Definition of Records Management free essay sample

In the past, records management was sometimes used to refer only to the management of records which were no longer in everyday use but still needed to be kept semi-current or inactive records, often stored in basements or offsite. More modern usage tends to refer to the entire lifecycle of records from the point of creation right through until their eventual disposal.The ISO 15489: 2001 standard defines records management as The field of management responsible for the fficient and systematic control of the creation, receipt, maintenance, use and disposition of records, including the processes for capturing and maintaining evidence of and information about business activities and transactions in the form of records. The ISO defines records as information created, received, and maintained as evidence and information by an organization or person, in pursuance of legal obligations or in the transaction of business.The International Council on Archives ICA) Committee on Electronic Recor ds defines a record as a recorded information produced or received in the initiation, conduct or completion of an institutional or individual activity and that comprises content, context and structure sufficient to provide evidence of the activity. We will write a custom essay sample on Definition of Records Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The key word In these definitions Is evidence. Put simply, a record can be defined as evidence of an event. Records Management Is the storage preservation and retrieval of information In the shortest possible time.MUDD) Records management Is very Important for the use of storing document this topic was thought In Office Administration. The United States Department of Defence standard DoD 501 5. 02-STD defines Records Management as The planning, controlling, directing, organizing, training, promoting, and other managerial activities involving the life cycle of Information, Including creation, maintenance (use, storage, retrieval), and disposal, regardless of media.

Veil of Incorporation and Predicament of OHS Solutions

Question: (1)Write a brief explanation about why the directors duty to prevent insolvent trading exists and the circumstances and consequences of the veil of incorporation being lifted for insolvent trading? (2) From what you know of OHS Solutions predicament, DISCUSS whether any of the directors may be about to breach or have already breached the duty to prevent insolvent trading. (In order to do this you will need to compare what is happening in OHS Solutions case with other precedent cases and refer to the relevant sections in the Corporations Act.) What will you advise Ying? Answer: (1) Section 588G of the Corporation Act, 2001 states the responsibility on the directors to ensure that the company is solvent especially in those cases when the debt is incurred by the company (Thomson Reuters, 2015). The directors have to prevent insolvent trading by the company. It is said that this duty imposed on the directors is made in order to protect the unsecured creditors of the company (Ramsay I, 2000). The directors have been bestowed with this responsibility towards the company. This shall be said to have been breached in the following situations: When the company is insolvent or becomes insolvent because of the debt; There were reasonable grounds to believe that the company is insolvent or will become insolvent The directors are aware of the fact that the company is insolvent or likely to be insolvent (Comasters, 2003). The director will be said to have breached the duty under Section 588G when he knows that the company is insolvent or will become insolvent and incurs debt. The directors have been given the right under section 588G to prevent insolvent trading and in case the same is breached the directors have the right to make necessary claims. In case the director knows that the company is insolvent and is incurring debt then Section 588M allows recovering the compensation for damages suffered from the directors. The creditors suffer loss in such cases as the whole debt or part debt is unsecured. The liquidator shall have the right to claim damages against the director (Worrels, 2013). The directors of the company are required to carry the business of the company with care and diligence. The directors cannot escape by stating that they had no knowledge about the fact that the company is insolvent when the company was incurring debt. If they are not aware about the financial capabilities of the company then they have not obliged their duty of carrying due diligence and care. In the present case study the directors are also the shareholders of the company and they are fully liable for the actions they have undertaken (Research Matic, 2013). The directors are aware about the fact that the company has a huge amount of debt due and if it incurs a new debt then it will become insolvent. This shall not be recommended by the directors of the company. Once the company is registered it is a separate legal person than its members. Its liabilities are separate from the liabilities of its members. The court clearly states that the members shall not be held liable for any liabilities of the company no matter what position or role they hold in the company. This was clearly stated in the case of Saloman v Saloman Co. Ltd (1897, HL). The company has been formed under the Companies Act and has a separate legal entity. Mr. Saloman acts only as an agent of the company. The ownership and management of the company do not go hand in hand. It was decided that it is necessary that the secured creditors of the company are paid before the unsecured creditors of the company. This is a prime case of lifting the corporate veil. Lifting of veil of incorporation for insolvent trading was made to increase the level of responsibility on the directors for the decision they make affecting adversely to the creditors. When the directors of the company are al so shareholders of the company then the creditors may attach liability to the directors of the company by lifting the corporate veil. In the case study all the directors Des, Emma, Satish and Ying-director of Support Pty. Ltd are shareholders of the company and hence as the company is being poorly managed which is making the company move towards insolvency they shall be liable towards the payment to creditors of the company. In such a case if any decision is taken which makes the creditors feel that their unsecured debt would be at stake because of the decision it shall lift the corporate veil. The same has also been illustrated in the case of Adam v Cape, where the Court of Appeal held that the corporate veil shall only be lifted where the company has concealed the true facts. The grounds for lifting of corporate veil should be when the justice has not been granted or sham or fraud exists (Ramsay I, 2000). The court shall lift the corporate veil of incorporation when the company ha s been made to be used for dishonest or wrongful purpose. Also illustrated in the case of Gilford Motor Co. Ltd v. Home [1933] Ch 935 (CA), where the defendant was the managing director of the company and was regulated by a covenant that he shall not approach the present clients after his termination of services. After leaving the company he started a new company with his wife and approached the same clients of his earlier employer. This is wrong use of his contacts. The main aim for lifting the corporate veil is to prevent the protection of limited liabilities being wrongly used and to reduce fraud and sham. The concept of lifting the corporate veil applies only to those members who have actually violated the rules and created such a situation (Law Teacher, 2003). It is for the protection of those parties who have a trust relationship with the company. (2) All the directors of the company know the fact that the company, OHS Solutions, has become insolvent as it finds out a large account from Trouble Shooters that was overdue. Now though Ying knows that the management of the company is not doing well and that OHS solutions could be purchased, it is not legal for Ying to get into such a transaction. As, Ying is the director of the company she has the duty to not get involved in any kind of trading knowing that the company is insolvent. This is against Section 588G of the Corporation Act, 2001. Moreover, Support Pty. Ltd. is also a guarantor for the debt taken by OHS Solutions and so cannot buy OHS solutions. In case any of the directors, namely, Des, Emma, Satish and Ying get involved in any trading activity when OHS is insolvent they shall breach their duty as a director. Till now they have not breached any of their duty as they have not got involved in any trading activity since the time they came to know that OHS has become insolv ent. All the business transactions are done before declaration of company being insolvent was made. The directors shall commit criminal offence in case they do any wrong activity to incur debt. The main purpose of imposing this duty on the director is to increase the responsibility of the director and to protect the well-being of the shareholders of the company (PWC, 2011). Directors are considered to be in the like position in the company where he knows about the affairs of the company and so the company considers various factors like the size of the company, the type of the business, delegation of functions and responsibilities, distribution of work, expertise area etc. In a company the executive directors take participation in day to day management of the company and are supposed to know about the financial position of the company whereas in case of non-executive directors, they are not involved in the day to day working and generally rely on the information given to them on various occasions and forms like board meeting, various notices or agendas etc. Like in the case of Metal Manufactures Ltd v Lewis (1988) 6 ACLC 725, there were only two directors of the company, Primary Metals and Resources Pty Ltd; namely, Mr. and Mrs. Lewis (the company). In September 1993 the company went into a contract with the plaintiff. In the later stage the company did not oblige by the duly signed contract which led to award of damages against the company. The plaintiff later discovered that the company was given orders to wind up the company in September, 1984. Knowing this fact the plaintiff sued both the directors on the basis of trading when the company was insol vent under Section 556 of Companies (NSW) Code. The case was concluded by stating that there were only two directors in the company in which Mr. Lewis was the managing director of the company and because of his position in the company he shall be deemed to have entered into a contract on behalf of the company with the plaintiff. When the contract was entered the company was not in good financial conditions to pay off its debts. Mrs. Lewis was not involved in the day to day working of the company and she was in the company designated as a director only for the signing purpose. She had no knowledge about the debt due on the company and whenever she took interest in the same she was told by Mr. Lewis to not get involved in the same. Mrs. Lewis was in no way associated or aware about the debt conditions of the company. Mr. Lewis did not contest liability under section 556 of the Companies (NSW) Code and accepted with the judgment passed whereas Mrs. Lewis raised for defense under sectio n 556(2)(a) and she got success in the trial. A plea was made against the decision passed in favor of Mrs. Lewis which was dismissed by the Court of appeal stating that the appeal is rejected and the decision taken under trial is correct. It is concluded that the silent directors of the company shall not be liable for incurring debt taken by the managing directors where they had no role to play in taking the decision of raising or incurring debt. In this case the silent director shall not be held liable (Law of Association). In the case study of OHS Solutions, Ying and Emma are the non-executive directors of the company but in the board meeting held in March they all are made aware about the financial position of the company and hence they cannot take the defence of not being aware about the debts reflecting in the accounts. Therefore, as per Section 588 G the directors of the company cannot get into any trading when the company is insolvent. I would advise Ying of not getting into any trading activity even though he is a non-executive director of the company but he is accountable equally as an executive director. If he undergoes into any trading activity when there were reasonable grounds to believe that the company is not solvent he shall be equally liable for punishment. Ying in such a case shall be punished under Section 588G. The same has been illustrated in the case of Statewide Tobacco Services Ltd v Morley (1990) 2 ACSR 405, it was held that a non-executive director who cannot stop the company fr om incurring debt because it requires voting from a majority of shareholders shall not take this as a shield of not been able to stop the company to incur debt when the company was insolvent as he did not have support from majority of directors. This is because that even though he did not have support from majority of directors he is still required to take all necessary steps to prevent the company from trading when it was insolvent. The proof that the non-executive director had taken reasonable steps to stop the company from trading while insolvent if he was not able to convince other directors to not incur debts when the company is not solvent and the director has asked for winding up of the company or given his/her resignation (Lewis P, 2010). There are also various defences available to the directors in case they are not able to stop the company from incurring any debt (PWC, 2011). The cases would be: 1. When the director is under this impression that the company is solvent when the debt has incurred as there are reasonable grounds to believe so and that the company would not go insolvent after incurring the debt (PWC, 2011). In such a case the court shall observe that whether the statements given by the director are justified or not. What needs to be seen is that whether the company will be able to pay off its debt when it becomes due or not. In the case of Metropolitan Fire Systems Pty Ltd V Miller the court held that to suspect something entails lesser level of knowledge than to expect it. Expectation should be more than just hoping for it. The directors should be confident when they claim a time when the company will be able to pay of its debts in future course of time (Ramsay I, 2000). 2. The director believes that there is a reliable person who is monitoring the solvency of the company and informing the director about the same. The directors should have a reasonable ground to believe that the person is fulfilling its responsibility (PWC, 2011). In such cases the directors expects that the company is solvent at the time when the debt is being incurred based on the information given by such reliable person and hence believe that the company would remain solvent even after the debt will be taken(Ramsay I, 2000). 3. The time when the debt is incurred the director does not take any participation in the management of the company because of health reasons or any other good reason for non-participation (PWC, 2011). 4. The director has taken all the necessary steps to prevent the company to incur debts when it was insolvent (PWC, 2011). One example of it is where the director has taken any step for appointment of administrator of the company (Ramsay I, 2000). The main aim of framing of Section 588G in the Companies Act is to protect the interest of creditors of the company. Though it may look like after going through the section that competent people might shirk away to take the responsibilities and position as a director of the company because of the responsibilities it holds and punishment it takes along with non-fulfilment of responsibilities. However it can be argued on the same that the all the penalties imposed on the directors for breach of their duty under Section 588 G has been neutralised and supported by provisions of Section 588H. Section 588H is made to protect the interest of the directors and give them a sigh of relief (PWC, 2011). It is very essential for the directors to know and understand the duty they have been given to prevent insolvent trading and should give its advice as and when the company is in any financial difficulties thereby advising the company with any alternative solution to prevent the company from getti ng into insolvency and to ensure that their position as a director is well protected (Merity C and Harris S, 2010). BIBLIOGRAPHY: Thomson Reuters, (2015), Directors duty to prevent insolvent trading, Available from website: https://www.findlaw.com.au/. [Accessed on 22nd January 2015]. Ramsay I, (2000), Company directors liability for insolvent trading, CCH Australia Limited, Melbourne. Comasters Law Firm and Notary Public, (2003), Directors duty to prevent insolvent trading, Available from website: https://www.comasters.com.au/. [Accessed on 22nd January 2015]. Worrels, (2013), Insolvent trading, Available from website: https://www.worrells.net.au/. [Accessed on 22nd January 2015]. Law Teacher, (2003), Lifting the veil separation of the personality, Available from website: https://www.lawteacher.net/. [Accessed on 22nd January 2015]. Research Matic, (2013), Veil of Incorporation, Available from website: https://www.researchomatic.com/. [Accessed on 22nd January 2015]. Pricewaterhouse Coopers, (2011), Company law duties, Available from website: https://etraining.communitydoor.org.au/. [Accessed on 23rd January 2015]. Law of association, Insolvent trading, Notes from the Law of Associations course Available from website: sydney.edu.au/. [Accessed on 23rd January 2015]. Merity C and Harris S, (2010), Australia: ASIC releases new guide for directors on duty to prevent insolvent trading, Available from website: https://www.mondaq.com/ [Accessed on 23rd January 2015].

The Best Online AP Courses

The Best Online AP Courses For High School Students [Full Guide] Studying hard is great work, but you should also make sure that you’re making the right choices so you can improve your academic and professional chances. Online AP courses put you at an advantage as you learn about topics that qualify you for higher education. These classes are designed to help students build the necessary skills that will come in handy when they decide to join college or university later on. As a result, they will have a great impact on a graduate’s chances in the job market they compete with thousands of other young people who want to land amazing job opportunities. Although there are lots of AP classes online, choosing the right one for you can be a bit overwhelming. You want to make sure that you’re using your time efficiently by picking a course that will teach you the skills you’ll actually need. What Are AP Courses and Why You Need Them? AP courses are advancement placement test classes that test students’ intellectual skills. They’re more complicated than high school tests and represent a bigger challenge. Lots of teachers and professors agree that the level of difficulty of AP courses resembles that of the junior year in college. This means that a high-school student will be dealing with a college-like topic before they leave high-school. When you sign up for AP courses online, you’re basically training yourself to work on more challenging tasks that you’re likely to encounter once you join college. For most students, the transition between college and high-school is quite overwhelming. These classes will prepare you to reduce the shock factor that many have to deal with when they start their first year. College life involves bigger responsibilities, and some find it too demanding, to the extent that they might be thinking about dropping out. Signing up for these classes will keep you prepared so you can handle the challenges ahead. How Many AP Courses Are There? There are currently 38 AP classes available for high-school students that are designed to prepare them for college education. American colleges and universities usually consider these classes when they’re screening applicants for admission. This means that if you choose to study one of them, you’ll be doing yourself a favor, showing the admission committee that you’re a great asset that shouldn’t be missed. If you wish to take AP courses online, you should think about the subjects and topics you want to focus on as a college student. You’ll work through a syllabus doing the necessary work and finally go through an exam to show your level of understanding. The scoring system goes from 1 to 5, with 5 being the most qualified. These online classes cover several topics, including History, English composition, Computer Science, and Physics. High school students should think about the college major that interests them the most and choose the class accordingly. If you wish to become a renowned reporter or journalist, then you should consider taking journalism courses, while you can focus on European History classes if this is the academic area you want to specialize in. How Many AP Courses Should I Take? While there’s no right answer to this question, you should be your own guide. This means that a student should take as many courses as they can handle. Taking too many classes isn’t the best solution because you won’t have enough time to study for your standard tests and might not be able to get a good score. Of course, you can use online assignment help to save some time and effort, but you’ll still have to do the studying yourself. Most professors and teachers recommend that students take from 3 to 5 AP courses. Online AP courses are available so students can study and work according to their own pace. The number of online classes you choose depends on your goals. For example, you can take 2 or 4 online courses if you want to join a less demanding college or university. Remember that if you don’t pass the exam, you won’t take credit for the course so it will be a total waste of time. The Best Online AP Courses for High School Students: Students and their families are always expected to make important decisions that can have a tremendous impact on their future later on. Understanding the basics is extremely important because one tough decision can change someone’s life forever. For example, students and parents should do some research to understand the distinction of magnet school vs charter school, the different types of courses, and the best options available to improve college and university admission chances. Although there are several online AP courses for high school students, some of them might not suit you or will be a total waste of time. Here are the easiest and hardest choices to consider. Hardest AP Courses Whether it’s because they require lots of memorization or due to the nature of the topic itself, some courses are extremely hard. Calculus courses are difficult, especially if you’re not a Math genius. If you choose to sign up for Calculus, then you must know that there will be lots of hard work and studying. History is difficult for people who don’t know how to memorize very well. If you’re more into practical applications, then it’s best to avoid this course as you’ll spend a lot of time trying to memorize all the information. Chemistry is another course that most students hate because it involves working with Math problems as well as memorizing equations and formulas. Easiest AP Courses On the other hand, there are some easy courses that you can consider if you wish to improve your college chances without straining yourself or pushing yourself beyond the limit. German is not that difficult and is very useful as you’re receiving tips for learning a new language that can help you get a good job overseas. US Government is quite easy to understand because you already have basic knowledge acquired throughout the years while studying at school. Phycology is both interesting and easy and will qualify you to join several departments in college and university. Other courses like Chinese and Spanish have very high passing rates because they’re taken by students who already know these languages or speak it at home. If this is the case, then you definitely need to check them out. Online AP Courses You Should Avoid Remember that overloading yourself with AP course, even an online one, is never a smart decision. That is why you should avoid courses that involve very hard work that you’re not qualified for. Physics, for example, is a difficult topic, and unless this is the field you want to specialize in later, there is no need to waste your time by taking this course. If you don’t come from a Japanese background, it’s not recommended to take this course even if it has a high rating. Those who pass it already come from Japanese origins. There are lots of excellent online AP courses out there, and this represents an excellent opportunity for hard-working learners. Nevertheless, you should make sure that you’re choosing a suitable one that won’t represent an unnecessary strain that can affect your high school academic performance. Investing in a good course will definitely help you achieve your goals.

Benefits of Marketing Segmentation Essay Samples

Benefits of Marketing Segmentation Essay SamplesIf you're applying for a marketing job, you'll want to take the time to study a marketing segmentation essay sample before you submit your application. There are many companies that will supply you with one for free, but there are some advantages and disadvantages to these samples. It is your responsibility to understand them and decide if they meet your needs.First, it's important to understand the key points that are covered in your writing. Some marketing segmentation essays review ideas and concepts that are already well known to you. Others will review new techniques and tools that you may not have heard of.Always take the time to review the essay carefully before you submit it. A marketing segmentation essay sample is a way to get your point across that will also provide you with a blueprint for future applications. You can study the sample so that you can tailor it to what your company does best.The writing sample offered by your company should be a promotional document that outlines what you think your skills are, and why your company should hire you. A marketing segmentation essay sample should be written so that you can demonstrate your abilities to your potential employer. When submitting a marketing segmentation essay sample, it is best to keep it concise and to the point. You don't want to ramble and bore your potential employer.A marketing segmentation essay sample should also be about your current position, but not necessarily from your current job. Look for a sample that contains an overview of your work history and potential benefits. This will help you frame the essay properly. You may want to look for a sample that can be edited to outline the skills that you possess for the job, as well as the benefits that the job offers.There are companies that will create a sample for you based on your business. For example, they might provide you with an essay from a franchise company that explains how thei r franchise is designed to meet the requirements of your customers. Or, the owners of the franchise may provide you with an essay from their own perspective. By reviewing a marketing segmentation essay sample in this way, you will be able to see the strengths and weaknesses of your business.Your essay should also discuss the types of customers that you serve. How are you able to attract these types of customers? What appeals to them that you are unable to offer? What are the unique aspects of your services that you can offer that your competitors cannot?Use a marketing segmentation essay sample as a resource for learning about different ways to express your ideas. It's easy to view this as a waste of time, but it is in fact an excellent way to understand how to present yourself properly when you're submitting your resume or application. You can use it to tailor your essay to your specific circumstances, and it will help you better understand the key points that you need to cover in your application.

Constitutional and Social Developments between 1860 and 1877 essays

Constitutional and Social Developments between 1860 and 1877 essays America went through countless changes between 1860 and 1877. During this reconstruction era following the civil war came drastic developments in the North and the South, which were now united as one nation. The power of the government was increased greatly during this reconstruction period. In addition, the social status of the blacks in America altered greatly as well. The constitutional and social developments during the time period between 1860 and 1877 mostly amounted to a revolution, but not completely. There were many constitutional developments in America that amounted close to a revolution. The Souths major decision to secede from the Union greatly impacted America during the Civil war. For instance, South Carolina took its opportunity to secede from the Union with the support of an amendment stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states (Doc A). There were 11 states total that seceded due to their disagreement with Lincoln and his beliefs. Also, the 13th, 14th, and 15th amendments were added to the Constitution during this reconstruction period. These amendments fulfilled petitions started in America to grant blacks voting and civil rights (Doc C). These amendments gave blacks freedom, citizenship, and voting rights in America reverting their position in society. This was close to a revolution because slavery was finally ended and blacks were even given civil rights, which was a co mplete turn in society. However, these were just laws on paper and were not obeyed by all of society. This was a form of revolution on paper and documents, but not socially. The Force acts were also put into place to stop violent organizations against black civil rights such as the Ku Klux Klan. The government gave authority to use military force to stop these anti-black freedom movements (Doc H). These acts showed revolution a...

The Social Studies Curriculum in Alberta, Canada Research Paper

The Social Studies Curriculum in Alberta, Canada - Research Paper Example Dramatic Change In The Social Studies Curriculum Of Alberta With respect to Canadian – Alberta framework of citizenship a social studies program or curriculum should explore, quantify and strengthen Canadian identity of students. Within Alberta citizenship framework a social study program should reflect translate Aboriginal and Francophone perspective as well which is close to ground realities. In a nutshell the program or curriculum should promote multicultural, multiethnic, democratic and truly Canadian social and cultural values. Vision of Alberta social studies program should be based on appreciating pluralistic Canadian society and associated diverse realities. Since year 2005 onwards the curriculum has been revised as well as the methods of teaching. The major change brought about is start of program basing on concrete philosophy which stresses to develop skills with a purpose of transforming students into responsible and productive citizens in a democratic country. The program envisions needs of twenty first century while focusing Canadian identity and citizenship. The program includes many facets like including realities of Aboriginal, Francophone, multicultural, multilingual and multiethnic society. The program endeavors to connect students, with what is being taught, which is the most promising aspect. Canadian society is diverse and pluralistic in nature due to huge population of immigrants. Multiple factors shape the Canadian Society like people come from different religions, societies, social and cultural values, countries and languages. In this perspective the curriculum needed transformation according to prevailing environment which has been accomplished. The curriculum has been changed in such a way that students should value diversity rather than opposing it and see human kind on a broader perspective. Values of freedom and social justice have been added in such a way that students respect the traditions, cultures and religions of all ci tizens in the perspective of Canadian national identity. The methods of teaching have been evolved in a way that teachers encourage students to value and share responsibility, and fully participate in creation of true Canadian society. The syllabus has been designed after taking input from public figures that students should be able to understand history, society and culture of Alberta, Canada and the world. Now the curriculum aims at understanding dynamics of a pluralistic society and conflict resolution in such a unique society. The program encourages the students in thinking about issues related to society in Alberta and problem solving. Students are guided to translate complex social issues, draw meanings and arrive at genuine conclusions. The program lays stress on cognitive skills and effective learning while connecting them to real issues, own history and land of Canada. The relationship between citizenship and Canadian identity is the basic ingredient of program. The social studies program in Alberta stresses a lot on citizenship, respect for rights and identity of all citizens. A citizen

Explain The Term Structure Of Interest Rates Essay

Explain The Term Structure Of Interest Rates - Essay Example Interest date data for bonds with different maturities date is published frequently and investors can use it to determine the term structure of interest rates. Some of the most popular interest rate data sources are the Wall Street Journal, Federal Reserve Bulletin and websites like Bloomberg and CNN. The term structure can be verified at any point in time by using published data from renowned sources. Yield curves are drawn using this published data on interest rates. There are short term and long term interest rates. Since long term interest rates have an element of maturity risk premium (MRP), they are usually higher than short term rates. When researching on the term structure of interest rates, it is important to have knowledge of commonly used terms like the Yield to Maturity (YTM), which is defined as the expected rate of return on a bond held till maturity (Brigham and Ehrhardt, 2010). Another concept which is discussed with YTM is that of the zero coupon bonds (or discount b onds). A zero coupon bond is a financial asset which at the date of maturity T, pays its holder a lump sum amount, with no coupon payments before the date of maturity (hence the name zero-coupon). The YTM at time t of a discount bond with maturity T is the constant and continuously compounded rate of rate of return at which the price of the bond accrues from time t to time T and pays one currency unit to the holder at time T. The YTM is also referred to as the spot rate and the notation R (t, T) is used for it. Spot rates are short term interest rates and the term structure of interest rates depicts the relationship between spot rates and their dates of maturity (Gibson, Lhabitant and Talay, 2010). Interest rates are not only used in discounting and pricing for zero-coupon bonds but also other financial derivatives because their prices are sensitive to interest rates. If we go beyond the scope of an individual investor, we can see that interest rates are also important to corporatio ns. This is because when corporations are doing project appraisals, they use interest rate for computing the net present value and the discounted payback period for a project. The cost of capital which is of prime importance to corporations also depends upon interest rates (Benninga and Wiener, 1998). It will be useful to specify the type of interest rate before discussing investment decisions and discounting. There are two main types of interest rates: simple interest rate and compound interest rate. Simple rate of interest is interest on a lump sum principal amount and it does not itself earn interest. Quite contrary to this, is the compound rate of interest which itself earns interest. Investment decisions and discounting are all predominantly based on compound interest rates (Kelly and Tracy, 2010) Long term interest rates are an average of short term interest rates. The relationship between short and long term interest rates involves expectations. For example, if it is expected that short term interest rates will fall then the long term interest rates will fall below the current short term rate. The contrary situation is also valid: if it is expected that short term interest rates will increase then the long term interest rates will rise above the current short term rate. These two situations are possible only because long term rates are derived from short term rates. It is a general perception that long rates are greater than short rates and this is termed as the ‘