Differences between current theories of investing assessment Essay Example

Differences between current theories of investing assessment Essay Many recent surveies suggest that there are major differences between current theories of investing assessment and the methods really used by houses in measuring their long-run investments.’ Critically discourse this statement and include, within your treatment, Theoretical statements for the pick of the net present value as the best method of investing assessment An account of why other methods have proved to be so popular with determination shapers even though NPV is theoretically the best method. We will write a custom essay sample on Differences between current theories of investing assessment specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Differences between current theories of investing assessment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Differences between current theories of investing assessment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer One of the cardinal issues for companies and investors that are looking to put in a undertaking or a new company is geting at an accurate and dependable assessment. Finding and taking a dependable method of undertaking assessment is disputing because of the assorted premises that underlie the theoretical accounts. Other factors such as the length of the undertaking, the sum of the capital investing and the figure and type of merchandises being manufactured all demand to be taken into consideration when taking a suited assessment method. The most widely used methods which will be critically assessed in this paper are the Net Present Value ( NPV ) , Internal Rate of Return ( IRR ) , Accounting Rate of Return ( ARR ) and the Payback Period Methods. In recent old ages at that place has been a turning spread from the theoretical protagonism of some of these methods and their existent usage by houses. This paper will look to measure such claims and see the factors that are doing this displ acement. The Net Present Value ( NPV ) is one of many methods used to measure investing undertakings utilizing discounted hard currency flows. Under the NPV method, investing undertakings are viewed as holding a watercourse of forecasted hard currency influxs and escapes over the life of the project’s economic life. It assumes that other than these hard currency flows, there are no other effects impacting the undertaking, and hence merely discounted hard currency flows are taken into history. [ 1 ] NPV focuses on undertakings that maximize the net present value of all hard currency flows generated for the company, more officially it isthe net pecuniary addition ( or loss ) from a undertaking, computed by dismissing all present and future hard currency influxs and escapes related to the project. [ 2 ] Using NPV all future hard currency flows from the undertaking are discounted at a rateI, back to clip 0 which is the start of the undertaking. A undertaking is considered profitable if its NPV is greater than zero and comparative to another undertaking the 1 with the higher NPV is preferred over the alternate undertaking. [ 3 ] NPV is academically preferred over other investing assessment methods for several grounds. NPV is simple to cipher and to get at an unambiguous concluding determination. NPV besides takes into history the clip value of money by dismissing hard currency flows thereby taking into history the clip value of money. Additionally, its usage of hard currency flows alternatively of accounting net incomes means that it is able to account for the sum and timing of hard currency flows from the undertaking every bit good as accounting for all of the hard currency flows over the life of the undertaking. [ 4 ] The NPV besides incorporates hazard into the determination devising procedure through the accommodation of the investment’s price reduction rate. [ 5 ] Pike and Neale maintain that the NPV increases a firm’s market value and therefore the shareholders’ interest because directors merely accept undertakings which offer positive net nowadays values when discounted at tantamo unt market rates of involvement. [ 6 ] Some of the challenges faced by investors when utilizing NPV is gauging the value of hard currency influxs and escapes over the life of the undertaking. Second, NPV method is merely recognized when its value is positive in a perfect capital market environment in which there are no limitations on the handiness of finance. However, in world markets are restricted or rationed thereby restricting the pertinence of its determination regulation. The NPV besides assumes that company’s cost of capital is known and is changeless over the life of the undertaking. However, in world it is hard to gauge and choose an appropriate price reduction rate. Furthermore, it is improbable to stay changeless over the life of the undertaking due to the of all time changing nature of the economic environment. [ 7 ] The Internal Rate of Return ( IRR ) isthe rate that equates the cost and benefit of the undertaking in footings of present value. [ 8 ] It is the rate at which the NPV peers zero and hence is the maximal cost of financing the undertaking or investing. Given that the rate refers merely to the project’s internal factors, no external factors are considered in this assessment method. This can be seen as an advantage in that it does non necessitate the computation of a complex price reduction rate [ 9 ] , on the other manus it besides means that it does non account for altering market environments. Undertakings are accepted utilizing this method when the IRR is greater than the return required by the investor. On the other manus, if the IRR is less than the riskless rate of return, the undertaking is rejected. [ 10 ] Some of the drawbacks to this method include its premise that grosss are reinvested and the equivocal root consequences when mark reversal occurs more than one time in the project’s hard currency flows. It besides assumes that the rate of loaning and adoption are the same and it assumes an equal cost of capital throughout the project’s life, which is unrealistic. [ 11 ] Luenberger maintains that both the NPV and IRR methods have appropriate topographic points in investing assessment but in different conditions. [ 12 ] One of the cardinal strengths of the NPV is its comparing of theinvestment with the rate of return of normal funding channels, and therefore creates a healthier state of affairs of comparing in contemplating the feasibleness of the investment. [ 13 ] Conversely, the IRR can be applied when the investing needs to be repeatedly reinvested in the same undertaking. Whilst it possibly disputing to get at the price reduction rate for the NPV, consideration for the clip value of money is of import in the assessment procedure. Furthermore, the cost of capital is an of import manner of placing the efficiency with which an investor’s capital is invested. [ 14 ] Additionally, the NPV does non get at any equivocal roots, unlike the IRR. [ 15 ] However, harmonizing to Kuronen, neither the NPV nor the IRR methods are able to capture the stock holder value created by the investing. [ 16 ] The payback investing assessment method is normally the 1 used foremost to filtrate out possible undertakings. It asks investors the inquiryhow long will it take for the undertaking to pay back its cost? . [ 17 ] In some instances, companies will hold a mark payback day of the month which will ensue in their rejecting undertakings which do non run into it. The payback method thereby provides a speedy manner in which to measure the hazard of the undertaking. It will ever supply clear consequences and its advocators believe that it identifies less hazardous undertakings or the undertakings which will be invested for the least sum of clip. [ 18 ] Harmonizing to CIMA, undertakings should non be accepted entirely on the footing of the payback method and investors should utilize a more sophisticated assessment technique. The popularity of the payback method has been worsening since the 1970s due to increased consciousness of its restrictions. One such restriction harmonizing to Kuronen is the fact that it does non take into history the possible net income degrees that may be achieved by the investing. Second it wholly ignores the timing of the rate of returns. Companies that do utilize it, do so in combination with other methods. [ 19 ] Remer and Nieto find that usage of the payback method has wholly diminished [ 20 ] , which contrast with the findings of Jahnke and Simons who find grounds to propose that payback is in fact used rather on a regular basis. They find that the bulk of houses use it in combination with other methods whereas little houses rely on it as a individual standard. [ 21 ] Another assessment method used by investors is the Accounting Rate of Return ( ARR ) which compares the mean one-year net income degrees of a undertaking wit its initial investing, expressed as a per centum. ARR accepts undertakings which have an ARR higher than a preset rate of return. This method uses accounting flows instead than hard currency flows, unlike the NPV which means that it looks at the impact of future reported net incomes from a undertaking. The cardinal disadvantages of ARR is that it does non take into history the timing of hard currency flows and the cost of funding and it does non look to maximize stockholder wealth but instead accounting net incomes, unlike NPV. Additionally, ARR has a inclination to pick up irrelevant informations because it is based on accounting net incomes which means it will apportion a portion of operating expenses to countries that the undertaking may non be undertaken. McLaney therefore maintains that this method is improbable to be used extensively by investors because it is likely to take to hapless determinations. [ 22 ] Conversely, Irons believes that it is a widely used assessment method because in add-on to the aforesaid advantages, informations is readily available to cipher it. [ 23 ] One survey by Sangster finds that companies today use the traditional methods of discounting hard currency flow techniques more than they use accounting rate of return. [ 24 ] While there is grounds to corroborate that the NPV and IRR are still being used by investors as major investing assessment techniques [ 25 ] , other surveies are happening an increasing deficiency of their existent usage by companies. A survey by Akalu finds only15 per centum of respondents rated standard assessment methods as being very good’ in footings of preciseness and 19 per centum of respondents rated them very good’ at supplying the promised value. Akalu argues that these consequences do non compare at all with the text edition statement for NPV or IRR appraisal methods which would hold rated them as high’ . The findings hence indicate agap between the theoretical and pattern of capital budgeting[ 26 ] and that these methods areunable to supply the promised undertaking value to shar eholders .[ 27 ] A turning tendency towards the usage of a combination of appraisal methods was found, irrespective of the project’s life span and required capital outgo. The survey besides revealed that as the life span and capital disbursement increased, more quantitative and advanced assessment methods were used. [ 28 ] These findings are supported by a survey carried out by Pike which show that the usage of a individual assessment method has been worsening from 31 per centum in 1975 to 4 per centum in 1992. In contrast, the usage of a combination of three assessment methods has increased from 22 per centum to 32 per centum and rose by even greater, 11 per centum to 32 per centum for the four theoretical account combination. [ 29 ] Harmonizing to Akalu, the motives behind the increased usage of a combination of appraisal methods, appears to be due to the inability of a individual theoretical account to accurately mensurate the value of a undertaking. Firms have hence resorted to utilizing a combination of appraisal methods in order to cut down likeliness of a disagreement between the existent and estimated gross and the cost of a undertaking. Surprisingly, the NPV was found to make the largest disagreement of all of the methods investigated, runing up to 20 per centum for undertakings with a lifetim e of over10 old ages and investing of more than ˆ80 million. [ 30 ] Furthermore, some industries, viz. support services and distribution and conveyance, were found to hold a greater inclination towards disagreements. Akalu farther maintains that a higher disagreement could take to low stockholder value in a company. [ 31 ] As a consequence, there is a turning displacement off from the usage of standard assessment methods towards newer theoretical accounts, peculiarly value direction theoretical accounts, or towards the application of techniques which may compromise the assessment procedure. [ 32 ] In fact the 2001 survey by Akalu and Turner confirms the increasing function that the DCF theoretical account is playing in stockholder value direction. In fact, a combination of both standard and value direction theoretical accounts are progressively being used. [ 33 ] These surveies contrast with a surprising determination by Hatzopoulos and Arnold who find that in the UK, the spread between the theoretical and practical usage of undertaking assessment methods are in fact narrowing. [ 34 ] Akalu and Turner farther find indicants of a displacement off from traditional and inactive theoretical accounts towards the more flexible value direction theoretical accounts such as stockholder value analysis, Economic Value Analysis ( EVA ) and Net Contribution to Value ( NCV ) , to back up traditional investing assessment techniques. [ 35 ] Additionally, a survey by Barfield finds that the usage of the stockholder value analysis ( SVA ) has allowed fiscal establishments to execute better than others. [ 36 ] This was taken to an even wider graduated table by Copeland et Al. who have found that states which apply SVA methodsare more value originative than others. [ 37 ] This paper has given an history of the assorted investing assessment methods used by companies to measure undertaking and has given an account of their assorted strengths and failings. This paper besides sought to give an history of the altering tendencies in the usage of these appraisal methods every bit good as an account for these displacements. The findings of this paper suggest that there is no 1 individual method that has been wholly been eliminated or advocated in footings of its practical usage today because of the different environments, industries every bit good as changing company and undertaking sizes. For the most portion, for every survey that was found to recommend a peculiar method and its growth usage today there was another that discredited it, doing it hard to truly arrive at a concluding decision of the existent current tendencies. However, it can be concluded that there is a turning tendency towards the combined usage of all of these methods at changing times of the undertaking life spans, to cut down likeliness of a disagreement between the existent and estimated gross and the cost of a undertaking. Finally, there besides appears to be a displacement by companies towards the usage of the more flexible value direction theoretical accounts which are ensuing in comparatively greater fiscal public presentation. Bibliography Akalu M. , ( 2002 )Measuring the Capacity of Standard Investment Appraisal Methods: Evidence from the patternTinbergen Institute Akalu, M. A ; Turner, R. ( 2001 )Investing Appraisal Process: A Case of Chemical Companies, Erasmus Research Institute of Management Akalu A ; Turner ( 2002 )Investing Appraisal Process in the Banking A ; Finance Industry: A Case Study,Erasmus Research Institute of Management Arnold, G. and Hatzopoulos, P. ( 2003 )The Theory-Practice Gap in Capital Budgeting: Evidence from the United Kingdom,Journal of Business Finance A ; Accounting Vol. 27, Issue 5, Amp. 6, P. 603-626 Gotze, U. , Northcott, D. A ; Schuster, P. ( 2007 )Investing Appraisal: Methods and Models, Springer Institute of Chartered Accounting England and Wales,Investing Appraisal Techniques,Kaplan Financials Ironss, A. ( 2004 )Capital Investing Appraisal, ACCA Global hypertext transfer protocol: //www.accaglobal.com Kuronen T. , ( 2007 )Capital Budgeting in a Capital Intensive Industry,Helsinki University of Technology McLaney, E. ( 2006 )Business Finance: Theory and Practice, 7ThursdayEdition, Pearson Education Pike, R. and Neale, B. ( 2006 )Corporate Finance and Investing: Decisions A ; Schemes,Pearson Education Sangster, A. ( 2006 )Capital Investment Appraisal Techniques: A Survey of Current Use, Journal of Business Finance A ; Accounting Vol. 20, Issue 3, P. 307-332 Jahnke, H. and Simons, D. ( 2008 )A Rationale for the Payback Criterion: An Application of Almost Stochastic Dominance to Capital Budgeting,Social Science Research Network Watson, D. A ; Head, A. ( 2007 )Corporate Finance: Principles and Practice, Pearson Education 1

The Best Way to Learn Italian

The Best Way to Learn Italian The Italian national soccer team, known as Gli Azzurri because of their blue jerseys, has ranked among the top teams in the world for years. Theyve won the World Cup many times, Italian-born players routinely sign multimillion-dollar contracts for European teams, and the Italian soccer leagues offer some of the most talented competition anywhere. The overriding reason for their success? Practice, practice, practice. And thats the secret to learning Italian or any other foreign language. Exercise your language muscles every day, and soon you, too, will be competing with the best of them. While many think that the quickest and most effective way to learn Italian is the total immersion method- traveling to Italy for an extended period and studying at any of the thousands of language schools throughout the country- there are other, more sustainable options to explore from home, too. Start Studying Youve already taken the most important step to learning Italian when you started searching online (and found this website)Â  because the most important thing is to start studying! And even though there are tons of resources available on the market, any method is appropriate as long as you maintain a consistent study schedule. Choose Your Learning Materials So once you choose a realistic amount of time that you can devote to your Italian studies each day, then reading an Italian textbook, taking a language course at a university or local language school, completing workbook exercises, listening to podcast or mp3s, or conversing with a native Italian speaker all count. Define Your Goals Many people mistake a desire to be conversational for a desire for fluency. The whole point of spending all of this time learning Italian is so you can have real conversations with real people, so keep that in mind as you choose your learning materials. Find things that are practical and that offer language you can use with actual people. Stick to Your Routine Spend some time every day reading, writing, speaking, and listening to Italian to become accustomed to the target language. Slowly but surely, your confidence will build with your language partners, your accent will become less pronounced, your vocabulary will expand, and youll be communicating in Italian. Maybe youll even start speaking Italian with your hands. In the end, visiting Italy to have a total immersion experience is wonderful, especially when doing things like a homestay where you literally eat, breathe, and (hopefully) dream in Italian. But, as you know, trips end, and humans easily forget what they’ve learned, so routine is key if you truly want to be conversational.

Gene Expression Essay Example | Topics and Well Written Essays - 2000 words

Gene Expression - Essay Example Before we start to Compare and contrast transgenic methods for manipulating gene expression between Drosophila and vertebrate animals let us discuss in brief about what is gene expression and function of genes Gene expression Genes exert their effects on the phenotype. The biological information is contained in the base sequence of DNA. Gene expression is the process by which this information is made available to the cell. This has been described by the central dogma. This states that information is transferred from DNA to RNA and RNA to a protein. During expression gene synthesis from mRNA molecule, into which information has been transferred in the form of genetic code. This synthesis of mRNA from of the strands of the DNA molecule is called transcription. The first step in gene expression is called transcription. Two strands of DNA separate, only one them act as template for the transcription into mRNA in 5’ïÆ'  3’ direction. This strand is non coding (antisense) strand and the other stand of DNA is coding strand (sense strand). This synthesis of polypeptide chain or a protein from mRNA is called translation.... Many genes express whenever the product is required and the expression is regulated. These genes are called regulated genes. Certain genes are expressed as a function of the interaction between RNA polymerase with promoter without any regulation. Such genes are called constitutive genes. They are constantly needed for cellular activities. Flow of genetic information from DNA to protein through RNA was described by crick as central dogma of molecular biology. The studies of bacterial genetics indicate that all genes not only specify the structure of an enzyme but some of them also regulate the expression of other genes. These genes are called regulator genes. This concept of gene regulation has been studied by Franois Jacob and Jacques monod in 1961.the relationship between the nucleotide sequence of mRNA and amino acid sequence that constitute a polypeptide chain is called as genetic code. Gene expression in Drosophila melanogaster Introduction Heterochromatin was originally defined visually as the heavily staining region seen in both the meiotic and interphase nucleus (hietz 1928). The contrast between the openness of euchromantin and the compactness of the heterochromatic implied that the euchromatic is the location of most gene function and led to the neglect of heterochromatin. However, it has become increasingly clear that the nuclear genome is more than a collection of autonomous DNA sequence and that a deeper knowledge of the structure of the nucleus and the chromatin, including the heterochromatin, will contribute to our understanding of the gene expression. In Drosophila melanogaster heterochromatin accounts for approximately 30 % of the genome. Its properties have been studied since the advent

Critical Analysis Research Paper Example | Topics and Well Written Essays - 750 words

Critical Analysis - Research Paper Example The first issue arises when the writer shows no issues associated with the black origin of Armand. To illustrate, the writer evidently points out that Armand had a ‘dark handsome face’ that did not disfigure. It is rather unsound to believe that Armand, in his entire lifetime, had no chance to know about his color, and that he never examined his skin color or compared it with the skin of others. Secondly, a man with such a strong and rather cruel personality did not seem aware about the race his mother belonged to. It is at the end of the story that he comes to know that his mother ‘who adores him, belongs to the race that is cursed with the brand of slavery’. The intention here is very clear; Armand is destined to be portrayed as an irrational human being. In other words, instead of race, the writer is trying to give stress on gender. The second technical fault comes in the fact that despite his ‘dark’ face, Madame Valmonde had no problem in al lowing their marriage. In addition, he had not loved her before, and he started loving her as if ‘stuck by a pistol shot’. Here, he decides to marry Desiree despite her obscure origin, and loves her blindly. Again as the child is born, He stops beating the black slaves he has. Thus, it becomes evident that Armand is presented as a cruel man who used to beat his slaves for no apparent reason. However, as Serafin, Bendixen point out, the birth of a child makes him give up his cruelty; and on the other hand, the female figures, despite his black complexion, started loving and trusting him blindly (188). The third point that hurts the reader is the fact that though Madame Valmonde and the nurse woman Zandrine immediately realize the fact that the child is black in complexion, both the parents; Armand and Desiree seem unaware of the color of the child until the child is three months old. It is rather irrational to believe that all other people except the child’s paren ts identified the issue. Here, again, the story loses its integrity by saying that Armand failed to identify the color of the child which is highly unlikely. For example, the moment Madame Valmonde sees the child she cries, â€Å"this is not the baby!† That means, she is totally surprised by the color of the baby. It is rather surprising that neither Armand nor Desiree could see this. However, for the sake of argument, one can say that while marrying a white woman, the purpose of Armand was to give birth to a white child that would ‘bear his name’. Here, one can make a rather reasonable assumption that though Armand was aware of his color and race, he married a white woman expecting a white boy. However, as he was disappointed by Desiree by giving birth to a black child instead, he loses all happiness. In the case of Desiree too, the negligence towards the color of the child she shows is surprising. Here, instead of claiming that she was unaware of the color, a b etter assumption would be that as she married a black man, she was expecting a black child. So, when the black child was born to a black father, she failed to see any dangers in it. In other words, she was unaware of the unreasonable ambitions of Armand. So, even when Madame Valmonde exclaims â€Å"this is not the baby† , Desiree believes the comment is about the growth of the child; not about the color.

Wonderland Hotel Quality Management Case Study Essay Example for Free

Wonderland Hotel Quality Management Case Study Essay John Chan, Wonderland Hotel’s general manager, has a major public relations problem related to a banquet for TC International that was a complete disaster. The Vice President of TC International is extremely disappointed and upset about the entire banquet. The Vice President felt that every aspect of the banquet from the cocktail reception, to the table setup and flowers, to the food and drinks, to the sound system and photographer were filled with problems and that the Wonderland Hotel had let TC International down badly. After speaking with internal and external players, John Chan discovered that a comedy of errors and miscommunications occurred to render the banquet a failure. First, the technical manager of the PA system was not given enough time to wire the tables because he had to wait for the hotel staff to clear the tables for them. The hotel services manager claimed that he was never told about the type of flowers TC International requested and that the technical group moved the flowers near a heat outlet, virtually destroying the flowers. The conference manager claimed a conference checklist was not supplied to him; therefore he was unaware of the need for video equipment. The head chef and waiter felt the entire evening schedule ran late and that they were both unable to produce adequate food and service due to delays caused by other vendors such as the electricians. Finally, the photographer claimed the conference manager had only booked him for half an hour at 10pm and that he had another booking shortly after. When the photographer arrived, TC International was still in the middle of the meal and the photographer had to leave to attend the other engagement. Had the photographer been aware of the situation, he could have arranged for a partner to stay later. The TC International banquet was a disaster due to lack of leadership, organization, and communication. Also contributing to the failure was a lack of accepting responsibility by the customers and suppliers involved. The external customer is TC International, who is paying a large fee to have a superior banquet executed by Wonderland Hotel. The external supplier is the photographer, who need to be kept informed about time changes in the event scheduling and who should have let the conference manager know of his time limitations due to other engagements. The internal suppliers are the technical manager, hotel services manager, conference manager, and the head chef and waiter. Each of the internal suppliers needs to have time scheduled appropriately to manage each individual responsibility. The internal suppliers each claimed to have been restricted by another internal supplier who infringed on the time each supplier needed to provide superior service. Due to lack of communication and leadership, each internal and external supplier was unaware of the overall affect of time delays and therefore no action was taken to correct the long line of mistakes that contributed to the banquet failure. To prevent similar disasters from occurring in the future, Wonderland Hotel should formulate a Total Quality Management (TQM) strategy. TQM is a management strategy in which an awareness of quality is known in all organizational processes that will lead to increased customer satisfaction (wikipedia, 2007). A key component of TQM is that there is an accountability standard in which every player in the organization holds and understands responsibility to do their part in attaining superior customer satisfaction. In Wonderland Hotel’s case, internal suppliers would understand the need to step up and efficiently organize large events. Each supplier would understand the need for timely delivery of services and quality that would ensure event success. Through increased communication, external suppliers and customers would be educated in their own responsibilities to make the event run smoothly. For example, TC International would be help accountable for communicating all their needs and desires for the event and the photographer would be expected to be available even in the event of a delay in the schedule. All event customers and suppliers would feel a sense of inward responsibility to make the event a success instead of focusing external blame for any problems that occur. Reference http://en.wikipedia.org/wiki/Total_Quality_Management

A Tale of Two Cities Essays: A Critical Analysis -- Tale Two Cities Es

A Critical Analysis of A Tale of Two Cities Three Works Cited A Tale of Two Cities is a novel that is very complex and intense. Once you get to know the characters you can feel what they are going through and form a kind of bond with them. A Tale of Two Cities grabs the reader’s attention with the history of revolutions in the nation and the generations of that time, but it also keeps the reader reading with a sense of a pure violence that is hard to create. The combination of critical literary and historical methods brings out the novels complex structure and intense impact on the reader. Dickens brings out the historical side of the Victorian age with examples and details of the French Revolution and Victorian Revolt. Lee Sterrenburg says that Dickens' vision of the revolution was probably influenced by "a personal day dream only he can fathom. But he is able to render his day dreams in terms of a publicly Victorian Iconography". (Hutter 37) The Victorian revolt happened late in the Victorian Age and was a turning po...

Is Bigger Always Better? Essay

For centuries, a plump figure was considered attractive in both men and women.   Full figures suggested a life of ease and luxury.   Still today, children are taught that an older man in a red suit with a rounded midsection is jolly and approachable.   Some may even feel that a little fat around the belly is not such a bad thing.   Sadly, far too many people have more than a little.   Obesity has become a worldwide epidemic that affects individuals psychologically, socially, economically, and physically.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Obesity can strongly affect an individual psychologically and socially.   Just as prejudices against race, sex, and religion are common all across the world, so is prejudice against obese people.   The AORN Journal states that obese individuals â€Å"often are considered lazy overeaters without will power or motivation [†¦] are slothful, have poor personal eating and exercise habits, are of limited intelligence, and lack self-control (Shortt).   Such prejudices have even been seen in physicians who are obesity specialists.   According to a study found in Psychology Today, some physicians â€Å"associated fat people with laziness and stupidity and connected them to words like ‘bad’ or ‘worthless’† (Allen).   The fact that healthcare professionals have such strong biases reinforces how widespread â€Å"the stigma of obesity is in our society† (Allen).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Unfortunately, prejudice and discrimination carries on into everyday life for the obese individual.   Economic hardship may ensue.   Employment opportunities may be affected.   â€Å"Employers often presume that people who are obese are lazy and have poor work habits: (Allen).   This misconception results in job opportunities being denied or limited to the obese.   Employers also â€Å"want their companies to be perceived as ‘young, dynamic, and energetic’ so they avoid putting people who are obese in visible positions, erroneously believing that the obese person will not be quick or alter to the public’s needs† (Allen). Although employment opportunities may decrease, expenses related to obesity are on the rise.   Clothes and shoes cost more because the items may have to be especially made and ordered.   Medical bills for associated health problems begin to pile up.   Finding a seat to fit in becomes an added difficulty.   For example, many airlines are now requiring obese individuals to purchase two seats to accommodate their wider size.   Added expenses pose a serious dilemma, since income rates are lower and poverty rates are higher in families with obese members (Raman).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Emotional suffering, however, may be one of the most painful effects of obesity.   Society subtly teaches that attraction equals thin.   The pressure from peers does not help either.   Obese individuals, especially children and adolescents, are often subjected to endless teasing and ridicule.   It is of little wonder that not so thin men and women think of themselves as fat and unattractive.   These individuals may start to believe the prejudices about them are true.   Such feelings of low self worth lead to depression in many individuals. Thus, depression is often linked to obesity.   Concerning children, and article in Psychology Today states, â€Å"The longer a child is over weight, the more he or she is at risk for depression and other mental disorders† (Lawson).   Without intervention, these problems can carry on into adulthood.   Obese children and adults are at risk for serious emotional problems.   The Merck Manual of Diagnosis and Therapy states, â€Å"Problems include disparagement of body image, a condition in which persons feel that their body is grotesque and loathsome.    They believe that others view them with hostility and contempt, which makes them self-conscious and impairs social functioning† (Beers 60).   Sadly, these emotional problems may affect personal achievements and relationships.   According to the Journal of the American College of Nutrition, then umber of years of education and marriage rates were lower among women who were obese in childhood and adolescence (Raman).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   While the psychological, social, and emotional effects of obesity are significant, the physical effects of obesity are far more profound.   In fact, the physical effects of obesity are life-threatening.   According to the AORN Journal, â€Å"a person who is 40% overweight is twice as likely to die prematurely as a person of average weight† (Shortt).   The article continues by stating, â€Å"In 2000, obesity due to poor diet and inactivity cause 16% of all deaths (ie, 400,000), making it the number-two killer after tobacco use (ie, 435,000 deaths)† (Shortt).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Obese individuals are at an increased risk for many chronic medical conditions.   The AORN Journal lists type 2 diabetes, heart disease, stroke, hypertension, sleep apnea, osteoarthritis, and some forms of cancer as conditions related to obesity (Shortt).   Concerning the increased risk of cancer, Brunner and Suddarth’s Textbook of Medical-Surgical Nursing states, â€Å"Obesity is associated with endometrial cancer and possibly postmenopausal breast cancers.   Obesity may also increase the risk for cancers of the colon, kidney, and gall bladder† (Smeltzer 321). The text also correlates obesity and back injuries due to increased stress in the â€Å"relatively weak back muscles† (2051).   Several other physical effects of obesity are noted in the Merck Manual of diagnosis and Therapy including orthopedic disturbances of weight-bearing and non-weight bearing joints.   The text also states, â€Å"Skin disorders are particularly common; increased sweat and skin secretions, trapped in thick folds of skin, produce a culture medium conducive to fungal and bacterial growth and infections† (Beers 60).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Everyday tasks become a burden to the obese.   Climbing a set of stairs, walking to the mailbox, tying shoelaces, and playing with their own children are all considered strenuous activities.   The onset of shortness of breath, increased heart rate and blood pressure, seating, and fatigue quickly bring any type of physical activity to an end.   The increased stress to the heart due to obesity can eventually lead to chronic heart failure and even death.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The expression â€Å"bigger is better† is true for many things.   Weight is not one of them.   As waistbands continue to expand, human lives are being endangered.   Obesity is a worldwide crisis that brings long-term psychological, social, emotional, and physical effects.   A closer look at obesity proves that bigger is not always better. Works Cited Allen, Colin. â€Å"Obesity Doctors Are Weight Biased.† Psychology Today.   29 Sept 2003. Beers, Mark and Robert Berkow.   The Merck Manual of Diagnosis and Therapy.   17th ed.   West Point: Merck, 1999. Lawson, Willow.   â€Å"The Obesity – Depression Link.†Ã‚   Psychology Today.   27 May 2003. Raman, Rita.   â€Å"Obesity and Heatlh Risks.†Ã‚   Journal of the American College of Nutrition.   21 (2002). Shortt, Janet.   â€Å"Obesity – A Public Dilemma.†Ã‚   AORN Journal. Dec 2004. Smeltzer, Suzanne and Brenda Bare.   Brunner & Suddarth’s Textbook of Medical – Surgical Nursing.   10th ed.   Philadelphia:   Lippincott Williams & Wilkins, 2004.