Islam/Christianity Views of Trade and Merchants Essay

Christianity and Islam both comprise very detailed and comprehensive outlooks relating to merchants and trade. In order for a religion to thrive, its views must sustain the growth of its cohorts’ economy. Therefore, the perception of trade and the numerous benefits obtained from it should at least be endured, if not encouraged. For the duration of the later half of this millennia, Islam and Christianity both had acknowledged trade as a essential means for survival. Islam’s’ perspectives of trade have changed slightly since its beginning. The three documents 2, 5 and 7 each share many common similarities. Each encouraged trade, but only when it is reasonable and moral. Islam instructs that the earnest merchant will be recognized among the martyrs upon his demise. However, in contrast, the corrupt merchant shall be chastised in the end (Doc 2). Ibn Khaldun recognized in the midst of the 14th century the essential need for merchants to preserve a stable economic system (Doc 5). This specific viewpoint acknowledges that of the Quran almost identically. The Islamic toleration of trade was undoubtedly restricted though. As late as the 17th century Islamic courts ruled that merchants should preserve customary practices/traditions and not give in to fresh more lucrative procedures (Doc 7). Islam is an extremely strict religion, but yet it still values the need for a successful economy. While trade was cautiously watched it has always been allowed to provide room for the expansion of Islam. Christianity however, experienced no radical transformations in its understandings on the subject, the policies were undoubtedly if not definitely lessened if not entirely stretched. As Christianity was at its very origin, during the time of 75 CE, the improbability of obeying Christianity as well as being a profitable merchant were highlighted in the Bible. It first becomes apparent through the bible’s text, when the bible reads: â€Å"though the rich man has no place in God’s kingdom.† As Christianity began to progress however, through it have been knowledge and exploration or simply greed, area for the merchant was made in the human insight of God’s plan. As Reginald, the monk of Durham illustrates, the rich man while once a  true Christian will have no more earthly desire for his once sought-after riches. His only desire will be to let go of earthly possessions and begin to seek God (Doc 3). The logic behind the bible’s preachings on trade provides an explanation to the direct sternness of the Christian Holy Book. This therefore lays the foundation for later intellectuals to entangle even more economic open-mindedness within the Christian teachings. By the late 1200s however, an almost Islamic outlook of trade was inherited by the Christians. In 1273, Thomas Aquinas highlights that all trade should be performed in a fair and just manner (doc 4). All throughout Christianity’s expansion, the world experienced many reformations and adaptations. Its outlook of trade wavered considerably from its founding to current day. Without this reformation however, Christianity would in all probability not be as broadly spread as it is today. Christianity and Islam today both share very comparable views/outlooks on trade. While Islam may have developed an effective policy from its early beginnings, Christianity arrived much later after countless years of adaptation and reformation. These guidelines/policies are just one out of the numerous contributing issues that made each of these two well-admired religions the most triumphant the world has ever seen.

Government control Essay

There are many challenges that have to be faced by humanity in the twenty first century. Some of these challenges are major that have to be addressed immediately while there are some challenges that do not require immediate action. The stronger nations are somehow able to tackle some issues but still there are some issues that are difficult to handle. However, the smaller and the weaker countries that lack finances find it difficult to come up with solutions to these 21st century problems. Diversity and unity Diversity is one of the major issues that need attention as people are moving from their native countries to other countries where they find better opportunities. Diversity means differences in cultures, beliefs and habits that create a mixture of cultures. Here, the issue is to maintain harmony amongst the people belonging to different cultures and so it is essential to ensure that harmony does not collapse. Besides diversity, unity is also one major challenges that have to be worked upon and since one country has many different cultures residing in it, maintaining unity is indeed something difficult to achieve. Today, there is an influx of people who have become selfish and they have opted for individualistic approach that has further spoilt the society. Other problems that can be seen are communalism, regionalism and the increase in the rate of violence that is directly and indirectly affecting the value system of the world. Technological advancements Technological advancements have greatly affected the world and are serving as a major challenge. Since these advancements are taking place at a very fast pace, all the nations are trying hard to keep pace with this and for the weaker nations, this serves as a Herculean task to achieve the goals. The first and the foremost thing that has to be done to cure this is to spread literacy and to make everyone educated. It should not be the aim to get degrees and diplomas but the real essence of education should be understood as this will further lead the people to expand their knowledge, wisdom and to develop positive attitudes. However, it is not just important to educate the people but it is also essential to provide with opportunities to the people so that they can use their talents but this is also serving as a major challenge as many people remain unemployed despite of being educated. Industrialization As progress is taking place, industrialization is increasing rapidly and the natural resources are being consumed at a very high rate. Moreover, increase in pollution is also evident and this can bring adverse affects on the people and the environment especially if no action is taken to cure this problem. There are many other strategic challenges that will be faced in the 21st century and most them are caused due to the changes in styles of businesses that have now introduced. Previously, the marketers used to sell one product to the entire market but today, the customers have become more intelligent and savvy and they seek for customer value and since all the companies are battling against each other to grab the share of their piece of cake, it is hard to achieve targets easily as it was done previously. Market volatility has increased and rate at which organizational change is taking place is high and all these changes have a dramatic affect on the business strategies that are made and implemented. When the business needs are changing, it is also a must that there are changes occurring in the requirement of human input too. Employing the right workforce One of the strategic challenges being faced by the companies is the employment of the human resources. The management has to ensure that it employs the workforce that is not only efficient but effective too. However, there are some factors that affect the global instability and there is a huge global impact and people are entering in high numbers in the market that makes it hard for the social arrangement to sustain. Other than this, there is a very vast pool of human resources that are being wasted and this means that the human beings who are being employed are not able to work at their full potential as they not employed in a productive manner. Moreover, more and more people are added to the entire human workforce each year because of which there is a high pressure on the institutions and on the resources. Wastage of resources The non-human resources that are available to the human beings are being wasted at a very high rate. Both the renewable and non-renewable resources are not being fully utilized and are exploited and if this continues, the people will not be left with anything in the future. The environment is having a very negative impact on it because of the human activities that are taking place. The technological explosions are one of the most dangerous as well as costly damage to the society. Other disruptions that are serving as 21st century challenges are air pollution, soil pollution as well as depletion and desertification. Besides this, deforestation and misuse of water are two other factors that are serving as great challenges and if they will not be controlled, this can lead to major problems in the future. Biospheric disruption is another major challenge that needs attention. Despite of the fact that these are unavoidable, we can at least lessen the destruction that can be caused by the natural disasters that includes the climatic, geological, meteorological and space-oriented disasters. Global warming and ozone loss are climatic, earthquakes and eruptions are geological, floods, storms and droughts are meteorological while asteroids are space-oriented. Human insecurity Human insecurity is also a major challenge and this also leading to global unrest due to the violence that is persisting in the world and inter-human combat is occurring due to the ethnic and religious differences. Moreover, hazardous frustration has to be reduced and since the weapons are being created, they are being used as well and since there is an increase in unemployment, terrorism is increasing in the society. People have to fulfill their basic needs without which survival is more than impossible because of which they are doing crime. Due to this, the crime rate is increasing and is leading to unrest in the society and also affecting world peace. The numbers of extremists are increasing day by day and drug dealers have also outnumbered because of which the youngsters are getting immune to drug usage and are doing crime. Medical challenges Countering the medical challenges also needs immediate action and there are two main trends that are causing increase in health concerns. Firstly, both the people and the things are moving and this has caused transfer of various kinds of diseases that the other people are getting from the humans and from the animals. Even the animals that have some kind of disease are a major threat of spreading diseases. Moreover, the animals that are consumed by the human beings are getting diseases such as bird fly and mad cow disease and if any animal suffering from any such disease is consumed by the human being, it will create serious problems for that individual. Secondly, people are using antibiotics at a very high rate and this has produced more resistant mutations. For this, tighter preventives and control measures are required to ensure human security. Rules and laws A global rule is lacking in the world and so it is serving as a challenge to the society as the world is lacking universal rules and these should be created so that global standards are formed. Today, the world has become a global village and for this it is essential for it to have some universal laws and regulations that must be followed by all the countries. However, the international law must keep pace with interdependence as well. Therefore, global rights must be developed and should also be accepted and implemented by the society. It is argued by some governments that human rights are based on the cultures but universally there should be one common ground or code on the basis of which a norm should be developed. Migration Compared to the previous years, the rate of migration has greatly increased and people are looking for more opportunities outside their home country. It has indeed become difficult to handle all these immigrations and to provide jobs to the people who are moving to the other countries such as United States, UK, Canada and Australia. There are refugees too, who are forced to move out of their own countries and these people have to be settled in other countries where they move. These people create problems when they move to other countries and this is resulting in increase in the global issues that have to be dealt on a global level only. Financial money transfers and trade It has also become difficult to maintain global financial checks and since the number of financial transfers is increasing day by day, the role the government plays and the government control is reduced. Moreover, it also threatens the stability of the currencies and so it is suggested to apply certain percentage of taxes on such transfers. International trade is also growing but it is creating new problems for which negotiation has to be done between the trading countries. Moreover, regulation and adjustment is also needed to keep things smooth. The World Trade Organization ensures that it deals with the rapidly growing trade in a proper manner; however there are still some challenges that have to be met. Trade of services is also growing and the world has to face chronic problems with agricultures and other issues such as problems related to international investment. Corruption has also increased at a major rate and this has also become a major challenge to the world trade. There are many economic agreements that are treated globally and they are becoming more and more complex with the increase in trade. Taxing of international trade has become an issue as well and negotiations have to be made to come up to a common stand. Conclusion Due to all the problems that are being faced by the human beings, the rate of global distress is accelerating day by day and this is leading to serious problems. People become frustrated and hopeless due to the current situation. Income divergence is also increasing between nations and this challenge must be addressed immediately. All the 21st century problems that have been talked about above are sociological, philosophical, economic, historical, and geological and they relate to the human activities in some or the other way. The goal of the human beings should always be to minimize the threat that they get from these challenges if they cannot fully be removed. Moreover, the people should be educated about these disasters and challenges and they should be told about the ways they can adopt to reduce any negative impact created by the human activities. Besides this, backup plans should be made to ensure that the destruction is dealt properly and results in least problems. Work Cited Ciulla, Joanne. B. The Working Life: The Promise and Betrayal of Modern Work. 1st Edn. Crown Business / Times Books, 2000. Colwin, Laurie. Goodbye Without Leaving. Harper Perennial, 2000. Hochschild, Arlie. R. The Commercialization of Intimate Life: Notes from Home and Work. University of California Press, 2003. IMF. (2006). Meeting the Challenges of 21st Century Globalization: The Medium-Term Strategy of the IMF. June 4th, 2010. Retrieved from:

Marketing Across Cultures Essay Example | Topics and Well Written Essays - 2000 words - 1

Marketing Across Cultures - Essay Example Thus what is seen is just as important as what is written or what is spoken. Therefore visual or non-verbal communications about brands and products must be adapted to culture to connect with people in high context cultures. In particular, people from high context cultures are more socially oriented and prefer to have face-to-face, or interpersonal dealings in communications (Usunier & Lee, 2009). The idea is to establish some sort of a connection to consumers in high context cultures. For example, when distributing goods in places like China, Japan and India, connections can be made by appealing to local cultural symbols. Japan’s high uncertainty avoidance culture makes it the most difficult market for foreigners to penetrate. High uncertainty avoidance cultures are usually not amenable to anything new or uncertain. Thus the state and social norms typically implement rules and norms to restrict the introduction of uncertainty in terms of the introduction of anything or any ph enomenon that is foreign or different. China and India are cultures that are more amenable to uncertainty than Japan is (Usunier & Lee, 2009). Many products fulfill both a functional need as well as a social need. When deciding how much to adapt an existing product for a new foreign market, which type of need should a marketer focus on? Explain your answer. When adapting an existing product for a new foreign market the marketer should focus on social needs. For example in masculine cultures where men make a majority of the purchasing decisions, the product should be adapted to appeal to men. Likewise, in â€Å"highly feminine individualist cultures† the social and financial burdens are shared by men and women (Usunier & Lee, 2009, p. 71). Thus when adapting an existing product to this culture, the product does not have to be gender-specific. However other cultural norms may require adaptation. For example, explicit images displaying some degree of nudity in packaging may be o ffensive to some cultures. A food product such as a soup brand may want to replace a soup made of forbidden meat products with a more appropriate meat in countries where the meat is not an acceptable food source. This will be particularly important in high uncertainty avoidance cultures. High feminine collectivist cultures are similar to high feminine individualist cultures in that men and women share responsibilities for economic and social decisions. However, these individuals typically lack individual authority. Thus products must be adapted so that they appeal to this group dynamic. It therefore follows that products should be more family oriented as high feminine collectivist cultures emphasize the importance of the family as a whole. As Usunier and Lee (2009), in high feminine collectivist cultures, the entire family has a significant influence on â€Å"consumption behaviour† (Usunier & Lee, 2009, p. 71). Comparing a supermarket in Tokyo, Japan with one in Dallas, Texas , which of the two is likely to have higher sales of snacks and sweets (Items usually found near the cash register at the checkout)? Explain your answer using the most relevant cultural dimension. Items are typically placed near the cash register in supermarkets and other stores generally to appeal to impulsive or unplanned consumer purchasing behaviour. Asian cultures are typically linked to the collectivist dimension of

Research Paper on Whipple's Disease (Epidemiology Course) Proposal

Paper on Whipple's Disease (Epidemiology Course) - Research Proposal Example As earlier noted, it was the year 1907 when GH Whipple was able to discover the existence of Whipple's disease. He primarily noted it as a disease that affects the intestinal systems of the body and is caused by the bacterial Tropheryma Whipplei. It could be observed the disease first affects the function of the small intestines as the said part of the body intends to distribute nutrients to the body during absorption. Hence, because of this fact, it could be expected that once the disease develops in the small intestine, it is sure that the entire body system shall then suffer from the said failure. From this point, Whipple recognized that the disease is a fatal matter once it is not given the right attention needed. Although there had been some developed cure, it is still strongly suggested by medical experts that this particular disease be prevented well through regular bowel check ups. It is through the bowel of a patient that the said disease is being recognized. Likely, because of the malfunction of the small intestines, the bowel also becomes loose. With masses of fat present in the bowel, Whipple's Disease naturally is depicted as the (040.2) intestinal lipodystrophy as its ICD description. It could be observed that its name was transformed as Whipple's disease as an honor to the one who was able to state it as a real disease, an epidemic that is dangerous to human kind. II. NATURAL HISTORY The disease usually begins with regular illnesses that might not be easily detected immediately as a part of Whipple's disease. Undoubtedly, this is the reason why the disease only becomes eminent after two years of understanding and diagnosing the situation upon a patient. At some point, it could be said that the major implicative symptoms of the disease may not be easily detected. Because of the prolonged development of the situation, the function of the small intestine begins to weaken slowly, giving a time for the patient to care less about the said matter. However, as noted above, not treating the symptoms early might cause fatal dangers to the patient being affected by Whipple's disease. To understand the different symptoms further, here are the lists of the said events and body-conditions needed to be looked out for: (a)Typical diarrhea: A typical diarrhea usually lasts for three to four days and then ends. Usually, the return of the illness comes along not within three or four months after the previous diarrhea. However, in the case of Whipple's disease, the matter becomes a serious situation, whereas the patient begins to feel awful of diarrhea almost regularly within the first two months of the development of the disease. (b) abdominal cramping: this may happen due to the stressed status of the small intestines. Besides that, diarrhea itself could cause the pain, especially if the situation keeps on recurring between shorter times of relapse. (c)Fast Wight Loss: Because of constant diarrhea along with the maldistribution of the nutrients to the body, the weight of the patient is likely to drop from normal to state of malnutrition.

Marketing Management in a Global Economy Essay Example | Topics and Well Written Essays - 1250 words

Marketing Management in a Global Economy - Essay Example When dealing with place, the company needs to ask where the buyer will search for the product, how the client will access the correct distribution channels, if they need to use a sales force, and what the competitors do that an individual can learn. For the pricing section of the marketing mix, the company requires to determine what the product’s value is to the client. Whether there is an established price point for services or products in the area, whether the client price is sensitive enough to give one an extra market share with a small price decrease, and how the company’s price compares with the competitors (Doole & Robin, 2008). When it comes to promotion, the company discerns when and where they can get their marketing measures across to their target market, how they can reach their audience via radio, press, or billboards, what time is best to carry their promotion, and whether any environmental issue dictates the marketing launch’s timing. The company a lso needs to determine how its competitors carry out its promotion. 2. Define Value Chain, and give an example of a company that utilizes a Value Chain Delivery Network, further cite the success rate of their value chain network. The concept of the â€Å"value chain†, owes its existence to Michael Porter, a management guru. Value chain refers to the sequential group of support and primary activities, which an enterprise carries out to turn various inputs into outputs that benefit its external customers (Doole & Robin, 2008). Various companies worldwide utilize value chain analysis, although the information shared about it is minimal because knowledge of one’s Value Chain Analysis means loss of competitive advantage. The profit wars have now moved to the supply chain arena with the VCA model now used for modeling across top clients like Target Stores, which utilize various kinds of services in the various quantities. Through the aid of some analytics, the companyâ€℠¢s logistics department can utilize the data for engagement with the customer and search for an optimal supply chain scenario. Toyota Motors is an example of a company that utilizes an integrated value-chain delivery network. Toyota manufactures its automotives via the TPS system, which puts emphasis on a lean system of manufacturing. This system was created to improve the cars’ quality, with the clients also being able to order the cars efficiently and quickly. Toyota Motors possesses an integrated system, known as TPS, in its production process. This system portends various advantages for the company’s production system. This ranges from Human Resource management to its products. This is further evidenced, in the fourteen principles, to which Toyota holds dear, including the quality of service, the efficiency of the production process, in addition with the quality of, the final product. This has allowed Toyota to become the biggest automotive company in the world bec ause of lean management that can be derived from a value chain delivery network. The system allows the company to deliver cars as fast and efficient as possible. 3. What is MIS (from a marketing point of view) and how does it affect the marketing research process? MIS is a system of communications, documents, procedures, and equipment that collects,

Marketing Management Essay Example | Topics and Well Written Essays - 1250 words

Marketing Management - Essay Example The brand has featured some famous personalities for promoting its brand. Coca Cola in Present Coca cola is the world’s largest manufacturer, distributer and marketer of non alcoholic beverages, which has its operation in more than 200 countries. It has introduced new variants to its category such as diet, vanilla and cherry coke. In the year 2002, the company launched new variant c2, which is a low carbohydrate cola, and an energy drink named Full Throttle. The following year, 2003, Coca Cola Company introduced coca cola lime, coca cola zero which was regarded as a low calorie beverage. The company also added a sugar free version of Full Throttle. In the year 2006, the company again introduced new product line which included regular and diet version of Black Cherry Vanilla Coke, energy sodas; Tom Standage, a social historian introduced Coca Cola as among the six beverages which have shaped the world. He was signed as an international symbol of freedom during the cold war in U S. In 2007, the company had acquired Glaceau, which is a beverage company which produces flavored and vitamin water (Giebelhaus, 2008). The company has established a brand that is well renowned globally. Its distribution channel and the product are so huge that it cannot be duplicated. Coca cola has a competitive advantage over its competitors (Sander & Slatter, 2009, p.27). Coca cola has grown to be one of the ubiquitous brands with 1.7 million beverages being sold per day. Recently it had celebrated its 125 years of existence and has developed a recyclable merchandise to be used in grocery stores (The Coca Cola Company, 2011). Evolution of Coca Cola Company The company was started by Dr. John Pemberton who was an Atlanta pharmacist in the year 1886. Coca cola was used as a nerve and brain tonic. The first manufacturing plant was opened in 1884. Coca-Cola was sold to Ernest Woodruff for 25 million dollars. It was woodruff who introduced the first six bottle carton and also made it available in the vending machines in 1929. Promotional tools were used and the first advertisement was made in radio in 1930s following with a commercial advertisement in television in 1950. Currently Coca-Cola is advertised on five hundred TV channels globally. In 1985, Coca Cola Company introduced its diet coke. But the product did not do well in the market thus coke decided to change it to old coke. At present coca Cola is worth more than 58 million dollars. It has been the sponsor of Olympics for the past 65 years (Echeat, 2004). Target market The target market of coca cola is large. It is affordable by any level of income. It is consumed by both males and females. Consumers who drink coca cola are from the different sections from the VIPs to the celebrities to the common people. Coca cola has targeted that section of people who enjoys drinking soft drink and has made it as a part of their lifestyle. Coca cola diet is targeted for people who are older in age (Ma'arif, 2007, p.22 0). The target remains the same. It is targeted to both males and females and of all age groups. Competition positioned Soft drink needs to be carefully positioned with respect to competition as image is important when consumer chose a brand. Competitor of Coca Cola is Pepsi Cola. Both are trying to gain a competitive position in the cola

UAE movie review Example | Topics and Well Written Essays - 1000 words

UAE - Movie Review Example or a person who has not visited Dubai, it may get difficult to imagine that like any other bustling Western metropolitan, Dubai also has a side that is sordid, sad and ironic. Hence, simply speaking, City of Life presents a realistic perspective on Dubai, where a few manage to relish a life of abundance and luxury, while many happen to lead a life of drudgery and frustration. A diverse and multiethnic cast in the movie, with characters affiliated to an array of ethnic, cultural and socio-economic background, the viewers can readily empathize with the travails of each specific character, who is trying to seek out a meaning in an urban society that favors material success, conformity and competition. It will be indeed true to say that at a personal level I really identified with the dilemmas faced by many characters in the movie. Though the movie happened to be multilingual, where many characters conversed in Arabic or Hindi, yet at an emotional and human level, they appeared to seek things in life that we all desire to achieve. It is this aspect of the movie that I believe enhanced it universal appeal and interest. For instance, it is indeed interesting to note that the Emirati young man Faisal, who mostly attires in Arab apparels and speaks Arabic, does not differ much from many American young men in the same age group. The dilemmas and issues faced by Faisal do not happen to be much different from the challenges faced by young people in America. Faisal is presented as torn between a desire to lead a life that is fast paced and engaging, and the family pressure to stick to traditions and to embrace a sense of responsibility. He is shown as being tagged to an age group, where the desire for self assertion and freedom contradict with the pressures accompanying growing up. The very fact that he is born in a life of affluence, he is not able to appreciate as to how lucky he is. The scene in the movie when Faisal returns late at night and the next morning he is awaken

Criminal Justice- Ethics Policy Term Paper Example | Topics and Well Written Essays - 1000 words

Criminal Justice- Ethics Policy - Term Paper Example The ethical policy of the criminal justice system is to be based on the values where the members of the Academy should respect the dignity, worth and rights of every individual – even though they are criminal. This should be the basis of the ethical policy that is to be established for the criminal justice agency. It is necessary to inculcate the actual meaning of ethics in the minds of the members of the agency in order to truly and ethically establish the ethical policies in the agency (Pollock 1998). It is highly necessary to first educate the members of the agency about the importance of ethics in criminal justice. I, as the Head of the criminal justice agency, will first educate my members of the agency about values and importance of ethics in criminal justice system before establishing the same. At the same time the local community and neighborhood watch program should also be considered. The best way is to involve the members of the International Association of Chiefs of Police (IACP), which has over 14000 members in 68 countries. The reason for utilizing them for drafting the document is that they make the most universally representative police association. The IACP always emphasizes the needs and importance of ethics training in law enforcement agencies. Hence there cannot anything better than them to draft the document. They are the most experienced and right people for this job (Souryal, 2010). There will at least a few members of this universal body be available who can take the lead in drafting the document. One aspect that is worth mentioning is incorporation of code of ethics outlining standards of professional conduct in the IACP rule making them the choice of drafting the document. As mentioned earlier the ethical code of conduct outlining the standards of professional in the IACP rule would be the biggest reference for drafting the ethical code document for the

Financial management Essay Example | Topics and Well Written Essays - 3000 words - 2

Financial management - Essay Example The theory acknowledges the use of both equity and debt financing of the firm operations. It holds that each firm has an optimal capital structure at which it maximizes the value of the firm, which is the point when the attractiveness of each additional debt unit declines, upon balancing its costs and benefits it brings to the firm (Ghazouani, 2013). By this the theory links a firm’s financial leverage to its profitability and optimum debt ratio. Proponents of the theory argue that debt financing can enable firms to achieve maximum profitability and value by making a trade off of the accrued benefits and cost. Financing firms with debt has the advantages of corporate tax benefits of the debt, but also suffer risks from bankruptcy and agency costs, which create financial distress for the firm. Tax shields are firm specific factors that influence firms financing decisions. Firms may choose to take additional debt with increases to tax shield offered. According to Chen, â€Å"the trade-off theory predicts that firms will increase their debt level to capture fully tax benefits until the expected marginal benefits are equal to the expected marginal costs of debt† (2012, p. 1). The higher the tax rate the greater the firm’s leverage and effectively a higher enterprise value. By maximizing the use of debt, firms on the other hand become more prone to losses due to increasing risks of bankruptcy. The firm’s over-borrowing could result to failure of paying the principle, chances of defaulting, and in the event of financial distress are unable to get extended credits from financial institutions, failure to pay dividends or attractive for investment (Kim, Heshmati and Aoun, n.d.). In turn they affect the firm’s profitability, performances and its value. Holding other variables constant, a point comes when a further debt increment becomes inversely and directly proportional to its marginal profits and costs,