VoIP Vs Cell Phone Research Paper Example | Topics and Well Written Essays - 5000 words

VoIP Vs Cell Phone - Research Paper Example Further research is conducted on the impacts of the development of VoIP over the existing telecommunications industry focusing on the mobile and land phone operators. A comparison is also drawn on the parameter of benefit earned over the cost incurred with regards to both cell and VoIP phones. Finally the paper concludes by drawing a summary on the research made by providing fruitful suggestions thereof. Table of Contents Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3-4 Mechanism of working and quality of service†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4-6 The Impacts on business and the society†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..6-10 VoIP and smart phon es impacts over cell phone and telecom companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10-19 Cost and Benefit analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19-20 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20-21 Conclusions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...21-22 Introduction Brief History of VoIP The development of VoIP or Voice over Internet Protocol is considered as a major breakthrough in the field of Internet communication technology. ... technological, economical and cultural. Technological history shows that VoIP process first came into existence after the innovation of ‘Internet Phone’ application by Vocaltec Incorporation in Israel during February 1995. Development of the internet phone application helped the users to communicate to each other through the integration of computer, internet and voice modulators. However, to make the VoIP process useful the existence of the ‘Internet Phone Software’ was needed at both ends i.e. the speaker and the receiver. However with the advent of 1998 the development of hardware technology spread the use of VoIP in computer to telephone and telephone-to-telephone networks. VoIP process in the context of modern period has totally revolutionized the field of communication technology in terms of voice clarity and economy of use. This present day notion of VoIP has brought a cultural modification in many companies shifting over to the use of the innovated pr ocess. Development and expanded use of VoIP technology caused many telecom companies to mushroom out to economically cater to their client’s call needs. The telecom market for the dearth of proper administrative regulations became populated with many such small telecom companies competing against each other. Telecom giants like Telco mostly managed these companies. (Hallock, 2004, pp.4-11; VoIP:  Voice Over Internet Protocol Architecture and Features, n.d., pp.14-15). Brief History of Cell phone The history of mobile or cellular technology goes far beyond than what has been recorded for. Use of mobile phones was restricted to the business and governmental societies during the period of the 1970s. Thus the common man had no notion about the cellular technology for being devoid of its access. The

A news feature story about Indiana Universitys effort to control Essay

A news feature story about Indiana Universitys effort to control student costs by making it more likely that students will graduate on time - Essay Example According to Mr.McRobbie, the program will allow qualified students to receive on-time completion award equal to any increase in tuition and fees that they could otherwise have incurred during their final two years in the university. The program will also allow any qualifying student who has not graduated to pay the current tuition and fee according to the current rates for any time at Indiana University beyond their fourth year. This move is seen as a step aimed at encouraging students to graduate in four years without having to incur excessive debt. To eco this, McRobbie said †this award makes two things clear: that we are serious about holding down the cost of an IU degree, and that we are equally serious about providing tools and incentives to help students stay on course for on-time degree completion.†. He continued to state, â€Å"The University has clearly put into consideration both the students and families message that to them, cost matters when pursuing a degr ee course. Our efforts in trying to keep our degrees at affordable standards will not only improve will not only improve on graduation time rates, but also lower the cost of the degree.† The university has not only sought to reduce the tuition costs alone. It has instituted a financial literacy program for students. The move was welcome by students who saw it as a great relief from the backlog of academic tuitions as well as instilling more knowledge on their financial understanding. Most of the students in their final years of their study previously, were not exempted from class work. â€Å"This move by the university comes as a relief to most students who are on their final years of their studies with minimal work to cover. Indeed, mostly, students at this stage of their program rarely attend classes,† Said the Universities’ student spokesperson in an interview. â€Å"At least, we now can position ourselves as students with enough information on financial literacy† he states.

Hedda Gabler by Henrik Ibsen Essay Example for Free

Hedda Gabler by Henrik Ibsen Essay Henrik Ibsen writes realistically, meaning that he writes in a way which is relatable and constant to the time period and characters. He doesnt get overly dramatic. There are multiple themes in Hedda Gabler such as Manipulation, Wealth, Reputation, and Death. Since it is a play, it does not have a point of view. Summary Hedda Gabler is a play that takes place entirely in the living room and another room off to the side in the fashionable side of Christiana, Norway, in 1890 or earlier. The newlywed couple of Jurgen and Hedda Tesman come back from their 6 month honeymoon and wake to find that Jurgan Tesmans aunt Julle has come for a visit. This scene establishes Heddas disinterest in Tesman, as she is rude to his aunt and him. A woman named Mrs. Elvested arrives and informs the crowd that Tesmans rival, Ejlert, is back in town and she is concerned that being back in town will cause him to fall back into old alcoholic habits. Later, Judge Brack arrives and brings gossip from the town. He tells Tesman that Ejlert is a candidate for the professor position that he wants stirring up worry between Tesman and Hedda. Judge Brack and Hedda have a private conversation and decide to become confidants and Hedda confesses that she is bored with Tesman and unpleased with the house he bought her. Tesman arrives back and drinks with Brack while Hedda and Ejlert make conversation. Hedda is bored and decides to pit Ejlert and Mrs. Elvested against each other, causing Ejlert to start drinking again and upset Mrs. Elvested. Tesman, Brack, and Ejlert leave for a party that Brack is throwing. Mrs. Elvested is concerned but Ejlert promises to return to escort her home. Mrs. Elvested goes in another room to sleep when Tesman comes home. He announces to Hedda that he has Ejlerts manuscript that he dropped when he was walking home and he intends to return in. Brack arrives and informs them that Ejlert got arrested. Brack leaves and then Ejlert gets there and tells Mrs. Elvested that he destroyed the manuscript, unaware that Tesman is in possession of it. He later confesses to Hedda that he lost it and is now suicidal. Hedda gives him a pistol and tells him to die beautifully. She burns his manuscript. Act four begins with everyone dressed in black for Tesmans Aunt Rinas death. Mrs. Elvested arrives and tells everyone that Ejlert is in the hospital. Then, Brack arrives and tells them that he is dead, a gunshot wound to the chest. Tesman and Mrs. Elvested try to reconstruct Ejlerts manuscript and Brack tells Hedda that his death was messy and an accident. He also tells her that scandal will probably befall her. She goes into a side room and plays the piano for a bit before shooting herself. Conflict, Climax, Resolution The conflicts in the story are that Mrs. Elvsted is distraught and has left her husband, Ejlert could start drinking again, the Judge wants Hedda in one way or another, and Tesman has to compete for his professorship. The climax is when Hedda burns Ejlert’s manuscript and then aides in his suicide. The denouement is when the judge explains everything and Mrs. Elvested and Tesman work on reconstructing the manuscript. Character Analysis Hedda Gabler is the antagonist of the story, causing most of the conflicts. She was raised in a wealthy family and when she married Tesman she had to accommodate to much less fortune than she is used to. She is manipulative and cruel to most of the characters in the play. Jurgan Tesman is Hedda’s husband. Although he is vastly intelligent, he is oblivious to her cruelty. He tries very hard to please her and went to great lengths to buy her a house a support her and provide everything she needs. He was raised by his Aunt Julle. Judge Brack is essential to the story because he is Hedda’s closest confidant. He also brings news to the story; he serves as sort of a gossip source. He visits the Tesman residence often, as he is close with both Tesman and Hedda. Ejlert Lovberg is Tesman’s long-time academic rival. He is Tesman’s only competitor for a professorship. He is back in town and has a published novel with good reviews. He also has a manuscript for another novel. He once shared a close relationship with Hedda. Mrs. Elvested hired Ejlert as a tutor for her children but grew attached and now acts as his assistant/secretary and travels with him for his writing. She is concerned about his drinking problem. Mrs. Elvested also went to school with Hedda where she was bullied by her.

Total Effect of The Tragedy of Macbeth :: essays research papers

The Shadow   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"The Tragedy of Macbeth†, written by William Shakespeare, gives the reader an impact of the horror at the darkness in humans. In the story, the most dominant literary element is the theme. The theme brings out the impact of horror, while the other literary elements support it. One of the most evident quotes that made me think of the horror of darkness in humans was said by Macbeth, â€Å"Stars, hide your fires; Let not light see my black and deep desires†¦Ã¢â‚¬  This quote showed that Macbeth was heavily influenced by his ambitions.   Ã‚  Ã‚  Ã‚  Ã‚  The theme, being the most dominant literary element, shows how the darkness in people has been drawn out. Themes such as appearance versus reality, attempts to control the future, human responses to supernatural powers and loyalty show how we can be easily taken over by the evil in us. After the death of King Duncan, Macbeth tries to convince himself that he did the right thing. He murdered his king in cold blood and regained his consciousness for a brief moment. â€Å"Will all great Neptune’s ocean wash this blood clean from my hand?† this quote, also spoken by Macbeth, gives the reader a sense that he regained his ego and was exposed with extreme guilt. It also gives a sense that he was possessed by a demon. This can be backed up by the theme of human responses to supernatural powers. Although the witches contribute greatly here, I would want to talk about hallucinations first. (In psychology, hallucinations are a form of supernatural powers.) The soliloquy in Act II Scene I show Macbeth hallucinating of an imaginary, bloody dagger. â€Å"Is this a dagger which I see before me, the handle towards my hand?† This was his illusion of what was upcoming, the murdering of King Duncan. This illusion gives the reader a sense that he is possessed by his alter-ego that he is going to kill the king. The witches foretold the future, and that their prophecies of Macbeth let his own â€Å"shadow† take over himself. Being that Macbeth went crazy from murdering his king, he also became aware that this murdering might also happen to him. This he decided to try and control his future – well, at least in several attempts, but always ended up half done. â€Å"To be thus is nothing, but to be safely thus†¦Ã¢â‚¬  this quote shows that Macbeth is in fear, and he tries to overcome this fear by eliminating anyone that was a threat to him.

Effect of Unethical Behavior Article Analysis Essay

The Sarbanes-Oxley Act, passed in congress in 2002 is designed to protect investors from the potential of fraudulent corporate accounting activities. This act strictly mandates reform, aimed directly to prevent fraud and improve corporate financial disclosures (INVESTOPEDIA, 2012). As a result of several confidence shaking investor accounting scandals that occurred during the late 90s which involved high profile corporations such as Enron, WorldCom and Tyco, a much required overhaul regarding financial statements and regulatory standards laid the foundation for the Sarbanes-Oxley Act. This act is making the accounting world more accessible to others for auditors to come in and help in checking the books. It will hold the executives and directors accountable for the internal controls of the company especially with the threat of imprisonment if the internal controls are not maintained. The act ensures that a â€Å"checks and balance† internal auditing of the accounting cycle for the company and investors to keep their assets in check. The role of internal audits is to ensure that Institute of Internal Auditor’s Standards for the Professional Practice of Internal Auditing Standard 300 Scope of Work be followed. The scope of the internal audit should encompass the examination and evaluation of the adequacy and effectiveness of the organization’s system of internal control and the quality of performance in carrying out assigned responsibilities (M. Wood Company, 2012). The internal audit standards are to review the dependability and integrity of financial and operating information and the resource being used to identify measure and classify those reports. The standard requires the system be reviewed to ensure compliance with those policies, plans, procedure, laws and regulations which may have a huge impact on operations and reporting. The standard is used to review the methods in place to safeguarding assets and verify that the assets protected exist. The final purpose of the standard is to appraise the economy and the efficiency with the means that are employed by a corporation. It is important to note that policies and rules are also enforced to uphold the Sarbanes-Oxley Act. Sections 302, 401, 404 and 805 in particular address key requirements as it pertains to effecting financial statements. Section 302 requires senior managers to certify the accuracy of the reports along with establishing internal controls are set in place for the purpose of increasing report accuracy, ensuring honesty and ultimately providing financial protection for the investors. Section 401 ensures that statements may not contain fraudulent information. Section 404 provides for the necessary rules for annual reporting as well as addresses management auditing structures. Lastly, section 805 provides the guidelines for federal sentencing relating to criminal fraud and obstruction of justice. (Hazels, Nov/Dec) A very important question that should be asked is how well main stream America understands the Sarbanes-Oxley Act of 2002 and how it has effected them? Another pressing area to uncover is how it has affected the US economy over the past ten years? Lastly, it would be interesting to understand how US companies interface globally with countries not held to the same standards. References Hazels, B. (Nov/Dec 2010). Eight Years After The Fact Is SOX Working? A Look At The Brooke Corporation. Journal of Business Case Studies, 6(6.6), 19-29. Invesotopedia. (2012). Sarbanes-Oxley Act Of 2002 – SOX. Retrieved from http://www.investopedia.com/terms/s/sarbanesoxleyact.asp#axzz2BCoqABsQ M. Wood Company. (2012, November 1). The role of Internal Audit in Complying with Sarbanes- Oxley. Retrieved from http://www.mwoodco.com/value/Internal_Audit_7-03.pdf

Social And Cultural Factors Of Business In India - 1612 Words

Business in India History and Background Located in southwestern Asia, India created 28 state boundaries and became an independent nation in 1947 (Morrison and Conaway, 2012). The currency is the Indian Rupee (INR) which has a conversion rate of 64.152 to 1 U.S. Dollar (UNCTAstat, 2015). Approximately 80 percent of India’s population are Hindus, although, Islam is also a prominent religion in India (Morrison and Conaway, 2006). Hindi and English are recognized as the official languages of India. However, each state has the right to establish â€Å"schedule† languages such as Bodo, Kannada, Oriya and Tamil (Morrison and Conaway, 2012). The government of India is the largest democracy in the world and power is divided between national and†¦show more content†¦Barriers to Entry When accessing the business potential in India, certain barriers should be examined. The infrastructure is underdeveloped in electrical power, streets and highways and telecommunications (Sridhar, 2014). The Trade Union Act of 1926, The industrial Disputes Act of 1947 and The Contract Labor (Regulation Abolition) Act, 1970 are three of the labor enactments which hinder capabilities of Indian Organizations. For example, for a company that employs over 100 people, The Industrial Labor Law requires the employer to seek approval from state officials to lay off staff members. Furthermore, the corporate tax rate for foreign corporation’s averages 40%, while for domestic corporation’s averages 35%. Tariff regulations in India are complicated. The attempts to introduce improvement sometimes leads to inconsistent enforcement from members of the tariff authority (Sridhar, 2014). Competitive Advantages Global connectedness has given India local advantage due to elements such as 9 months of sunshine each year and lower cost for farm labor. Other competitive advantages are skilled English-speaking workers, differences in developed nations salaries and salaries in India and a history of entrepreneurship and administrative experience (Contractor, Kumar Show MoreRelatedIntroduction Of Tip Top Ice Cream Company Essay1656 Words   |  7 PagesThese countries are USA and India. As USA is the country which is very developed country than others on the other hand, India is a developing country. USA has high economic value and has vast variety of industries which are working successfully and it gives other companies to set up a business bond with them. Although India has high cultural heritage and democratic country so it also appreciate the companies of other countries to work with them and set a good business relation altogether. Task 1Read MoreMarket Analysis of Burger King in India1282 Words   |  5 Pagesï » ¿Burger King in India With the ever widening globalization, many businesses that are local are always trying to multinational, and those that are already multinational are all trying to cover other markets where their branches are not situated. This is the same route that Burger King (BK) is looking forward to, and in their case they want diversify into China, Japan and India. There are however several factors that BK must put into consideration before venturing into India in particular. ThereRead MoreCase Study : Market Screening Process857 Words   |  4 Pageshas found opportunities and challenges that may occur in the IKEA expansion to enter Indian market, some implications and recommendations are proposed. Implications of Political Factors The political and economic systems of India raise important ethical issues that have implication for IKEA’s business expansion in India. For instance: related to mandate from government to meet 30% of total products have to come from local small enterprises, IKEA needs to build relationships with local suppliers andRead MoreManagement And Management Practices At Asian And Western Countries Essay1436 Words   |  6 Pagesto control the goals of the organization. Management styles can be employed differently; it is depend upon the culture of business, nature of business, nature of workforce, and skills and personality of leaders. In different countries there are different management practices like Asian and western countries have different management practices and techniques because of cultural differences and how manager perform in motivation, leading employees and communicate with local staff oversea. Asian styleRead MoreIndi A Developing Country With The Second Largest Population1302 Words   |  6 PagesIndia has attracted foreign companies and business investor recently after it has been labeled as BRICS countries including Brazil, Russia, India, China and South Africa. Many international companies, especially the Information Technology Industry have established their branches in India for long times. Large IT outsourcing companies from India are competing in the global market. However, the traditions in India have made foreign direct investment and business operation in India very difficult tasksRead MoreGlobal Cultural Business Analysis of India771 Words   |  4 PagesGlobal Business Cultural Analysis of India BUSI 604: International Business The nation that I have chosen for this Global Business Cultural Analysis research project is India. India has one of the fastest growing and largest economies despite being one of the poorest countries. â€Å"India has emerged as the worlds third largest economy, in terms of Purchasing Power Parity (PPP), just behind the U.S. and China, according to a report from the World Bank† (BawabaRead MorePestel: Hotel Industry1612 Words   |  7 Pagesthe modern times did the use of the word PESTLE came into being. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Along with that economic factors are split into legal factors for the same previously mentioned reason. Political Environment â€Å"These refer to government policy such as the degree of intervention in the economy.† The Times of India by Rachna Singh, Jaipur, in a bid to attract international touristsRead MorePest Analysis of Textile Industry1235 Words   |  5 PagesPEST ANALYSIS A PEST (Political, Economic, Social and Technological) analysis is a major part of the environmental scanning section of strategic management and it is used by companies during market research and strategic analysis. Using a PEST analysis helps a business to understand various macro environmental factors that they need to take into consideration when determining the decline or growth of a particular market. What doesRead MoreThe Challenges Of Emerging Markets1335 Words   |  6 Pagessaying that, to maximize shareholders return and business enjoy showing their strength in their own country, companies showing interest in saturated markets may consider the need to take part in the emerging market to benefit largely. However, emerging markets is based around the transition to a more market-oriented economic system. But yes, it does come at the expense of risks to hurdle over for the already successful business, particularly from a cultural and economic point of view. If the risk is notRead MoreCultural Differences And Influences Of India And Culture Influence On Global Companies1359 Words   |  6 Pagesglobalization, Cultural differences and influences in India and culture influence on global companies. It will also discus further on adaption to local culture and weather global companies should adopt the localization and discussed some examples of global companies who has adapted them selves to localization with global strategy. Globalization is ‘ Crystallization of the entire world as single place.†(Mooji,1998) According to Anderson and Svensson, 2009, globalization in business activities has

Products Offered By Islamic Banking System Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3671 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The main functions of a modern commercial bank include receiving deposits of various natures, granting short- and medium-term loans by way of overdrafts, discounting of bills and commercial papers, advances against securities for business and households, long-term mortgage financing and investments in capital markets. In some markets, commercial banks are also undertaking merchant banking. All this fund-based business is conducted on the basis of interest that is charged from the fund users and paid to the depositors/investors. Don’t waste time! Our writers will create an original "Products Offered By Islamic Banking System Finance Essay" essay for you Create order Commercial banks also deal in foreign currencies, money changing and perform a number of services like issuing letters of credit (L/C) and letters of guarantee (L/G), payments made / received on behalf of their clients, safe custody of valuables and a number of advisory services against service charges or commission. However, all commercial banks might not be undertaking all of the above functions, and the majority of them undertake the business of deposit-taking with an open checking facility and lending for short periods for providing running finance to business and industry. Medium- and long-term financing is mostly arranged by investment banks by way of direct intermediation between the investors and industry/business. The Deposits/Liability Side of Commercial Banks All deposits in conventional commercial banks are the liability of the banks, because the amount of deposits has to be paid back with or without a return. Current accounts that are normally maintained by the business and corporate sectors carry no return and are used for managing their cash flow. Savings, term, notice deposits and certificates of investment/certificates of deposit (COIs/CODs) are remunerative deposits for the short, medium and long term. A brief explanation of the deposits side of banks follows. 1.1.1.1 Current Accounts These are a basic type of account maintained mainly by corporate clients and by individuals for availing credit facilities from the banks/financial institutions. As indicated above, normally such accounts are non remunerative; however, many regulators allow payment of interest on such accounts and some banks give a little return as a part of their marketing strategy. Hence, a current account in the conventional system may or may not be remunerative. 1.1.1.2 Savings Accounts These are the normal checking accounts that commercial banks offer for fund mobilization against the payment of interest; savings accounts may have a minimum balance requirement. Different types of savings accounts offer different interest rates depending on the deposit amount. The concept of daily product is used for the entitlement of return to various depositors. Saving deposits, and to some extent term deposits, are collectively known as demand deposits, because one can, at any time, draw the amount without any notice. 1.1.1.3 Fixed-term Accounts/Certificates of Investment/Certificates of Deposit In term deposit accounts (as captioned above), the deposit holder agrees to lock in the money for a fixed period of time while the bank commits to pay an indicated interest rate depending on the term of the deposit the longer the term, the higher the interest rate. Some banks charge a penalty in the event of premature encashment some banks charge a pre-specified penalty over the remaining period of deposit, while others use the period for which money has been with the bank. In financial markets with open competition, the return already given is adjusted in the case of early withdrawal, keeping in mind the investment and the remaining periods. Term deposit receipts (TDRs) are issued at par or discounted value. A typical TDR issued at discount is issued at a value below its par; it grows up to the par value in the agreed timeframe. TDRs may have a life ranging from an overnight deposit to five/six/seven years, though by custom, it varies from seven days to five years. This type of deposit is also called a certificate of investment (COI) by investment banks and NBFIs. A typical COI is issued at its par value with return payment made at agreed intervals ranging from one month to the time of maturity. 1.1.1.4 Annuities/Perpetuities Annuities are normally built on savings accounts for commercial banks. NBFIs use COIs to offer annuities. The depositor is entitled to withdraw the amount after the deposit period. However, frequently the annuity converts itself into perpetuity at maturity, i.e. the deposit holder is allowed to withdraw an agreed amount indefinitely at an agreed timeframe. These products are also offered by life insurance companies. Products of such a nature exist in the mutual fund industry and share markets as well, and are called dividend reinvestment plans. 1.1.1.5 Advance Profit-paying Products In these types of product, the anticipated amount of profit is discounted and paid up front. In essence, this is similar to a term deposit receipt issued at discount. 1.1.1.6 Cash Management/Fund Management Accounts Historically, the NBFIs, and particularly the investment banks, used to maintain cash management accounts. But over the last decade, commercial banks have also been increasingly offering discretionary or nondiscretionary cash management and fund management accounts. A typical CMA entails the deposit of money with the bank for an agreed period that carries either a fixed rate of return or any rate linked with any other activity in capital markets. In the case of nondiscretionary accounts, the client instructs the bank about the type of investment as well. In most such cases in conventional banking, a fixed amount of return is paid. In rare cases, funds are invested on the basis of a fee, remitting all profit to the depositors. 1.2 The Assets Side of Commercial Banks Commercial banks deploy depositors funds for short-term (a year or less than one year), medium-term (one to three years) and long-term (over five years) loans and advances on the basis of interest. A prudent banker is supposed to take into consideration the character and business integrity of the borrower, his cash flow and capacity to repay, the purpose of borrowing and the security offered as collateral. The following are the possible forms of loans: Productive loans: for trade, industry and other businesses and in most cases also for housing. Consumption and consumer durable loans: for household goods, automobiles, etc. Clean advances: on the personal surety of the borrower or of any third party, no collateral. Discounting of commercial papers like notes, bills of exchange, etc. Cash credit like overdrafts: customers are allowed to draw from a limit given by the bank. The financing operations of commercial banks for various purposes in respect of industry and c ommerce are briefly given below: Working capital finance: the working capital requirement of various sectors is met by banks through grants of cash credit, overdraft facilities, demand loans, opening of L/Cs and through discounting of bills of exchange. Trade financing normally involves the issuance of L/Cs by commercial banks. Sight L/Cs are simply fee-based instruments issued to facilitate trade while usance L/Cs also involve financing by banks against payment of interest. L/Gs are issued by banks to ensure, on behalf of their clients, that the payment will be made when due or action taken as and when required in the contracts in the background. Thus, the bank acts as guarantor of the clients liability towards the counterparty. Banks get commission for issuing L/Gs, but if they are required to perform the guarantee, they have to pay the related amount for which they charge interest. Agricultural finance: commercial banks provide production and developmental loans to fa rmers. Short-term finance is required by farmers mainly for the purchase of seed, fertilizer and pesticides, while medium- and long-term finance is needed for land-levelling, tubewells, tractors, setting up of poultry/dairy/fish farms and construction of storage facilities. Fixed investment finance: this is provided by way of term loans or purchase of debentures or participation in underwriting and bridge financing arrangements. Treasury products liquidity and fund management: this involves money and capital market operations, foreign exchange operations, inter-bank borrowing and lending money on interest linked to tenor, credit considerations and liquidity amongst other factors. Treasury products are used to manage mismatches in liquidity position and to get returns. The entire activity is based on interest receipts or payments. Repo and reverse repo operations involve selling / purchasing and entering into a back to back transaction for purchasing/selling. The objective is to manage liquidity and enhance interest income. Nostro accounts, maintained by banks overseas to undertake trade finance activity and correspondent banking. Interest is paid and received on the balances maintained and the amounts overdrawn. 2. The Deposits Side of Islamic Banking In the fast-developing world of finance, Islamic banks are obliged to innovate a set of techniques to mobilize deposits, keeping in mind the priorities and risk preferences of various categories of depositors. They will also have to cater for safeguarding the depositors from loss on PLS deposits. Recent developments on the deposits side reveal that Islamic banks, in addition to the general categories of savings and investment deposits, have started offering commodity funds, leasing funds, Murabaha funds and COIs. The funds thus mobilized are used in lease or Murabaha operations, giving fees or fixed margins of profit to the banks. Thus, savers are in a position to get a quasi-fixed return. However, this fixity of return may create ambiguity with respect to their Shareah position unless strict Shareah controls are applied to the operations and distribution of returns thus achieved. The majority of authors allow third party guarantee to depositors to the extent of a nominal amount of deposits. However, for enhancing confidence of the depositors and to avoid any scares or chaos, any Takaful scheme for deposits would be desirable. This is because the provision of third party guarantee has some objections, both from practical as well as Shareah aspects. On the deposits side, Islamic banks will provide the products discussed below. 2.2 Current Deposits Generally, no return is given on current accounts on the grounds that such deposits take the form of loans given to Islamic banks and the loans cannot carry any return. They are kept as Amaanah; but if the proceeds of such accounts are used by banks in their business, they are treated as loans that have to be paid back without any increase or decrease. Banks shall guarantee the principal amount of deposits. Subject to agreement, banks may have the option to use such accounts at their discretion in permissible business activities. The relationship of debtor and creditor between the bank and the depositor will continue. The bank and the depositor shall agree at the time of account opening whether the bank is allowed to use the money in its business or not. There will be no need to develop and implement a weightage system for this type of account. However, some writers favour giving a gratis return even to current account holders. They add that it can be only at the discretion of t he banks and the depositors should not have any entitlement. A further condition for such an incentive is that they should not be offered regularly. This is because, with the passage of time, the practice will become customary and, in turn, take on the ruling of benefits stipulated in a contract of deposit. 2.3 Savings Deposits/Investment Deposits/ Term Deposits All remunerative deposits in Islamic banks, including saving deposits against which banks provide a free checking facility, shall be accepted on a profit and loss sharing (PLS) basis. The ratio of profit distribution between the bank and the depositor shall be agreed at the time of account opening subject to the condition of the Shareah that a partner may agree on a ratio of profit which is different from the ratio of capital but losses have to be shared strictly in the ratio of capital. Investments/financing made by banks from their own capital and from the monies raised from PLS accounts shall form the earning asset base, the returns from which shall be allocated between the banks and their account holders in the agreed ratio. Deposits of longer duration shall be compensated through assignment of higher weightages. Regulators may notify a range within which these allocations could be made. Alternatively, such assignment of weights may be left at the discretion of the banks. Th e following are the other considerations in this regard: Deposits of the risk-averse clients will be accepted either in current accounts as interest-free loans that will be guaranteed with no share in return from financing operations of the banks or by creating special pools or establishing Murabaha and leasing funds, wherein they will be treated as Rabbul-maal and get the quasi-fixed return out of profits or rentals earned by the respective funds. Risk-prone deposits will become part of the banks equity, involving a weightage system (the longer the maturity, the higher the weight) on a daily product basis (DPB). Specific investment accounts can be managed as per savers instructions on a Mudarabah or Wakalah basis. Banks can float equity funds on the principle of Mudarabah against a share in the actual profits. However, there may also be an agency relationship, wherein the bank would be managing depositors funds against pre-agreed fees and passing on the profit/loss to the dep ositors. Banks may establish closed/open-ended mutual funds. Inter-bank financing will also become part of the equity of the bank, using appropriate weightage and DPB to calculate profit. 2.4 Instruments on the Assets Side Islamic banking financing practice as of now reveals that the doors are open for utilizing all legitimate modes including those based on Shirkah, trade or lease, whether to finance trade, industry or a budget deficit through domestic or foreign sources. In order to properly manage the risk, the banks should manage diversified portfolios and select the proper modes/instruments. The volume of investment deposits determines banks investment strategies if depositors are risk-averse, banks should also be risk-averse investing in less risky modes. 2.4.1 Musharakah/Mudarabah can be used for short-, medium- and long-term project financing, import financing, preshipment export financing, working capital financing and financing all single transactions. Banks use Diminishing Musharakah for purchase of fixed assets like houses, transport, machinery, etc. Murabaha can be used for the purchase and sale of automobiles, consumer durables and trade financing, acquisition and holding of stock a nd inventory, spares and replacements, raw material and semi-finished goods. Buy-back and rollover in Murabaha are not allowed. 2.4.2 Musawamah can be used for the financing of huge single transactions. Salam has a vast potential in financing the productive activities in crucial sectors, particularly agriculture, agro-based industries and the rural economy as a whole for financing agriculturists/farmers, commodity operations of public and private sectors and other purchases of homogeneous goods. 2.4.3 Banks subsidiaries as trading and leasing companies can also provide finance on the basis of Murabaha and leasing. They can deal with priority areas not only on the basis of Murabaha, Salam and operating lease, but also on the basis of partnership. Ijarah, or leasing, is best suited for financing of automobiles and machinery. There could also be a combination of more than one mode like Istisnaa plus Murabaha, Salam plus Murabaha or Salam plus Istisnaa for financing of trade and i ndustry. Finance for the purchase and construction of houses can be based on Diminishing Musharakah or Murabaha. Working capital finance canbe provided on the basis of Salam, Istisnaa and Murabaha. Financing of big projects can be made through syndicate Mudarabahs using the modes of Istisnaa or Murabaha. 2.4.5 Appropriate modes of financing, as recommended by experts on Islamic finance, for particular areas and transactions are as given below. Modes for Financing Trade, Agriculture and Industry Murabaha, installment sale, leasing and Salam are particularly suitable for trade, while Istisnaa is especially suitable for industry. More specifically, in trade and industry, financing is needed for the purchase of raw materials, inventory (goods in trade) and fixed assets as well as some working capital, for the payment of salaries and other recurrent expenses. 2.4.6 Murabaha can be used for financing of all purchases of raw materials and inventory. For procurement of fixed ass ets, including plant and machinery, buildings, etc., either instalments sale or leasing can be used. Funds for recurrent expenses can be obtained by the advance sale of final products of the company using Salam or Istisnaa. Household, Personal Finance, Consumer Banking. Personal finance for consumer durables can be provided through Murabaha, leasing and in special cases by way of return-free loans out of the current accounts or the banks own funds (depositors money in PLS accounts is a trust in the hands of banks and should not be used for charitable and social purposes without their explicit approval). 2.4.7 Wakalah and Murabaha can be used for cash financing through charge and credit cards. The alternatives for auto finance are Ijarah Muntahia-bi-Tamleek and Murabaha. Housing finance is possible through Murabaha, Diminishing Musharakah and rent-sharing. 2.5 Treasury Operations Liquidity and Fund Management Liquidity management means ensuring that the bank has sufficient liquid funds available for a smooth running of its operations and to meet short-term financial obligations as and when due. It has to invest surplus funds, match maturity of assets and liabilities, accommodate decreases in deposits/liabilities and increases in assets in an efficient and economic manner. Fund management refers to securing and managing funds for the development of business. Islamic banks may sell and purchase SharÃÆ'„ ±Ãƒâ€šÃ‚ ´ah compliant money and capital market instruments like stocks and Sukuk. Direct placement or acquisition of funds (in the inter-bank funds market) on the basis of Mudarabah and Musharakah is also possible. The deficit bank agrees to give a share of its profits according to a Mudarabah ratio that can either be negotiated according to the market conditions or recommended by the central bank, for the duration of the contract. In the case of Mudarabah, the following process can be adopted: A Mudarabah relationship will be created. Funds received will be allocated to pools. Weightages will be assigned periodically, based on different tiers/categories. Profit earned will be allocated according to weightages assigned at the beginning of the period. The bank will charge a pre-agreed Mudarib fee as a percentage of the realized profit; the bank can pay additional profit from its own share. The investor will bear a loss unless it arises from misconduct or negligence of the Mudarib. Islamic banks may also agree to an arrangement with the central bank serving as a lender of last resort. One option is financing on a Mudarabah basis; the central bank may agree to provide liquidity for, say, a three day grace period with ceilings, followed by a Mudarabah with profit-sharing ratio heavily favouring the central bank to discourage the Islamic bank from resorting to the central banks funds for longer periods. Another option is the sale an d purchase of Shar ¯ÃƒÆ'„ ±Ãƒâ€šÃ‚ ´ah-compliant certificates/Sukuk. Sukuk are important for liquidity management. In Sukuk, an investor gets returns on the basis of ownership rather than interest. Ijarah Sukuk are more common instruments in this regard and are issued against assets for rental. To generate liquidity, Sukuk can be sold/purchased in the secondary market. If the regulatory structure allows, Islamic banks can sell the Sukuk to the central bank to generate liquidity. Sukuk can be structured on an amortizing or bullet maturity basis. 2.6 Foreign Exchange Operations Exchange of currencies and monetary units has to be subjected to the rules of Bai al Sarf, i.e. it must be simultaneous. Accordingly, spot purchase and sale of one currency against another currency is allowed; forward purchase and sale is not allowed. However, IFIs can enter into a promise to purchase and sell agreement. On this principle, foreign currency forward cover is allowed with certain conditions. In order to ensure that the transaction actually goes through, parties may stipulate any earnest money. Negotiation of export documents is partially allowed. 2.7 Government/Public Sector Financing Government and public sector enterprises can obtain finance by way of Mudarabah or Musharakah certificates, which can be issued to purchase equipment or utility-generating assets in order to lease them to public sector corporations. Ijarah and Istisnaa are best suited for infrastructure projects in the public sector. Recently, Ijarah Sukuk have emerged as the most crucial instruments for financing of the public sector. Through syndication arrangements, Islamic banks can supply goods/assets of enormous value to government entities or corporations on a Murabaha basis by setting up joint Murabaha funds. In such cases, ownership of Murabaha funds can also be securitized to offer equity-based investment opportunities to the investors and the banks themselves. Returns on these funds would be distributed among Sukuk/certificate holders on a pro rata basis. 2.8 Alternatives to Foreign Loans For the inflow of foreign resources, the instruments of portfolio investment through stock markets, flotation of various categories of Sukuk and direct investment by foreigners can be used. Public as well as private enterprises can issue Musharakah and Ijarah Sukuk to finance projects, especially development projects. Sukuk can be denominated in foreign as well as domestic currencies and carry a predetermined proportion of the profit earned by their respective projects. The Sukuk issued can be restricted to a particular project or earmarked to a group of projects. Various funds can be established to finance the economic activities of public and private enterprises on equity, partnership, leasing, Salam and mixed asset pool bases. Funds can be established to finance a specific sector, for example, agriculture, industry or infrastructure; a particular industry, for example textiles, household durables, etc.; or general types of projects. Source of the Assignment. Mr Muhammad Ayoub, Director Training, Development and Shariah Aspects of Institute of Islamic Banking and Insurance (IIBI)London, has written a book with the title of Understanding Islamic Finance in the year 2007. This book was published by the John Wiley Sons. In the Chapter 8 of the book Mr Ayoub stated about the Overview of Financial Institutions and Products: Conventional and Islamic. In the chapter it is stated that what are the different products are being offered by the conventional and Islamic financial institutes being the alternates to each other. The text of the book was presented here as the literature of the assignment statement.