RIP Nelson Mandela : Former South Africa Dies at 95

Nelson Mandela

Former South African President Nelson Mandela, who battled apartheid and served as the first black president elected to office in his country from 1994-1999, has died. He was 95. Mandela was hospitalised June 8 for a lung infection following a history of recurring health issues, and his family began gathering at his Johannesburg home earlier today. South African president Jacob Zuma made the announcement just now in a national address.

Imprisoned in 1962, Mandela spent 27 years as a political prisoner in his own country before his 1990 release and subsequently led the charge to end apartheid with the African National Congress. His fight made him an international symbol for peace and progress, earning him the Nobel Peace Prize in 1993, and he became a pop culture icon that resulted in everything from feature film and TV movies about him to mass-produced T-shirts and close ties with high-profile figures from Bill Clinton to Bono. The most recent film based on his life is the Weinstein Co’s Idris Elba-starring Mandela: Long Walk To Freedom, which is based on Mandela’s autobiography. It premiered at the Toronto Film Festival in September, opened in theaters November 29 and is getting awards-season buzz.


Former South African leader Nelson Mandela, known as “Madiba” to many, has died on Thursday, said President Jacob Zuma. Zuma made an announcement on Thursday, reported The Associated Press.

“Our beloved Nelson Mandela, the founding president of our democratic nation, has departed. He passed peacefully,” Zuma wrote on Twitter.

“He is now resting. He is now at peace,” he said, adding that “our nation has lost its greatest son. Our people have lost a father.”

Photos uploaded to Twitter showed a massive media presence outside the home in Houghton on Thursday evening. The road outside the home was closed to traffic and police were patrolling.
According to NBC, a tribal elder was seen at the home, while emergency vehicles were spotted outside.

The Daily Telegraph reported that his two granddaughters and friend Bantu Holomisa were seen entering the home on Wednesday night. “Things are quite gloomy,” an unnamed family friend was quoted as saying.

Makaziwe, his eldest daughter, told the paper that Mandela is on his “deathbed” earlier this week.

“Even when there are moments when you can see he’s struggling, but the fighting spirit is still there with him,” she was quoted as saying.

Makaziwe told the BBC: “Even for a lack of a better word… on his deathbed he is teaching us lessons – lessons in patience, in love, lessons of tolerance.”

Mandela is a respected figure around the world for his fight against racism in South Africa during the apartheid era. He spent 27 years in prison but was later elected as South Africa’s first black president. In South Africa, he is often referred to by his Xhosa clan name of Madiba, or sometimes “Tata,” which means father.

Since September, the 95-year-old statesman has been receiving around-the-clock care at his house after he was discharged from the hospital. There were similar rumors spread about his death on social media sites earlier this year.

Grandson Ndaba also said that he is ”not doing well at home in bed,”reported News Ltd. But his daughter, Zindzi, told the Telegraph in London that Mandela is “fine” but is in “frail” health.


On Twitter, the rumors were flying before an official announcement was made.

GOLD NEAR MAJOR RESISTANCE LINE

GOLD The yellow metal obeyed us and gave a good bounce thanks to the heaven bids and +ve divergence indicators. If we give an extension to the upper trend line, it will show the resistance at $1,251.4. Until it crosses and sustains above the white upper trend line, it looks towards south near supports. The hourly indicators gave an overbought signal. In Asian's trading session gold is trading in a tight range 1,242-1,236. Downside levels - 1,242; 1,236; 1,230; 1,227; 1,220; 1,210; 1,200; 1,195; 1,185. Resistance- 1,251.5; 1,264; 1,275; 1,290; 1,294. Trade- buy above 1,251.5 for targets 1,264. Next powerful run only above 1,264 towards 1,275. Close above 1,294 gives fresh buy signal. trade - sell 1.231; 1230; 1228 taget is 1215

A Look Inside Paul Walker’s Garage

Rest in peace, Paul Walker. The 40 year old star of the Fast and Furious franchise, among other films, passed away this weekend in an unfortunate accident as a passenger in a Porsche Carrera GT. It was a sad weekend for movie lovers and car nuts everywhere.
But Paul knew cars, and his garage gave us a snapshot of just how much of a gearhead he really was. You’ll be missed, Paul.

Toyota Supra

Like his character in the first Fast and Furiousfilm, Walker owned drop dead gorgeous Toyota Supra. Albeit a bit more subtle than the modded-out movie car.

Ford GT

Another ride from the film series, Paul’s Ford GT is not one to be taken lightly.


Porsche Carrera GT

Unfortunately, this is the car that Walker, along with driver Roger Rodas, took their final ride in only a few days ago… (ed. note: reports have suggested this was not Walker’s personal Porsche but rather Rodas’)



Nissan Skyline

After a small stint with the Toyota Supra in the first film, Walker’s character switched rides to a Nissan Skyline and never looked back. We think it was a good decision.





Ferrari 360 Challenge Stradale

The Ferrari 360 Challenge Stradale never made its way into the Fast and Furious films, but this 400 horsepower prancing pony would have made a great addition.


BMW M3 E30

A classic E30 BMW M3 — Walker had good taste in cars if you ask us.


Porsche 911 GT3RS

A monster on the road and the track, the 600 horsepower Porsche 911 GT3RS is a thing of beauty.


BMW M1

And last, but certainly not least — the BMW M1. This 270 horsepower icon is the cherry on top of Walker’s long line of amazing cars, just a small peace of his legacy that soon won’t be forgotten by enthusiasts everywhere. RIP.


Photo Credit: TheBackpacker / Reddit

Paul Walker dies in California car crash (Fast & Furious actor )

BBC's Catharina Moh on Paul Walker's career

US actor Paul Walker, who starred in the Fast & Furious series of action films, has been killed in a car crash in California. Walker, 40, was a passenger in a Porsche sports car driven by a friend - who also died - when it crashed north of Los Angeles. Walker was said to be attending a charity event at the time. He starred in all but one of the films in the Fast & Furious franchise, the sixth of which opened in May. Walker also starred in the suspense drama Hours, a movie that is set for release this month. he Los Angeles County Sheriff's department said the crash happened in the community of Valencia.

The red Porsche crashed into a lamp post in Valencia, north of Los Angeles

The sports car burst into flames after the crash

It said deputies found a car engulfed in flames when they responded to a report of a collision. Two people found in the car were pronounced dead at the scene. Images showed the burned-out wreckage of a red Porsche by the side of the road.

"It is with a truly heavy heart that we must confirm that Paul Walker passed away today in a tragic car accident while attending a charity event for his organisation Reach Out Worldwide," the statement on the actor's Facebook page said.

" He was a passenger in a friend's car, in which both lost their lives. We... are stunned and saddened beyond belief by this news.''

Universal Pictures also issued a statement, saying studio staff were "heartbroken" by Walker's death.

"Paul was truly one of the most beloved and respected members of our studio family for 14 years, and this loss is devastating to us, to everyone involved with the Fast & Furious films, and to countless fans.

"We send our deepest and most sincere condolences to Paul's family."

Walker played undercover agent Brian O'Conner in the Fast & Furious movies. The first film of the franchise was released in 2001 and the seventh is in development. Walker was one of the leading protagonists, along with Vin Diesel and Michelle Rodriguez. Diesel said in a post on Instagram: "Brother I will miss you very much. I am absolutely speechless. Heaven has gained a new Angel. Rest in Peace."

Walker's co-star Vin Diesel (left) said the actor's death had left him 'speechless'

Another Fast & Furious star, the rapper Ludacris, wrote: "Your humble spirit was felt from the start, wherever you blessed your presence you always left a mark, we were like brothers". Walker began acting as a young boy when his mother, a model, took him to auditions for commercials. After drifting away from acting, he got his big break when a casting director remembered him from years before, tracked him down and gave him a role in the TV series Touched by an Angel. Walker later won a recurring part in the soap The Young and the Restless before moving on to supporting roles in teen films in the late 1990s with Varsity Blues, She's All That and The Skulls. After the success of the first Fast & Furious film, Walker became the leading man for the second instalment when Vin Diesel dropped out.

The sixth instalment of the Fast & Furious franchise topped the US box office

Diesel later returned, however, and the six-film franchise has earned an estimated $2.4bn (£1.5bn) at global box offices. The series has not lost its appeal, with the latest instalment, the sixth, the most lucrative so far. The seventh instalment began filming in September but has not been completed. It had been scheduled for release in July. Walker has also filmed Hurricane Katrina drama Hours, which is due to be released on 13 December. Another forthcoming film is Brick Mansions, a remake of the French action film District B13, for film studio Relativity. Relativity President Tucker Tooley said in a statement: "Paul was an incredibly talent artist, devoted philanthropist and friend."

TAX COLLECTION SYSTEM

Tax collection system divided into three systems, namely:

1. According to the time of collection

• Voorheffing : Withholding taxes done at the beginning of the tax year
• Naheffing : Withholding tax at the end of the tax year

2. According to the assessment base

• Fictitious system (assumption)

Tax collection system is based on a legal fiction or presumption. Assumptions used for example assume that the income received by the taxpayer is the same for each year. Then after the end of the tax year can be seen the amount of income a taxpayer, then it can be determined the amount of tax for the next year. In this assumption can be applied to systems of taxation at the way ahead (voorheffing).

• Real System

In a real system, tax collection is based on a real situation or income / taxpayer actually received. In this system of taxation can only be done by the end of tax collection / rear (Naheffing).

• Mix System

In the mixed system, in the early years of the debt tax imposed on the taxpayer is calculated based on the assumption the system, so at the beginning of the year is liable to tax assessments fictitious. After the end of the tax year of tax debts corrected and adjusted to the actual situation with use real system. That's when an assessment is issued final. If the amount of taxes in reality greater than the tax under the assumption, then the taxpayer must increase, and vice versa if it is smaller than the excess may be refunded.

3. According to the tax set

• Official Assessment System

Official Assessment System that tax collection system which states that the amount of tax payable by the taxpayer calculated and set by the tax authorities or the tax authorities. In this system the tax debt arises when you have a tax assessment from the tax authorities (in accordance with the formal teaching about the onset of tax debt). So in this case the taxpayer is passive.

• Self Assessment System

Self Assessment System is the system where the tax collection authority to calculate the amount of tax payable by the taxpayer submitted by the tax authorities to the taxpayer is concerned, so that the systems of these taxpayers must be active to count, deposit and report to the Tax Office (KPP), while tax authorities assigned to provide lighting and surveillance.

• With Holding System

With Holding System which tax collection system which states that the amount of tax payable is calculated by a third party (who is not the taxpayer and the tax authorities nor / tax authorities).

PRINCIPLE TAX COLLECTION

The principle of taxation at the opinion of the experts:

In order to achieve the purpose of tax collection, some experts argued about the principle of taxation, among other things:

1. According to Adam Smith in his Wealth of Nations with the teachings of the famous "The Four Maxims", the principle of levying taxes is as follows.

• Equality principle (principle of balance with the ability or fairness): tax collection by the state should be in accordance with the capabilities and income tax payers. State should not discriminate against taxpayers.
• Certainty Principle (principle of legal certainty): all taxation should be based on law, so for those who violate the law will be subject to sanctions.
• Principle of Convenience of Payment (the principle of taxation at the right time or the pleasure principle): taxes should be levied at the right time for taxpayers (the best time), for example when a new taxpayer received income or when the taxpayer receives a prize.
• Efficiency principle (principle of efficient or economic principles): the cost of tax collection is cultivated sparingly, not to place the cost of collecting more tax from the tax collections.

2. According W.J. Langen, the principle of levying taxes is as follows:

• Principle endures power: the size of the tax collected should be based on the size of the income of the taxpayer. The higher the income the higher the tax imposed.
• The principle benefits: tax levied by the state must be used for activities that are beneficial to the public interest.
• The principle of welfare: the tax levied by the state are used to improve the welfare of the people.
• The principle of equality: in the same conditions between taxpayers with one another should be taxed the same amount (treated the same).
• Principle smallest burden: tax collection sought smallest (as low as) when compared with the value of the tax object so as not to burden the taxpayers.

3. According to Adolf Wagner, the principle of tax collection is as follows:

• Principle financial politics : the amount of tax collected is adequate so as to finance or encourage all state activities.
• Economic Principle : determination of the tax object should be appropriate, such as: income tax, tax on luxury goods
• The principle of justice : the general tax levy applies without discrimination, for the same conditions are treated equally.
• Principle administration : issues concerning taxation certainty (when and where to pay taxes), billing flexibility (how to pay) and the cost of taxes.
• Juridical principle : all taxation should be based on the Act.

Principle imposition of tax

That the state may impose taxes on citizens or to an individual or other entity that is not its citizens, but is linked to the state, of course, there must be provisions that govern them. For example in Indonesia, as expressly stated in Article 23 paragraph (2) of 1945 Act that any tax to finance specified by law. To be able to establish a taxation legislation, necessary principles or foundations that will be the foundation of the state to impose a tax.
There are some principles that can be used by the state as a principle in determining the authority to impose taxes, especially income tax. The main principle is most often used by the state as the basis for taxing is:

1. The principle is called the principle of domicile or residence (Domicile / residence principle): based on the principle of the state will impose a tax on the income received or accrued by the individual or entity, if for tax purposes, an individual is a resident (resident) or domiciled in the country or if the entity is domiciled in the country concerned. In this regard, no question of where the income will be taxed is coming from. That is why the countries that follow this principle, the system of taxation of the population it will incorporate the principle of domicile (residence) with the concept of the tax on his income earned in that country as well as income earned abroad (world-wide income concept) .
2. The principle sources: the State adheres to the principle sources will impose a tax on the income received or accrued by the individual or entity only if the income will be taxed was earned or received by an individual or body concerned of the sources in the country. In principle, it is not a question of who and what the status of the person or entity who obtained such income for the foundation are imposition tax object or tax arising from that country. Example: Foreign workers working in Indonesia, from Indonesia's earned income will be taxed by the government of Indonesia.
3. The principle of nationality or principle called the principle of nationality or citizenship (nationality / citizenship principle): In this principle, which is the basis of taxation is the citizenship status of the persons or entities that earn income. Based on this principle, it does not matter from which income will be taxed from. As well as the principle of domicile, taxation system based on the principle of nationality was done by combining the nationality principle to the concept of taxation on worldwide income.

SOCIAL CAPITAL AND ECONOMIC RESOURCES

The word of ‘capital’ is the key word that has a supporting capacity of the movement and the progress of economic activity. In economic capital, there are at least three types of capital: liquidity, land, and energy.
Social capital can open a business opportunity by taking the advantage of information exchange to make the dynamic allocation of product or resources, minimize the risk by taking the advantage from non-economic network. The highest risk in the economic is coming from non-economic factor, and social capital can be operated to suppress these risk factor optimally.

Definition, Types, and Social Capital Characteristics

The sociological approach to the economy introduces the concept of social capital which was initially developed by Coleman. Coleman defines the social capital as an entity with two characteristics; consist of several aspects of social structures that facilitate the action in these structures.

Types and Characteristic of Social Capital

1. Value Interjections

• Operating Principle: Socialization into consensual established beliefs 
• Individual Motivation for Compliance: Principled 
• Classical Referents: Durkheim’s (1984) analysis of the social underpinnings of legal contract 
• Modern Application: Functionalist economic sociology (parson and Smelser) 

2. Reciprocity Exchange

• Operating Principle: Norm of reciprocity in face-to-face interaction 
• Individual Motivation for Compliance: Instrumental 
• Classical Referents: Simmel’s analysis of exchange in dyads and trials 
• Modern Application: Exchange and power in social life 

3. Bounded Solidarity

• Operating Principle: Situational reactive sentiments 
• Individual Motivation for Compliance: Principled 
• Classical Referents: Marx and Engels’s analysis the emergence of working class consciousness 
• Modern Application: Solidarity bond in immigrant and ethnic communities 

4. Enforceable Trust

• Operating Principle: Particularistic Reward and Sanction linked to group membership 
• Individual Motivation for Compliance: Instrumental 
• Classical Referent: Weber’s analysis of substantive rationality in economic transaction 
•  Modern Application: Dynamic of entrepreneurships 

World Bank gives high attention by studying the capital role and implementation especially for poverty reduction in developing countries. The ideologies that developed by the World Bank employ social capital that is based in the following assumptions:
1. Social capital is in the economic, social, and political linkages, believing that social relationships affect the way the market and the state works.
2. A stable relationship among the actors can promote the effectiveness and efficiency of both collective and individual behavior.
3. Social capital in a community can be strengthened and that requires the support of a particular resources
4. In order to create good social relationships and institutional, the community members must support it give their support.

Social Capital Categories

The categories of social capital may be specified in several forms, namely: experience, network, connection, and honesty. As described in the previous chapter, economy is embedded to the social aspect; social capital is also equivalent to the economic capital.

Education

Hypothesis: the higher the education a person has, the greater economic opportunity he has, which affects the level of income.
In general, according to functionalist’s perspective, the principles of education contribution to the advancement in industrial are:

1. Change of technology has made the works in industrial society requires education, because of two things:

• The proportion of works that require high skill increases, while on the other hand, the low skill works have been diminishing.
• The same jobs continue to require increase in skill.

2. Formal education provides the necessary training to the people in getting the higher skilled job.

3. Education requirements in the labor market continue to increase and more people are required to study longer.

Experiences

Hypotheses: the more experienced a person in a person in a particular job, the more needed he is in labor market, thus will affect the level of income.

Networks

Hypothesis: the more extensive the network a person establishes, the easier for him to face the job competition. Two advantages can be obtained from the network:

• The information benefit. The existence of this mutual network has support its members by providing access, employment references or in other words, giving the informal information and security.
• The ability to control. Someone can identify the structural opportunities that exist in the network such as exploiting the specific contacts in the negotiation process.

Connection

Hypothesis: the more connections one has, the easier for him to enter the labor market. As a strategy of labor candidate recruitment, some corporations have been practicing connectivity. To obtain new employment, the company allows its workers to recommend someone who have a relationships with him.

Honesty

Hypothesis: the more honest a person in his workplace, the greater the market trust him, and the longer working relationship is established. The basic of relationship, both social and economic, are honesty. The prevailing values in the social reject all forms of fraudulent behavior. Similar to the prevailing values in the economy, it also intolerant all forms of fraud and cheating.

RATIONALITY EXCHANGE

Economic Exchange Rationality

The classic economics, which was figured by Adam Smith, as well as by David Ricardo, John Stuart Mill and Jeremy Benthan, observe that humans are rational individuals who maximize profit or material benefit from the transactions or exchange with the others in the free market place. The calculation of cost when determining the choices based on these various alternatives is included in this rationality.

Based on cost and benefit analysis (Harris, 1977, 1979), economic decisions in all communities are produced by individuals or groups, by intentionally considering the advantages which is compared with estimated cost.

Economic Market Rationality

The economic market is the aggregate of the transactions in a very large number. Any ongoing transaction are assumed to occur only if the exchange make benefit for both sides. Thus, benefits are the market rationality. The rationality means expectation that contained in the exchange actors mind.
Rationality: Consistency and Maximization

The practice of rationality in human beings can be identified by using two approaches:

1. Rationality as internal consistency of choice.

2. Rationality as an action that aims to maximize self-interest that is reasonableness of decision-making procedures.

Rational attitude is constantly required a link between the objectives and the means. Therefore, maximizing self-interest is the part of the economic rational behavior.

Rationality and Preference

Economic rationality means that individuals will make up his favorable mind according to his preferences in a prospective situation. Seeing the opportunities is seeing the possibilities for action as well as calculating the consequences that may occur.

As an illustration of when consumers will buy a smartphone, it will first consider a few things like branded products, product features, and price products at the same time take into account the consequences that will result. And when consumers buy Smartphone certainly trust that consumers who purchased a Smartphone can deliver profits in line with expectations and costs incurred.

Preference and opportunities are fundamental factor in the economy. The existence of preference is a subject that undergoes a lot of changes because it is a continuously changing issue which is not merely economic. Change in preferences occurs because human behavior is governed by cultural factors, moral rules and custom.

The Rationality of Exchange Instruments

The existence of exchange instrument is a tangible manifestation of current economic exchange rationalization. The economic rational considerations are inculcated to the exchange instrument. So the exchange instrument can be accepted as a standardized value. The exchange instruments have developed toward a cheaper, faster, and accurate improvement. Money is an exchange instrument which is discovered by rational modern society.

Economic Rationality in Social Exchange

In the social transaction there are also orientation and price mechanism to pursue the economic benefits. The price value of the social transaction walk through a reciprocal social mechanism and social sanctions whenever there is no balance in exchange. In principle, people will always seek the material or non-material benefits in their social interactions.

Economic provides a description of human nature that always involved in the alternative behavior option. It generates option reflecting cost and reward. The balance or comparison between investment and profit in the social exchange is included in the distributive justice definition.



There are some similar transactions in both economic and social. People interact to each other –economically or socially- expect gaining something.

TRUST AND ECONOMIC INTERACTION

Trust means social belief derived from process of experiencing. It becomes an inseparable part of the social interaction; individual with individual, individual with group, group with group or group with individual. The role of trust in social relationship is abstract. The recommendation tradition is the actualization of a strong sense of trust to people, object, service options, or option to do a certain social action.

The raising question when somebody starts to trust the others is what makes him to trust them. The answer of this question can be generated on several considerations that become the people motives in giving trust to the others, include:
1. Because of the ownership of information. This depends on the degree of information and its relevancy in decision making whether it is credible or not. Thus, the degree of confidence can decreased or zero due to the lack of information. In this context, trust is interpreted as knowledge.
2. Because of the rational consideration in decision making that contains risks. As capital investment in the stock market has very high risk, to invest in this area, it is necessary to do the accurate and mature calculations in facing the chances of gains and losses.

Like the example in the trade, the seller delivers to the buyer installment that aims to gain traction and benefit buyers by giving confidence to buyers. Trust into the determination of profit or loss if misplaced confidence to buyers. And this proves what the parties are given the confidence can really be trusted or not.
Trust in Sociology Perspective

Trust in Sociology Perspective

Actually, trust is not central in the sociology discourse, but several studies in recent sociology literature's note that there are values binding individual in social bonding, such as solidarity and voluntary attitude which underline as trust. 

There are three approaches to understand the meaning of trust.
1. Trust as part of self-identity, as well as a social system which can be explained by observing individual behavior and orientation, basically, the trust is self-identity and then evolved into a social system that unites other persons in a relationship, because the trust is basically psychological.
2. Trust is seen as a useful collective attribute for social fabrication. Trust is seen as a social resource that can be engineered to achieve certain goals of the organization.
3. Trust is understood as a form of social values in a society that nurtured by the actions of the community members themselves.

Based on the three approaches mentioned above, it can be concluded at the beginning, trust is no more than personal, psychological and particular norms.

The simple understanding of the trust is: “willingness to take a risk”. It is an interaction based on the sense of confidence, that others will respond as expected, and will support each other. Or, at least people have no mean to harm. So, there is safety feeling in the interaction. This feeling has a range of areas which is defined as: “the circle of people among whom cooperative norms are maintained and kept”.

Trust in Economic Perspective

The definition of the trust has not been found. The definition that is given by several disciplines was different from one to another. Thinking about the urgency of the trust in the economy depart from the reason of the absent of the trust in certain circumstances that affect economic transition, where economic transition is shown as an exploitation arena rather than mutual benefit.

K. Arrow (1975) states that essentially, every commercial transaction has a trust element. And this idea comes from Adam Smith that the people in the same trade can freely meet and the conversation among them usually ends up in a conspiracy to the public to create a high price.

The economic exchange provides an opportunity. For profit, the opportunistic actors will do anything, including providing wrong information to the other. To identify from whom the opportunity is obtained and from whom this opportunity cannot be obtained will need some cost. Therefore, the existence of the trust becomes the element of economic efficiency.

Trust: Social Capital and Economic Interaction

In economic interaction, agents or individuals often engage in an impersonal relationship that is only held together by economic interest, therefore, economic cooperation is not always include ordinary people, although in some cases there is the fact that economic relations are also inherent in inter-personal relation.

The trust between traders and suppliers is formed through the repeated re-interpretation of economic relation. Positive assessment of the both side had a positive impact on economic prospect for further cooperation.

Kinship is very effective means to build mutual trust. Other means is primordial ties, such as professional associations. Thus, the trust is able to be treated as capital that contains practical value in the economic action which is derived from sociology cultural mechanisms, such as religion, tradition and common environment.

Trust, Contract and Transaction Cost

The social capital in the industrial economy is such necessity to work together. As company has to build trust relationship among individual member because they operate according to some ethical norms, thus it will be able to reduce both social and economic cost

Contract as a legal mechanism that regulates the cooperative relations is crucial in overcoming economic problems associated with the trust. Economists argue that this existence contract is made on basis of rational calculation and it has replaced the trust in economic cooperation relation, which affects the formation of cultural independent association.

Contract in legal and economic aspects, can glue the people who do not know each other is a partnership without any prior claim to believe. Trust is not able to replace the function and position of the contract as a legal institution. Contract will be more efficient with the trust, so it can minimize the transaction costs, claims and complaints through government regulations in case of contract cancellation which caused by other factors, such as skulduggery.
The example of trust in our daily life

The example of trust in our daily life

Imagine if you went to the store to buy a carton of milk, but milk Gated found the fridge was locked. If you managed to persuade the owner of the store to pick up milk, you may end up going to think about whether you are going to hand over the money first, or the owner of the store that will deliver the milk first. Because of the lack of confidence between them; trading activity was disrupted.

RETURN ON EQUITY - ROE

Definition of 'Return On Equity - ROE'

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
ROE is expressed as a percentage and calculated as:

Return on Equity = Net Income/Shareholder's Equity

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares.
Also known as "return on net worth" (RONW).

Regardz explains 'Return On Equity - ROE'

The ROE is useful for comparing the profitability of a company to that of other firms in the same industry.
There are several variations on the formula that investors may use:
1. Investors wishing to see the return on common equity may modify the formula above by subtracting preferred dividends from net income and subtracting preferred equity from shareholders' equity, giving the following: return on common equity (ROCE) = net income - preferred dividends / common equity.
2. Return on equity may also be calculated by dividing net income byaverage shareholders' equity. Average shareholders' equity is calculated by adding the shareholders' equity at the beginning of a period to the shareholders' equity at period's end and dividing the result by two.
3. Investors may also calculate the change in ROE for a period by first using the shareholders' equity figure from the beginning of a period as a denominator to determine the beginning ROE. Then, the end-of-period shareholders' equity can be used as the denominator to determine the ending ROE. Calculating both beginning and ending ROEs allows an investor to determine the change in profitability over the period.

Things to Remember

• If new shares are issued then use the weighted average of the number of shares throughout the year.
• For high growth companies you should expect a higher ROE.
• Averaging ROE over the past 5 to 10 years can give you a better idea of the historical growth.