The following are my tutorial samples. I have written several papers for students both at college and university levels. Am very experienced and committed to quality. These papers contain questions ab

The Bank of Cancer Research

Name

Institutional Affiliation

Introduction

Bank of Cancer Research (BCR) is a banking concept that is similar to conventional banking. Conversely, the fundamental difference is that all profits made by the bank are directed towards financing research aimed at finding solutions to cancerous illnesses. The origin of this ingenious was Aaron March whose desire to leave a meaningful life by creating a bank that invests all profits in research that seeks to find solutions to cancer problems. Now that starting a new bank is a problematic venture, the goal of Bank of Cancer is acquiring an already established bank then convinces potential sponsors and client about the necessity of the bank. The objective here is to enlist their support and endorsement of the idea.

The world is indebted to countless researchers for their hard work in achieving significant milestones in cancer research. Their creativity and determination have given people the hope of being able to live with, prevent, and cure some forms of cancer (DeNoon, n.d). An excellent example of these achievements is the discovery that smoking can cause lung cancer, use of chemotherapy drugs to cancer treatment, and linking certain cancer types with male and female hormones (DeNoon, n.d). The progress made through research warrants the creation of a Bank of Cancer Research to help is funding advancement in research that may yield better results.

Bank of Cancer Research

According to Vatartas, Shipley, and March (n.d), the Bank of Cancer Research enumerated client choice theory, product differentiation theory, and purpose entity theory. The Bank is vital given the high death rates associated with cancer yet no significant measures are in place to mitigate the situation. Cancer-related deaths occur because of the knowledge gap on cancer treatment. Cancer research is costly since cutting-edge technologies used are very expensive. The Bank of Cancer Research will reduce financial hick-ups caused by underfunding. Aaron March believe that his work and data will help him to convince philanthropists, the public, and the government to fund the idea of acquiring a bank and turning it into Bank of Cancer Research that will be on the forefront in fund cancer research. As mentioned above, it is only through research that cancer problem can be understood and solved.

Data collected during scientific studies help in understanding the problem and generating solutions for various diseases. For instance, research led to the discovery of the immunotherapy cancer treatment that allows the body’s immune system to attack cancer cells and destroy the virus; it prevents cancerous cells from hiding. It also boosts the immune response to cancer (Pathak, 2017). For that reason, it is evident that research is a critical route to fighting cancer but proper research need funding.

Cause-based Businesses and their Critique

Cause-based businesses refer to a Special Purpose Entities (SPEs) or Special Purpose Vehicles/SPVs can either be offshore or onshore Trusts or companies. SPVs help in basic risk management and addressing specific issues in the economy or social structure of a company; SPEs assets are issued as collateral notes (Tavakoli, 2003). Since SPEs are either companies or trusts, the Bank of Cancer Research will be a company whose purpose is funding cancer research; therefore, it is essential to look at some of the uses and critiques of SPEs. SPEs are synonymous to the phrase Off-balance sheet financing or external funding. One organization that utilized this technique is Enron Corporation, but it eventually collapsed. Due to the Enron case, SPEs are criticized for shielding corporation from liability to creditors, investor, and regulators (Love, Liu, Matthews, Sing, & Smith, 2015). In the negative sense, the essence of SPEs is to hide the reality about the operating condition of a company. Consequently, the public develops a negative perception or discounts the legitimacy of a company.

Notwithstanding the critique of cause-based businesses, several of them are in existence world. Others like Maronia and Stoneville failed due to the 2008 economic shutdown that started in Europe and spread to other parts of the world including Australia. J.P Morgan created the tow legal entities to fulfill narrow, specific, and temporary objectives of an organization. With similar directors and address in UK, Enron used the J.P Morgan’s SPEs to covert liabilities to revenue through a non-existent gas trade (Tavakoli, 2003). However, as the scandal began ensuring, it emerged that Enron was financially bankrupt and eventually collapsed.

SPEs’ parent company ordinarily transfers assets with the view of financing large projects without endangering the mother company. SPEs are a tax haven since they act as orphan companies; shares are in charitable trusts. Using the round-tripping strategy, they help in tax avoidance. According to Nasr (2017) SPV are used to own only assets and associated permits, and contract rights like buildings or power plants; transfer of this assets is easier. In Enron Corporation’s case, the question arose regarding the quality of corporate reporting and management’s intention (Crawford & Fredericks, 2003). Nevertheless, the essence of SPEs cannot be downplayed because apart from the dishonesty they are associated with, they may have some economic value.

As explained above, SPVs are legal structures that firms use to provide liquidity and external funding of their projects. The securities they issue tend to have credit enhancements or guarantees that can reduce purchaser’s risks and as a consequence reduce funding costs. The significant problems that face SPVs are that the firm creating the SPE owned 97% of the SPE without reflecting its assets and liabilities on the balance sheet (Crawford & Fredericks, 2003). Since SPEs are used for securitization, leasing assets, and acquisition, they can remain economically viable. For instance, in the case of securitization, an SPE can buy mortgages from the creator of the SPE, and pool the mortgages and issue them to securitizes to investors. Securitized assets include credit cable balances, accounts receivable, and commercial loans.

Due to securitization, access to cash and liquidity is easy; moreover, asset-backed securities reduce costs of debts (Sewell, 2006). Food Motors used this method in 2002 when faced with liquidity problems. The need to cut the outstanding commercial paper could only be achieved through external funding. Through Ford Motor Credit, and SPE issued bonds supported by a variety of consumer and dealer loans at Libor plus 15 bias points to get liquidity (Crawford & Fredericks, 2003). Ford Motors case illustrates how successful SPVs come to the rescue of the parent company. Besides, securitization helps the firms to acquire assets at low costs.

In spite, the limitation of SPEs, Dimitrova (2017) observed that the Giving Pledge could be convinced that it is a good investment strategy to be exploited since it gives investors financial leverage concerning many issues. Investment opportunities that come with BCR, as an SPE are many and present an incentivized feeling of belong to a purposeful community. The Giving Pledge always want to uplift the public stature and therefore cannot resist an invitation to participate in funding the creation of BCR. When other firms subcontract BCR's financial service, it benefits by diversifying its product while the firm giving it a subcontract becomes part of the philanthropic mission helping to fund cancer research. Philanthropy involves expending income for a socially useful purpose. The Bill and Melinda Gates Foundation of 2000 was considered the largest in the 21st century (Kiger, n.d.). Just like BCR, the Gates’ Foundation invests heavily in social welfare, science, and education. For instance, it funds the research aimed at coming up with the malaria vaccine (Kite-Powell, 2018). Philanthropists like Bill Gates will not hesitate to invest in BCR if they are convinced that it has a purposeful course.

Effects of the Social Cause

The BCR targets to generate fund for cancer research. However, preceeding SPVs demeaned the practice by acting as avenues for tax evasion. Notwithstanding the challenge, BCR shows prospect of succeeding because it will fund cancer research through banking. Cancer is a deadly killer disease, especially in developing countries that lack enough equipment used in treating it. Furthermore, there are fewer cancer experts. According to the World Health Organization (2003), cancer rates are likely to increase by 50% because of poor lifestyles. However, the trend is containable only through healthy living and proper public health actions by governments and health practitioners.

Conclusively, a project like the BCR can come in handy to fund research that will help in coming up with new informed better tactics of addressing the issue. Research shows that cancer is big economic challenge than any other disease worldwide because it results in premature deaths, lost productivity, lost years of productivity that siphons more money than heart diseases (World Health Organization, 2003). Apart from death and financial costs relating to cancer treatment, it lives the people desperate and seemingly hopeless and helpless. Intensive research will help in developing methods for mitigating these challenges. All these challenges are solvable through research funded by BCR. Instead of relying on government grants and sponsorship of the WHO, cancer research will be continuous because BCR can be a financial haven.

Contacting the Giving Pledge and Getting their Attention

The Giving Pledge is composed of wealthy and almost unlimited finances not mentioning their unmatched reputation. Hundreds of Giving Pledge is interested in philanthropic works of purposeful value to the society exist. However, many are skeptical about investing in ideas they do not understand for fear of being ripped off. In that consideration, Aaron should be equipped with facts supported by untainted evidence showing the sanctity and clarity of purpose that encourages support for his idea. Since it is a fact that cancer is ravaging lives and soaring many, Aaron needs to prove to the Giving Pledge that his concept is unique, purposeful, and better thank available mechanisms of addressing cancer research. Aware of the challenges bewildering SPEs, Aaron should be able to show that his plan is not aimed at securitization and tax evasion but seeks to succeed in promoting the ease of cancer research. Contacting the Giving Pledge can be done via email to introduce his idea to them and set for either face-to-face meeting or teleconference. The purpose of the meeting is to allow Aaron to sell his concept to respective members of the Giving Pledge. Even though some may not buy into Aaron’s purposeful proposal, some will be willing to invest in it depending on how he presents his pleas.

Attentive Products

Product diversification is considered one way of raising quick money because the business can meet the needs of a variety of customers. Diversification allows for the development of quality products but at varying costs that both high income-earner and low income-earners can purchase or use (Kumar, Gaur, & Pattnaik, 2012). Since BCR will be a bank, it can collaborate with competitive brands like Burger King, McDonalds’ Coca-Cola, Woolmatt, and Tesco among others by allowing consumers to use its credit card to buy goods and pay for services. Levitt (2016) explained that using commonly consumed products like Coca-Cola and Pepsi can be a significant boost to an organization. Being an SPV, BCR is distinctively different from other organizations because of liability, risk characterization, financial management, assets ownership, and control of the entity (Sewell, 2006). On that account, BCR should take advantage of the leniency in the legal system to achieve its mandate as permissible to Australian law. Otherwise, it may be equated to other SPVs that continue to fail and as a deduction loss favor.

Response by BRC Competitors

The banking sector is one of the most competitive segments of an economy with a free market economy. Whenever a bank launches a new product, competitors respond in equal measure. Since BCR want to stand out as an investor in science, education, and social welfare by sponsoring cancer research, correspondingly, other banks will support similar social programs to remain competitively relevant. BCR is likely to stand out from the initiatives of other banks because it will not just be a sponsor of cancer research but an independent funder because it business will revolve around generating money to fund cancer research.

Proof of the BCR Concept

BCR will employ the cause-based marketing as proposed by Aaron to advocate for the value of its service. However, web presence through social media sites like Facebook, Twitter, Instagram, and YouTube will be vital to its growth. By maintaining a strong web presence, people will learn about products and services of BCR and make referrals hence increasing revenue. Modern technologies are proving essential to the survival of many businesses (Bryman & Bell, 2015). Using social media to interact with clients increases their confidence in the organization (Cha & Bagozzi, 2016). BCR can also use discounts on interest rates of loans and other services. Its clients will not only be interested in saving their money but also desiring to combat cancer. Admittedly, BCR concept will not be acceptable to all on the face of it. Using different case-based marketing will help in selling BCR’s agent to the people.

Conclusion

Cancer is recognizably catastrophic given the havoc it continues to wreck internationally and continues to take its toll on least developed countries. Analysis of this paper’s discussion reveals the financial, time, and human capital lost because of cancer. In that case, Aaron’s purposeful idea is evidence-based and needs support from the community of the world to help come up with a remedy. Though evidence available suggests that most SPEs are a haven for financial and economic malpractices, the uniqueness of BCR invites confidence in supporting it. Likeminded firms will also be encouraged to collaborate with BCR in funding of cancer research.

References

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Cha, M. K., Yi, Y., & Bagozzi, R. P. (2016). Effects of customer participation in corporate social responsibility (CSR) programs on the CSR-brand fit and brand loyalty. Cornell Hospitality Quarterly, 57(3), 235-249.

Crawford, P.J & Frederick, E.H. (2003). Special Purpose Entities: Throwing the baby out with the bathwater. Graziadio Business Review. Retrieved May 17, 2018 from https://gbr.pepperdine.edu/2010/08/special-purpose-entities/.

DeNoon, D.J. (n.d.). 50 years of Milestones in the Fight Against Cancer. WedMD. Retrieved May 19, 2018 from https://www.webmd.com/cancer/features/fifty-years-of-milestones-in-cancer-research#1

Dimitrova, L. (2017). Perverse incentives of special purpose acquisition companies, the “poor man's private equity funds”. Journal of Accounting and Economics, 63(1), 99-120.

Kiger, J.C. (n.d.). Philanthropic Organization: Charitable Organization. Encyclopedia Britannica. Retrieved May 19, 2018 from: https://www.britannica.com/topic/philanthropic-foundation

Kite-Powell, J. (2018). Gates Foundation Funds Research for New Synthetic Malaria Vaccine. Forbes.com. Retrieved May 19, 2018 from: https://www.forbes.com/sites/jenniferhicks/2018/01/19/gates-foundation-funds-research-for-new-synthetic-malaria-vaccine/#b51324730c1c

Kumar, V., Gaur, A. S., & Pattnaik, C. (2012). Product diversification and international expansion of business groups. Management International Review, 52(2), 175-192.

Levitt, T. (2016). Partners for good: business, government and the third sector. NY: Routledge.

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Nasr, A. (2017). Special-Purpose Entity Lending Structures: What Developments Have Been Made since the Landmark Bankruptcy Case in Re General Growth Properties, Inc. Am. Bankr. Inst. L. Rev., 25, 177.

Pathak, N. (2017). What’s New in Cancer Research?: Innovative Options in Cancer Detection and Treatment. WebMD. Retrieved 17, 2018 from: https://www.webmd.com/cancer/detect-treat-cancer-17/new-cancer-research

Schwarz, S. L. (2001). Enron and the use and abuse of special purpose entities in corporate structures. U. Cin. L. Rev., 70, 1309

Sewell, D.J. (2006). Effective Use of Special Purpose Entities . The University of Texas School of Law. Retrieved May 17, 2018 from http://sbaustinlaw.com/library-papers/Effective%20Use%20of%20Special%20Purpose%20Entities.Sewell.pdf.

Tavakoli, J.M. (2003). Uses and Abuses Of Special Purpose Entities. TAVAKOLI STRUCTURED FINANCE, INC. Retrieved May 17, 2018 from: https://www.tavakolistructuredfinance.com/special-purpose-entities/.

Vitartas, P.,Shipley, N., & March, A. (n.d.). The Bank of Cancer Research: A Concept to Provide Sustainable Funding for Cancer Research. La Trobe Business School, La Trobe University.

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