Family firm going public Essay Example | Topics and Well Written Essays - 2250 words

Family firm going public - Essay Example The family business is flourishing in many developed and developing countries throughout the world. It is a particular breed of business that can be more clearly understood by keeping in mind the idea of two interconnecting but separate systems. The family and the business are two systems in that the goals, needs and tasks of each are not identical. Because of the ambiguous nature of the interconnection, problems can and do arise. Methods for sorting out the roles and rules for the two systems need to be consciously developed and understood (Bogod & Leach, 1999). The advantages of running a family business are worth reiterating. They bear closed resemblances to those voiced by entrepreneurs generally – a feeling of freedom, a provision of income and capital, a sense of creativity. Family businesses can be a satisfying way to provide a living and for family members to feel collectively rewarded for their personal sacrifices. Under the best of circumstances, the family firm can provide a basis for meaningful and enduring family connections. Although there are many advantages, the concept of family business is not free from disadvantages. One such disadvantage arises when the procurement of capital comes into picture. Few, family firms reach this stage, which comes about when the business needs additional capital to continue its operations (Sitorus, 2001). Capital is procured by going public, usually concurrent with the introduction of professional management.... referred to as the primary market and the subsequent trading as the secondary market (Monteith, 1995). It is important to an economy that both markets operate efficiently. Similarly, a liquid a transparent secondary market will encourage investors to participate in the stock market and should again increase the availability of equity capital and lower investors' required returns. (Sitorus, 2001) Until recently limited liability was only available to limited companies, which ruled out sole traders because the company had to have at least two shareholders (Kline, 1994). Many traders go round this by setting up private limited companies, with another member of the family holding nominal accounts of shares to qualify for company status. They remained, in reality, one person business. There is now the possibility of limited liability for shareholders companies. There is no upper limit to the number of shareholders. Many family businesses are organized as limited companies but others prefer the informality of remaining unregistered (Marchisio, 2003). Many family businesses have been started on this basis and some have grown to considerable size within this format. The main limitation is that shares cannot be made available to the public, which restricts the company's power to raise additional capital through new shares (Bogod, 1999).By inviting members of the public to subscribe to the business, it enjoys much wider opportunities to raise funds. Going public also gives existing shareholders greater liquidity as they can now realize the value of their shares by selling them on the open market (Newman, 1985). Since the shareholders in a family

Speciation Essay Example | Topics and Well Written Essays - 250 words

Speciation - Essay Example These two processes  led to  the behavioural speciation between Sciuirus apbios and Sciuirus vulgaris. Allopatric speciation was a consequence of the geographic isolation of the Caribbean Sea. Initially, St. Kitts and Nevis were a single island and there only existed one squirrel species. However, there was the divergence of the initial island, and there emerged two small islands that contained different species of the first squirrel species. The diagram below best describes allopatric speciation: The bottleneck effect occurs when excessive tourism and development creates a genetic drift between animals of the same species. In this case, there was a volcanic eruption in St. Kitts that killed an enormous population of the squirrel population. The explosion led to massive loss of alleles in the genetic pool of St. Kitts rodents. Consequently, Sciuirus apbios evolved differently from Sciuirus vulgaris. The image below best describes the bottleneck effect: †¢ Sciuirus vulgaris has an average gestation period of 29.3 days compared to Sciuirus apbios that have a gestation period of 42.7 days. The difference in the gestation periods of the two species is significant enough to prevent successful reproduction. In conclusion, the emergence of Sciuirus apbios is a result of the divergence of the Sciuirus vulgaris population as a result of allopatric speciation and the bottleneck effect (Wolff & Sherman,

The Historical Cost Convention Essay Example for Free

The Historical Cost Convention Essay The historical cost convention used in historical cost accounting, records transaction at the monetary value at the date of transaction (i.e. their historical cost). An asset or liability being measured using the historical cost basis is recognized initially at transaction cost. This convention is used as a basis to prepare financial statements. In the income statement, revenues and expenses are recorded at the monetary value shown on the invoice. Historical cost accounting (HCA) might be the most suitable convention for stewardship purposes but may not be the most suitable for decision usefulness. This view has been apparent in the UK, with attempts to introduce supplementary accounts based on the current purchasing power (CPP) convention and the current cost convention (CCA). Neither of these alternatives was adopted after their initial trial. The HCA depends on depreciation policy and inventory valuation therefore it is subjective. Such a characterization tends to assume, however, that all historical cost measures are transaction-based and involve little estimation, which is not the case. For example, adjustments made to the historical cost carrying value of trade receivables to make allowance for bad and doubtful debts involve a degree of estimation that is not dissimilar to that involved in estimating current values not derived from an active market. And the results are often of broadly similar reliability. There is a similar level of estimation involved in determining the cost of self-generated assets and by-products, and generally in all circumstances involving allocations of substantial amounts of indirect costs.

Tescos Performance Based On Financial Ratios Commerce Essay

Tescos Performance Based On Financial Ratios Commerce Essay This research proposal studies on the factors which Tesco in their current profitability and meet it short-term financial obligation. Tesco also look strong for the employees motivation and the company competitive exists. Tesco was founded in year 1919 by Jack Cohen and the first Tesco name appeared in year 1929 (Tesco, 2010). Nowadays, the Britian leading retailer is Tesco and also United Kingdom based international supermarket chain (TESCO, 2010 and Tesco House, n.d.). They operating over 4,800 stores globally and employing over 472,094 people (Checksure, n.d.). At the beginning, they specializing in food, now move into areas like clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, internet service and consumer telecoms (Tesco House, n.d.). They have 588 supermarkets and 257 are superstores. Besides that, they operates in 13 countries such as Republic of Ireland, Hungary Czech Republic, Slovakia, Turkey and Poland in Europe, China, Japan, Malaysia, South Korea, Thailand, India, and the U.S. (Tesco, 2010). The key towards Tesco success was related to their financial position which consists of generate a return on its resource, able to meet its short-term financial obligations and the efficiency ratios. Usually, the financial ratios analysis is including profitability, liquidity and investment ratios. Its normally used to analysis company performance which analyzes the success, failure and progress of company business. (Woods, 1999). In addition, it can also calculate for a company to be compared with other companies and own companies own past figures (Jiao and Bhalotra, 2007). Profitability ratios determine that the companys able to generate a return on its resource (missouribusiness.net, n.d.). Besides that, profitability shows proportion is advantageous business, measuring the overall performance was investigated, the profits of the company, can be used to test how your company operation, compares the current performance and the record of the past (Jiao and Bhalotra, 2007). It including gross profit, net profit margin, return on assets, and return on equity. The gross profit margin is indicates how well the company be able to generate a return at the gross profit level (Missouribusiness.net., n.d.). The gross profit margin considers the firms cost of goods sold, but does not include other costs (Netmba.com, n.d.). The formula for calculate the gross profit margin which is gross profit margin equal sales minus cost of goods sold divide by sales and multiply 100 percent. The formula calculates for net profit margin is net profit divide total sales also can call net sales and multiply 100 percent. However, this ratio ability provides a significant investment, indicate its sales business ability covers the smallest fixed cost and remains an acceptable profit (Missouribusiness.net, n.d). Formula calculation for return on assets is net incomes before taxes divide by total assets and multiply by 100 percent. This ratio display the effectively of the firms assets able being used to generate profits (Netmba.com, n.d.). In addition, low return on assets (ROA) indicates inefficient management, adverse when a high ROA which mean efficient in management (Barry, n.d.). Otherwise, this ratio in public company normally report return on assets to their shareholders, cause to tell them how well when using its assets to produce income. The return on equity (ROE) also knows as return on investment (ROI). The calculation compete for ROE which is return on equity equal net profit before taxes divide by shareholder equity multiply by 100 percent. These ratios usually indicate how well the company is utilizing its equity in investment and normally will higher than return on assets. According to proficient, if those companies hope their business growth in future, therefore, their ratio needs at least 10 to 14 percent in ROI (Barry, n.d.). This is a good figure to compare beside competitors or an industry average. For example, if the ratio is lower which mean that they meager management performance. In other words, a high return on investment indicates that management is doing well. Liquidity ratios is show how quick the company able to convert assets to cash, and pay off interest (Carter, 2010). Furthermore, the low levels of liquidity ratio can demonstrate poor management for grown up company (Netmba.com, n.d.). Besides that, its providing with useful limit for business managers to help them regulate their borrowing and spending (Barry, n.d.). The main liquidity ratios are the current ratio and quick ratio. Current ratio is also called the working capital ratio (Missouribusiness.net, n.d.). It is the number of times a companys current assets exceed its current liabilities, which is an indication of the solvency of that business (Auerbach, n.d.). The formula to compute the current ratio which is total Current Assets divide total Current Liabilities. A general rule of thumb for current ratio should be at least 2:1 (Missouribusiness.net, n.d.). A lower current ratio determines that the company may not be ability to pay its invoices on time, while a higher ratio means that company has money in cash or safe investment that could be put to better use in business (Barry, n.d.). The quick ratio is also called the acid test ratio (Missouribusiness.net, n.d.). It indicates the extent to which company could pay current liabilities without relying on the sale of inventory (Missouribusiness.net, n.d.). A general rule of thumb states that the ratio should be 1 to 1 or 1:1 (Missouribusiness.net, n.d.). If it is higher, the company may be keeping too much cash on hand or have a poor collection program for accounts receivable (Barry, n.d.). If it is lower, it may indicate that the company relies too heavily on inventory to meet its obligations. The formula for compete quick ratio is current assets minus inventory and divide current liabilities. 4.0 Significance of study: Basically, this study is seen vital as in it helps Tesco to do their financial performance more effectively. Regarding on that, it more related to the financial ratio analysis whether in term of profitability, liquidity and investment ratios that Tesco would take in for their effective management. Furthermore, this study also could acts as references for other retails that going to develop in the future as well to enhance competitive advantages. 5.0 Literature Review: Part A 5.1 Profitability ratios Profitability ratios are an indication of companys overall efficiency and performances. According to the calculation of annual report, the Tesco gross profit margin from year 2009 (7.76%) to 2010 (8.10%) increases 0.34 percent. During year 2010, Tesco net profit margin increasing 0.14 percent from 3.97 percent to 4.11 percent (Tesco, 2010). It indicates Tesco every year able to grown their revenues (Wearden, 2010). This is because they believe that having a good profitability the companies now can operate well in worldwide markets. Besides that, the profitability also provided information for investor to let the investors to know how well they company is going to evolution (Beginnermoneyinvesting.com, n.d.). Not only Tesco using this ratios and Carrefour S.A also use this ratio method. Because the Carrefour believe that improve in the profitability, it will efficient to the businesses running. Therefore, Tesco and Carrefour believed that using past data as a benchmark to make a concl usion as to why the profitability is increasing and decreasing, so that the company can go well (Mysmp.com, n.d.). For example, during the fiscal year in 2008, the Tesco had a better sales growth rate, so that they company moving up from number four to number three in the ranking in the world. When hold on more of retaining, its profits would cope with future external market challenges (Fresh Easy Buzz, 2010). 5.2 Investment Ratios Return on equity also known as return on investment (ROI). This ratio widely use by company because it ability to indications how efficiently the money invested in a company is providing a return to those investors (finpipe.com). In addition, the investor will through by ROE to get information what they need to make a sound decision (Winters, 2002). The investors normally will look for positive ROE, before making any kind of investment and also use to compare different investment options by an investment advisor (Dogra, n.d.). During 2010, Tesco ROE is 12.04 if compare to 2009 (11.98%) it increase around 0.06 percent. Besides that, Carrefour also emphasis on ROE, because investor is their money income if their ROE is not well that will influence their business and will affect them to expand in international business in worldwide. Therefore, the equity also look more to the operational and profitability ratios which to determine future profits that will accrue to the shareholder and t he shareholders compare the profitability of different projects by looking into their return on investment ratios (Dogra, n.d. and finpipe.com, n.d.). According to Shannon report (2010), Tesco CEO Terry Leahy announcement that the 145 store Fresh Easy should become profitable in fiscal 2013. Because of this announcement it causes the return on equity growth. In addition, a sharp improvement in Asia markets like Thailand and Korea able to helped drive sales growth. Return on Assets is evaluate to use get a feel for how well a company using their assets to generate income (money-zine.com, n.d.). During year 2010, Tesco ROA increase around 0.5 percent from 6.4 percent to 6.9 percent, because of the amortization charge on intangible assets arising acquisition. It also causes the group trading profits increase. In addition, they release cash from property through a sequence of joint ventures and other sale and leaseback transaction. Therefore, these transactions so far is completed which with pension funds, property companies and other investors would have delivered aggregate proceeds of  £2.2bn (Tesco, 2010). 5.3 Liquidity ratios Liquidity ratios are determined of a company ability to meet its debts (Winters, 2002). Liquidity ratios have current ratio and quick ratio. Current ratio is help company to see their able to pay their current debts without going against future earnings. In year 2009, Tesco current ratio 2009 is 0.77: 1 and year 2010 is 0.74:1. However, we can realize that current ratio from 2010 is decrease. This is because they always have new markets to invest in. The Tesco CEO Terry Leahy increase in borrowing ratios when spearheaded  £6.6 billion of spending on expansion, including the  £958 million takeover of South Koreas Homever supermarket chain. Although, Tescos facing debt is high but they feel it still very healthy balance sheet (Bloomberg, 2009). Quick ratio is show of the companys ability to make the payments on current obligation. Quick ratio for Tesco in year 2009 is 0.61:1 and year 2010 is 0.56:1. It shows that year 2010 ratio is decrease. This is because during that period they facing financial crisis. Although their ratio is decrease but they still can pay the debts because of they repaid their debt more early and use that was earning little interest to buy back higher interest-bearing corporate bonds (Tesco, 2010). Part B 5.4 Competition Besides that, competition in the worlds market is more important because it enables help the company assess intelligently the business environment in which the firm operates. This is because if without competition, the company unable to improve as in no competitive advantage. The competition enables the management to identify the companys weak points which to helps the firm to concentrate on the areas it needs to improve. The Main competitors of the Tesco are Carrefour S.A., J Sainsbury plc, Wm Morrison Supermarkets PLC and so on (Datamonitor, 2004). These are the main competitors in business strategies and the value markets. In other words, it also can help the company to know what kinds of actions are required to development with the competitive position in the industry (Articlesbase.com, n.d). 5.5 Motivation Employees are considered the important asset of a company. Based on that, the key of business success is general relying on employees. Employees are considered the important asset of a company. Based on that, the key of business success is general relying on employees. Tesco mission is work as a team, trust and respect each other, listen, support and say thank you, and share knowledge and experience to customers. Above all they want their employees everyone at Tesco can enjoy their work. Besides that, the Tesco believe that if you treat people well they will give great service so they customer able to enjoy their shopping trip. Tesco know their employees can work better when they are given the space to make decisions and take responsibility. They also encourage their employees to learn from their mistakes and challenge conventional thinking (Tesco, 2010). 6.0 Methodology: Theoretical framework for this study is: Gross Profit Margin (IV) DB Total Assets Turnover (IV) Net Profit Margin (IV) Return on Assets (IV) Stock Turnover Period (IV) Tesco Performance (DV) Quick Ratio (IV) Return on Equity (IV) Current Ratio (IV) In this case, the Tesco performance is dependent and financial ratios are independent. Generally, secondary data collection is going to be done in order to help achieve the objectives in this study. It can through by annual report to do a comparatives which how well the Tesco performance in current year and previous year. In addition, they can highlight the variances in past budget, so that they can improve in following year through by these problems. (Words count: 2061) Reference lists Auerbach. A., n.d. How To Analyze Your Business Using Financial Ratios. [Online] Available at: ,http://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL12_1500.htm> [Accessed 26 October 2010] Barry. C.C., n.d. Financial Ratios. [Online] Available at: [Accessed 27 October 2010] Beginnermoneyinvesting.com, n.d. Profitability Ratios. [Online] Available at: [Accessed 14 November 2010] Bloomberg, 2009. Tescos debt-fueled growth sparks investor backlash. [Online] Available at: [Accessed 29 October 2010] Carter. M., 2010. The Purpose of Financial Ratios. [Online] Available at: [Accessed 27 October 2010] Checksure, n.d. Tesco Plc and History of Tesco Plc. [Online] Available at: [Accessed 26 October 2010] Datamonitor, 2004. Tesco PLC. [pdf] Available at: [Accessed 15 November 2010] Dogra. A., n.d. Return on Assets Ratio. [Online] Available at: [Accessed 14 November 2010] Finpipe.com, n.d. Financial ratio analysis. [Online] Available at: [Accessed 4 November 2010] Fresh Easy Buzz, 2010. Tesco Drops From Third to Fourth Place in Important Global Retailing Ranking Despite Having Higher Sales Growth Than Rival. [Online] Available at: [Accessed 29 October 2010] Jiao. K. and Bhalotra. K., 2007. Financial Analysis J Sainsbury Plc. [pdf] Available at: [Accessed 27 October 2010] Kulkarni. A., n.d. Return on Equity Ratio. [Online] Available at: [Accessed 14 November 2010] Missouribusiness.net, n.d. Financial Ratios. [Online] Available at: [Accessed 27 October 2010] Money-zine.com, n.d. Investment Ratios. [Online] Available at: [Accessed 14 November 2010] Mysmp.com, n.d. Profitability Ratios. [Online] Available at: [Accessed 14 November 2010] Netmba.com, n.d. Financial Ratios. [Online] Available at: [Accessed 27 October 2010] Shannon. S., 2010. Tesco First-Half Profit Gains as International Sales Rebound. [Online] Available at: [Accessed 29 October 2010] Tesco, 2010. About TESCO. [Online] Available at: [Accessed 25 October 2010] Tesco, 2010. Annual report 2009 2010. [Online] Available at: [Accessed 28 November 2010] Tesco, 2010. Annual report 2009 2010. [Online] Available at: [Accessed 28 November 2010] Tesco, 2010. Creating good jobs and careers. [Online] Available at: [Accessed 15 November 2010] Tesco, 2010. Group performance. [Online] Available at: [Accessed 29 October 2010] Tesco House, n.d. Tesco Plc Business Information, Profile, and History. [Online] Available at: [Accessed 17 October 2010] Wearden. G., 2009. Tesco reports weak sales growth. The company is still planning to hire around 10,000 people during 2009 more than Sainsburys and Morrisons together. [Online] Available at: [Accessed 30 October 2010] Wearden. G., 2009. Tesco unveils record profits of  £3bn. [Online] Available at: [Accessed 28 October 2010] Wearden. G., 2010. Tesco rings up record profits. [Online] Available at: [Accessed 28 October 2010] Winters. A., 2002. Investment tips: what are key investment ratios? [Online] Available at: [Accessed 14 November 2010] Executive Summary:http://www.scribd.com/doc/39455198/TESCO-Financial-Analysis

The Struggles of the Youngers in A Raisin in the Sun Essay -- Raisin S

The Struggles of the Youngers in A Raisin in the Sun   Ã‚  Ã‚  Ã‚  Ã‚   Lorraine Hansberry's A Raisin in the Sun depicts the struggles of three generations of the Youngers family in the 1950's of poorer Chicago.   Act 2, scene 2 of the play displays an understanding of the Youngers and the atmosphere in which they live.   In just a few pages, Lorraine Hansberry reveals the struggles enforced upon the characters individually as well as with their united desires as a family.   Individually, each character must overcome prejudice from his family and associates, while still enduring struggles and hardships that diminish any intended goals.   Together, however, the Younger family must overcome the racial bigotry incurred by society, while still maintaining social pride and integrity.   In contrast, a predominant expression of hope and encouragement is a factor in the lives of such characters, as revealed by the author.   With the use of dramatic elements to interpret the events of this section of the play, in addition to the issues of race and gender, it is obvious that the Youngers represent a black family struggling towards middleclass respectability not only in society, but in their own home as well.      Ã‚  Ã‚  Ã‚  Ã‚   To interpret the significance of this scene, it is necessary to consider the environment, including the way the scene is set up and other devices used to interpret the situation.  Ã‚   Set in the home of the Younger's, the scene represents the Youngers' living conditions.   Objects such as packing crates are thrown into the scene, representing the moving of the family.   All dramatic elements intertwine to offer an o... ...p; Props such as the bed, the phone, the radio and the newspaper had bold meanings associated with them.   The actions of the characters and the struggles they faced with issues of racial discrimination and gender differences symbolize the struggles of society as a whole.   The time, the 1950's, the reference to the Ku Klux Klan, and the place Chicago, represent a period of great trials and tribulations for black people overcoming the slavery of their people in America.   Throughout the entirety of the play, issues of gender and race play a recurring role.   It isn't until Act 2, scene 2 of the novel when hope is sought for these issues.   Through the revelation of this section, it is discovered that the Younger's are a family with a lot of pride who struggle and seek hope to better their position in the corruption around them.   

Anthropogenic Sources of Atmospheric Methane Essay -- Geology

Anthropogenic Sources of Atmospheric Methane Introduction The atmosphere has always contained the Greenhouse Gas methane. Along with carbon dioxide, nitrous oxide, and water vapor, methane helps to create the natural greenhouse effect. These gases trap some of the sun's energy and keep the Earth at a warm enough temperature to sustain life. If the occurrence of any of these gases in the atmosphere is increased, the natural greenhouse effect will intensify and further warm the Earth. Due to man's activities, the amount of atmospheric methane has more than doubled since pre-industrial times. It could double again by the year 2050. Today, 60 to 70% of methane releases come from human- related activities. Pie chart of Greenhouse Gases The Effect of Methane on Global Warming Methane is the second largest contributor to potential global warming (carbon dioxide being the first). Methane is an extremely powerful greenhouse gas, and it increases the greenhouse effect in two ways. Firstly, it absorbs infrared radiation well, making it twenty times more effective at trapping heat in the atmosphere than carbon dioxide. Secondly, increased amounts of methane increases the amount of water vapor in the stratosphere, further trapping heat. Another characteristic of methane relative to global warming is its staying power: the methane released today could still trap heat more than a decade from now. Its concentration in the atmosphere is rising annually. Landfills The largest source of methane emissions in the United States are landfills. Landfill gas, which is mainly composed of methane and carbon dioxide, is the result of the anaerobic decomposition of ... ... it and use it for our benefit. Sources: Pipkin. Recent Climate Change. http://madmonster.williams.edu/geol.103/04-Climates2.html, Fall 1996 EPA. Inventory of U.S. Greenhouse Gas Emissions. Methane. http://www.epa.gov/oppeoee1/globalwarming/inventory/1998-inv/methane.html, April 7, 1998 World Meteorological Organization. Scientists Support IPCC Global Warming Conclusion, Call for Quick Action. http://www.voyagepub.com/stories/0996cli2.htm , Summer 1996 EPA. Climate Change: Methane and other Greenhouse Gases. http://www.epa.gov/outreach/ghginfo/reports.htm Global Warming is Happening. http://www.enviroweb.org/edf/ishappening/ishappening_frameset.html. copyright 1997 Methane (CH4). http://global.phy.pdx.edu/sarah/CH4.html Michael Franklin. Trash Can Be Turned Into Energy Source. http://www.dfpress.com/science/0422972.html, April 1997

8 Common Types of Computer Viruses Essay

Dictionary.com defines a computer virus as â€Å"a segment of self-replicating code planted illegally in a computer program, often to damage or shut down a system or network (â€Å"Virus,† 2012).† The term virus has become more generic over the years and has come to represent any type of malware, or malicious software. There are many types of malware that can be classified as viruses but it is the intention of this paper to examine 8 of the most common types. These types are virus, worms, trojans, adware/pop-up ads, spyware, keyloggers, rootkits, and scareware. * Virus- as defined above, a virus is self-replicating code planted in a computer program. This malware’s sole purpose is to destroy or shut down systems and networks. (â€Å"Virus,† 2012). * Worms- These are standalone programs whose sole purpose is to replicate and spread themselves to other computers. Their main use is to search for and delete certain files from computers. * Trojans- This malware is designed to look like a useful program while giving control of the computer to another computer. It can be used for several malicious things: * As part of a botnet to use automated spamming or distribute denial-of-service attacks. * Electronic money theft * Data theft * Downloading or uploading of files to the computer * Deletion or modification of files * Crashing the computer * Watching the viewer’s screen * Anonymous internet viewing * Adware/pop-up ads- â€Å"The definition of adware is a software package which displays or downloads advertisements to a computer. These ads are usually in the form of pop-ups, and the goal of adware is to generate revenue for its author. In itself, adware is harmless, however, some of it may come integrated with spyware (What is the definition of adware? 2012).† * Spyware- Malware used to collect information about a user’s browsing habits  or to intercept personal data. (â€Å"Spyware†, 2012). * Keylogger- Using dedicated software or implanted hardware, this malware covertly monitors and records every keystroke made on a remote computer. (â€Å"Keylogger†, 2012). * Rootkits- â€Å"A rootkit is a collection of tools (programs) that enable administrator-level access to a computer or computer network.† â€Å"A rootkit may consist of spyware and other programs that: monitor traffic and keystrokes; create a â€Å"backdoor† into the system for the hacker’s use; alter log files; attack other machines on the network; and alter existing system tools to escape detection. (â€Å"Rootkit†, 2012) * Scareware- This is a class of malware that represents itself as antivirus software even though it is fake. It is used primarily to scam people into purchasing it but in most cases it does not actually do anything. Sometimes it will contain another piece of malware that it injects into the computer system. References Virus. (2012). Virus. Dictionary.com Retrieved from http://dictionary.reference.com /browse/virus. Spyware. (2012). Spyware. Dictionary.com Retrieved from http://dictionary.reference.com /browse/spyware. Keylogger. (2012). Keylogger. Dictionary.com Retrieved from http://dictionary.reference.com /browse/keylogger. Rubenking, Neil J. (2010) â€Å"Antivirus, and much more: when most people talk about antivirus software, they’re really talking about an app that blocks spyware, rootkits, keyloggers, scareware, Trojans, and more–not just viruses. We review 13 antivirus apps that do just that.† PC Magazine : 72+. Retrieved from http://go.galegroup.com.proxy.itt-tech.edu/ps /i.do?id=GALE%7CA226958047&v=2.1&u=itted&it=r&p=CDB&sw=w. What is. (2012). What is the definition of adware? DirectHit.com. Retrieved from http://www.directhit.com/shopping-answers/what_is_the_definition_of_adware?oo=0 Different Types. (2012). Different types of computer viruses. Buzzle.com. Retrieved from http://www.buzzle.com/articles/different-types-of-computer-viruses.html Rootkit. (2012). Rootkit. SearchMidmarketSecurity. Retrieved from http://searchmidmarketsecurity.techtarget.com/definition/rootkit Scareware. (2012). Scareware. Ask.com. Retrieved from http://www.ask.com/wiki/Scareware