The Nepalese Business Environment Essay Example

The Nepalese Business Environment Paper Internal environment includes infrastructure, physical asset, human resources, organization Structure, technology, work system etc. T is located inside the business organization and it is controlled by the business. It provides strength and weakness to the business. External environment includes outer environment I: e social, economical, political, legal and competitive forces. It provides opportunity and threats to business. So, they are both interrelated and interconnected. It operates in a dynamic environment. According to Keith Davis, Business environment is the aggregate of all conditions, events and influences that surround and affect it Thus, Business environment is the combination of internal and external ores and condition prevalent inside and outside the boundaries of a firm. Business environment consist of the forces and conditions outside the boundaries of a firm. These forces changes overtime and thus present the firm with opportunities and threats that influences its ability to carry out its operation efficiency to attain its objectives. Complex: Business environment is a complex due to its unpredictability. It consists of interacting events, condition, influences arising from varied sources. Dynamic: Business environment is dynamic. It is continuously changing in shape and character. Multifaceted: Business environment is multifaceted. Different observer may view a particular change in the environment differently. The same development may be taken by someone as opportunity and by other threats. Far reaching: The change in environment has far reaching impact in the business. We will write a custom essay sample on The Nepalese Business Environment specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Nepalese Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Nepalese Business Environment specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The growth, profitability and competitiveness Of the business depend on the existing business environment. Importance of business environment It is essential for the business manager have a profound knowledge about environment surrounding to business to make managerial and business decision. 1 . Comprehensive strategy formulation: business firms have to formulate broad strategies and long term policies for their continuous existence. An assessment of environmental component enables a manager to formulate business strategy and policy. The assessment can be done through STOW analysis. 2. Competitive analysis: business should regularly analyze the strength and weakness Of competitors and formulate strategies accordingly in Order to retain its superiority in the market. The study of business environment facilitates to formulates effective measures to analyses the strategies of the mediators and face them. 3. Adaptability: the foremost concern of any business firm is to adjust with the emerging environmental forces. As a result of environmental analysis, the managers are able to adopt the prevailing condition and thus to adopt the prevailing condition and thus influence the environment in order to make it congenial or less harmful to their business. 4. Stability: the study of environment enables the firms to foresee the impact of the socio economic and political changes taking place at the national and international levels on their stability. They can develop actions Lana to cope with such change to maintain stability. 5. Dynamism: the firm should change and mould itself with the changing environment. The knowledge of business environment enables the manager to be well acquainted with the changing business scenario and take proper steps to keep the firm up-to-date. Component of business environment Internal environment: Internal environment also called micro environment consist of condition and forces within the business organization that affects its performance and outcomes. ; Goals, policies, and strategies: goals are the desired outcomes and present and result. Policies are guidelines for business decision making and future courses of action. Strategies are the broad action plan. They mean to achieve goal. ; Culture: culture encompasses shared, norms, values and beliefs that guide member in organization. Culture means the assumption that member of an organization share in common. ; Organizational resources: resources can be physical, financial, human and information. , modern business organization required large amount of quality information. The acquisition, storage, analysis is very important for increasing business effectiveness. The development in information technology has greatly facilitated business activity. ; Organizational structure: structure is the designed of job position and relationship. It defines how job is formally divided, grouped and coordinated. External environment: External environment is composed with the outside condition and forces that influenced performance and outcomes. It is located outside the business organization and cannot be controlled by the effort of business organization. The external environment of business is defined as opportunity and threats. The external environment can also be divided into: a) general b) task ) General environment: it is also subdivided into following components I) Economic environment: the state of economic environment determines the general health and well being of the organization. Economic environment refers to all economic surrounding that influence the business activity. Economic system, economic policies, economic condition and reasonable economic groups are the component of economic environment of business. Economic system may be: ; Free market economy: it is based on private sector ownership. Consumer choice or purchase under a market system decide what we produce and by whom. Consumers have freedom of choice. The economic is not planned, controlled, and regulated by the government. ; Centrally market economy: it is based on public sector ownership. The economy is centrally planned, controlled, regulated by the government. Profit is not in aim. The state planner determines the number and types of commodities to be produce, their distribution and prices. ; Mixed economy: mixed economy co-exist both public and private sector. Economic policies: economic policies are monetary policy concerned with money supply, interest rate, creditability, exchange rate etc. Sisal policies are concerned with the use of taxation and government expenditure to regulate the level of economic activities. Industrial policies concerned with industrial licensing location, incentives, facilities, foreign investment, technology transfer etc. Economic condition: it is also components of economic environment which is determined by the factor like level and distribution of income, different business cycle, inflation, stage of economic development etc. Regional economic groups: it removes tariff and other restriction to promote co operation and free trade among member countries such as SCARCE, OPEC, ASIAN, IF, WTFO etc 2) Political environment: the component of political system, political institution, political philosophy. ; Political system consists of ideological forces, political parties, election procedures and power centers. ; Political institution consist of law, executive judge. ; Political philosophy can be democratic, totalitarian or mix of both. ) Legal environment: the legal environment forces that influences business law, court Of law and law Of administrator. ; Business law consists of an array of a business law that regulates business activity. Court of law: institution establish by law to solve legal disputes. ; Law of administration: law administer are the various law and enforces of agency which ensure agency which ensures implementation of law and the judgment of the court of law. 4) socio- cultural environment: s ocio environment of business refers to all the social surroundings that influence business. Socio environment is made up with the components such as demographic, socio institutions, pressure groups and social groups. ; Demographic forces: demographics forces consist of size, distribution, insist and growth of population, age and gender, mix of population, arbitration of population and migration of population. ; Social institution: Social institution consists of family ,reference groups( relative, colleges etc) and social class ; Pressure groups: pressure groups are the special interest groups organized to use the political process to advance their position earn and issue of social concern. Social change: social change implies modification in relationship and behavior pattern of individual and group in society. Cultural environment of the business refers to all the cultures surrounding hat influences business activities. It includes knowledge, customs, traditions, morals, values, religions, languages, symbols, works of arts and architecture and accepted behavior pattern of p eople. 5) Technological environment: technological environment refers to all the technical surrounding that influences business activities. The component of technological environment is: ; Level of technology: the level of technology may be appropriate or sophisticated, labor based or capital based. ; Pace of technological change: pace is the stage and speed of technological change. Technological transfer: technological transfer implies technology imported from technologically advances foreign country. ; Research and development budget: research and development budget is the situation of research and development budget get by government or business. Organization for technological adaptation, up gradation and development. ) Task environment Task environment also called competitive or operating environment. Operating environment involves factors in the immediate competitive situation of a particular organization. ; Customer: customer Of the task environment reflects the characteristic ND behavior of those who buy goods or services provided by the business. ; Supplier: suppliers are the individual and firms that provide the firms with the inputs resources that is provide HTH firms with the input resources that is needed to produce goods or services. Distribution: distribution is an organization or means that helps other organization to sell their goods and services to customers. The distributors can be retailers, middlemen, facilitators, and market service agencies. ; Special interest groups: special interest group is the organized groups o uses the political process to advance their position on particular issues. ; Financial institutions: business organization relay on the services of institution like commercial bank, finance companies, insurance companies and capital marketing institution to meet their short and long term financial needs and other services requirement. Media: the media keeps an eye on the vital decision or action of the business firm having general public interest. ; Competition: the competition factors of the task environment consist of those with whom an organization must do bette r in order to obtain sources, market and position. Environment scanning Environment scanning is the technique of acquiring information about environment uncertainty complexity and dynamism and analyzing the trends, emerging in the environment. In another words, environmental scanning is the process of monitoring the business environment to identify both present and future threats and opportunities that may influences the firms ability to reach its goal. Before form ululating strategy, environment should be analyzed as strategy matches the internal resources with external environment. What changes are occurring in the environment and in what ways the internal strength are utilized, what factors are affecting business, what purport entities are being available, strategic manager must get the information which is acquired by environmental scanning. Thus environmental scanning is a tool to monitor, evaluate and disseminate information from the environment. Environment scanning is done to Objectively identify opportunities and threats for the business opportunities are favorable conditions in the environment. This enables a business organization to consolidate and strengthen its position but threats are unfavorable condition in the environment. This creates risk or cause damage to a business organization. Only environmental scanning enhances to determine threats and opportunities. Environment Scanning help top management to understand and define current environment realities and predict future changes. The top management can observe the changes taking in the environment through reports, committee meeting, memorandum, sub-ordinate manager, journals, colleagues, employee, personal experience and conferences. Once the management receives this information about changes taking place in the environment, they then assess, co-relate, extrapolate and interpreted the vent and signals to determine threats and opportunities. Now considering the following example which clearly depicts how threats and opportunities are determined through environmental analysis: Events opportunity(LCP) 130% I Impact (l) I probability(P) Threats/ I Competitors entrance in the Sales fall by I Reduction in sales by 3% I I market I Political insecurity I Sales fall by I Reduction in sales by 6% sales fall by 140% recession I I Economic I Reduction in sales by 10% I Napalms entrance into WTFO I Market expansion baby% 140% Increase in sales by 20% I Price war I Price fall by 30% I Reduction in sales by 9% Environmental analysis In every society there are plenty of unmet human needs. Any business firm identifying these unmet needs and supplying goods and services to satisfy them would open up new opportunity for its. On the contrary, a business firm unaware of the environmental signals would find it in constant threats such a firm may even lose its existing business owing to decreased demand for its product or services in the market. It is therefore; very crucial for business firms to keep track of the emerging environmental trends and adjusts accordingly. Analysis involves breaking a whole into its parts to find it nature function and relation. Environmental analysis, involves identifying the present and future purport entities and threats. According to William Cluck( 1980) defines environmental analysis as the process by which strategist monitor the economic, legal, competitive, geographic, technical and social setting to determine opportunities and threats to their firms. According to Philip settler (2002),environmental analysis as the process of assessing the emerging trends. Every business firm manager has to pay attention in trends. In the process of analysis, a host of activities like thinking, feeling interpreting and behaving are involved. The constant changes in business environment disturb some managers. But todays managers have to anticipate them, understand them, deal with them and turn them to their firm advantages. There are several methods or technique of environmental analysis. The most common are as follows; ; STOW analysis ; Business related publication like newspaper and journals ; Business forecasting ; Formal research studies. Environmental analysis and its uses in strategic management Strategic management refers to the decision and action of top management directed at formulation and implementation of strategies to achieve long term objectives.

Milton Obote

Milton Obote Apollo Milton Obote (some say Milton Apollo Obote) was the 2nd and 4th President of Uganda. He first came to power in 1962 but was ousted by Idi Amin in 1971. Nine years later, Amin was overthrown, and Obote came back to power for five more years before he was ousted again. Obote has largely been overshadowed by â€Å"The Butcher† Idi Amin in the Western media, but Obote was also accused of widespread human rights abuses and the deaths attributed to his governments are greater than those of Amin. Who was he, how was he able to come back into power, and why is he forgotten in favor of Amin? Rise to Power Who he was and how he came to power twice are the easier questions to answer. Obote was the son of a minor tribal chief and received some university education at the prestigious Makerere University in Kampala. He then moved to Kenya where he joined the independence movement in the late 1950s. He returned to Uganda and entered the political fray and by 1959 was the leader of a new political party, the Uganda People’s Congress. After independence, Obote aligned with the royalist Bugandan party. (Buganda had been a large kingdom in pre-colonial Uganda that remained in existence under Britain’s policy of indirect rule.)   As a coalition, Obote’s UPC and the royalist Bugandans held a majority of seats in the new parliament, and Obote became the first elected Prime Minister of Uganda after independence. Prime Minister, President When Obote was elected Prime Minister, Uganda was a federalized state. There was also a President of Uganda, but that was a largely ceremonial position, and from 1963 to 1966, it was the Kabaka (or king) of Baganda that held it. In 1966, however, Obote began purging his government and orchestrated a new constitution, passed by the parliament, that did away with both the federalization of Uganda and the Kabaka. Backed by the army, Obote became President and gave himself wide-sweeping powers. When the Kabaka objected, he was forced into exile. The Cold War and the Arab-Israeli War Obote’s Achilles heel was his reliance on the military and his self-proclaimed socialism. Soon after he became President, the West looked askance at Obote who, in the politics of  Cold War  Africa, was seen as a potential ally of the USSR. Meanwhile, many in the West thought that Obote’s military commander, Idi Amin, would be a wonderful ally (or pawn) in Africa. There was also a further complication in the form of Israel, who feared that Obote would upset their support of Sudanese rebels; they too thought Amin would be more amenable to their plans. Obote’s strong-arm tactics within Uganda had also lost him support within the country, and when Amin, aided by foreign backers, launched a coup in January 1971, the West, Israel, and Uganda rejoiced. Tanzanian Exile and Return The rejoicing was short-lived. Within a few years, Idi Amin had become notorious for his human rights abuses and repression. Obote, who was living in exile in Tanzania where he had been welcomed by fellow socialist Julius Nyerere, was a frequent critic of Amin’s regime. In 1979, when Amin invaded the Kagera strip in Tanzania, Nyerere said enough was enough and launched the Kagera War, during which Tanzanian troops pushed Uganda troops out of Kagera, then followed them into Uganda and helped force the overthrow of Amin. Many believed that the subsequent presidential elections were rigged, and as soon as Obote was inaugurated President of Uganda again, he was facing resistance. The most serious resistance came from National Resistance Army led by Yoweri Museveni. The army responded by brutally suppressed the civilian population in the NLA’s stronghold. Human rights groups put the count at between 100,000 and 500,000. In 1986, Museveni seized power, and Obote fled into exile again. He died in Zambia in 2005. Sources: Dowden, Richard. Africa: Altered States, Ordinary Miracles. New York: Public Affairs, 2009. Marshal, Julian. â€Å"Milton Obote,† obituary,  Guardian, 11 October 2005.

What Are Some Part Time Jobs You Can Do From Home

What Are Some Part Time Jobs You Can Do From Home you see the ads all the time online: work from home! many thousands of dollars! never leave your couch! if, like some of us, your dream job involves working while you watch old sitcoms in the background and wear your ugliest, comfiest slippers, pitches like those can be awfully tempting. the trick is deciding ahead of time what might be a genuine opportunity for a flexible career, and what’s likely to be a giant scam sandwich. 1. why seek part time jobs you can do from home?2.  what are your options?3.  how about the freelance life?4.  beware of scamswhy seek part time jobs you can do from home?there are tons of reasons why you might want a job that allows you to be at home, or has a flexible schedule.you’re a parent or a caregiver, and being away from home 40-50 hours a week just isn’t feasible.you’ve just moved someplace new, and need to pay bills while you look for a more traditional full-time job.you need better work-life balance than you’ ve gotten from traditional jobs.you work well under your own initiative, and want the independence of your own work space.you’re on a specific career path that doesn’t necessarily jibe with your current location, because most of the jobs in your industry are elsewhere.your experience is in a field that can be conducted via phone or email from anywhere (sales, marketing, etc.).you want a second job that can be done in your off hours. whether you’re looking to find part-time work that you can do flexibly, or a career stepping stone, you’re part of a growing group that wants to create opportunities outside of the usual. companies, too, are starting to realize that having a flexible workforce can be cheaper and more convenient, and lets them find employees who bring skills to the table, but might not be available for a brick-and-mortar location.what are your options?some industries lend themselves to flexible work arrangements better than others. for example, if you’re a nurse, you kind of need to be there in person to treat patients. but if you’re a medical billing manager, you might not need to be there in person. according to forbes, some of the top industries that are offering remote work opportunities include:healthcaresalesmarketingphilanthropy/fundraisinginformation technologyeducation (tutoring, online learning)the internet (and the resulting boom in telecommunications) has really broadened everyone’s horizons about what’s possible outside of the traditional office/cubicle†¦these days, it’s almost as easy to â€Å"attend† a meeting in beijing as it is to attend a meeting in your boss’s office. programs like skype, google hangouts, and webex make it easy to collaborate with colleagues all over the country and world- so why not extend that to people looking to work from home?although the standard model (the in-person, 40-hour work week) is still the career template for most ind ustries, companies are starting to see the advantages of having a flexible, location-agnostic staff. some of the top companies that offer remote work opportunities include biggies like apple, u.s. government agencies, salesforce.com, insurance companies, online universities, and it companies.traditionally, many of these work-from-home jobs have been phone-based, where companies have you perform customer service or make cold calls from your own location. the majority of the jobs still fall into this category, but now they’re increasingly including behind-the-scenes work online, or jobs where you can chat with clients or coworkers via video.how about the freelance life?if you’re looking for a side hustle or part-time work to tide you over for a period of time, you might want to look at becoming a freelancer, or contract worker. freelancing can be great if you have a  very specific sets of skills, and are disciplined enough to set your own work agenda and timelines. it also allows you to take things on a project basis, rather than a set commitment to a job with specific parameters. according to entrepreneur, careers that work well with freelancing include:accountant/bookkeeperappraiserchefcomputer programmercorporate event plannerdata entry/processoreditor/copyeditor/proofreaderengineerestheticianfinancial plannerfundraiserfurniture restorer/repairergrant writergraphic designerinterior designerlandscape architectmassage therapistmedical administration/billingpackage designparty plannerphotographerpolitical consultantprivate investigatorprofessional organizersalespersonseamstresstelemarketertranslator/interpretertutorupholstererweb designerwriterthese are all jobs that require special skill sets, but not necessarily a full-time commitment. if you do go the freelance route, it’s a more challenging road than many part-time opportunities, because you need to go out and rustle up clients, examples of your work, and a process for payment and payi ng taxes. but if you have an entrepreneurial spirit, and want to create your own part-time job opportunities, it could e the way to go.beware of scamsrule of thumb: if it sounds too good to be true (stop me if you’ve heard this one), it probably is. if you learned about this great new opportunity in the comments section of your favorite website, approach it with a healthy dose of skepticism. especially if the â€Å"ad† doesn’t tell you what the job is, and is riddled with spelling and grammar issues.***my roommate’s cousin makes $8000 a week for six 6 hours of work at home!!! she used to be broke, and now she’s hanging out with oprah. click here for your ticket to $$$$!!***scam. walk away. always do your own research. legitimate job listings will tell you:the company you’d be working foran outline of what the job islegit contact informationthe safest way to approach this is to search for jobs yourself, rather than take bait left in crumbs ar ound the internet. whenever you do come across a listing that sounds promising, google the heck out of it to see what others are saying about it.jobs that should set off your alarm bells:mystery/secret shopper jobs, which pay you to visit stores and give feedback. i know at least one person who does occasional mystery shopping jobs, but the shady job offers outnumber genuine positions by a crazy amount. you should do a lot of online research first to make sure that it’s a legitimate company.job offers that arrive mysteriously in your email inbox, from an address you don’t recognize. (as opposed to outreach emails that might come to you through linkedin or other social media.)any job that requires you to invest money up front.any job that doesn’t offer direct contact information.scam jobs are a huge cottage industry for people with nefarious motives, and plenty of smart and savvy people can be taken in by a listing that sounds great at a time when you really need or want a convenient part-time job with little time investment and big rewards. this is especially true for sites like craigslist, where there are legitimate jobs sprinkled in with the scam listings. vigilance and information are your best allies here. via real ways to earn money onlinethe temptation is real, but again- job listings that sound suspiciously perfect but don’t offer a lot of follow-up information are not likely to be that shining unicorn of a career. let your instincts be your guide, but always, always verify with as much information as you can find. it’s great to have an internet-wide net for your potential new job, but it’s important to take advantage of said internet to make sure that you’re not falling prey to some evil plan. doing this due diligence can also help you make sure that you’re not doing something illegal, because if you’re signed on to a job that runs afoul of the law, you may find that your new â€Å"company † is nowhere to be found.if anything makes you feel uncomfortable at any point in the process of looking for or starting a new part-time/work-from-home job, trust that instinct, and don’t feel like you need to continue down that path.part-time jobs that let you work from home can be a godsend if you have a lifestyle that falls outside of the traditional 9-to-5 mold. it can be a way to maintain while you’re looking for the next phase of your career, or it can be a way to mold your career around other obligations in your life. as long as you approach the process with the same initiative and critical thinking as you’d apply for the traditional job search, then you’re likely to find some really great opportunities. good luck!

Analysis and critique Essay Example | Topics and Well Written Essays - 500 words

Analysis and critique - Essay Example The side effects, resistance to insecticides in vectors and cost-effectiveness of DDT were discussed (2009). He concludes that though there is limited implementation of DDT alternatives, however, more research needs to be done, as IVM will diminish dependence on DDT (2009, p. 1661). Van den Berg states that, when compared with other insecticides, DDT was once a cost effective method of vector control, however, that does not hold true any longer; even as early as 1998, the cost of DDT and other insecticides became almost equal, with DDT costs ranging from US$1.50-3.00 and other insecticides costing less than US$2.20 (2009, p. 1657-1658). Moreover, recent studies show that the risk of human exposure is great in those living in sprayed houses (2009, p. 1658), however, there is a dearth of such studies, e.g. no peer-reviewed data is available from India which is the biggest user of DDT (2009, p. 1658). Van den Berg points out that though the WHO is reassessing the health risks of DDT, however, progress in this regard is slow (2009, p. 1658). DDT is known to be a persistent molecule and, as such, it takes a long while for it to degrade. It does not run-off either, as it binds itself with the organic matter present in soils and aquatic sediment (van den Berg, 2009, p . 1658). The DDT molecules have been shown to cause a lot of harm in the environment; therefore, there is a need for other alternatives to be explored. Another disadvantage of continuing to use DDT is the insecticide resistance that has been reported in certain species of the vectors. Van den Berg states that though the resistance was developed as a consequence of the excessive use of DDT in the agricultural sector, however, it is further exacerbated by the use of synthetic pyrethroids (2009, p. 1658). Van den Berg has also given a list of certain alternatives to

Strategic Management-Walgreens Internal Analysis Essay

Strategic Management-Walgreens Internal Analysis - Essay Example target of operating 7,000 stores by year 2010, Walgreen needs to manage its internal processes effectively and efficiently to maintain competitiveness and profitability. Assessing its operations to identify key business processes and areas of value addition allows companies to manage costs strategically. The concept of Value Chain Analysis presents a powerful management tool for identifying key areas of value addition and cost incurring with a business operation and by analysing Walgreens Value Chain, the report aims to establish areas of organisational strengths and weaknesses which would facilitate the strategic decision making process. An internal analysis of an organisation entails the assessment of its key business processes, the core competencies, organisational strengths and capabilities as well as weaknesses in alignment of business opportunities, which the organisation is perusing for its long terms success. Analysis tools such as Organisational Capability Analysis or OCP analysis, Value Chain analysis and SWOT analysis are few common tools available in conducting an internal analysis for a business. Value Chain analysis presents a strategic view of all company functions and activities, which are performed in carrying out its business and facilitates a comprehensive internal assessment in terms of not only the activity or function itself but also the manner in which they are interlinked in pursuing company objectives. â€Å"The Value Chain Analysis identifies separate activities, function and business processes that are performed in designing, producing, marketing, delivering and supporting product or a service† ( Porter 1985). The chain of interlinked activities, which comes together to finally meet a customer need in the form of a product or a service includes raw material sourcing, logistics, production, sales & marketing as well as other support services. AT each stage, the business objective is to create and add value and generate a component of the

High School Drops Outs Essay -- Education

The number of people dropping out of high school is on the rise. A high school drop out is more likely to be subjected to poverty. The high school drop out will historically be less likely to obtain a high paying job. Many high school dropouts will be less likely to become a productive or beneficial member of society, but will instead create a burden for the community for which he or she is a member. According to the National Center for Education, in 2001 the dropout rate was approximately, 10.7 percent for people between the ages of 16 to 24. Studies showed that dropout rates were higher for people in the 10th grade, due to the fact that children over the age of 16 were no longer required to stay in school. Upon completion of the `Leaver Survey', many students said the leaving school was a process, no a sudden decision. Over 20 percent of all dropouts interviewed indicated a preference for working over school, as the most important reason for dropping out. Several other reasons were pregnancy, marriage, and boredom. A staggering 30 percent of all high school dropouts had an A or...

Income tax within the Malaysian tax environment

Income revenue enhancement is a really wide topic which it can be differentiated into several classs. Income revenue enhancement is a important beginning of income for authorities to set about the development of a state. As a underdeveloped state, Malaysia besides implements income revenue enhancement in jurisprudence where there are two chief bureaus responsible to roll up the revenue enhancements. The bureaus are The Inland Revenue Board and The Royal Custom and Excise Department. There are assorted revenue enhancements applicable to persons, partnerships and limited companies, for illustration, gross revenues revenue enhancement and service revenue enhancement are applicable for concern income and they are collected by The Royal Custom and Excise Department. The Malayan revenue enhancement environment will be discussed farther below.1.1 The Malayan Tax EnvironmentMalayan revenue enhancement environment is governed by The Income Tax Act 1967. A dealing must fall within the scope of ‘scope of charge ‘ to be apt to income revenue enhancement. Otherwise, it is revenue enhancement free. Section 3 of the Act provides: † topic to and in conformity with this Act, a revenue enhancement to be known as income revenue enhancement shall be charged for each twelvemonth appraisal upon the income of any individual accruing in or derived from Malaysia or received in Malaysia from outside Malaysia. † The Act does non specify an ‘income ‘ but alternatively categories the income under subdivision 4 and subdivision 4A. These two subdivisions are being used in finding the beginnings of income of the taxpayer. 1.1.1 Scope of charge Income revenue enhancement shall be charged for each twelvemonth appraisal upon the income of any individual that indictable to pay revenue enhancement. Under subdivision 3, there are two conditions that income revenue enhancement liability arises which are: The income of any individual accrue in or derived from Malaya This means an income will be capable to Malaysia revenue enhancement if the beginning of income is in Malaysia. The income of any individual from outside Malaysia ( foreign beginning income ) In this beginning of income, a foreign beginning of income would non be subjected to Malayan revenue enhancement, unless that foreign income has been remitted to Malaysia and received by a resident person ( with effectual from twelvemonth of appraisal 2004, such income is exempt from revenue enhancement ) However, there is income that is non charged to income revenue enhancement in regard of: Any seaward company that transporting on an offshore concern activity. This freedom is includes in subdivision 3B of the Act. Harmonizing to Fatt ( 2009 ) , the jurisprudence regulating the revenue enhancement for such seaward concern activity is the Labuan Offshore Business Activity Tax Act, 1990 ( LOBATA 1990 ) . This income is non indictable to income revenue enhancement unless an election is made to measure under income revenue enhancement. Any income received by a Malayan occupant company from outside Malaysia ( with consequence from twelvemonth appraisal in 1995 ) . Exempt dividend can be distributed from such foreign income, which is received in Malaysia by a resident company. However, where a individual is non a occupant for a footing twelvemonth of appraisal, income originating from beginnings outside Malaysia and received in Malaysia will be exempted from income revenue enhancement. 1.1.2 Beginning of income Section 4 of the Income Tax Act 1967, has listed down the categories of income which indictable to income revenue enhancement in respects of: Section 4 ( a ) Gains or net incomes from a concern, for whatever period of clip carried on Section 4 ( B ) Gains or net incomes from an employment Section 4 ( degree Celsius ) Dividends, involvement or price reductions Section 4 ( vitamin D ) Rents, royalties or premiums Section 4 ( vitamin E ) Pensions, rentes or other periodical payments non falling under any of the foregoing paragraphs Section 4 ( degree Fahrenheit ) Gains or net incomes non falling under any of the foregoing paragraphs1.2 The Nature and Purpose of TaxationTax is really of import and taxpayer should pay in peculiar twelvemonth appraisal based on the group of the taxpayer. The nature of revenue enhancement is certain per centum of a individual gaining will be taken by the authorities for revenue enhancement intent. The per centum is low-cost for the people and authorities ne'er charge more than that. In revenue enhancement, there are 2 types group of revenue enhancement which is Direct and Indirect revenue enhancement. Direct revenue enhancement is straight paid to the IRBM such as Income Tax. There will be no 3rd party involve to roll up the revenue enhancement. Meanwhile indirect revenue enhancements involve the 3rd party to roll up revenue enhancement such as service revenue enhancement, gross revenues revenue enhancement and excise responsibility. For illustration we take service revenue enhance ment. We can see how the service revenue enhancement working clearly normally at the fast nutrient eating house such as Mc Donald. Mc Donald eating house is on behalf of authorities and the revenue enhancement will be collected by the Mc Donald eating house or the service supplier. Both types of revenue enhancement are the most of import beginning of authorities gross. Income revenue enhancement is ever treated as part for the benefits received that provided by the authorities such as medical Centre to the people. However, they are non paid in exchange for some specific thing, such as the sale of public belongings. The intent of revenue enhancement is to develop the state by utilizing the revenue enhancement received. In other words, it financess the authorities disbursement for different intents. For illustration, the authorities gives certain sum of revenue enhancement gross to the Ministry of Health to pull off and pass it in the best manner for their medical intervention, to purchase medical specialties, better medical engineering and to assist people. These benefits are enjoyed by public citizens and gives positive impact on their day-to-day life. The same goes to other benefits enjoyed by citizens such as good substructure. The revenue enhancement gross is used to develop the substructure in the state such as to mend some public route or add another main road for easier manner to travel to other finish. These betterments are trusting on Public Works Department. Public conveyance besides of import for the people and this duty rely on the Ministry of Transport. They build the airdrome for a ir transit and port for the sea transit. Good conveyance systems will demo that Malaysia is developing positively. Other intent of revenue enhancement is the authorities spend the money from revenue enhancement gross to subsidise pupils for higher degree instruction in public universities. The money spend on this intent are really helpful for the hapless to acquire proper instruction and develop rational state. All these betterments are based on the revenue enhancement gross paid by the citizen.2.0 Answer to scenario 1- Income revenue enhancement calculation for Encik DanielBased on the scenario given, Encik Daniel is an employee where he presently working for his friend ‘s company as a manager. He is a nonexempt individual since he obtains one-year income more than RM25, 501. Therefore Encik Daniel is entitled to pay employment income under subdivision 4 ( B ) income. In January 2009 until 30th June 2009, Encik Daniel was worked with private company and earned RM60, 000 gross wages after subtracting EPF part of 11 % and revenue enhancement of RM300. The computation is as follows: W1: Gross salary = RM8600 + RM300/0.89 = RM60, 000 In Encik Daniel ‘s instance, he is exempted from tip of RM100, 000 that he receives upon retirement because of carry throughing the conditions of tip freedom that effectual 2007 onwards. The conditions are retirement, age of 55 and he has been working for the company more than 10 old ages. The freedom of tip is province under Para 25, 25A, 25B of Sch 6. Harmonizing to Income Tax Act 1967, under s 13 ( 1 ) ( B ) , ticker is treated as a gift which is exempted from revenue enhancement where it is mere present and non income in nature. The same goes to mobile phone which was provided by his employer while he is working for the 2nd company get downing 1 August 2009. For supplying under a semi-furnished house, Encik Daniel receives RM160 monthly. But the value of benefits is up to RM140. Thus, the computation is as follows: W2: Furnishing = RM140 x 4months ( 1 January 2009 – 30 April 2009 ) = RM560 Medical disbursals that Encik Daniel receives which provided by his employer is exempted where this benefit is effectual from twelvemonth appraisal 2008. For vacation bundle which dainty under leave transition, the revenue enhancement exempt topic to the bounds of RM3000. This means that, the air menu is nonexempt after subtracting RM3000 and the sum nonexempt is RM10, 000 ( W3: RM13, 000 – RM3000 ) . Harmonizing to Income Tax Act 1967, adjustment is non nonexempt due to the phrase ‘leave transition for travel ‘ quote under Act 591/98 which merely restricted to cost of transition such as air menus, insurance and theodolite costs. Harmonizing to Income Tax Act 1967, under s 13 ( 1 ) ( degree Celsius ) , adjustment provided by the employer is nonexempt based on the lower sum of defined value of populating adjustment or 30 % of Encik Daniel ‘s gross income under s 13 ( 1 ) ( a ) [ s 32 ( 2 ) ] . Therefore, the computations are as follows: W4: Defined value of populating adjustment = RM1, 200 ten 4months ( 1 January 2009 – 30 April 2009 ) = RM4, 800 30 % of Encik Daniel ‘s gross income = 30 % x RM 60, 000 ten 4/6 = RM12, 000. For unapproved fund under s 13 ( 1 ) ( vitamin D ) income, the sum assessable would be RM50, 000 ( W4 ) which comes from RM40,000 of the employer part and RM10,000 of the involvement earned. Amount contributed by Encik Daniel is capital in nature and would non be taxed. For the 2nd company that Encik Daniel presently working with, he will be assessed under subdivision 4 ( B ) employment income as a manager. Since he started working with the company started 1 August 2009, the months involved in ciphering his income is traveling to be 5 months which is applicable until the terminal of twelvemonth 2009. Therefore, the manager fees and amusement allowance that he receives monthly under s 13 ( 1 ) ( a ) income will be multiply by 5. Under s 13 ( 1 ) ( B ) , company auto that Encik Daniel receives bing RM140,000 which harmonizing to prescribed method for motor vehicle tabular array, the one-year value of private use of the auto autumn under RM5,000. No is no fuel provided and the computation is done as follows: W5: RM5, 000 ten 5/12 months = RM2, 083. Other than that, Encik Daniel besides was provided a driver which harmonizing to Income Tax Act 1967, the proviso of driver is RM600 per month. This benefit is calculated effectual from 1 August 2009 until 30 December 2009. Therefore, the proviso of driver for the twelvemonth appraisal 2009 is RM3, 000 ( W6 ) . Meanwhile the proviso for domestic retainer and nurseryman that provided to Encik Daniel, the sum is RM400 and RM 300 a month severally even though the wage they receive is more than that. The computation is as follows: W7: Domestic retainer = RM400 x 4 months ( effectual from 1 September 2009 ) = RM1, 600 W8: Gardener = RM300 x 4 months ( effectual from 1 September 2009 ) = RM1, 200 Under s 13 ( 1 ) ( degree Celsius ) , adjustment in a hotel with day-to-day room rate of RM250 that provided for Encik Daniel in August is calculated as flows: W9: RM250 x 31 yearss = RM7, 750 ( the 30 % is non applicable because Encik Daniel is non a service manager ) Meanwhile for unfurnished house provided for Encik Daniel on 1 September 2009, the monthly rental benefit that he receives is RM8, 000. ( RM2, 000 ten 4 months ) ( W10 ) .2.2 Income Tax Computation for Puan SaraPuan Sara ‘s income fundamentally depends on rental income which falls under subdivision 4 ( vitamin D ) income. Annual rental income for Puan Sara is RM10, 800. This rental income will be deducted with the disbursals incurred in 2009. Below is the income revenue enhancement calculation for Puan Sara.2.3 Detailss about submitting and payment of income revenue enhancement by Encik Daniel and Puan SaraBased on the information provided by Inland Revenue Board of Malaysia ( IRBM ) the inside informations are as follows: The date line for subjecting Encik Daniel ‘s revenue enhancement return for the twelvemonth of appraisal 2009 is 30th April 2010. The revenue enhancement payments of Encik Daniel ‘s employment income will be deducted by the employer under Scheduler Tax Deduction ( STD ) . The due day of the month for paying the balance of any revenue enhancement due is 30th April 2010. The timeframe for a valid entreaty against an appraisal is 30 yearss. In instance of an entreaty Encik Daniels entreaty will be forwarded for finding to Special Commissioner of Income Tax. Be form can be viewed at the terminal of this undertaking.2.4 Recommendation on revenue enhancement planning chance available for Encik Daniel and Puan Sara to minimise the revenue enhancement collectible lawfullyThe revenue enhancement planning chances provided in the scenario is Puan Sara can elects joint appraisal where Encik Daniel and her income can be combined together and the revenue enhancement calculation will be done based on the aggregative entire income. Based on the revenue enhancement calculation for joint appraisal that we have done supra, we found that the revenue enhancement payable is lesser comparison to divide appraisal for Encik Daniel and Puan Sara. The different between these two appraisals is RM 134. This means that both of them can salvage RM 134 if Puan Sara chosens for joint appraisal. In add-on, if they go for separate appraisal, the indictable income for Puan Sara appeared negative. This shows that, she can salvage the money if she elects joint appraisal. 2.4.2 Make usage of the personal alleviation available In order to minimise the income revenue enhancement lawfully, Encik Daniel can do usage of the personal alleviation where he can claim for: Medical disbursals for his parents. This disbursal is limited to RM5, 000. Alternatively of utilizing merely RM4, 500, Encik Daniel should utilize it up to RM5, 000. It is of import for his parents to acquire better medical services since they become older and the opportunities of acquiring unhealthy is high. Education fees. For uninterrupted acquisition and betterment, we think that Encik Daniel should go on his survey for higher degree of instruction since he already affect in concern. For his age, self realization is of import for him as he already achieve the other demands. By making this, Encik Daniel can do usage of the alleviation up to RM5, 000. Purchase of books, diaries and magazines. Encik Daniel should purchase more books and do usage of the alleviation up to RM1, 000. He can purchase books and diaries for his kids that still analyzing. Diaries are really good beginnings of information and Encik Daniel should read it a batch to maximise his general cognition. Sum deposited into Skim Simpanan Pendidikan Nasional ( SSPN ) . Encik Daniel has a 16 old ages kid which still analyzing in secondary school. It is utile if Encik Daniel sedimentation sum of money in this strategy as an early measure for fixing his kid for higher degree instruction. If Encik Daniel uses this strategy, RM3, 000 of the indictable income is allow to be deducted. Purchase of athleticss equipment. As Encik Daniel go older, it is important for him to maintain tantrum and healthy. He should affect in athleticss such as badminton, tennis and jogging. To make this, suited athleticss equipment such as places is of import. He should purchase the athleticss equipment up to RM300, so that the sum can be deducted from his indictable income for revenue enhancement intent. If Encik Daniel makes use the above alleviation for twelvemonth appraisal 2009, he can salvage up RM2, 402. It is much more than making joint appraisal. We recommend Encik Daniel to take this method as the revenue enhancement planning chance to minimise the income revenue enhancement. The revenue enhancement calculation will be as follow:3.0 PartnershipHarmonizing to Fatt ( 2009 ) , a partnership is defined as an association of any sort between parties who have agreed to unite any of their rights, powers, belongings, labor or accomplishment, for the intent of transporting on a concern and sharing the net incomes therefrom. These combination consequences in rights and spouses normally hold their ain ratio for sharing net incomes and loss Partnership is under subdivision 2 of the Act. It defines ‘person ‘ to include a company, a organic structure of individual and a corporation sole. So, there are some undermentioned factors need to be present before a partnership is said to be which is transporting on concern, distribution of rights and duties, a position to net income and component of hazard and wages for each spouse. However, partnership may besides be without †partnership understanding † which it besides can be in verbal but the hazard is on their duties. Fatt added that partnership is non a indictable individual for income revenue enhancement intent3.1 How the partnership is taxedPartnership is taxed separately where net incomes made are added to the person ‘s personal income and are separately apt for the net income under personal income revenue enhancement. This means that revenue enhancement will be charged to the single spouses in their portion of concern income and will be taxed on their ain names. Spouses that are reference here is refer to persons or companies. Therefore, spouses will pay income revenue enhancement on their concern activities and other income beginnings at the valid personal revenue enhancement rate for the peculiar twelvemonth appraisal. The appraisal of partnership concern income is divided into three classs which are probationary adjusted income, divisible income, and adjusted income of spouse. Provisional adjusted income Harmonizing to Fatt ( 2009 ) , a partnership is presumed to be a exclusive proprietary for the intents of calculating partnership adjusted income which besides known as ‘provisional ‘ adjusted income. They are deductable disbursals and non-deductable disbursals in the net income and loss history for probationary adjusted income. Divisible income For divisible income, the income and capital allowances are computed base on the net income sharing ratio as their agreed in the partnership understanding. Harmonizing to scenario 2, Ng and Siow shared net incomes every bit up to 31 March 2006. However, from 1 April 2006, they change the net income sharing ratios to 60 % for Ng and 40 % for Siow. Because of the alterations in their net income sharing ratio occurred during 1 April 2006, an allotment of divisible income on the clip footing will be carried out. Double tax write-off is allowed by authorities for divisible income. Adjusted income of spouse If divisible income is divided among spouses based on their several net income sharing ration, spouse ‘s disbursals such as private disbursals in adjusted income of spouse would be allocated to the several spouse in conformity with their existent ingestion. Harmonizing to scenario 2, 20 % of private usage of the auto will be allocated under Siow partnership disbursals account.3.2 The Calculation of the Entire Income for Each Partner for the Year Assessment 2006Below is the Net income and loss history of the partnership for the twelvemonth ended 31 December 2006.3.3 Explanation Sing the Above Computation1.1.2006 – 31.03.2006 ( 3Months )Harmonizing to the partnership understanding, Ng and Siow has a shared net income every bit up to 31 March 2006. From 1st April 2006, the shared ratio has changed to 60 % for Ng and 40 % for Siow. Furthermore, Siow has usage of a auto owned by the company for private disbursals. Therefore, Siow has amounted to 20 % for private usage auto. From the 2,400 Ng and Siow has to split by 4 because the calculation has provided 3months of each spouse income. Private usage of auto = 12,000 ten 20 % = 2,400 Interest of capital per annum for Ng and Siow is RM 10,800. To Ng, involvement of capital for 31 December 2006 that he has to pay is RM6,000 per annum and to Siow, he has to pay RM4,800 per annum. In first calculation of each spouse income, Ng and Siow, has to pay the involvement of capital by divide by 4 because the calculation has provided 3months of each spouse income. = 1,20 Harmonizing to Income Tax Computation for NS Educational Partnership Year Assessment 2006, the entire divisible income is RM160,000. Meanwhile, the sharing ratios in the first 3month of the twelvemonth are every bit, so we have to split every bit to Ng and Siow.1.4.2006 – 31.12.2006 ( 9Months )Private disbursals for each spouse at 1.4.2006 – 31.12.2006 ( 9Months ) is 1,800 because has to minus with the 3 months.Private disbursals: Ng 2,400-600 = 1,800Siow 2,400-600 = 1,800Wages for each spouse for the twelvemonth ended 31 December 2206 should minus with the reply of 3 months because want to cognize the balance of the wages at 1.4.2006 – 31.12.2006.Salary: Ng 90,000 – 22,500 = 67,500Siow 60,000 – 15,000 = 45,000Interest on capital for each spouse for the twelvemonth ended 31 December 2206 should minus with the reply of 3 months because want to cognize the balance of the wages at 1.4.2006 – 31.12.2006.Interest on capital: Ng 6,000 – 1,50 0 = 4,500Siow 4,800 – 1,200 = 3,600The entire divisible income 160,000 minus 40.000 from the 3 months and after acquire the reply we should split that for each spouses.Divisible income: 160,000 – 40,000 = 120,000Nanogram: ( 120,000/5 ) x 3 = 72,000Siow: ( 120,000/5 ) x 2 = 48,000From the scenario has an approved contribution is 13,000. And the sanctioned contribution besides should split for each spouse.Approved contribution: Nanogram: ( 13,000/5 ) x 3 = 7,800Siow: ( 13,000/5 ) x 2 = 5,200From the scenario has an one-year allowance is 9,000. And the one-year allowance besides should split for each spouse.Annual allowance: Nanogram: ( 9,000/5 ) x 3 = 5,400Siow: ( 9,000/5 ) x 2 = 3,6004.0 Research on Tax Planning Opportunities for Individual with Business IncomeIt is of import for the taxpayers to aware of the options available to them in order to maximum the benefits in running the concern and at the same clip can minimise the revenue enhancement collectible lawfully. T o minimise, extinguish or postpone the income revenue enhancement, the beginning of income must fall within the scope of the jurisprudence which is the Act. Harmonizing to Victor ( 2010 ) , since gross outgo is normally absorbed in the period in which it is incurred, it is normally an allowable disbursal that a concern can compose off against its indictable income. Harmonizing to the instance survey, NS Education participates in a trade exhibition that was approved by MATRADE for the intents of advancing the export of the partnership ‘s services. This means that they are be aftering to spread out the concern overseas by offering their services loosely. In order to export their services, there are many things to be done such as export the resources from Malaysia to outside state in order to put up their concern. First thing foremost, they have to do certain that all paperss and resources being export are safe during the exportation. To make that, insurance is needed. Insurance is gross outgo as it represents an disbursal entirely and entirely incurred in the production of gross income. Let state NS Education will be operated in Australia. This means that they have two picks whether to purchase the insurance in Malaysia or Australia. In order to minimise the revenue enhancement, we recommend NS Education to purchase the insurance from Malay sia instead than Australia because the Income Tax Act 1967 allows dual tax write-off for this disbursal. Other revenue enhancement planning chance is the beginning of the concern must be done before the disbursals incurred. Expenses can be in the signifier of hire employees to renovation, every bit long as the disbursals are entirely entirely incurred in the production of income. This is because these disbursals are deductable against the gross income. Other than that, single with concern income can travel for preparation or classs to better the accomplishments in running the concern. This disbursal is besides deductable at the clip of beginning.4.1 DecisionAs a decision, income revenue enhancement gives a batch of benefits to the citizens and assist developing the state. Income revenue enhancements which come from concern beginnings is considered much more compare to the employment income. Both calculations involve different computation and accommodation, so that all the revenue enhancements collectible are low-cost by the people.