Types of Paragraphs

Types of Paragraphs

1 . Comparative or contrast essay

Individuals wishing to invest their funds in business can opt for several ways to do so , with the most popular ones being bonds and stock Bond and stock holders both have an interest in the company . However their position differs on many issues that can impact decision-making

Thus , bondholders have priority over stock holders in case the company goes bankrupt . This means that they can recoup their investments in the business before shareholders that can lose all their funds . This situation can push

bond holders to demand bankruptcy at the moment when the failing organization has just enough funds to cover its debt obligations , in a situation when stock holders can gamble on borrowing more in to try some last-ditch means to rescue their business Bondholders , on the contrary , are worried not about the success of the business , but about its stability . This is understandable , given the fact that their rate of return has little to do with the profit level of the company if they choose to hold their bonds to maturity . The coupon rate that determines the amount of payments to bondholders is fixed from the moment of issue . This means that the company must keep on paying debt , rain or shine , but it will not reward its creditors with superior profits in a good year

In contrast , shareholders will receive greater dividends when the company is doing well . When things go bad , they , too , stand to lose more since they have a residual claim to assets only after other claims have been satisfied . Instead , they have voting rights that allow them to make decisions for the company . Shareholders , unlike creditors , are the real owners of the business and can reap hefty profits in compensation for the risk they incur in putting their money in volatile stock

Thus , debt enables the investor to reduce risk , at the same time limiting potential for gains . Stock , in contrast , delivers a promise that comes at the expense of greater risk

2 . Definition Essay

Forensic accounting is one of the current buzzwords in the accounting world that would have raised eyebrows only a few decades ago . Today after numerous corporate scandals including high-pro cases of Enron and WorldCom , the link between criminal action and accounting is well-established in the minds of the public . Hence comes the need for a sub-field that will explore how accounting can be used to detect fraud

Forensic accountants use their expertise in accounting and auditing to perform an in-depth analysis of the company 's financial statements . The results obtained by forensic accountants are suitable for use in court trials . These professionals are educated to extend their analysis beyond dry figures on statement and to embrace the reality of a particular business . Their work is highly useful in determining instances of fraud surfacing in the company 's financials . Forensic accounting is in fact a combination of pure accounting with detective work , a feature that adds excitement to the job...