Business

I love Most ........................EVEREST FACTS

2009-10-31T01:37:00.000-07:00

Everest was formed about 60 million years ago
Elevation:
29,035 (8850m)-found to be 6' higher in 1999
Name in Nepal:
Sagarmatha (means: goddess of the sky)
In Tibet:
Chomolungma: (means: mother goddess of the universe)
Named after:
Sir George Everest in 1865 ,the British surveyor-general of India. Once known as Peak 15
Location:
Latitude 27° 59' N.....Longitude 86° 56' E It's summit ridge seperates Nepal and Tibet
First Ascent:
May 29,1953 by Sir Edmund Hillary, NZ and Tenzing Norgay, NP, via the South Col Route
First Solo Ascent:
Aug. 20,1980, Reinhold Messner, IT, via the NE Ridge to North Face
First winter Ascent:
Feb. 17,1980 -L.Cichy and K. Wielicki, POL
First Ascent by an American:
May 1,1963, James Whittaker, via the South-Col
Mt. Everest rises a few milimeters each year due to geological forces
Everest Name:
Sir George Everest was the first person to record the height and location of Mt. Everest, this is where Mt."Everest" got its name from(In american language)
First Ascent by a Woman:
May 16,1975, Junko Tabei, JAP, via the South-Col
First Ascent by an American Woman:
Sep.29,1988, Stacey Allison, Portland, OR via the South-East Ridge
First Oxygenless Ascent:
May 8, 1978- Reinhold Messner, IT, and Peter Habeler, AUT, via the South-East Ridge
First woman to reach the summit of Mount Everest from both north & south sides:
Cathy O'Dowd (S.A.) South May 25,1996/North '99
Fastest Ascent from South:
Babu Chhiri Sherpa 34, NP-16 hours and 56 minutes (5-21-2000)
Fastest Ascent (north side):
Hans Kammerlander (IT) May,24,1996, via the standard North Col Ridge Route, 16 hours 45 minutes from base camp
Youngest person:
Temba Tsheri (NP) 15 on May,22,2001
Oldest Person:
Sherman Bull May,25,2001 -64 yrs
First Legally Blind Person:
Erik Weihenmeyer May,25,2001
Most Ascents:
Eleven, 24th May 2000 Appa Sherpa became the first person to climb Everest 11 times-Ten, Ang Rita Sherpa, Babu Chiri Sherpa all ascents were oxygen-less.
Best and Worst Years on Everest:
1993, 129 summitted and eight died (a ratio of 16:1); in 1996, 98 summitted and 15 died (a ratio of 6½:1)
Highest cause cause of death:
Avalanches-about a (2:1) ratio over falls
Country with most deaths on mountain:
Nepal-46
Most dangerous area on mountain:
Khumbu Ice Fall-19 deaths
First ski descent:
Davo Karnicar (Slovenia) 10-7-2000
Last year without ascent:
1974
Last year without ascent:
1977
Corpses remaining on Everest:
about 120
Longest stay on top:
Babu Chiri Sherpa stayed at the summit full 21 hours and a half
Largest team:
In 1975, China tackled Everest with a 410-member team.
Fastest descent:
In 1988, Jean-Marc Boivin of France descended from the top in just 11 minutes, paragliding.
Only climber to climb all 4 sides of Everest:
Kushang Sherpa, now an instructor with Himlayan Mountaineering Institute
First person to hike from sea level to summit, no oxygen.:
11th May 1990,Tim Macartney-Snape, Australian
Largest number to reach the top in one day:
40, on May 10, 1993
First person to summit Everest twice:
Nawang Gombu-Nepal(once with Whitaker in '63,and again two years later in '65)Gombu now works for the Himalayan mountaineering institute

Collection Photo of Nepal

2009-10-31T00:30:00.000-07:00

Tribhuvan University

2009-10-31T00:09:00.000-07:00

Introduction

Set up in 1959, Tribhuvan University (TU) is a pioneering institution of higher education in Nepal. Named after the late King Tribhuvan, TU is situated in Kirtipur, a small ancient town located five kilometers away from downtown Kathmandu. Following the recent second democratic movement Prime Minister of Nepal has become the Chancellor of the University while Minister of Education is the Pro-Chancellor. Vice Chancellor is the principal executive of the university, who is assisted by Rector in academic programs and Registrar in financial management and general administration. Tribhuvan University, a non-profit autonomous institution, is financed mainly by the Government of Nepal.

Objectives of Tribhuvan University:

� To produce skilled manpower essential for the overall development of Nepal;

� To preserve and develop historical and cultural heritage of the nation;

� To accumulate, advance and disseminate knowledge; and

� To encourage and promote research in arts, science, medicine, engineering, agriculture, management and education as well as in the vocational fields.

Tribhuvan University has five decision-making bodies:
University Council: is the supreme decision-making body on policies, budget, and rules and regulations for running the university.
Executive Council: implements operational decisions. It makes decisions on grants, affiliation to private campuses, and appointments of university officials.
Academic Council: makes decisions on policies and practices regarding curricula, teaching, examinations and research.
Research Coordination Council: formulates policies on TU research activities, approves guidelines for researchers and coordinates the functions of university level research organizations. Research Division is the secretariat of the council which publishes Tribhuvan University Journal, Research Bulletin and Statistical Bulletin. Besides, it conducts mini-researches by TU teachers as well.
Planning Council: has an advisory role of preparing plans (long and short-term) developing annual programs and evaluating program implementation.

Academic Programs:
During its 49 years long journey, the state owned university has expanded its programs in different disciplines. There are five technical institutes and four general faculties, which offer 300 courses at certificate, 1079 courses at bachelors and 1000 courses at master?s levels. Currently, the total courses offered by the university number more than 2400. Both technical institutes and general faculties offer Ph.D. programs in different disciplines.

Prior to 1980, TU offered the courses through its constituent campuses only. With the increasing number of students interested in joining the Tribhuvan University, there was a necessity of establishing colleges in the private sector because the constituent campuses of the university alone could not cater to the demand of the nation. So from 1979�80 onward TU started providing affiliation to private colleges to conduct various programs at different levels. 561 private colleges, spread all over the country, have so far received TU affiliations.

In the academic session (2008-09) there are altogether 2, 90,833 students enrolled at the various levels of TU academic programs. The majority of the students�� (59% - �1, 71,592) belongs to its 60 constituent campuses and 37 central departments while the remaining (41% - 1, 19,241) study at the 561 affiliated colleges. It shows that population of students in constituent campuses is very high. This is because of the low tuition fees and easy access.
Tribhuvan University has 7,049 teaching faculty members and 5607 non-teaching staffs including support staff in its constituent campuses.

Gold, Silver, & Precious Stones

2009-09-04T02:13:00.000-07:00

The Bible has quite a bit to say about gold, silver, and precious stones, and the Bible always assumes that these are items of value and to be valued by men. Yet, modern Christians sometimes feel strange about such things. After all, the Bible also speaks against placing trust in money and precious things.

My purpose in this essay is to investigate briefly the Biblical view of gold, silver, and precious stones. The Bible has a whole philosophy about these things, a philosophy that is not primarily economic but aesthetic, not oriented primarily toward scarcity but toward beauty. There is a reason for this, and it is important for a Christian view of economics, as we shall see.

Why Do Men Like Gold?

That is the question that comes before us first of all. Non-Christian “gold bug” economists really cannot give an answer to this question. They may say either of two things. They may say, “Gold is intrinsically valuable.” But that is nonsense. What is meant by “intrinsic value?” The very notion of value implies a subjective evaluation. Nothing has value in itself (except God, whom the humanist excludes from his thinking). Things are always valuable to somebody. Thus, non-Christian thinkers cannot say that gold (etc.) is intrinsically valuable.

The second answer is: “Well, for some reason most people and cultures have liked gold.” If you think about it, though, this is not an adequate answer either. It simply restates the question. (Why do men like gold? Because for some reason they do. Well, as we just asked, what is the reason?) Generally, the question is sidestepped. Lecturers on the virtues of gold say that gold is easily portable, divisible, and does not rust or tarnish. This sets it apart from other items of value. All very true, but why do men value it? Christian economists don’t always have the right answer either. Some go with the “objective” value approach, and say that gold is intrinsically valuable because God made it so. We have to say again, however, “what does this mean?” Especially from a Christian point of view, we ought not to be saying that things have value in themselves. Rather, they have value because they are valuable to someone, and for the Christian that someone is God Himself. But since this is the correct position, we must return to it after looking at one more error.

Other Christian economists go simply with the “subjective” value approach. People have valued gold, they say, because they are materialistic, and prize mere carnal, earthly, material objects that are really of no value. “Why is gold better than pine bark?” they ask. “It is all destined for the final conflagration.” For some reason, men prize gold, and that reason is that they are sinners, materialists. Such an approach, however, does not do justice to the high view of gold found in the Bible.

What is the bottom line here? We have to say that the subjectivists have the stronger case, at least initially. Nothing (except God) has value in itself (and even in God, each of the Persons values the other two). All value is “imputed.” Men prize gold because they impute value to it. Men also prize paper money, because they impute value to it as well. (Next time somebody says that paper dollars are worthless, offer to trade him one copper penny for each of his paper dollars. Think he’ll take you up on it?)

What makes gold valuable as money is the same thing that makes paper dollars valuable as money. It is that the community at large commonly regards them as valuable, and thus they can be exchanged for goods and services. (It is best to think of paper dollars as minute shares of stock in the credibility of the U. S. government. Ultimately, that is why they are valued.) Thus, neither gold nor paper has intrinsic value. Each has value imputed to it by men, and on a general social level. The community at large does not particularly prize a set of phonograph recordings of Olivier Messiaen playing his own organ works at the Church of the Holy Trinity (though I prize my set, and would not part with it). Thus, such a set of records would not normally be valuable as money (though I might barter it with someone who also prizes modern Church music).

A couple of quick points here, as we wrap up this section. First, the doctrine of imputed value is a direct byproduct of Christianity, and especially of the Reformation. In paganism, things are thought to have value in themselves, because all things are part of God. In Roman Catholic mainstream thought, things are thought to have value to the degree that they possess “substance” or “being.” (This is a half-way house position, since Catholic thought insists that God created this “substance.”) In Protestant thought, however, things have value because God counts them as valuable and treats them as valuable.

“Count as” and “treat as” — that is what “impute” means. God takes a sinner, and before making him righteous, God imputes righteousness to him for Christ’s sake. God thus counts him as righteous and treats him as righteous. It is on the basis of this ree-value-ation that God then sends the Holy Spirit to impart righteousness to the sinner. God re-valor-izes (resymbolizes) a man from sinner to saint, and then works on making him flesh out this revalorization.

Why Men Value Gold

We have skirted around this subject, and now we need to move toward a direct answer. We might say that God has put it in the hearts of men to value gold. When He made the world, God instituted a social pattern. There were to be men and women, parents and children, rulers and ruled. There were to be economic transactions, and God created gold, silver, and precious stones to be used as money (in part). God put it into the hearts of men to desire marriage, and family, and society; and God put it into their hearts to appreciate, value, and thus desire gold.

What this means is that man’s subjective imputation of value to gold is grounded in the fact that God moves in the hearts of men to cause them to value gold. God does this to all men, as part of “common grace.” As far as it goes, this explanation is all right. As it stands, however, it does not go far enough. All we have is a bare assertion, not a real philosophy of gold. “Why do men value gold? Because God causes them to.” Well, that is true of everything, is it not? Why does electricity work? Because God causes it to. Why to children look and act like their parents? Because God causes it to happen. All very true, but except as a confession of bare faith, such statements are of little help.

We are not just to confess our faith; we are also to understand it. Thus, we are back to the question, why do men value gold? The answer is this: Men were made to value and love God, Who alone has intrinsic value. Gold, silver, and precious stones are created images of the glory and beauty of God, and this is why men value them.

Right away, the objection comes, “But men rebelled against God. They hate God. How is it that they love gold?” The answer to that important question is this: Men are incapable of escaping from God. They are forced to use some parts of the truth in order to suppress other parts of the truth. They use secondary aspects of the truth in order to suppress the primary aspects of the truth (the nature of God, the fall, salvation, etc.). This is why there is always some truth, however small, in every pagan and/or humanist philosophy. Occasionally we do hear of people (especially in the Marxist and Keynesian camps) who affect to despise gold. Generally, however, fallen man uses the truth of the value of gold as a means to suppress the truth that men must depend on God for security and protection. They misuse gold (money), trusting in it for deliverance, food, security, etc. Thus, they commit idolatry with gold. Even in the act of idolatry, however, they still have to confess that gold has value, and they cannot give any explanation for it. Even their act of idolatry testifies to the truth (as do all acts of idolatry).

We said two paragraphs up that “men were made to value and love God.” We may refine this further now by saying that since men are created by God, the imprint of God is indelibly stamped upon them, and they cannot help but know Him (see Romans 1:19-20). Thus, God remains the ultimate reference point of all human endeavor, either by submission to Him or by rebellion against Him. He cannot be avoided. Since gold (etc.) is a created reflection of the glory of God, it cannot be avoided either.

The Glory of God

By asserting that the bottom line on gold is that it is an emblem of the glory of God, we have made a point that is primarily aesthetic, and only secondarily economic. This is important to understand. Men prize food, clothing, and shelter because they cannot live without them. We may say that their primary value is economic, in a scarce world (to the extent that economics is a science of scarcity).

Gold, silver, and jewels, however, men can easily live without (and many of us do live without them, right?). Thus, their value does not reside in their scarcity. Men do not prize gold because it is scarce. If that were the case, they would prize rare-earth metals far more; for instance, lanthanium, cerium, praseodymium, neodymium, samarium, europium, etc. These are metals, thus divisible, portable, etc. Why don’t they function as gold has and does? Of course, the scarcity of gold and diamonds does add to the price they command, but scarcity alone is not the primary explanation of why men value them.

Thus, we arrive at an aesthetic explanation. The reason men value gold, silver, and jewels is because they are glorious and beautiful. Thus, their primary value is aesthetic, since aesthetics is the “science” of beauty. And from a Christian point of view, beautiful things are things that image the glory and beauty of God.

The Bible presents the glory of God to us in several dimensions, each of which is helpful in understanding the value of gold. I shall discuss three: heaviness, radiance, and color.

Heaviness

The Hebrew term translated “glory” in the Old Testament actually primarily means “heavy.” To say that God is glorious is to say that He is weighty, impressive, heavy. (Indeed, the Hebrew term is used negatively to refer to heavy sufferings, or the burden of sin.) Modern English slang also uses the word “heavy” to refer to impressive things. (”Oh, wow, man; heavy, man! That’s really solid!”)

Simple heaviness by itself is no virtue. A heavy stone in a field you want to clear is a pain, not a blessing. Heaviness must be accompanied by the other attributes of glory in order to be valued. All the same, the simple heaviness of gold is striking, especially the first time a person picks up a gold coin. We are used to lighter weight coins (and other nations, using aluminum, have still lighter coins). People are impressed at how heavy a gold coin is. This “feel” is very much part of the aesthetic impression gold makes on people, and part of its virtue in imaging the glory of God.

Radiance

The second component is radiance. When God manifests Himself, not only is His presence weighty, it is also shining. Indeed, “Our God is a consuming fire” (Heb. 12:29). Thus, when God appears, His glory cloud is seen to have fire in it. During the wilderness wanderings, the chariot cloud throne appeared as a cloud to shelter from the heat during the day, and at night the people could see into it a fiery interior, which warmed them. Ezekiel described the glory this way: “And as I looked, behold a storm wind was coming from the north, a great cloud with fire flashing forth continually and a bright light around it, and in its midst something like glowing metal in the midst of the fire” (Ezk. 1:4).

Shining things in the creation are images of the glory of God. The beauty of the sunrise, for instance, is often used in Scripture to describe the glorious arising of the Son of Righteousness (e.g., Mal. 4:2; Jud. 5:31; Gen. 32:31). This is why people regard sunrises and sunsets as glorious.

Similarly, it is Ezekiel who uses the expression “stones of fire” (Ezk. 28:14). These are listed as “ruby, topaz, diamond, beryl, onyx, jasper, lapis lazuli, turquoise, emerald, and gold” (Ezk. 28:13) — these being the stones that adorned the High Priest. What are “stones of fire?” They are stones that have fire in the middle of them. Look at a diamond, or a ruby, or an emerald. See the fire in the midst? That is a created emblem of the glory cloud of God. That is why such things are beautiful, and why they are universally valued.

Color

The third aspect is color. The glory cloud of God is the original architectural form of which the tabernacle and temple are earthly copies. A comparison of those passages that describe the heavenly throne of God (in Daniel and Revelation) with those that describe the glory cloud (Ezekiel) show that the cloud was a portable chariot-throne manifestation of the heavenly environment. A further comparison of these with the design of the tabernacle and temple will show that these earthly houses were made according to the heavenly pattern: “Thy will be done on earth, as it is in heaven.”

Beautiful colors occur everywhere in the description of the tabernacle and temple. Beautiful dark wood, gold overlay, richly colored fabric — these run through Exodus 25-40 as the tabernacle is described. The lampstand in the Holy Place was made all of gold, as an idealized almond tree, and its burning oil lamps reflecting off the myriad surfaces of the tree would have provided a brilliant radiance. The laver of cleansing was made of bronze mirrors (Ex. 38:8).

Similarly, the new Adamic guardian, the High Priest who would minister in this house had to be adorned with “garments of glory and beauty” (Ex. 28:2, 40). On his breastplate were twelve “stones of fire” for the twelve tribes of Israel (28:15-21). Thus, the Bible explicitly here tells us that such jewels and gold are glorious and beautiful.

In Revelation 21, the New Jerusalem is described in the same terms. The twelve gates of this gigantic (ideal) city are each one huge pearl (v. 21). Between these pearls are twelve foundation stones, each either a gigantic gem or else adorned each with gems of one particular type. These correspond to the stones of fire worn by the high priest (not precisely, but a discussion of the differences would go beyond the scope of this essay). They form a giant frozen rainbow around the throne of God, to remind him never again the curse the earth (Gen. 9:16). Heaviness, radiance, and color — we have only skimmed the surface of what the Bible says about these three dimensions of the glory of God. It is because God manifests His invisible glory in these ways, that men prize the created emblems that also manifest them.

Three Concluding Observations

The central and special symbol of God is, of course, man, the very image of God. In terms of this, all other created things, which generally show forth the nature of God, also show forth the nature of man. Thus, precious metals and stones are symbols for men in the Bible. The sinfulness of even the elect among humanity means that God must “sit as a smelter and purifier of silver, and He will purify the sons of Levi and refine the like gold and silver, so that they may present to the Lord an offering in righteousness” (Mal. 3:3).

In terms of the value of stones, however, perhaps more to the point is the fact that God’s Temple is really, ultimately made up not of stones but of men. Paul writes in 1 Corinthians 3:16, “Do you (plural) not know that you (pl.) are the temple of God, and the Spirit of God dwell in you?” Similarly, Peter says that we are are “as living stones, being built up as a Spiritual house for a holy priesthood” (1 Pet. 2:5). Returning to Paul, we find that this human Church-Temple, as it is being built, contains “gold, silver, precious stones, wood, hay, stubble” (1 Cor. 3:12). There are inferior materials in the Temple at present, but as time goes along “each man’s work will become evident, for the day will show it, because it is to be revealed with fire.” The fire burns up the wood, hay, and stubble, but refines the gold, silver, and precious stones. This explains why God puts the wood, etc. into the Church in the first place — it is so that it can indeed catch fire, and refine and purify His true Levites.

Ultimately, then, what is of value is men, not because men are scarce, but because they (aesthetically) image the glory and character of God (or are supposed to). We have to say, too, however, that precious metals and gems are not just symbols of men, but also that the human manipulation of them is part of the means whereby men are matured to become fit stones for the eternal Temple of God.

In terms of that, the proper use and valuation of precious metals and stones is of great importance to moral theology. The trust we put in gold and the security we get from it is very real, but also very limited. That financial security is a shadow of the real ultimate security we have in Christ. Such financial security is very real, and of real value, as long as we keep it in perspective. To absolutize the value of gold as security is idolatry. But to ignore the value of gold altogether is a blasphemous affront to the God whose glory gold images. The man who despises the relative security that gold (etc.) provides is ultimately despising the God Who ordained it, and will find no security in Him. In other words, the God Who ordained the ends (security) also ordained the means (economic wisdom).

Thus, the first general observation is that gold (etc.) is of great value in growing men, who are the true created gold of God’s House. Second, precious metals and precious stones are said to be the adornment of the bride in Scripture. The New Jerusalem, the description of which I have alluded to already, is said to be “made ready as a bride adorned for her husband” (Rev. 21:2). Ultimately, humanity was made to be the bride of God, in a covenantal sense. This imagery runs throughout the Scripture, and is too common to require substantiation. The adornment of the bride, we note, is a reflection of the glorious adornment of the heavenly bridegroom. Indeed, the book of Revelation opens with a description of the glory of the Groom (Rev. 1:13ff.) and closes with a description of the bride using the same imagery — thus showing that the bride has come to reflect the glory of her Lord.

This is shown within the created order of humanity by the fact that the woman is to be “the glory of the man” (1 Cor. 11:7). This has a practical application, which is that a man should adorn his wife with gold, silver, and precious stones of fire, to the best of his abilities. The Song of Solomon spends quite a bit of time showing the adornment of the bride by her husband. Investing in bulk silver and gold coins is important as a hedge against disaster and inflation, but investing in beautiful jewelry as an adornment for the wife has the additional virtue of helping bring about a true, Biblical, Christian marriage.

Finally, at the beginning of this essay I stated that the fact that the primary value of gold is aesthetic (beauty) rather than economic (scarcity) is important to a Christian philosophy of economics. We are now in a position to set forth a thesis along these lines, which is this: Before there was scarcity (the fall) there was beauty (the creation), so that aesthetics is ultimately prior to economics. When this canon is born in mind, the universal appreciation of gold (etc.) can be seen to have a theological as well as an economic relevance. From a secular point of view, economics is the science merely of scarcity; but from a creationist point of view, economics is the scientific side of aesthetics. The valuation of aesthetically desirable objects along economic lines is the form economics would have taken had there been no fall of man, and apart from an understanding of this fact there can be no genuinely Christian, creationist theory of value. The goal of history is not simply to overcome scarcity, but to beautify the creation and bring it to its most glorious fruition.

How to Start a Cooperative Business

2009-09-04T01:44:00.003-07:00

How to Start a Cooperative

Who Sparks a Cooperative?

A compelling need and a few community leaders can spark the idea of forming a cooperative. Usually, these leaders have an economic need or desire a service they believe a cooperative can provide. They also know others who have similar interests.
These leaders can be business owners, manufacturers, growers, artisans, or citizens who lack, or are losing, a market for their products, satisfactory sources of production supplies, or services related to their occupation. Or they may wish to secure some other needed service or develop sources of additional income.

What Is a Cooperative Business?

A cooperative is a business owned and controlled by the people who use its services. They finance and operate the business or service for their mutual benefit. By working together, they can reach an objective that would be unattainable if acting alone.
The purpose of the cooperative is to provide greater benefits to the members such as increasing individual income or enhancing a member's way of living by providing important needed services. The cooperative, for instance, may be the vehicle to obtaining improved markets or providing sources of supplies or other services otherwise unavailable if members acted alone.

Distinctive Features

In many respects, cooperatives resemble other businesses. They have similar physical facilities, perform similar functions, and must follow sound business practices. They usually incorporate under State laws and require bylaws and other necessary legal papers. Members elect a board of directors to represent their interests. The board sets policy and hires a manager to run the cooperative's day-to-day business.
Even though cooperatives are similar to many other businesses, they are distinctively different. Some differences are found in the cooperative's purpose, ownership, control, and distribution of benefits. Cooperatives follow three principles that define or identify their distinctive characteristics:

user-owned,

user-controlled, and

user-benefited.

The user-owned principle means the people who own and finance the cooperative are those who use it. "Use" usually means buying supplies, marketing products, or using services of the cooperative business.
Members finance the cooperative through different methods: 1) by a direct contribution through a membership fee or purchase of stock; 2) by an agreement to withhold a portion of net earnings (profit); or 3) by assessments based on units of product sold or purchased.
For instance, a tomato grower would be assessed a fee such as 10 cents for every box marketed through the cooperative. These assessments, generally referred to as per-unit retains, help finance the cooperative's operations.
The user-controlled principle (also called democratic control) says those who use the cooperative also control it by electing a board of directors and voting on major organizational issues. This is generally done on a one-member, one-vote basis, although some cooperatives may use proportional voting based on use of the cooperative.
The user-benefited principle says that the cooperative's sole purpose is to provide and distribute benefits to members on the basis of their use. Members unite in a cooperative to receive services otherwise not available, to purchase quality supplies, to increase market access, or for other mutually beneficial reasons. Members also benefit from distribution of net earnings or profit based on the individual’s business volume with the cooperative.
To operate under these distinctive principles, an important practice, particularly for new cooperatives, is to conduct continuing member education. This is especially important for attracting and recruiting new members. It is also necessary because the cooperative's membership continually changes. Older members retire and new ones join.
Keeping owners informed is an important practice for any business, but vital in a cooperative for at least three reasons:

(1) The democratic control principle, exercised through majority rule, requires that the entire ownership (members) be informed and involved to assure that enlightened decisions are made;

(2) Members must indicate their needs and accept the accompanying financial responsibilities before the cooperative can fulfill those needs; and

(3) Some people are not familiar with the cooperative form of business. The educational system in the United States contains little, if any, information about cooperatives. So, the cooperative, itself, must become the educational institution.

Why Cooperatives Are Organized

People organize cooperatives to improve their income or economic position or to provide a needed service. This may be achieved through one or more of the following:

Marketing Activities

Improve bargaining power- Combining the volume of several members leverages their position when dealing with other businesses.

California: The California Canning Peach Association is a cooperative bargaining association based in Lafayette. Peach growers contract their production to processors. The grower-owned cooperative bargains with the largest processors for grower price and delivery schedule. Members realize significant additional money per ton for their peaches than growers who market on an individual basis. The cooperative also keeps growers advised on projected market volume and other conditions that may effect their operations.

Reduce costs- Volume purchasing reduces the purchase price of needed supplies. Earnings of the cooperative returned to individual members lower their net costs.

Maine: St. Mary's General Hospital in Lewiston, a 230-bed rural health care facility, is a member of Synernet, a cooperative that serves 20 hospitals. In one year, St. Mary's saved more than $479,000 by purchasing fuel oil, medical supplies, laboratory products, food, film, pharmaceutical, and services through the cooperative. These savings helped health care providers stretch limited resources.

Obtain market access or broaden market opportunities - Value is added to products by processing or offering larger quantities of an assured type and quality to attract more buyers.

Oregon: Tillamook County Creamery Association was organized in 1909 as a quality control organization for 25 cheese factories operating in Tillamook County, an area 30 miles wide and 60 miles long between the Pacific Ocean and the Coastal Range Mountains. During the past years, the 25 cooperatives have consolidated into a single cooperative. Tillamook produces and sells more than 45 million pounds of cheese a year. Sales are mainly in the Pacific Coast States of Oregon, Washington, and California, with an ever-growing volume going to all parts of the United States. Due to the emphasis the cooperative places on family farm operations, young dairy producers have been encouraged to stay on the farm and continue to build on the foundation laid by earlier generations.

Improve product or service quality - Member satisfaction is built by adding value to products, competition the cooperative provides, and improved facilities, equipment, and services.

Iowa: Frontier Cooperative at Norway started out in a van in 1976. Its mission was to provide low-cost organic herbs and spices to its members. Today, with 5,400 members, Frontier is a solidly managed cooperative that's become the Nation's premier distributor of organic seasonings. Developing new products rates high on the cooperative's list, such as Frontier Pure Lager, an organic beer, as well as encapsulated herb products.

North Carolina: Watermark Association of Artisans was formed in 1978 by 35 rural women near Elizabeth City. They pooled their efforts to sell baskets, quilts, and other handmade gift items. Today, the 750 member-artisans produce decorative wooden products, rocking horses, antique quilts, rag dolls, teddy bears, duck decoys, wreathes, and baskets which are marketed around the world. About three-fourths of the members are from low-income backgrounds. Many are single, unemployed mothers with few job skills.

Purchasing Supplies/Services

Obtain products or services otherwise unavailable - Cooperatives often provide services or products that would not attract other private businesses.

Oregon: Members of Blue Water Harvesters Cooperative in Port Oxford harvest sea urchins. They depended on several private firms to extract and clear package "roe" for export to Japan. In recent years, all of these firms ceased operations. The watermen were left without a processing facility. So, the cooperative purchased a processing facility which enabled members to continue their livelihood through cooperative action.

Michigan: Frankfort is a small city of 1,500 on the shores of Lake Michigan. Many older residents wanted the comfort and convenience of retirement living, but didn't want to leave the area. Initially, 54 couples moved into an especially designed, new elderly housing cooperative close to the center of the community. The new cooperative is the latest example of an emerging trend in providing affordable senior citizen housing facilities that are ideally suited to small rural communities.

Flexible manufacturing networks-These are a mechanism for small manufacturing enterprises in local geographical areas. By joining under a cooperative umbrella, members achieve certain shared objectives that might be otherwise impossible to achieve on their own. Through networks, members share costs for market research, environmental compliance, or technical training for employees. Joint production development and market penetration are also feasible objectives.

Farm Credit System - This nationwide network of cooperative lending institutions provides credit and financially related services to farmers, ranchers, and their cooperatives. In existence for more than 75 years, the System is the largest provider of agricultural credit in the United States. The System specializes in low-cost financing for agricultural enterprises and rural utilities. Its expertise is unequaled by any other lender.

Obtain market access or broaden market opportunities-Value is added to products by processing or offering larger quantities of an assured type and quality to attract more buyers.

Franchise Purchasing Cooperatives- Individually owned units are organized to gain economy of scale in purchasing goods and services. Some have formed insurance companies, established leasing programs, or developed financing programs for members' equipment. Benefits are derived not only from savings through group purchasing, but also from sharing earnings based on each member's business volume with the cooperative.

Reduce Cost/Increase Income - Reducing the cooperative's operating costs increases the amount of earnings available for distribution to members to boost their income.

Missouri: Glasgow Cooperative, Inc., was organized in 1923 as a farm supply purchasing association. It serves farmers in a 15-mile radius of Glasgow. In its 70-year history, it has returned nearly 8 percent of the gross sales in patronage back to the members. The cooperative also has an excellent history of revolving member equities. Both activities have reduced the cost of providing farm supplies to the members.

Organizing Steps

Starting a cooperative is a complex project. A small group of prospective members discuss a common need and develop an idea of how to fulfill it. Depending on the situation generating the idea, a new cooperative may be welcomed with enthusiasm or may be met with vigorous competitive opposition.
If opposed, leaders, must be prepared to react to various strategies of competitors such as price changes to retain potential cooperative members' business; better contract terms or canceled contracts; attempts to influence lenders against providing credit; and even publicity, misstatements, and rumors attacking the cooperative business concept.
Regardless of the business climate for the proposed cooperative, leaders must demonstrate a combination of expertise, enthusiasm, practicality, dedication, and determination to see that the project is completed.

Figure 1 - Sequence of Events Outline

1. Invite leading potential member-users to meet and discuss issues. Identify the economic need a cooperative might fill.

2. Conduct an exploratory meeting with potential member-users. If the group votes to continue, select a steering committee.

3. Survey prospective members to determine the potential use of a cooperative.

4. Discuss survey results at a second general meeting of all potential members and vote on whether to proceed.

5. Conduct a needs or use cost analysis.

6. Discuss results of the cost analysis at a third general meeting. Vote by secret ballot on whether to proceed.

7. Conduct a feasibility analysis and develop a business plan.

8. Present results of the feasibility analysis at the fourth general meeting. If participants agree to proceed, decide whether to keep or change the steering committee members.

9. Prepare legal papers and incorporate.

10. Call a meeting of charter members and all potential members to review and adopt the proposed bylaws. Elect a board of directors.

11. Convene the first meeting of the board and elect officers. Assign responsibilities to implement the business plan.

12. Conduct a membership drive.

13. Acquire capital and develop a loan application package.

14. Hire the manager.

15. Acquire facilities.

16. Begin operations.

Leadership and Advisers

Responsibility for starting a cooperative and seeing the project through rests mostly with the leadership group. Leaders begin by discussing their idea at one or more small group meetings with other prospective members or users. If the group supports the idea, the next step is to seek the advice of someone familiar with cooperatives.
Specialized help is needed throughout the various stages of starting a cooperative. Leaders need someone familiar with the cooperative-forming process to work with them step by step concerning legal, economic, and financial aspects.
Depending on the resources available and interest found among sources of specialized help, the group should request a person from one of the organizations to serve as an adviser

Business and cooperative specialists are needed. Most States have Rural Development offices and many have a cooperative development specialist on the staff who can help you get started. They can recommend other specialized services and talents that will be needed during organization stages.

Other resource people are available from county Extension Service offices or land-grant universities, State cooperative councils, Centers for Cooperatives, National Cooperative Bank, area offices of CoBank, St. Paul Bank of Cooperatives, or an established cooperative in your area. USDA's Rural Business-Cooperative Service in Washington, DC, also assists groups seeking to develop cooperatives by conducting feasibility studies, providing educational services, and helping with implementation.

Legal Counsel, preferably an attorney familiar with State cooperative statutes, is needed. Among sources to check for one are State Extension specialists working with cooperatives, the State cooperative council, CoBank, St. Paul Bank for Cooperatives, National Cooperative Bank, National Society for Cooperative Accountants, USDA's Cooperative Services, or an established cooperative in the area.

An attorney prepares the organization papers or checks the legality of those written by someone else. Early expertise is needed to acquire property, make capitalization plans, borrow money, and write agreements and contracts. Even after the cooperative is operating, an attorney should be retained who can help ensure the organization conforms to applicable laws.

Financial counsel from some financial institution should be sought early regarding anticipated capital needs and methods of financing.

This institution can provide advice on designing the feasibility study to meet requirements of a lending agent. Staff specialists on finance and accounting matters can also advise the cooperative. An independent accounting firm that has the knowledge of cooperative operations should be hired to establish the bookkeeping system, tax records, and a plan for revolving capital prior to sale of stock or collection or handling of members' money. Later, the board will need to hire an outside accounting firm to conduct the annual audit.

Technical advice may be needed periodically from a variety of technicians and persons experienced in cooperative business operations.

Exploratory Meeting

To determine the level of interest in starting and supporting a cooperative, invite potential members to a general meeting. Announce the meeting date, time, and place via newspapers, radio, telephone, at other meetings, by letter, or word of mouth. Invite outside advisers.
The leadership group should develop an agenda and select a presiding officer who can conduct a business meeting. Sometimes, an adviser can act as chair or help answer questions. Primary agenda items should include:

What is the need;
Possible solutions;
Cooperative principles and terminology;
Cooperative operating practices;
Advantages and disadvantages of a cooperative;
General risk capital equity and financial requirements; and
Various forms of member-user commitment needed.

One approach is to have one member of the leadership group discuss the need and another summarize how the proposed cooperative might solve it. In addition, a representative of a successful cooperative might explain its operations, benefits, and limitations.
Allow plenty of time for discussion. Prospective members should be encouraged to express their views and ask questions. All issues raised should be addressed, although answers may be delayed until later meetings when more information becomes available.

Cooperative Bulletins

Answers to some of the frequently asked questions may be found in an array of cooperative bulletins published by USDA's Rural Business-Cooperative Service (Appendix VII, Helpful References).

1. What is a cooperative and how is it different from other business?
2. Who controls a cooperative?
3. What is the risk investment (equity) and why is it needed?
4. How much is my initial investment (equity capital)?
5. Will my investment (equity) requirement be determined by volume or by number of members?
6. Can we simply cosign a bank note instead of raising a cash investment (equity)? What risks are involved in cosigning?
7. How much money can I lose if the cooperative falls?
8. Can I sell my stock and other investments (equities) and get out of the cooperative whenever I want? Can I sell it to whomever I want?
9. What are marketing or purchasing agreements and why are they needed? How long do they last? If I can't meet the terms of the agreement, do I have to pay a penalty?
10. What are net margins and net earnings?
11. What are patronage refunds and retained patronage refunds?
12. Why can't the cooperative pay 100 percent cash patronage refunds?
13. Why do we have to pay income taxes on our patronage refunds, particularly the retained portion, if we don't actually receive money?
14. What are per-unit capital retains and what's their purpose?
15. When will the cooperative refund my retained allocations and per-unit retain? Will I be able to get this money when I retire? Will my estate be able to get it after I die?
16. Can we restrict cooperative membership?
17. If a cooperative is supposed to help its members, why are prices at the cooperative no better and sometimes worse than prices elsewhere?

Steering Committee Formation and Duties-
If the group wants a more detailed study after discussion is completed, it should select a steering committee. This group should have a keen interest in the cooperative, be well-respected within the community, and have sound business judgment. Committee members often become the initial organizers and members of the cooperative's first board of directors.
The first function is to select officers of the steering committee, usually at the close of the general informational meeting. Next, establish a deadline for completing a business analysis, including a target date for surveying potential members. Periodic progress meetings retain interest of prospective members.
The steering committee, with the help of one or more advisers, determines if a cooperative is feasible. First, it judges whether the proposed cooperative is likely to succeed and benefit its members. Second, if the proposal passes this test, the committee prepares a specific, detailed business plan for the new cooperative.
Assistance from specialists in law, accounting, finance, economics, engineering, and cooperative business operations is critical during the business analysis phase.
Economic need is fundamental to the formation and successful operation of any cooperative. The committee should examine what products or services the cooperative could provide, those needed from other sources, and whether costs would be reduced or quality improved. Intangible functions also should be considered. Will the cooperative provide a needed service, preserve a market, stabilize prices, or encourage more orderly marketing?
Is the projected initial investment (equity) within the financial ability of the potential members involved?
The committee should consider alternatives to starting a new cooperative. Could similar services be provided by another nearby cooperative, either directly or by establishing a branch? If forming a new cooperative is the best alternative, the group should consider linking with regional cooperatives to obtain additional benefits.
A new cooperative should initially limit services to avoid elaborate or costly facilities above those absolutely needed. If successful, services can later be expanded.

Member-User Survey

Formal survey techniques are best for estimating potential membership. The adviser usually drafts the survey questionnaire for the steering committee to review. Appendix I carries a sample questionnaire, but the following list gives a general idea of the needed information:
1. Volume of need or use in an appropriate unit of measure for the most recent or typical year;
2. Member-user experience and capabilities-years in present location, overall success, demand specific to the cooperative venture, and production and marketing success;
3. Variety of products or services to be offered or needed;
4. Period of need or services;
5. Current unit value-sales price or cost per unit;
6.. Member-user--location of use or need;
7. Familiarity with and use of other cooperatives and willingness to join, finance, and use one.

While the questionnaire is being prepared, the steering committee should develop a list of potentially interested members. When the questionnaire is completed and approved, the committee interviews potential members.
Steering committee members might travel with the adviser or advisers to locate potential users or otherwise fix locations on a map. But the adviser, not committee members, should conduct the survey interview to preserve confidentiality of information provided. Such occasions should be carefully assessed beforehand.
The adviser should also discuss and answer questions about the proposed cooperative venture. Surveys also can be conducted at scheduled group meetings at a central location.
Estimates of both membership and volume should be conservative. Not all persons interested will join initially and some may wait to join later. And, unfortunately, not all who join will make the fullest use of the cooperative's services.
The adviser analyzes the survey, prepares a report, and presents it to the steering committee. The results and implications are then discussed at a meeting of all persons surveyed. Survey results should reveal how potential members identify the economic need and the degree of interest in a cooperative to fulfill that need. The survey should indicate the level of support in terms of business volume and if financial commitment is sufficient to organize and successfully operate the cooperative. The final action at this meeting is a vote on whether to continue.

Market, Supply Sources, Cost Analysis

A vote to continue challenges the steering committee and adviser to identify suitable markets, sources of supply, and service providers and their requirements. Here are some ways to gain this information:
1. Use previous research and industry common knowledge.
2. Survey market, supply, or service provider sources. Although the advisor should be primarily responsible for developing the questionnaire, this phase should be a joint effort. Contact users of the services, potential buyers or suppliers, to determine their requirements.
3. Ask State and/or Federal offices (such as the Rural Development offices, Extension Service, or community action agencies), universities, cooperative centers, commodity organizations, or private consulting firms to conduct the research and use their findings.
The adviser analyzes the survey results. This process may determine the scope of the cooperative's activities. Contacts are then made, either by the adviser or steering committee members, with engineers, equipment dealers, real estate agents, and others for cost estimates on establishing and operating the cooperative's physical facilities.
The adviser reports on the potential markets or supply sources to the steering committee. Once the report is approved, the steering committee calls the third general meeting. The adviser presents the preliminary market or supply estimation and cost analysis. Both are subject to change.
After the market or supply report is discussed and accepted, the group should vote by secret ballot on whether to continue the organizational process. By now, the steering committee and adviser should have a good idea of the minimum volume of business, number of members, and financial commitment needed to justify starting the cooperative. Where support is questionable, the token investment should be refunded.
Supporters should sign a premembership agreement (Appendix III). This agreement helps determine the extent of serious interest in the proposed cooperative. The signer agrees to join, patronize, and furnish a specific amount of initial risk capital.
Initial investment by members should be in proportion to their intended use of the cooperative, but start at a minimal amount such as 10 percent of potential risk capital (equity) needed to operate. This goal should be met before continuing organizational efforts.
Potential members should be given a written statement about how their investment will be used and procedures for returning unused funds if the project is terminated or the individual later decides not to join. The money should be deposited in an interest-bearing account and records kept of investments and expenditures. Generally, this money is used for organizational costs like supplies, postage, phone bills, and attorney fees.

Feasibility Analysis

The emerging picture of the size and scope of the cooperative now permits the adviser and the steering committee to develop basic operating assumptions. Together, they consider facilities needed, operating costs, capitalization, and financial requirements.
An important part of the feasibility analysis is to review the sensitivity of the business to changes in volume or operating costs. For example, what impact will a 25-percent decrease in product sales, perhaps due to adverse weather, have on profitability? Other key factors might include wage rates, operating efficiencies, interest rates, etc.
The adviser determines operating efficiencies, estimates labor needs, develops service and payment schedules, and gathers other cost data. The steering committee will have to contract with an engineering firm or equipment dealer, for instance, to obtain specialized data on facilities, equipment, and labor costs.
Facilities needed may include land, buildings, and equipment. The committee bases estimates on the expected business volume by the probable members, plus some allowance for future expansion. The cost of buying or leasing existing facilities and equipment should be investigated. Professionals and skilled technicians should be consulted to determine the need for new facilities and assess the value of any existing facilities being considered.
Operating costs include employee salaries, utilities, taxes, depreciation, interest, and costs of office and other supplies. The adviser, with help of the committee, determines what items to include and their probable cost, based on operating assumptions. If the operating revenues for the projected volume of business show little or no margins over estimated costs, the committee should project the volume needed to produce acceptable margins. In most businesses, per-unit operating costs tend to decline as the volume increases.
A cooperative's lowest possible operating costs occur when its members furnish it with the maximum amount of business it can handle.

Capitalizing the Cooperative

Capitalization is the amount and source of money needed to start and operate the cooperative. The committee recommends a plan of capitalization including: (1) determine whether the capital structure is to be stock or nonstock; (2) estimate the amount of member investment (risk capital); and (3) estimate the amount and source of borrowed money needed (debt capital).
While many State incorporation statutes permit organizing as either a stock or nonstock cooperative, a number limit them to agricultural producers. In a stock cooperative, members are issued stock certificates as evidence of their membership and capital investment. More than one type of stock may be issued.

Common Stock-

Stock cooperatives issue shares of common stock to show membership and voting rights. Common stock may be divided into classes. Each class may have different par values and carry different voting privileges. Usually, cooperatives don't pay interest on common stock.

Preferred Stock-

Preferred nonvoting stock may be issued to both nonmembers and members for additional capital investment. This stock may be divided into classes. Each has different par value and/or other conditions. Interest paid on preferred stock may be limited by State statute and redemption determined by the board of directors. If the cooperative is changing structure or going out of business, preferred stock is paid before the common stock.

Membership Certificates-

If the cooperative is organized as a nonstock organization, usually membership and capital certificates are insured, This certificate is issued when membership fees are paid and establishes voting rights in the cooperative. The amount of capital collected from membership fees is usually considered as incidental to capitalizing of the cooperative. Membership certificates are generally noninterest bearing.

Capital Certificates-

Capital certificates of a nonstock cooperative are the equivalent of preferred stock issued by a stock cooperative. They are sold in various denominations, may bear interest, and may or may not have a due date. They have no voting privileges and may be owned by nonmembers.
The combination of membership fees, sale of capital certificates, and capital certificates issued for retained patronage are sources of risk capital (equity) for nonstock cooperatives. (Certificates issued for retained patronage may carry a due date to implement systematic rotation.)

Stock or Nonstock Structure ?-

A new cooperative may choose either method for structuring risk capital. A stock structure is more easily understood by most potential members. If organizing as a nonstock cooperative, more member education may be needed to explain the risk capital structure described in the bylaws.

The Member Investment

Investing risk capital is a basic member responsibility. The initial investment required (equity capital) from each member will be determined by the projected cost of facilities, estimated daily volume of business, cash flow requirements, projected number of members, and their volume or use of the business.
Members' initial risk capital investment should be large enough for them to realize they have a financial stake in the business to protect. If the investment ( equity) requirement is based on volume (vs. number of members), the investment should be in proportion to their expected use. Those who wish to contribute more than their share may purchase preferred stock or capital certificates that earn fixed dividends, but carry no additional voting privileges. Members may also provide short-term debt capital in the form of certificates of investment.
Members provide additional amounts of risk (equity) capital as they use their cooperative. One method is through per-unit capital retains. The cooperative deducts from transactions an amount based on the value or quantity of services provided or products marketed. Another method is to retain part of the cooperative's net earnings at the end of each business year. Under both of these methods, the risk capital (equity) investments are credited to members' equity account in the cooperative's accounting system.
Like other businesses, cooperatives must build financial reserves. These can be used both to carry them through times when operating expenses exceed income and to financial growth. Sometimes, part of these reserves is dedicated to a specific purpose, such as covering uncollectible accounts (bad debts). Another portion may be set aside to fund a new facility or the startup of a new member service.
Accumulated reserves relieve the pressure on the cooperative to borrow money or reduce important services through tough times. And they lessen the likelihood the cooperative will have to ask the members for a direct investment of additional risk capital to meet unexpected needs.
As part of the capitalization plan, the steering committee estimates the amount of reserves that will be needed and the method of obtaining them. State law should be checked for rules on reserve levels or methods of accumulation.
The membership fee or payment for a share of stock is usually retained by the cooperative, at least until the membership is terminated. However, another element of the capitalization plan should be a strategy for revolving member equity capital related to business done with the cooperative, retained patronage refunds, and per-unit retains. When the cooperative's equity is sufficient to meet its needs, a portion of each year's income should be used to redeem the oldest patronage-based equity.
This equity is replaced by funds retained from the current year's patrons. The schedule for revolving equity is set by the board of directors, A systematic equity redemption program keeps the cooperative financed by current users in proportion to their use.

Sources of Debt Capital

How much debt capital the cooperative can borrow depends on how much risk (equity) capital members initially invest, cash flow, quality of management, and the degree of risk in the venture. Members should contribute equity capital amounting to at least half the total capital requirements. But, it usually takes several years of operations to reach this goal.
Long-term credit is the usual way of acquiring part of the money to finance land, buildings, and equipment. The period of the fixed asset loan depends on a number of factors, but it is usually related to the facility's projected life.
The committee should explore various sources of long-term loans and recommend the source that can supply the financing best suited to the proposed cooperative. Among sources of facility loans are State offices of USDA's Rural Development, CoBank, St. Paul Bank for Cooperatives, National Cooperative Bank, programs of commercial banks, credit unions, and insurance companies. Other financial arrangements may be available that are temporary or unique to the new cooperative venture.
Operating capital may be obtained through short-term loans (1 year or less) after the cooperative becomes established. A new cooperative, however, can obtain only part of its operating funds from short-term loans. Member equity must make up the balance.
Sources of short-term credit include credit unions, commercial banks, banks for cooperatives in the Farm Credit System, and the National Cooperative Bank. The committee should explore all sources and recommend the lender that best meets the requirements of the proposed cooperative

Projecting Capital Needs

The adviser prepares a feasibility analysis report that outlines all assumptions and income and expense projections based on standard financing practices and presents it to the steering committee. The report is reviewed and revised to develop a realistic business plan that can be approved by potential members and implemented without significant change.
This report is discussed at a fourth general meeting of potential members. It should cover the cooperative's purpose, goals, and economic functions, including assumptions and financial projections for startup and at least the first 3 years of operations. Specific topics include:
1. Volume projections;
2. Risk capital (equity) investment requirements-initial and continuing;
3. Financing projections, including tables for monthly cash flows, annual projections of operating statements, balance sheets, and a statement of cash flow;
4. Financial package and method of capitalization;
5. Payment schedules;
6. Projected patronage refunds-cash and retained; and
7. Implementation schedule.

Financial projections may include "best" and "worst" case scenarios to demonstrate sensitivity to changes in operating assumptions.
By now, most specific operational plans have been determined. Yet to be decided is the selection of a manager, facility location, and subjects to be covered in the articles of incorporation and bylaws.
If members elect to continue the process, the steering committee is instructed to arrange for incorporation and carry out the business plan.

Legal Considerations

Organizing committee members should become acquainted with legal aspects of cooperatives by studying laws applicable to them and businesses generally (Appendix VII).
Every State has one or more laws authorizing the formation of cooperative corporations, although a number of them are restricted to agricultural producers. Copies may be obtained from an attorney, the Secretary of State, or State Corporation Commissioner.
Several Federal laws are especially important for cooperatives. The Capper-Volstead Act of 1922, sometimes called the "Magna Charta" of farmer marketing cooperatives, recognizes the rights of producers to act together in handling, processing, and marketing their production without violating antitrust law. Producers may also form marketing agencies in common. But even though cooperatives have this organizational protection, their operations are subject to the same antitrust laws as other businesses.
The Farm Credit Act of 1971 defines a cooperative that is eligible to borrow from the banks for cooperatives in the Farm Credit System and the conditions the cooperative must meet. The National Consumer Cooperative Bank Act created a similar financial institution, the National Cooperative Bank, to serve nonfarm cooperatives. The Internal Revenue Code describes the tax treatment of cooperatives and their patrons and tax reporting requirements.

Legal Papers-
Perhaps the most important process, other than determining the business feasibility, is drafting articles of incorporation and bylaws. Other legal documents include the membership application, membership or stock certificate, revolving fund certificate, marketing/purchasing agreements, and meeting notices and waivers of notice (Appendix III). Also review Sample Legal Documents for Cooperatives (CIR 40).

Articles of Incorporation-
Incorporation is usually the best method of organizing. Each State has special enabling laws under which cooperatives may incorporate. It may be preferable to incorporate under the State's general corporation enabling act, but structure bylaws to operate as a cooperative.
Incorporation gives the cooperative a distinct legal standing. Members generally are not personally liable for the debts of an incorporated organization beyond the amount of their investment. The articles indicate the nature of the cooperative business. The articles should specify rather broad operating authority when incorporating even though services may be limited at the beginning.
These articles usually contain the name of the cooperative, principal place of business, purposes and powers of the association, proposed duration of the association, names of the incorporators (in most States), and information about the capital structure. In some States, the names of the first officers of the association must be included.
Filing the articles of incorporation (usually with the Secretary of State) activates the cooperative corporation. After the organizing committee approves the articles, the attorney files for the corporation charter and includes the recording fees. Once chartered by the State, the cooperative should promptly adopt bylaws.

Bylaws-
They state how the cooperative will conduct business and must be consistent with both State statutes and the articles of incorporation.
Bylaws usually have membership requirements and lists rights and responsibilities of members; grounds and procedures for member expulsion; how to call and conduct membership meetings, methods of voting, how directors and officers are elected or removed, and their number, duties, terms of office, and compensation; time and place of director meetings; dates of the fiscal year; requirement to conduct business on a cooperative basis; how net margins will be distributed; process for redemption of members' equity; a consent provision that members will include the face value of written notices of allocation and per-unit retain certificates as income in the year they are received; distribution of nonpatronage income; handling of losses; treating nonmember business; dissolution of the cooperative; indemnification of directors; and the process for amending the bylaws.
Also covered is how the board is structured to represent the membership, given geographical distribution and size of the membership and the scope of business and function of the cooperative. Directors may be selected to represent districts based on membership density, to reflect commodities or services to be handled, or some other basis that provides equitable representation. The organizing committee's recommended management structure should include the basis for director representation, voting methods, and board officers, and their terms.
For marketing cooperatives that lack a marketing agreement, the bylaws specify the extent of members' obligation to market through the cooperative. They outline the terms and conditions under which the products will be marketed and accounting procedures.
The committee prepares the articles and bylaws with the help of an attorney so provisions comply with laws of the State in which the cooperative is incorporated. The committee's role also is to assure the bylaw provisions will not conflict with operating procedures.

Membership Application-
This form has five main parts: applicant's statement asking to become a member of the cooperative, signature of the applicant, statement of cooperative acceptance of applicant, signatures of the president and secretary, and a statement of the duty and intent of the member.
The application, signed by the member and approved by the board of directors, is the legal proof that a patron is a member. A cooperative should have a completed membership application on file from every member. Membership and the amount of business done with members and nonmembers are important factors for certain antitrust and taxation provisions.
A membership certificate may be issued to each member as evidence of entitlement to all of the rights, benefits, and privileges of the association.

Marketing and Purchasing Agreements-
In the marketing agreement, the association agrees to accept specified products of stated or better quality, to market them to the best of its ability, and to return to members all marketing proceeds less deductions for expenses and continuing capital needs. A similar contract with members can be structured for service and supply cooperatives.
This continuing or self-renewing agreement should specify that after it has been in force for some initial period, it should continue indefinitely unless the member (or the cooperative) states in writing a desire to cancel or modify it. A cancellation request must be made during a specified annual period as noted in the contract.
An agreement ensures sufficient control over products or services to be delivered so the cooperative can function. This is especially helpful in the first few years of operation when the cooperative is establishing its reputation as a responsible and successful business. Marketing and purchasing agreements have helped some cooperatives get needed outside financial help.
In some cases, cooperatives that use contractual agreements must file them with the State Government.

Revolving Fund Certificates-
When a cooperative retains funds from business with or for patrons as capital investments, it issues a written patronage refund certificate or a similar document to the member as a receipt for capital investments that will eventually be revolved or redeemed. Meanwhile, the retain is used to finance the business. Member investments may be deductions based on per-unit of product handled or services used, reinvested patronage refunds, or original capital subscriptions, if a nonstock cooperative.

Charter Member Meeting

According to most statutes under which cooperatives are organized, articles and bylaws must be adopted by a majority vote of the members or stockholders.
For convenience in organizing, only the persons named in the articles of incorporation, called the charter members, must vote to adopt the bylaws. These persons are regarded as members or stockholders as soon as the articles of incorporation are filed. A good practice, however, is to invite everyone who has signed a premembership agreement to the meeting to ratify the bylaws.
A temporary presiding officer conducts this first meeting and reports that the articles of incorporation, have been filed. A draft of the proposed bylaws is presented, discussed, and adopted as read or amended.
Further action is usually needed to accept those members or stockholders who have subscribed for stock or agreed to become members but are not named in the articles of Incorporation. Under some statutes, however, the incorporators can adopt the bylaws as incorporators rather than as members or stockholders.
If members of the first board of directors have not been named in the articles of incorporation, they should be elected at this meeting.
Here are some suggestions for selecting the first board of directors:

use a nominating committee to develop a panel of candidates for the board;
select only members as candidates;
nominate two candidates for each position; and
vote by secret ballot.

Implementing the Business Plan

Once the bylaws have been adopted, the board of directors should meet as soon as possible to avoid having to send out legal notices of it to directors. Directors approve various resolutions designed to make the cooperative an operational business and ready to serve members.
Officers of the cooperative are elected and directors assigned to individual or committee responsibilities to implement the business plan. Members may be assigned to committees, but at least one board member should be on each committee to enhance communications. Target dates are established for important events such as groundbreaking, construction completion, dedication or open house, and full-capacity operations
The board needs to act immediately on some specific items:

conduct a membership drive; adopt a form of membership application or stock subscription;
adopt the forms for contractual agreement if used;
acquire capital;
select a bank in which to deposit funds; initiate steps to hire a manager;
authorize officers or employees to handle cooperative funds and issue checks;
design and install an accounting system;
provide for bookkeeping and auditing services;
print the articles of incorporation, bylaws, and other member documents for distribution to all members;
bond officers and employees in accordance with bylaws; and
pick a business location and seek bids for facilities and equipment.

A director training schedule should be established to discuss topics such as legal liability, cooperative finance, management supervision, and member relations. Session topics for the entire membership should include member responsibilities, cooperative operating policies, and tax treatment of patronage refunds.

Membership Drive

A new cooperative must have enough members to start operation and justify its existence. Additional members may be needed to financially strengthen the association or increase its volume.
Cooperatives that provide supplies and services normally have open membership. Those that process and market or bargain for price and contractual agreement or offer limited services may have a selective membership policy. Members should feel a responsibility to recommend others believed to be qualified users. That's why it's important for members to understand what their cooperative is, how it operates, its benefits, and its limitations.
People join cooperatives primarily for economic benefits-services and increased income. Most people want to be shown the advantages of cooperative membership. If those benefits are not evident, few prospects will join and even if they do, they probably won't regularly patronize the cooperative.
New members may be asked to join by purchasing stock or paying a membership fee and signing an application. The applicant should get a receipt for funds collected. The cooperative must follow-up with membership and stock certificates and related material.
Accurate accounting of money is an extremely sensitive issue. The cooperative should retain an independent accounting firm to assist in recording funds prior to any sale of stock or the collection of substantial amounts of money.

Acquiring Capital

Starting a new cooperative can create a need for substantial capital. A problem develops when trying to operate with limited membership equity capital and sizable total capital requirements. Therefore, member equity must be carefully weighed against projected cooperative capital needs.
Methods for acquiring capital and classification of financial instruments are covered under the "Feasibility Analysis" section. The task of financing a new cooperative with member equity alone is usually impossible. Therefore, additional sources for funds are needed. Local area banks are good possibilities. Others are the cooperative banks in the Farm Credit System, the National Cooperative Bank, State Rural Development offices, and other governmental funds, depending on what may be available at the time. Another option may be to sell preferred stock to members and others in the community.
The best source of financing for a cooperative is from members. The more financing members provide, the less the cooperative business will need to borrow from other sources. Usually, cooperatives sell common or preferred stock to members to raise capital. The common stock is usually tied to voting rights, but there are several types. For example, class A could be designated as voting stock and limited to one share per member while class B could be nonvoting stock that members could purchase based on their anticipated volume of business.
Preferred stock also can be sold to outside investors and members. Although owners of preferred stock have no voting rights, this stock carries less risk than common stock. Members of the community in which the cooperative is to be located may purchase preferred stock to keep the cooperative as a local business.
Conservatively estimate the amount of capital raised from preferred stock sales. Some States limit dividends that can be paid on both common and preferred, thereby making preferred stock unattractive to outside investors. Stock sale programs should be carefully reviewed by an attorney to ensure conformance with State and Federal security laws.
Commercial banks, particularly those in the area where the cooperative will operate, are an important source for loans. Personnel of these banks already are familiar with the economy in the area and probably know many of the cooperative's prospective members. These banks also offer a variety of banking services the cooperative will need once it begins operations. New cooperatives often can get loans with the help of Federal Government agencies or other guarantees.
Farm Credit System banks, particularly the St. Paul Bank for Cooperatives and CoBank, both of which are nationally chartered, are major sources of credit to newly organized and established agricultural and rural utility cooperatives and their members. Farm Credit System banks make loans to cooperatives to purchase fixed assets and operating loans. Individual farmers borrow funds to purchase land and to finance farm operations. The system is used also to finance members' share of equity capital for a new or expanding marketing, purchasing, or related service cooperative.
National Cooperative Bank is another source for loans and startup financing. Its financing activities are directed primarily to nonagricultural cooperatives including consumer, worker, retailer-owned, health, housing, and other types of cooperatives. Funds may be available for certain types of cooperatives, including those in rural communities.
Cooperative leaders need to carefully develop the loan application to make a good first impression on the potential lender. Lenders will insist on seeing certain key documents before considering a loan request. Special expertise is important in helping prepare these documents, including that of an economist, marketing specialist, attorney, certified public accountant, and perhaps others whose specialty is related to the activities proposed for the cooperative.

The most requested documents are:

Projected Volume of Business-

The best source for these projections comes from the potential member survey conducted as a part of the feasibility study. If the business is seasonal, it is important to accurately characterize how production or purchasing and sales occur to determine the appropriate facility and equipment needs.

Market Information-

Lenders don't want to finance a proposed business without a market. They want to know who the customers are, if markets have been located, and expected prices and volumes.

Cash Flow-

Projected cash flow (Appendix IV) information may be the most important to the lender. It gives a continuous month-by-month cash income and expense prediction. Key items in the final analysis are the net cash flow for the month and the ending cash balance. Lenders are particular concerned with the net ending cash balance. Does the cooperative have sufficient funds to operate and pay bills? Should more equity capital be injected? Is additional borrowed capital needed, particularly for operating during heavy seasonal periods? Can controllable expenses be reduced during periods of low income? Are cash reserves adequate to overcome adverse market swings? And, most importantly, can the cooperative repay its loans? Most lenders want 3-year projections.

Operating Statement-

For a new cooperative, the projected operating statement provides an expected picture of operations for one or more years (Appendix IV). It contains information on sources of income as well as expenses. The key figure is the "bottom line" that indicates whether net margins (profits) are anticipated. A monthly operating statement provides information to lenders and assists the board in making major policy and management decisions.

Balance Sheet-

For the newly formed cooperative seeking financing from outside sources, the projected balance sheet is extremely important (Appendix VI). It projects the future value of the cooperative and indicates its solvency and ability to satisfy creditors' claims when due. In summary, it lists the cooperative's assets, liabilities, and net worth.
Schedule of fixed asset costs and depreciation. Lenders look for collateral to secure their loans. A condensed listing (Appendix V) quickly conveys what the cooperative needs to purchase or lease. To assure the lender that depreciation has been accurately noted, it is also desirable to outline in table form the classes of assets, cost, life expectancy, and annual depreciation.

Loan Package-

A summary of scheduled financing needs and sources saves the lender time in assembling the various pieces of data for analysis. It should show major items for which loans and member equity will be spent (Appendix VI). These items are extracted from the projected cash flow data. A brief resume of the designated manager should be included in the documents given to the potential lender. If a person has not been chosen, the manager's job description should be included.

Manager Selection

Selecting the manager is one of the most critical task for the board of directors. The success of the cooperative depends more on the manager than any other individual. The manager directs the day-to-day operations.
The organizing committee begins the task of manager selection by developing a position description. A supplemental statement should indicate the relationship and responsibilities of a manager and the board of directors in a cooperative.
Long and varied lists have been compiled of qualities to seek in a manager, but three areas are suggested-education, experience, and ability to work with people. Manager candidates need to be judged in these areas from three perspectives-commodity expertise, business requirements generally, and knowledge of cooperatives in particular because of their unique characteristics.
Finding a manager with both education and experience with cooperatives is important for several reasons. Unlike investor-owned corporations, a cooperative manager should not participate in cooperative ownership. Career decisions could conflict with ownership interests. Cooperatives do not offer managers stock options or profit sharing, although some cooperatives have incentive plans. The candidate needs to understand the special nature of the cooperative's patrons because they're both customers and owners. This dual relationship adds a unique dimension to a candidate's requirements to work with people on a daily business basis.
Good managers are hard to find, especially for cooperatives. The best source is often other cooperatives. Leads may be obtained by contacting the managers of other cooperatives, directors of State cooperative councils, national cooperative organizations, the advisers who helped form the cooperative, and employment agencies.

Acquiring Facilities

The job that probably takes the most foresight, analysis, judgment, and timing is acquiring a business site, building, machinery and equipment, and other supplies. The steering committee's business analysis is the blueprint. The newly selected manager should participate in facility decisions.
Facilities should be located conveniently for members but enable establishing good distribution links with suppliers, markets, and other business services.
Directors need to study facility requirements thoroughly. Their decisions will influence the cooperative's operations for many years. It's important to avoid using so much capital for fixed facilities and startup that cash flow is jeopardized.
A useful planning tool is an acquisition schedule and budget. It would list items in the logical order they should be acquired, based on need, delivery time, loan requirements, funds available, and other factors. This should be built into the cash flow projection for the startup period. Changes to this plan should be analyzed before enactment.

General Rules for Success

Several basic rules for successful formation of a cooperative apply to more than one step of the process and to continuing operations. Some rules are unique to the cooperative form of business. They include effective use of advisers and committees, keeping members informed and involved, maintaining good board/manager relations, following sound business practices, conducting businesslike meetings, and forging links with other cooperatives.

Use Advisers and Committees Effectively
Organizing human resources and effectively using their expertise is central to any successful business. Maximum participation by potential members is crucial to the success of the cooperative.
Selecting potential members with an eye for expertise is important in setting up the general steering committee. Finding true specialists may not be possible among the leaders interested in organizing a cooperative. However, some may have an interest in areas that enables them to better understand the "language" of technical advisers.
It's important to have an adviser on cooperative organization work with others in helping them apply their expertise to the cooperative situation whenever it differs from other forms of business.
Subcommittees used in the formation process should focus on membership, facilities, site selection, finance, legal documents, and communications. In some cases, one or more of these can be combined.
Committees also are useful in the ongoing management of the cooperative. Committees within the board can specialize in the same areas used in the formation process. Additional temporary or permanent committees might include advisory groups for youth and young member activities, education and training, long-term planning, commodities and services, member and public relations, and legislative affairs.

Keep Members Informed and Involved
Member responsibilities start with the conception of the cooperative and remain throughout its life to assure successful organization, sound management, and operation.
The communications and education function needs to be an integral activity of the management team. It requires the assistance, knowledge, and involvement of cooperative staff and member leadership groups. Effective communications and education programs require financial support and must be backed by specific board and management policies.
When members are involved and informed about the cooperative, they measure their needs in terms of dollars and are more willing to invest in and patronize the cooperative. Cooperative members should be intimately familiar with it and assume a positive, broad role in its management and direction:
understand its purpose, objectives, benefits, limitations, operations, finances, and long-term plans,
read and understand the articles of incorporation and bylaws,
know that laws limit their rights or powers and those of their board of directors,
Understand that bylaws or policies of the elected directors may further limit their operations by establishing member obligations, regulations and quality controls exceeding those prescribed by legal statutes and provide equity (risk) for the cooperative business.
Most cooperatives have a small beginning and find it necessary to borrow. Later, as they become established and business services expand, they generally find it neither necessary nor wise to rely on only member capital to meet all financial needs. The member or equity capital is used as a base to apply for a loan.
In summary, members' participation in affairs of their cooperative increases their feeling of ownership and responsibility for its success.

Maintain Good Board-Manager Relations
The differing responsibilities of the board of directors and the manager must be clearly understood and carried out.
Directors represent members and are legally responsible for the performance and conduct of the cooperative. All corporate powers of the cooperative, other than those specifically conferred on members, are vested in its directors and outlined in the bylaws and in State and Federal legal statutes.
Directors' three major responsibilities are to set policies, employ and evaluate the general manager's ability to carry them out, and provide adequate financing for the cooperative.
The board also has some specific management responsibilities such as functioning as trustees for the members in safeguarding their assets in the cooperative; setting goals, objectives, and general policies; adopting long-term strategic plans; employing a competent manager and evaluating performance; preserving the cooperative character of the organization; establishing an accurate accounting system; adopting an annual operating budget; appointing an outside firm to perform an annual audit; controlling the total operation; and authorizing distribution of cooperative net earnings and redemption of members' equities.
The board, in turn, delegates responsibility for daily operations to a hired general manager or chief executive officer. The general manager hires or discharges employees, including department heads, who with the manager comprise the hired management staff or team.
Responsibilities of hired management include managing or directing daily business activities; carrying out policies set by the board; setting goals and making short-term plans; employing, training, and discharging employees; organizing and coordinating internal activities in compliance with cooperative goals and objectives and board policies; keeping complete accounts and records and developing an annual operating budget; and providing the board with periodic reports.
Questions often arise as to the division of responsibilities between the board and hired management. Sometimes they overlap and an exact division cannot be made. Some factors to consider are: the time period-long-term decisions are the responsibility of the board while management makes short-term decisions; idea decisions are usually introduced by the board and actual decisions implemented by management; decisions involving policy are the responsibility of the board, and cooperative functions are handled by management; broad primary control activities usually concern the board, while secondary controls pertaining to short-run operations are the responsibility of management. When it comes to staffing, the board hires the manager who, in turn, selects the staff of the cooperative.
Use of policy and procedure manuals and job descriptions along with frank discussions of questions when they arise can help maintain an understanding of the division of responsibility.

Conduct Businesslike Meetings
A cooperative is a business so its meetings should be conducted in a businesslike manner.
Policy should be established for determining a reasonable quorum for membership and board meetings. A quorum is the specific or minimum percentage of members required to be present to conduct official business. Quorum requirements are sometimes written into State statutes, but should be discussed in the bylaws. As membership expands, the percentage quorum increases the actual number needed. Setting the quorum too high increases the risk of not getting enough member participants to deal with business matters needing attention.
Parliamentary procedure is appropriate for orderly democratic group action. It enables the chair to lead a group smoothly and efficiently in determining the wishes of the majority while protecting the rights of the minority.
A good meeting just doesn't happen. It results in carrying out several successive steps: planning ahead, involving members, following a published agenda, and following through on meeting actions.

Follow Sound Business Practices
The major challenge to cooperative members, the board of directors, and operating management occurs after business operations begin. Many of the startup responsibilities continue after the cooperative begins operating.
For example, it's critical to operate on a sound business basis to avoid year-end losses. Requirements include developing and installing a double-entry accounting system, preparing financial reports including operating and capital improvement budgets, reporting to the membership in a clear and timely manner, and conducting long-term planning.
Beyond complete and accurate documentation of income and expenses, a cooperative must keep exact member records. They account for members' initial and subsequent investments and member purchasing, marketing, and/or services used to determine patronage allocations from net earnings. Members also need these records for their own personal accounts, particularly for income tax purposes.
The management staff prepares periodic operating statements and balance sheets to inform the board and members on how the cooperative is performing and its financial condition. A full report is typically issued annually, with abbreviated monthly or quarterly reports for board use. Reports should come often enough for the board to satisfactorily monitor business activities, take appropriate actions, and to keep members informed on how their cooperative is progressing. An annual independent audit serves as an outside appraisal of the cooperative's financial condition, a check on the business and accounting procedures, and how the cooperative has conformed with tax and other legal requirements.
Once the cooperative is organized and operating, members need to consider how they want it to grow. That takes both short- and long-term strategic planning. Long-term planning, which looks 3-to-5 years ahead, usually gets inadequate attention. But this is becoming more important because of more rapid technological, economic, and social changes. Planning involves developing a vision and mission statement, appraising the future, assessing the external and internal business environment, defining desired goals with stated objectives, and developing a course of action to reach them.

Forge Links With Other Cooperatives
An early exercise to determine whether to start a new cooperative was to investigate the alternative of linking with an existing cooperative that could expand its service territory. Even if starting a new cooperative is the best course of action, the search for beneficial links with other cooperatives should continue.
Alliances with regional cooperatives or other businesses may be valuable sources for supplies, marketing outlets, and related services. Membership in State and national cooperative associations can keep the new cooperative abreast of what others around the country are doing. These associations can be sources of education and training programs, legislative and public relations support activities, and help identify sources of special expertise.

Avoiding Potential Pitfalls

New organizations are most vulnerable in their early formative years. Here are some tips for new cooperatives to avoid potential pitfalls:

1. Lack of clearly identified mission-A new cooperative shouldn't be formed just for the sake of forming one. The potential member-user must identify a clear mission statement with definite goals and objectives.

2. Inadequate Planning-Detailed plans for reaching defined goals and the mission are important. In-depth surveys of the potential member-user needs coupled with business feasibility studies are necessary. Stop the organizational process if there isn't sufficient interest in the cooperative by potential member-users or if it isn't a sound business venture. The human cost in time and organization expense may be better used elsewhere.

3. Failure to use experienced advisors and consultants-Most persons interested in becoming member-users of a new cooperative haven't had cooperative business development experience. Using resources persons experienced in cooperative development can save a lot of wasted motion and expense.

4. Lack of member leadership-Calling on the services of experienced resource persons can't replace leadership from the organizing group. Decisions must come from the potential member-user group and its selected leadership. Professional resource persons should never be in decisionmaking positions.

5. Lack of member commitment-To be successful, the new cooperative must have the broad-based support of the potential member-users. The support of lenders, attorneys, accountants, cooperative specialists, and a few leaders won't make the cooperative a business success.

6. Lack of competent management- Most cooperative members are busy operating and managing their own businesses and lack experience in cooperative management. The directors hire experienced and qualified management to increase the changes for business success.

7. Failure to identify and minimize risks-The risk in starting a new business can be reduced if identified early in the organizational process. Careful study of the competition, Federal, State, and local Government regulations, industry trends, environmental issues, and alternative business practices helps to reduce risk.

8. Poor assumptions-Often, potential member-users and cooperative leaders overestimate the volume of business and underestimate the costs of operations. Anticipated business success that ends in failure places the organizers in a "bad light." Quality business assumptions tempered with a dose of pessimism often proves to be judicious.

9. Lack of financing-Regardless of the amount of time spent in financial projection, most new businesses are underfinanced. Inefficiencies in startup operations, competition, complying with regulations, and delays often are the causes. Often, the first months of business operations and even the first years are not profitable, so adequate financing is important to survive this period.

10. Inadequate communications - Keeping the membership, suppliers, and financiers informed is critical during the organization and early life of the cooperative. Lack of or incorrect information can create apathy or suspicion. The directors and managment must decide to whom and how communications are to be directed.

Considerable time and effort are spent in starting a new cooperative. Avoiding the pitfalls experienced by others helps to increase your effort to be successful.

How to Start a Cooperative Business

2009-09-04T01:44:00.002-07:00

How to Start a Cooperative Business

2009-09-04T01:44:00.001-07:00

The 7 Best States to Start a Business

2009-09-04T01:42:00.001-07:00

When it comes to starting a business, the question of "where" can be just as important as "what," "why," and "how." Some states offer better business climates for entrepreneurs than others. And in today's economy, entrepreneurs need all the help they can get when launching a new business.

The problem is that there's no one measure for evaluating a state's businesses environment. Do you look at the education of the workforce? The amount of regulations? The current level of economic growth?

The best method might be to combine as many factors as possible. U.S. News decided to look at two comprehensive studies that take completely different approaches to measuring the friendliness of the 50 states to entrepreneurs: the 2008 New State Economy Index, by the Kauffman Foundation and the Information Technology and Innovation Foundation, and the Small Business Survival Index 2008, by the Small Business and Entrepreneurship Council.

We combined the rankings of these two studies to help come up with our list of the top seven states for starting a business. Here is what we found:

1. Washington. The Evergreen State tops the list by coming in second on the New State Economy Index and fifth on the Small Business Survival Index. Washington is first among the states in steps toward energy efficiency and using more alternative-energy sources. It also has a highly productive manufacturing sector, signaling high wages and a tech-intensive economy. Washington leads the nation in value added per production hour as a percentage of the national average--the difference in value between inputs in the production process and the value of the units as finally sold. But in addition to these nonpolitical factors, Washington also has very low taxes, making the costs of growing a business quite low. It does not have its own income or capital-gains taxes, either personal or corporate.

2. Virginia. This state is not just "purple" in terms of its voting patterns. It also mixes the highly educated workforce and technological sophistication of blue states like Massachusetts with the low taxes and spending of red states like Texas. Virginia is one of the leaders in the information technology revolution, with the highest number of IT occupations in non-IT industries as a share of total jobs. Virginia also lands in the top 10 of states with the lowest consumption taxes.

3. Colorado. It's probably not a coincidence that one of the fastest-growing states (the population is estimated to have grown 13 percent from 2000 to 2007) is also one of the best to start a business. What's attracting so many people to Colorado might be the third-most-educated workforce in the nation. That brainy workforce has pushed Colorado to fourth place in terms of the number of patents issued to companies or individuals per 1,000 workers. The state also finishes in the top half of all states in terms of the level of income, capital gains, consumption, and property taxes.

4. Texas. Globalization has made it possible for entrepreneurs to serve markets in not just their immediate community, region, or country but the whole world. If your ambition is that encompassing, Texas might be a good place to start. Texas has the most globe-focused manufacturing sector in the country, with export sales at $69,268 per worker--the highest of any state. Another incentive for business owners is the cost of labor--Texas has the lowest workers' compensation costs of any state. The Lone Star State also lacks an income or capital-gains tax for individuals,

5. Nevada. Nevada has a reputation as a state where "anything goes." That is almost true when it comes to the state government's policies toward business. Nevada has no income or capital-gains tax for individuals or corporations, the 15th-lowest property taxes, and the second-lowest number of government employees. But that low level of government has not come at the cost of the state's economic infrastructure. Nevada ranks high for several factors important for future innovation, including the export focus of its manufacturing sector, the productivity of its manufacturing sector, number of patents issued, and the electronic sophistication of its healthcare system.

6. Utah. While Utah has a reputation for being one of the most culturally conservative states, don't confuse that conservatism with a lack of dynamism or risk-taking. Utah has the third-fastest-growing firms in the country. It also ranks third in "job churning"--the number of new start-ups combined with business failures. It might seem strange to count failures as a good thing. But a large amount of job churning indicates that the state's economy is replacing old and inefficient businesses with new and more efficient ones. Utah's government lowers the cost of doing business by making few health insurance mandates--the fourth fewest in the nation of any state.

7. Florida. The Sunshine State's economy has been hit hard by the housing crisis, more than almost any other state. But Florida's economy has some fundamental advantages that are not going away simply because of a recession. Its low corporate and unemployment taxes and nonexistent individual taxes attract business people. Additionally, Florida has done a good job adjusting to new economic and technological trends: It ranks ninth in the nation in the export focus of its manufacturing sector and eighth in the number of Internet domain names created per firm.

The 7 Best States to Start a Business

2009-09-04T01:42:00.000-07:00

Five Best States to Start a Business

2009-09-04T01:33:00.000-07:00

When it comes to starting a business, the question of where can be just as important as what and how. Some states offer better business climates for budding entrepreneurs, who need all the help they can get in today's economy. The problem is, there's no single measure for evaluating a state's business environment. Do you look at the education level of the workforce? The amount of regulation? The rate of economic growth?

The most useful benchmarks include as many factors as possible. U.S. News looked at two comprehensive studies that take different approaches to measuring a state's ability to promote entrepreneurship: the 2008 New State Economy Index from the Kauffman Foundation and the Information Technology and Innovation Foundation, and 2008's Small Business Survival Index from the Small Business and Entrepreneurship Council. We combined the rankings of these studies and came up with a list of the five best states for starting a business:

Washington. The Evergreen State tops the list--coming in second on the New State Economy Index and fifth on the Small Business Survival Index. A big factor: Washington ranks first in taking steps to advance energy efficiency and use alternative-energy sources. It also has a highly productive manufacturing sector, high wages, and a technology-intensive economy. The state's manufacturing workers lead the nation in the value they add to production measured by each hour of work. What's more, Washingtonians don't pay state taxes on income or capital gains.

Virginia. This state is not just purple in its voting patterns. Like blue states such as Massachusetts, it mixes a highly educated workforce with technological sophistication. And like red states such as Texas, Virginia is known for its low taxes. This state boasts the highest number of information technology jobs in non-IT industries as a total share of jobs, which indicates that Virginia's businesses are more technologically advanced than businesses in other states.

Colorado. It's not a coincidence that one of the fastest-growing states is also one of the best places to start a business (Colorado's population grew an estimated 13 percent between 2000 and 2007). It also boasts the third-most-educated workforce in the nation. Another plus: Colorado levies lower-than-average taxes on income, capital gains, consumption, and property.

Texas. Globalization has made it possible for entrepreneurs to serve markets not just in their immediate communities, regions, or countries but around the world. If your ambition is that encompassing, Texas might be a good place to start. This state has the most globally focused manufacturing sector in the country, with export sales of $69,268 per worker--the highest of any state. Another incentive for business owners is the cost of labor, as workers' compensation benefits relative to wages in Texas are the lowest of any state, indicating lower premiums for employers.

Nevada. Nevada's "anything goes" reputation is almost true when it comes to the state government's business climate. The state has no income or capital-gains tax for individuals or corporations. It has the 15th-lowest property taxes among states, and the second-lowest number of government employees. Nevada also ranks high for innovation. It has one of the most technologically sophisticated healthcare sectors in the country and ranks third among all states in percentage of prescriptions that can be written electronically.

How to Buy Gold Coins and Bullion

2009-08-31T23:07:00.000-07:00

Building Your Gold Portfolio
Portfolio diversification is the hallmark of the prudent investor. For millions worldwide, sensible diversification in the overall portfolio includes gold ownership. To help you meet that essential need, we offer four primary groupings of gold items:

1. Contemporary gold bullion coins and bars

2. Low-premium, historic European and S.American gold coins

3. Low-premium, historic U.S. gold coins

4. Graded historic U.S. $20 gold pieces

How you structure your portfolio depends upon your personal financial needs and goals, and should be done in concert with one of our experienced and knowledgeable brokers. You no doubt have an interest in gold as a means to weathering the uncertainties ahead and maximizing your return.

How to Buy Gold in Five Easy Steps

Though the task for the newcomer may seem daunting and a bit confusing, a portfolio diversification into gold is really a very simple process that some tend to over-complicate. Having a good sense of what you want gold to accomplish for you is the first hurdle.

You can add gold to your portfolio today.

Essentially, there are three broad categories of gold investors:

1. Those who wish to hedge uncertainty and possible financial disaster

2. Those who wish to simply make a profit.

3. Those who wish to combine hedging with potential profit

Your objectives will determine what you include in your portfolio. Some thought and attention must be given to which of the three categories you belong, and making that determination will speed along the configuration process once you contact one of our brokers.

Once you have a handle on why you are buying gold, deciding what to buy becomes a relatively easy process that can be sorted out between you and your broker at USAGOLD-Centennial Precious Metals. In The ABCs of Gold Investing: Protecting and Building Your Wealth with Gold, author Michael J. Kosares advises that you plan your portfolio in consultation with a gold market profressional. "Stock brokers, financial planners, mutual fund sales personnel, and the like," he says, "have little knowledge of this highly specialized field. As a result, they sometimes confuse more than help. . . Whether to preserve assets or to make a profit, plan carefully under the guidance of a gold professional."

Our experienced account representatives are well-versed in the four product categories mentioned above and the role each plays in the overall gold portfolio. In addition, each has many years experience matching the three client profiles immediately above with the proper portfolio mix.

USAGOLD-Centennial Precious has helped thousands of investors become successful gold owners. We can help you.

New Auto Loans

2009-08-24T21:01:00.000-07:00

New Auto Loans
Looking for a new car? Get the loan you need for the vehicle you want! Our lending partners offer competitive rates and a variety of loan terms to choose from. Financing is available, even if you have less than perfect credit.
It's as easy as writing the dealer a personal check! Shop like a cash buyer. We put you in the driver's seat with great rates and an easy online process.
Private Party Auto Loans
Private party financing available (no dealer required). Buy from the classifieds, a friend or eBay. Get pre-approved and know how much you can buy.
Refinance Auto Loans
Pay off your existing auto loan and save! Lower your monthly payment and save hundreds of dollars over the life of your loan by refinancing with a great rate. Start saving with your next payment.
Motorcycle Loans
Finance your motorcycle without the hassles or headaches. Take advantage of competitive rates and flexible loan terms.

BE 100 PERCENT SURE HOW TO ACCESS THE EQUITY IN YOUR HOME

2009-08-24T20:44:00.000-07:00

Be 100 Percent Sure How To Access The Equity In Your Home

100% Equity Home Loan Education

You've probably heard about home equity loans, but what about a 100 percent home equity loan?
It's one way to free up resources from your home. Another way is to simply refinance your current mortgage. Either route you choose, you may be able to tap into the equity that you've accumulated.
How A 100 Percent Home Equity Loan Works
To begin, all lenders establish a maximum loan-to-value (LTV) ratio (i.e. all outstanding loan amounts divided by the home's appraised value). For example, a lender that establishes a maximum LTV of 80 percent would allow $80,000 to be borrowed if the appraised home value is $100,000 (80,000/100,00 = 80% LTV).
With a 100 percent home equity loan, you actually borrow 100 percent of your home's value (e.g. $100,000/$100,000 = 100% LTV).
Under the above example with $80,000 in existing loan amounts, the borrower could access $20,000 of equity; the difference between the appraised home value and the amount of the outstanding loans.
Simply stated, a 100 percent home equity loan means you open an additional loan or line of credit accessing your home's equity. The home equity loan or credit line combined with your current mortgage balance totals 100 percent of your home's value, and you end up with more than one loan.

100 Percent Mortgage Refinance

While the difference is subtle, a mortgage refinance works a little differently.You still access the equity in your home, but you're getting to it in a slightly different way. With a refinance, you replace your existing loan with a new loan and ask for an additional amount (equal to the equity value) which is added to the new loan. With a refinance equal to 100 percent of the home's value, you end up with one loan instead of multiple loans.

Should You Access Your Home's Value?

There isn't a right or wrong answer. However, borrowing 100 percent of your home's value may offer you greater benefits than other options.
A 100 percent home equity loan or 100 percent mortgage refinance may provide:
Larger Amount Of CreditBorrowing 100 percent of your home's value may mean access to more funds than from another source(i.e. credit card).
Lower RatesTypically, loans secured by a home have lower interest rates than credit cards or other unsecured personal loans.
Tax Deductibility1Generally, the interest on a home equity loan may be tax deductible; whereas, there may be no tax benefits for most personal loans.
Home Equity Loan Options Above 100 Percent
Some lenders allow homeowners to borrow more than the value of their home…more than 100 percent LTV.

There are some lenders that offer 125 percent home equity loan products. That allows borrowers to access 25 percent more than their home's appraised value.
While a 125 percent home equity loan works similarly to a 100 percent home equity loan, there are a few considerations.
125 Percent Home Equity Loan Advantages
You can use a 125 percent home equity loan to consolidate high interest rate credit cards or other loans.

A 125 percent home equity loan offers the borrower another refinancing option.
A 125 percent home equity loan offers the borrower more likelihood for cash out if the first mortgage balance is high.

125 Percent Home Equity Loan Risks
Higher LTV ratios often mean higher interest rates for the borrower.
Higher interest rates could translate into a hefty monthly house payment.
IRS regulations won't allow a tax deduction on any part of a home equity loan that exceeds the home's fair market value (100 percent).

If you plan to sell your house, you may have to come up with more money at closing because you have borrowed more than your home is worth. In other words, if you don't sell your home for more than 125 percent of its value, the equity you may have used for a down payment on a new home could be tapped out.
Some lenders won't offer 125 percent home equity loans as a second mortgage.
Using Your Home Equity Wisely

Experts don't recommend tapping into your home equity for just anything. However, if you choose to access 100 percent of your home's equity, there are many ways you could use the available funds: making home improvements, consolidating other higher-interest rate credit accounts to simplify monthly finances, purchasing big-ticket items or clearing up medical expenses, for example.

Even though home equity loans can carry lower interest rates than unsecured credit, there is still some risk. Defaulting on any home loan, including a 100 percent home equity loan or 100 percent mortgage refinance, could mean losing your house.
Keeping that in mind, there are times when using 100 percent of your home's equity or home's value may be the right decision for you.

Business Life Insurance

2009-08-24T20:10:00.000-07:00

Business Life Insurance

Small business owners work hard to establish their business and achieve success. However, there may be planning issues that need to be addressed to be sure success continues. Some of these issues may be

Business Continuation
What will happen to your business at your death? Will your heirs need to sell the business to obtain cash to pay estate taxes and liabilities? Will your heirs and surviving owners work together harmoniously?

Key Employees
Employees are an integral part of a business' success. As a result, you should ask yourself: Could your business continue to be as profitable in the event of the unexpected death of a key employee?

Employee Benefits
A major problem facing many businesses today is attracting and retaining top-caliber employees. As a small business owner, you are aware of the importance of employee benefits and their contribution to your business success.

Key Employee Incentives
The Split Dollar Plan
The Split Dollar Plan is a plan whereby the employer and the employee share the premium payments, or the employer pays the entire premium to buy insurance on the employee's life. Usually the employer is guaranteed that, whether the employee lives or dies, it will get back all of its portion of the premium payments.For the employer, the plan can:
Provide an incentive for the employee to stay with the employer.
Provide a way to be selective in rewarding certain key employees.
Provide a source of liquid funds for the business through policy cash values when the employer owns the policy.
For the employee, the plan can provide:
Permanent insurance at term rates.
A hedge against future insurability for life insurance.
Plus, the plan is flexible. The premium can be level for the employee, employer, or both.
The Executive Bonus Plan
The Executive Bonus Plan is a way for an employer to help a key employee meet personal life insurance needs. The employer pays the premium and treats it as additional (bonus) compensation. The key employee is taxed on the bonus. The employer may pay an additional income tax-deductible bonus to offset this tax. The "premium bonus" plus the "tax bonus" can result in low, or no personal expense for the key employee's own life insurance.For the employer, the plan can:
Help retain key employees.
Allow the employer to be selective in rewarding certain key employees.
For the employee, the plan can provide:
Needed personal life insurance.
A hedge against future insurability.
Deferred Compensation Plan
The Deferred Compensation Plan is a contractual arrangement whereby a key employee, usually in a high income tax bracket, will receive a guaranteed number of fixed payments, beginning at retirement, in place of current salary increases or cash bonuses.For the employee, it can:
Allow the employee to remain in a lower income tax bracket.
Provide money at retirement.
Provide money for the family in the event of death.
For the employer, it can:
Help retain a key employee.
Attract a top employee.
Be used exclusively for select employees.
In the deferred compensation contract, prepared by an attorney, the employer can agree to:
Pay the employee a specified salary at retirement for a specified number of years.
Continue payments to the employee's beneficiary if the retired employee dies before receiving the full number of payments.
Pay a death benefit to the employee's beneficiary in the event of death prior to retirement.
The employee usually agrees to:
Remain with the employer until retirement.
Refrain from competing with the employer after retirement.
Cash value life insurance from State Farm provides an ideal means to provide the cash needed for Deferred Compensation Plan. The policy's cash values can provided needed funding for required payments when the employee retires, and the death benefit can be used if payments are to the employee's beneficiary.

AUTO INSURANCE

2009-08-22T21:24:00.000-07:00

We give you the various insurance schemes, details about what is insured, the Comprehensive Cover, Third Party Insurance and much more.Other online services include insurance online service. Get your vehicle insured online, and drive without a worry. Also read on about the major insurance companies.

Car Insurance Rates

Car Insurance Rates is your ultimate online resource for auto insurance. We provide company reviews, vehicle purchasing advice, valuable information on all types of policies, and more!

How Safe is Your Car?I'm going to buy a "family car" for my wife and I want to make sure it has good safety features. What should I look for?

If you are in the market for a new car, one of the main features you look for in your new car should be the safety features. You will want to be sure that your new car is safe for you to drive and safe for the road. Having a safer vehicle can get you a lower car insurance quote. Over time car safety has become more and more important and in response this importance many new cars safety has improved tremendously.

Your cars safety can protect you from serious injury or maybe even death if you are involved in a car accident. The safety of your car will vary depending on the level of protection your car offers you and your passengers. There are many different safety features that can be included in your car. The level of protection and safety of your car will depend on how many of the safety features are included in the car you decide to purchase.

When talking about safety features, there are three categories that have a combination of features that will determine the level of safety of your car. Knowing the level of safety that your car provides is a good way to get a lower quote on your car insurance.
The first category of safety features is the crash avoidance feature. This feature is composed of factors that will keep you from getting into a crash. The components of this safety feature category are Electronic Stability Control or ESC, Traction Control and Anti-Lock Braking Systems or ABS.

The second category of safety features is the crash protection feature. This feature is composed of factors that will keep you protected if you do get into an accident. The components of this safety feature are Seat Belts, Car Crumple Zones and Airbags.

The third category of safety features is the driver features. These features are considered to be apart of this component if they make driving easier and more comfortable for you. Seat Height Adjustment and Steering Wheel Adjustment are two components of this safety feature.
If your car has all of these features, you should feel comfortable in knowing that you have a pretty safe car an your risk of getting into an accident is lower and your chances of getting seriously injured if you are in a car accident are low as well. You can find out if your car has these safety features by asking you car salesman about them or you can even ask your mechanic to do a safety inspection on your car to let you know which components of the car safety features you have on your car.

Always remember the safer your car the lower your car insurance since a lot of car insurance companies are willing to give discounts to people who drive safe cars. If you feel the car you are interested in is not safe enough you can ask your car salesman for an upgrade or the cost of adding the safety features to the car. If you already have car and feel it isn’t safe enough ask your mechanic what you could do to improve the safety of your car.

What to Do if You Are Caught with Expired InsuranceI was pulled over and didn't have my proof of insurance. Is there anything I can do to avoid the fine?

Car insurance is the protection you need while you are out driving. It not covers you from financial loss but it also protects the investment you have made by purchasing your car. Therefore car insurance is definitely something that you don’t want to go without. Even though the minimum requirements for car insurance may vary from state to state, the one guarantee you can bank on is that every state considers car insurance mandatory coverage if you will be driving there. You can check with your local Department of Motor Vehicles or any car insurance provider in your state for guidelines on the minimum coverage requirements for car insurance in your state.

You will want to be sure that the car insurance you have meet those requirements. If they don’t you should discontinue driving until you are able to get the required car insurance you need to be considered a legal driver in your state. Car insurance protects you in the case your car is damaged. If you are unable to pay for the costly repairs, your car insurance will pay for it and all you will have to do is pay your deductible. Car insurance is also a big help if you were to incur medical bills due to an accident. If you don’t have car insurance you will put yourself a risk for financial stress.

Car insurance also protects you from having to pay costly fines if you were caught driving without it. Every state has its own specific penalties for driving without car insurance however the foundation of the stress and problems you will have to face is pretty much the same. If you are caught driving without car insurance or with expired car insurance, you will have a mountain of problems and maybe even debt on your hands. The first thing you will want to do is seek the advice of a lawyer. A lawyer can give you the specifics on the troubles you will face because of your disobeying the car insurance law in your state.

In some states the penalty for driving without car insurance or with expired car insurance is worst than the penalty for driving while drunk. You could risk losing your license for 6 months to a year; a very high fine which has been known to range from $150.00 to $300.00 or more and you may even be required to do community service. Some states will even make you pay for the cost of your court hearing that is equally expensive as the penalty. You could even be required to pay what is called no insurance surcharges that could require you to pay from $100.00 to $250.00 a year for a maximum of three years. This is how important driving with the proper car insurance is to you.
Some states may allow you to bring in proof of car insurance coverage to your court date and then they will either minimize the penalties or waive them altogether no matter if your purchased or renewed your car insurance after the date of your offense. However, some states will only drop the charges against you if you are able to show proof that you had car insurance coverage on or before the date of your offense.
Cash for Clunkers Program ExplainedWhat are the qualification requirements for the Cash for Clunkers program?

The Car Allowance Rebate System, commonly known as the “Cash For Clunkers” program, is an initiative set up by the federal government to get older, inefficient cars off the road, all while providing consumers incentives for purchasing a new and more environmentally friendly vehicle. Consumers could find that the cash incentives will save them thousands on a new car, which could result in lower costs overall for auto maintenance, gas and, possibly car insurance premiums. It’s up to each individual consumer to assess his/her personal benefits from the CARS program. This handy guide may be able to assist you in the process.

Car Allowance Rebate System (CARS) info
CARS is a government-funded program estimated to cost $1 billion that is designed to give consumers incentives to purchase or lease environmentally friendly vehicles. Consumers will be asked to bring a fuel inefficient vehicle to a participating dealer, and in turn they will receive a credit/rebate on the costs of a new and more fuel efficient vehicle.
The government hopes the program will boost sales of cars and trucks – not just vehicles produced by American manufacturers – all while increasing the number of safe and clean vehicles on the nation’s roads and highways.
If eligible, consumers will receive a credit of either $3,500 or $4,500 from the purchase of their new vehicle. An individual dealer may also offer extra incentives, so it’s wise to shop around to secure the best possible purchasing situation. For example, you may want to find a car that will cost less to insure, or one that incorporates new safety features.
The program is limited and will run from only July 1 through November 1 of 2009. If the $1 billion in funds runs out, the program will stop. It’s in your best interest to visit a dealership in person or online early to find out your eligibility. You will, however, be required to conduct the entire process at an in-person dealership. According to the U.S. Department of Transportation, only dealerships can participate in the CARS program.
Not all vehicles will be eligible for the program. To find out if your car or truck is eligible you can visit your local dealership or check with the CARS program online through the U.S. Department of Transportation.
Once your vehicle is accepted by the dealership, your car’s engine will be destroyed; the rest of the vehicle will be sold to a scrap yard for parts.
How do I know if I’m eligible?
While there are thousands of makes and models of vehicles on the road today, it can be difficult to narrow down simply exactly which vehicles are eligible. If you think your car might qualify, contact your local dealer of choice immediately. Not all dealers are required to participate, but most are choosing to be part of the CARS program because it will boost sales. As a rule of thumb, your car may be eligible if it meets these requirements:
Vehicle is less than 25 years old.
Vehicle gets less than 18 miles per gallon.
Vehicles must have been continuously insured for the past year. You will be required to provide proof of car insurance coverage.
Large trucks or SUVs may have different mileage requirements/specifications to be eligible.

There is danger at every corner when it comes to Indian roads. Your brand new vehicle, and it gets hit by someone who mistakes a highway for space, and his car for a space shuttle. Insurance can pay for your financial loss, at least.

We give you the various insurance schemes, details about what is insured, the Comprehensive Cover, Third Party Insurance and much more.Other online services include insurance online service. Get your vehicle insured online, and drive without a worry. Also read on about the major insurance companies.
When it comes to auto insurance, there’s a lot of questions about who exactly is covered under your policy. For instance, can your spouse drive your vehicle under your coverage? What about a friend? Or your children? Fortunately, most car insurance companies have been doing business long enough to have seen just about every possible scenario out there. Their specific insurance policies typically lay out exactly who is insured to drive your vehicle. Here’s a general look at who most insurers will provide coverage for and who they might not while driving your vehicle:
Your Spouse - Generally, when you apply for an auto insurance policy, your provider will ask you to list your spouse’s information as well. Insurers usually just automatically assume that your spouse will also drive your vehicle every now and then. In almost every situation, your spouse should be covered.
Your Children - Assuming they are of legal age to drive and have a valid driver’s license, you can typically list your children on your auto insurance policy so that they receive coverage. Depending on the insurance company, your children may have to be listed in order to be covered. Younger drivers are more risky to ensure, so talk to your provider before assuming they’re covered.
Your Friends - Who hasn’t been in a situation where you allow a friend to borrow your car for the day? As long as you directly give someone permission to borrow your car, they will typically be covered. A situation where the driver wouldn’t be covered is if your child was to allow one of his or her friends to drive the vehicle. Another important note, friends or any non-residents are usually only covered for one-time occasions. If you plan on allowing someone to borrow your vehicle for an extended period of time, you should notify your insurer.
Exclusions

Some car insurance policies may also list a set of exclusions as to who they will not provide coverage for. For instance, some insurance policies may specifically outline that it will only cover persons living in your household. It could also exclude drivers under a certain age, such as those under 21 years old.
Uninsured Motorists Coverage
Many people get the definition of uninsured motorists coverage confused. It is not meant to protect people who drive your vehicle, rather it is to protect you in the case of an accident that was caused by a driver without coverage. In most cases, your uninsured/underinsured motorists coverage does not extend to other people driving your vehicle, even if they are listed under your insurance policy.

What Happens if Someone Driving my Vehicle Isn’t Covered?
If for whatever reason someone who drives your vehicle isn’t covered by your insurance, there is a chance that they could be covered under their own policy. Some auto insurance policies will extend their coverage to any vehicle you drive, although these are often more expensive.
Car Insurance Glossary - Terms Like Passive Alarm, Waiver, Gap, Rental Coverage & More

Welcome to our insurance glossary of car insurance terms. If you have any questions about terms that are not included on this page please .

Additional Interest: A person or other entity (i.e. a corporation) that has an insurable interest in your vehicle, and may be named as such in your insurance policy. For example, when you finance a car through a bank, the bank is considered to have an “additional interest” in the car.
Anti-Theft Device: Any device designed to reduce the chance of a vehicle being stolen, or aid in the recovery of a vehicle if it is stolen. Examples include car alarms, keyless entry, starter disablers, “The Club”; etc.
Bodily Injury Liability: Legal liability for causing injury or death to another person.
Car Insurance Coverage: There are many "coverages." Liability, medical payments, uninsured motorists, collision, and comprehensive are the five major types of car insurance coverage.
Claim: The request for reimbursement that you make to the insurance company when you’ve been injured or your car has been damaged.
Collision Coverage: This is the coverage that provides protection for your car in the event of damage by an inanimate object, such as another car, a tree, or the side of a building.
Collision Deductible Waiver: If you have this type of coverage with your car insurance policy, your insurance company will pay your deductible if you are in an accident that is the fault of an uninsured motorist. This is not available in all states or with all policies.
Comprehensive Coverage: This coverage provides protection in the event of damage not caused by a collision (that kind of damage would be covered by your collision coverage). These other kinds of damage can include theft, fire, damage by extreme weather, etc.
Continuous Coverage: The length of time that you have maintained the legally required insurance on your vehicle. Lapses in coverage can result in higher rates.
Continuously Insured: The amount of time that you’ve been insured, without gaps. You can switch companies as many times as you want, but if you’ve let your coverage lapse, you could end up with higher premiums.
Credit Rating: Each individual consumer has a credit file with each of the three major credit bureaus - Equifax, Experian, and TransUnion. Each company uses a formula developed by Fair Issac’s; Co. (FICO) to determine the consumer’s credit rating. Insurers consider your credit rating when determining your insurance rates, since their own advanced statistical models have determined that consumers with good credit are better insurance risks, and vice versa.
Deductible: This is the amount that you are required to pay towards any damages. Your car insurance will cover any costs above this amount. The size of your deductible can greatly affect your car insurance costs.
Declarations Page (Dec Page): This is a one or two page document that details all the facts about your car insurance, such as your name and address, the vehicles covered, the deductible, the types of coverage, etc.
Defensive Driver Course: Classes offered or approved by the DMV designed to enhance defensive driving skills. Most car insurance companies offer discounts to customers who successfully complete these courses.
Depreciation: Age and wear can cause your car’s value to depreciate, or go down, over time.
Drive-Other-Car Endorsement: An endorsement or "rider" that broadens the definition of "covered auto" to include vehicles owned by others that are operated by the insured.
Earned Premium: The portion of the premium that is "consumed" during a partial policy term. If you terminate your policy early, you are only responsible for the earned premium portion (plus expenses), regardless of what you may have paid.
Effective Date: The date your coverage begins. You can find this on your dec page.
Emergency Road Service: This is optional coverage that provides services like tire changing, lock-out help, gas delivery, or towing.
Endorsements: These are also known as riders. They are changes to your coverage that are made after the effective date, like adding another car or raising your deductible.
Exclusions: Situations that are not covered by your car insurance. Your policy will show your specific exclusions.
Extraordinary Medical: This is optional coverage that protects you above and beyond your standard medical benefit coverage. Usually this would cover you if you were hospitalized long-term or permanently disabled.
Expiration Date: The date and time that your coverage ceases. Normally, the time is 12:01 AM - meaning one minute after midnight.
Extended Non-Owner Liability: An endorsement or "rider" that extends liability coverage for specifically named people operating any non-owned vehicle.
Financial Ratings: This term refers to the credit-worthiness and financial stability of insurance companies. AM Best, Standard & Poor's, and Moody's are the three agencies that assign financial ratings to insurance companies.
Financial Responsibility Laws: Each state requires motorists to be financially able to compensate the victims of bodily or property damage for which they are liable. Liability insurance is the easiest way to meet these requirements, however, those who can afford to do so may opt to post bonds instead.
Full Coverage Car Insurance: This is a confusing term. Many people think that having "full coverage" means that they will be covered no matter what happens to them. In reality, it only means that you have the full legal requirements needed in your state. Depending on your home state, it could be very little coverage in reality.
Funeral Benefits: This is optional coverage. If you were to die in a car-related accident, the insurance company would pay for a portion of your funeral costs.
Gap Insurance: Optional coverage for the difference in the amount owed on a vehicle and its replacement value. For example, if your car's replacement value is $4,000, but you still owe $5,000 on it and it’s totaled, your insurance company will only pay you $4,000 (unless you have gap insurance). The company that lent you the money for your car will require an immediate payment of $5,000. Gap insurance makes up this difference.
Garaging Location: It is assumed by car insurance companies that you keep your car at your home address. However, if you primarily keep your car in a different location, make sure your insurance company knows. It can affect your rates.
Good Student Discount: Most insurers provide discounts to high school students who receive good grades. The reasoning behind this discount is that insurers have found that students who are responsible enough to get good grades are generally more responsible drivers, and thus they pose less risk for the insurers.
HEV: Hybrid Electric Vehicle. If you drive an HEV, your rates may differ from those for a standard car. Make sure your car insurance company knows if you drive an HEV.
Hit and Run: An accident caused by someone who flees the scene before police arrive and without leaving insurance information.
Income Loss: This is optional coverage that protects you if you are in an accident that leaves you unable to work. Your insurance company can help compensate you for lost wages.
Indemnity: Restoration to the financial place you were prior to the accident. Insurance is designed to make you "whole again," but not to "enrich" you. Thus, it gives you indemnity - making you "whole" again.
Independent Agent: An agent who does not work for just one insurance company. Instead, he or she searches the market for the best place for his/her client's business.
Insurance Premium: Rates charged to an insured, reflecting the insurer's expectations for loss and adding in an element of profit. Premiums are typically paid monthly, but discounts are often offered for paying in advance, either quarterly, semiannually, or yearly.
Insurance Score: Score given to each insurance customer, based on complex statistical models, in order to determine his or her insurance risk. The better your insurance score, the lower car insurance rates you can expect to pay.
Insured: The person/people covered by an insurance contract. Insurance agreements commonly refer to the "insured" or "insureds."
Judgment: A decision by a court of law, typically ordering one party to pay another party a sum of money. Additional legal action is normally required in order to ensure that judgments are enforced. Many judgments go unenforced. When enforced, a the winner of a judgment can potentially garnish the wages and "attach" the bank accounts of the person or entity at fault.
Liability: A legal obligation to perform or not perform certain acts. Most commonly, this refers to monetary sums that must be paid in order to compensate for damages to people and/or property. The term can also be used to assign "responsibility" or "fault."
Liability Coverage: Insurance to cover damages that the insured is ordered to pay as a result of a court's decision holding the insured liable for injuries caused to people and/or property.
Lien Holder: A person or other entity (i.e. a corporation - usually a bank) with a legally securable interest in your vehicle. For example, a lending institution that loans you money for the purchase of your car has a lien on it.
Limits: The maximum amount an insurance company will pay. For example, if your collision coverage limit is $10,000, but your car sustains $15,000 worth of damage, you are liable to pay for the $5,000 worth of damage that goes beyond your insurer's limit.
Medical Payments Coverage: Insurance coverage that pays for damages sustained to the insured and his or her passengers without regard to fault. Also pays for damages suffered by the insured and covered family members for injuries sustained as a pedestrian at the hands of non-exempt vehicles.
MVR (Motor Vehicle Record): Also known as a "DL Printout," your MVR contains information about your driving record - tickets, accidents, convictions, etc.
No-Fault Insurance: Type of insurance in which the insured's own insurance company provides indemnity for damages sustained to the insured's own person and property without regard to fault. The purpose of no-fault insurance is to expedite the insurance claims process and keep cases from clogging the legal system.
No-Fault State: Any state that has at least some form of no-fault insurance as a matter of law. No state has "pure" no-fault insurance, but Michigan comes the closest.
Non-Passive Alarm: Alarm in which action on your part is required in order for it to be activated. Most insurers will offer a discount if your automobile is armed with a non-passive alarm - but a slightly greater discount if it has a passive alarm.
Passive Alarm: Alarm in which your action is not necessary in order for it to be activated. Most insurers will offer discounts for cars armed with passive alarm systems that are even greater than cars with non-passive alarms.
Personal Auto Policy (PAP): Standard car insurance policy contract that includes liability, medical payments, uninsured motorist, and physical damage protection.
Personal Injury Protection: Often called PIP, this insurance applies to no-fault states and covers the basic expenses incurred by the insured or his family in an automobile accident without regard to fault.
Physical Damage: Refers to damage to your vehicle. Such damage is normally covered by either collision or comprehensive insurance.
Pleasure Use: A vehicle that is not typically used for commuting to work or for any business purpose, but rather, primarily for enjoyment.
Policy Lapse: Any period of time in which your car is not insured. Policy lapses result in higher rates.
Policy Period: Time period in which the policy is active. Also referred to as "policy term."
Preferred Risk: Refers to an individual who is considered to present less risk to an insurer than the average motorist.
Premium: An individual's price for car insurance.
Primary Driver: The person who drives the car most frequently. If two or more people drive a car, the primary driver's record is taken into greater account than the secondary or tertiary drivers.
Primary Use: How the covered auto is most commonly used. Insurers typically classify vehicles into one of three categories - commuting (most personal autos), business use (corporate-owned or used by the self-employed for business purposes), or pleasure use.
Private Passenger Auto: A four-wheeled motor vehicle that is subject to registration and used for private (non-business) use. Examples of vehicles that would not be considered private passenger autos include dune buggies, UPS trucks, busses, ATVs, etc.
Property Damage Liability Coverage: Insurance in which the insurer pays for damages to another party's property for which the insured is held liable.
Pro-Rata Cancellation: Termination of a policy before its expiration date. In this case, policyholders are responsible only for the earned premium. Every dollar in excess of the earned premium is considered "unearned," and is to be refunded to the policyholder. Insurance companies may, however, charge small fees for fixed expenses - see "short rate cancellation," below.
Property Damage Liability Insurance: This is insurance coverage for damage caused to other people's property. Damage to one's own property is considered "physical damage" and covered by collision and comprehensive coverages.
Rental Car Reimbursement: A common rider or endorsement in which the insured is reimbursed for the cost of a rental car while his covered auto is unusable.
Secondary Driver: A driver other than the primary driver who also is insured for the particular automobile. The secondary driver's driving record is given less weight in determining the insurance rates that the insured will be charged.
Short Rate Cancellation: This term refers to the non-prorated portion of a policy that is terminated early and must be refunded. Insurance companies are allowed to allocate expenses to the front end of a policyholder's term, and therefore, the daily cost of an insurance policy goes down each day.
Split Limits: This term refers to a set of three numbers dealing with liability insurance. For example, 35/50/10 means $35,000 in bodily injury liability coverage per individual; $50,000 in bodily injury liability coverage per accident; and $10,000 of property damage liability coverage per accident.
SR-22: An official document showing proof of "financial responsibility," most commonly needed by people convicted of certain major traffic violations in order to have their driver's licenses reinstated.
tacking: Applies to underinsured motorist / uninsured motorist coverage, and allows the insured to multiply the limits of each coverage by the number of cars being insured.
State Minimum: Each state has minimum requirements on the insurance coverages that motorists must carry in order to legally drive on the public roads. These minimums are expressed by three numbers; the first and second referring to bodily injury liability limits per person and per accident, respectively, and the third number referring to the maximum property damage coverage per accident.
Steering Restraint: An anti-theft device that makes it difficult for potential thieves to access your car's ignition system. The most commonly known steering restraint is "The Club." Most insurers offer discounts for cars fitted with steering restraints.
Term: The period of time for which a policy is active.
Tort: A legal wrong, most commonly negligence or acts of omission. Courts provide remedy for torts in the form of suits for damages.
owing Coverage: Optional insurance coverage that provides payment for towing (but not repairs) if your car breaks down or is disabled as result of an accident.
Underinsured Motorists Coverage: Insurance that covers damages caused by motorists who meet the state's minimum insurance requirements but still do not have enough coverage to satisfy damages.
Uninsured Motorists Coverage: Insurance that covers damages caused by uninsured or unidentified (hit-and-run) motorists.
Unsatisfied Judgment Fund: Many states have funds that reimburse victims injured in automobile accidents who are unable to collect from the liable party.
Usage: Refers to the purpose for which you use your vehicle. Different rates are established for different usages. Example usages include "pleasure," "commute," and "business."
VIN: Vehicle Identification Number. Each car has a unique VIN, which consists of 17 numbers, and is necessary for receiving insurance coverage.

Business Overview

2009-08-22T00:35:00.000-07:00

Business Overview

Bookkeeping is simply the procedure of recording financial transactions, or put differently, a record is made every time money changes hands. Providing you possess accounting or bookkeeping experience and skill, a substantial income can be earned by running a bookkeeping service. Clients will largely consist of business owners that either do not have the time or ability to set up and manage a bookkeeping system for their business. Recent technological advancement has made operating a bookkeeping service very straightforward, as there are many types of small business accounting software available that will not only make your job easier, but also enable you to service many clients at one time. Typically, bookkeeping services charge clients a monthly fee to record and update their financial records on a regular basis. Averaged, this fee translates into $25 to $35 per hour.

Doing business online and achieving any kind of e-profitable success is probably more difficult than it is in the bricks-and-mortar world. For that reason many online entrepreneurs are turning to enlisting the services of an e-commerce specialist to help build, market, and maintain their e-commerce businesses. Right now, and for the foreseeable future, there is an incredible opportunity to build a super profitable e-commerce consulting business for entrepreneurs with web development, online marketing, e-commerce, and e-communications skills and experience. In short, if this describes you, the potential to earn $1,000 a day and more is presently available. E-commerce specialists do much more than just show businesspeople how to hawk their goods online. They also: • Help businesses build or improve their web sites • Develop productive database systems • Create efficient e-showrooms and checkouts • Create and manage electronic mailing lists • Design e-mail communication systems and plans • Increase search engine rankings • Create effective advertising and pay-per-click promotions • Develop and implement order processing and fulfillment systems • And much more Needless to say, the timing cannot get better than now for getting your piece of this very lucrative pie. The Institute of Certified E-Commerce Consultants provides training, and students graduate with the professional designation of Certified E-Commerce Consultant.

How to Name Your Business
What's in a business name? Plenty. Not only must your name reflect your brand and be memorable, there are also a host of legal issues to consider. Here's how to choose a name that'll best suit your business.

The Basics of Money Management
Before you start making money, you've got to figure out how you're going to accept payments, establish payment and credit terms, and manage your finances. This how-to will help.

Definition:Business Intelligence (BI)

2009-08-20T05:03:00.000-07:00

Definition: Business Intelligence (BI) is the ways in which we store and use business information. It encompasses the technologies, applications, and means for collecting, integrating, analyzing, and presentating bsuienss data. Using data that has been stored in a data warehouse, software applications are able to use this data to report past business information as well as predict future business information, including trends, threats, opportunities and patterns. Popular BI applications are very complex and experts in this field are in high demand. Some of the currently popular enterprise level systems, which can manage information about all of the business functions and systems, are sold and implemented by Oracle, SAP, IBM, and Hewlett Packard (HP). Companies often need in-house experts in these systems to assist with the implementation and the on-going use of these systmes, which are quite complex!

Webcast:The Information-Driven Enterprise: Constructing an Information Agenda for Business OptimizationYou're spending time and money on systems and applications that generate huge volumes of information. But are you getting the most value out of that information? Tune in to learn how to build your information-driven enterprise.

Guides and Workshops:Getting Started with an Information Agenda -->Start integrating business data into a seamless, trusted stream of information across your entire enterprise. Start with these tools.

ArticlesDo You Trust Your Information?Data pours in from many applications, but ensuring that it's accurate, timely and easily available to users is the key to business value.

IBM Expands Its Information On Demand StrategyThe updated software tools help position the company as a provider of all of a business' data management needs, including content management, data cleansing, and data integration.

"IBM is doing an excellent job presenting the "umbrella" of IOD and all its components. One of those key components is IBM's business partners, and they are showing their amazing breadth and depth of capabilities"

The Model of Business

2009-08-20T04:22:00.000-07:00

A business model is nothing else than a representation of how an organization makes (or intends to make) money. This can be nicely described through the 9 building blocks illustrated in the graphic below, which we call "business model canvas".

The business model topic is very popular among business people today because in various industries we can see a proliferation of new and innovative business models (i.e. new ways of making money). In several industries new business models are threatening or even replacing established companies and conventional ways of doing business. Just have a look at the music or airline industry.Hence, the interest in business models comes from two opposing sides:
Established companies have to find new and innovative business models to compete against growing competition and to fend off insurgents.
Entrepreneurs want to find new and innovative business models to carve out their space in the marketplaceWithin this context the business model concept is a particularly helpful unit of strategic analysis tailored to today's competitive business environment. It helps executives as well as entrepreneurs increase their capacity to manage continuous change and constantly adapt to rapidly changing business environments by injecting new ideas into their business model.But what actually is a business model?In management meetings the question of what a business model is (even what “our” business model is) often remains relatively vague. The main reason for this is because business people have an intuitive understanding of business models. Normal, since the business model is about how an organization makes money, which is a manger’s job after all. However, there is often a lack of a more precise and shared understanding of what a business model is. Yet, such a common understanding is required if we want to have high quality discussions of one’s business model and make important business model decisions.Therefore we have come up with the 9 building block approach to describing business models. It has the characteristics of any other type of model (e.g. in architecture or engineering).Like other models it is a simplified description and representation of a complex real world object. It describes the original in a way that we understand its essence without having to deal with all its characteristics and complexities. In the same line of thought we can define a business model as a simplified description of how a company does business and makes money without having to go into the complex details of all its strategy, processes, units, rules, hierarchies, workflows, and systems.Based on an extensive literature research and real-world experience we define a business model as consisting of 9 building blocks that constitute the business model canvas (readers of this blog will realize that this is an updated and slightly adapted version of the model):

The value proposition of what is offered to the market;
The segment(s) of clients that are addressed by the value proposition;
The communication and distribution channels to reach clients and offer them the value proposition;
The relationships established with clients;
The key resources needed to make the business model possible;
The key activities necessary to implement the business model;
The key partners and their motivations to participate in the business model;
The revenue streams generated by the business model (constituting the revenue model);

The cost structure resulting from the business model.Origins of the term business modelThe term business model became popular only in the late 90s, which, personally I think is related to the rapid erosion of prices in the IT and telecom industry. The roots of my assumption lie in Transaction Cost Economics (TCE). Because it became so cheap to process, store and share information across business units and other companies all the way to the customer, many new ways of doing business became possible: Value chains were broken up and reconfigured; Innovative information-rich or -enriched products and services appeared; New distribution channels emerged; More customers were reached.Ultimately this lead to globalization and increased competition, but, as described above, it also led to new ways of doing business. In other words, today there is a larger variety of how companies can make money: this means new in terms of what they do, how they do it and for whom they do it...For managers and executives this means that they have a whole new range of possibilities to design their businesses. This results in innovative and competing business models in the same industries. Before, it used to be sufficient to say in what industry you where in, for somebody to understand what your company was doing. All players had more or less the same business model. Today it is not sufficient to choose a lucrative industry, but you must also design a competitive business model. In addition, increased competition and rapid copying of successful business models forces all players to continuously innovate and adapt their business model to gain and/or sustain a competitive edge.Companies that thoroughly understand their business model and know how the building blocks relate to each other will be able to constantly rethink and redesign these blocks and their relationship to innovate before their business model is copied.Business Models & InnovationThe term business model is also closely related to innovation. As I mentioned, the business model concept is related to a whole new range of business design opportunities. There are examples of business model innovations in each of the 9 building blocks described. The most obvious is innovating in the value proposition. When mobile phones appeared in the market they offered a different value proposition than fixed line phones. In the early days of the Internet popular indexes like Yahoo! helped people find information on the Web. Regarding target customer segments, low-cost airlines like EasyJet have brought flying to the masses. Dell became really successful by exploring the web as a distribution channel. Gillette has made a fortune by establishing a continuous relationship with customers based on its disposable razors. Apple resurged based on its core capacity of bringing design to computers and electronic gadgets. Cisco became famous for its capacity of configuring activities in new and innovative supply chains. Intel thrived for its capacity to get partners to build on its processing platform. Google tapped in an innovative revenue streams by linking highly specific search results and content with text ads. Wal-Mart became dominant by its ability to slash cost throughout its business model.

Life style of Education of the world

2009-08-17T05:06:00.000-07:00

Teachers are people too! Visit Education World's LifeStyle section for practical information about having a life!
New!Save We Must: Tips for Building Financial Security Have the stock market roller coaster and plunging home prices got you queasy? Former teachers-turned financial planners discuss how they help people weather financial turbulence, set goals, and accumulate savings for retirement, education, or other goals.
Tips for Buying Safe, Appropriate Toys Toy recalls and warnings have many consumers on edge this holiday season. Education World talked with toy safety experts, who provided advice and resources to make shopping less stressful. Also, read about this season’s hottest gifts and some sure-to-please teacher gifts.
Buying a Car Without Driving Yourself Crazy Would you rather volunteer for a skunk round-up than go car-shopping? Many people are intimidated by the choices in the market and by haggling over price. Education World has collected expert advice to make buying a car less stressful, and maybe even a little fun.
Technology Trends Inching Toward Schools Schools may be the last place where kids rely on the same old technologies their parents did -- paper and pencils. The rest of their lives are driven and shaped by technology. Educators and parents still need to steer kids toward safe and responsible technology use.
Quick and Healthy: Food for the Fast LaneAre you stuck on the fast food and take-out meal treadmill, but don’t know how to break the cycle? Take a breath. You can serve healthful meals without a lot of stress. Food experts offer tips for shopping, preparing, and eating more healthful meals.
Winter Means Warm, Cold VacationsBy February, many people either are tired of winter or want to make the most of it. New travel regulations have made cruises even more popular this winter, but still there are plenty of opportunities for snow-centered trips.

About the Lecture

2009-08-17T04:33:00.001-07:00

About the LectureOne of the nation’s revered technology leaders dispenses anecdotes and wisdom on the slippery subject of engineering systems (or systems engineering). Norm Augustine just can’t get a handle on the discipline: “No one agrees on what it is, or what it does.” After years in industries like Lockheed Martin, Augustine has come up with “Norm’s Rules,” and can at least define ‘system’ as “having two or more elements that interact,” and ‘engineering’ as “creating the means for performing useful functions.” But these definitions don’t get you too far in the real world.Augustine shows a fuel control system, which some engineers might view as part of a propulsion system. In turn, aeronautical engineers might think of the entire airplane as a system, and transport engineers view aircraft as merely components in systems incorporating airports, highways, shipping lanes. Augustine continues up the ladder until “our system that started as a fuel controller…seems to have the whole universe as a system.” Like Russian Matryoshka dolls, systems can always be embedded within larger systems. Even if you try to simplify a system in terms of just a few objects with a binary, on-off interaction, things can get complex very quickly. Five elements in a system can exist in more than a million possible states. Says Augustine, “A typical earth satellite has nearly one million parts; a 747 over 5 million. How does that make you feel about flying?” Distinguishing the significant interactions and the important external influences on a system are central to designing and problem solving. And these days, engineers must include politics, public policy and economics as part of their systems. “The trick is to bound the scope of the system so it’s not too large to be analyzed and not too small to be representative.” Doing this right is “why systems engineers should be paid so much.” Augustine concludes with his “Dirty Dozen” systems engineering traps, which have led to embarrassing bust-ups, monumental failures, and real tragedies. Notable among these: “the ubiquitous interface,” (or absence thereof). He describes how two flight control groups used different metric units and accidentally sent a Mars-bound spacecraft whizzing off into deep space. There’s the “single-point failure,” exemplified by the collapse of a football field-sized satellite dish due to a poorly designed bracket. There’s software, “which like entropy, always increases:” a Mariner spacecraft headed in the wrong direction due to a missing hyphen in 100 thousand lines of code. The problem with most systems ultimately is that they “contain human elements … and humans sometimes do irrational things.”

In contrast to cardiovascular disease, few breakthrough remedies for psychiatric illness have emerged in the past half century. Edward Scolnick lays blame for this dismal situation on barriers to understanding the genetic basis behind such illnesses. But the research drought may be over, as the current revolution in human genetics opens wide a door into the molecular biology and brain physiology behind diseases like schizophrenia and bipolar disorder.These common, chronic and disabling mental illnesses are complex, involving abnormal behaviors that vary in expression. They have also lacked the kind of quantitative tests that enable precise diagnosis. While science has demonstrated that the single biggest risk factor for both schizophrenia and bipolar disorder is genetic, it has not been able to design tools for exploring how the genetics relates to the evolution of the disease in people. But just in the last two years, with the sequencing of the human genome and maps of human genetic variation, ignorance has given way to major findings.In schizophrenia and bipolar disease, researchers have discovered that gene deletions and duplications (called copy number variants) cause significant brain circuit mischief. They’ve also learned there are gene variants common to both diseases, as well as clusters of genes that malfunction. Scolnick describes diverse research at MIT, proceeding at a “breakneck pace,” that uses this genetic information “to delve into the malfunctioning of brain circuits.” Scientists have applied functional magnetic resonance imaging to compare the brains of ordinary people and schizophrenia patients, and discovered that the schizophrenic’s brain in a resting state is hyperactive. Other researchers found that schizophrenics generate the gamma brainwaves involved with higher mental activities in a different manner than control subjects.Another MIT lab has begun to manipulate specific brain circuits using optical technology -- shining different wavelengths of light at special interneurons that regulate the firing of other neurons, and which are postulated to have a critical role in the malfunctioning of schizophrenics’ brains. Two other MIT labs are examining the biochemical disruptions due to altered genes, and developing “safe, specific chemical inhibitors” that might yield potential treatments for schizophrenia and bipolar illnesses. In Japan, researchers are growing stem cells into brain cells, which may lead to precise experiments that relate genetic problems to malfunctions in brain wiring. Indeed, adding up this research, a central biochemical pathway central to the pathogenesis of psychogenic illness seems to be emerging, knowledge that “can be exploited to understand illness and to find drug treatments.”

Researchers are well along in designing a highly efficient, inexpensive solar cell, but the big barrier to the dissemination of solar power in society remains the problem of installation, says Marc Baldo.As an engineer, Baldo expresses confidence that “we’re going to mow down” the problem of producing a great solar cell and making it cheap. His own lab has developed a unique approach that’s found enthusiastic support from the federal government and others. Unlike conventional solar cells that use a single material such as silicon to perform both functions of absorbing light and converting it into electricity, Baldo’s cell “separates the functions and optimizes both.” His solar concentrator utilizes inexpensive material like glass or plastic onto which a thin film of dye has been painted. Sunlight strikes this surface, and the dye, which can be “tuned” or colored to trap specific wavelengths of light, emits light back to solar cells along the edge of the plate. There are enormous advantages derived from this design: The glass or plastic (considerably cheaper than silicon) catches diffuse light, so there’s no need to track the sun, and it concentrates the sunlight much more efficiently than conventional solar cells. But solar concentrators alone don’t signal the start of a new solar age. Baldo addresses the considerable uncertainty around the broad deployment of solar power. Installation costs for single homes appear formidably high, perhaps 2/3rd the cost of the entire system. Colossal solar fields that might replace fossil fuel burning plants must ship their energy across vast distances, losing electricity along the way. And right now the national power grid isn’t set up to handle the fluctuations in energy that large-scale intermittent energy sources such as solar or wind present. Clouds are a “big pain” for grid operators, says Baldo.He believes the best start for solar will be in commercial and industrial installations such as the rooftops of factories, supermarkets or warehouses, sites where there’s no loss moving power around, and where managers are already seeking ways to save on lighting and refrigeration, including smart electronics. His cost-effective concentrators could find their way to such installations in several years.In addition to solar concentrators, Baldo is researching biological models for making solar cells more efficient: He just received a $19 million grant from the U.S. Department of Energy to study exciton circuitry in plants -- how plants capture light in packets of energy and direct the energy to where it’s needed. Says Baldo, “This exciton is the last, great unexplored territory in solar cells.”

2009-08-07T06:07:00.000-07:00

"DEVIGHAT LOVE MOST PLACE OF DEV"

Devghat is a popular pilgrimage spot situated at the confluence of the Kali Gandaki and Trisuli rivers. It lies just north of the jungle safari destination of Royal Chitwan National Park. During the Makar Sankranti festival in January, Hindu devotees gather here to take holy dips in the river. There are a number of sacred and historical sites around Devghat which provide interesting side trips: the Triveni temple and Balmiki Ashram where the great sage Balmiki had his retreat, the Someswar Kalika temple and fort, Pandavanagar where the protagonists of the Mahabharat once lived and the Kabilaspur fort built by the old kings of Palpa.Access: Buses shuttle between Narayanghat and Devghat, taking about half an hour, but the one hour walk along the footpath parrallel to the river through the woods is more pleasant.Accommodation: There is no lodging at Devghat.

देवीघाटको जालपादेवी मन्दिर

बालाजुदेखि करिब ७० किलोमिटरको दूरीमा देवीघाट अवस्थित छ । पौराणिक महत्व बोकेको यस क्षेत्रको भौगोलिक आकार-प्रकार अचम्मको छ । काठमाडौं-त्रिशुली सडकखण्डको पिपलटारबाट हिँडेर २० मिनेटमा देवीघाट पुग्न सकिन्छ । भौगोलिक बनोटको आकर्षणले होला यहाँको जग्गाको किनबेच दुर्लभ किसिमले त्यो पनि महँगो भाउ हुनेगर्छ । समथर भूभागमा दाँया र बाँया हरियो पहाडको आँगनमा दुवैतिरका पहाडले स्नेहपूर्वक अञ्जुलीमा लिएजस्तो देवीघाट लतमन्न फराकिलो भएर बसेको छ । अजङ्गको हात्ती वर्षौंदेखि स्थानीय रूपले बसिरहेको झैं लाग्ने देवीघाट पश्चिमतर्फो पहाडलाई कसैकसैले हात्ती पहाड पनि भन्ने गर्दा रहेछन् । गोरखाका राजा पृथ्वीनारायण शाहले गोरखाबाट थालनी गरेको एकीकरण अभियानको पहिलो सिकार नुवाकोटलाई बनाएका थिए । त्यही मनोरम नुवाकोटको विदुर नगरपालिकाअर्न्तर्गत देवीघाट पर्दछ । अधिकांशको मत थियो कि, त्यस युद्धकालमा नुवाकोटमा नौवटा कोटहरू थिए । कालान्तरमा नुवाकोट भन्न थालियो । देवीघाट धार्मिक महत्वका दृष्टिले बढी प्रचलित भए पनि अन्य विभिन्न पक्षहरूले पनि यहाँको महत्व दर्शाउँछ । नेपाल एकीकरणका अगुवा पृथ्वीनारायण शाह आफ्नो जीवनको अन्तिम क्षण यसै स्थानमा थिए । त्रिशुली नदी किनारमा रहेको ठूलो चट्टानमुनी सुस्ताउने बहानामा उनले आफ्नो भौतिक कायालाई सदाका निम्ति बिश्राम दिएका थिए । त्यो स्थान नेपालको इतिहास खोज्नेहरूका लागि गन्तव्य बनेको छ । सरकारी उदासिनताको बाबजुद स्थानीयबासीले पृथ्वीनारायण शाहले वि.स. १८७१ मा प्राणत्याग गरेको सो स्थानको गरिमा र महत्वलाई बचाई राखेका छन् । पौरखी हातहरूले, पुर्खाप्रतिको सम्मान र संस्कृतिले । देवीघाटको जालपादेवी मन्दिर प्रमुख आकर्षण हो । जालपादेवीलाई 'इच्छाएको काम' पूरा गर्ने देवीका रूपमा सबैले आस्था राख्दै आएका छन् । जालपादेवीको मन्दिर त्रिशुली ताँदी नदीको दोभानमा छ । त्रिकोणात्मक बिन्दुमा जालपादेवीको मन्दिर विशेष शक्तिको संकेत दिँदै बालुवा अडिग छ । जालपादेवीलाई ६ महिना पानीमा र ६ महिना जमिनमा बस्ने देवी पनि भनिन्छ । यो मन्दिर लगभग ६ महिना दुवै नदीमा बढेको पानीको प्रवाहले डुब्ने अवस्थामा हुन्छ । दशैंको सँघारमा नदीको पानीको प्रवाह कम हुन्छ र भक्तजनले मन्दिरलाई पुनः सफासुग्घर गरी पूजाआजालाई निरन्तरता दिने गर्दछन् । जालपादेवी र नुवाकोट दरबारमा अवस्थित भैरवीमाता दुई दिदीबहिनी मानिन्छ । प्रत्येक वर्षको वैशाख पूणिर्माको दिन भैरवीलाई नुवाकोट दरबारबाट धामी-धमीनीसहित सुरक्षाको दलबल दिदी जलपादेवीलाई भेटाउन ल्याउने प्रचलन छ । आर्श्चर्यको कुरा जलपादेवी रहेको देवीघाट क्षेत्रका केही वृक्षहरू भैरवीदेवी भएको दिशातर्फझुकेका छन् भने उता भैरवी क्षेत्रका वृक्षहरू जलपादेवीतर्फनिहुरिएका छन् । पौराणिक विश्वासका आधारहरू बेग्लाबेग्लै भए पनि आफ्नो परम्परा-संस्कृतिलाई स्थानीयबासीले संरक्षण गरिरहेका छन् । उनीहरू धाम-धामीनीलाई इश्वरको अंश मानी श्रद्धा गर्ने गर्दछन् । उर्लंदो त्रिशुलीको आवाज सुनेर नथाक्ने यहाँका बासिन्दा कृषिजन्य काममा थोरै मिहिनेतले धेरै उब्जनी हुने हुँदा फुरुङ्ग छन् । गाउँमा बिजुली छ, सञ्चार छ, प्रत्येकजसोको हातमा मोबाइल छन्, परिवार टीभीमा झुम्मिएको छ, केही घरधुरीमा इन्टरनेटको सुविधा पनि छ । अध्ययनको सिलसिलामा, कामको दौरानमा टाढा बस्दा आफन्तहरूसँगको कुराकानी सम्भव छ । मन लागे ग्यास वा विद्युत्बाट खाना पकाउँदा भयो, नत्र वनजङ्गल प्रशस्त छ । देवीघाटमा यातायातको दोहरो सुविधा छ । एकातिर काडमाडौंदेखि र अर्कोतर्फ धादिङतर्फको बाटो जोडिएको छ । भारतको सहयोगमा त्रिशुलीमा बिजुली उत्पादन केन्द्र बनाएपछि त्रिशुली खण्डको बाटो निर्माण सम्भव भएको थियो । अब चीनसँगको व्यापार सहज बनाउन सुविधासम्पन्न राजमार्ग बन्ने सम्भावनाले मुर्तता पाउँदैछ । त्यसपछि यहाँको जनजीवन सुन्दर हुने अड्कल स्थानीयबासीको छ । संस्कृतिको जगेर्नालाई निरन्तरता दिने देवीघाटमा संस्कृत विद्यालय पनि सञ्चालनमा ल्याइएको छ । जलपादेवीमा बढ्दो भक्तजनको चाप र असुविधालाई ध्यानमा राखेर देवीघाटबासीले त्रिशुली किनारमा रहेको आँपको बगैंचामाझ एक हजार शिवलिङ्ग स्थापना गर्ने उद्देश्यले निमार्ण कार्यलाई तीव्रता दिइएको छ । अब देवीघाटको सुन्दर पहिचानले अझ व्यापकता प्राप्त गर्ने विश्वास स्थानीयबासीको छ ।

2009-08-07T05:51:00.000-07:00

Discover the beauty of Pokhara

Pokhara is situated on the edge of the Pokhara Valley which is home to some of the most spectacular scenery in Nepal. Here the Seti River has dug incredible canyons in the floor of the Seti Gandaki Valley. Most of these canyons are only visible from higher viewpoints but they are stunning to behold. If you wish to see what they look like, getting a little higher off the ground shouldn't be too difficult. The mountains here rise from 1000 m to over 8000 m over the short distance of only 30 kilometers. This astonishing fact makes them one of a kind! The Dhaulagiri, Annapurna and Manaslu ranges can all be seen from Pokhara and make for a stunning backdrop. There is a fantastic waterfall known as David’s Falls where the water from nearby Phewa Lake thunders into a large hole and disappears mysteriously.
Summers in Pokhara are relatively hot and winters are mild. The region is sub-tropical because of the elevation and this means you can expect lots of beautiful green shrubbery all year around.
Pokhara has changed much since the 1960’s. Back then it was a quiet little town which could only be reached by foot. Many considered it to be even more mystical than Kathmandu. The completion of the first road in 1968 soon brought a change to this. Tourism quickly became a major industry and the city grew rapidly. Though Pokhara is considerably bigger than it was only a few years ago, there are still a lot of green spaces which make the place feel peaceful and spacious. Most of the town’s traffic is made up of tourists traveling to the Annapurna Base Camp.
Since most of the city’s growth has occurred in recent years, Pokhara is relatively modern. However, the old center, known as Purano Bazaar, is quite interesting and reminiscent of days gone by as are the mule caravans which arrive regularly from Mustang. There are lots of temples to visit in the region and lots of hiking trails to do. The lakes are generally not very good for swimming though boating is popular. There are a great number of natural attractions in the area which are well worth visiting.
Many tourists enjoy Pokhara as it is not as cramped as Kathmandu, but it does not house as many cultural attractions as Nepal's capital. While it does have some great cultural sights, the focus tends more towards the many natural wonders around the city. Pokhara should definitely not be missed.

2009-08-07T05:42:00.000-07:00

Historically, the Consumer Electronics Show hasn't been a place where we'd find a ton of new laptops, desktops, or computer components. After all, PC makers had Comdex (a now-defunct Vegas trade show), and are generally more interested in hitting the back-to-school and holiday seasons than releasing new products in January.
Still, this year was a decent one for new introductions, and almost every major name in the computer business had a handful of new products to show off. Most were more evolutionary than revolutionary, but when you're dealing with essentially the same small pile of CPUs, GPUs, hard drives, and chipsets, anything that breaks away from the commoditization of PCs is a plus.
HP's Firebird desktop continues the integration of HP and its boutique brand acquisition, Voodoo. The system has the distinct look of a high-end Voodoo PC, but is branded as being "HP with Voodoo DNA," and carries a relatively mainstream price.
We also liked HP's Mini 2140 Netbook. In a field already crowded with essentially identical competitors, the brushed metal design and ExpressCard/54 slot are welcome points of differentiation.
Other players who tried to take the basic Netbook concept and improve on it include Sony, whose Atom-powered Lifestyle PC is an upscale take on the mini-laptop; Asus, with a swiveling touch-screen version of the popular Eee PC; and AMD, with the new Athlon Neo platform--essentially a low-price midpoint between Netbooks and mainstream laptops. (AMD also has a new desktop gaming platform called Dragon).
Interestingly, one of the most interesting laptops at CES made only a cameo appearance. Dell's slim Adamo was officially announced, and briefly glimpsed, but no real details or hands-on time were forthcoming. Contrary to earlier rumors, the Adamo looked a lot more like Voodoo's Envy 13-inch than the MacBook Air.
Perhaps the biggest pleasant surprise was the warm reception Windows 7 received, despite not really having a big push at the show. Beta testers reported that the upcoming operating system scales very well to low-end Netbooks (which just plain don't work well with Vista), meaning that growing category might have a very big future.

Business

2009-08-07T02:24:00.000-07:00

A business (also called a company or an enterprise) is a legally recognized organization designed to provide goods and/or services to consumers.[1] Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. Notable exceptions include cooperative enterprises and state-owned enterprises. Socialist systems involve either government agencies, public ownership, state-ownership or direct worker ownership of enterprises and assets that would be run as businesses in a capitalist economy. The distinction between these institutions and a business is that socialist institutions often have alternative or additional goals aside from maximizing or turning a profit.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage (above) to mean a particular company or corporation, the generalized usage to refer to a particular market sector, such as "the music business" and compound forms such as agribusiness, or the broadest meaning to include all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate.
Business Studies, the study of the management of individuals to maintain collective productivity to accomplish particular creative and productive goals (usually to generate profit), is taught as an academic subject in many schools.