Tax Liability a Preview of Capital Structure
In regards to the overall business environment, capital structure has profound implications of the business, irrespective of its industry. For one, a firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $40 billion in equity and $160 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's leverage. This leverage has implications on the entire firm. For example, leverage in many respects is a double edges sword. On one hand, leverage can amplify gains for firms. However, if used incorrectly, leverage can also amplify loses. As such, firms must be cognizant of its capital structure as complacency can hinder overall business performance. Debt and equity financing, can have a profound implications on the business overall. In particular, prevailing interest rates can better determine adequate means of debt or equity financing.
War Why a Military Presence
The war in Afghanistan has been a contentious issue for both developed nations and those around the world. The middle east, and in particular, Afghanistan, has had a profound impact on global prosperity and the resultant quality of life for all stakeholders involved. As such, this conflict has major implications for developed countries. Currently many individuals within Europe and American want their respective troops out of Afghanistan. A survey of over 1000 individuals showed that nearly 68% thought that troops should be removed from the territory (BBC news, 2008). I believe these 68% of individuals to be correct. However, the war on terror does have its merits. Although, some form of presence is needed, I believe having military present on foreign soil can do both harm and good to all countries involves.