Guidance to Simmons Ltd Essay Example | Topics and Well Written Essays - 750 words

Guidance to Simmons Ltd - Essay Example The paper will explore possible merits and disadvantages of the two sources together with their associated legal implications towards a profound judgment. Capital markets and loans offered by commercial banks posse’s different features and characteristics that derive varied legal implications. Financing through capital markets for instance grants control and supervisory authority to the financiers over management of the financed institution. Subsequently, it leads to legal obligations by a company and its management towards interests and opinions of the financiers over the company. Commercial banks as a source of finance also impute a variety of legal liabilities on the borrowing entities such as provisions for loan repayment together with interest. (Sagar Rachna, 2005, 132). Failure to fulfill repayment terms would amount to breach of contract and further resources in litigations (Miller Roger, Iollowell William, 2010, 106-108). Though other aspects of capital market such as fixed securities exhibits similar legal conditions as loans from commercial banks, issuance of shares have distinct property in which the company is not under legal duty to repay. (Longenecker Justin & Loeza Ma, 2010, 311). Bank loans on the other hand have the disadvantage of varying interest rates within the repayment period. As a term to a contract, the company would be subjected to and legally bound by any act by the bank to increase the interest rate. This would in turn make the financing process more expensive (Padmalatha Suresh, 2011, 158). International bond issue and international syndicate bank term loan Just like the capital markets and commercial banks poses varying legal implications, issuance of international bonds and acquisition of loan from a syndicated banks impose a number of legal advantages and disadvantages. According to Livingston Miles, the two varieties of international bonds, â€Å"foreign bonds and Eurobonds† are subject to different regulations (Li vingston Miles, 1999, p. 249). While Eurobonds are issued in single currencies and are not subjected to legal restrictions, foreign bonds are issued in more than one currency across national markets in which they are sold. A Eurobond issued by a company in the United States in US dollars would be internationally sold in that currency while a foreign bond can be sold in any currency depending on the national market. Eurobonds are therefore characterized by simple legal formalities as they are not subjected to domestic laws. At the same time, Eurobonds are easily transferable and are not subjected to taxation. Foreign bonds on the other hand would require knowledge of the issuing company’s domestic national laws, a process that might me costly in legal fees. While Eurobonds are not strictly subjected to taxation due to its free transferability, a universal advantage of international bond issuance is that it provides a wider scope of finance source for institutions. Simmons Comp any therefore has a variety of options in the international bond market (Livingston Miles, 1999, p. 249), (Madura Jeff, 2009, p. 79). Syndicated bank loans are on the other hand viewed as an integrated approach that links features of traditional banking system to those of bond financing system. Consequently, it has been identified as a â€Å"more competitive†, â€Å"more market oriented and cost effective† source (Armstrong Jim, 2003, p. 23). Though the source is appropriate for large amount of finances, it requires significant disclosure of information by the borrower. The terms of

Compare between wired and wireless LAN. List the advantages and Essay

Compare between wired and wireless LAN. List the advantages and disadvantages of each - Essay Example Wired LAN uses coaxial cables or specific wires and network adapters to link devices. Wireless LAN (WLAN) transmits data by air using radio waves, and/or infrared waves and/or microwaves without any physical link to the devices. When wired LAN and wireless LAN are compared, there are generally two main differences: security and medium. However, they also share some major similarilities; for instance, they are mostly Ethernet based networks, both connect through an internet gateway, and using similar types of execution requirements to cope with administration, functionability, and reliability (Ron and Helen, 2008, pg 179) The choice either to install wired and wireless LAN is mainly varied by individual preferences, but in conditions were installing of cables is not applicable, the network nodes are mostly moved, or the physical setting of the network need to be more flexible, thus making a wireless LAN a better choice. The medium used for wireless networking, radio frequency (RF) communications, has some setbacks making a wireless LAN not suitable in all situations. A wireless LAN has advantages that make it more suitable than a wired LAN in some conditions. First, in a WLAN, it is easier to add more computers on the network or move workstations since it operates on radio waves and/or microwaves to support interaction channels connecting the computers (Azam and Razwan, 2009). Secondly, it is the preferred mode of connecting movable or temporal buildings due to its flexibility to connect within the limited range. Thirdly, it is easier to provide connectivity in areas where it is difficult to lay cables due to the medium used. Also, its installation is fast and easy, as there are no requirements to lay the cable through walls and ceilings. Moreover, the network access is accessible from within range of an access point. Generally, the initial cost for WLAN hardware can be similar to the cost of wired LAN hardware, but the installation expenses are greatly