Management Planning of Arthur Anderson Essay - 1284 Words

In this paper, the writer will evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP was founded in 1913 by Arthur Andersen and Clarence DeLany and named Andersen, DeLany Co. The firm later changed its name to Arthur Andersen Co. in 1918. Arthur Andersen LLP, based in Chicago, Illinois, was one of†¦show more content†¦The court found that the instructions were worded in such a way that Andersen could have been convicted without any proof that the firm knew it had broken the law or that there had been a link to any official proce eding that prohibited the destruction of documents (www.wikipedia.com). According to wikipedia.com, â€Å"as of 2008, Arthur Andersen LLP has not been formally dissolved nor has it declared bankruptcy. Ownership of the partnership has been ceded to four limited liability corporations named Omega Management I through IV† (www.wikipedia.com). The planning function of management refers to â€Å"the process that includes defining an organization’s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate those activities necessary to achieving those goals† (Robbins, S.P., 2005, p.5). The planning function of management at Arthur Andersen was no different. When Arthur Andersen founded the accounting firm, it was built on the belief and business practice that reputation was more important than profit. It appears that over time, the strategy at Arthur Andersen became achieving the bot tom line at all cost, contrary to the belief of one of it’s founders, Arthur Andersen. Based on existing rules within the firm, all profits were equally divided amongst the firm’s partners. With the focus on profits and the flood ofShow MoreRelatedManagement Planning- Arthur Anderson1299 Words   |  6 Pageswill evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP wasRead MoreManagement Planning Paper on Arthur Andersen1221 Words   |  5 PagesRunning head: Management Planning Paper on Arthur Andersen Management Planning Paper on Arthur Andersen In 1913, the company Arthur Andersen started by Arthur Andersen and Clarence Delany by the name of Andersen, Delany, Co. In 1918, it was given the name Arthur Andersen Co. The company supplied tax, consulting services and auditing for the large business, and itself had a position in the Big Five accounting firms. In 2002, this firm was found guilty for auditing an energy corporationRead MoreThe Problem With Maples Leaf Shoes Ltd1323 Words   |  6 Pagescovers a lot of behind the scenes activity related to employment: records, compensation and benefits, Job classification, performance reviews, training, collective bargaining, handle employee complaints, policy enforcement, skill assessment, career planning and payroll. Therefore, Maple Leaf Shoes Ltd. should recruit a human resources professionals with a range of personal qualities and skills to perform the tasks and contribute to the growth of the company. Some of the requirements for the future humanRead MoreGolden Bear Case Ess ay1302 Words   |  6 PagesGolden Bear Golf, Inc. 1)Which â€Å"management assertions† were relevant to Paragon’s construction projects? Describe an audit procedure that Arthur Anderson could have employed to corroborate that assertion for each. Professional auditing standards identify 5 â€Å"management assertions† that commonly underlie a set of financial statements. These 5 assertions are: occurrence, completeness, valuation/allocation, rights/obligations, and presentation/disclosure. With respect to the audit of Paragon’sRead MoreArthur Andersen Essay1532 Words   |  7 Pagesissues, had diminished. In 1992, top management had rejected a key ruling from the group for the first time. After that, no one at Andersen listened to the group’s pronouncements. By 1994, two-third revenue of Andersen came from consulting side. Because of its dominant consulting service, Andersen was far more than any other Big Eight competitor at the time. This shift declined the influence of the firm’s in-house ethics watchdog, the PSG. And top management also took some actions to undermine theRead MoreThe Enron Scandal Of Enron1052 Words   |  5 PagesEnron for improper accounting practice. According Sherron S. W atkins, the former vice president for corporate development, Enron failed to disclose complicated deals with its partnerships to inflate the stock price. In a report by Enron’s law firm, Arthur Andersen, the accounting firm that was in charge of auditing Enron, was involved and failed to report the partnership transactions, which resulted in the collapse of Enron. Many believed Andersen’s independence was impaired when it audited EnronRead MoreCase Study Maple Leaf Shoes Ltd. â€Å"Selection of a Human Resources Manager†2255 Words   |  10 Pagesmeet with upon leaving the company. A human resources manager covers a lot of behind-the-scenes activity related to employment: records maintenance, benefits administration, performance reviews, training, policy enforcement, skill assessment, career planning, payroll etc. Accordingly, Maple Leaf Shoes Ltd. should recruit a human resources professionals with a range of personal qualities and skills to perform the tasks and contribute to the growth of the company. Some of the requirements for the futureRead MoreHome Depot Supply Chain Management1480 Words   |  6 PagesHome Depot Supply Chain Management The History of Home Depot Growth of the Organization Home Depot (TheHomeDepot, n.d.) began as a two store operation in Atlanta, GA in 1979. The concept was the brainchild of Bernie Marcus and Arthur Blank, with inspiration from investment banker Ken Langone and well know merchandising expert Pat Farrah. They envisioned a one stop, do it yourself store that carried most of the products needed to do common home care projects. The first two Atlanta based storesRead MoreEnron Corporation and Andersen, Llp Analyzing the Fall of Two Giants1125 Words   |  5 Pagessix months and Kenneth Lay, who was the CEO/Chairman of Enron from 1996 through 2001, was reinstated to CEO after Skilling’s resignation due to â€Å"purely personal† reasons. Andersen. LLP was originally founded as Andersen, Delaney Co. in 1913 by Arthur Andersen, an accounting professor at Northwestern University in Chicago. By Andersen taking tough stands against clients’ aggressive accounting treatments, Andersen quickly gained a national reputation as a reliable keeper of the public’s trust. Read MoreSummary of Facts of the Case Study3381 Words   |  14 Pages1.0 SUMMARY OF FACTS OF THE CASE STUDY After understanding the overall of case study, Arthur Andersen: Questionable Accounting Practice, we have identified a few facts. The following subsection will present the facts. 1.1 ARTHUR ANDERSEN Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clerence DeLeny. Over a span or nearly 90 years, the Chicago accounting would became known as one of the â€Å"Big Five† largest accounting firms in the United States together

Dispension for Study Abroad Free Essays

Education and schools play a substantial role to anyone. I always see schooling as a path to opportunity. Schooling in Waseda University as Japan`s top private, co-educational institutions of higher learning reflects the value of equal opportunity. We will write a custom essay sample on Dispension for Study Abroad or any similar topic only for you Order Now I believe studying business in Waseda University is crucial to my personal success. I want to study Japanese as I lived oversea for 18 years already. I want to learn Japanese culture as I see it as an important factor in ones` success in business since Japanese are known to have the â€Å"business attitude† that made them successful after their downfall in World War II. Moreover, I think that the Japanese society offers great business educational opportunity. In the future, I want to write a research paper about E-business and role of internet in marketing since nowadays the rapid growth of the role of Internet and other Web based marketing strategies present business organizations with both opportunities and challenges. Under such circumstances, sound and timely E-business strategy plays an increasingly important role for companies to stay competitive in the dynamic electronic marketplace. Also, the Internet is the largest and fastest growing interactive network, â€Å"the network of networks†, which is today’s de facto information highway. It presents a challenge to the billion-dollar International Marketing Industry. Every facet of conventional marketing strategy is challenged by this evolving communication potential of the internet. I am interested in this topic since most businesses around the globe have been rushing to the Internet at an incredible pace, in hopes of â€Å"striking it rich,† by marketing over the Internet. This is what I want to do, I must develop new, or at least revised methods of international marketing. So, in order to write this research, I should study really very hard in Waseda University. How to cite Dispension for Study Abroad, Papers

Employee Compensation and Pension Plans free essay sample

A study of Individual Retirement Arrangement (IRA) and Roth-IRA personal retirement savings plans. This paper examines the viable options for personal retirement saving: Individual Retirement Arrangement (IRA) and the Roth-IRA. The paper describes the tax benefits of the funds and the annual contribution limits. It provides complex information on stock option plans and stock ownership plans. The paper is packed with statistics and charts on the financial benefits for these plans. Table of Contents 1. Individual Retirement Arrangement (IRA) and Roth-IRA 2. Traditional and Roth IRA 3. Annual Contribution Limits 4. Employee Stock Ownership Plan (ESOP) and 401(k) Plan 5. Incentive Stock Option Plan 6. References Generally called an Individual Retirement Account is a personal retirement savings plan that is available to anyone during the year who receives taxable compensation. For contribution purposes of IRA, compensation includes salaries, alimony, fees, wages, bonuses, commissions, tips, taxable and separate maintenance payments (Quinn. 1998).

5 Tips on How to Write an Interesting Familiar Essay

5 Useful Tips On How To Write An Engaging Familiar Essay When students face such assignment as composing a familiar essay, they might feel confused and startled. Because it’s not the most popular essay type that students are required to write, many may have only the vague idea of what a familiar essay is.  What is a familiar essay?A familiar essay is a type of prose paper, which includes personal reflections on a particular subject. The author expresses his unique observations without claiming to be right and the reader may agree with the writer’s point of view or remain with his own personal convictions.1. Check quality examples of a familiar essayIf you want to come up with a great paper, you need to have a clear understanding of what exactly a familiar essay should look like. After reading several quality samples you will get the idea and writing your own text will no longer give you a feeling of being lost without knowing in what direction to move further.2. Choose a suitable topicA familiar essay can be written on alm ost any subject as long as it doesn’t require deep expert knowledge from a reader who doesn’t know much about what’s discussed. Ideally, your audience should be able to relate to your words easily so choosing topics that are understandable to many people might be the best bet for such type of an essay.3. Create an outlineA familiar essay is a personal and thoughtful piece of writing but like any other essay, it needs to be structured and organized. Creating an outline will help you stay on track and follow your main idea. You can adjust it in the writing process but a plan will help you follow the direction. The typical five-paragraph structure is the most preferable for a familiar essay but since this type of paper has a personal touch and you are encouraged to express yourself the way you want, the number of paragraphs and their content depends solely on your decision.4. Try freewritingFor some students, creating an outline might not be the most suitable optio n for starting a writing process. In this case, they might find useful to try freewriting. This is an activity during which you write whatever comes to your mind in relation to the chosen subject. The method might seem easy but not everybody can switch off his inner critic and ignore initial imperfection of the text. After you feel like you’ve said it all, stop writing. Now you can reread the draft and structurize your thoughts to make the text coherent.5. Choose a correct toneA familiar essay distinguishes itself amongst other academic writings by being personal and even informal. The language used in the text must be simple enough for the reader to get your message straight away without guessing what a particular word or phrase might mean. Imagine that you are talking to your reader like as if you were sharing your thoughts with a close  friend. Be honest and open but avoid slang and never be superior or condescending.Whatever topic you choose, writing a familiar essay mu st be an interesting task and if you use our tips, composing a memorable paper will be a walk in the park for you. If for some reason you feel that you’re not ready to write such paper, contact us with the request â€Å"do my essay† and all your worries about your academic assignment will be a thing of the past.

Comptemporary Issues In Criminal Justice

Comptemporary Issues In Criminal Justice Free Online Research Papers Crime and the Media A lot of people blame the media for violence and crime. They say that making movies showing a lot of violence and drug use causes teenagers to want to act like the people on the movies. I do not think that the media is the cause of crime. In most of the movies they make, the bad guy usually ends up dead or in jail. The movies are actually teaching children that there are consequences to crime and that no one gets away with crime. Those who choose to blame the media for the raise in crime rates suggest that due to the amount of television watched by juveniles, it will cause them to become criminals. Babybag.com states that the average American child will witness over 200,000 acts of violence on television including 16,000 murders before age 18. Babybag.com also did a poll to parents and when they were asked to select measures which would reduce violent crime a lot, Americans chose restrictions on television violence more often than gun control. All movies that contain extreme violence are rated R and a child should not be allowed to see the movie. Movies shown on television are also rated. It seems that the problem is not with the type of movies that are made but the problem is with the parents who allow their children to watch violent movies. People fail to see that violence is not caused by the media it is caused by people. Its the jealousy, the insults, and the striving to fit into society that causes all the crime. If the parents would raise their children to understand that violence is not the way to handle a situation there might be less crime. When a child does get into trouble the parent should blame themselves and not the media for the way their child was raised. I this world it has become so much easier to blame someone else instead of taking responsibility for your own mistakes. The Media Should be Used to Fight Crime I think that using the media to fight crime was an excellent idea. Shows like America’s Most Wanted have helped to hunt down criminals for decades. With out shows like this there would still be a lot of criminals on the loose. There are people who think that shows like these are only in it for the money. Although they do make a lot of money; they also spend a lot of money tracking down criminals. A lot of people do not believe in shows like AMW. I have heard several people say that they are just for show; the crimes do not really exist and they are all actors. It is true they use actor to replay the crime. However, the crime is real. The things they show have really happened and the criminals they show are really out there. There are different ways the media can be used to fight crime. AMW is a great show and a great start at stopping national crime. The local news station also helps to deter crime and find criminals. There are people who rob stores all the time and think that they got away with it. What they do not realize is that they are now on surveillance cameras and that video has been shown on every news station in the surrounding areas. If it was not for the media and crime prevention strategies like Crime stoppers with McGruff the dog, AMW, the news, and local newspapers we would not have a clue when a dangerous person was around us. With out the media I believe that more than 50% of all criminals would still be free instead of locked up like they need to be. I am personally grateful that the media cares enough to inform us of what is going on in the world. Police Brutality is Not a Problem Police brutality has become a serious problem in today’s world. A police officers job is to â€Å"Protect and Serve† instead they abuse and neglect. There must be something in the badge that gives him a super power because as soon as the badge goes on he begins to believe he is invincible and he has the all time power of God. Police brutality is not something that just happened overnight. It dates back as far as the Biblical days. The New Testament tells of several incidents in which the Roman Guards inflicted violence on many of the new Christians. (Wikipedia 2007 par. 3) Most modern day police did not even exist until the 19th century and even then police brutality was very frequent. Police brutality has also been brought in to the 20th century. Debating Crime tells of the Rodney King story. In this incident several white officers beat up a black man. One of the officers actually stated â€Å"I was scared to death that if this guy got back up, he was going to take my gun away from me† (Debating Crime). When you have several trained officers and one criminal it is very doubtful that the one is going to overwhelm the several. Officials claimed that the police were innocent and they did the right thing. There are some people who do not believe that police brutality is a problem. They say that officers have to use force to get their point across. Others say that force is used only when necessary. This was the case in the King incident. Has this world became so bad that the people we trust to protect us should now be the people we fear the most. Something needs to be done to officers who use excessive force. If a citizen beat someone with a club or taser them with a gun for no necessary reason they would go to jail. Maybe a few officers should spend a day or two in jail and be taught a lesson. Abolish the Death Penalty The death penalty is usually what people receive as punishment for murder. Those who believe in the death penalty believe that â€Å"an eye for an eye† is the proper punishment. They think that death deserves death. The debate over the death penalty has been going on for decades and still not everyone can agree on it morality. In John Kavanaugh’s essay â€Å"Capital Punishment is Unjust†, Kavanaugh discusses different reasons that we as a society may have for legally killing people by means of the death penalty. He begins by depersonalizing the human saying that those who believe in the death penalty do not value a person as being expendable. They only think of the person as a murderer or other form of criminal. I think that the death penalty should be abolished. The death penalty is immoral because of the commandment â€Å"Thou shalt not kill†. No one has the right to play God and decide who gets to die and when they get to die. No human has the right to take another humans life. The death penalty does not deter criminal behavior because they are not given the chance to rehabilitate. The system is to give a person the chance to rehabilitate before resulting to such tactics as killing a person. When most people commit a crime they are thinking that they will not get caught. They are not sitting around thinking† If I kill my wife for cheating I will be put to death for her murder†. Instead of playing God by trying to decide who dies, when they die, and what they die for our government should be able to come up with an alternative solution. The families of victims should be more open to rehabilitating the murderer than killing him. Killing the murderer and inflicting pain on his family does not bring back the victim. In these situations all we as a society should hope for is that this person finds God and changes his life. No one expects the victim’s family to forgive or forget what happened to them. We should hope that their heart is big enough to pray for the sinner. The Criminal Justice System Discriminates Against Minorities I believe the criminal justice system is very discriminatory when it comes to minorities. Most people say that the Justice system does not discriminate it just so happens that minorities are the only ones who get in trouble. When speaking of minorities we are not only speaking of just race. Minority is defined by Webster’s dictionary as† a part of the population that differs from others in race, religion, or social class† When it comes to cases like the O.J. Simpson trial; if that had of been a poor white man or a poor black man that committed the same crime in the same manner he would have been charged with murder. IN the Rodney King case, if it would have been a white man he would have never been beaten. One of the officers in the King case said â€Å"I was scared to death that if this guy got back up, he was going to take my gun away from me† (Debating Crime). The only thing he was scared of was the fact that Rodney King was black. When it comes to minority cases and the court system the minorities usually end up in jail. If a rich man and a poor man are charged with the same crime, they will end up with different punishments. Due to the process and costs of the court the poor man usually can not afford to take off of work while he goes to trial so he gets a public defender to take a plea for him. He can not afford a good lawyer that can fight his case for him. IN return he usually gets jail time. The white man can afford to take off of work for court and pay his attorney enough money to pay off the judge so he does not get any jail time. It is rare that the rich man get any thing more than a small fine. Parole Should Not be Abolished There are several issues in the debate of whether or not to abolish parole. The Lectric Law Library defines Parole as â€Å"any form of release of an offender from imprisonment to the community subject to conditions imposed by the releasing authority and to its supervision.† If the states decide to keep parole then it gives the prisoners a second chance. There are some people who can be rehabilitated and parole gives them that chance. If they can show good behavior while in prison who is to say that can not continue that good behavior outside of the prison? Free Law suggests that sentencing should be â€Å"based on the charges a person is convicted of, and the evidence against them. Each prisoner should be assigned a definite term of imprisonment and a discharge code. This sounds like a good idea. If parole is abolished then it will possibly leads to prison overcrowding. If they keep everyone in prison and they add more on a daily basis soon all the prisons will be over crowded and there will be dangerous criminals on the street because there is not room to house them in the prison. There are already 15 states that have abolished parole boards (NCPA, 2007). These states believe that the criminal should have to serve his full sentence or else there would be no point in the â€Å"Truth in Sentencing† law. It has also come to the attention of these states that the parole boards are a â€Å"Failure† (NCPA 2007). They let people out on parole based on their behavior on the inside and when they get out then they repeat the same crime again. It is up to each state as to how they decide on this issue. In my opinion I would like to keep parole so that the good people have a chance to live their life. There is always going to be a bad apple in the bunch. We should not punish them all just because of one. Everybody deserves a second chance. U.S. Patriot Act The U.S Patriot act does not infringe on our civil liberties. It was simply made to make things safer for the citizens of the United States against terrorist attacks. Those who are against the USA Patriot Act, say that it is violation of the Sixth Amendment. The Sixth Amendment gives us the right to trial, notice of accusation, and the right to legal counsel. Another controversial aspect of the Patriot Act is the search and seizure process. The USA Patriot Act allows law enforcement agencies to delay giving notice when they conduct a search. (USA Patriot Act, 2001) The Fourth Amendment protects citizens against unreasonable searches and seizures. It requires a warrant and notice to the person before the search is conducted. The Patriot Act is considered to be a clear violation of the Fourth Amendment. They feel that by allowing wire taps and such then they are invading their privacy. The final aspect of the Patriot Act deals with the rights of public library users. Those who are against the Patriot Act believe that it endangers the privacy rights of library users by allowing electronic surveillance on library servers and sign-up lists. The American Association of Research Libraries states that the legislation â€Å"threatens the rights of the public and undermines the confidentiality that is crucial for the free flow of information needed for the provision of library services.† I support the Patriot Act and in response to the accusations of the non- supporters I say that it is important to be able to have wire taps because most terrorist are technologically sophisticated. My theory is that if people are not doing anything wrong then why are they worried about what the government finds? Personally I had much rather them investigate and clear me as a suspect than to keep thinking I did something wrong when I did not. A Decentralized System is Better Than a Centralized System I think that a decentralized system with deeper community connections would be better in helping the U.S. operate. When it comes to issues such as border patrol and helping to protect the citizens, it would be better to have more people on the job.(Defending the Homeland) Homeland Security does a good job but they just do not have the man power to save the world. It is obvious that we need more and better people running border patrol. Most terrorist are already in the U.S. because we let them come in. We have no one to blame but our government. There needs to be more people on the job so that we can better analyze the people who want to cross our borders. When it comes to analyzing threats there needs to be more than one set of people on the job. One person might see a bomb threat as just a joke where another person would already know how serious it is. The more people who play the game the more points they can earn. Instead of having one unit that â€Å"knows it all†. Different units can learn from each other. In the event that we have a national disaster the more people there are to help the better off we are. When 9-11 happened we had offers and fireman from every city and state pitch in and help. It made things go a lot quicker than if we just had one unit working on it. During evacuations, things would run smoother if there were small and big units working together to get the citizens out of harms way. References Baby bag (2007) Facts about media violence and effects on the American family. Retrieved on November 16, 2007 from babybag.com/articles/amaviol.htm Debating Crime Part III debating the limits of police power (2001) Wadsworth Wikipedia (2007) . Police Brutality retrieved on October 4, 2007 from http://en.wikipedia.org/wiki/Police_brutality Free Law Answer (2007 October 13) Should parole be abolished. Retrieved on October 25, 2007 From www.freelawanswer.com/law/4103-law-1.html Kavanaugh, J. (2004) Capitol Punishment Is Unjust. Opposing Viewpoints. Retrieved September 23 2007 from . Lectric Law Library (2007) Parole. Retrieved on October 24, 2007 from lectlaw.com/def2/p005.htm Minow, M. (2002). The USA PATRIOT Act and Patron Privacy on Library Internet Terminals. Retrieved April 12, 2004, from llrx.net/usapatriotact.htm NCPA (2007) Fifteen States Abolish Parole. National Center for Policy Analysis Retrieved on October 25, 2007 from ncpa.org/pi/crime/pd011399h.html USA Patriot Act. (2005, April 29). Issues Controversies on File. Retrieved November 15, 2007 from FACTS.com database. Wadsworth/Thomson (2005) Defending the Homeland: Taking the offense. Retrieved from Axia College database on October 25, 2007 Webster’s Vest pocket dictionary (1981) Springfield, MA; Merriam-Webster Wikipedia (2007) . Police Brutality retrieved on October 4, 2007 from http://en.wikipedia.org/wiki/Police_brutality Research Papers on Comptemporary Issues In Criminal JusticeEffects of Television Violence on ChildrenCapital PunishmentThe Effects of Illegal ImmigrationRelationship between Media Coverage and Social andThe Relationship Between Delinquency and Drug UseWhere Wild and West MeetUnreasonable Searches and SeizuresPersonal Experience with Teen PregnancyQuebec and CanadaHip-Hop is Art

Describe the contribution of the Neo Human Relations School of Essay

Describe the contribution of the Neo Human Relations School of Management to the Development of Organisational Theory - Essay Example Management is essentially an integrating activity which permeates every facet of the operations of the organisation. The effectiveness of any work organisation is dependent upon the efficient use of resources, in particular human resources. According to Douglas McGregor, the style of management adopted is a function of the manager's attitudes towards people, and assumptions about human nature and behaviour. He put forward two sets of suppositions - Theory X and Theory Y. The central principle of Theory X is based on direction and control through a centralised system of organisation and the exercise of authority. In contrast, the central principle of Theory Y is based on the integration of individual and organisational goals. These underlying philosophies will influence a whole range of managerial behaviours and strategies. One of the most important factors in the successful implementation of organisational change is the style of managerial behaviour. In certain situations, and with certain members of staff, it may be necessary for management to make use of hierarchical authority and to attempt to impose change through a coercive, autocratic style of behaviour. According to Theory X and Theory Y, some members may actual ly prefer, and respond better, to a directed and controlled style of management. Frederick H

What are the major points of difference in Realist International Essay

What are the major points of difference in Realist International Relations Theory - Essay Example The developments of this period acted as wake-up calls because nations started getting interested in owning resources, creating political boundaries, and ruling the world (Viotti, & Kauppi, 2012). Since then, war has been a part of life for some countries because of lack of peace with neighboring states, for example, Iran and Iraq. Other countries such as the European Union and America found peace by forming international organizations such as United Nations, which formulates the rules that govern the interaction between countries. Scholars have formulated theories to help states to determine how they should interact with others. The main theories of international relations include realism and idealism. The theory of realism has been embraced and criticized at the same time because of the contradictions in its tenets; this makes it useful to analyze the hypothesis and determine the differences in its arguments. Origin of Realism Theory The theory of realism bases its arguments on eco nomic principles, and it argues that states aim at maximizing their utility relative to others. The utility of states increases when they own more resources and power contrary to their counterparts (Rengger, 200). This means that the techniques used to acquire power and resources are not questionable, even if they are against humanity and ethics. The founders of this theory include Nicholas Spykman, Carr, and Hans Morgenthau, all who are from the European Union. Watz and Alexander Hamilton of the United States later contributed to theory. The artistic works of Thucydides and Sun Tzu that existed before the foundations of the theory were used as the basis for the formulation of its principles (Donneley, 2000). Assumptions of the Theory The hypothesis assumes that the government is the highest level of power in a country, and that the leaders of the state make rational decisions. According to Machiavelli, rational decisions are those that increase wealth and power. Therefore, national leaders do not take courses that degrade the power and resources of the state because this would be irrational. This means that the theory disregards international organizations such as the United Nations and International Monetary Fund, which may dictate the actions of the government. The independence of the actions of states means that countries interact in an anarchical system; this is where each government aims at gaining comparative advantage in the acquisition of certain resources and powers (Resende, 2007). Tenets of the Realism Theory of International Relations The principles of the theory were developed by Morgenthau after the Second World War when international relations became a popular subject. However, the ideologies that were applicable during the war included those of Carr and Machiavelli. The first principle of the theory of realism argues that states are governed by the rule of law, and that it is the regulations that manage international relationships (Mary, Rosec rance, & Steiner, 2010). This means that states that do not have laws may not find peace with others, and even those that have inefficient regulations may also fail to find peaceful international neighbors. This then depicts that countries must concentrate on the formulation of logical and efficient laws, in order for them to prosper in the international economy (Machiavelli, & Marriott, 2010). This is because a country analyzes the laws of another state when determining whether to engage in foreign relations