Category: Bill Gates

William Henry Gates, commonly known as “Bill Gates,” made major contributions to the world of computer technology. As the president and the CEO of Microsoft Corporation, the market leader in supplying software for personal computers, he became the youngest billionaire in the computer industry. His life and achievements have left a legacy in the field of computer systems (McCrossan, 2000, p.99; Wallace & Erickson, 1992).

On 28 October 1955, Bill Gates was born in Seattle to a financially stable family. His father, William H. Gates II, is a famous attorney in Seattle while his late mother, Mary Gates was the director of First Interstate Bank. He learned at the private Lakeside School that placed him in an academically challenging environment. At Lakeside, he met his friend and associate, Paul Allen, and together they ventured into the field of computer programming. At the tender age of 15, Gates managed to crash the DEC and the CDC operating systems that were dreaded as the most complicated computer systems then. This achievement brought him some problems and made the way for his first business deal. Gates and Allen founded the Traf-O-Data company where they came up with a machine that was able to monitor progress of traffic in Seattle. This business adventure did not last long due to low returns.

Gates and Allen then signed a contract with TRW, a firm that made software products. They gained valuable experience in software development while working for this corporation. Bill Gates joined Harvard University in 1973 as a freshman, where he stayed a few metres from the present Microsoft president, Steve Ballmer. While studying at Harvard, Gates and Allen came up with the BASIC programming language for the initial microcomputer – the Mango Information Technology Systems (MITS) Altair 8800. In 1975, Gates and his boyhood friend founded Microsoft Corporation. Two years later, he quit Harvard to devote his energies to their company. Propelled by a conviction that the personal computer would become a necessity in every home and office, they started making software for personal computers.

In 1980, Microsoft signed a contract with International Business Machines Corporation (IBM) to have the rights to O-DOS operating system. They developed O-DOS to use IBM’s new PCs. MS-DOS was developed a year later (Lesinski, 2007, p.42). In 1983, Gates ventured into the field of application software by launching WORD 1. Microsoft also introduced Graphical User Interface (GUI) referred to as Windows and the computer mouse, which transformed how a user interfaces with the personal computer. In May 1990, Microsoft launched Windows 3.0 and became the market leader in providing PCs software.

President George Bush recognized Gates role in making Microsoft the largest computer-industry corporation and crowned him with the reputable National Medal of Technology. Gates capitalized on the advancing use of the internet by launching Windows in 1998 that had Microsoft browser incorporated into the software. Under Gate’s management, Microsoft maintained its goal of advancing and improving computer software industry. He strove to ease, reduce costs and make it more pleasant for individuals to use computers. Although Gates resigned in 2000 as the Microsoft CEO, his role in technological innovation, ardent strategy in business, and aggressive competition skills in building the success of Microsoft, is applauded.

References

Cerf, V. et al., 1974. Specification of internet transmission control program. Web.

Network Working Group. Web.

Howe, W., 2009. A Brief History of the Internet. Web.

Lesinski, J., 2007. Bill Gates. Minneapolis: Lerner Publications Company.

McCrossan, J., 2000. Books and reading in the Lives of notable Americans: a biographical sourcebook. Westport: Greenwood Press.

Ruthfield, S., 1995. The Internet’s History and Development. Web.

Wallace, J. & Erickson, J., 1992. Hard drive: Bill Gates and the making of the Microsoft empire New York: Wiley.

Wiggins, W., 1994.The Internet for Everyone: A Guide for Users and Providers. New York: McGraw-Hill.

Introduction

Without a doubt, the single most influential figure within the field of microcomputer technology is Bill Gates. He was one of the pioneers of microcomputer technology and since his departure from IBM in the early 1980s, he has gone on to dominate the microcomputer software industry. Today, outside of the Apple brand of microcomputers Microsoft’s operating system can be found on each and every new computer sold. In order to examine the contributions made by Mr. Gates, it is prudent that we examine his life as a whole. This examination will begin with his childhood and culminate with his present life.

The Child Prodigy

Upon examination of articles written about Gates and quotations from Gates recounting his early childhood, several events stand out in significance as key to depicting the future potential of Gates to transform the world with his view of technology. These childhood stories prominently feature Gates’ tenacity and relentlessness, crafting a portrait of a child destined for greatness. The repetition of these stories in the mass media helps form our first portrait of Gates as the child prodigy.

For example, Gates’ mother, Mary Gates, as a member of the Lakeside School Mothers Club, used rummage sale proceeds to install a computer terminal at the school. Gates became immediately engrossed with it. By eighth grade, Gates was actually earning money doing computer programming. In tenth grade, he wrote a class-scheduling program for the school and began teaching computer classes. The Lakeside Programmers Group offers a first glimpse into Gates’ managerial skills, programming talent, and drive to succeed.

The Complex Genius

This multi-faceted portrait of Gates is richly textured, supported by several characterizations of Gates that when combined form the portrait of the complex genius. The constellation of characterizations of this portrait includes borderline autism, a demanding/explosive nature, and an uncanny tendency for “being right.” The year 1983 includes a significant moment in the public shaping of Gates’ reputation as a complex genius.

In 1983, at 28 years of age, Gates was named by People magazine as number 6 of the 25 most intriguing people of the year, spawning one of the most frequently printed and repeated summaries of his reputation: “Gates is to software what Edison was to the light bulb—part innovator, part entrepreneur, and full-time genius.” Gates was the first representative of the computer industry ever chosen for inclusion on People‘s list.

Personal qualities of Gates highlighted in the article include his youth—”there is a hint of Andy Hardy in his boyish grin and unruly cowlick”—and his genius—”Gates got there by writing truly elegant, bug-free computer programs… some people never do… slick tight code must be intuitive, a bold leap of microchips.” When asked by Seattle Times reporter Kathleen Brooks about his reaction to being included in People’s listing, Gates responded: “I was happy that the article told what the company was doing instead of just focusing on me.”

While that may be true of the article’s text, the editors of People portrayed Gates in a visually compelling light that reinforced the portrait of the complex genius, focusing on the incongruence of the highly successful, yet overly casual and youthful corporate leader. Gates is posed on a sofa resembling a giant computer created for the photo shoot, and was instructed to wear inexpensive white sneakers displayed prominently in the picture, as opposed to the loafers he had come to the studio wearing. Both the sneakers and the couch were paid for by People magazine.

Gates as a Visionary

In his own books and speeches, and in excerpts from media interviews, Gates has sold not only his products but also his vision of technology’s place in society. This self-portrayal as a Utopian visionary depicts leadership strategies commonly associated with social movement leaders. Hartog and Verburg contend that when communicating a vision, charismatic leaders engage in framing, “placing the vision in a certain context, interpreting reality for listeners and giving meaning to events.” Journalists were quick to afford Gates a seat at the table of major technology players; only in later years would Gates appear to be dining alone.

In a 1980 article in On Computing magazine, author Chris Morgan writes that “We recently took some time to look into a crystal ball with two of the leading experts in personal computing software, Bill Gates and Dan Flystra.” Gates is characterized simply as “the young President of Microsoft, Inc.” Gates speaks authoritatively about the future direction of the computer industry. In response to the question, “do you have a general feel for where the market is going in the 1980s?” Gates responds that in the future, software will define the personal computer. He predicted that the cost of computer hardware would plummet, and that software would become the determining factor in the computer industry’s success.

The 1981 Seattle Business Journal article attributes Gates’ success to his childhood fascination with computers and his uncanny timing. It summarizes the highlights of Gates’ childhood, beginning with the story of the Lakeside school and its early exposure to computers for the students, and reaching its apex in Gates’ and Allen’s ability to accurately predict the future: “A tiny silicon chip with microscopic circuits was responsible for a technological revolution—a revolution Gates and Allen could anticipate.” Once again, we see how the reputation portraits are not distinct, but rather work together to reinforce Gates’ various public images. Yet in combination, the childhood prodigy, complex genius, and secular prophet reputation-portraits function to portray Gates as a uniquely qualified technology industry leader.

Gates as a Flawed Hero

No one can doubt the propensity of Mr. Gates to appear as an imperfect individual. In fact his moral character has been called to question when he obtained the work product of IBM, the company he worked for at the time when IBM dominated the personal computer operating system market. The first instance of Gates as a flawed hero is found in the delay of the highly-hyped product, Microsoft Windows. At New York’s Plaza Hotel on November 10, 1983 Gates announced the newest addition to the Microsoft family of software products: Microsoft Windows. The delivery date was to be May 1984.

With its graphical interface and capability to see multiple “windows” open simultaneously, this new operating system was hyped as being a milestone for ushering computers into the non-specialist arena. However, the product did not actually make it to market until July 1985. The press characterized this delay as the first major embarrassment for Microsoft. In a 1984 InfoWorld editorial, computer industry professional Stewart Alsop wrote that Microsoft “seems to have fallen into a bad habit with Windows. Announce, show, promise, and delay. Then delay some more.”

A second embarrassment for Gates and Microsoft comes from their lackluster performance in the computer games market. MSX, a Microsoft-designed operating system made especially for game-oriented computer enthusiasts was poorly received at the Winter Consumer Electronics Show in January 1985. A Seattle Times article characterized MSX as “dead technology,” and quoted an Info World column labeling MSX “the Pong of the 1980s.” Though this article did not mention Gates specifically, still it had a negative impact on his image. After all, Gates and Microsoft are so intimately connected that the tarnishing of one reputation necessarily impacts the other.

Further, when a company has experienced the phenomenal business success Microsoft enjoyed in its first few years, the media is always ready to find fault. For example, an August 1985 article in The Seattle Times detailed Microsoft’s fiscal sales as growing 44 percent to $140 million, but characterized this growth as “a sign that the company isn’t growing quite as fast as it did in the past eight years.” At the same time as the company began experiencing its first taste of failure, they also began reaching out directly to consumers—perhaps in response to their brush with negative publicity.

Bibliography

Brooks, Kathleen. “Microsoft’s Bill Gates Is People’s Choice.” The Seattle Times, 1984.

Buck, Richard. “Hard Going for Microsoft. Trade Show Is Cool toward Machines with Microsoft Systems,” The Seattle Times, 1985.

“Dropping out of Harvard Pays Off for a Computer Whiz Kid Who’s Making Hard Cash from Software.” People Weekly, 1984, 36-37.

Hartog, Deanne. “Charisma and Rhetoric: Communicative Techniques of International Business Leaders.” Leadership Quarterly 8 (1997): 355-391.

Manes, Stephen, and Paul Andrews. Gates: How Microsoft’s Mogul Reinvented an Industry and Made Himself the Richest Man in America. New York: Simon and Schuster, 1994.

Morgan, Chris. “Software in the 80s: Two Interviews.” On Computing, Fall 1980, 36-39.

In 1973, several alumni of Jesuit schools gathered in Valencia, Spain to celebrate the achievements of St. Ignatius. On that day, the head of Jesuits, Fr. Pedro de Arrupe Y Gondra gave one of his most celebrated speeches titled, “Men and Women for others.” The title of this moving speech that changed the approach to education within the Jesuit circles later became the motto of Jesuit education. According to Fr. Pedro Arrupe, the then education trend was characterized by individualism. Scholars did not reflect the values of Jesus Christ who sacrificed his greatness to save all mankind. According to him, the best practice would be educating men who would live not for themselves but for God. And living for God meant expressing profound love for the least of neighbors (Burke 10; Crystal, par. 6). Considering Fr. Arrupe’s conception of the meaning of education, the charitable life Bill Gates will be identified in this paper to show how one’s education has been used to support the least of neighbors.

Without a doubt, Bill Gates can be considered one of the world’s most genius brains. His contribution to the world of technology has had a great impact on the day-to-day lives of almost every living human. His Microsoft Corporation has become the world’s greatest software developer. As a result, Bill Gates has been ranked within the top ten richest people in the world for almost a decade. However, the great sum of money raked in by the Microsoft Empire has not been used solely for personal benefits. With the Bill & Melinda Gates Foundation, the least of neighbors from all corners of the earth have benefited. Living standards have been improved and lives saved (Bill & Melinda Gates Foundation (b), par. 3).

Bill Gates has used his genius education to support the less fortunate by offering grants and scholarships for minorities in the United States. Through the Bill & Melinda Gates Foundation, more than 27,000 students from high school would be assisted to complete their education in colleges and universities. According to Bill Gates, the more than 4.5 million students who were estimated would miss college between 2006 and 2016 were not a result of lack of talent and ability but increased tuition fees. The targeted recipients of the grants and scholarships were from low-income minority families. Furthermore, the Foundation encouraged public service to devote their efforts to improving the lives of others.

Outside the United States, the Bill & Melinda Gates Foundation has extended its charitable hands to Africa. In Kenya, several families were facing threats of death through starving. According to the Foundation, the starving was not a result of lack of land, but poor agricultural methods that led to underproduction. In Western Kenya, research showed that if farmers engaged in the use of fertilizer, their returns would be more than 70%. With such production, issues of hunger and starvation would be a thing of the past. Unfortunately, only 29% of the farming families used fertilizers leading to massive under-production. The Bill and Melinda Gates Foundation has engaged in promoting behavior that would enable farmers to increase their use of fertilizers. This involves the use of vouchers and teaching them on appropriate saving mechanisms (Bill & Melinda Gates Foundation (a), par. 5).

Although this is just a bit of what Gates has engaged his education into, its impact on the lives of the least of neighbors can be seen. Kenyans can now increase their agricultural production while disadvantaged students in the United States are able to pursue further education despite their financial status. Accordingly, there is no further meaning to Fr. Arrupe’s conception of Jesuit education than what Bill has done.

References

Bill & Melinda Gates Foundation. Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya. 2009. Web.

Bill & Melinda Gates Foundation. The Bill & Melinda Gates Foundation Scholarships. 2007. Web.

Burke, Kevin. The Legacy of Fr. Pedro Arrupe, S.J in Celebration of 100^th Century of his Birth. Lane Center Lecture Series. University of San Francisco, 2007.

Crystal. Interpreting Pedro Arrupe. 2009.

Structural Violence and Societal Factors

Modern researchers, philosophers, and writers frequently discuss the theme of structural violence. In Farmer’s reading, this concept is explained as a line of human decisions that lead to suffering and death. Painful illnesses and social forces like hunger, torture, or rape as forms of structural violence constitute suffering (Farmer, 2003). Taking into consideration the connection between human actions that cause pleasure or suffering and the inability to get rid of fears and prejudices, people continue contributing to the promotion of violence in society. They establish social norms, rules, and standards that they have to follow or try to break under some conditions. In other words, the idea of the chosen reading is that structural violence is an outcome of human actions and decisions, and despite the intention to do something good, something bad could happen.

In the TED talk shared by Bill Gates, the same argument is developed in a more descriptive way. Gates (2015) speaks about human fears of the epidemic outbreak and underlines that modern society is not ready for it due to a number of factors. Although people could get themselves prepared for new health challenges (to strengthen the health system, run germ games, pair medical and military abilities, and create a medical reserve corps), they neglect their chances (Gates, 2015). As a result, they expose themselves to new threats, problems, and concerns. Suffering turns out to be an outcome of human inaction, showing how structural violence is shaped. According to Gates (2015), time is never on the people’s side, and it is necessary to react fast and predict the worst development of the events. Being equipped with enough human and technological resources, society has to understand how to use them and gain benefits. Such factors as education, wealth, and past experiences should help society to eradicate violence and suffering and promote global health equity in the face of potential epidemic outbreaks.

Inequality in Structural Violence

Despite the desire to become equal, people cannot forget about the differences that exist in society. In the chosen reading, Farmer (2003) focuses on racial or ethical, and gender biases that contribute to human suffering and structural violence. For centuries, “women are confronted with sexism, an ideology that situates them as inferior to men” (Farmer, 2003, p. 43). Racial differences exist “to deprive many groups of basic rights” (Farmer, 2003, p. 44). To find new ways to improve their lives, poor people use all the existing opportunities, neglecting the fact that some of them cause suffering and others lead to violence at various levels. Poverty is a problem in many countries, either developed or developing. Instead of solving it at a global level and supporting each other, it is easy for populations to gather in groups and find answers locally.

In the TED talk, this argument is also properly represented in the example of the African countries’ inability to deal with Ebola. In the majority of cases, serious diseases and viruses are originated from developing countries with weak healthcare systems and research abilities. Gates (2015) explains that today’s global catastrophe is not a war or a missile that could take a human life within several seconds but a virus, the nature of which is not thoroughly investigated. Compared to rich countries where financial resources are enough to promote advanced research and development, developing countries (West Africa) cannot treat their populations and vaccinate them before a threat occurs. Rich people do not want to help the poor because they do not believe the problems of the latter could challenge them. However, viruses do not choose between wealth, dignity, or achievements. As soon as they reach a person or an animal, they start destroying cells and worsening health conditions. In addition to the individual characteristics of patients, treatments depend on access to resources and knowledge. Not to allow dramatic disease prevalence, the exchange of experiences globally has to be promoted.

References

Farmer, P. (2003). Pathologies of Power: Health, human rights, and the new war on the poor. University of California Press.

Gates, B. (2015). The next outbreak? We’re not ready. TED. Web.

Owing to the need for finding an appropriate philanthropic organization to invest in, I hereby provide a recommendation of the most appropriate organization. I will discuss two possible organizations to fund, and between the two, recommend the best. These two organizations are Bill and Melinda Gates Foundation (Gates Foundation) and Make-A-Wish Foundation. Bill and Melinda Gates Foundation (Gates Foundation) is a private philanthropic foundation that was founded by the chairperson of the Microsoft Corporation Bill Gates together with his wife Melinda. The roles of the foundation include provision of quality healthcare and reduction of poverty around the world. Moreover, the foundation strives to improve education and access to information technology in America.

The foundation is concerned about the welfare of people in developing countries. For that reason, the Gates Foundations aim is to improve the livelihood of people in developing countries by helping them to fight diseases and poverty. On the other hand, Make-A-Wish Foundation is a philanthropic organization that takes care of children with life-threatening medical conditions. The organization’s aim is to make the wishes of such children come true. In order for a child to qualify for help from this organization, it is important for a physician to prove that the child has a life-threatening medical condition. The family of Microsoft Corporation’s founder Bill Gates founded the Gates Foundation in the year 1997. Initially, the corporation was referred to as the William H. Gates Foundation, and had a financial portfolio of US$94 million.

However, as the foundation expanded and merged with smaller organizations, its name was changed to Bill and Melinda Gates Foundation. The organization was renamed in the year 2000 after incorporation of the Gates Learning Foundation that was established to improve the quality of education. In 2008, Bill Gates resigned from active leadership at Microsoft Corporation in order to dedicate his time to managing the Gates Foundation.

In 2010, The Commission of Education of Health Professionals was created as a constituent of the Gates Foundation to educate health professionals and thus improve delivery of quality health services. The Make-A-wish Foundation was founded in the year 1993 after the death of James Greicius who had Leukemia. He had a dream of becoming a police officer but his condition presented numerous obstacles. Tommy Austin, a customs police officer helped Greicius make his dream come true. He made arrangements that gave Greicius an opportunity to live his dream life for a day. The experience was aimed at lifting the mod and spirits of Greicius. Even though he did not live to pursue his dream career, his wish came true. After this incident, the Make-A Wish Foundation was founded to fulfill the wishes of children living with threatening medical conditions.

The table below compares the two organizations with regard to their annual income, investments, and people they serve.

Our company should give the money to Gates Foundation because of the scope of its activities than run across many sectors in the world. On the other hand, it has received international accolades for excellent work and financial accountability. The Foundation’s mission statement is to improve the lives of people by improving their health and empowering them to eradicate poverty. This is important especially in developing countries that experience widespread poverty and high mortality rate due to prevalence of diseases like AIDS and Malaria. In 2006, the Gates Foundation was split into two in order to improve its efficiency.

The Bill & Melinda Gates Foundation trust manages the assets of the foundation while the Bill and Melinda Gates Foundation assigns donations to various charitable organizations. The prospects of the foundation are bright because several billionaires have promised to give large portions of their wealth to the foundation. Berkshire Hathaway chairperson and founder Warren Buffet promised to give a large portion of his wealth to the Gates Foundation. The Gates Foundation has donated a lot of money to programs that fight diseases in developing countries. It has given more than $86 million for the eradication of poliomyelitis in Africa. This amount caters for 17% of the world’s budget for eradicating polio. By 2012, the foundation had given more than $1.3 billion for the fight against Tuberculosis, AIDS, and Malaria across the world.

The organization’s goal of fighting diseases is evident from the contributions made for research. It has donated more than US$287 million to organizations that conduct research on HIV and AIDS. The Foundation has done a lot with regard o improving global health. I our organization should give the money to the Gates Foundation because of the scope of its charitable activities. The Make-A-Wish Foundation is also an international charity organization. However, it has a narrow scope because its donations and activities target young children with life-threatening medical foundations. In contrast, the Gates Foundation targets all populations that are at risk of diseases that cause high mortality in developing countries. The organization targets two main aspects of growth and development in any country.

These vital aspects include health and education. For instance, the organization donates a lot of money to developing countries because diseases like Malaria and AIDS cause high mortality rates. The structure of the Foundation comprises three programs that include Global Health Program, Global Development Program, and the United States Program. Under the Global Development Program, the Gates Foundation has given grants to many developing countries. In order to improve its efficiency, the organization funds several charitable organizations that promote development in developing countries.

Examples of organizations funded by the Gates Foundation include Financial Access Initiative, Grameen Foundation, Alliance for Financial Inclusion (AFI), and Pro Mujer. The Gates Foundation also donates money to special initiatives. For example, the foundation funds exploration programs that involve improvement of water, sanitation, and hygiene projects around the world. For instance, during the 2004 Indian Ocean earthquake, the Foundation donated more than US$3 million to several organizations that include World Vision, Mercy Cops, Save the Children, CARE International, and International Rescue Committee.

We have arranged a meeting scheduled for 3 pm on March 20^th in order to explore the issue at length. The main agenda of the meeting will be to discuss why our organization should invest in the Bill and Melinda Gates Foundation. A thorough discussion of the merits of the foundation will demonstrate the reason for the recommendation. Our department looks forward to discussing the aforementioned decision during the meeting.

Introduction

This paper will discuss accounting treatment of common costs presented in the financial statements of Bill and Melinda Gates Foundation. Bill and Melinda Gates Foundation (B&MGF) based in Seattle, Washington is the fourth largest privately operated foundation established by William H. Gates and Melinda French Gates in 2000, after merger of two independent foundations led by Mr. Gates, with an initial capital endowment of US$126 million which grew to US$2bn in the first two years. It was later joined by Warren Buffet in 2006 who offered 10million Berkshire Hathaway Class B shares worth approximately US$35 billion in 2006 spread over multiple years through annual contributions of US$1.5bn. The foundation has been recognized as association of the second most generous philanthropists in America (Answers.com, 2006). The foundation operates three programs namely Global Health Program, Global Development Program and United States Program. The objectives through different programs are to help the poorest with the enduring challenges of food, health and education. Various initiatives have been undertaken in different countries to support the local population and uplift standards of life. In particular these include agricultural development, financial services for the poor, health care & insurance programs, education & global libraries, housing and HIV research (B&MGF, 2007). The foundation has proved to be a successful one with assets reaching up to US$38bn and still continuing to grow. With new CEO coming in as Mr. Jeff Raikes joins the foundation, it aims to build upon the works and same charisma of ex-CEO Ms. Patty Stonesifer.

Accounting Period in Review

The accounting period in review is the financial year of 2007 ending 31 December 2007 which has been reported in the foundation’s annual report 2007.

Allocation of Common Costs

The B&MGF consists of two separate legal and audited entities – Bill & Melinda Gates Foundation (‘Foundation’) and Bill & Melinda Gates Trust (‘Trust’). The earlier distribute money to grantees and the later manages the endowment assets. Because of the nature of the business and transaction between the two entities a consolidated financial statement is prepared which uses a basis for allocating common costs to each entity. We will consider such items in reference to B&MGF and form a basis for their allocation:

1. Grants Expenses: These include expenses to fund foundations operations and other direct charitable expenses, operating expenses and capital and program-related investments. All such expenses are summed off to indicate the aggregate expenses of the foundation’s programs.
2. Direct Charitable Expenses: These include fees paid for consultation required for the foundation’s programs. All such expenses are summed off to indicate the aggregate expenses of the foundation’s programs.

The foundation has three separate programs as mentioned above. The annual report does not provide how the above cost is incurred and recorded for each of the three programs. Furthermore, direct charitable expenses are not prorated to each program. The financial statement is prepared to provide a simple and clear understanding of its users and therefore cumulative common costs are presented. However, the financial statement of each entity respectively should indicate the information regarding costs allocated to each individual program.

We can recast the Combined Statements of Activities for the year ending Dec 31, 2007 as follows. Allocation of grants other than cash basis is allocated on % basis.

Usefulness of Restated Statement

The restated financial statement allows its user to understand the projects carried by each program in terms of their achievement and costs allocated to each project. This allows a better understanding of how endowment funds are allocated and utilized. The performance of each project / division under each program could become more assessable and very much skepticism which pertains to the accountability of such charities can be overcome. Furthermore users of financial statements become more aware when deciding their contribution based on this vital information.

References

Answers.com. (2006). Hoover’s Profile: Bill and Melinda Gates Foundation. 2008. Web.

B&MGF. (2007). Bill and Melinda Gates Foundation – Annual Report. Web.

Why are people so obsessed with money and material wealth? Unfortunately, being rich means being powerful and gaining control over others. However, is it cool to be one of the richest people in the world, like Bill Gates, for example? Being superior to people, possessing unlimited power, and controlling the entire world is quite a responsibility. However, it is also a great challenge for a person whose power is measured by his money, but not by his/her personality. Let us imagine what Bill Gates thinks about his power and wealth. Is he frustrated or money is not a priority for him? Putting “his shoes” can allow me to feel like the richest and the most influential person in the world for a moment.

So, it is six-thirty already and it is time for morning exercises. I decide to visit my gym and have thirty minutes with an exercise bicycle. My next stop is my bathing room and large and light kitchen. The coffee is already prepared and I am watching TV to keep abreast of the latest news about market demand and product selling rates. At the same time, my e-mail is also checked and I automatically go to my cloakroom to choose some of my business suits.

I should always look smart, but who cares? Sometimes, I think that if I go to work wearing my pajamas, nobody will express a sign of reproach. The only thing that matters is in-time salary, constant production development, and innovation. I need to go ahead of time to be able to compete with other developers, like Apple. The saying “Time is money” is all about me. I love my job and I am fond of the contributions I made to the development of the world-known brand of computers.

However, does everybody care about what I think about other people, except for my family? Do they know about my favorite color, or favorite place, or favorite dish? I doubt it. However, why am I so concerned about it? I am the most powerful person in the world and I can make people think and behave the way I like.

There is no reason why I should feel unhappy and frustrated. I have a wonderful job, an excellent family, and lovely children. I am an accomplished person and my name will remain in the history of humanity. What else should matter in this world? Probably, there are still other ways of personal fulfillment. Indeed, maybe I should try myself in other fields? What about art, or music composing? In school, I have also been considered a geek who loves nothing, but computers and technology.

However, technology is one of the most important tools of scientific revolutions. Living in an era of mass information exchange, my inventions will surely be the most notable discoveries. Probably, I will never stop advancing my knowledge. I will also keep searching and searching for new ways of self-fulfillment. Probably, this is the logo of my life: “Never give up”. Therefore, money and power are just accidental outcomes or, I would say, shortcomings of my passionate hobby.

Despite the success, I still managed to remain myself and that is the point. Many philosophers had long been reflecting on the sense of life. But this is it! Being engaged in the most favorable activity, being fond of what you are doing, and contemplating the results of your job is, probably, the point of leading a successful life. Appreciating what you already have is important and even if you are popular, no one can fully realize what stands behind the mask of wealth and popularity.

The name of the organization under consideration is Bill and Melinda Gates Foundation. The organization is involved in offering philanthropic work to various social and science activities. Before identifying relevant costs I will need to define what are relevant and irrelevant costs. Relevant cost is the expetected future cost that differs among alternative course of action under consideration. This means a relevant cost is future cost that affects a decision making while selecting, it must also differ among the altertenative course of action. If cost does not differ among the courses of action meaning it does not matter to the decision then it is irrelevant cost.

In these case study relevant costs has been identified as direct charitable expenses and program and administration expenses directly attributable to the programs to be undertaken. Depreciation charged is an relevant cost as well allocated general overhead. Allocated general overhead will be incurred whether the decision is made to increase funding to HIV/ AIDS, Malaria, Tuberclosis and Housing these four costs have been analyzed together with the released funds as shown below:

The organization was making a decision as to whether change funding structure of the different philanthropic activities or do away with some. Depreciation and Federal excise & other taxes are costs that have been allocated to the programs but are incurred whether programs exist or not.. Thus they not directly associated with the programs. Therefore, they are irrelevant to this particular decision and thus will not be considered when making this decision. The relevant costs will be direct charitable expenses and program and admin expenses.

After considering relevant cost, the decision is not to adjust the current funding or do away one activity since all of them have a positive contribution that adds to the assets.

The performance of a fund manager responsible for running a program will be measured using these costs as calculated that is excluding irrelevant. This is because a manager should be held responsible for the costs that are under their direct control. These costs are at his control and he can freely to make a decision about increasing or decreasing.

In this case federal taxes and depreciation becomes irrelevant costs since they are allocated. Direct charitable and program expenses are relevant cost. The costs that are relevant must different in the options, those cost that are uniform are irrelevant costs. Lastly, qualitative and quantitative factors should be considered in decision making.

References

Drury C; (2000); Management and cost Accounting; business press Thomson Learning,

Horngren C. T. , Datar S. M and Foster G. (2003); cost Accounting: A Manager emphasis, Prentice Hall.

Keeping America Great

Warren Buffett and Bill Gates are raked by Forbes magazine as the third and second richest men in the world respectively. They have had the best opportunities in life and they are thankful for them. Warren Buffett redefined the railroad industry while Bill Gates is a modern investor in the field of software. The two appeared in an NBC show at the Columbia University Business School in New York. They had a great discussion with students where they responded to their questions. The show was hosted by Becky Quick of CNBC.

Impact of Conversation about Business

The conversation that took place was all about business. Many students asked the two men how they managed to get to their current status. Overall, the conversation is likely to increase the number of investors in the United States. This is because the two business men explained that there were more opportunities in the United States than there are in other countries. Many young people will make investments in fields they are passionate about. Young people will identify emerging opportunities in the economy and utilize them so as to become wealthy. This will lead to more innovations in different fields because individuals will be optimistic about any opportunities. Young people will also endeavor to work hard to achieve their dreams in business. Basically, many young people will think big to identify opportunities and make investments that will lead to great success.

Future Careers in Business

There are several fields that individuals will be able to invest in the future and attain great success. According to Bill Gates, different industries present different paces of innovation. The field of information technology presents future careers to many individuals who decide to invest here. This is because the invention of information technology impacts positively on many other industries. The field of energy also has future careers for many investors. Many individuals will be working towards providing cheaper energy that will be friendly to the environment. Warren felt that the railroad presents many careers for future investors. The field of science also contains great careers for those who have a passion in the subject.. In all these cases, passion is a key factor that leads to success.

Preparation for Career in the Future

In preparation for my career in the future, the key factor will be the identification of the field I am passionate about. It might take me quite sometime but I will try different experiences to identify the one that will work well for me. I will also have to gather more knowledge in different fields through diverse learning and interacting with people in different fields. I will remain focused all through and when I finally identify my destination, I will readily seize the opportunity without wasting time. This way, I will be able to work towards attaining success with no frustrations because I will be enjoying my work.

The Future of American Economy

The American economy is likely to experience numerous growths in the future. This can be attributed to the many opportunities that are currently present in the region. Many institutions are training individuals on entrepreneurship and this is likely to increase the number of investors in the region. Investing in the fields that individuals are passionate about will encourage innovations that will enhance growth. The authorities in America are ready to support research that lead to innovations. At the end of it all, American economic will experience numerous growth.