Determination of the Tax Consequences-Free-Samples for Students

Questions: 1.Can Robyn be taxed on any part of her salary, from Victoria University, in Australia for the 2016/17 tax year and any other years she acts as coordinator in Calcutta. 2.Determine what amounts will form part of Pauls assessable income for the 2016/17 taxation year. Answers: 1.Issues: The current issues is based on the determination of the tax consequences for the part of salary derived by an Australian resident working overseas and leaving Australia for the purpose of work. Legislation: Taxation rulings of IT 2650 Subsection 6 (1) of income tax assessment act 1936 C. of T. v. Applegate(1979) 9 ATR 899 Henderson v. Henderson [1965] 1 All E.R.179 C. of T. v. Jenkins 82 ATC 4098 Application: The present situation takes into the considerations the salary derived by Can Robyn from her overseas employment as a co-ordinator in Calcutta University. The position of working as the co-coordinator was as long as she remained to work or as long as she wanted the course continued to exist. According to the taxation rulings of IT 2650 it proposes to provide guidelines in determining whether the person who leaves Australia to live overseas on temporary overseas work assignment ceases to be the resident of Australia for the purpose of income tax during their overseas stay (Barkoczy 2016). The term resident and resident of Australia is defined under the subsection 6 (1) of income tax assessment act 1936. As far as the individual is concerned a person whose domicile is in Australia unless the commissioner is satisfied that his or her permanent place of abode is outside of Australia (Snape and Souza 2016). Furthermore, as defined under subsection 6 (1) a person who has been in Australia either constantly or in breaks for no less than half of the income year unless the commissioner is satisfied that an individuals person place of abode is Australia and that he or she does not have any intentions of taking up the residence in Australia. As evident from the current case study Can Robyn is an Australian resident under subsection 6 (1) of the ITAA 1936 since her permanent domicile is in Australia and has been in Australia for more than half of the income year prior to leaving Australia (Braithwaite 2017). Furthermore, the rulings concludes by stating in general language that the intended and the actual length of stay in the overseas country along with any intention of returning to Australia at some point of time (Cao et al. 2015). From the case study it was found that Can Robyn owned a flat in Melbourne and did not abandoned her residence or place of abode where she resided. Instead, the flat owned by her was mortgaged and received part of her employment income in her Australian bank account. As held in the case of Henderson v. Henderson [1965] 1 All E.R.179 an individual retains the domicile of the of their own origin unless the person acquires the domicile of their own choice in another country or by the operation of law (Saad 2014). In determining the domicile of an individual for the purpose of definition resident under Subsection 6 (1) it is vital to take into the consideration a persons intention as to the country in which he or she intends to make their home indefinitely (Taylor and Richardson 2013). Hence, a an individual having an Australian domicile will retain the Australian citizenship if the person intends to return to Australia on a evidently foreseen and reasonably anticipated contingency which is after the end of her employment. As evident form the current situation that Can Robyn has maintained her flat in Melbourne located in Australia. She is also intended to return to Australia on an evidently foreseen and reasonably anticipated contingency after her e mployment ends in Calcutta University. According to the taxation ruling of IT 2650 the liability to impose tax arises and the question where the taxpayer resides should be taken into the consideration in determining the applicable facts of the income under the considerations (Woellner et al. 2013). As held in F.C. of T. v. Applegate(1979) 9 ATR 899 the primary query that rises is to be asked in taking into the consideration that the residency status of a person temporarily leaving Australia is whether the person can be considered as the Australian resident for the purpose of tax (Robin 2017). As a general rule a person leaving Australia not for permanently would yet be considered as to have maintained the Australian domicile unless the it is understood that the person acquired a different domicile of their own choice or by the operation of law. As evident from the following scenario Can Robyn would be considered to have maintained her Australian resident since she has maintained her bank account in Australia to pay for the mortgage flat from the part of the salary received in her Australian bank account. A working visa even from the substantial period would not be considered as a sufficient evidence of an intention to acquire the new domicile (Blakelock and King 2017). In the present scenario, it is assumed that the taxpayer intended to stay in India only for the temporarily period until the course exist and then move back to the Australia. During her course of employment in India Can Robyn did not abandoned her flat that was held in Melbourne due to her overseas absence. Foreign employment income is an income that is derived by an Australian resident working overseas in the form of employee. Foreign income comprises of the income that is earned by the person in the form of salary, wages, commissions, bonuses, allowance and income assessed under the employee share scheme provision. Actually Australian resident are generally taxed for their worldwide income. With reference to the present scenario of Can Robyn it can be said that the part of the salary that is received in her Australian bank account. It is noteworthy to denote that the payment can still qualify in the form of foreign earnings even if it is paid in Australian and it is not derived at the time an individual has worked overseas however, the payment received should be attributable to the period of service rendered (Vann 2016). As evident, the income received by Can Robyn in her Australian bank account would qualify in the form of foreign income since it is paid in Australia. Citing the refe rence of F.C. of T. v. Jenkins 82 ATC 4098, Can Robyn foreign income attracts tax liability and will be included in the assessable income as foreign employment income. Conclusion: To conclude with Can Robyn is required to declare the income that is earned by her from her employment with Calcutta University as a coordinator because the employment income received in her bank account is assessable under subsection 6 (1) of the ITAA 1997. 2.Issues: The present study is based on ascertainment of the taxable income of Paul who had a personal business of Golf Instructor. Legislation: Subsection 6-5 (2) and (3) of the Income Tax Assessment Act 1997 Subsection 25 (1) Barratt v. FC of T92 ATC Henderson v. FC of T(1970) Taxation Rulings TR 93/11 Application: As stated under subsection 6-5 (2) and (3) of the Income Tax Assessment Act 1997 taxpayers should include their assessable income in the gross income which is generated by them (Fry 2017). With reference to the subsections 6-5 (2) and (3) an income that is produced in the income year however received in the other year, the implementation of correct process of ascertaining the earnings is the applicable income year that becomes the subject of the taxpayers and their advisors. The taxation rulings of TR 93/11 is applicable to persons and entities for taxation purpose and it is obligatory for the person to implement either receipts or the earning method of tax accounting in determining the taxable income (Anderson, Dickfos and Brown 2016). As defined under the TR 93/11 fees received under subsection 25 (1) is considered as income in compliance with the ordinary concepts of the ITAA 1936 for professionals or experts whose income is assessable under accrual basis (Tan, Braithwaite and Reinhart 2016). From the given study, it is understood that Paul derived a fee income from the private lesson with the objective of providing lesson to his clients. This brings forward the query of professional fee earnings derived under subsection 25 (1) of the ITAA that must be determined in reference to the facts of the existing case of Pual with reference to the agreement entered into by Paul. From the scenario, it is understood that Paul derived a fee income for lessons imparted to one of his clients following five years of the lesson provided. Based on the appropriate construction associated with the agreement, a recoverable debt is established in such a manner where a professional debt person shall not be under obligation of taking a ctions before it becomes entitled for payment (James 2016). A fee shall be recoverable in the relevant sense given the time to pay has been approved. Citing the reference of Henderson v. FC of T(1970) income that is taxable based on the accrual basis is generated under the subsection 25 (1) of the ITAA when a recoverable debt is established where the taxpayer is not required to take any actions prior to they become entitled for payment (Pope, Rupert and Anderson 2016). In addition to this, a professional person on receiving fee income in advance for the purpose of work to which it is associated. If the agreement has been created amid the professional and the client, the fee income that is derived in the year of income during which the professional individual completes the work to which the fee income is associated either wholly or partly. From the current study of Paul it is understood that fee that is derived by him is concluded as the portion of income and will be included in the assessable income of Paul. As stated under the Taxation Rulings of TR 93/11 recoverable debt is created with a professional individual which does not requires bill to the client once the work is entirely or completely completed (Feld 2016). From the given situation, it is understood the fee received by Paul from Doreen would form the part of the assessable income. The fee received by Paul is considered as income in the income year and such income would be included in the assessable income since the receipt of fee would be regarded as the recoverable debt for the lesson imparted. In computing the assessable income of Paul receipt of $6,000 and $28,000 from the series of lesson imparted would form the part of the assessable income. With reference to the Barratt v. FC of T92 ATC the federal court of Australia has considered the statutory impediment in commencing the lawful proceedings for the recovery of the bad debt (Pope, Rupert and Anderson 2016). However, this does not put off the timing in which the fee income is generated under the subsection 25 (1) by the professional person whose earnings will be taken into the consideration for assessment under the accrual basis. Conclusion: On arriving at the conclusion, the existing study has considered the consequences of income tax derived by Paul in his business course. In accordance with the sub-section 25 (1) of the Income Tax Assessment Act 1936 will be considered as assessable and will be included in the assessable income. Reference List: Anderson, C., Dickfos, J. and Brown, C., 2016. The Australian Taxation Office-what role does it play in anti-phoenix activity?.INSOLVENCY LAW JOURNAL,24(2), pp.127-140. Barkoczy, S., 2016. Foundations of Taxation Law 2016.OUP Catalogue. Blakelock, S. and King, P., 2017. Taxation law: The advance of ATO data matching.Proctor, The,37(6), p.18. Braithwaite, V. ed., 2017.Taxing democracy: Understanding tax avoidance and evasion. Routledge. Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., Stark, W. and Wende, S., 2015. Understanding the economy-wide efficiency and incidence of major Australian taxes.Treasury WP,1. Feld, A., 2016. Federal Taxation of State Tax Credits. Fry, M., 2017. Australian taxation of offshore hubs: an examination of the law on the ability of Australia to tax economic activity in offshore hubs and the position of the Australian Taxation Office.The APPEA Journal,57(1), pp.49-63. James, K., 2016. The Australian Taxation Office perspective on work-related travel expense deductions for academics.International Journal of Critical Accounting,8(5-6), pp.345-362. Pope, T.R., Rupert, T.J. and Anderson, K.E., 2016.Pearson's Federal Taxation 2017 Comprehensive. Pearson. ROBIN, H., 2017.AUSTRALIAN TAXATION LAW 2017. OXFORD University Press. Saad, N., 2014. Tax knowledge, tax complexity and tax compliance: Taxpayers view.Procedia-Social and Behavioral Sciences,109, pp.1069-1075. Snape, J. and De Souza, J., 2016.Environmental taxation law: policy, contexts and practice. Routledge. Tan, L.M., Braithwaite, V. and Reinhart, M., 2016. Why do small business taxpayers stay with their practitioners? Trust, competence and aggressive advice.International Small Business Journal,34(3), pp.329-344. Taylor, G. and Richardson, G., 2013. The determinants of thinly capitalized tax avoidance structures: Evidence from Australian firms.Journal of International Accounting, Auditing and Taxation,22(1), pp.12-25. Vann, R.J., 2016. Hybrid Entities in Australia: Resource Capital Fund III LP Case. Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2013.Australian Taxation Law Select: legislation and commentary. CCH Australia

Project Execution and Control for PMP Project- myassignmenthelp.com

Question: Discuss about theProject Execution and Control for PMP Project. Answer: Introduction While any project team desires to ensure that a project is completed as per the initial plan, sometimes changes may become necessary for the successful implementation of a project (Burke, 2013). This report explores the various aspects of project change management. Time, cost, and quality impacts of the change in the project and the techniques used to manage them. Time There are very few projects that are completed according to the initial plan. While change can be viewed as inevitable, Change control processes put in place can be the bridge between project success and failure. Each project has a specific duration upon which it should be completed in its desired form. Project changes such as widening the scope can lead to delays which can lead to a project being completed later than it was scheduled although this requires additional budget (Helgason,2011). On the other hand, changes aimed at reducing the scope of the project can lead to the completion of a project before its scheduled completion time. Project time can be managed through increasing the budget or reduction of project scope (Heldman,2013). Cost Cost is an important aspect of any project. Successful completion of a project can be defined based on the completion of a project within its initial budget. While each project has a finite budget, sometimes project changes may become a necessity. The impact of this is that it can affect a project either positively or negatively. Project changes focused on reducing the scope of a project can have a have a positive impact on the budget by minimizing it while changes aimed at increasing the scope can escalate the budget beyond the initial estimates(Snyder,2013).Project cost can be managed by maintaining the initial project scope or reducing it through the elimination of unnecessary activities. Quality Projects must meet certain deliverables that are usually established beforehand. A project is deemed to have been completed in the desired quality if it has met its various objectives within time and budget estimates. Project changes that increase the scope of a project without increasing projects budget, time or both can lead to the completion of a project whose quality is below the intended quality (Blomquist,2010) Quality, time and cost of a project can also be managed through continuous monitoring by the project team. Options to satisfy the change request and any associated risks for each change Project change requests occur when an alteration or an additional deliverable is required by the client of the project. Several options can be used to satisfy change request for various projects. Filling of change request form This is the first step in the change request. The client fills a change request form in which they state the actual request, the reason for the request including negative impacts of not undertaking the request, expected outcome from the request expected completion date and expected value which is a justification of why the request is needed (Wysocki,2012). Submission and review of the request form After the documentation, the change request form should be submitted to the project team for review in which the team analyses the possible impacts of the requested change for decision making (Shenhar Dvir,2007). Definition of option and creation of response document After the request form has been reviewed, options should then be created by the project team. The team should include in their response the proposed solution, proposed timeline, impact of the change to the project and a timeframe for the client to respond to the proposed time and cost impact and the proposed solution (Ika, 2009). Final Decision and Approval The client should the make a final decision within the timelines set by the project team. The decision is then approved by the project team Associated risks Project scope, time and budget changes are associated with risks such as the abandonment of a project, unavailability of adequate of resources failure of the project to deliver expected results and resistance of the project. Other risks include impacts on suppliers and customers, the decline of the morale of the project team and possible stress and confusion (Meredith Mantel Jr,2011) Explanation of scope creep, examples and tools and techniques that can be used to manage scope creep Scope creep is used to refer to the continuous and uncontrolled changes in the project scope usually after the beginning of a project caused mainly by lack of proper definition, control, and documentation of project scope (Kendra Taplin, 2014). For example, scope creep can be said to have occurred where a project that began with two or three features end up having ten features. Major causes of scope creep are internal miscommunication and disagreements between the project team as well as a change of project requirements by project stakeholders. Scope creep also called feature creep; requirement creep, kitchen sink syndrome or function creep (Project Management Institute, 2013). One of the worst examples is the Denver International Airport Baggage handling system which involved the change of the project scope to include additional features barely two years to the launch of the project. Scope creep resulted in the absolute failure of the project. The following techniques can be used t o manage scope creep Clear definition and documentation of project scope Since one of the main causes of scope creep is lack of a defined project scope having a well-defined work scope can help in avoiding scope creep. This should be well written explained and made available to all project parties so that there is an overall understanding of what should be included and what should not be included in the scope (Snyder,2013). Setting up of change control processes It is not quite possible to entirely implement a project in its original form due to the inevitability of changes. This, therefore, calls for an establishment of change control processes which entail suggestion of the desired change, reviewing of the suggestion which is then followed by approval or rejection. If approved, the change is incorporated into the project plan .This technique ensures that change is controlled and does not merely happen without the awareness of the project team (Heldman,2013). References Blomquist, T., Hllgren, M., Nilsson, A., Sderholm, A. (2010). Project?as?practice: In search of project management research that matters. Project Management Journal, 41(1), 5-16. Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA. Heldman, K. (2013). PMP Project Management Professional Exam Study Guide (7th ed.). Indianapolis, IN: Wiley Helgason, V. (2011). Project scope management. Ika, L. A. (2009). Project success as a topic in project management journals. Project Management Journal, 40(4), 6-19. Kendra, K., Taplin, L. J. (2014). Project success: A cultural framework. Project management journal, 35(1), 30-45. Meredith, J. R., Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley Sons. Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK Guide)(5th ed.). Newtown Square, Pennsylvania: Project Management Institute. Shenhar, A. J., Dvir, D. (2007). Project management research-the challenge and opportunity. Project management journal, 38(2), 93. Snyder, C. S. (2013). A project managers book of forms: A companion to the PMBOK guide (2nd ed.). Indianapolis, IN: Wiley. Wysocki, R. K. (2012). Effective Project Management: Traditional, Agile, Extreme (6th ed.). Indianapolis, IN: Wiley.

persus Essay Example

persus Essay Mythology was the way that the Greek and Romans explained the unexplainable.Perseus is a legend in Greek mythology for his great roll in the beheading of the impious medusa. The great tail of Perseus begins 2 generations before he was born.It started when his grandfather Acrisius, king of Argos a Greek isle.Acrisius had a daughter named Danae who was locked in an all bronze house because Acrisius went to the oracle asking if he would ever be a grandfather to a boy, they replied yes and replied that his daughters son would kill him.One day when Danae was sitting under the skylight gold started to fall from the sky.She knew that the great god named Zues had come down and impregnated her.A couple of years went by and Persues was walking around the bronze house when he bumped into Acrisius.Acrisius was enraged and demanded to know whom the child belonged to.Danae replied strongly Zues.Acrisius dares not to kill him for the reason that Zues would come and destroy everything.Acrisius had n o choice but to put them both into a box and send it to sea. A fisherman by the name of Dictys discovered the chest on the island of Seriphus.Dictys, was brother to the king of Seriphus, his name was Polydectes.While Danae was living in Dictyss house Polydectes fell in love with her.Polydectes asked for Danaes hand in marriage but she refused.In an act to make Danae jealous Polydectes asked Hippodeia, one of the daughters of king Oenomaus of Pisa.Polydectes arranged a banquet and invited Perseus.Their Polydectes said that he would rather have the head of one of the Gorgons head.By the end of the banquet Perseus announced that he would go off and cut off the head of one of the Gorgons named Medusa. All though he was greatly overmatched by the great medusa he had a little help from gods and goddesses.He had Hermes, which gave him a magical wallet, winged sandles and a powerful sword.

A Sample Global Regents Essay Could Help Your High School History Paper

A Sample Global Regents Essay Could Help Your High School History PaperIn a sample global regents thematic essay, the topic includes the ongoing conflicts in the Middle East and several other geographic locations around the world. On the page you will see a large scale map of the world with various geographic locations, including locations that have been the sites of military action in the past.The map you see on the page represents the Great War, which took place in various locations, such as the Russian Civil War and World War I. The essay will use a WWI themed sample global regents essay to show readers how different locations would react to a major conflict or another major battle. The United States is not the only nation that are involved in world wars, but many other nations are mentioned throughout the essay.In World War I, Germany and Austria-Hungary were involved in a war that is now referred to as the First World War. They were able to capture much of what is now the modern day Ukraine, part of today's Poland, and part of today's Belarus. Today, Ukraine is still the largest country in Eastern Europe, and Belarus is still one of the more prosperous countries in the former Soviet Union. These locations are also the site of battles that happened during World War I.World War II is also an important point of reference for a sample global regents essay. Many people today know that the United States was involved in World War II, and it was in that war that the United States was defeated by the allies. There are five regions that are being used in a World War II themed sample global regents essay.A map of Europe is shown with the United States and all of the Allied nations in the bottom-left portion of the map. The Battle of Britain took place in this region of Europe in September 1940 and is one of the most famous battles of the Second World War. Many people recognize the islands of the United Kingdom from the movie 'Avatar' and the Lord of the Rings.The Asi a region is also being discussed in a World War II themed sample global regents essay. Some of the European nations are covered in an essay about the Pacific, while other areas of the world are covered in an essay about the battle of Midway. Japan is also mentioned in a short essay about the Pacific in this sample global regents essay.A map of the Western Hemisphere is also shown in a World War World styled sample global regents essay. It shows locations in Central America and South America that were occupied by the United States during the war. South America is covered with an essay about the battles in the Gulf War, and Central America is featured with an essay about the Battle of Iwo Jima.World War I and World War II have a great influence on many of the current topics that are being discussed today, including global warming. People from both of these periods of time can be included in a World War themed sample global regents essay. Many people will learn about World War II from their high school history class, to get their minds set about the war will help them prepare for world history tests.

Revolution Essays - Libertarian Theory, Liberty, Free Essays

Revolution Essays - Libertarian Theory, Liberty, Free Essays Revolution American Revolutions ?What people values as a nation Criticizing a government?s movements or decisions without receiving any punishments, going to school for better education, opening your own business to make your own profits, having a gun, or worshiping your own god are all values that we can have as a nation, called freedom. However, freedom doesn?t come from god or nature itself, but like any other progressive concept and ideals, it comes from revolutions. Therefore, America, one of the most freedom nations in the world, also earned the value of liberty through many reforms, especially the two known as, the changing in understanding of government from the Founding?s led by President Franklin D. Roosevelt and President Lyndon B. Johnson, who also switched the relationship between states and national government. The founding of national government contents several ideals, including individual liberty as a state of liberty, the limitation of constitutional government, and common laws or the rule of laws. Individual liberty is the core of other founding ideals. It contents basic values and rights that as a member of nation should have such as the right to live and to do what he/she wants as long they don?t harm his/herself and other people?s liberty and rights around, according to John Locke, Second treaties of government, 6. ?though man in that state have an uncontroulable liberty to dispose of his person or possessions, yet he has not liberty to destroy himself, or so much as any creature in his possession, but where some nobler use than its bare preservation calls for it. The state of nature has a law of nature to govern it, which obliges every one: and reason, which is that law, teaches all mankind, who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions?. Moreover, to strengthen the ideal and make it fits to the real world, John Locke also stated that each man has a right to punish criminals or execute offenders, who violate liberty of people around. ?one man comes by a power over another; but yet no absolute or arbitrary power, to use a criminal, when he has got him in his hands, according to the passionate heats, or boundless extravagancy of his own will; but only to retribute to him, so far as calm reason and conscience dictate, what is proportionate to his transgression, which is so much as may serve for reparation and restraint: for these two are the only reasons, why one man may lawfully do harm to another, which is that we call punishment?. Or ?every man hath a right to punish the offender, and be executioner of the law of nature?.?. Nevertheless, if people can punish criminals as an act of liberty protection, they also violate the criminal?s liberty as they are still living in t he same ideal of freedom. In the other hand, there are no any different from punishers and offenders. Thus, the ideal of making law was born in order to make the differences. ?The natural liberty of man is to be free from any superior power on earth, and not to be under the will or legislative authority of man; but only to have the law of nature for his rule.?Locke, Second Treatise, sec. 22. Once again, to protect people freedom from the power of making laws and law itself, we claim for another ideal known as a limited government, which experienced from the system of France?s government system.? Under the ancient monarchy the king was the sole author of the laws; and below the power of the sovereign certain vestiges of provincial institutions, half destroyed, were still distinguishable. These provincial institutions were incoherent, ill arranged, and frequently absurd?. Tocqueville, Democracy in America. The idea divides the power to govern people into many branches in order to balance the power and avoid absolute power from any person. ?WHERE the legislative and executive power are in distinct hands, (as they are in all moderated monarchies, and well-framed governments) there the good of the society requires, that several things should be left to the discretion of him that has the executive power: for the legislators not being able to foresee,

Essay Example | Topics and Well Written Essays - 1500 words - 21

Essay Example It might not help in generating additional revenues in the short-run. But, it can enhance employee productivity in the long-run through maintaining a healthy relation with them and becoming responsible for their personal well-being. Again, through maintaining a good customer relation, the company can create a positive image in the society that will definitely help it in winning customer loyalty. Moreover, a good image can help a company in preventing implementations of government regulations on its activities that are sometimes known to be a consequence of popular public demands. This paper however, concentrates upon corporate social responsibilities, i.e., a corporate house’s concern towards environmental sustainability and climate changes and the strategies that a corporate should adopt to protect them (Social Responsibility and Organizational Ethics, 2001). Environmental sustainability implies the measures that an organisation can take for the purpose of environmental protection and thus social welfare. It becomes a very important aspect of corporate responsibility since the well-being of the entire population as well as the future generation depends on it. Some important terminology being used in this paper while discussing the strategies that a company should ideally undertake for environmental protection and making room for climate changes are – Natural Resources – these are resources that are found in nature and are not necessary to be created artificially. Natural Resources can be of two types – exhaustible and inexhaustible. The former ones are those that cannot be restored once they are spent and hence need to be used with much care and concern. On the other hand, inexhaustible resources are those that could be restored and thus do not have a diminishing stock. So, it becomes an important corporate responsibility to protect these exhaustible natural resources and make as little use as possible of them, since everything in our nature

Future management Essay Example | Topics and Well Written Essays - 3000 words

Future management - Essay Example The sole intention of a business is to satisfy the needs of the customers and generate profit for itself. However, one can question the apparent theoretical simplicity of the process. The answer is obvious ‘no’ in terms of simplicity because the simple process of providing goods and services to the customers for generating revenue passes through various complex stages to achieve the goals and fulfil its objectives. There are several business risks, but simultaneously, there are opportunities as well. Hence, to mitigate the risks and capitalize on the opportunities, a company need to have predefined strategies or plans (Gibson and Barsade, 2003). The notion of strategy has been borrowed from the military and adapted for the use in business. In business, as in the military activities, a strategy bridges the gap between objectives of the company and tactics. Hence, it can be stated that tactics and strategy together, closes the gap between the objectives of the firm and the means of achieving it. However, the question which arises in this context is: why does a business require a strategy to operate in the market place? There are several reasons, but one of them is the changing dynamics of the marketplace. The changes in market place occur due to shifts in the external business environment such as, consumer trends, political landscape, new government regulation or a technological change. According to eminent scholars and practitioners, the business environment is always dynamic in nature and undergoes radical shifts with time (Iivari, 2005). With the great global redistribution of social and economic power, it is expected to continue over the next few decades. Moreover, due to the changes in other business factors such as, the environmental factors, political factors, economical factors, legal factors, social factors and technological factors, companies are compelled to bring changes into their system of operation in order to comply with the external environment (Janicijevic, 2012). Despite several attempts to manage the business environment by devising strategies, the attempts have been futile and it also practically seems impossible for a company to manage the business environment (Jones, 2004). This is because a certain amount of change in one of the factors leads to a drastic amount of change in other factors, due to high interconnectivity. Figure 1 (Source: Newagepublishers, 2010) According to eminent scholars such as Schawalby (2005), companies will face a hard time in the future because of the involved uncertainties. The author had also mentioned that due to the increasing intensity of competition within the industries, a company is bound to face complexities. However, the level of complexities faced by the companies will depend upon their ability to adjust themselves in the changing marketplace. An organization has to deal with changes on a daily basis as people usually do with their lives. Change is therefore regarded a s inherent in the contemporary organizations and its management is not only critical, but also at the crux of organizational development (OD). A business always has two sets of objectives namely, short term objective and long term objective. The short term objectives generally deal with the achievement of short term goals. When it comes to the formulation and achievement of long term goals, the dependence on the external envi