A bank guarantee and a letter of credit are similar in many ways but they're two different things. The main difference between the two credit security instruments is the position of the bank relative to the buyer and seller of a good, service or basket of goods or services in the event of the buyer's default of payment. These financial instruments are often used in trade financing when suppliers, or vendors, are purchasing and selling goods to and from overseas customers with whom they don't have established business relationships.
A bank guarantee is a guarantee made by a bank on behalf of a customer (usually an established corporate customer) should it fail to deliver the payment, essentially making the bank a co-signer for one of its customer's purchases. Should the bank accept that its customer has sufficient funds or credit to authorize the guarantee, it will approve it. A guarantee is a written contract stating that in the event of the borrower being unable or unwilling to pay the debt with a merchant, the bank will act as a guarantor and pay its client's debt to the merchant.
The initial claim is still settled primarily against the bank's client, and not the bank itself. Should the client default, then the bank agrees in the bank guarantee to pay for its client's debts. This is a type of contingent guarantee. A bank guarantee is more risky for the merchant and less risky for the bank. But this is not the case with a letter of credit.
While a letter of credit is a similar, the principal difference is that it is a potential claim against the bank, rather than a bank's client. For example, a seller may request that a buyer be provided with a letter of credit, which must be obtained from a bank and which substitutes the bank's credit for that of its client. In the event that the borrower defaults, the seller would go the buyer's bank for the payment. The seller's risk is mitigated because it is unlikely that the bank will be unable to pay the debt. A letter of credit is less risky for the merchant, but more risky for a bank.
Banks accept full liability in both cases. With a bank guarantee, a client can default and the bank assumes the liability. With a line of credit, liability rests solely with the bank, which then collects the money from its client.
Tuesday, June 3, 2008
What's the difference between a bank guarantee and a letter of credit?
Performence Evaluation and Effects
Have you heard the story of " The Washer man and the Foolish Donkey" ?
To refresh your memory, and for the benefit of those who have not grown up listening to this moral story, it goes like this…
There was once a washer man who had a donkey and a dog. One night when the whole world was sleeping, a thief broke into the house, the washer man was fast asleep but the donkey and the dog were awake. The dog decided not to bark since the master did not take good care of him and wanted to teach him a lesson. The donkey got worried and said to the dog that if he doesn't bark, the donkey will have to do something himself. The dog did not change his mind and the donkey started braying loudly. Hearing the donkey bray, the thief ran away, the master woke up and started beating the donkey for braying in the middle of the night for no reason.
Moral of the story " One must not engage in duties other than his own"
Now take a new look at the same story…
The washer man ( J ) was a well educated man from a premier management institute. He had the fundas of looking at the bigger picture and thinking out of the box. He was convinced that there must be some reason for the donkey to bray in the night. He walked outside a little and did some fact finding, applied a bottom up approach, figured out from the ground realities that there was a thief who broke in and the donkey only wanted to alert him about it. Looking at the donkey's extra initiative and going beyond the call of the duty, he rewarded him with lot of hay and other perks and became his favorite pet. The dog's life didn't change much, except that now the donkey was more motivated in doing the dogs duties as well. In the annual appraisal the dog managed a " meets requirement" . Soon the dog realized that the donkey is taking care of his duties and he can enjoy his life sleeping and lazing around. The donkey was rated as " star performer". The donkey had to live up to his already high performance standards. Soon he was over burdened with work and always under pressure and now is looking for a job rotation…
Leadership Qualities
If you want to be a leader who attracts quality people, the key is to become a person of quality yourself. Leadership is the ability to attract someone to the gifts, skills, and opportunities you offer as an owner, as a manager, as a parent. I call leadership the great challenge of life.
What's important in leadership is refining your skills. All great leaders keep working on themselves until they become effective. Here are some specifics:
1) Learn to be strong but not rude. It is an extra step you must take to become a powerful, capable leader with a wide range of reach. Some people mistake rudeness for strength. It's not even a good substitute.
2) Learn to be kind but not weak. We must not mistake kindness for weakness. Kindness isn't weak. Kindness is a certain type of strength. We must be kind enough to tell somebody the truth. We must be kind enough and considerate enough to lay it on the line. We must be kind enough to tell it like it is and not deal in delusion.
3) Learn to be bold but not a bully. It takes boldness to win the day. To build your influence, you've got to walk in front of your group. You've got to be willing to take the first arrow, tackle the first problem, and discover the first sign of trouble.
4) You've got to learn to be humble, but not timid. You can't get to the high life by being timid. Some people mistake timidity for humility. Humility is almost a God-like word. A sense of awe. A sense of wonder. An awareness of the human soul and spirit. An understanding that there is something unique about the human drama versus the rest of life. Humility is a grasp of the distance between us and the stars, yet having the feeling that we're part of the stars. So humility is a virtue; but timidity is a disease. Timidity is an affliction. It can be cured, but it is a problem.
5) Be proud but not arrogant. It takes pride to win the day. It takes pride to build your ambition. It takes pride in community. It takes pride in cause, in accomplishment. But the key to becoming a good leader is being proud without being arrogant. In fact I believe the worst kind of arrogance is arrogance from ignorance. It's when you don't know that you don't know. Now that kind of arrogance is intolerable. If someone is smart and arrogant, we can tolerate that. But if someone is ignorant and arrogant, that's just too much to take.
6) Develop humor without folly. That's important for a leader. In leadership, we learn that it's okay to be witty, but not silly. It's okay to be fun, but not foolish.
Lastly, deal in realities. Deal in truth. Save yourself the agony. Just accept life like it is. Life is unique. Some people call it tragic, but I'd like to think it's unique. The whole drama of life is unique. It's fascinating. And I've found that the skills that work well for one leader may not work at all for another. But the fundamental skills of leadership can be adapted to work well for just about everyone: at work, in the community, and at home.
COPYRIGHT vs. TRADEMARK vs. PATENT
Some people confuse patents, copyrights, and trademarks. Although there may be some similarities among these kinds of intellectual property protection, they are different and serve different purposes.
What Is a Copyright?
Copyright is a form of protection provided to the authors of "original works of authorship" including literary, dramatic, musical, artistic, and certain other intellectual works, both published and unpublished. The 1976 Copyright Act generally gives the owner of copyright the exclusive right to reproduce the copyrighted work, to prepare derivative works, to distribute copies or phonorecords of the copyrighted work, to perform the copyrighted work publicly, or to display the copyrighted work publicly.
The copyright protects the form of expression rather than the subject matter of the writing. For example, a description of a machine could be copyrighted, but this would only prevent others from copying the description; it would not prevent others from writing a description of their own or from making and using the machine. Copyrights are registered by the Copyright Office of the Library of Congress.
What Is a Trademark or Servicemark?
A trademark is a word, name, symbol or device which is used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others. A servicemark is the same as a trademark except that it identifies and distinguishes the source of a service rather than a product. The terms "trademark" and "mark" are commonly used to refer to both trademarks and servicemarks.
Trademark rights may be used to prevent others from using a confusingly similar mark, but not to prevent others from making the same goods or from selling the same goods or services under a clearly different mark. Trademarks which are used in interstate or foreign commerce may be registered with the Patent and Trademark Office. The registration procedure for trademarks and general information concerning trademarks is described in a separate pamphlet entitled "Basic Facts about Trademarks".
What Is a Patent?
A patent for an invention is the grant of a property right to the inventor, issued by the Patent and Trademark Office. The term of a new patent is 20 years from the date on which the application for the patent was filed in the United States or, in special cases, from the date an earlier related application was filed, subject to the payment of maintenance fees. US patent grants are effective only within the US, US territories, and US possessions.
The right conferred by the patent grant is, in the language of the statute and of the grant itself, "the right to exclude others from making, using, offering for sale, or selling" the invention in the United States or "importing" the invention into the United States . What is granted is not the right to make, use, offer for sale, sell or import, but the right to exclude others from making, using, offering for sale, selling or importing the invention.
(Excerpted from General Information Concerning Patents, U.S. Patent and Trademark Office website)
Some additional differences between a copyright and a trademark are as follows:
1. The purpose of a copyright is to protect works of authorship as fixed in a tangible form of expression. Thus, copyright covers: a) works of art (2 or 3 dimensional), b) photos, pictures, graphic designs, drawings and other forms of images; c) songs, music and sound recordings of all kinds; d) books, manuscripts, publications and other written works; and e) plays, movies, shows, and other performance arts.
2. The purpose of a trademark is to protect words, phrases and logos used in federally regulated commerce to identify the source of goods and/or services.
3. There may be occasions when both copyright and trademark protection are desired with respect to the same business endeavor. For example, a marketing campaign for a new product may introduce a new slogan for use with the product, which also appears in advertisements for the product. However, copyright and trademark protection will cover different things. The advertisement's text and graphics, as published in a particular vehicle, will be covered by copyright - but this will not protect the slogan as such. The slogan may be protected by trademark law, but this will not cover the rest of the advertisement. If you want both forms of protection, you will have to perform both types of registration.
4. If you are interested in protecting a title, slogan, or other short word phrase, generally you want a trademark. Copyright law does not protect a bare phrase, slogan, or trade name.
5. Whether an image should be protected by trademark or copyright law depends on whether its use is intended to identify the source of goods or services. If an image is used temporarily in an ad campaign, it generally is not the type of thing intended to be protected as a logo.
6. The registration prcesses of copyright and trademark are entirely different. For copyright, the filing fee is small, the time to obtain registration is relatively short, and examination by the Copyright Office is limited to ensuring that the registration application is properly completed and suitable copies are attached. For trademark, the filing fee is more substantial, the time to obtain registration is much longer, and examination by the Trademark Office includes a substantive review of potentially conflicting marks which are found to be confusingly similar. While copyright registration is primarily an administrative process, trademark registration is very much an adversarial process.
7. Copyright law provides for compulsory licensing and royalty payments - there is no analogous concept in trademark law. Plus, the tests and definition of infringement are considerably different under copyright law and trademark law.
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Monday, June 2, 2008
How to Improve Your Memory & Exercise Your Brain
Everyone can take steps to improve their memory, and with time and practice most people can gain the ability to memorize seemingly impossible amounts of information. Whether you want to win the World Memory Championships, ace your history test, or simply remember where you put your keys, this article can get you started. Scientists believe that exercising your brain can create a ‘cognitive reserve’ that will help you stay sharp as you age.
1. Convince yourself that you do have a good memory that will improve. Too many people get stuck here and convince themselves that their memory is bad, that they are just not good with names, that numbers just slip out of their minds for some reason. Erase those thoughts and vow to improve your memory. Commit yourself to the task and bask in your achievements — it’s hard to keep motivated if you beat yourself down every time you make a little bit of progress.
2. Keep your brain active. The brain is not a muscle, but regularly “exercising” the brain actually does keep it growing and spurs the development of new nerve connections that can help improve memory. By developing new mental skills—especially complex ones such as learning a new language or learning to play a new musical instrument—and challenging your brain with puzzles and games you can keep your brain active and improve its physiological functioning.
3. Exercise daily. Regular aerobic exercise improves circulation and efficiency throughout the body, including in the brain, and can help ward off the memory loss that comes with aging. Exercise also makes you more alert and relaxed, and can thereby improve your memory uptake, allowing you to take better mental “pictures.”
4. Reduce stress. Chronic stress, although it does not physically damage the brain, can make remembering much more difficult. Even temporary stresses can make it more difficult to effectively focus on concepts and observe things. Try to relax, regularly practice yoga or other stretching exercises, and see a doctor if you have severe chronic stress.
5. Eat well and eat right. There are a lot of herbal supplements on the market that claim to improve memory, but none have yet been shown to be effective in clinical tests (although small studies have shown some promising results for ginkgo biloba and phosphatidylserine). A healthy diet, however, contributes to a healthy brain, and foods containing antioxidants—broccoli, blueberries, spinach, and berries, for example—and Omega-3 fatty acids appear to promote healthy brain functioning. Feed your brain with such supplements as Thiamine, Vitamin E, Niacin and Vitamin B-6. Grazing, eating 5 or 6 small meals throughout the day instead of 3 large meals, also seems to improve mental functioning (including memory) by limiting dips in blood sugar, which may negatively affect the brain.
6. Take better pictures. Often we forget things not because our memory is bad, but rather because our observational skills need work. One common situation where this occurs (and which almost everyone can relate to) is meeting new people. Often we don’t really learn people’s names at first because we aren’t really concentrating on remembering them. You’ll find that if you make a conscious effort to remember such things, you’ll do much better. One way to train yourself to be more observant is to look at an unfamiliar photograph for a few seconds and then turn the photograph over and describe or write down as many details as you can about the photograph. Try closing your eyes and picturing the photo in your mind. Use a new photograph each time you try this exercise, and with regular practice you will find you’re able to remember more details with even shorter glimpses of the photos.
7. Give yourself time to form a memory. Memories are very fragile in the short-term, and distractions can make you quickly forget something as simple as a phone number. The key to avoid losing memories before you can even form them is to be able to focus on the thing to be remembered for a while without thinking about other things, so when you’re trying to remember something, avoid distractions and complicated tasks for a few minutes.
8. Create vivid, memorable images. You remember information more easily if you can visualize it. If you want to associate a child with a book, try not to visualize the child reading the book – that’s too simple and forgettable. Instead, come up with something more jarring, something that sticks, like the book chasing the child, or the child eating the book. It’s your mind – make the images as shocking and emotional as possible to keep the associations strong.
9. Repeat things you need to learn. The more times you hear, see, or think about something, the more surely you’ll remember it, right? It’s a no-brainer. When you want to remember something, be it your new coworker’s name or your best friend’s birthday, repeat it, either out loud or silently. Try writing it down; think about it.
10. Group things you need to remember. Random lists of things (a shopping list, for example) can be especially difficult to remember. To make it easier, try categorizing the individual things from the list. If you can remember that, among other things, you wanted to buy four different kinds of vegetables, you’ll find it easier to remember all four.
11. Organize your life. Keep items that you frequently need, such as keys and eyeglasses, in the same place every time. Use an electronic organizer or daily planner to keep track of appointments, due dates for bills, and other tasks. Keep phone numbers and addresses in an address book or enter them into your computer or cell phone. Improved organization can help free up your powers of concentration so that you can remember less routine things. Even if being organized doesn’t improve your memory, you’ll receive a lot of the same benefits (i.e. you won’t have to search for your keys anymore).
12. Try meditation. Research now suggests that people who regularly practice “mindfulness” meditation are able to focus better and may have better memories. Mindfulness (also known as awareness or insight meditation) is the type commonly practiced in Western countries and is easy to learn. Studies at Massachusetts General Hospital show that regular meditation thickens the cerebral cortex in the brain by increasing the blood flow to that region. Some researchers believe this can enhance attention span, focus, and memory.
13. Sleep well. The amount of sleep we get affects the brain’s ability to recall recently learned information. Getting a good night’s sleep – a minimum of seven hours a night – may improve your short-term memory and long-term relational memory, according to recent studies conducted at the Harvard Medical School.
14. Build your memorization arsenal. Learn pegs, memory palaces, and the Dominic System. These techniques form the foundation for mnemonic techniques, and will visibly improve your memory.
15. Venture out and learn from your mistakes. Go ahead and take a stab at memorizing the first one hundred digits of pi, or, if you’ve done that already, the first one thousand. Memorize the monarchs of England through your memory palaces, or your grocery list through visualization. Through diligent effort you will eventually master the art of memorization.
How to Be Charming & Charismatic
Have you ever noticed how some people captivate everyone they speak to? No matter what they look like or how much money they have, they can walk into a room and instantly be the center of attention. When they leave, people think highly of them and want to emulate them. That’s charisma, a sort of magnetism that inspires confidence and adoration.
Like beauty, luck, and social position, charisma can open many doors in life. Unlike these other qualities, anyone can become more charismatic.
- Improve your posture. Good posture will give the impression of self confidence (even if you don’t feel that way on the inside). While walking, maintain a relaxed yet definitive upright posture: spine long, shoulders back, head level with the ground. This may feel awkward or overpowering to you when you first practice it, but keep trying.
- Relax the muscles in your face to the point where you have a natural, pleasant expression permanently engraved there. Face the world and show everyone you’re not afraid.
- Make a connection. When your eyes come in contact with another person’s, nod and smile subtly with a subdued joy shining forth. Don’t worry about the other person’s reaction and don’t overdo it.
- Remember people’s names when you meet them for the first time. This takes an enormous amount of effort for most people. Repeat the person’s name when stating your name to that person will help you to remember it better. For example: “Hi Jack, I’m Wendy.” Follow through with small talk and repeat the person’s name. Repeat it once more when you say goodbye. It’s not just about helping you to remember that person. The more you say a person’s name, the more that person will feel that you like them and the greater the chance they’ll warm up to you.
- Be interested in people. If you meet a new acquaintance, for example a coworker, a classmate, a friend of a friend, etc. find out about their immediate family and interests. Be sure to ask after the names of family members and remember them. Be careful in that subject though you don’t want to be nosy. If you ask too much they will become uncomfortable. Also ask after their particular interests in life. These two topics will ensure much better small talk than just harping on about school or work. Most people don’t like to think about those things at social occasions unless they have to. Even if it is about networking, you should understand fully the worth of taking a break from talking shop. It is important to refrain from talking up about yourself. Be purely interested and impressed by the person with whom you are speaking.
- Orient topics toward the audience. This means taking into account topics that interest those around you, even if you are not so keen on them. If you are in a sporty crowd, talk about last night’s game or the meteoric rise of a new team. If you are amongst a group of hobbyists, draw out their hobbies and make remarks related to fishing, knitting, mountain climbing, movies, etc. Nobody expects you to be an expert. It is your level of interest and willingness to engage in topics that makes you an interesting person to be around. Exercise an open mind. Let others do the explaining. If someone mistakenly thinks you know more about the topic, be genuine and simply say that your knowledge is limited but that you are hoping to learn more about it.
- Praise others instead of gossiping. If you are talking with someone or you are talking in a group of people, and up pops the subject of another person in a positive or negative way, be the one to mention something you like about that person. Hearsay is the most powerful tool in gaining charm because it is always viewed as 100% sincere. It has the added benefit of creating trust in you. The idea will spread that you never have a bad word to say about anyone. Everyone will know that their reputation is safe with you.
- Don’t Lie. A lie is something you say for which there is some direct evidence somewhere out there that contradicts it. If you tell Mary that you like Jane and Billy that you don’t like Jane, Mary and Billy will talk and your reputation will be ruined. No one will believe a word you say.
- Issue compliments generously, especially to raise others’ self esteem. Try to pick out something that you appreciate in any situation and verbally express that appreciation. If you like something or someone, find a creative way to say it and say it immediately. If you wait too long, it may be viewed as insincere and badly timed, especially if others have beaten you to it. If you notice that someone is putting a lot of effort into something, compliment it, even if you feel that there is room for improvement. If you notice that someone has changed something about themselves haircut, manner of dress) notice it, and point out something you like about it. If you are asked directly, be charming and deflect the question with a very general compliment.
- Be gracious in accepting compliments. Get out of the habit of assuming that the compliment is being given without genuine intent. Even when someone makes a compliment out of contempt, there is always a germ of jealous truth hiding in their own heart. Be effusive in accepting the compliment. Go beyond a mere “thank you” and enjoin this with “I’m glad you like it” or “It is so kind of you to have noticed.” These are “compliments in return.” Avoid backhanding a compliment. There is nothing worse to a person complimenting than to receive the response “Oh well I wish I was as ______ as you/that situation.” That is tantamount to saying, “No, I am not what you are saying I am, and your judgment is wrong.”
- Control your tone of voice. The tone of your voice is crucial. Most people feel insecure somewhere inside and have an inability to accept praise. For this very reason, when you praise, do it subtly and glibly. When you say, “you look nice today” it should be in the exact same tone that you would use to say “it’s a nice day.” Any variation from your normal tone will arouse suspicion about your sincerity. Practice giving compliments into a recorder and play it back. Does it sound sincere? Practice until you get it right.. It might not sound right to you, in that case, ask someone for judgement.
Tips
- Developing charisma is an art. The general guidelines above can help you be more charismatic, but your charisma must come from within you and must reflect you as an individual or it will appear fake. Fortunately, everyone has the ability to be charismatic, and it simply needs to be coaxed out. Practice and take note of what works and what needs improvement.
- Don’t mimic others. People with well developed charisma have a remarkable ability not only to sway people’s opinions but also to cause others to emulate their personalities and even gestures. At the same time, however, research has shown that charismatic people do not emulate other charismatic people. Their individuality sets them apart.
- Have a message. Don’t be afraid to be controversial, to push the envelope. If you believe in something or feel strongly about it, communicate that in a respectful way. Your charisma will help people be accepting of your ideas.