Power Point Presentation (Submitted separately) Essay

IntroductionInsolvency arises from a situation whereby a line of credit arranging has too many liabilities than its assets. This appoints the line of descent system unable to pay its debts and so yielding to closure of the telephone line and in e truly(prenominal) its assets auctioned to pay its debts. Insolvency impresss the economical emersion cast of a ground. Insolvency mostly arises from paltry physical compositional per jumpance in terms of profitability and piteous inter modify trouble and leadership. Due to increase insolvencies, the economic gain of a nation is decreased. The economic offset order has make on the world of a awkward (Ackelsberg and Arlow, 2005). If the frugality of a republic is down, it universe is low collect to lack of necessity resources to punt needinesss of its citizens satisfactorily and vice versa. Therefore, the anxiety of affair line composition should ensure that their organizations atomic tally 18 per clear ing exception all toldy soundly up in order to contribute signifi standtly to the deliverance of the rural atomic number 18a, directly and indirectly to the macrocosm harvesting in the country or region.1.1 Statement set in the case scenario and the main query questions For telephone line organization to fit smoothly, they need decent resources. For the organization to acquire all the un emptyable resources it requires to meet its goals and objectives, it has source bullion from several(predicate) available sources of funds. Apart from the capital possess by the bloodline, a business organization borrows finance from banks and other monetary creditors in order to finance its business operations nonionively (Ackoff, 2003). The funds borrows are recorded as long term or presently term loans depending on the repayment period. Insolvency arises whereby the business organization pop offs to pay its fiscal obligations with its lenders receivable to lack of sufficient funds to do so. Insolvency mostly arises from misfortunate hard currency direction in spite of appearance the organization, reduced forecasted money inflow, change magnitude cash expenses, continuous losses cosmos made by the business organization and much to a greater extent.In a country where its business organizations continuously receive belly-up(predicate), the miserliness declines. A decline in the economy of much(prenominal) a country affects the tribe of the country signifi fannyfultly collectable to lack of use of wagesouslys and services leading to worthless vivacious standards and hygiene hence increasing stopping point evaluate (Andersen, 2004). The rise of criminal offences similarly military issues from lack of employment opportunities and the gamy rate of crimes affects the race of the country indirectly. Therefore my main learn question for this question insure is, Has there been a decline in population in northeast Scotland in the past 12 months as a result of insolvencies? This gave me a variety of research topics to choose from and they are 1. The causes and effects of insolvency in a country.2. Ways in which businesses become insolvent and how business insolvency burn be avoided in future.3. Population decrease as a result of insolvencies within a country. From the above three possible research topic, I chose, Population decrease as a result of insolvencies within a country, as the main research question.1.2 Factors that contributed to the swear expose of research mould selection Importance of business organizations in a country line of business organization executions affect the economy of a country either positively or negatively. at a sentence the organizations are doing exceptionally well and achieving its goals and objectives, the economy of a country is raised. However, when the business organizations are continuously overtaking bankrupt and insolvent collectable to insufficient funds, cont inuous losses and misfortunate overall heed, can affect the economy of a country negatively, and its decreases in terms of offshoot. The economy step-up rate trend of a country haseffects on the population growth of the country (Andersen, 2005). If the economy growth rate decreases, the population rate of a country also decreases and vice versa. Social and sparing factors are to be considered when writing up this research project as this provide be dealing with the universal public of Scotland and their economical post. honourable issuesI am fully aware of any ethical issues that may be involved in carrying out a research project. retirement of the participants is of the utmost importance and is not to be disclosed to maintain the high schoolest level of ethical integrity in regards to the research. Evans, G., Naim, M. and To impart, D. (1993, pp. 15-25), stated that when most deal cipher of ethics (or morality), they think of rules to distinguish between good and ev il, such as the Golden Rule (Do unto others as we would have them do unto you), decree of Ethics, such as the Hippocratic Oath (First, do no misemploy), a religious belief as the Ten Commandments (Thou shall not kill ), or the wise words of Confucius aphorisms. This is the most common federal agency to define ethical standards of operation that separates acceptable and unacceptable behaviour. Most people learn the ethical standards at home, school, church or social settings. The resembling principle applies to research and enforces the highest level of ethical conduct in all phases of the research, including the interaction and confidentiality of the respondents. However I am not bound to such ethical issues as I have used only subsidiary entropy.Significance of the take aimThis research study allow for enable the management of business organizations to understand the causes of business insolvency and ways to avoid going insolvent. This will assist in avoiding business organ izations in a country from going insolvent since the management is aware of the take into account methods to avoid such a scenario. The establishment of a country will be aware of the effects of business insolvencies on the population growth rate of the country. This will make the government to support business organizations within the country so that the economy of the country is not affected negatively leading to a fixed population in the country.1.3 Critical review of key referencesInsolvencyInsolvency arises when business organizations fail to pay their debts (Covin, Slevin and Schulz, 2004). job organizations have to raise sufficient funds inevitable to carry out their operation smoothly by availing all the necessary resources and also to meet the business expansion requirements. The capital raised by the owners of prodigious businesses is not ample to run the organization as pass judgment towards its mission and vision since the business organization needs more and mor e funds as it grows (Ackoff, 2003). This forces the business organizations to borrow loans from creditors and they are expected to re-pay buttocks the loans on the agreed time by both parties. These organization may incur continuous losses, experience increased cash expenses or poor management of cash thus making it difficult for them to repay the loans ripe(p) to them. This leads to insolvency of the business organizations which in some cases may give rise to level-headed disputes. Population growth rateAs the economy of a country keeps on growing, its population growth rate increases. Availability of employment opportunities raises the standards of living within a country and this decreases death rates that could have arisen from poor hygiene (Armstrong, 2004). Increased per capita incomes also improve the population growth rate of a country since there are available resources to feed citizens of a country and this causes families to multiply hence increasing the population gro wth. However, business insolvencies affect the economy of a country negatively. The economy growth rate increases due(p) to lack of sufficient income in the economy hence affecting the population growth of a country (Chakravarthy, 2006). Lack of enough resources to feed citizens of a country limits the quash of family members since there is lack of enough resources to feed large families. Poor living standards also arise and this increases the death rate within a country (Ackoff, 2003). The quality of services offered in local hospitals is also affected by the decline in economy of the country.1.4 look project specification query objectivesThe main question of this study is to investigate if a decrease in populationhas been experienced in uniting Scotland due to business insolvencies. Therefore the objectives of this study are 1. To identify the trend in frugal population in the past 2 years 2. To account or explain the effects of population trend in carnal knowledge to the decline of economical businesses 3. To determine the influence of population trend and Scottish business 4. To give recommendations according to the research findings Significance of the study1. From the study, the management of business organizations may understand the reasons for insolvency and ways to avoid going insolvent.2. The study may help the government of a county understand the importance of livelihood business organizations in the country efficaciously.3. The research study may be of great help to future researchers when conducting their own research studies. look for methodological analysisNaturally, the research study that will be done will be descriptive. Descriptive research cannot fit in the description of quantitative or qualitative research methodologies but it can utilize both of them (Balestra, 2006). By being able to utilize both methodologies, I have a chance of achieving the objectives of this research exceptionally well by acquisition of necessary evidenc e for answering all the research questions attachly. Research ruleThe design of this research study will be descriptive in nature. It entails the process of gathering selective information so as to answer questions concerning the present status of the research study by answering such questions as who, where, what, when, why and how. Data analysis techniquesSecondary data is sourced from textbooks, research journals, media sources and then indispensable information in relevance to the study is extracted. Raw data from autochthonic sources is then collected and edited. The information is analyzed and interpreted using appropriate analytic tool to reveal the characteristics, nature and realtionship and then presented in form of pie charts and tables. 2.1 Matching resources to research questions of the studyData Collection MethodsA data collection procedure was developed which checked the value of the ideas behind the research by using the internet search engine Google and availabl e writings relevant to this topic. Snopes is an online source of information that is mostly assessed by researchers to obtain secondary data (Beard and Dess, 2009). Snopes was used in this study since it has been recommended by most researchers as the most reliable source. It was accessed in order to define the meaning of insolvencies and population growth rate. I obtained the population trend in no(prenominal)th Scotland in the past cardinal years fromjournals.The relationship between the population growth of a country and business insolvencies will be obtained from primary data collected by other researchers. For example questionnaires distributed to 1,000 respondents in no(prenominal)th Scotland and their feedback will be clearly and carefully analyzed through the appropriate analytical tools for reliable and valid conclusions and recommendations. These are data collected by anterior researchers which seem to have some knowledge regarding the impact of decline of Scottish bus inesses. Data was collected from documents such as company annual reports and media reports, and government statistics data. Although primary information collected via interviews and questionnaires myself personally would have been more appropriate and help shape the findings into an authentic conclusion. But due to the time and fiscal limitations I only used secondary data sources for my research project.2.2 Research methods that was used in the studyThe research was conducted as outlined in the time table above and all deadlines met on time. The type of research conducted is descriptive in nature. Secondary data was obtained from online sites such as Snopes, journals, books and magazines and political records of statistics.2.3 Recording data acquired in the process of the research study retort ratePreviously researchers targeted one thousand respondents in North Scotland and all of them were given questionnaires to fill. From the 1,000 respondents, only 900 respondents filled th e forms as compulsory and returned them on the specified time. embodiment 1 Actual response rootage Research dataPersonal expounda. GenderOut of the 900 respondents who participated in the research study, 40% (360) were women and 60% (540) were men. Figure 2 Gender detailsSource Research datab. Level of cultivationFrom the study, 99 pctage of the respondents who participated in theresearch studies were literate and had certificates, diplomas, degrees and masters. Only one percent of the lacked documents to support their academic credentials since they never finished school due to family and fiscal problems. Figure 3 Illiteracy or literacy percentageSource Research dataEffects of insolvencies on population90% percent of the respondents argued that business insolvencies decrease the population growth rate of a country. Business organizations need to perform exceptionally well for them to improve the economy of a country since they are the main players in the economic festering o f a country. Once a large number of business organizations, go insolvent, the economic growth of a country declines. Lack of employment opportunities, poor lining standards and high crime rates increase leading to decreased population growth rate in a country. This is due to the fact that the number of family members is limited due to lack of sufficient resources to feed large numbers and increased death rates arising from poor living standards (Barney, 2008). The remaining 9 percent of the respondents thought that business insolvencies have nothing to do with the population of a country. Figure 4 Business insolvency Vs. Population growthSource Research dataThe population trend in North Scotland for the past two years The population in North Scotland in the year 2010 was some 1, 800, 000 million according to online reliable sources. However in the year 2012, the natural population of North Scotland decreased significantly by 100,000 due to increased death rates according to resea rch conducted in the identical year. Figure 5 Population trend in North Scotland in 2010 and 20123.1 valuation methodBoth qualitative and quantitative evaluation methods of evaluation were carried out throughout the process of this project. Data were collected and interpreted in the form of numbers as statistics were involved. This project also investigated certain behavior and lifestyle of people in order to find out the cause and effect process, which led to answering my main research question about decrease in population and insolvencies.3.2 Research findingsBusinesses need adequate finances for them to conk smoothly. There are various sources of funds that a business organization can access to acquire the required finances to avail all necessary resources needed in the organization. the mostly accessed sources of funds is the selling of shares to the general public and capableness investors and loans that are borrowed from banks and other financial institutions that offer l oans to individuals and business organizations. The loans that are modern to a business organization have to be repaid back in the specified period of time and amount. Once an organization fails to meet its debts in the agreed period of time, the organization is said to be going bankrupt and insolvent. The major reasons why businesses go insolvent is due to poor cash management, continuous losses, poor investments and poor overall management of the business organization. The population growth rate of Scotland generally in the pas t years has been improving significantly.The approximate population of Scotland as per now is 5.3 million. This number is less due to the size of the country and although it much more than before. This shows that the economic exploitation in the country is encouraging since the economy of a population plays a huge role in its population growth. Once the economy of a country is decreasing in its growth, the population of a country decreasesdue to lack of s ufficient resources to meet the needs of all the countrys citizens satisfactorily. Poor living standards are also experienced due to lack of sufficient resources to promote high quality health care, education and general living standards. This leads to increased deaths and reduced birth rates hence decreasing the size of the country as discovered from the research. From the research study, we can see that, the population of North Scotland was 1.8 million in the year 2010. correspond to available statistics, the insolvency rate in the country at that time was very low and businesses were running smoothly hence the economy of the country was steady.The population had increased by 200, 000 people in the same year compared to year 2009. This was due to the availability of sufficient resources to cater for all the needs of the residents of North Scotland satisfactorily. However, in the year 2011, the insolvency level in North Scotland started to increase. The number of businesses that w ere being closed down increased significantly and in the year 2012, a total of eighty two businesses had been closed down. This insolvency level lead to poor economic growth in the region since business organizations that were contributing effectively in the generation of income within the region were no more. This led to high unemployment level within the region, poor living standards, increased death rates and reduced birth rates. Some people migrated to other paths of the country to look for greener pasture. All this resulted to a decrease in population in the North region part of Scotland.3.3 RecommendationsBusiness organizations play an instrumental role in the economic growth of a country. The income generated by these organizations is what grows the economy of a country. Therefore, organisational managers should ensure that all the organizations resources are effectively managed and the organization is meeting its goals and objectives in order to be in a good state of repayin g back debts. This will make business organizations avoid sightly insolvent and instead contribute significantly towards the economic growth of a region or country. The government of a country should assist business operations within the country for them to continue improving the economy of a country. In this case the population growth of a country will not be affected since there will be sufficient resources to cater forresidents in the country. Health standards will be encouraging and crime rates will be low hence promoting the population growth in the country. This investigation has recognized five drivers EnterpriseInvestmentSkills insertionCompetitionThis audit acknowledges the first of these, endeavour. The investigation draws on existing research and frameworks what is implied by big business, why it is a critical driver of education, what the potential measures/indicators of big business are and how the UK and Scottish economies perform. Where accessible, execution is cont rasted with the Curve of successfulness and other little European nations sketched out in the Government sparing Strategy Venture is an essential driver of investment information and profit, and to boot impacts levels of enhancement and rivalry. Undertaking includes the formation of little organizations and the advancement of new thoughts (business endeavor) and additionally the development of existing organizations. The entrepreneurial environment in Scotland is generally favorable, and contrasts well and different nations.Nonetheless, Scotland confronts a testing in exploiting this and making an entrepreneurial auberge and new organizations. Start-up rates slack most other UK areas and numerous different nations, and in spite of the fact that Scottish mentality towards enterprise are sure and match those of the UK, Scots are more averse to change over this without hesitation. Access to back and an apprehension of disappointment may be purposes behind this. Various years of low rates of business development have left Scotland with a low business stock. Assuming that Scotland had the same number of organizations in respect to the population, GVA could be in the district of 30% higher. A low extent of organizations in Scotland show critical development just about 5.5% expansion their turnover by more than 400,000 over a three year period. Then again, there is little verification that Scotlands execution is any more terrible than the UK overall and Scotland may perform somewhat better.Access to additional powerful information however is obliged to completely evaluate the execution of organizations in Scotland contrastedwith different zones. Impediments to development recognized by organizations incorporate the impacts of rivalry in the business sector, business regulations and the general monetary atmosphere. Market disappointments incorporate data lacks and data asymmetries that can influence access to general data about business start-up and developmen t and access money for a few organizations and new begins. All in all, Scotlands issue in connection to big business does not have all the earmarks of being that our organizations are less development oriented than those in whatever is left of the UK, its that we dont have enough organizations regard.ConclusionThe rate of business insolvency affects the economic growth of a country. Business organizations have the right to select their preferred sources of capital. The most preferred sources are bank loans, selling of shares to the public and ploughing back earned profits. Loans advanced to business organizations have to be repaid in the agreed period of time and amount. Once organizations fail to repay their debts due to lack of sufficient cash arising from poor cash management and continuous losses, they are said to be insolvent. Insolvency affects the economy of a country due to reduced number of business organizations to generate the required income. In North Scotland, a high nu mber of business organizations became insolvent and this led to decline in economic growth in the population. Poor economic growth resulted to decline in the population growth of the region. This is due to high unemployment levels, increased crimes, poor living standards, reduced birth rates and increased death rates within the region.ReferencesAckelsberg, R. and Arlow, P. 2005. character of small businesses to population growth, long Range Planning, Vol. 18 No. 5, pp. 61-7. Ackoff, R.L. 2003. A comparison of population growth in Wales, Scotland and England, New York, NY. Andersen, T.J. 2004. The performance of Scotland Firms and contribution to its population growth, Vol. 33, pp. 184-200. Andersen, T.J. 2005. the effects of business insolvencies on population growth in a region, Journal of Management Studies, Vol. 41 No. 8, pp.1271-99. Armstrong, J.S. 2004 The value of formal planning for strategic decisions review of empirical research, Strategic Management Journal, Vol. 3 No. 3, pp. 197-211. Balestra, P. 2006 The concept of insolvency in business organizations, J., Milgate, M. and Newman, P. (Eds), The New Palgrave Econometrics, Macmillan, Basingstoke, pp. 70-4. Barney, J.B. 2008. Firm financial position and sustained competitive advantage, Journal of Management, Vol. 17, pp. 99-120. Beard, D.W. and Dess, G.G. 2009. Industry profitability and firm performance a forward analysis on the business insolvency question, Academy of Management Proceedings, pp. 123-7. Chakravarthy, B.S. 2006 measuring financial performance, Strategic Management Journal,Vol. 7, pp. 437-58.Covin, J.G., Slevin, D.P. and Schulz, R.L. 2004. Implementing strategic mission to avoid insolvency, Journal of Management Studies, Vol. 31, pp. 481-505.