, or build up to toxic levels in the bodies of organisms that consume them over time, a phenomenon that impacts species high on the food chain especially hard.[5] [edit] Birds Bald eagles are common examples of nontarget organisms that are impacted by pesticide use. Rachel Carson’s landmark book Silent Spring dealt with the loss of bird species due to bioaccumulation of pesticides in their tissues. There is evidence that birds are continuing to be harmed by pesticide use. In the farmland of Britain, populations of ten different species of birds have declined by 10 million breeding individuals between 1979 and 1999, a phenomenon thought to have resulted from loss of plant and invertebrate species on which the birds feed.[29] Throughout Europe, 116 species of birds are now threatened.[29] Reductions in bird populations have been found to be associated with times and areas in which pesticides are used.[29] In another example, some types of fungicides used in peanut farming are only slightly toxic to birds and mammals, but may kill off earthworms, which can in turn reduce populations of the birds and mammals that feed on them.[9] Some pesticides come in granular form, and birds and other wildlife may eat the granules, mistaking them for grains of food.[9] A few granules of a pesticide is enough to kill a small bird.[9] The herbicide paraquat, when sprayed onto bird eggs, causes growth abnormalities in embryos and reduces the number of chicks that hatch successfully, but most herbicides do not directly cause much harm to birds.[9] Herbicides may endanger bird populations by reducing their habitat.[9] [edit] Aquatic life Fish and other aquatic biota may be harmed by pesticide-contaminated water.[30] Pesticide surface runoff into rivers and streams can be highly lethal to aquatic life, sometimes killing all the fish in a particular stream.[31] Application of herbicides to bodies of water can cause fish kills when the dead plants rot and use up the water’s oxygen, suffocating the fish.[30] Some herbicides, such as copper sulfite, that are applied to water to kill plants are toxic to fish and other water animals at concentrations similar to those used to kill the plants.[30] Repeated exposure to sublethal doses of some pesticides can cause physiological and behavioral changes in fish that reduce populations, such as abandonment of nests and broods, decreased immunity to disease, and increased failure to avoid predators.[30] Application of herbicides to bodies of water can kill off plants on which fish depend for their habitat.[30] Pesticides can accumulate in bodies of water to levels that kill off zooplankton, the main source of food for young fish.[32] Pesticides can kill off the insects on which some fish feed, causing the fish to travel farther in search of food and exposing them to greater risk from predators.[30] The faster a given pesticide breaks down in the environment, the less threat it poses to aquatic life.[30] Insecticides are more toxic to aquatic life than herbicides and fungicides.[30] [edit] Amphibians See also: Decline in amphibian population In the past several decades, decline in amphibian populations has been occurring all over the world, for unexplained reasons which are thought to be varied but of which pesticides may be a part.[33] Mixtures of multiple pesticides appear to have a cumulative toxic effect on frogs.[34] Tadpoles from ponds with multiple pesticides present in the water take longer to metamorphose into frogs and are smaller when they do, decreasing their ability to catch prey and avoid predators.[34] A Canadian study showed that exposing tadpoles to endosulfan, an organochloride pesticide at levels that are likely to be found in habitats near fields sprayed with the chemical kills the tadpoles and causes behavioral and growth abnormalities.[35] The herbicide atrazine has been shown to turn male frogs into hermaphrodites, decreasing their ability to reproduce.[34] [edit] Humans See also: Pesticide residue Pesticides can enter the human body through inhalation of aerosols, dust and vapor that contain pesticides; through oral exposure by consuming food and water; and through dermal exposure by direct contact of pesticides with skin.[36] Pesticides are sprayed onto food, especially fruits and vegetables, they secrete into soils and groundwater which can end up in drinking water, and pesticide spray can drift and pollute the air. The effects of pesticides on human health are more harmful based on the toxicity of the chemical and the length and magnitude of exposure.[37] Farm workers and their families experience the greatest exposure to agricultural pesticides through direct contact with the chemicals. But every human contains a percentage of pesticides found in fat samples in their body. Children are most susceptible and sensitive to pesticides due to their small size and underdevelopment.[36] The chemicals can bioaccumulate in the body over time. Exposure to pesticides can range from mild skin irritation to birth defects, tumors, genetic changes, blood and nerve disorders, endocrine disruption, and even coma or death.[38] Some pesticides, including aldrin, chlordane, DDT, dieldrin, endrin, heptachlor, hexachlorobenzene, mirex, and toxaphene, are considered POPs.[39] POPs have the ability to volatilize and travel great distances through the atmosphere to become deposited in remote regions.[39] The chemicals also have the ability to bioaccumulate and biomagnify, and can bioconcentrate (i.e. become more concentrated) up to 70,000 times their original concentrations.[39] POPs may continue to poison non-target organisms in the environment and increase risk to humans[40] by disruption in the endocrine, reproductive, and immune systems; cancer; neurobehavioral disorders,[39] infertility and mutagenic effects, although very little is currently known about these chronic effects. Some POPs have been banned, while others continue to be used. [edit] Pest resistance

American Revolution And The Ussr - 1502 Words

1st Amendment: As it might not be a prevalent as it was when more totalitarian government systems existed, it , to me, is the almost complete infrastructure made for the rest of the other amendments to live in and thrive within. As long as a government has a lack of control over what its people think, believe, and want it is essentially removes a large amount of influence and power it once had and places it into groups of people. As we’ve seen, a whole country can’t believe in all the same ideals as its governments. Even when the government is supposed to be constructed under the ideals of the majority that overthrew it, power is still unbalanced and will create the same problems, if not more, is sought to fix (French revolution and the†¦show more content†¦One case, California v. Stewart, did not advise the accused of the fact he could remain silent and ended confessing to robbery and murder. 6th: The sixth amendment build off of the one before it where it provides more rights to the citizens being prosecuted. It defines the trails and provides a chose for the defendant between a speedy and public trial Although they still have the right to remain silent. In Order to insure that the trial is fair, the defendant can have an attorney and a jury of peairs from the district the crime was committed in. I find the Fifth slightly above the sixth because it s seemingly the rules of the game 7th: Not every wrong doing can be a crime, and even if it s a crime, the punishment for the damages might not be enough. This amendment give an alternative to sue another party for loss of value of something. Only so many laws can be written, so the option to make your own case over a specific issue not previously defined is a huge privilege. Also, because the same case can’t be tried twice, a lawsuit isn’t the same and can be used accordingly. The most famous case of the example I just presented was the O.J Simpson s case where he was found not guilty in court, but guilty of the murders in a lawsuit made by the families. 2nd: Because our government is based off of trust between government and the people, the people are given a knife as they follow behind of the government. The metaphor meaning that the people are allowedShow MoreRelatedThe Cold War Summarized Essay1619 Words   |  7 Pagesworlds two superpowers following the Second World War is known as the Cold War. This period was full of tension and fear that the United States and the USSR would destroy each other and the world with their arsenals of atomic weapons. The seeds of this rivalry were planted nearly a quarter of a century before its actual commencement with the Revolution of 1918 in Russia. 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