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Computer programs that simulate complex processes in the real world can provide a quantitative tool for determining how much debt can be added safely to a company's capital structure. The increasing number of bankruptcies and defaults in today's international business arena result from debt overload and point to major shortcomings in the conventional financial evaluation process. In this book, Roy L. Nersesian describes why current methods of risk management fail and how computer simulation can be employed to determine the safe level of debt more accurately. Because the decision to add debt to an organization requires favorable, and essentially independent, decisions from both the borrower and lender, it is necessary to quantify both perspectives. Through actual examples readers will learn how to do this and to translate an actual business situation into a simulation model or program. Current evaluation systems, according to Nersesian, fail to incorporate the cyclical nature of business activity. They result all too often in an overly optimistic projection of cash flow. Simulation techniques are better able to incorporate the transience of good times and put quantitative analysis of risk on par with quantitative analysis of reward. Simulation techniques also reduce the role of speculative, and highly subjective, judgment. For example, decisionmakers who are not familiar personally with a particular business area, assign more risk to that area than those who are. A quantified risk management system enables executives to rank projects by the degree of risk much as they currently rank them by degree of profitability. The book presents the concept of simulation in terms that can be understood by generalists in corporations and financial institutions. At the same time, it provides computer programmers with an understanding of risk management principles. It will provide a valuable resource for: financial executives, planners and strategists in corporate and governmental organizations; bank lending officers; and computer programmers working with these organizations.
"The Encyclopedia of Microcomputers serves as the ideal companion reference to the popular Encyclopedia of Computer Science and Technology. Now in its 10th year of publication, this timely reference work details the broad spectrum of microcomputer technology, including microcomputer history; explains and illustrates the use of microcomputers throughout academe, business, government, and society in general; and assesses the future impact of this rapidly changing technology."
For much of the postwar era, Heinz Nixdorf epitomized the Wirtschaftswunder, Germany's extraordinary recovery from the devastation of war. During his lifetime, he became a legend as the visionary young entrepreneur who had the nerve to challenge the giants of the computer industry. He started out with a moped, a few hand tools and a project. He set up his workshop in the basement of an electric power plant and built it into a one-man global company employing 20000 people. In 1986, at the age of 60, during a company party held at the Hannover Fair, he was struck by a heart attack. During the war, he served on the Eastern Front. Upon his return, he studied four years at Frankfurt University, but decided to leave without earning a degree and to set up his own company. He was toying with the idea of bringing the computer to the office, which was in complete contrast to the strategy of the industry leaders. Yet he prevailed and thereby opened up new markets. The technical knowledge he gradually acquired through years of hard work, allowed him to recognize with incredible ability the value of new and untried ideas and to put them into practice. He had the clairvoyance to reduce complex matters to the simplest possible denominator and to concentrate on what was essential. Once he made a decision, he went ahead, regardless of the consequences. He possessed the characteristics of a dynamic entrepreneur: a willingness to take risks, self-confidence, a pioneering spirit, discipline and motivation to venture into the use of untested technology. Whereas the computer industry was producing mainframes available only to large corporations, he decided to pave the way for decentralized computing by making desktop machines available to small and medium companies. Unencumbered by the electromechanical tradition of the industry, he ventured into new fields of electronics. Nixdorf was an optimist convinced he could overcome any obstacle. His leadership style and the organizational structure and framework which he developed in his company were based on the idea that victory belongs to the bold. He was an unusual executive in that he was not only the manager; he owned the business lock, stock, and barrel. He was convinced that an entrepreneur does not gain legitimacy by the wealth he accumulates, but by the contribution he makes to society. Money was not his driving force. But the memory of the hardships he endured during his early years, the loss of his father during the war and the privations his mother, brothers and sisters had to endure, never left him.
The three things essential to all wealth production are land, labor, and capital. "The dry land" was created before there appeared the man, the laborer, to work it. With his bare hands the worker could have done nothing with the land either as a grazer, a farmer or a miner. From the very first he needed capital, that is, the tools to work the land.
Since its first volume in 1960, Advances in Computers has presented detailed coverage of innovations in computer hardware, software, theory, design, and applications. It has also provided contributors with a medium in which they can explore their subjects in greater depth and breadth than journal articles usually allow. As a result, many articles have become standard references that continue to be of significant, lasting value in this rapidly expanding field.
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