Canadas Water Crisis

Canadas Water Crisis-Do we Sell? Essay Since more than 70% of the Earth is covered with water, one would assume that there is enough water for everyone. However, this statement would be incorrect. Only 3% of that water is considered usable and 2% of the usable water is locked in the polar ice caps. This leaves 1% of that water for the use of humans. Canada possesses a substantial amount of this water, while other countries are less fortunate. One of these countries is the United States of America, the biggest users of water in the world. They are looking for a new source of water and have been hoping Canada can be this new source. The Canadian government should accept the proposal to sell water in bulk to the United States due to the availability, the safety and the economic opportunities it would bring. Water is easily available to Canadians. According to Report Newsmagazine, Canada possesses 20% of the worlds Fresh Water. Report also states that Canada possesses only 0.5% of the worlds population. This means that on a per capita basis, Canada has more water than any other nation. Furthermore, water is a renewable resource, which means that once it is used, it may be used again after the water cycle. Many other materials Canada sells to the United States are not renewable. Dennis Owens, the senior Frontier Centre analyst says, Here we are giving non-renewable oil and gas to the U.S., then water falls from the sky and goes into the ocean and we wont give it to them. In Newfoundland, Gisbourne Lake has the potential to drain 500,000 cubic meters of water per week. This drainage would only lower the level of the lake one inch and this would naturally be replenished within ten hours. Canada has cut down trees that will take 100 years to grow back and sold them. Selling our water will no t be a loss to us as the water will replenish in little time. The oil, gas, coal and trees will not. Companies have the technology and the knowledge to divert or sell water in a way that is safe on the environment. Part of the Canadian population has been misled to believe that Canada will not have enough water for its residents if it sells water to the United States. This is a myth. Toronto MP Dennis Mills says, Many people just dont understand the issue. They have this idea that the Americans are going to build the biggest pipeline the world has ever seen and drain the Great Lakes dry. There are many proposed diversion schemes that would have minimal effect on ecology. The water diversion scheme in Manitoba is an example of this. It proposes that an insulated pipeline be stationed at the mouth of the Nelson River just before it empties into Hudson Bay. This scheme would allow the Nelson River to run its full, natural course and only divert 1% of the fresh water that is currently being emptied into Hudson Bay. The Canadian people have being misled that the world is going to run out of water. According to cbc.ca, the amount of water on the earth has stayed the same for the last four billion years, and will not change. Canadians have enough water especially compared to many other countries. According to The Globe and Mail, Maude Barlow has said 31 countries are facing water stress and scarcity and more than a billion people lack adequate access to clean drinking. By the year 2025, as much as two-thirds of the worlds population will be living with a serious scarcity of water. This quote displays that other countries need the water and can put it to better use than Canada can. Canada is a nation that has always tried to help others and this opportunity would benefit both the United States and Canada. .uf054742edaf95494f8c7cc3c4485a88c , .uf054742edaf95494f8c7cc3c4485a88c .postImageUrl , .uf054742edaf95494f8c7cc3c4485a88c .centered-text-area { min-height: 80px; position: relative; } .uf054742edaf95494f8c7cc3c4485a88c , .uf054742edaf95494f8c7cc3c4485a88c:hover , .uf054742edaf95494f8c7cc3c4485a88c:visited , .uf054742edaf95494f8c7cc3c4485a88c:active { border:0!important; } .uf054742edaf95494f8c7cc3c4485a88c .clearfix:after { content: ""; display: table; clear: both; } .uf054742edaf95494f8c7cc3c4485a88c { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uf054742edaf95494f8c7cc3c4485a88c:active , .uf054742edaf95494f8c7cc3c4485a88c:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uf054742edaf95494f8c7cc3c4485a88c .centered-text-area { width: 100%; position: relative ; } .uf054742edaf95494f8c7cc3c4485a88c .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uf054742edaf95494f8c7cc3c4485a88c .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uf054742edaf95494f8c7cc3c4485a88c .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uf054742edaf95494f8c7cc3c4485a88c:hover .ctaButton { background-color: #34495E!important; } .uf054742edaf95494f8c7cc3c4485a88c .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uf054742edaf95494f8c7cc3c4485a88c .uf054742edaf95494f8c7cc3c4485a88c-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uf054742edaf95494f8c7cc3c4485a88c:after { content: ""; display: block; clear: both; } READ: How Many Pages is 7500 Words?The economic opportunities of these water diversion projects are endless. They have the potential to bring billions of dollars into the country and better the economy from what it is now. According to HRM Guide Canada, Canada has an unemployment rate of 7%. This whole new industry could lower that rate by providing thousands of jobs, if Canadians will just let it. The industry would have available jobs in bottling plants, construction of the pipelines, and loading tankers. The small town of Grande Le Pierre, 30 kilometres away from Gisbourne Lake has an unemployment rate of 40%. The whole of Newfoundland and Labrador can use this new industry a s they have the highest rate of unemployment in Canada at 15.3%. This province would be greatly affected by the water schemes as the unemployment rate would no longer be so high, improving the Canadian economy. Revenue from this industry would be going to the government, thus it will lower the high tuition costs in all the participating provinces. These participating provinces would be Newfoundland and Labrador, British Columbia, Manitoba and even Ontario, just to start. Canada owes it to their students, to aid in investing in their futures and the future of this country. The Manitoba-based water diversion scheme alone would generate four billion dollars per year of net profit. This amount of money is equal to approximately half the provinces yearly budget. Dennis Owens says, It is enough money to make Manitoba a have rather than a have-not province related to others Manitoba could now have the potential to become just as industrialized and important as a province such as Ontario. T he whole of Canada would benefit economically from water schemes. Selling water to the United States would be possible, safe and would create numerous economic opportunities, which Canada can not afford to pass up. Canada has access to more fresh water than any other country, which the Canadian citizens will not use. Sharing this water with the United States, and getting something back in return, would be safe to the ecology and Canada will still have enough water for themselves. The water will always be waiting there, however the economic opportunity is one that would have to be taken advantage of now. The United States will not wait forever for Canada to make a decision. The Canadian government needs to act now!

NCB Customer Expectations and Perceptions

Introduction The National Commercial Bank of Saudi Arabia was established in 1953. It was the initial bank in Saudi Arabia. Most of people, who knew about banking, depended solely on it for financial services. The citizens did not know about any other bank, as it was the only one, which existed (Baker 112).Advertising We will write a custom report sample on NCB Customer Expectations and Perceptions specifically for you for only $16.05 $11/page Learn More Currently, this bank is the biggest in whole of Middle East. The latest information gotten about it indicates that it has a paid up capital of US $ 1600 million. Towards the end of 2007, the overall amount of assets that it owned were US $ 55658 million. In the same year of 2007, it managed a net profit of US $ 1610 million. The bank is known for its efforts in delivering quality services to its customers for a long period it has existed in the market. Through leveraging technology, National Commercial B ank of Saudi Arabia is in a position to offer the most modern services among its competitors. It has also tried to maintain the traditions of Saudi Arabia, during its time of offering these services to its customers. It has 266 retail outlets that are committed in offering Islamic banking services. One of its strength is its wide customer base, which is approximately 2 million, which is managed well through effective array of delivery control (Shaw 105). More to its effective services to customers, the National commercial bank of Saudi Arabia has approximately 942 ATMs and 7000point of sale outlets. It initiated the introduction of online-banking services in Saudi Arabia. It managed this, through the usage of credit cards to facilitate the mobile banking that made the services of customers more effective with time. According to the news that were obtained in 2007, more than 85% of the customers banking services were done through alternative delivery channels, which was a sign of the advancement of the National Commercial Bank customer services. This bank is also known by its big space through which it operates its foreign exchange and money market in the whole of Middle East. This effective service of handling foreign exchange has made its customers to be more satisfied as all their needs are` met satisfactorily within its premises. The main areas of the case study are the challenges that the bank faced, of the need to reduce manual processes, time and costs in efforts of giving its clients an online channel for its corporate clients (Shaw 503). The solution of the challenge was the generation of a web-based solution that improved the flexibility and extensibility. The overall benefits that the bank enjoyed were streamlining the operations, improved customer service and reduced total operating costs that the bank incurred initially.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The case study In the year 2003, the National Commercial Bank was working tirelessly towards enhancing its banking services to some of its corporate bodies. This was the time when these corporate bodies, the clients of National Commercial Bank received services from the bank directly (Shaw 612). Through receiving these services directly, the corporate bodies’ clients, had the chance to interact with the bank through its retail outlets, whereby the work of the manual processes increased leading to some key issues that required to be addressed on time. The main channel for corporate clients It was a routine for these corporate clients to report to the bank branches for their normal enquiries and cash transactions. Although it was relying on the PC banking solution, which was a direct transaction to serve few customers, it was hard for the bank to reduce the branch overhead. This was a result of the presence of a huge number of cashiers within one branch, and the i ncreased foreign currency draft request, that were made by the corporate clients (Baker 316). All these transactions required some personnel to handle the manual operations at the branch levels. Most of the time, it was a must for the bank tellers to keep regular interaction with the treasury help desk to inquire and decide on the most favorable exchange rate to be used in settling the corporate clients. Features in incumbent system The use of Personal computer banking services in the branches resulted to limited functionality. The main issue that brought about some controversies was that, the cash management elements for coming up with the best exchange rates to handle the problems of the clients online were not available. The treasury system could not solve the foreign currency issues through online mode. Another major issue that needed some attention was that, some liquidity management elements such as time deposits management were not readily available (Shaw 475). For instance, incase there was a need for SWIFT payments to be made; the corporate client had to visit the bank branch or communicate with relationship manager to give the required authorization by fax. This act was not admirable, as it was resulting to some delays of urgent customer’s requests. Another issue that the bank faced was Non Web-enabled transactions This was a great challenge to both the bank and its customers. One of the major issues that challenged the bank is lack of a bank website, where the clients would access some of the information to solve their problems.Advertising We will write a custom report sample on NCB Customer Expectations and Perceptions specifically for you for only $16.05 $11/page Learn More The absence of a bank web where the clients could visit for some solutions resulted to an increased manual processing for both the bank and its esteemed clients. For instance, the clients from the corporate bodies were forced to prepare thei r payroll sheets in advance by following the specifications that were required by the bank, and then present the sheets to the bank for further processing (Baker 580). This was too much work for customers to handle, as they were expecting all this work done by the bank itself, through the application of the advanced technology. The bank developed a high desire of solving such problems to ensure that their customers were served well and satisfactorily without much struggle. This was also a desire for clients to receive the best form of services from their entrusted bank. Solution overview The National Commercial Bank of Saudi Arabia did an evaluation of how the banking solutions could be found online, and it managed to come up with Infosys as its technology partner that would provide solutions to its problems (Reid 226). Through collaborating with Infosys, there was an introduction of Infosys Finacle web based cash management software, which the bank planned to implement within the n ext one year. The application of this web based cash management software with the help of other competent technologies like J2EE and .NET managed to solve major problems associated with online banking. Through the use of these technologies by the National Commercial Bank, it was possible to eliminate the hardships of travelling by providing anytime, anywhere access to the needed information by both the banks clients and the employees. There were other benefits that the bank enjoyed from the introduction of such technologies like global liquidity management, short term clients investments through the bank, and easier management of international payments such making it to enjoy rich set of functionality (Reid 123). The web based cash management software has a capability of offering multi-channel delivery through both the personal computer and other wireless devices. The application of this solution to the bank branches also ensures reduced Total Cost of Ownership, effective services t o the clients, time saving for clients and the tellers, and quick maintenance for the bank in general. Banks corporate customers Another solution that was worth celebration by the banks clients was that the clients did not have to visit the bank branches for inquiries and other cash transactions like those that they used to do before. The new system gave the clients some opportunities to remotely login by use of a browser, do some inquiries, and later conduct some transactions with National commercial Bank.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The corporate customers still can as well access the liquidity management features through online, and handle some issues like setting up account sweep guidelines, come up with money market deals, and receive an automated reconciliation of the account cash transactions (Reid 201). This exercise allows clients to have access to their account whenever they need it, to ensure their accounts are safe and not tampered with by any stranger. These applications provided for more security of the clients account. Cutting-edge features By Finacle web based cash management software, the national commercial bank treasury is able to obtain the current online exchange rates that would be important while doing foreign exchange transactions with the corporate (Baker 405). It became possible for the corporate clients to receive the latest rate during the cash transactions with the bank. This system also has a capability of allowing the corporate to send their draft requests online. The Finacle system also works with the National Commercial Bank especially the main banking system to ensure the clients requests are processed as quickly as possible. The real time transaction processing Another major improvement was that the corporate could easily send their payroll sheets through the internet a safe connection (Baker 315). Once the banks receive these payroll sheets to confirm whether they are in accordance with their specifications, the bank takes them to the main banking system for further processing. This action saved much time as the corporate used to visit the bank branch to present their payroll sheets for final processing. Through the online services, the bank keeps on updating the corporate about the status of their payroll processes. The benefits Through working hand in hand with Finacle the National Commercial Bank has managed to handle its business challenges, and has successfully met the demands of its clients especially the corporate ones (Reid 98). The introduction o f the online banking services creates a most convenient customer experience and effective services to be enjoyed by both clients and employees. One indication of showing that customers are enjoying the online banking services is through the increased number of the customers preferring online service to other retail outlets. The banks online services act as a virtual branch for the National Commercial Bank thus reducing the overall operating cost of it, due to the decrease of corporate transactions and bank staffs. Moreover, the online services have resulted to rich functionality whereby the workload in every branch is reduced thus streamlining the overall operations. The accessibility of various transactions by the bank from one point became possible thus enabling it to fix the prices of the products and services in the best way. According to the information obtained from the Deputy General Manager of National Commercial Bank, he confessed that the cash management solution made them to take very crucial steps. Such steps included adding business value to their corporate customers, receiving the flexibility and functionalities that would place them in a very competitive edge compared to other global banks (Reid 117). The bank was also in a position to have a real time transaction processing potential and acquired a more business value according to their expectations. The deputy general manager of the bank gave a speech to assure the public how much the bank has benefitted from the Finacle web based cash management solution. There were no doubts that it enjoyed many benefits from this system especially fulfilling the dreams of their clients. Some of the questions that may arise from the above case study are: Questions What were the challenges that were associated with the introduction of Finacle web based cash management solution. Was the cost of installing the system worthy compared to the benefits that the bank enjoyed? Is the bank still looking for more tech nological advancements? Works Cited Baker, Michael. The Marketing Book. Michigan: Butterworth-Heinemann, 2007. Reid, Robert. Hospitality Marketing Management. New York: John Wiley and Sons, 2009. Shaw, John. International Marketing: Strategy and Theory. Michigan: Taylor Francis, 2008. This report on NCB Customer Expectations and Perceptions was written and submitted by user Mina Rosario to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Texas Proposition 12 essays

Texas Proposition 12 essays Bill HJR 3 from the 78th regular session states proposing a constitutional amendment concerning civil lawsuits against doctors and health care providers, and other actions, authorizing the legislature to determine limitations on Bill HJR 3, also known as proposition 12 on the September 2003 ballot was an issue with great intensity on both sides of the spectrum. The premise of the bill was to limit non-economic damages from malpractice and other health care related issues to $250,000. Non-economic damages are also referred to as punitive damages, which at times have seen judgments upwards of ten million dollars. This poses serious problems for physicians attempting to practice medicine in Texas. With lottery sized rewards being thrown out left and right, trial lawyers feel that they can afford to take a shot at many cases, and hope one scores the jackpot. Consequently, malpractice insurance for doctors in this state have risen to phenomenal highs, and have forced doctors to literally abandon certain services, higher risk cases that leave patients with no other alternative, or even abandon their whole practice all together. Physicians have also limited the Medicaid and Medicare that they take, and their acceptance of complicated problems. If things continue like this, then many patients will have to seek care in distant cities. Proposition 12 is important because it instills lost confidence that physicians once had. It allows them to focus on their practice and continue to see patients with all sorts of issues, from minor to major complications without worrying about the severe repercussions of a misjudgment. After all, physicians are here to better ones well-being and ensure that they are in optimal health, despite what the trial lawyers try to spoon feed the public. Because proposition 12 created such a fervor, it produced extremists for and against the issue. Furthermore, the notio ...

Chinua Achebes Things Fall Apart A discussion of Achebes portrayal of women in Igbo society.

Chinua Achebes Things Fall Apart A discussion of Achebes portrayal of women in Igbo society. Chinua Achebe's first novel Things Fall Apart is a story about an Igbo village in the late 1800's, and is one of its important men, Okonkwo. The story analyzes the destruction of African culture when the white man appeared. Achebe writes in a style that is interpretive instead of objective, and reflects the sociocultural organization existing in Africa during that era. Achebe highlights the roles of women in pre-colonial Africa. The female characters in the novel are major figures whose lives are not just affected by the desires of their husbands or fathers; the women reciprocally affect the husband and fathers lives. Igbo society emphasis is put on sex-roles, stereotyping, gender discrimination and the importance of masculinity and violence, which result in the abuse of the female's character.In Igbo society patriarchy rules in every aspect of existence, meaning women are excluded and men are superior. Women were seen as men's property and wives came in multiple numbers.English: Chi nua Achebe speaking at Asbury Hall, Bu...Women were bought and sold into marriage and once she became a man's property she became a little more than an object. The first wife of a man was paid more respect than others illustrated by the palm wine ceremony. Anasi, Nwakibie's [a big man in Umofia] first wife had not arrived and "the others could not drink before her" (14).Women were among one of the highest distinctions for a young man along with yam barns and social titles. Okoye, a friend of Okonkwo's father, qualified for these high distinctions because "he had a large barn full of yams and he had three wives. And now he was going to take the Idemili title, the third highest in the land." (5).The yam symbolizes richness and is a sign of a great man. The women of Igbo provided the workforce...

The Country Overview of The Iceland Essay Example | Topics and Well Written Essays - 2500 words

The Country Overview of The Iceland - Essay Example Transportation: Railways: 0 km. Highways: total: 13,004 km paved: 4,331 km unpaved: 8,673 km (2004). Ports and harbors: Grundartangi, Hafnarfjordur, Reykjavik, Seydhisfjordhur. Airports: 98 (2004 est.) Vegetation: 23,805km (9,191mi) Lakes: 2,757km (1,065mi) Glaciers: 11,922km (4,603mi) Wasteland: 64,538km (24,918mi) Weather: Despite its name and latitude, warm Gulf Streams keep southern Iceland snugger than many central European countries. Summers are pleasant with average July temperatures around 12C (53F). Winters, however, are significantly blunted and while fresh enough to put some rose in the cheeks, it will not be freezing them solid. The higher altitudes and northern coast face early year Arctic winds so are naturally colder. Snow turns to rain around spring but is never too heavy. Climate is cool, temperate and oceanic, influenced by the country's location where the polar front separates air currents of polar and tropical origin. Fluctuations in average annual temperature are more pronounced in Iceland than most other places. In Reykjavik, the average temperature is 11C (52F) in July and -1C (30F) in January. For two to three months in summer there is continuous daylight in Iceland, and early spring and late autumn enjoy long twilights. The really dark period that is three to four hours of daylight lasts from about mid-November until the end of January. Iceland is located on both a geological hot spot caused by a mantle plume, and the Mid-Atlantic Ridge. This combined location means that the island is extremely geologically active, having many volcanoes, notably Hekla, Eldgja, and Eldfell. There are also geysers a word derived from the name of one in Iceland, Geysir. Glaciers: The most distinctive features of... Iceland is located on both a geological hot spot caused by a mantle plume and the Mid-Atlantic Ridge. This combined location means that the island is extremely geologically active, having many volcanoes, notably Hekla, Eldgja, and Eldfell. There are also geysers a word derived from the name of one in Iceland, Geysir. The most distinctive features of Iceland are its glaciers, which cover over 4,500 square miles (11,800 km ²) or 11.5% of the total area of the country. The largest of the glacier caps is Vatna glacier in southeast Iceland with an area of 3,240 square miles (8,400 km ²), equal in size to all the glaciers on the European mainland put together. Avalanches are common in the northwest, north and east, where the steep mountain slopes, covered with deep snow.Iceland is richer in hot springs and high-temperature activity than any other country in the world. Steam vents, mud pools and precipitation of sulfur characterize high-temperature activity. The main high-temperature ar eas are Torfa glacier east of Hekla and Grim's lakes in the Vatna glacier. Hengill near Reykjavik is utilized to provide hot water for space heating in the capital. The widespread availability of geothermal power because of the numerous rivers and waterfalls are harnessed for hydropower. The total power output of the Torfa glacier area is estimated to be equivalent to 1,500 megawatts. Hot springs are found all over Iceland. There are about 250 low-temperature geothermal areas with a total of about 800 hot springs.

Research paper( Violent Games Are Contaminating Childrens Paper

( Violent Games Are Contaminating Childrens Personalities) - Research Paper Example The games are designed in a manner that instills realism to the games and the moment one plays them it gives a natural feeling (Shaffer & Kipp, 2010). Initially, the games were developed for mere entertainment purpose but over time the objective has shifted to include other aspects that are unfavorable to young children who are mostly addicted to these games. For instance, the video game Grand Theft Auto vice city is a mission-based video game that incorporated wrong vices such as violence, crime and prostitution. This indeed is wrong as the games instill wrong traits to the people who play them. But despite the negative vices that comes along the games they also have positive impacts on the gamers as they help them develop a high degree of judgment & problem solving as the games provides them with dilemma situations where critical decision have to be made and which have great impacts on the overall progress of the game (Gunter, 1998; Child Development Institute, 2003). According to psychology, the personalities of human beings tend to vary and thus different people will possess different personality traits depending on certain factors that have influenced the growth of that particular person (Gentile, 2003). Research conducted by Pennsylvania State University indicated that children who play video games are prone to be more hostile if they are less conscientious, less agreeable and easily angered (Shaffer & Kipp, 2010). This group of children is said to be the one that is negatively affected by playing video games. However despite impacting negatively on the said children violent games which are mainly mission based offer the players an opportunity to learn new skills especially rational and critical thinking skills that aid in solving complex problems (Anderson, Gentile & Buckley, 2007). That notwithstanding, video games in general have always been associated with addiction as children and teenagers are perceived to be

Colgate Segmentation Essay Example for Free

Colgate Segmentation Essay Concept of Working Capital Working capital refers to short-term funds, need to meet operating expenses. It refers to the funds; to finance its day-to-day operations. It is concerned with current assets and current liabilities. If a firm can’t maintain a satisfactory level of working capital, it may become insolvent or bankrupt. Broadly there are 2 concepts of working capital, such as: 1. Gross Working Capital (Quantitative Concept) 2. Net working Capital (Qualitative Concept) Both these concepts of working capital have operational significance. The two concepts are not mutually exclusive. The ‘gross concept’ emphasizing the ‘use’ and the ‘net concept’ emphasizes the ‘source’. 1. Gross Working Capital The total current assets are termed as the gross working capital. It is also known as quantitative or circulating capital. It refers to firm’s investment in short term assets such as cash, marketable securities, accounts receivables, prepaid expenses, inventories etc. Significance a. Optimum investment in current assets. -: Inadequate working capital leads to insolvency and excessive will lead to less profitability. Financing of current assets. -: If funds arise it should be invested in short term securities, don’t keep it idle. 2. Net Working Capital The excess of current assets over current liabilities represents net working capital. It may be positive or negative. Net working capital indicates the liquidity of the business. Significance a. Maintaining Liquidity Position-: Current assets help in meeting financial obligations. Generally for every one rupee of current asset there should be one rupee of current liability. b. Extent of long term capital n financing current assets-: If there are Rs 100000 current assets and Rs 75000 current liabilities then NWC is Rs 25000, and it supposed to be financed from long term funds. Efficient management of working capital involves control over the current assets and current liabilities, which are the main components of working capital. 1. Components of current assets: Currents assets are those, can be converted into cash within a year. It consists of cash, marketable securities, inventories, debtors, prepaid expenses. 2. Components of current Liabilities: Current liabilities are those to be paid in a year. It consists of creditors, short-term borrowings, taxes and proposed dividends.   To ensure optimum investment in current assets. †¢ To ensure adequate flow of funds for current operations. †¢ To speed up the flow of funds. †¢ Maintain liquidity and profitability. Maximize shareholders’ wealth possible only when there is sufficient return. †¢ Discharge day-to-day liabilities. †¢ Protect the business from adverse effects in emergencies. †¢ Determines the relevant levels of current assets and their efficient use. To sustain sales activity. Sales don’t convert into cash immediately. It needs time to collection of cash. For maximization profits or minimize working capital cost and maintain balance between liquidity and profitability, we need to maintain a balance in working capital. It should not be excessive or inadequate. Firm should manage adequate working capital to run its business †¢ Excessive working capital means idle funds which earns no profit. †¢ Inadequate working capital disturbs production and weakens the firm’s profitability. Danger of Excessive Working Capital †¢ It results in unnecessary accumulation of inventories, which lead to mishandling like waste, theft and losses. †¢ It is indication of defective credit policy and slack collection period. This leads to higher bad debts that reduce profits. †¢ It makes managerial inefficiency. †¢ Accumulation inventories tend to make speculative profits grow. This type of speculation makes the firm to follow liberal dividend policy and difficult to cope up with in future when the firm is unable to make speculative profits. Danger of Inadequate Working Capital: It declines growth because it’s difficult to undertake profitable projects for non-availability of working capital. †¢ Difficult to implement operating plans and achieve firm’s target. †¢ Difficult to meet day-to-day commitments. †¢ Inefficient utilization of fixed assets. †¢ The firm unable to avail attractive credit opportunities. †¢ Firm loses its reputation. The continuing flow from cash: to suppliers: to inventory: to accounts receivables and back into cash is operating cycle. 1. Operating cycle for manufacturing firm: ` Stock of raw material is held in order to ensure smooth production. Similarly stock of finished goods has to be carried out to meet the demand. 2. Operating Cycle of a Non-manufacturing Firm Non-manufacturing firms are wholesalers, retailers, service firms. They will have the direct conversion of cash into finished goods and into cash.