Monday 23 May 2011

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Reading Diane Ravtich’s excellent takedown of (private school grad and college dropout) Bill Gates for his interventions in public education reminded me that the only reason people listen to him is that he’s thought to be some sort of business genius (as if business genius were translatable to pedagogy or anything else). If he’s that rich, he must be smart, eh? But he’s really not such a business genius.

Well, he’s a business genius of a sort, but not of the sort of heroic entrepreneur that’s usually lionized. His first foray into code-writing was a version of BASIC for some early hobbyist machines (written with fellow future megabillionaire Paul Allen). BASIC was originally developed at Dartmouth, a nonprofit educational institution, but Gates was learning how to take the work of others and turn it into his own property.
What really made him rich was having been in the right place at the right time in 1981 when IBM needed an operating system for its new PC. Gates (with Allen) borrowed heavily, to put it gently, from an existing operating system, Digital Research’s CP/M. (For DR’s version of this history—“Microsoft paid Seattle Software Works for an unauthorized clone of CP/M, and Microsoft licensed this clone to IBM”—see here. A less biased, though still damning, look is here.) In other words, another instance of adopting someone else’s work and taking credit for it—this time with the innovation of litigating aggressively and manipulating markets to defend a monopoly position. Because once it secured that monopoly, Microsoft did everything it could to crush competition.
Having secured that early market dominance with MS-DOS, Microsoft became a money machine. It earned monopoly profits with almost no cost of production. But after that, aside from Office, Microsoft has been unable to launch a truly successful product on its own creative juices. Windows—at first, a gussied up version of MS-DOS—was basically lifted from the Mac OS (which Apple itself had lifted from Xerox) and it took years before they got it right. Many Windows releases have been extremely buggy and bloated. Explorer is a crummy browser. Microsoft’s efforts on the web, Hotmail and Bing and the rest, have been disappointing. Their attempt to imitate the iPod, Zune, is a joke. Microsoft has lost money on videogames, despite the enormous growth in that market.
(Some numbers to back that up, from Microsoft’s latest annual report. The profit margin—operating profits as a percentage of sales—on Windows is around 70%. On Office, it’s 63%. Then the numbers fall hard. Entertainment, mainly the Xbox and Zune, has an 8% margin. And the online division, mainly Bing and MSN, lost more money than it took in in revenue.)
So it’s pretty rich for Gates to criticize monopoly and stodginess in public education, given this business history. His father was, among other things, an intellectual property lawyer, which did teach him something about gaining advantage in a world where the innovation of others can threaten monopoly profits. (The University of Washington law school’s Center for Advanced Study & Research on Intellectual Property is headquartered in a building named after Gates Sr.) But there’s nothing terribly admirable about using litigation and market power to become a billionaire. And that sort of personal and business history certainly doesn’t give you the credential to hold forth on education policy.

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Image: Microsoft co-founders Paul Allen and Bill Gates
George Frey  /  AFP - Getty Images file
Microsoft co-founders Bill Gates, right, and Paul Allen in more cordial times taking in a Portland Trailblazers game during the 2000 Western Conference finals.
updated 3/30/2011 4:16:12 PM ET
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Microsoft Corp co-founder Paul Allen has accused his former business partner Bill Gates of plotting to dilute Allen's stake in the world's largest software company before he left in 1983, and tried to buy his share of the company on the cheap.
Allen, who now runs a Seattle-based investment firm and philanthropic foundation, makes the claim in a forthcoming book of memoirs, excerpts from which were published in Vanity Fair magazine Wednesday.
Allen, 58, says he overheard a heated conversation between Gates and now Chief Executive Steve Ballmer in December 1982, shortly after Allen told them he was thinking of leaving the company.

"It was easy to get the gist of the conversation," writes Allen in the memoir as reproduced in Vanity Fair. "They were bemoaning my recent lack of production and discussing how they might dilute my Microsoft equity by issuing options to themselves and other shareholders. It was clear that they'd been thinking about this for some time."
Allen, who at that time was receiving treatment for Hodgkin's lymphoma cancer, and was scaling back his work at Microsoft, says he later received apologies from both Gates and Ballmer over the incident.
Allen, who made up the name Microsoft, co-founded the company with Gates in 1975. Two years later, he and Gates agreed to take 36 and 64 percent shares in the company respectively, Allen says in the book, owing to Gates' greater contribution to their first coding job for the new Altair computer, which turned out to be the company's first big break.
The two men's holdings in Microsoft were later diluted as more people joined the company and it issued shares publicly in 1986.
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As the company grew, the two clashed over the hiring of Ballmer — a friend of Gates' from Harvard — to lead sales and marketing efforts in 1980.
Story: What Paul Allen really thinks of Bill Gates Allen claims in the book that they agreed to give Ballmer no more than 5 percent equity in the company, but says Gates went behind his back to offer Ballmer 8.75 percent.
"It was bad enough that Bill had chosen to override me on a partnership issue we'd specifically discussed," says Allen in his book. "It was worse that he'd waited till I was away to send the letter."
Allen says Gates eventually made up the extra equity given to Ballmer from his own share. Ballmer became CEO in 2000, and is the second-largest individual shareholder behind Gates.
Before he left Microsoft in 1983, Allen claims Gates attempted to buy his shares from him at a bargain price.
"It's not fair that you keep your stake in the company," Allen reports Gates as saying, making what Allen described as a "lowball" offer of $5 a share for his stock. Allen says he wouldn't go below $10. As a result, Allen says he kept his share.
"As it turned out, Bill's conservatism worked to my advantage. If he'd been willing to offer something close to my asking price, I would have sold way too soon," says Allen in the book.
Gates, who has recently been traveling in India working on his own philanthropy projects, did not directly contest Allen's account, but sought to play down friction.
"While my recollection of many of these events may differ from Paul's, I value his friendship and the important contributions he made to the world of technology and at Microsoft," Gates said in an emailed statement.
A Microsoft spokesman declined to comment.
Allen is ranked the 57th richest person in the world with a fortune of $13 billion, according to Forbes magazine, largely due to his Microsoft holdings. Gates is ranked No. 2 with $56 billion.
Allen's book, titled "Idea Man", is set to be published later this month by Portfolio.
(Msnbc.com is a Microsoft-NBC Universal joint venture.)

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Bill Gates Biography

Home > Entrepreneur Biographys > Bill Gates

Richest man in the World, co-founder of Microsoft, philanthropists.

"Your most unhappy customers are your greatest source of learning."
- Bill Gates
Bill GatesFull name: William Henry Gates III
Famous for: Richest man in the World, co-founder of Microsoft, and for being one of the world's most generous philanthropist
Gates details: Born - October 28, 1955Live - USA



Bill Gates is one of the most influential people in the world. As the head of the software company Microsoft he is one of the world's wealthiest men.

Gates was born and grew up in Seattle Washington USA. His father, William H. Gates II, was a prominent lawyer, his mother, Mary Maxwell Gates, served on the boad of directors for the Interstate Bank and the United Way. His parents recognized his intelligence and decided to enroll him in Lakeside, a private school known for its intense academic environment - it was here that Bill Gates was first introduced to computers.
Gates went on to Harvard University and while there teamed up with Paul Allen, co-founder of Microsoft, to write a new version of Basic programming language for the first personnel computer the Altair 8800. The company was impressed with Gates and Allen's work and licensed the software resulting in Gates and Allen forming the company Microsoft to develop software for other companies. Bill dropped out of Harvard to spend more time on the new business.
Bill Gates and the Microsoft Corporation
After dropping out of Harvard, Bill Gates and his partner Paul Allen set about revolutionizing the computer industry. Gates believed there should be a computer on every office desk and in every home.
In 1975 the company Micro-soft was formed, which was an abbreviation of microcomputer software. It soon became simply "Microsoft" and went on to completely change the way people use computers.
Microsoft helped to make the computer easier to use with its developed and purchased software, and made it a commercial success. The success of Microsoft began with the MS-DOS computer operating system that Gates licensed to IBM. Gates also set about protecting the royalties that he could acquire from computer software by aggressively fighting against all forms of software piracy, effectively creating the retail software market that now exists today. This move was quite controversial at the time as it was the freedom of sharing that produced much innovation and advances in the newly forming software industry. But it was this stand against software piracy, that was to be central in the great commercial success that Microsoft went on to achieve.
Gates oversaw the invention and marketing of the MS-DOS operating system, the Windows operating interface, the Internet Explorer browser, and a multitude of other popular computer products. Along the way he gained a reputation for fierce competitiveness and aggressive business savvy. During the 1990s rising Microsoft stock prices made Gates the world's wealthiest man; his wealth has at times exceeded $75 billion, making Gates a popular symbol of the ascendant computer geek of the late 20th century.
Criticism
With his great success in the computer software industry also came many criticisms. With his ambitious and aggressive business philosophy, Gates or his Microsoft lawyers have been in and out of courtrooms fighting legal battles almost since Microsoft began.
The Microsoft monopoly sets about completely dominating every market it enters through either acquisition, aggressive business tactics or a combination of them. Many of the largest technology companies have fought legally against the actions of Microsoft, including Apple Computer, Netscape, Opera, WordPerfect, and sun Microsystems.
Bill Gates Net Worth
With an estimated wealth of $53 billion in 2006, Bill Gates is the richest man in the world and he should be starting to get used to the number spot as he has been there from the mid-ninties up until now. The famous investor Warren Buffett is gaining on Gates though with an estimated $46 billion in 2006.
Microsoft hasn't just made Bill Gates very wealthy though. According to the Forbes business magazine in 2004 Paul Allen, Microsoft cofounder was the 5th richest man in the world with an estimated $21 billion. While Bill Gates' long time friend and Microsoft CEO, Steve Ballmer was the 19th richest man in the world at $12.4 billion.
Bill Gates Philanthropy
In 2000, Gates founded the Bill & Melinda Gates Foundation, a charitable organization, with his wife. The Bill and Melinda Gates Foundation has an endowment of more than $28 billion, with donations totaling more than $1 billion every year. The foundation's grants have provided funds for college scholarships for under-represented minorities, AIDS prevention, diseases prevalent in third world countries, and other causes.
The foundation was formed in 2000 after merging the "Gates Learning Foundation" and "William H. Gates Foundation". Their aim is to "bring innovations in health and learning to the global community".
Bill Gates continues to play a very active role in the workings of the Microsoft Company, but has handed the position of CEO over to Steve Ballmer. Gates now holds the positions of "Chairman" and "Chief Software Architect". He has stated that he plans to take on fewer responsibilities at Microsoft and will eventually devote all his time to the Foundation.
In 2006, the second richest man in the world, Warren Buffett pledged to give much of his vast fortune to the Bill and Melinda Gates Foundation.
Bill Gates Receives a KBE
In March 2005 William H. Gates received an "honorary" knighthood from the queen of England. Gates was bestowed with the KBE Order (Knight Commander of the Most Excellent Order of the British Empire) for his services in reducing poverty and improving health in the developing countries of the world. After the privately held ceremony in Buckingham Palace with Her Majesty Queen Elizabeth II, Gates commented on the recognition.. "I am humbled and delighted. I am particularly pleased that this honor helps recognize the real heroes our foundation (Bill and Melinda Gates Foundation) supports to improve health in poor countries. Their incredible work is helping ensure that one day all people, no matter where they are born, will have the same opportunity for a healthy life, and I'm grateful to share this honor with them."
The KBE Order of the British Empire is the second highest Order given out, but it is only an honorary knighthood as only citizens that are British or a part of the Commonwealth receive the full Order. This means that Gates does not become Sir Bill Gates.
Bill Gates lives near Lake Washington with his wife and their three children. Interests of Gates include reading, golf and playing bridge.

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What is business intelligence?

Business intelligence, or BI, is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data. BI as a discipline is made up of several related activities, including data mining, online analytical processing, querying and reporting.
Companies use BI to improve decision making, cut costs and identify new business opportunities. BI is more than just corporate reporting and more than a set of tools to coax data out of enterprise systems. CIOs use BI to identify inefficient business processes that are ripe for re-engineering.
With today’s BI tools, business folks can jump in and start analyzing data themselves, rather than wait for IT to run complex reports. This democratization of information access helps users back up—with hard numbers—business decisions that would otherwise be based only on gut feelings and anecdotes.
Although BI holds great promise, implementations can be dogged by technical and cultural challenges. Executives have to ensure that the data feeding BI applications is clean and consistent so that users trust it.

What kind of companies use BI systems?

Restaurant chains such as Hardee’s, Wendy’s, Ruby Tuesday and T.G.I. Friday’s are heavy users of BI software. They use BI to make strategic decisions, such as what new products to add to their menus, which dishes to remove and which underperforming stores to close. They also use BI for tactical matters such as renegotiating contracts with food suppliers and identifying opportunities to improve inefficient processes. Because restaurant chains are so operations-driven, and because BI is so central to helping them run their businesses, they are among the elite group of companies across all industries that are actually getting real value from these systems.
One crucial component of BI—business analytics—is quietly essential to the success of companies in a wide range of industries, and more famously essential to the success of professional sports teams such as the Boston Red Sox, Oakland A’s and New England Patriots.

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Chris,
I’ve been wondering about the definition of ethics given here, as constraints on self-interest, when the philosophy of personal identity seems to have a hard time defining a personal identity that could function as an extension for the ‘self’ (whose interest is at odds with that of the public)*.
Now, I’ve been corrected by my biggers and betters for suggesting there might not be a workable distinction between ethics and prudence. Indeed, it was not until I got to SMU that I was even aware of such a distinction. It seemed pretty reasonable to me that, given the tendency to use “morals” and “ethics’ interchangeably, and to label certain behaviours only affecting the self as “immoral” or “unethical”, one could have competing self-interests as well as conflicts between groups and there members.
It seems to me that it would be useful to take your working definition of ethics and to contrast it with definitions operating with different auxiliary theories, of personal identity and other disputable notions. I agree that it’s useful to have a common definition to use as a starting point for a constructive discussion, but my experience is that such attempts at common ground often become an orthodoxy, and get used to quash dissent or to dismiss objections as merely skeptical.
*At least according to a gentleman who presented at a colloquium about the state of philosophy of personal identity at Dal while I was at SMU, I forget his name but it’s easily looked up.

Thanks. This needs to be said, and emphasized. I often present Carroll’s famous CSR pyramid (which has ethics as a part of CSR) as a transition to a different model which has ethics as a foundation for legal, social and economic “responsibilities”, claiming to my students that ethics is what grounds these other components of CSR. I take it that this is consistent with your suggestion. Citizenship is another matter, but there, too, it seems like a comparable move is possible, grounding notions of citizen rights and responsibilities in terms of some prior ethical commitments.

Beverly:
Fair question.
For casual purposes, we can indeed use those words interchangeably. So we can either say “You have an ethical obligation to do x” or “You have a moral obligation to do x” and mean the same thing.
But there is a difference between a norm being prevalent in a community and a norm being well-justified, and so sometimes we want to use different words to point out that distinction. We don’t always need the technical distinction, but it can be handy.
It’s also interesting to note that you very often hear it said that such-and-such is “morally and ethically wrong”, and in most cases the speaker has absolutely no idea what they mean by that.



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Ethics: Definition

“Ethics” can be defined as the critical, structured examination of how we should behave — in particular, how we should constrain the pursuit of self-interest when our actions affect others.
“Business Ethics” can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.
The “critical” and the “structured” parts of those definitions are both important:
  • Ethics is critical in the sense of having to do with examining and critiquing various moral beliefs and practices. (“Morality”, by contrast, is just the word for the more-or-less shared collection of norms and values according to which we act and judge each other’s actions.) Ethics involves looking at particular norms and values and behaviours and judging them, asking whether various norms and values are mutually contradictory, and asking which ones matter more in what sorts of situations.
  • Ethics is structured in the sense that it’s not just about having an opinion about how people should behave. Everyone has opinions. Ethics involves attempting, at least, to find higher-order principles and theories in an attempt to rationalize and unify our diverse moral beliefs.
For practical purposes, ethics means providing reasoned justification for our choices & behaviour when it affects others, and reasoned justification for our praise or criticism of other people’s behaviour.
Now, nothing above constitutes an argument. I’m just explaining roughly the proper use of the term “ethics.” There are, of course, other uses of that term — some of them arguably regrettable. (Some people in business and government, for example, take the word “ethics” to refer exclusively to the rules set out in various “ethics laws” that govern the behaviour of individuals in positions of responsibility, rules about conflict of interest, bribery, and so on.)
So, here comes the contentious part. I’m not sure it really is or should be contentious, but some people are bound to disagree with it.
The breadth of the topic “business ethics,” as defined above, means that other, related ideas like Corporate Social Responsibility (CSR) and corporate citizenship and sustainability are in fact sub-topics within the broader topic of business ethics. That’s not to diminish the importance of those sub-topics. But it’s worth keeping in mind, because it means that a focus on any one of those topics means setting aside potentially-important issues that fall under a different heading. This is especially true when companies (and consultants) focus on just one term. When they do that, it’s worth wondering, and maybe asking pointedly, about the stuff they’re leaving out.

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business - the activity of providing goods and services involving financial and commercial and industrial aspects; "computers are now widely used in business"
business enterprise, commercial enterprise
overcapitalisation, overcapitalization - (business) too much capitalization (the sale of more stock than the business warrants)
tourism, touristry - the business of providing services to tourists; "Tourism is a major business in Bermuda"
operation - the activity of operating something (a machine or business etc.); "her smooth operation of the vehicle gave us a surprisingly comfortable ride"
fishing - the occupation of catching fish for a living
butchering, butchery - the business of a butcher
storage - the commercial enterprise of storing goods and materials
manufacture, industry - the organized action of making of goods and services for sale; "American industry is making increased use of computers to control production"
commerce, commercialism, mercantilism - transactions (sales and purchases) having the objective of supplying commodities (goods and services)
business activity, commercial activity - activity undertaken as part of a commercial enterprise
business - the volume of commercial activity; "business is good today"; "show me where the business was today"
field of operation, line of business, field - a particular kind of commercial enterprise; "they are outstanding in their field"
market, marketplace, market place - the world of commercial activity where goods and services are bought and sold; "without competition there would be no market"; "they were driven from the marketplace"
employee-owned business, employee-owned enterprise - a commercial enterprise owned by the people who work for it
finance - the commercial activity of providing funds and capital
discount business - the business of selling merchandise at a discount
real-estate business - the business of selling real estate
publicizing, advertising - the business of drawing public attention to goods and services
publishing, publication - the business of issuing printed matter for sale or distribution
printing - the business of producing printed material for sale or distribution
packaging - the business of packing; "his business is packaging for transport"
agribusiness, agriculture, factory farm - a large-scale farming enterprise
building, construction - the commercial activity involved in repairing old structures or constructing new ones; "their main business is home construction"; "workers in the building trades"
shipping, transport, transportation - the commercial enterprise of moving goods and materials
venture - a commercial undertaking that risks a loss but promises a profit
administration, disposal - a method of tending to or managing the affairs of a some group of people (especially the group's business affairs)
establishment - a public or private structure (business or governmental or educational) including buildings and equipment for business or residence
gambling den, gambling hell, gambling house, gaming house - a public building in which a variety of games of chance can be played (operated as a business)
astuteness, perspicaciousness, perspicacity, shrewdness - intelligence manifested by being astute (as in business dealings)
cinema, film, celluloid - a medium that disseminates moving pictures; "theater pieces transferred to celluloid"; "this story would be good cinema"; "film coverage of sporting events"
business people, businesspeople - people who transact business (especially business executives)
business sector, business - business concerns collectively; "Government and business could not agree"
chain - (business) a number of similar establishments (stores or restaurants or banks or hotels or theaters) under one ownership
business, business concern, business organisation, business organization, concern - a commercial or industrial enterprise and the people who constitute it; "he bought his brother's business"; "a small mom-and-pop business"; "a racially integrated business concern"
capitalist - a person who invests capital in a business (especially a large business)

3.businessbusiness - the principal activity in your life that you do to earn money; "he's not in my line of business"
job, line of work, occupation, line
activity - any specific behavior; "they avoided all recreational activity"
confectionery - the occupation and skills of a confectioner
sport - the occupation of athletes who compete for pay
farming, land - agriculture considered as an occupation or way of life; "farming is a strenuous life"; "there's no work on the land any more"
biz, game - your occupation or line of work; "he's in the plumbing game"; "she's in show biz"
calling, career, vocation - the particular occupation for which you are trained
employment, work - the occupation for which you are paid; "he is looking for employment"; "a lot of people are out of work"
appointment - the job to which you are (or hope to be) appointed; "he applied for an appointment in the treasury"
berth, billet, post, situation, position, office, place, spot - a job in an organization; "he occupied a post in the treasury"
salt mine, treadmill - a job involving drudgery and confinement
craft, trade - the skilled practice of a practical occupation; "he learned his trade as an apprentice"
profession - an occupation requiring special education (especially in the liberal arts or sciences)
metier, medium - an occupation for which you are especially well suited; "in law he found his true metier"
accountancy, accounting - the occupation of maintaining and auditing records and preparing financial reports for a business
photography - the occupation of taking and printing photographs or making movies
catering - providing food and services

4.business - a rightful concern or responsibility; "it's none of your business"; "mind your own business"
headache, worry, vexation, concern - something or someone that causes anxiety; a source of unhappiness; "New York traffic is a constant concern"; "it's a major worry"

5.business - an immediate objective; "gossip was the main business of the evening"
objective, aim, object, target - the goal intended to be attained (and which is believed to be attainable); "the sole object of her trip was to see her children"
occasions - something you have to do; "he minded his own specialized occasions"

6.business - the volume of commercial activity; "business is good today"; "show me where the business was today"
business enterprise, commercial enterprise, business - the activity of providing goods and services involving financial and commercial and industrial aspects; "computers are now widely used in business"
business activity, commercial activity - activity undertaken as part of a commercial enterprise
trade, patronage - the business given to a commercial establishment by its customers; "even before noon there was a considerable patronage"
land-office business - very large and profitable volume of commercial activity

7.business - business concerns collectively; "Government and business could not agree"
business sector
business enterprise, commercial enterprise, business - the activity of providing goods and services involving financial and commercial and industrial aspects; "computers are now widely used in business"
sector - a social group that forms part of the society or the economy; "the public sector"
big business - commercial enterprises organized and financed on a scale large enough to influence social and political policies; "big business is growing so powerful it is difficult to regulate it effectively"
incorporate - form a corporation

8.business - customers collectively; "they have an upper class clientele"
people - (plural) any group of human beings (men or women or children) collectively; "old people"; "there were at least 200 people in the audience"

9.businessbusiness - incidental activity performed by an actor for dramatic effect; "his business with the cane was hilarious"
acting, performing, playacting, playing - the performance of a part or role in a drama
schtick, schtik, shtick, shtik - (Yiddish) a contrived and often used bit of business that a performer uses to steal attention; "play it straight with no shtik

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Business & Economy

Vegetable, fruit exports increase 104pc, 14.66pc

ISLAMABAD: Vegetable exports from the country surged by 103.65 percent during the first ten months of the current fiscal year against the same period of last year, Federal Bureau of
Image - Vegetable, fruit exports increase 104pc, 14.66pc Monday, 23 May 2011 Comments
  • Non-life insurance profit up by 60pc in Q1 of 2011
  • New growth strategy to enhance productivity, create more
  • Exports of Rs1,722,691 million recorded in 10
Image - Shipping activity at Port Qasim

Industries & Sectors

Shipping activity at Port Qasim

KARACHI: Two ships C.V Maersk Georgia and M.T Al-Soor-II carrying containers and diesel oil were berthed at Port Qasim International Container Terminal and FOTCO Oil Terminal respectively on Sunday, May
Monday, 23 May 2011 Comments
  • Intel announces new high-speed technology
  • Sindh completes 49pc, Punjab 39pc cotton sowing
  • FBR extends depreciation limit

Banking & Finance

Image - ADB invests in Climate Change Technology Venture Capital ADB invests in Climate Change Technology Venture Capital

ISLAMABAD: The Asian Development Bank (ADB) is investing $60 million to help set up three venture capital funds dedicated to nurturing new climate change technologies. ADB is injecting $20 million each

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Classifications

Wall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol for American capitalism.
  • Agriculture and mining businesses are concerned with the production of raw material, such as plants or minerals.
  • Financial businesses include banks and other companies that generate profit through investment and management of capital.
  • Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.
  • Manufacturers produce products, from raw materials or component parts, which they then sell at a profit. Companies that make physical goods, such as cars or pipes, are considered manufacturers.
  • Real estate businesses generate profit from the selling, renting, and development of properties, homes, and buildings.
  • Retailers and Distributors act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services. Most consumer-oriented stores and catalog companies are distributors or retailers.
  • Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses, or consumers. Organizations ranging from house decorators to consulting firms, restaurants, and even entertainers are types of service businesses.
  • Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs.
  • Utilities produce public services such as electricity or sewage treatment, usually under a government charter.
There are many other divisions and subdivisions of businesses. The authoritative list of business types for North America is generally considered to be the North American Industry Classification System, or NAICS. The equivalent European Union list is the Statistical Classification of Economic Activities in the European Community (NACE).Mill,

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Deposit account interest rates fall behind inflation
22 May 2011 By Jon Ihle, Markets Correspondent

Irish savers have been left with no deposit account options to protect their cash from the rising cost of living.

As consumer price inflation continues to rebound from a nearly two-year decline, the interest rates available on even the best-paying deposit accounts now are not high enough to beat inflation over a year, once deposit interest rate tax (Dirt) is taken into account.

The increase in Ireland’s consumer price index hit 3.2 per cent for the year to April, in line with abroad European trend that has caused the European Central Bank (ECB) to start tightening lending rates. Banks would have to offer interest rates on deposits of nearly 4.5 per cent to give savers a net return better than that figure.

But even market leading regular saver accounts from Permanent TSB, Ulster Bank and EBS paying 4 per cent per year yield just under 2.9 per cent after Dirt.

Irish banks are desperate to attract depositors to secure more stable funding, reduce their leverage and wean themselves off Central Bank support. This has led to fierce rate competition, even as the ECB has kept base rates at record lows. An inflationary trend could force them to boost rates to keep savers. AIB, Bank of Ireland, EBS, Permanent TSB, KBC and Ulster Bank all told The Sunday Business Post they were keeping rates under review.

The Irish savings rate continues to be robust as consumers cut back on spending and pay down debt. The Central Bank’s quarterly financial survey found that Irish household wealth rose by 6 per cent in the last three months of 2010 as people reduced their liabilities.

As mortgage interest rates rise due to increases both in variable rates and the ECB rate, banks should have an opportunity to reprice deposit rates upwards without threatening margins further.