Writing Is Defined As Fun - 862 Words

A writer to be... In my opinion, writing is defined as fun, a way to be creative and a way to help me clear my mind. It allows me to express my own individuality. Writing may be known as a bore to others who cant seem to find their own writing style, but if you have that gift of writing it comes easy no matter what subject or topic. That s where my liking for writing comes in. I ve always been able to take a topic and write about it without any problems. Once my brain gets going, its hard to stop. Several years ago, I found my passion for writing. I was sitting in English class, the lights dimmed and everyone starring into the teachers soul as she explained an writing assignment we had to do. She told us to make up a story about what we thought the future was going to be like when we became adults. At first, the topic didn’t interest me. I felt as if the future was going to be the same as it was at that time. I didn’t know what to write. It was way too cold in the class and the scents of pumpkin pie and sweaty gym socks surrounding the air didn’t seem to help the situation much either. After a few minutes of thinking, so many ideas popped in my head, I didn’t know how to control it. I started jotting down everything that came to mind, then I went back to organize it so I could start writing. Once my teacher seen what I was doing, she asked Who taught you this technique? I told her it s just something I ve always done, she then told me that s a good technique toShow MoreRelatedWriting Is Defined As Fun858 Words   |  4 Pages In my opinion, writing is defined as fun, a way to be creative and a way to help me clear my mind. It allows me to express my own individuality. Writing may be known as a bore to others who cant seem to find their own writing style, but if you have that gift of writing it comes easy no matter what subject or topic. That s where my liking for writing comes in. I ve always been able to take a topic and write about it without any problems. Once my brain gets going, its hard to stop. Several yearsRead MoreAnalysis of Mark Edmundsons Who Are We and What Are We Doing Here1230 Words   |  5 Pagesshould be. Students nowadays are focused on having fun. They think college is a place of freedom where they can just do as they please and not care about their schooling, â€Å"Life is at parties, at clubs, in music, with friends, in sports† (Edmundson). Students have gained independence and feel like they must do crazy things. Or perhaps have been controlled so much that they feel the need to rebel against society. People are focusing on having fun rather than getting good grades and getting an educationRead MoreHow I Can Learn English Essay1378 Words   |  6 PagesEnglish as much as I was in Hong Kong because I understood that I have to learned English, I wanted to survived in the U.S. However, in the beginning, I was scared to talk with people in English because I was afraid of others would laugh and make fun with me about my accent. Although, I understood if I wanted to live and study in the U.S, I had to put more effort on studying the language. On the other hand, I always hang out with those students who speak Cantonese, which is my native language, inRead MoreIs Education Means A Better Than Your Peers?991 Words   |  4 PagesTo be educated: commonly defined as being smarter than your peers. Although most people would say the more educated you are, the better you are, it is often used as a tool to make fun of and discourage those who took the time to seek intelligence. For centuries this has been the case. From biblical times, to mid-evil times, to even modern times, it has been constantly argued what it means to be educated. Some believe that claiming education means hold certification. Others think that it means beingRead MoreMarketing Strategy : An Essential Part Of Your Business Essay975 Words   |  4 Pagesstreamline your social media strategy, since you won’t have to widely target everyone, you can specifically targ et the few people that can grow your brand. 3. PowToon PowToon lets you create custom cartoons for your website or blog. The cartoons add some fun and personality to your content marketing strategy. Used by Starbucks, Cisco, and Coca-Cola, the videos are especially helpful if you need to demo a product, initiate new subscribers to your site, or explain a service on your page. 4. Everyone SocialRead MoreThe English Language749 Words   |  3 Pagesâ€Å"invention†. However the word is simply defined as; a new device, method of process developed from study and experimentation. An invention is just a mental fabrication; it’s a falsehood (Dictionary.com 2013).1 Although in the essays, â€Å"Why I write† by Joan Didion, â€Å"Life in a new Language† by Eva Hoffman, and â€Å"Basmati Rice: An Essay about Words† by Audrey Thomas, each author has their own view on the English language, how they each began inventing their own writing styles, and also their reasons for whyRead More How I Invented Writing Essay1316 Words   |  6 Pages Writing is, at its core, a technology. It allows us to take our thoughts and arrange them spatially in the physical world. Living in a culture where this practice is an every day occurrence, the physical nature of writing fluidly becomes part of our consciousness. This is what the class project exposed for me. Having to â€Å"invent† a writing technology forced me to see the importance of being able to easily put down my thoughts and work with them visually. At this very momentRead MoreLetter From Anger : I Made It !1443 Words   |  6 PagesFrom Loathing to Confidence: I Made It! I hate English classes. This has always been my attitude, always negative. In my mind English and writing have always been my worst subjects. I think the combination of struggling and having pressure to get good grades ruined writing for me. I am not sure where my hatred started whether it was from yelling matches with my mom at two in the morning as she edited yet another draft and pointed out mistakes or if it was because I never learned correct mechanicsRead MoreReading Is An Activity With A Purpose1476 Words   |  6 PagesIntroduction Reading is an activity with a purpose. A person may read in order to gain information or verify existing knowledge, or in order to critique a writer s ideas or writing style. A person may also read for enjoyment, or to enhance knowledge of the language being read. The purpose(s) for reading guide the reader s selection of texts (NLRC, 2005, 2010). Reading research shows that good readers: †¢ Read extensively †¢ Integrate information in the text with existing knowledge †¢ Have a flexibleRead MoreWriting Skills Part 2968 Words   |  4 PagesStudent ID: 21542212 Exam: 986041RR - WRITING SKILLS PART 2 When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. Which

Communication Is Intentional Or Unintentional Essay

Interpersonal Relationships First, communication is unavoidable. We communicate for many reasons to reach practical goals. Most communication is intentional. Communication can be unintentional too through the use of nonverbal communication and word choices. An important principle of communication is people are not mind readers†¦people judge you by your behavior and not your intent† (King, 2000). Regardless of whether communication is intentional or unintentional there are strategies for avoiding and managing interpersonal conflicts. King states, â€Å"Because of the variables involved, even simple requests are extremely complex† (King, 2000). Barriers to Effective Interpersonal Interaction Effective communication is a shared understanding. There are key principles to effective communication. These principles include the ideas that: communication in unavoidable, communication is irreversible, communication is complicated, communication can be taken in context, and timing, location and misconceptions can make communication challenging. When we communicate intentionally it is to share information. Effective communication happens when all parties involved have a shared understanding of what is being spoken about. Effective communication is not as simple as we think though and it can be very difficult to understand at times. The principles of effective communications may be simple to understand but can take a lifetime to master to avoid misconceptions. Once your communication isShow MoreRelatedThe Intentional and Unintentional Features of Communication Essay563 Words   |  3 PagesCommunication as intentional and unintention al Introduction John (2008) defines communication as an act whereby one person gives to, or receives from another individual, information about his or her needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional, may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other models. This paper discusses the intentional and unintentionalRead MorePlagiarism Essay957 Words   |  4 Pagesinformed you can easily fall victim to this crime. The most common types of plagiarism are intentional and unintentional plagiarism. Currently both of these types are punished in the same ways such as expulsion or suspension in academic groups. There has been many debate whether both should be punished the same, however it is fair to say that unintentional plagiarism is like stated in the actual word UNINTENTIONAL, this means the student did not want to commit a crime therefore they should not be punishedRead MoreExpository Speech : Stop Talking Essay1544 Words   |  7 Pagesthe ideas of others. This can be accomplished with good concentration, removing distractions, and focusing. Wait and Watch for Non†Verbal Communication We listen with our eyes in addition to the ears. Gestures, facial expressions, and eye-movements are all be important. Watch for and pick up additional information being transmitted via nonverbal communication. FEEDBACK Evaluative feedback is the judgment of the writer and their credibility. We do not know when or where your content will beRead MoreIs Cyberbullying Constitutes Any Action Or Word?936 Words   |  4 PagesDefinition: Cyberbullying constitutes any action or word, which may be public or private, direct or indirect, intentional or unintentional, that can harm or offend an individual or a group through electronic means in any form – physical, emotional, and psychological. These harms include, and are not limited to harassment, threat, attack, and comments which can sabotage or disturb an individual’s daily life. These electronic means include, but are not limited to email, social media, forum, cellularRead MoreAssignment 5.1: Course Project—Interactional Dimensions of Conflict781 Words   |  4 Pagesto carry out the tasks of everyday life. This was a great way to conclude that there are two forms of positioning—intentional and unintentional. Finally, I had to go back to the article of the resulting conflict between the Lockheed-Martin Corporation and the Pentagon to determine whether the conflict was intentional or unintentional. It was determined that the conflict was intentional because the Lockheed-Martin Corporation was a contractor of the Pentagon, who had received orders to refer to theRead MoreCauses of Understaffing at the Online University1035 Words   |  4 Pagesefficiently and effectively. There are many reasons tha t lead to understaffing in any organization. It can be intentional or unintentional. Intentional is when the company institutes cost-cutting measures and unintentional can be due to hidden factors within the organization. Intentional understaffing is harder to control and rectify than unintentional understaffing since when it is intentional, it is planned for in the strategic plan of the organization. The problems that are brought about by understaffingRead MoreNonhuman Primate Communication That Humans Learn Their Language Socially1528 Words   |  7 Pages One form of nonhuman primate communication that occurs in the wild is through noises (Zuberbuhler 6). Most primates have species specific sounds for certain situations (Zuberbuhler 6). For example, vervet monkeys have different alarm calls for different types of predators (Zuberbuhler 10). The listeners of these calls respond to each call differently, protecting themselves from specific predators (Zuberbuhler 10). This means th at they are not just reacting to another monkey being scared, but theyRead MoreCyber Security And Cyber Attacks1503 Words   |  7 Pagesorganizations information security. A vast majority of organizations rely on computers and the internet to store its data. Cyber attacks can take place in a variety of industries that might the general population does not realize such as cellular communication services, airplane navigation systems, and medical record security. All of these organizations are in highly diverse industries but need to be aware of cyber threats that could affect their specific industry. The best way for an organization toRead MoreWhat Are Elder Abuse?896 Words   |  4 Pagesin an older person. Abuse can take many forms such as withholding food, water, care, medication and shelter, isolating and restraining the elderly without medical reasons, it can also be intentional or unintentional neglect. 2. What are the recognized types of elder abuse? a. Physical abuse – use of intentional force that cause pain, injury or impairement in the elderly. It includes but not limited to violence such as beating, striking, slapping, pushing, kicking and pinching. It also includes inappropriateRead MoreIn Today’S Technologically Advanced Society, Data Is An1682 Words   |  7 Pagestechnology has great significance. Protecting the confidential and sensitive data stored within a repository is the sole purpose of database security. Database security is the mechanisms that protects databases against intentional or accidental threats. Any situation or event, whether intentional or accidental, that may adversely affect a system and/or the organization must be considered as a threat. Database security is implemented within organizations to ensure that all essential data is protected. The

Corporate Reporting Case Study Diageo plc Essay Example For Students

Corporate Reporting Case Study Diageo plc Essay Outline1 1. Information about the company2 2. Competitive Environment3 1i?†° Industry Competition Overview4 2i?†° Globalisation and Mergers A ; Acquisitions5 3i?†° Legislation and Economic Environment6 Evaluation of Financial Statements7 1. Ratio Analysis8 1 ) Overall Profitability Assessment9 2 ) Operating Management Assessment10 3 ) Financial Management Assessment11 4 ) Investing Ratio Assessment12 5 ) Liquidity Ratio Assessment13 6 ) Financial Strength Assessment14 2. Horizontal Analysis15 3. Vertical Analysis16 2 ) Capital Structure analysis17 Decision18 Section B19 2. Remuneration Committee20 Ownership Structure21 Audited account Independence22 Audit Committee23 Voluntary Disclosures 1. Information about the company Diageo, formed in 1997, from the amalgamation of Guinness PLC and Grand Metropolitan PLC, is a transnational company, trading in over 180 markets across the universe, listed on both the London Stock Exchange ( DGE ) and the New York Stock Exchange ( DEO ) . It is the universe s prima premium drinks concern. The company containes 24,270 employees worldwide with offices in around 80 states. Company takes up approximately 30 % planetary markets, and holds universe s top 20 trade names include: Smirnoff, Johnnie Walker, Captain Morgan, Baileys, J A ; B, Jose Cuervo, Tanqueray, Guinness, Crown Royal, Beaulieu Vineyard and Sterling Vineyards vinos, and Bushmills Irish whisky. Cardinal Numberss for financial twelvemonth stoping June, 2009: Gross saless: $ 15,378.0M One twelvemonth growing: ( 4.7 % ) Net income: $ 2,849.0M Income growing: ( 10.6 % ) Beginning: Answers ( 2009 ) Diageo: Information from replies 2. Competitive Environment 1i?†° Industry Competition Overview The universe drink market is loosely exploited in the mature markets. Among the rivals, the most successful are Pernod Ricard Group, Majestic Wine PLC, Bacardi A ; Company Limited, Brown-Forman Corporation, Fortune Brands, Inc. Diageo PLC holds 30 per cent of the entire drink market. 2i?†° Globalisation and Mergers A ; Acquisitions There is a rapid growing in international trade and increasing globalization of Liquor industry. The chief competitions focus on the emerging market and spread outing the planetary market portions by amalgamations and acquisitions. Pernod Ricard and Fortune Brands jointly buyout the universe s 2nd largest liquors company Doumic in UK. In order to precedence over its rivals, the company speeds up amalgamations and acquisitions internationally. 3i?†° Legislation and Economic Environment The EU will ordain statute law to uniform the criterions for wine production. Regulation is besides quickly developing in emerging markets, which may intensify some troubles in taking up the emerging market. Economic crisis had a deep impact on the form of intoxicant fabrication competition, which had a varied impact on Diageo s trade name public presentation and parts of the trade names gross revenues fell significantly. Evaluation of Financial Statements The Corporation s fiscal place is evaluated by ratio analysis, horizontal analysis and perpendicular analysis, which is measured by utilizing FinSAS, harmonizing to the Income Statements and Balance Sheets, compared with another biggest drink manufacture-Majestic Wine PLC. 1. Ratio Analysis The value of the house is determined by its profitableness and growing. In ratio analysis, I compare the ratios of the Diageo PLC for six old ages and compare the group with another house in the same industry. The aim of ratio analysis sing to the house s fiscal place is to measure the effectual of the group s policies in operating direction, investing direction, fiscal scheme and dividend policy. 1 ) Overall Profitability Assessment The ROE is a comprehensive index of house s public presentation. The ROE of Diageo shows a important addition from 2007 to 2009, from 33.94 % to 43.78 % , much higher than its rival in UK. On norm over long periods, big publically traded houses in the U.S. generate ROE in the scope of 11 to 13 per centum. The ROE of Diageo is stable at a comparatively high degree about 30 % to 50 % . That indicates the directors are suited performed in using the financess invested by the house s stockholders to bring forth returns. Diageo s schemes of concentrating on net income betterment, such as acquisitions, reconstituting enterprises and aiming at emerging markets, additions positive consequences. 2 ) Operating Management Assessment The Gross Profit Ratio and EBIT Margin show the profitableness of company s operating activities. The figures above show that the Gross Profit Ratio and EBIT Margin of Diageo are much higher than Majestic Wine plc, bespeaking a earnestly competition in the economic state of affairs. Both ratios of Diageo decreased somewhat to 1.59 % and 1.28 % signifier 2008 to 2009 due to the impact of economic downswing, particularly in Spain and Ireland. However, both ratios maintained at a comparatively high degree, formalizing the company s declared purpose in its one-year study of concentrating on profitableness. Diageo has grown net incomes in the mature markets and made great progresss in emerging markets by volume, by net gross revenues, and by operating net income. 3 ) Financial Management Assessment The degree of Diageo s fiscal purchase is s somewhat higher than Majestic s and increased significantly from 2006 to 2009. Fiscal purchase increases the Group s ROE every bit long as the cost of the liabilities is less than the return from puting these financess. What we should pay attending to is that while a house s stockholders can potentially profit from fiscal purchase, it can besides increase their hazard. 4 ) Investing Ratio Assessment The DPS of Diageo increased steadily from 2005 to 2009, which reflects a stable dividend policy. Reported EPS growing additions by 10 % in the recession period. The net incomes come from two reconstituting enterprises in the twelvemonth, which generate ?160 million of cost decreases in all, and from the Exchange rate motions which increase net gross revenues by ?1,095 million. 5 ) Liquidity Ratio Assessment The above ratios effort to mensurate the house s ability to refund its current liabilities, i.e. short-run solvency. The Current Ratio of Diageo is significantly outstanding than Majestic s, approximately 1.35 on norm. Diageo s stock list state of affairs signifier 2005 to 2009 was uncomfortable when measured in footings of speedy ratio, which is excessively low ( less than 1 ) for mill industry. Diageo paid less attending to better the stock list direction. JOHANN SEBASTIAN BACH Essay ThesisTypes of Main Executive Compensation: Base Salary: The Committee takes base wage into the consideration of the value created by single, public presentation and the external market informations. Annual Bonus: Incentives twelvemonth on twelvemonth bringing of short term public presentation ends. Cash fillips were earned by other senior directors for accomplishing relevant public presentation marks for the fiscal twelvemonth. Share Options: Incentives three-year net incomes growing above a minimal threshold. Provides focal point on increasing Diageo s portion monetary value over the medium to longer term, nevertheless, may increase the manipulating of accounting net incomes. Performance portion awards: Provides focus on presenting superior returns to stockholders. Pension: Provides competitory post-retirement benefits. Long Term Incentive Plan ( LTIP ) : These awards vest three old ages after grant and are capable to fulfilling the appropriate public presentation standards over the relevant three twelvemonth public presentation period. This policy can forestall director concentrating on pull stringsing short-run earning. Ownership Structure Diageo Plc is incorporated as a populace limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO. The Ownership Structure of Diageo PLC is classified into Block-Holders Ownership. Capital Group Companies, Inc. are the lone major stockholders, with 123 million ordinary portions ( 4.01 % of the issued ordinary portion capital ) and no different vote rights. No other major stockholders are listed in Diageo s Annual Report. Audited account Independence 1. The audit study sentiment The fiscal statements give the aim and just description of the Group s personal businesss at 30 June 2009 and its net income for the twelvemonth so ended. The statements have been prepared conformity with IFRS. The statements have been prepared conformity with the demands of the Companies Act 2006 and Article 4 of the IAS Regulation. 2. Assurance The independent hearer provides a positive confidence. It gives the audit sentiments that the fiscal statements run into the demand of IFRS, Companies Act and IAS Regulation. The mentioned above can better the independency of external auditing. 3. Non-audit services The group has a policy on the usage of the external hearer for non-audit services, which is reviewed yearly, most late in June 2009. These pre-approved non-audit service classs may be summarized as follows: Accounting advice, employee benefit program audits, and audit. or other attestation services, non otherwise prohibited ; due diligence and other support in regard of acquisitions, disposals, preparation and other concern enterprises ; and Certain specified revenue enhancement services, including revenue enhancement conformity, revenue enhancement planning and related execution advice in relation to acquisitions, disposals and other reorganisations. All the non-audit services are under the supervising of audit commission which avoids the involvement struggle while audit and non-audit services are provided by external group audit at the same time. Audit Committee 1. The chief characteristics and features Composition: Entirely Independent Non-Executive Directors. Assurance: Fiscal coverage is evaluated by the Audit Committee. Background of commission members: The corporate requires at least one commission member is a fiscal expert. The term of office: The term of office of members should non be excessively long, by and large 3 old ages. 2. The function in heightening the credibleness of the published information The audit commission takes the undermentioned duties: Monitor internal control and hazard direction throughout the Group. Review the objectiveness of the interim and one-year fiscal statements including a reappraisal of the important fiscal coverage judgements contained in them, before entry to the full board. Monitor the effectivity of the planetary audit and hazard map. Critically reexamine the group s policies and patterns refering concern behavior and moralss. Monitor the company s relationship with the external hearer, including its independency and direction s response to any major external audit recommendations. Harmonizing to the mentioned above, audit commission can supervise the cardinal fiscal and operational hazardous countries, review the equity and effectivity of internal control system, and inadvertence of external audit and internal audit on the execution of the recommendations of internal control through the internal audit maps. 3. The function in heightening the independency of the external hearer In reexamining the independency of the external hearer, the audit commission considered a figure of factors. These include: the standing, experience and term of office of the external audit manager ; the nature and degree of services provided by the external hearer ; and verification from the external hearer. The audit commission established the policy to reenforce the independency of external hearers. The proviso of any service must be approved by the audit commission. The fees generated from non-audit services are under the supervising of audit commission. Consulting work can non be performed for audit clients. Voluntary Disclosures 1. The rating of voluntary revelation Environmental revelation The Company s Environmental Statement provides a elaborate description of environmental policy sing to the betterment in environmental public presentation, energy and nursery gases, Water direction, Brands, packaging and invention, Supply concatenation, Research and transportation of engineering, Hazardous substances, and Emergency response. Social revelation Diageo PLC makes a existent part to making a positive function for intoxicant in society, minimising the injury from abuse and advancing the societal benefits of responsible imbibing. The company s investment in employee development increases the capableness of its work force, creates value and spreads wealth through the community. The company sets some policies about safety at work, employees wellness, employees capableness and development. Ethical revelation The spirits has a negative impact on people s wellness, and the Diageo non merely focuses on the markets spread outing but besides give a positive counsel to the populace. 2. Three chief possible impacts The Company contributes to the wider community through their engagement in corporate citizenship, volunteering and charitable activities, which gain positive impact on corporate repute. One of the most important impacts of its concern on local economic systems is to supply employment. The occupational wellness and safety of employees is a high precedence, which enhances the motive and public presentation of employees.

Asymmetric Information for Quality Uncertainty - MyAssignmenthelp.com

Question: Discuss about theAsymmetric Informationfor Quality Uncertainty. Answer: The Actual Problem The marketplace has goods of different quality. There are those products of high quality while others are of poor quality. Usually, the owners or the sellers of commodities have more information concerning the quality of goods they possess than the potential buyers. The potential purchasers are also aware that the vendors understand more about the quality of the product than they do. This information asymmetry results in the problem of quality uncertainty that significantly impedes market equilibrium and hence the market failure. The article makes use of used cars to demonstrate how the asymmetric information causes market failure. Since many critical mechanical parts and other components are concealed from the view and not easily reachable for scrutiny, it becomes difficult for the potential buyer of a used car to establish quality until after the acquisition. Thus, the purchasers best presumption is that the car is of average quality and will be prepared to pay the price of an average quality car. This situation indicates that the seller of never-abused, watchfully preserved and excellent used car will not find a sufficiently high price to make the selling of his or her car worthwhile(Akerlof, 1970). Such owners will withdraw their cars from the market thus reducing the average quality of automobiles in the marketplace making the purchasers to alter downward their outlook for any used vehicle. As a result, market failure takes place since there are sellers of high-quality vehicles who value their cars most in that they cannot give them out at a lower price. Both the owners and the buyers could benefit from the trade, but, regrettably, the purchasers lack of information hinders this reciprocally beneficial trade from happening. Asymmetric Information Asymmetric Information refers to a scenario where one party to market dealing has more material information compared to the other party(Arnold, 2013). This situation often manifest when the seller of a service or good possesses greater knowledge than the consumer. However, it is also possible that the consumer may have more information than the owner of a product. Therefore, asymmetric information exists due to information failure in some business or economic transactions. Several market transactions exist that avail a favorable environment for the existence of asymmetric information in the society. As a result, it becomes difficult for one to eliminate asymmetric information completely. For instance, the adverse selection that is often encountered in health insurance market is a result of information failure. The purchaser of health insurance cover comprehends more about his or her health than the insurance firms. Those individuals with concealed severe health issues have more incentive to take a medical insurance cover(Case, Fair, Oster, 2014). By doing so, they pass the burden to the insurance companies who are unable to determine the condition of their health precisely due to information failure. Moreover, the adverse selection resulting from information failure is also present in credit markets. The information uncertainty makes it difficult for the lending institutions to discern between the bad and good credit risks. Since it is only the borrower who knows whether or not he or she will repay the debt, the borrowers always take this advantage to rob the credit granting institutions. The Costs of Dishonesty The costs of dishonesty are those expenses that result from the misrepresentation of information in a market transaction either by the seller or the consumer. The consequence of such behavior does not only affect the parties to the economic transaction but the entire society(McTaggart, Findlay, Parkin, 2015). One of the costs of dishonesty in a transaction is that those legitimate businesses are eliminated from the market by dishonest dealings. There could be potential consumers of high-quality commodities and potential sellers of such products in the market. However, the presence of vendors who wish to sell a product of poor quality as a product of high quality distorts the expectation of buyers concerning goods in the market and therefore reduces their willingness to pay a high price for even good products. The owners of high-quality goods will withdraw them from the market and marketplace becomes dominated by products of poor quality(Akerlof, 1970). This situation demonstrates ma rket failure. A higher price is also another cost of dishonesty in a transaction. For example, the unhealthy individuals have higher tendencies of taking health insurance cover thus increasing the proportion of unhealthy persons in the pool of insured people. Since the unhealthy individuals often lie about their health conditions, the prices of the insurance policies reflect the overheads of sicker than the average consumers. In a nutshell, the prices of the policies will be higher to the extent that the healthy ones are discouraged from purchasing the insurance and even others drop the health cover because of their low risk of illness. This situation will increase the number of unhealthy individuals in the community as those who opt out the health insurance are likely to have substandard care when they fall sick. Therefore, it reaches a point where most individuals who take health cover are unhealthy. The insurance will now become exceedingly expensive, and in the extreme, the insurance enterpris es may discontinue selling the insurance. Furthermore, the entire economy is affected adversely by dishonesty in market transactions. For example, the inability to distinguish between the low and high-risk borrowers makes the lending institutions to hike the interest rates(Arnold, 2013). The interest rates are also driven up by the high demand for credit from low-quality borrowers. Therefore, the high costs of borrowing discourage potential high-quality borrowers a scenario that may reduce investments and consumption in the economy. Role of Insurance Uncertainty about the quality of the products purchased is a major issue in a market characterized by information failure. The purchasers often have concerns that the asset may cause them more money after the acquisition. However, in the presence of institutions that counteract the impact of quality uncertainty, then the adverse effects of information failure for consumer durables can be minimized. For example, the guarantees make the seller incur the expenses of repairing the purchased good for a specified period and thus eliminating the issue of quality uncertainty from the consumer. Bibliography Akerlof, G. A. (1970). Critically Review the paper entitled The Market for "Lemons": Quality Uncertainty and the Market Mechanism . The Quarterly Journal of Economics , 488-500. Arnold, R. A. (2013). Economics. Mason, Ohio: South-Western. Case, K. E., Fair, R. C., Oster, S. M. (2014). Principles of economics. Harlow, England: Pearson. McTaggart, D., Findlay, C. C., Parkin, M. (2015). Economics. Frenchs Forest, N.S.W: Pearson.