Money Management Finance and Accounting Assignment

Money Management Finance and Accounting - Assignment Example Management of Money: Discussion on the Case: As the case represents, the individual concerned has retired and he has $500,000 saved with him that he can use either for investment or for any other purpose. Either a yearly pension from a life insurance company may prove to be beneficial for him or the individual may manage the wealth himself by investing in a bank. The purpose here is to determine which approach would be more beneficial for the individual after his retirement. Case 1: Yearly Pension from Life Insurance Company: In case of life insurance companies, depending on the age and life expectancy of the individual the insurance company may decide on the pension amount that can be paid to the individual (A Basic Lesson in Immediate Annuities). It is assumed that the individual is a male and his age is 60 years. He has an amount of $50,000 to invest. If he invests the money in a life insurance company, several options of income payment may be available to him. The highest amount that he may receive is $8,455 on a monthly basis on the plan of â€Å"Guarantee Income for a 5-Year Period Certain Only† (Estimated Quotes for a Single Life Annuity). ... Case 2: Managing Own’s Wealth: The individual might even decide to plan and manage his own wealth. If he wants to deposit the amount in a bank and withdraw a certain amount every year, he would have an interest payment for himself that he will receive on the amount he has deposited. A total savings of $500,000 might expect to receive an amount of $25,000 in a year from the portfolio of income. This amount may be received if the annual rates of returns are 7 percent or 8 percent and the individual withdraws, say 5 percent on the amount. Withdrawing an amount of more than 5 percent may create troubles for the principal amount and increase risk for the individual (Generating Income from a $500,000 Portfolio). Thus if an amount of $25,000 can be received through bank investment, then monthly returns are expected to be $2083. Comparison: If the two cases are compared it can be realized that the amount that the individual may receive from a life insurance company is much higher than the amount received from a bank investment. Even the minimum amount that a life insurance company can provide the individual with is $2520 which is more than the amount of $2083 that can be expected from a bank investment on a monthly basis. In addition to the higher amounts that a life insurance company may pay off to its customer, it also provides facilities for the family members of the individual depending on the plan that the individual selects for his investment. Thus, even after his death, his family members may receive the deserved amounts that might prove to be beneficial for their wellbeing. Thus comparing both the investment options available to the individual

Dancom in Russia Essay Example | Topics and Well Written Essays - 1000 words

Dancom in Russia - Essay Example If they had been equals, administration would not have been easy. MNCs carefully avoid behaving like overlords and expect cooperation from native workers. Western countries, who were impressively successful in imperialism, had been unable to attain same level of achievement here while dealing with cultural syndromes. The provided case study of Dancom operating from Russia is an eye-opener, a situation in crying need of cross-cultural management. Study gives importance to the Russian voices of dissent heard in a Danish company. Russian workers, especially middle managers, who are 'united against headquarters in Denmark,' do not feel loyal for their company belonging to Danes. Problem of languages, lack of frequent/meaningful communication, poor and misguided interpretation, and isolated decision making with very little trust on the integrity and cleverness of Russians are the issues nagging this company. Another complex question is of insiders and outsiders, hosting insiders and hosting outsiders. Looking from Danish angle as the company belonged to them, Russians are workers from another dense culture, that too, ex-communists. From Russian point of view, overbearing Danish company is operating from Russian soil, and this should make Russians main players. There is a major difference in planning between Danish (long term activity, hence, important) and Russians (a short immediate task, not much to be bothered about), while Russians feel that Danes should have more trust in the knowledge and experience of Russian middle managers. What brings the differences other than culture, language and working pattern and natural bias How to reduce cross-cultural conflicts It had been a major challenge to Dancom. Russians are more tuned to the 'one authority' ordering, being under Communist rule for decades and Danes, being capitalistic in their approach, are more decentralised in their handling, even though they depend mainly on themselves. Years of mutual mistrust and prejudice about the other's capability (mainly due to political propaganda fed during days of Cold War) cannot be wiped out at one go. It takes time to develop trust, respect and mutual understanding and such an effort could be made through cross-cultural management. As a solution, cross-cultural relationships should be trusted and developed. Communication and co-ordination have to be developed. It is imperative to find out how Russians perceive themselves and this might be the key to many stagnating questions. Lamenting on not having research results, Jonson and Cullen argue: "Research on trust and its role in exchange has proliferated since the 1990s. However despite the insights offered by scholars, we do not yet have a generalizable and comprehensive model of trust in exchange," Jonson and Cullen in Gannon (2002, p.335). They hope to have much more research on the dynamics of trust, culture's role in the bases and evolution of trust and on business ethics across cultures. There are issues which showcase Danish approach being different from