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Advantages of Non-Financial Performance Measurement Over Financial Performance Measurement

Financial Performance Measurement

The motive of every business is to achieve the bottom line of maximum financial benefits. In order to comply with the same, companies have come up with financial performance measurement techniques. The very idea is to ensure that no matter what the resources do and the way they function, they would have to show profits in the profit and loss statements. It is carried out generally in three different steps. They have been mentioned as follows:

Firstly, it encompasses selecting the goals of the organization.

Secondly, and also as the most important part, it is to consolidate the measurement of information with respect to the performance.

Finally, the required changes made by the managers so as to serve as a remedy over the weak links in the financial charts of the company. So, one can say that the financial aspects of performance measurement is basically sales driven. There are certain milestones that companies set for employees. A deficiency in being able to fulfil even a certain process can be harmful for the position. So, this method of performance measurement is also known to show certain insecurity for the employees. Hence, it might not give the most authenticated results. Business Performance Management is by and large measured by the financial aspects of performance measurement. The specific techniques for the same have been mentioned as follows:

Approaches to Financial Performance Measurement

Economic Values Added

This method deals directly with the economic profit of the organization that goes directly into the balance sheets. This method in other words can be used to measure the Net Operating Profit after Taxes. There are also certain adjustments that are made in the calculation of Economic value added so that the companies can make it more synchronized with the profit entry in the profit and loss statements. This method is generally used by lower stature companies these days. The reason for the same is that at the moment, the companies can afford to look at the business functioning only from the financial perspective. There is much more to achieve.

Activity-Based Costing

The fundamental law of economics says that management would have to make the most from the least resources that are available to them. In regard to keeping with the statement, the companies generally identify the processes that are in the system and then classify them as separate activities. Followed by this, the companies assign separate costs to each of the activities. This can be done in the form of direct and indirect costs.

Reason for shift from Financial to Non-Financial aspect

In other words, we can say that this is also a form of performance measurement on the basis of finance aspects. One can assign costs to each of the activities, but then there are always, restrictions on the use of the activities that are highly expensive. Once, again, this method would not be applicable in the long-run. The reason for the same is that this method forms a hindrance to the long-term …

Insurance Required During Construction Or Conversion of Vessels Or Rigs

1. Builder’s All Risk Insurance:

Usually during the contract negotiation stage, when it is as yet unclear as to which party will be accepting which liabilities, which party will be responsible for procuring the insurance and absorbing the deductibles, etc., both parties look more deeply into the breadth of available BAR coverage.

We can say that Builder’s Risk Insurance for the energy class of business provides coverage under three different forms:

  1. London Institute Builder’s Risk Clauses 1.6.88 (CL 351) – or American equivalent
  2. WELCAR form
  3. Custom forms tailor-made to specific risks or Owners or shipyards.

Is the protection provided under all BAR policies the same? No! For a comparison between wordings please contact a trusted insurance broker of your choice.

2. War Risks and Strikes, Riots, Civil Commotions (SRCC):

a. Institute War Clauses Builder’s Risks 1/6/88 (CL 349) –

Coverage incepts once the vessel is launched (or wet) and provides coverage for loss of or damage to the insured vessel / rig caused by:

  • war, civil war, revolution, rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power
  • capture seizure arrest restraint or detainment, arising from perils covered above, and the consequences thereof or any attempt thereat
  • derelict mines torpedoes bombs or other derelict weapons of war.

b. Institute Strikes Clauses Builders’ Risks 1/6/88 (CL 350) –

Provides coverage for loss of or damage to the insured vessel / rig caused by:

  • strikers, locked-out workmen, or persons taking part in labor disturbances, riots or civil commotions
  • any terrorist or any person acting maliciously or from a political motive.

We recommend that this coverage be amended to include Vandalism and Malicious Mischief.

Please also review if the terrorism coverage provided under this clause is either restricted or broadened, or if there are any other applicable clauses such as Sabotage & Terrorism Endorsements. In any case, be sure that the coverage afforded is adequate for your Client so your Client makes an informed decision.

3. Liability – Insurance coverage that protects an insured against claims made by third parties for damage or injury to their property or person. These losses usually come about as a result of negligence of the insured. In marine construction, this policy is referred to an MGL, marine general liability policy. In non-marine circumstances, the policy is referred to as a CGL, commercial general liability policy. The construction contract should determine which parties are liable in which instances for losses of Third Party Liability nature.

Insurance policies can be divided into three broad categories:

  1. Product Liability – Protection against a Manufacturer’s liability for injuries or property damage after a manufactured product has been sold. Extraordinary liability accompanies the manufacture of a product.
  2. Completed Operations – Protection against a Contractor’s liability for injuries or property damage suffered by Third Parties as a result of the Contractor completing an operation.
  3. “Trips & falls & damage” – Protection against injuries or property damage on premises or hulls within care, custody, control of a party.

Pros and Cons of Starting a Hot Dog Cart Business

Business is the new and successful trend nowadays. Working in the typical 9-5 job and working very hard but still unable to satisfy the boss is just a headache. Have your own business in which you can easily alter the timings and working hours, earn complete profit and the best thing to know that there is no one who will be asking the questions. Hot dog cart business is a very popular and successful business in this regard.

To start the vending cart business you need many things such as the cart, the health certificate, proper license of the cart, and many more. They are very popular and now the business is also becoming very popular. There are surely many pros and cons of a street vending business among which some pros and cons are as follows.

The best thing and the main pro of the hot dog business is that it is 100{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} recession proof. Remember that whatever happens, people will eat and enjoy the best food in the market. Another great thing is that it is easy to start up and you can set up it in just two weeks. Low start up cost but great profits is another pro of this business.

Well you have read the pros of the business but now it is the time for the cons. The biggest problem with this business is that it requires too many things before actually starting the business such as the medical certificate, license and many more things. Location plays an important role if you are standing on an awkward location then you will go down with your business. Weather also plays vital role, if it is raining or too cold then you will have to shut the cart for few days until the weather settles up.

Well the above are some pros and cons of the hot dog cart business but it is true that hot dog cart business is very successful and somehow easy as well to earn money.…

Why Getting $30,000 Personal Loans With Bad Credit Is No Lie

It is no surprise that the majority of people would consider the chances of securing a $30,000 personal loan with bad credit next to impossible. The sum is high and the perceived risk is too. So, what lender would agree to the deal? Well, the truth is that, with the right application, even this loan is attainable.

It is easy to look at the loan application at face value and reckon lenders would reject it. When it comes to traditional lenders, the likelihood is actually very strong, but the growth of online lending has opened up many niche markets – such as bad credit lending. Online lenders are willing to grant approval despite poor credit scores.

Their willingness is not rooted in foolishness, however. They are bad credit lending experts, offering a route to vital funds to those unable to secure affordable deals from traditional lenders. Lending a large personal loan to applicants eager to improve their credit ratings is not as risky as it seems.

Two Kinds to Consider

There are two types of personal loans available on the market: secured and unsecured. The core difference between them is the presence of collateral with secured loan, but the type chosen can have a big influence on the chances of getting a $30,000 personal loan with bad credit.

Basically, getting approval with a secured loan is much easier because it is backed up by collateral that can be used as compensation should the borrower default on the loan. With no collateral provided, income is the key hope to securing approval despite poor credit scores.

But there are problems with large personal loans, namely getting collateral that matches the value of the loan. It is no great problem when $1,000 loan is being applied for, but a $30,000 loan is a different matter. But if collateral can be found, the interest rate lowers and repayment scheme becomes more flexible.

How Cosigners Solve the Problem

There is a security option open to applicants that cannot find collateral when seeking a $30,000 personal loan with bad credit. A cosigner is not technically security, as he or she is not required to get involved unless the borrower becomes unable to make repayments.

A cosigner is effectively a guarantor, providing an assurance to the lender than the monthly repayments will be made. This is the best possible addition to a loan application since lenders only ever want to be sure of receiving the repayments on time. So, with a cosigner the chances of securing approval despite poor credit scores is extremely high.

However, there are conditions to the deal. A cosigner has to have an excellent credit history and have a large enough income to meet the loan repayments should that become necessary. But once the right candidate is found, securing the large personal loan becomes a probability rather than a possibility.

Your Credit Scores

A final issue to consider is your own credit score, and whether they can be improved ahead of submitting the …

Is My Insurance Company Trying to Cheat Me?

Let’s be honest, anyone who has had an insurance claim has had this or a similar thought run through their head. For many years insurance companies have done things to earn a bad rep. I’ve been in the insurance restoration industry for the last 10 years, and during this time I can honestly say that I have rarely met an adjuster or contractor that wanted to skimp on the settlement. The few times I’ve seen this is when the policyholder has been extremely difficult to work with. Yes, bad estimates happen, however, most of the time the feeling of being “shorted or cheated” comes from not understanding your policy and how it pays out.

The biggest misunderstanding is most often the issue of matching. Insurance policies are specifically written with terminology and phrases to avoid matching. Homeowner’s coverage is to replace the damaged items with like kind and quality. While as a homeowner and contractor I often don’t agree with this and I will fight it to the best of my abilities. To explain this policy the easiest is to give you situations where you will most likely run into this situation. Let’s say you have a flood where the carpet has to be removed in the hallway. The same carpet runs throughout the home. The living room opens and connects directly to the hallway with the same carpet and you have 3 bedrooms directly off of the hallway and an office with french doors off of the living room. The carpet in the hallway and living room will be replaced but the carpet in the bedrooms and office will most likely not be replaced as most insurance policies are written to stop at doorways.

The other situation is most often with kitchen cabinetry. If water damages your lower kitchen cabinets (or a fire, your uppers) most insurance companies will allow replacing the run of damaged cabinets (meaning all of the lowers or all of the uppers). If you have specialty/custom cabinets you will most likely be given a custom price to rebuild that run of cabinets to match what was there. Very rarely is matching kitchen cabinets likely these days, however, it is not impossible. Over the past 25 years, there are hundreds of cabinet styles and specialty finishes, from dozens of manufacturers. Unless you recently replaced the kitchen, it will take countless hours of research to find the cabinet manufacturer that made your cabinets (a good place to locate the manufacturer is on the inside of the door. Let’s say you’ve managed to find the manufacturer, companies usually discontinue a line every 4-7 years, or they make considerable changes to it. On top of the possible discontinued issue, it is very likely that the elements have changed the finish on your cabinetry. Perhaps your contractor has pointed the issues out to your adjuster, depending on the difficulty they may add extra money to allow to get a close match, perhaps a custom cabinet.

This is where you have …

If Your Girlfriend Left You Over Money Problems, You Need to Take Action

What is the number one reason most relationships break up? Terrible sex? Too much nagging? Incompatibility? Another lover? You just drifted apart? It’s none of these. By far, the biggest reason that relationships fail can be summed up in one word: Money.

If you have money problems, then you have big problems. Nothing creates tension and hardships like persistent hassles with bills, paying rent, making a car payment – or maybe even not being able to afford a car at all! If your girlfriend left you over money problems, then you have one of the most difficult situations to remedy. Getting an ex-girlfriend to come back to you is hard enough the way it is. It’s even harder when you are hard up for cash.

But before we get all depressed about this situation, let’s get some perspective. Many guys think that if only they were rich, or at least well off, their girlfriend would have never left them. It’s not as simple as that. If you don’t believe it, just tune into what is happening with the rich and famous around the world, be it movie stars or royalty. It quickly becomes apparent that people with a lot of money have no better luck – an obviously sometimes a lot worse luck – with staying within a relationship. How many movie stars can you think of in the next five minutes who have two, three or maybe four divorces under their belts?

The fact is, having a lot of money is no guarantee of relationship success. If you are feeling sorry for yourself because your girlfriend left you over financial problems, then it’s time to start rethinking the whole situation. You could be filthy rich, and she might have left anyway.

What does this tell you about money? Clearly, it makes no difference how much you have or how little you have. If the fundamentals of your relationship are strong, even a terrible money situation should not be an excuse for your girlfriend to leave. Money is only a convenient excuse, an outward factor.

Okay, but let’s also recognize that while money may not be the ultimate reason she left you, it certainly was a contributing factor. That’s because constant stress over money creates an overall climate of tension and struggle. It is very difficult for any relationship to thrive in an environment of constant struggle.

Incredibly, many guys do exactly the opposite thing they should do when they have money problem, and their partner leaves – they plunge themselves into even more debt! That’s right!

There is something about relationship problems that can drive many men to lose all common sense. For example, they think that if they only had a nicer car, maybe their girlfriend would come back to them. So they pull out all the stops, marshal all of their resources, and take out a huge loan to get some new wheels. So now they have a shiny new car, and even more debt and payments …

Understand the Pros and Cons of Saving Money in Piggy Banks

It is always a great idea to put some money away for a rainy day or for a future purchase. But where you put it is a personal choice depending on what your considerations are. Do you have security in mind? Or is it convenience perhaps? Whatever they may be, you might have thought of getting a piggy bank in which to store some extra money. It might help you if you understood what using one of these entails. There are obvious advantages as well as disadvantages that come with piggy banks.

Advantages

We all have spare change left over from grocery shopping and other small purchases, and sometimes we just put it all over the house because we do not have a central place to deposit it. A coin bank will enable you to keep track of the small amounts of money that might otherwise simply lie around or get lost. It can also be a great way to actually save toward a small purchase such as something you saw on sale at the shop down the road. Small, regular deposits into the piggy bank will accumulate enough to reach the desired amount. There are some large piggy banks that are convenient for growing a decent saving, so that might be of interest to you.

Most piggy or coin banks by their very design are pleasing to look at. That means that besides using them to put away some money, you can also use them as decorative pieces in the house. The piggy bank may not necessarily come in the design of a pig, but some are modeled after other animals or objects. So you could choose to become a collector of them and make them serve the double duty of storing your money and brightening up your house.

Disadvantages

When you are saving money, it is usually for a particular reason. Therefore, it is in your interest to ensure that it accumulates enough to achieve your goal. For instance, if you are saving to treat yourself to a night out on the weekend, it is possible to get tempted during the week to use the money for something else because it is readily available. It requires that you exercise self control and discipline to not raid the piggy bank at will just because it is convenient.

There are really no disadvantages of keeping money in a piggy bank except that you may get tempted to withdraw some amount when you need it. But it is really not such a bad idea to withdraw money when you need it. The piggy banks serve as your instant back-up plan. You have to go to a bank and withdraw money and that involves time and energy. On the other hand withdrawal from a piggy bank home is very easy.…

Importance Of Data Mining In Today’s Business World

What is Data Mining? Well, it can be defined as the process of getting hidden information from the piles of databases for analysis purposes. Data Mining is also known as Knowledge Discovery in Databases (KDD). It is nothing but extraction of data from large databases for some specialized work.

Data Mining is largely used in several applications such as understanding consumer research marketing, product analysis, demand and supply analysis, e-commerce, investment trend in stocks & real estates, telecommunications and so on. Data Mining is based on mathematical algorithm and analytical skills to drive the desired results from the huge database collection.

Data Mining has great importance in today’s highly competitive business environment. A new concept of Business Intelligence data mining has evolved now, which is widely used by leading corporate houses to stay ahead of their competitors. Business Intelligence (BI) can help in providing latest information and used for competition analysis, market research, economical trends, consume behavior, industry research, geographical information analysis and so on. Business Intelligence Data Mining helps in decision-making.

Data Mining applications are widely used in direct marketing, health industry, e-commerce, customer relationship management (CRM), FMCG industry, telecommunication industry and financial sector. Data mining is available in various forms like text mining, web mining, audio & video data mining, pictorial data mining, relational databases, and social networks data mining.

Data mining, however, is a crucial process and requires lots of time and patience in collecting desired data due to complexity and of the databases. This could also be possible that you need to look for help from outsourcing companies. These outsourcing companies are specialized in extracting or mining the data, filtering it and then keeping them in order for analysis. Data Mining has been used in different context but is being commonly used for business and organizational needs for analytical purposes

Usually data mining requires lots of manual job such as collecting information, assessing data, using internet to look for more details etc. The second option is to make software that will scan the internet to find relevant details and information. Software option could be the best for data mining as this will save tremendous amount of time and labor. Some of the popular data mining software programs available are Connexor Machines, Free Text Software Technologies, Megaputer Text Analyst, SAS Text Miner, LexiQuest, WordStat, Lextek Profiling Engine.

However, this could be possible that you won’t get appropriate software which will be suitable for your work or finding the suitable programmer would also be difficult or they may charge hefty amount for their services. Even if you are using the best software, you will still need human help in completion of projects. In that case, outsourcing data mining job will be advisable.…

What is Stopping You From Achieving Your Goals?

It is the end of January and what has happened with your ‘new years resolutions’? Have what most people consider their goals, gone by the wayside already? What about other goals you set throughout the year – do they come to fruition or do you falter on those? When we fail to achieve our goals not only do we fail to achieve the changes we identified as being desirable (the purpose of the goals) but we also do our self-esteem harm. If you have tried to lose weigh every year for the last twenty years and not achieved what you set out to do, you may feel a failure. Why bother this year… you never win? Sound familiar?

There are many reasons why people fail to achieve their goals. The top ten reasons are listed below. Have any of these held you back in the past? Identifying what it is that prevents you following through and successfully implementing changes in your life might be what helps you succeed with your next goal.

  1. Waiting for something to happen? I will start on Monday; I will start once the kids go back to school. When you first set a goal you are most passionate about it. Start then. The longer you wait to start, the less likely you will be to get things done. Starting, even a first step, builds momentum.
  2. Not knowing what you want. In our society thinking of others before yourself is encouraged and thought of as praise worthy. We are not encouraged to know ourselves and to pursue our dreams, those things that make us happy. Constantly putting oneself last makes it difficult for you to truly identify what you want and what your priorities for your life are. Goals you set that actually represent what other people want will rarely come to fruition. Your goals have to represent what you want. Learn to dream.
  3. Thinking you need to tackle the whole project at once. Sometimes the sheer size of a project can be daunting and discouraging. By breaking a large project into smaller task, setting milestones along the way and celebrating the achievement of each milestone keeps us motivated and makes achieving a large project much more likely. Take a bite and chew, then take another bite…
  4. Failing to set goals. Some free spirits believe that setting goals would impose a rigidity on their life that they resist strongly. Setting goals does not constrain you or take away from your freedom. In fact it helps gain clarity and increases your personal freedom. 90 percent of people who set goals achieve them. Everyone’s life is directed by goals so remember if you don’t live your life by your goals, you will be living by someone else’s.
  5. Fear of failure. Some of our best lessons in life come from learning from our mistakes, yet we as a society place such a stigma on ‘making a mistake’ that they indulge in blame and self-criticism when ever things don’t go as

Workers Compensation Retrospective Rating Plan

Using a simplified definition, a retrospective rating plan (retro) is a pricing plan available in which your workers compensation premium is developed, in its final form, by the losses sustained during the policy period.

First let’s go over the components of a retro:

Maximum Premium: This factor represents the percentage over and above the standard premium, which can be collected in the event of adverse loss performance during the policy period. Example: A $50,000 policy with a 1.25 (125{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}) maximum could potentially be billed $62,500 if you had a high claims amount. This factor is part of the negotiating your agent should do on your behalf. It is subjective and set by the underwriter.

Minimum Premium: This factor represents the ultimate return to the insured in the event you had no losses. Example: The same $50,000 policy with a.60 (60{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}) minimum premium would pay only $30,000 in premium if you had no losses. This factor is in direct correlation with the maximum. The higher the maximum, the lower the minimum and visa versa. In other words, take more risk get more reward, take less risk get less reward.

Loss Conversion: This factor represents the cost the insurance company is going to charge you to administer the claims you incur. Example: The retro is issued with a 1.10 (10{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc}) loss conversion factor and you incur a $10,000 claim. The insurance carrier will calculate this claim as $11,000 ($10,000 x 1.10 = $11,000). This factor is also negotiable and set by the underwriter. This factor has a direct correlation with the minimum. The higher the loss conversation factor the lower the minimum premium and visa versa.

Tax Multiplier: Because retro’s deviate from the standard policy pricing, which has the premium taxes the insurance company pays included in the premium the tax multiplier is shown separately on the retro. This factor is set by the state and is not negotiable.

Now that we have covered what the “factors” represent, here is an example of how a retro is calculated. In this example we will use a $100,000 standard premium and $40,000 in losses the following factors (The factors vary by insurance company these being used are only an example):

  • Maximum: 1.25
  • Minimum.50
  • Loss Conversion: 1.10
  • Tax Multiplier: 1.07

$100,000 (standard premium) x.50 (minimum premium) = $50,000

$40,000 (losses) x 1.10 (loss conversion factor) = $44,000

$50,000 Minimum Premium + $44,000 losses plus conversion factor = $94,000 premium

$94,000 premium x 1.07 Tax Multiplier = $100,580 final premium

In this example the final premium after the calculation was not above our maximum premium of $125,000 (standard premium x maximum premium factor) so the final premium remains as calculated.

Because the losses were high in relation to the premium size this retro did not work in favor of the policyholder costing $580 more than a standard policy would have. However, using a total claims amount of $22,000 following the same calculation formula the final calculated premium would have been $81,620 saving you $18,380 on your …