Sources of Finance


Support translation:
Sources of Finance
Capital Requirements
We have seen that one of the tasks of the Financial Manager is to raise funds for the business, using the type most appropriate in the circumstances, or the best mix of funds.
The total amount of capital required by a business should be sufficient to pay for the fixed assets and to provide adequate working capital. There is long-term and short-ormedium term capital. What should be the proportion between these different types of capital?
It is generally accepted that in normal circumstances long-term sources of capital (owners’ equity + long-term loans) should exceed long-term capital uses (fixed assets
+ investments held). The basic reason for this is that if the situation were reversed, with long-term capital uses being financed by short-term sources, then the firm would be very vulnerable to short-term influences. This may result in an instability which is not conducive to the firm’s long-term performance.
The actual margin by which the short-term commitments should be financed by long-term sources will, however, vary, amongst other factors, with the industry, with particular factors, with size, and with the general economic situation.
Share Capital + Reserves (E) Loans + Debentures (M) Liabilities (C)
Current Liabilities (D)
Fixed Assets investment (F) Investments Current Liabilities
E + M + C = F + I + D
Thus, if we know or have estimated the cost of plant, buildings, stocks and debtors –
i.e. the total resources required – and can estimate the level of credit we will take from suppliers, then:
E + M = ( F + I + D) – C
Over-capitalisation will exist if the amount of capital is too large in relation to the volume of business, with the result that profits are insufficient to give a satisfactory return on the capital employed. One reason may be excessive ‘ploughing back’ of profits, because the extra business created will be inadequate in relation to the funds invested.
Too much loan capital is another aspect of over-capitalisation. If trade declines the interest burden may become insupportable. Profits will be insufficient to cover interest charges and leave sufficient amounts after tax to pay a satisfactory return to the shareholders.
Where over-capitalisation exists, management should attempt to sell off surplus assets and, with the cash obtained, either find new investments which give a satisfactory return; or distribute the cash as dividends; or use it to redeem some loan capital.
Under-capitalisation occurs when there is inadequate working capital to sustain the activities of the business. This may lead to insolvency problems and the winding up of the business. Many firms in Malta are probably under-capitalised, and rely excessively on bank overdrafts and current liabilities for their financing requirements.
A company’s funds are usually made up of Long, Medium, and Short term finance.
1) Long and Medium term Funds
These include Share Capital and Loan Capital, which together make up the permanent capital of a company. As far as Loan Capital is concerned, the distinction between medium and long term debt is somewhat arbitrary, but most financial observers place it somewhere about seven years.
The following are the various components of long and medium term funds:
A) Ordinary Shares:
These are the foundation of any company’s financial structure. Business requires that capital be placed at risk, and the ultimate bearers if that risk are the ordinary shareholders. The main features of ordinary share capital, or Equity, as it is generally called, are the following:
1 Shares must have a nominal value e.g. LM1 shares. This nominal value is often the price at which the shares were first issued, but it usually bears no relationship at all to their current market value. Occasionally, a company may issue ‘stock’ rather than shares, in which case the capital is offered in bulk, so that one subscribes for a company of it measured in terms of nominal value. A stockholder would own, say, LM100 of stock, while a shareholder would own 100 shares of LM each.
2 Shares issued subsequently to a company’s original issue may be offered at a price equal to their nominal value (at par); at a price exceeding their nominal value (at premium); or at a price less than their nominal value (at a discount). Issues may be offered to the general public (a public issue); or restricted to the existing body of shareholders (a rights issue).
2 Sometimes a company will issue bonus shares. These are always issued to existing shareholders in proportion to their existing holding, and are free of charge to them. A bonus issue, is therefore, not a source of funds, but a
capitalisation of what were previously legally distributable reserves.
3 The shares of a quoted company (i.e. quoted on the Stock Exchange) may change hands frequently. This has no direct financial effect on the company, except that it must maintain up-to-date register of shareholders.
4 The income of the ordinary shareholder is the residual profit of the company, after prior outside claims have been met. This may be either paid to him as a dividend, or retained in the business for expansion. The decision as to how much of the profit to distribute is made by the directors.
5 In normal circumstances the company is barred from law from repaying capital to its ordinary shareholders. Thus, the only way they can ‘withdraw’ their capital as individuals is by selling their shares on the market. In the event of a winding-up, the ordinary shareholders are entitled to the proceeds of the whole of the residual assets of the business.
B) Preference Shares These are different from ordinary shares because they have preferential rights over profits and, in the case of a winding-up, over surplus assets. Theoretically they are part of the Equity since, like ordinary shares, they are risk-bearing. In practice, it is necessary to make their preferential rights attractive in order to sell them, and this is achieved by usually keeping the number low relative to that of ordinary shares. Nowadays preference shares are rarely issued because they have certain tax disadvantages when compared to loan capital.
Preference shares may be preferential: 6 As to income: the preference shareholder is entitled to a dividend of up to a stated amount before any dividend is paid to the ordinary shareholder. Dividend rights may be non-cumulative i.e. if not paid in a given year the dividend is low; or cumulative i.e. any arrears of dividend are carried forward and are given preference against future years’ profits. 7 As to capital: in the event of a winding-up, any surplus assets after prior claims (e.g. outside creditors and lenders) have been met, must first be used to repay up to the full nominal value of the preference shares. Only after this may the ordinary shareholders be allowed to start receiving anything.
Preference shares may sometimes be redeemable. Company law in Malta requires that this be done either out of profits set aside or out of the proceeds of a new share issue.
C) Reserves:
Some reserves arise as the result of mere book-keeping transactions and are not, therefore, sources of finance. For instance, a General Reserve created from existing revenue reserves, or a Capital Reserve arising from revaluation of property, would give rise to no inflow of funds. However, reserves arising from a genuine inflow of cash are a source of finance. One example is the Share Premium Account. More importantly, revenue reserves representing retained profits are a vital source of finance for most companies. They have the advantage to the company of being readily available, merely by restricting dividend distributions. This way of raising capital also keeps costs to a minimum as there are no issue costs. The disadvantage is that the amount available is restricted to that generated from the company’s own operations. If companies had to rely solely on this source for funds, the result could be a very small rate of growth.
D) Loan Capital:
Loans and debentures are capital raised by a company for which interest is paid at a fixed rate at stated periods. The holders are not members of the company. The loan capital has a nominal value, which may differ from the current market price. The latter depends mostly on the relative interest rates of the loan compared to current interest rates of loans of the same level of risk. The main features of the loan capital are:
8 The interest payable to the loan holders is a charge against revenue, and not an appropriation of profits, as is the case with dividends. Therefore, the fixed rate of interest is payable in full whether profits are available or not.
9 The capital value of the loan may be repaid, although irredeemable debentures are sometimes issued. A company is sometimes empowered to reduce its indebtedness by purchasing its own debentures in the market.
10 There is security for the interest and capital. This arises primarily from the contract between the company and the lender/s. The loan holders may sue if
there is any breach of the agreed terms.
Companies will sometimes issue convertible debentures, which carry the additional right that they may be converted into ordinary shares at the option of the holder. The terms of the conversion and the dates on which it can be exercised are set out by the company. Convertible debentures give the holder all the security associated with normal debentures, but with the additional advantage of becoming a shareholder at a later date if the company’s performance makes this desirable.
Share warrants, also known as subscription rights or options, are documents that entitle the holder to subscribe at some future period and at pre-determined price to an issue of shares in a company. They carry no interest, and may entitle the holder to one share any quoted figures are given per share. Warrants are usually offered as an added inducement to subscribe for loan stock. Thus, a company might issue, say, 12% unsecured loan stock with option to subscribe for 50 shares at 80 cents per share for every LM100 of loan stock held during the years 2002 – 2007. Note that in the case of a warrant the investor does not subscribe funds now, but merely has the option to subscribe additional funds to the company at some future date. Warrants are negotiable, so that the initial holder can transfer his options.
2) Short Term Funds
Short-term debt is particularly attractive to financial managers for 3 reasons:
11 it is easily available to most companies;
12 it is the cheapest form of financing available;
13 it is a form of financing that provides the company with a high degree of
financial flexibility.
Of all types of financing, short-term debt is typically the easiest to obtain. Accruals (wages payable, taxes payable, interest payable), are built into the firm’s normal business arrangements and require no further effort to acquire. Most suppliers extend trade credit without any special negotiation. Banks compete to make short-term loans to companies of all sizes. In fact, for small firms, short-term debt may be the only source of financing available from sources outside the company.
Short-term debt is normally a low-cost source of financing relative to debt of longer maturity and is usually cheaper than long-term debt. Some short-term financing is actually free. It also provides a high degree of flexibility in that a company can change its level of funding quickly and easily as its needs change.
The main types of short-term financing are:
a) Bank Credit:
This usually takes the form of either an overdraft or a loan. The overdraft is probably the most flexible form of borrowing. The borrower is usually granted by the bank an agreed maximum up to which to borrow, and generally has the right to repay the overdraft in whole or in part at any time. Interest is charged on daily outstanding balances, so that the user pays only for what he has actually borrowed.
Although theoretically overdraft advances are repayable on demand, they are never, in practice, called in without reasonable notice. The bank usually formally reviews and renews the facility every year.
The principle limitation on the extent of bank borrowing of a firm is its current ratio. The firm must maintain a constant watch over its liquidity position, since the bank will be watching this; and if the firm is seen to be heading for liquidity problems, the overdraft may be withdrawn, thus worsening further the firm’s position.
Bank Loans are considered as medium-term sources of finance. They differ from overdrafts in that they are negotiated agreements for the advance of particular sums for stated periods at a stable interest rate (normally) over the life of the loan. Such loan agreements will be specific as to cover, the payment of interest, and the repayments schedule. The borrower will therefore incur defined commitments. Sometimes, the interest charged may fluctuate over the term of the loan.
b) Trade Credit.
The use of credit from suppliers is a major source of finance. It is particularly important for small and fast growing firms. The cost of making maximum use of trade credit includes:
14 the loss of suppliers’ goodwill;
15 the loss of cash discounts.
The effect of the first one is difficult to quantify in money terms. However, one should remember that although a company may delay payment beyond the final due date, such a policy is inadvisable, as it will worsen the company’s credit rating and make additional credit difficult to obtain. Remember that trade credit is a valuable source of short-term finance, being relatively easy to obtain and flexible. It is the largest source of short-term finance for companies as a whole.
The question of loss of cash discounts must be carefully considered, as the cost of this may be higher that you possibly imagine.
c) Bills of Exchange:
A trade bill is essentially a post-dated cheque which a seller draws in his own favour for signature by the purchaser. Bu signing, the purchaser ‘accepts’ the bill, which normally refers to specific goods received, and is made out against the value of such goods. Its function is to enable the seller to obtain cash prior to the date of payment set out on the bill. If the acceptor’s name has sufficient standing, the bill may be accepted for discounting by third parties at a price below its face value. The difference between the discounted value and the face value of the bill represents the interest costs to the seller.
A LM100 bill payable 33 months hence is discounted immediately for LM98.50. What is the rate of interest?
1.50 365 —-* —-= 6.4%p.a.
98.50 90
d) Efficient stock control:
Though not a direct source of income, a reduction in excessive stock levels can lead to great cash savings, and thus a decrease in finance required.
e) Factoring
Factoring means selling trade debts for immediate cash to a factor who charges commission. Most factors offer three basic services, although clients are under no obligation to accept them all. These are:
16 Finance: when the factor receives each batch of sales invoices from his client he will pay about 80% of its value in cash immediately, charging about the same interest rate as banks. Many factoring firms are in fact controlled by banks. The finance would not, therefore, be cheaper than the bank credit, but will be attractive if further bank credit is not available.
17 Accounting: the factor becomes, in effect, the firm’s accounting department, as duplicate copies of all invoices sent to customers by the firm are sent, in batches, to the factor, who keeps a full set of sales ledger accounts for each customer. He handles all the invoices, and chases the payments due. The client has, therefore, just one debtor, the factor, who pays promptly and regularly.
18 Credit Insurance: the factor is a guarantee against bad debts, provided excessive credit is not allowed by the client. The amount of the commission varies, and depends mostly on the client’s type of customer.
The savings of factoring include:
a) Tangible Savings
19 bad debts losses insurance;
20 cost of services of credit agencies;
21 salary costs of sales ledger personnel;
22 overhead costs of sales ledger department;



Support translation:
1 The Finance Function: Difference between finance and accounting; managerial aspect of finance; functions of the financial manager; objectives of financial management.
2 Capital Budgeting: Relevant costs and cash flows in capital budgeting; factors to be considered in capital investment appraisal.
3 Investment Appraisal Techniques: Traditional and D.C.F. techniques: A.R.R., Payback, N.P.V., I.R.R.; Uses and limitations of each technique; superiority of D.C.F. techniques; Sensitivity Analysis. (Note: students will be expected to know how to apply these techniques to a variety of project appraisal situations.)
4 Sources of Finance: Long, medium, and short-term sources: Ordinary and Preference shares, reserves, loan capital, trade credit, bills of exchange, factoring, invoice discounting, hire purchase, leasing. Choosing between long-term and short-term finance.
5 Working Capital Management: Importance of working capital management; the working capital cycle; financing of current assets: conservative & aggressive policies, their costs & benefits. Computation of working capital requirements; coping with shortages or surpluses of working capital.
6 Management of Debtors: Establishing a credit policy; assessment of creditworthiness; credit limits & credit periods; collection procedures and credit control.
7 Management of Stocks: Objectives of stock management; setting of stock levels; trade-off between ordering & carrying costs; determining the Economic Ordering Quantity; setting up an internal control system for stock.
8 Management of Cash: Reasons for holding cash; objectives of proper cash management; control of cash levels; factors determining the proper cash levels; controlling inflows & outflows of cash: preventing leakages, speeding-up collections, delaying payments. The Cash Budget as a management tool; its uses & limitations. (Note: students will be expected to know how to draw up a cash budget from given data.)

Reading List
the following book is suggested as your basic textbook:
Geoffrey Knott Financial Management (Macmillan Business Masters)
You will find the following useful books useful to consult on different topics:
J.Cooper – Financial Management (M&E Professional series)

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Appoġġ traduzzjoni:
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1 Il-Funzjoni tal-Finanzi: Differenza bejn finanzi u l-kontabilità; Aspett maniġerjali ta ‘finanzi; funzjonijiet tal-maniġer finanzjarju; għanijiet ta ‘ġestjoni finanzjarja.
2 Kapitali Budgeting: spejjeż rilevanti u tal-likwidità fis-ibbaġitjar kapital; Fatturi li għandhom jiġu kkunsidrati fl-evalwazzjoni investiment kapitali.
3 Investiment Apprezzament Tekniki: Tradizzjonali u D.C.F. tekniki: A.R.R., tpattija, N.P.V., I.R.R .; Użi u l-limitazzjonijiet ta ‘kull teknika; superjorità tal D.C.F. tekniki; Analiżi tas-sensittività. (Nota: l-istudenti se jkunu mistennija li jkunu jafu kif japplikaw dawn it-tekniki għal varjetà ta ‘sitwazzjonijiet valutazzjoni tal-proġetti.)
4 Sorsi ta ‘Finanzi: Long, medji u s-sorsi ta’ terminu qasir: ordinarji u ishma privileġġati, riżervi, kapital ta ‘self, kreditu kummerċjali, kambjali, factoring, skontijiet fattura, xiri bin-nifs, kiri. Jagħżlu bejn finanzjarja għal żmien qasir fit-tul u.
5 ta ‘Ħidma Capital Management: Importanza ta’ ġestjoni tal-kapital tax-xogħol; -ċiklu kapital tax-xogħol; finanzjament ta ‘assi kurrenti: il-politiki konservattivi & aggressivi, l-ispejjeż tagħhom u l-benefiċċji. Komputazzjoni tar-rekwiżiti kapitali ta ‘ħidma; jlaħħqu ma ‘nuqqas jew eċċess ta’ kapital tax-xogħol.
6 Ġestjoni tal Debituri: Twaqqif ta ‘politika ta’ kreditu; valutazzjoni tal-affidabbiltà kreditizja; limiti u perjodi ta ‘kreditu ta’ kreditu; proċeduri ta ‘ġbir u kontroll ta’ kreditu.
7 Immaniġġjar ta ‘Stokkijiet: L-għanijiet tal-ġestjoni tal-ħażniet; iffissar ta ‘livelli tal-ħażniet; kompromess bejn li tordna & ispejjeż li jġorru; determinazzjoni tal-Ordering Ekonomika Kwantità; twaqqif ta ‘sistema ta’ kontroll intern għall-istokk.
8 Ġestjoni tal Flus: Raġunijiet għall-pussess ta ‘flus kontanti; objettivi ta ‘ġestjoni ta’ flus xierqa; kontroll tal-livelli ta ‘flus kontanti; Fatturi li jiddeterminaw il-livelli ta ‘flus xierqa; tikkontrolla influssi & ħruġ ta ‘flus kontanti: tnixxijiet li jipprevjenu, kollezzjonijiet-eċċess ta’ veloċità up, iddewwem pagamenti. Il-Baġit Cash bħala għodda ta ‘ġestjoni; użi tagħha & limitazzjonijiet. (Nota: l-istudenti se jkunu mistennija li jkunu jafu kif tfassal baġit kontanti mid-data mogħtija.)

qari Lista
il-ktieb li ġej huwa ssuġġerit bħala textbook bażiku tiegħek:
Geoffrey Knott Ġestjoni Finanzjarja (Macmillan Business Masters)
Inti issib il-kotba utli ġejjin utli li tikkonsulta dwar suġġetti differenti:
J.Cooper â € “”Ġestjoni Finanzjarja (M & E serje Professjonali)

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Ondersteuning vertaling:
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1 Die finansiële funksie: Verskil tussen finansies en rekeningkunde; bestuurs- aspek van Finansies; funksies van die finansiële bestuurder, doelwitte van finansiële bestuur.
2 kapitaalbegroting: Relevante koste en kontantvloei in kapitaalbegrotings; faktore wat oorweeg moet word in kapitale belegging evaluering.
3 Investment Evaluering Tegnieke: Tradisionele en D.C.F. tegnieke: A.R.R., Payback, N.P.V., I.R.R .; Gebruik en beperkings van elke tegniek; superioriteit van D.C.F. tegnieke; Sensitiwiteitsanalise. (Let wel: Studente sal verwag word om te weet hoe om hierdie tegnieke te kan toepas om ‘n verskeidenheid van projekwaardering situasies.)
4 Bronne van Finansies: Lang, medium, en kort termyn bronne: gewone en voorkeuraandele, reserwes, leningskapitaal, handel krediet, wissels, factoring, faktuur verdiskontering, huurkoop, verhuring. Die keuse tussen langtermyn- en korttermyn-finansiering.
5 bedryfskapitaalbestuur: Die belangrikheid van bestuur van bedryfskapitaal; die bedryfskapitaalsiklus; finansiering van bedryfsbates: konserwatiewe & aggressiewe beleid, hul koste en voordele. Berekening van bedryfskapitaal vereistes; hantering van tekorte of oorskotte van bedryfskapitaal.
6 bestuur van debiteure: Die vestiging van ‘n kredietbeleid; assessering van kredietwaardigheid; kredietlimiete & krediet periodes; insamelingsprosedures en kredietbeheer.
7 Die bestuur van Voorrade: Doel van voorraadbeheer; instelling van voorraadvlakke; kompromis tussen bestel & drakoste; die bepaling van die ekonomiese bestelhoeveelheid; oprigting van ‘n interne beheerstelsel vir voorraad.
8 Bestuur van Kontant: Redes vir die hou van kontant; doelwitte van behoorlike kontant bestuur; beheer van kontant vlakke; faktore wat die behoorlike kontant vlakke; beheer invloei & uitvloei van kontant: die voorkoming van lekkasies, spoed-up versamelings, vertraag betalings. Die Kontantbegroting as ‘n management tool; sy gebruike & beperkings. (Let wel: Studente sal verwag word om te weet hoe om ‘n kontantbegroting van gegewe data.)

Die volgende boek word voorgestel as jou basiese handboek:
Geoffrey Knott Finansiële Bestuur (Macmillan Business Masters)
Jy sal die volgende nuttige boeke nuttig om te raadpleeg oor verskillende onderwerpe te vind:
J.Cooper â € “”Finansiële Bestuur (M & E Professionele reeks)

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përkthim Support:
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1 Funksioni i Financës: Diferenca midis financës dhe kontabilitetit; aspekti menaxherial i financave; Funksionet e menaxher financiar; Objektivat e menaxhimit financiar.
2 Capital Buxhetimi: Shpenzimet relevante dhe flukset e mjeteve monetare në buxhetimin e kapitalit; Faktorët që merren parasysh në vlerësimin e investimeve kapitale.
3 Teknikat Investment Appraisal: tradicionale dhe D.C.F. Teknikat: A.R.R., Payback, N.P.V., I.R.R .; Përdor dhe kufizimet e secilës teknikë; Superioriteti i D.C.F. teknikat; Analiza e sensitivitetit. (Shënim: Studentët do të pritet të dinë se si të aplikojnë këto teknika për një sërë situatash të vlerësimit të projektit.)
4 Burimet e Financave: gjata, të mesme, dhe burime afat-shkurtër: të zakonshme dhe preferenciale aksionet, rezervat, kapitalit hua, e kreditit tregtar, kambialet, factoring faturë, skontimit, këste, leasing-ut. Zgjedhja në mes të afat-gjatë dhe financave afatshkurtër.
5 Punës Capital Management: Rëndësia e menaxhimit të kapitalit të punës; cikli i punës e kapitalit; financimin e aseteve aktuale: politikat konservatore dhe agresive, kostot e tyre dhe përfitimeve. Llogaritja e punës kërkesat e kapitalit; përballimin me mungesat apo tepricat e kapitalit punues.
6 Menaxhimi i Debitorët: Krijimi i një politikë të kredisë; vlerësimi i besueshmërisë; kreditit kufijtë dhe periudha e kreditit; Procedurat e mbledhjes dhe kontrollit të kreditit.
7 Menaxhimi i Stoqet: Objektivat e menaxhimit të aksioneve; vendosjen e niveleve të aksioneve; trade-off mes urdhërimin dhe shpenzimeve që kryejnë; përcaktimin e Rradhitja Ekonomik Sasia; ngritjen e një sistemi të kontrollit të brendshëm të aksioneve.
8 Menaxhimi i Cash: Arsyet për mbajtjen e të holla; Objektivat e menaxhimit të duhur të parave të gatshme; kontrolli i niveleve të para të gatshme; Faktorët që përcaktojnë nivelet e duhura të holla; kontrolluar hyrjet & daljet e parave të gatshme: rrjedhjet parandalimin, koleksionet shpejtimin-up, duke vonuar pagesat. Buxheti Cash si një mjet të menaxhimit; përdorimet e saj dhe kufizimet. (Shënim: Studentët do të pritet të dinë se si për të nxjerrë një buxhet të holla nga të dhënat e dhëna.)

The Management of Cash


Support translation:
The Management of Cash
A) Motives for Holding Cash
Keynes, in his “The General Theory of Employment, Interest, and Money” identified three motives for holding cash:
The transaction motive
The precautionary motive
The speculative motive

Transaction balances are kept in order to meet routine cash needs of the business, such as the purchase of raw materials, payment of employees etc.
Precautionary balances are kept to meet unanticipated needs occasioned by such things as sharp increases in raw material costs, strikes, and unexpected delays in the collection of amounts owed by debtors.
Speculative balances are kept in order to allow the firm to take advantage of any opportunities which may present themselves at unexpected moments, and which are typically outside of the normal course of business. For example, suppliers give special offers, but you must pay cash.
B) The Objectives of Cash Management
These can be divided into two:
To meet the payments schedule
To minimize ‘idle funds’ committed to cash balances

a) Meeting the Payments Schedule
Firms collect money from debtors, and pay it to creditors, loan providers, employees, shareholders, the Government etc. The financial manager must ensure that the firm has enough cash in hand to meet its payments schedule. Most financial managers would like to keep more cash than strictly necessary because:
It enhances the firm’s reputation if it settles invoices on time, prevents insolvency and angry creditors, and the loss of valuable time spent in finding excuses why they are late in settling their dues.
You can take advantage of trade discounts if you pay your bills within the due dates
You can probably negotiate better prices with your suppliers if you can make firm commitments about payment dates
Unforeseen cash expenditures can be met without due strain.

b) Minimising Funds committed to Cash balances
If there were perfect synchronization and certainty in your cash receipts and payments schedule, cash balances could be done away with completely. However, in practice this cannot happen. As you minimize the cash balance, you increase the chance of a shortfall and of failing to meet your payments schedule. Conversely, as you increase the cash balances, you decrease the chance of a shortfall and failing to meet your payments schedule, but too much cash tied up in idle balances involves an opportunity cost and hence loss of profits.
A shortfall can be costly. A provision in the Business Promotion Act stipulates the charging of interest on amounts overdue to micro organizations by certain bigger entities; while an EU Directive extends this principle to all amounts due to all firms when the period exceeds 30 days. This will automatically come into effect in Malta on Malta’s accession to the EU on May 1, 2004. Other costs include the loss of reputation, suppliers quoting higher prices to allow for long payment periods and for possible bad debts, and angry creditors suing you publicly and possibly driving you to liquidation.
Many firms try to compromise by holding some of their cash in short-term investments, such as:
Deposit (savings) accounts: these have low risk and guaranteed capital. Usually little notice is required to withdraw the money, but interest rates tend to be low.
Term Deposits (fixed) accounts: interest rates are higher than in deposit accounts, but the money can be withdrawn only at the end of the specified period.
Certificates of Deposit: these are similar to term deposits but they form a marketable security. Since interest is fixed for the life of the deposit, the capital value may vary with changes in market interest rates.
Government securities: these provide a guaranteed fixed return and capital value if held until maturity. They are easily marketable but again their capital value may change with changes in interest rates.

The reasons for holding such short-term investments are:
They serve as an alternative to idle, non-earning cash balances
They are an attractive place to help keep some cash reserves to meet precautionary or speculative needs, as long as the conversion back to cash can be accomplished quickly and without loss.

C) Considerations in Determining the Cash Need
a) Synchronisation of the Cash Flows:
The firm’s cash inflows and outflows over each successive period of the budget year are first forecasted. In doing this, seasonal and cyclical patterns of payment must be taken into account, as well as possible delays, bad debts, discounts, etc. Estimates are also prepared for cash sales, interest and dividend income, and funds coming from borrowing, the sale of the firm’s shares and bonds, and the sale of fixed assets. This exercise is then consolidated formally into the Cash Budget, which will be treated in more detail later on in this handout.
The more accurate these Cash Budgets, the greater is the reduction in uncertainty, so that the firm can keep lower precautionary balances of cash. Accuracy in cash budgeting/forecasting will pinpoint those periods in which the firm may have a cash shortfall. Knowing in advance, one is more able to make arrangements on how to finance such shortfalls. Unfortunately, not all firms prepare cash budgets, or prepare them seriously, and are therefore caught unprepared especially when something unexpected occurs.
However carefully we plan, a precautionary cushion against uncertainty is still needed to cope with the irregularities in the cash flows, unexpected delays in collections, bad debts and unanticipated cash needs. Possibly the best option is the overdraft facility, because:
Overdraft interest costs are usually lower than those of long-term finance
Banks will require less security than for a long-term loan because the finance can be recalled (at least in theory) at short notice.
The repayment of the overdraft is easy: money received is simply paid into the account
Interest is paid only on the outstanding daily balance
The unutilised balance of an overdraft facility represents spare credit which can be obtained quickly and easily without the prior consent of the bank. Holding such an unused balance will diminish the necessary balance of idle precautionary cash.

b) Availability of Other sources of Funds
The size of the cash balance maintained to meet shortfalls of inflows will depend in part upon the availability of other sources of funds to the firm. The owners might have funds that could be readily available. Our firm may be part of a group of companies whose cash flows are not synchronised, so that one firm’s shortage of funds can be financed temporarily from another firm’s surplus.
There might be also sources of funds within the business that might suffice to meet unexpected or unusually large drains of cash. We might sell and lease back machinery or equipment. The use of debt factoring will speed the collection of funds from our debtors. We could change, even temporarily, our debtors’, creditors’, and stock management policies in order to have less funds invested in current assets and more in current liabilities. In this way our needs for extra cash, in times of need, will be reduced.
c) Relations with Banks
If we use a number of banks as depositories, we can minimize our cash balance by limiting the number of depositories used, and by restricting the size of deposit balances at each bank. We might instruct banks to transfer any excess amounts without delay to our central banking account, Any balances in this account which may temporarily exceed our current needs could then be invested short-term as indicated earlier on.
If some of our local bank accounts are maintained to meet payrolls, we can ‘save’ cash by waiting till the last minute before the funds are needed, and only then transfer any excess amounts. By combining accounts of divisions, or companies within the same Group, that have different seasonal ‘peaks’ and ‘troughs’ we can reduce our average total cash balances throughout the year.
D) Controlling Inflows and Outflows of Cash
a) Controlling Inflows
i) Preventing Leakages:
The Financial Manager must ensure that incoming cash arrives in the bank account of the company, and not in the pocket of some employee.
Incoming cash can be fraudulently diverted in a number of ways, but this is made more difficult when payment is effected by cheque. When settlement is received in cash, the work should be split up:
• one employee receives the cash, records it and issues the receipts;
a second employee prepares the money for deposit in the bank
a third employee makes the entry in the sales ledger.

The Management of Stock


Support translation:

The Management of Stock
Stocks (or Inventories) are usually made up of the finished product that the firm is offering for sale, and the parts that make up the product, including raw materials, work in progress and the supporting supplies, such as indirect materials.
Reasons for Holding Stock
Just as in the case of cash, which we dealt with in a previous lecture, stocks represent idle capital. The ideal situation would therefore be where we hold no stock of anything, but buy production materials as needed and produce goods for specific orders which are sent out immediately they are complete. In practice, however, most firms need to keep stocks for various reasons:
1 They allow the manufacturer to bridge time. Since there is no instantaneous production or delivery, there must be a readily available quantity of the product which can be used when a customer wants to buy it.
2 Stocks are used to meet the competition. If the firm does not meet the customer’s demand rapidly and completely, it may loose him to a competitor who is able to do so. This leads firms to stock not only enough to satisfy the expected demand, but also ‘safety’ stocks to satisfy unexpected demand.
3 Stocks allow the firm to lessen the costs of discontinuities in the production process. Many firms produce more than one standard product, and it is usually very costly to stop the production of one item for the production of another item. In fact it is generally less expensive to produce one item in excess of the current demand than it is to start-stop the production process. The excess is then placed in store to meet future demand.
4 Prices of materials tend to increase over time, more so in times of heavy inflation. Stocks serve as hedges against price increases
5 In a manufacturing company, running out of raw materials needed for production may mean hundreds of workers remaining idle and unproductive until the materials arrive. Stocks therefore protect against shortages of raw materials and the resulting costs of stoppages.

The Objectives of Stock Management
1. Minimising Stock Levels: The absolute minimum stock level is zero. The firm would keep no stocks and would produce on an individual customer order basis. This is the case, for example, in the traditional small furniture maker in Malta who produces individual items to the client’s specifications. However, this is not practical for most firms since they are obliged to meet customers’ orders immediately or lose them to their competitors who can do so. Stocks, as we said above, must also be kept to ensure smooth production schedules.
A good financial manager will minimise stock quantities because he knows that keeping stock is costly. If a firm keeps an average stock of Lm100,000 and finances it with an overdraft facility at 7% interest, the cost of financing this stock is Lm7,000 per annum, in addition to other costs we will refer to later on. This all goes to decrease profit.
2. Meeting Demand: If a firm’s objective were solely to maximise sales by instantaneously meeting all demand, the firm would have to keep large amounts of the product in stock. It would then never experience the costs associated with shortfalls in meeting the demand. It would never suffer the costs of losing a customer to a competitor, of losing customer’s goodwill, of losing the sale and profits, or of incurring production disruptions or delays.
It is very costly, however, to have stocks lying around tying up capital that could be profitably employed elsewhere. The financial manager must therefore determine the appropriate levels of stocks in terms of a trade-off or compromise between the expected benefits of not experiencing shortfall of stock (raw materials as well as finished goods), and the cost of maintaining the necessary stocks.
Setting Stock Levels
We have said that the firm must have neither too little nor too much stock, and one way of helping to achieve this objective is to set a number of pre-determined stock levels.
1. Minimum level: this is the level below which stocks should not normally fall, as otherwise a stoppage in production, or a loss in sales and customer goodwill, may result. It is, in essence a ‘buffer’ or ‘emergency’ stock, and is calculated as follows:
minimum level = re-order level – (normal consumption x normal re-order period) 50 units – (3 units per day x 12 days) = 14 units
2 Maximum level: this is the level above which stocks should not normally rise.

In setting this level, the following must be kept in mind:
1 The rate of consumption
2 The time needed to obtain delivery of new orders
3 The re-order quantity.

Maximum level = re-order level + re-order quantity – minimum consumption during minimum re-order period
= 50 units + 80 units – (2 units x 8 days) = 114 units
1 Re-order Level: this point will be higher than the minimum stock level, so as to cover such emergencies as abnormally high usage of the material or unexpected delays in delivery of new supplies. It will also be lower than the maximum stock level.
2 Re-order Quantity: this is also known as the Economic Order Quantity (E.O.Q), and represents the quantity to be ordered in normal circumstances. It is established taking into consideration Ordering Costs and Carrying Costs.

Re-order level = maximum usage x maximum re-order period = 4 units x 20 days = 80 units a) Ordering Costs: These are those expenses incurred every time that an order is placed. In the purchase of raw materials or other items, they include the clerical, stationary, telephone costs etc. involved in placing an order as well as certain costs of receiving and checking the goods once they arrive. Certain of these costs tend to be of a fixed amount, irrespective of the size of the order (e.g. the cost of processing documents through Customs). Often, the price at which you buy products depends on the size of the order, the bigger the order the lower the price per unit. These might encourage you to place a big order once a month, rather than four smaller orders once a week.
Total ordering costs tend to rise with the number of times an order is placed during the operating period. If an order costs Lm20 to place, and 10 orders are placed in one year, total ordering costs will amount to Lm200. Therefore, for a given volume of purchases in a period, total ordering costs decline as the quantity of each order increases.
Where the product is manufactured by the firm itself, there are also the costs of setting up the production changes, necessary when one switches from the production of one item to another. This may include re-tooling the machinery to conform to the specifications of the other product.
b) Carrying Costs: These include the costs of storage, handling and insurance, the cost of the funds tied up in stock, depreciation, maintenance, security etc. Theft and obsolescence constitute another cost, both of which tend to increase as stock levels get higher.
For a given volume of purchases in a period, carrying costs will therefore tend to increase as the quantity of each order increases.
As managers, we have to try to achieve the best balance between ordering and carrying costs, in order to minimise our total stock costs. We try to achieve this by resorting to the Economic Order Quantity (E.O.Q)
The Economic Order Quantity is an important concept in the purchase of raw materials and in the storage of finished goods. The idea is to minimize stock costs by establishing the optimal order quantity for a particular item of stock, given its forecasted usage, ordering cost, and carrying cost.
Your company expects to use 2,000 units of a particular material during 2005, which amount can be purchased in any quantity. The cost of each order is Lm100. Carrying costs will be Lm10 per unit. What is the optimal size of each order?
This amount (E.O.Q.) will be found by using the following formula:
E.O.Q. = √2SO
C Where S = annual usage in units
O = ordering costs per order (Lm)
C = carrying costs per unit in the period (Lm)
E.O.Q. = √2(2,000) (100) 10
This gives us a figure of 200 units, and if we want to minimise out total stock costs, we should order that quantity every time.
(Note: the above does not take into consideration a number of factors that may affect our decision, and which can complicate the matter in practice; but for the purposes of this introductory course we do not need to go into these).
Just-in-Time Stock Control
The J.I.T. stock control system is more than just a stock control system. It is a production and management system. Not only is stock cut down to a minimum, but the time and physical distance between various production operations are also reduced. In addition, management is willing to trade-off costs to develop close relationships with suppliers and promote speedy replenishment of stock in return for the ability to hold lower ‘buffer’ or ‘safety’ stocks.
The J.I.T. system was originally developed in Japan by the Toyota motor vehicle company, the idea being that the firm should keep a minimum level of stocks in hand for its production of cars, relying on its suppliers to furnish parts “just in time” for them to be assembled. This was in complete contrast to the traditionally accepted “just in case” system, where manufacturers keep high levels of stock to ensure that production is not interrupted. Because the system relies on suppliers to deliver parts and materials immediately, they must have a close and long-term relationship with them. Difficulties were encountered I implementing the system, but many well-known companies, like General Motors, Ford, NCR, and Dell Computer and many others have managed to cut down substantially on stock costs by using the system.
The system basically tries to locate stock supplies in convenient locations, also laying out production plants in such a way that it is a cheaper and easier to unload new stock consignments, and computerising the stock order system. In this way the cost of ordering new stock (‘O’ in the EOQ formula) is reduced. Second, by developing a strong relationship with suppliers located in the same geographical area and setting up re-stocking systems that reduce the time between order and receipt of stock, the safety stock is also reduced. True, this may increase the chances of running out of stock if something does not work, but the benefits of reducing stock and delivery times are considered as being greater than the costs associated with the increased chances of running out of stock.
TQM and Stock Purchasing Management
Out of the concept of Total Quality Management (TQM) which is a company-wide systems approach to quality, has come a new way of perceiving the relationship between supplier and purchaser. Whereas traditionally, suppliers are replaced when a new cheaper source of supplies is found, under this new approach a ‘partnershiptype’ relationship is encouraged.
Traditionally, the purchasing department, especially in the larger companies, would purchase materials from a large number of different suppliers, in order to be able to diversify away the negative effects of poor quality by any one supplier. Moreover, if one supplier is unable to meet delivery schedules, or even goes out of business, this would have only a small effect on the purchasing company. However, efforts to raise quality have led to a new approach to the customer-supplier relationship called single sourcing.
Under single sourcing, a company uses very few suppliers, or even one only, for a particular part or material. In this way, the company has more direct influence and control over the quality performance of a supplier because the company accounts for a larger proportion of the supplier’s volume and is therefore a very important customer for him. The company and supplier can then enter into a system of partnering, where the supplier agrees to meet the quality standards of the customer in terms even of delivery and service. In return, the company enters into a long-term purchasing agreement with him that includes a stable order and delivery schedule. This system has been widely used with success in the motor vehicle manufacturing industry in Japan and the United States.
The concept of partnering has greatly changed the way that stock is purchased, and is of benefit to both parties. The supplier knows that it is in his interest not to lose an important customer who may account for a significant part of his sales, and thus will do his utmost to keep the customer happy. The customer, in turn, benefits from this, not only because of a better price but also because the supplier generally is an expert in his particular field and may be able to advise the customer on optimum specifications for the product.
Those of you who are studying management will go into TQM in more detail, and will get to understand the benefit to the company of such a system, and learning how to balance costs against quality to achieve the best compromise. What is said above relates only to some of the benefits which TQM leads to.
Control of Stock
A company must have a proper system of stock control. Remember that stock is simply cash in disguise! If stocks are uncontrolled (e.g. left lying around in heaps for anyone to use as required) you are encouraging theft; moreover it will be impossible to know the actual level of stocks and therefore impossible to control them. In addition, costs of production will be very imprecisely known, and this will mean that information required for costing and other managerial decisions will be incomplete or even misleading.
A good system of stock control should ensure that there is both physical security as well as proper procedures and documentation for stock movements.
a) Physical security
The following procedures are not exhaustive but merely the minimum that must be in place: 1 Select and fit appropriate storage facilities which are dry, well ventilated and adequately lit. 2 Keep these storage areas locked, with access to them limited to as few
people as possible. 3 Materials should be stored with due regard to the possibility of fire hazard. 4 Shelves should be clearly labelled. 5 Use the first-in first-out system to guard against deterioration. New
supplies should therefore go to the back and old stock brought to the front.
6 Do frequent stocktaking, possibly using a perpetual inventory system. Investigate seriously any discrepancies found and check continuously that the established procedures are actually being followed (staff tend to take short cuts in order to reduce work for themselves).
7 Heavy items should be stored near ground level for ease of handling, and
items rarely requested should be stored higher up the shelves. 8 Any items affected by light and heat should be stored accordingly. 9 Give special attention to items of a very high value. If possible store them
in a separate place under the personal direct responsibility of the stores
manager and check them more frequently than other items.
10 Ensure that there is the proper equipment (fork lifters, palletisers, hydraulic platforms, safety clothing, etc) to facilitate handling of stock items and to guard against health and safety hazards for your employees.
b) Procedures and Documentation
The following documentation is normally required for a proper system of control.
Nowadays, these documents are generally computer generated, which help in control. 1 Materials requisition: a signed request for stocks. It records the authorisation for the usage of stocks, provides a primary document for writing up stores records and is used by the accounting department to help establish product costs. 2 Purchase requisition: a signed request for replacement stocks issued by the storekeeper to the purchasing department. It will be issued when stocks of a particular type have reached the established re-order level, and will include the re-order quantity. 3 Purchase order: the instruction in writing issued by the purchasing department to the chosen supplier for the supply of a new consignment. It should include the quantities of each item ordered, the price, and the reference code where applicable, as well as the delivery and payment terms. 4 Goods received note: a record of stocks delivered to the stores. The storekeeper should carefully check the items received, for both quantity and quality, before issuing the GRN. 5 Invoice: this is the supplier’s ‘bill’ for the goods ordered and delivered. It will be paid by the Finance department after verification against the purchase order and the goods received note i.e. when it is confirmed that a valid order has been correctly fulfilled. 6 Stock records: the storekeeper will keep a ledger (nowadays in computerised form, but similar to the old card system) recording the quantity of all items of stock received and issued and the balance after
every transaction. Computer systems will indicate when the time has come to re-order according to pre-set criteria..
The above are the ‘bare bones’ of a proper stock system, and many of you will go on to study the subject in more detail as part of your management or auditing courses. For the purposes of this foundation course, however, what we have said is enough. Many businesses in Malta, however, do not have even such a basic system in place.

The Management of Working capital


Support translation:
The Management of Working capital
Working capital can be defined as the difference between current assets and current liabilities. It is the investment a business makes in assets which are in continual use and are turned over many times in a year. It is therefore made up of the following:
Short-term resources (assets)
Investments (short-term);;
Short-term liabilities
Trade creditors;
Short-term borrowing;
Other creditors repayable within a year.
Importance of Working Capital Management
1 Evidence indicates that most of the financial manager’s time is devoted to day-today internal operations of the firm which can be appropriately classified under ‘working capital management’.
2 Current assets often represent a very substantial portion of the total assets of a firm.
3 Proper working capital management is particularly important for the smaller firms, like most of the firms in Malta. Although they can possibly minimise their investment in fixed assets by renting or leasing plant and equipment, they cannot avoid investment in cash, debtors and stock. Moreover, because a small firm usually has very limited access to outside long-term finance, it must necessarily rely heavily on trade credit and short-term bank loans and overdrafts, all of which affect working capital by increasing current liabilities.
4 As we shall see later on, successful firms which manage to increase their sales would require more funds invested in working capital, but their owners are often reluctant to pump in more money. In such cases, the limited working capital available must be managed very efficiently to enable the business to go on operating.

We know that at any one point in time, firms will usually have both current assets and current liabilities. It is essential for the firm to ensure that it always has enough current assets at its disposal (either cash or other current assets which can be turned into cash reasonably quickly) to meet its current obligations to third parties (creditors), otherwise it may end up in serious trouble. For example, if they are not getting paid, suppliers may refuse to go on supplying raw materials and other supplies, so that the firm will be unable to continue operating. It must also be able to pay its water, electricity, and telephone bills, rent, insurances, bank interest due and its employees. Failure to do so will ultimately lead to the firm being sued and possibly be driven to bankruptcy. Remember also that a firm usually relies on being given some time to pay these expenses (a credit period), but if it loses the confidence of suppliers and other providers of goods and services, because it is either not paying them or paying them too slowly, they will stop credit, and either withhold supplies or only supply against cash, which the firm may not have.
You will therefore see that unless a firm is ‘liquid’ – that is, able to meet its current liabilities, al least – it will not survive, even though it may be showing a profit in the Profit and Loss Account. However, most firms concentrate their effort merely on achieving profit. They try to increase sales revenue, reduce their operating costs, and control their overheads. Operational budgets are drawn up, standard costs are set and considerable effort is expended on identifying variances between budgeted and actual figures. However, relatively few companies worry very much about working capital management, until things reach a crisis point; nut proper working capital management can make the difference between business survival and business failure. Remember that creditors do not really care whether you are making a profit or not, as long as you can convince them that you can continue paying what you owe them. (it has been said that ‘profit is an opinion but cash is a hard fact’).
Cash is therefore the lifeblood of any business. Take it away and the business will die. A transfusion will miraculously bring the patient back from the brink of death. but only if:
You do not leave the transfusion for too late;
The blood is of the right kind;
The problem which caused the haemorrhage in the first place is identified and
attended to.
The financial requirements of any business must be tailored to suit the business’s own particular needs. For example, fixed assets should normally be financed by long-term share capital and loans. Working capital requirements should be attended to by short-term finance, mostly e.g. overdrafts and creditors. We shall discuss this point in more detail later on.
It goes without saying that before capital is injected into the business, it should first be ascertained that all unnecessary leakages have been plugged. Doctors do not leave a vein open when they give a blood transfusion. Otherwise the patient will soon be bleeding to death again, and all the efforts made to save him would have been in vain.
Similarly, of the lack of working capital in a business is due to wrong policies – e.g. the directors want every cent of profit made to be re-invested in new capital projects, leaving nothing for day-to-day working capital requirements – then we must convince them to change their policy, or the problem will soon recur. It must also be mentioned that many directors are often overoptimistic about new capital projects, and do not leave any room for manoeuvring if the actual results are not as good as had been previously assumed.. (When we do Sensitivity Analysis, you will see that its purpose is basically to find out what will happen if any of the key factors affecting a proposed new project will prove more negative than we would have assumed in our feasibility study). To finance such investments they may have made large commitments with financial institutions, possibly relying on the project’s expected cash flows to meet these commitments, both the interest payments and the repayment of principal, and suddenly find themselves unable to honour these commitments.
The Working Capital Cycle
The working capital cycle of a firm can be defined as the length of time between the acquisition of raw materials and other inputs, and the inflow of cash into the business from the sale of goods.
The cycle starts with investment in raw materials, which are then used in the production process and thereby become work in progress. Eventually, these become finished goods which are held in stock until sold. Some of these goods are sold for cash and others are sold on credit, with the customer paying (hopefully!) after a certain period. At each stage of the process, expenditure is necessary on labour and other operational inputs, which put pressure on the financial resources of the firm. However, just as we finance our debtors by allowing them some time between date of sale and date of payment, our suppliers who sell to us on credit also finance us to a certain extent (in the sense that if we had to pay them immediately we would need more cash resources).
Money tied up in any stage in the working capital chain has an opportunity cost. In addition, there are costs associated with storage (e.g. stock) and administration. The combined costs can be considerable, and it is the duty of the financial manager to arrange the affairs of the business in such a way as to obtain a balance between the costs and benefits involved: e.g. through raising or lowering stocks, cash, debtors and creditors to their optimum level, neither having too little nor too much. Amounts invested in working capital in large firms in Europe is about 80 per cent of the amount invested in fixed assets. The size and significance of this working capital investment means that the success of an organisation may depend heavily on the implementation of a wise working capital policy.
The Cash-Conversion Cycle
This focuses on the length of time between the firm’s payments on inputs (materials, labour, operational costs etc.) and the receipt of money from the sale of its products.
For manufacturing firms it is the average time that raw materials remain in stock, plus the time taken to produce the finished product, plus the length of time finished goods remain unsold (in stock), plus the time taken by debtors to pay, less the credit period allowed by the firm’s suppliers. You will understand that the shorter this cycle, the fewer resources the firm needs to tie up.
The following example illustrates how this cycle can be calculated from a set of

Credit: Fourth Generation Languages


Support translation:

Credit: Fourth Generation Languages

Mr Joseph Vella
Dept. of Computer Information Systems
Credit: Fourth Generation Languages
Assignment (15%)
Due Date: Morning of test

5th January, 2005

This is a group work assignment. Each group should be of three or two. Please advise lecturer if otherwise (by 15th January, 2005).
Work has to be original and one’s own and each member should contribute fairly.
As for length, I expect you to write a solid 5 to 8 pages essay (not including diagrams, graphs or program code and definitely one and a half spacing).
Clear English is imperative.
Use at least one journal reference (or a decent trade magazine) – the more recent the better.
You may be asked to make a short presentation.
Clearly this type of assignment requires attentive and resourceful searching and sifting.
Plan your essay and write what you plan!
You may want your tutor to advise once you have an outline (should not take more than a 15 minute chat!).

The large numbers of different computing platforms present within any organisation makes it mandatory to deploy an application program (even the most specialised ones) across a number of platforms. This (and some more) is software portability and it is a characteristic for software developers to strive for. Sometimes during the development cycle unproductive decisions (at least as regards software portability) have to be taken.

Clearly explain what is meant by software porting, its advantages and disadvantages, porting techniques and porting problems.
How can a 4GL tool set address this development facet (i.e., software portability)?
How, and to what extent does one, or two 4GLs, of your knowledge address software portability?
Can you present a case where the disadvantages of porting outweigh the advantages?

Finally, present a hypothetical project porting (e.g., from MS Windows to HTTP Browsers) and consequently evaluate the costs and savings involved.

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Appoġġ traduzzjoni:
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Kreditu: raba ‘ġenerazzjoni Lingwi

Joseph Vella
Dept tal Computer Information Systems
Kreditu: raba ‘ġenerazzjoni Lingwi
Assenjament (15%)
Data minħabba: Filgħodu tat-test

Jannar 5, 2005

Dan huwa assenjazzjoni ta ‘work group. Kull grupp għandu jkun ta ‘tlieta jew tnejn. Jekk jogħġbok parir lettur jekk ikun (mill Jan 15, 2005).
Xogħol għandu jkun oriġinali u oneâ € ™ s stess u kull membru għandu jikkontribwixxi b’mod ġust.
Fir-tul, nistenna li inti tikteb 5 sa 8 paġni solidu esej (mhux inklużi dijagrammi, graphs jew kodiċi tal-programm u definittivament wieħed u nofs ispazjar).
Ċar l-Ingliż huwa imperattiv.
Uża referenza ġurnal tal-anqas wieħed (jew magażin kummerċ deċenti) – il-aktar riċenti l-aħjar.
Inti tista ‘tintalab biex jagħmlu preżentazzjoni qasira.
Huwa ċar li dan it-tip ta ‘assenjazzjoni teħtieġ tiftix attenti u resourceful u tgħarbil.
Pjan essay tiegħek u jiktbu dak li qed tippjana!
Inti tista ‘tixtieq tutur tiegħek biex jagħti parir ladarba inti għandek skizz (m’għandhomx jieħdu aktar minn 15-il minuta chat!).

L-għadd kbir ta ‘pjattaformi kompjuters differenti preżenti fi kwalunkwe organizzazzjoni tagħmilha mandatorja li tuża l-programm ta’ applikazzjoni (anke dawk l-aktar speċjalizzati) fuq numru ta ‘pjattaformi. Din il (u ftit aktar) hija portabbiltà softwer u huwa karatteristiku għall-iżviluppaturi ta ‘softwer li jistinkaw għal. Kultant matul ċiklu ta ‘żvilupp tad-deċiżjonijiet produttivi (l-inqas bħala portabbiltà jirrigwarda softwer) għandhom jittieħdu.

B’mod ċar jispjegaw xi jfissru porting softwer, vantaġġi u żvantaġġi, tekniki portabbiltà u l-problemi portabbiltà.
Kif tista għodda 4GL stabbilit indirizz din l-aspett l-iżvilupp (jiġifieri, il-portabilità softwer)?
Kif, u sa liema punt ma wieħed, jew tnejn 4GLs, ta ‘għarfien portabilità tiegħek indirizz softwer?
inti tista ‘tippreżenta każ fejn l-iżvantaġġi tal-portabbiltà huma akbar mill-vantaġġi?

Fl-aħħarnett, tippreżenta portabbiltà proġett ipotetiku (eż, mill-MS Windows http Browsers) u konsegwentement tevalwa l-ispejjeż u l-iffrankar involuti.

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Ondersteuning vertaling:
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Krediet: vierde geslag Tale

Mnr Joseph Vella
Departement van Rekenaarinligtingstelsels
Krediet: vierde geslag Tale
Opdrag (15%)
Sperdatum: Morning van toets

5 Januarie 2005

Dit is ‘n groepwerkopdrag. Elke groep moet drie of twee wees. Please dosent getoon word indien anders (deur 15 Januarie 2005).
Werk het oorspronklike en oneâ € ™ s eie te wees en elke lid moet redelik bydra.
Soos vir lengte, ek verwag dat jy ‘n stewige 5 tot 8 bladsye opstel (nie insluitend diagramme, grafieke of programkode en beslis een en ‘n half spasiëring) skryf.
Duidelik Engels is noodsaaklik.
Gebruik ten minste een joernaal verwysing (of ‘n ordentlike handel tydskrif) – die meer onlangse hoe beter.
Jy kan gevra word om ‘n kort aanbieding te maak.
Dit is duidelik dat hierdie tipe opdrag vereis aandag en vindingryke soek en siftingsproses.
Beplan jou opstel en skryf wat jy van plan is!
Wil jy dalk jou mentor te adviseer wanneer jy ‘n oorsig (moet nie meer as 15 minute chat neem!).

Die groot getalle van verskillende rekenaar platforms teenwoordig binne enige organisasie maak dit verpligtend om ‘n aansoek program (selfs die mees gespesialiseerde kinders) oor ‘n aantal platforms sit. Dit (en ‘n paar meer) is sagteware port en dit is ‘n kenmerk vir sagteware-ontwikkelaars te streef. Soms tydens die ontwikkeling siklus onproduktiewe besluite (ten minste met betrekking tot sagteware port) geneem moet word.

Verduidelik wat bedoel word met sagteware porting, die voor- en nadele, porting tegnieke en porting probleme.
Hoe kan ‘n 4GL hulpmiddel stel posadres hierdie ontwikkeling faset (dit wil sê, sagteware port)?
Hoe, en tot watter mate ‘n mens, of twee 4GL’s, van jou kennis adres sagteware port?
Kan jy ‘n saak te stel waar die nadele van porting swaarder as die voordele?

Ten slotte, bied ‘n hipotetiese projek porting (bv uit MS Windows http Browsers) en gevolglik te evalueer die koste en spaar betrokke.

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përkthim Support:
————————————————– ————————————————– ————————————————–

Credit: katërt Generation Gjuhë

Mr Joseph Vella
Departamenti i Sistemeve të Informacionit Kompjuterike
Credit: katërt Generation Gjuhë
Caktimi (15%)
Due Date: Morning i testit

5 janar 2005

Kjo është një detyrë puna në grup. Çdo grup duhet të jetë tre ose dy. Ju lutemi të këshillojë pedagog në qoftë se ndryshe (nga 15 Janar 2005).
Puna duhet të jetë origjinale dhe oneâ € ™ s vet dhe çdo anëtar duhet të kontribuojë në mënyrë të drejtë.
Sa për gjatësi, unë pres që ju të shkruani një ese të ngurta 5 deri në 8 faqet (jo duke përfshirë diagramet, grafikët ose kodi i programit dhe patjetër një dhe një ndarje e gjysmë).
Clear English është e domosdoshme.
Përdorin të paktën një referencë ditar (apo një revistë të mirë të tregtisë) – më të fundit të mirë.
Ju mund të kërkohet për të bërë një prezantim të shkurtër.
Është e qartë se ky lloj i detyrës kërkon kërkim të vëmendshëm dhe të shkathët dhe duke kërkuar.
Planifikoni ese tuaj dhe shkruani se çfarë keni ndërmend!
Ju mund të dëshironi Tutori juaj të këshillojë një herë ju keni një skicë (nuk duhet të marrë më shumë se një bisedë 15 minuta!).

Credit: Introduction to Databases


Support translation:
Credit: Introduction to Databases
Mr Joseph Vella
Dept. of Computer Information Systems
Credit: Introduction to Databases
Assignment (15%)
Due Date: Morning of test

5th January, 2005


This is a group work assignment. Each group should be of three or two. Please advise lecturer if otherwise (by 15th January, 2005).
Work has to be original and one’s own and each member should contribute fairly.
Attempt all sections.

Section One: ERM mapping into Relational Database Model

Convert the following ERM into a set of relational tables. As a solution to this table give a list of CREATE TABLE SQL commands. One can also opt for a sequence of CREATE TABLE SQL commands to implement the tables together with a sequence of ALTER TABLE commands to implement the constraints (e.g. primary key, referential constraints).
Section Two: Relational Language – SQL (i)

Write a SQL statement for the following queries:

Output the names of employees whose salary is greater than (or equal) to 1000 and do not work in department 10.
Who are, where do they work, and how much do managers earn?
Give a list of employees (in pairs) that work in the same city. Note: employees SMITH & CLARK work in the same city but ensure we only report this once and not twice (i.e. CLARK & SMITH work in the same city should not be reported!).
Give a list of job titles and department locations. Note: output should be in a single column.
Is there an analyst whose manager is the President? Note: your query should return a YES or a NO.
In which locations do we have employees earning more than their manager?
Which clerk has the lowest salary amongst all clerks? Note: you are not to use an aggregate function in your query.
Which job type is found in each department? Note: given the current data and to make the query slightly more concise assume that department numbers in the emp table gives an adequate list of departments!

Section Three: Relational Languages – Algebra

Write a Relational Algebra expression (or a sequence of) to implement as many queries given in section two above as you can. Also state any reasonable assumptions made to write the queries.

Section Four: Relational Language – SQL (ii)

Write a SQL statement for the following queries:

What are the total employees earnings for department 30?
Which employees in department 30 earn more than the same department’s average?
List employee’s name, job and earnings in order of their job and earnings. Exclude the President.
What are the total earnings of employees by department and job title?
What are the total earnings of employees by department and job title given that there are at least two employees in a department?
Print a list of employees together with a qualitative description of their total earnings. Print ‘Low Earner’ if earnings are less than 1000. Print ‘Average Earner’ if earnings are less than 2000 (but more than 1000). Print ‘High Earner’ for employees earning more than 2000.

Section Five: PL/SQL

i Write a procedure that would print a monthly based calendar. For example passing the procedure the year 2005, the month of January, and an indicator that weeks start with Mondays the procedure prints the following. (Your answer should include the source and a run – a SQL Plus session print will be fine).
ii Write a recursive function and call it in an SQL Select statement. (Your answer should include the source and a run – a SQL Plus session print will be fine).

iii Use cursors for this procedure. Retrieve all employees of a department. Print their name, job, and total earnings. After printing all employees print their number, average earnings and sum of earnings in terms of salary and commissions. If a department exists but has no employees then report so. On the other hand if a department reference does not exists than handle the error gracefully.

Note: State any assumptions – document your source code.

Appendix: Scott’s Schema

Please note the following two relation schemas and note that Emp’s deptno attribute is a foreign key to Dept’s primary key.

SQL> describe dept
——————————- ——– —-

SQL> describe emp
——————————- ——– —-

The following two queries give us the current state of the two tables:

SQL> select * from dept;

——— ————– ————-

SQL> select * from emp;

——— ———- ——— ——— ——— ——— ——— ———
7369 SMITHCLERK7902 17-DEC-8080020
7499 ALLENSALESMAN7698 20-FEB-81160030030
7521 WARDSALESMAN7698 22-FEB-81125050030
7566 JONESMANAGER7839 02-APR-81297520
7654 MARTINSALESMAN7698 28-SEP-811250140030
7698 BLAKEMANAGER7839 01-MAY-81285030
7782 CLARKMANAGER7839 09-JUN-81245010
7788 SCOTTANALYST7566 19-APR-87300020
7839 KINGPRESIDENT17-NOV-81500010
7844 TURNERSALESMAN7698 08-SEP-811500030
7876 ADAMSCLERK7788 23-MAY-87110020
7900 JAMESCLERK7698 03-DEC-8195030
7902 FORDANALYST7566 03-DEC-81300020
7934 MILLERCLERK7782 23-JAN-82130010

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Appoġġ traduzzjoni:
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Kreditu: Introduzzjoni għall Databases
Joseph Vella
Dept tal Computer Information Systems
Kreditu: Introduzzjoni għall Databases
Assenjament (15%)
Data minħabba: Filgħodu tat-test

Jannar 5, 2005


Dan huwa assenjazzjoni ta ‘work group. Kull grupp għandu jkun ta ‘tlieta jew tnejn. Jekk jogħġbok parir lettur jekk ikun (mill Jan 15, 2005).
Xogħol għandu jkun oriġinali u oneâ € ™ s stess u kull membru għandu jikkontribwixxi b’mod ġust.
Tentattiv taqsimiet kollha.

Sezzjoni waħda: immappjar ERM fis Relazzjonali Database Mudell

Ikkonverti l-ERM ġejja fi sett ta ‘tabelli relazzjonali. Bħala soluzzjoni għal din it-tabella tagħti lista ta JINħOLOQ jikkmanda SQL MEJDA. Wieħed jista ‘wkoll jagħżel għal sekwenza ta’ JINħOLOQ TABELLA SQL jikkmanda biex jimplimentaw il-tabelli flimkien ma ‘sekwenza ta’ ALTER TABELLA jikkmanda biex jimplimentaw il-limitazzjonijiet (pereżempju kodiċi primarju, restrizzjonijiet referenzjali).

Taqsima Tnejn: Lingwa Relazzjonali â € “”SQL (i)

Jikteb dikjarazzjoni SQL għall-mistoqsijiet li ġejjin:

Output l-ismijiet ta ‘impjegati li s-salarju huwa akbar minn (jew ugwali) għal 1000 u ma jaħdmux fid-dipartiment 10.
Min huma, fejn do jaħdmu, u kemm do maniġers jaqilgħu?
Agħti lista ta ‘impjegati (f’pari) li jaħdmu fl-istess belt. Nota: impjegati SMITH & CLARK jaħdmu fl-istess belt, iżda naraw biss jirrapportaw dan darba u mhux darbtejn (jiġifieri CLARK & SMITH jaħdmu fl-istess belt m’għandhiex tiġi rrappurtata!).
Agħti lista ta ‘titoli impjieg u l-postijiet dipartiment. Nota: l-output għandu jkun fil-kolonna wieħed.
Hemm analista li maniġer huwa l-President? Nota: mistoqsija tiegħek għandha tirritorna IVA jew LE.
F’liema postijiet għandna impjegati li jaqilgħu aktar minn kowċ tagħhom?
Li skrivan għandha l-paga aktar baxx fost l-iskrivani kollha? Nota: inti ma jużawx funzjoni aggregat fil-mistoqsija tiegħek.
Liema tip tax-xogħol jinstab f’kull dipartiment? Nota: minħabba d-dejta attwali u biex jagħmlu l-mistoqsija ftit aktar konċiż wieħed jassumi li n-numri dipartiment fit-tabella emp tagħti lista adegwat ta ‘dipartimenti!

Section 1


Support translation:
Section 1
CREATE database winery; CREATE SCHEMA autho DB CREATE table drinker
varchar(40) NOT NULL,
CREATE table wine

varchar(20) NOT NULL,
varchar(20) NOT NULL,
date NOT NULL,

CREATE table drinks
(Dr_Date Date NOT NULL,
Dr_Quantity Smallint, NOT NULL;
CREATE table Producer
(P_name varchar(40) NOT NULL, P_region varchar(20), P_country varchar(30);
Section 2
Question 1:
SQL> select ename
2 from emp
3 where sal >= ‘1000’ AND not deptno = ’10’;

Question 2:
SQL> select ename, job, sal
2 from emp
3 where job = ‘MANAGER’;

Question 3:

Question 4:
SQL> select distinct job
2 from emp union
3 select distinct loc from dept;

Question 5:
SQL> select decode (count(*),0, ‘NO’,’YES’) from EMP 2 where job = ‘Analyst’ AND mgr = (select empno from emp 3 where job = ‘President’);

Question 6:
SQL> select distinct loc 2 from dept, emp emp1 3 where emp1.sal > (select sal 4 from emp emp2 5 where emp2.empno = emp1.mgr) 6 and emp1.deptno = dept.deptno;

Question 7:
SQL> SELECT ename, sal, job from EMP 2 WHERE job=’CLERK’ AND sal< =All(select sal from EMP 3 where job=’CLERK’);

Question 8:
SQL> select deptno, job from emp 2 group by deptno, job;

Section 3:

Question 1
Result1 Å ơ sal >= 1000(emp) Result2 Å ơ deptno = 10(Result1) Result3 Å ơ Empnames – Result2 Result Å ơπ Ename(Result3)

Question 2
Result1 Å ợ Job – ‘manager’ (Emp)
Result2 Å ợ loc (dept ∞ Result1)
Result Å π Ename, sal (Emp ∞ Result2)

Questions 4, 5, 8 not possible to compute
Question 7
Result1 Å job ‘CLERK’ (Emp) Result2 Å ơ sal (Result1)
Section 4:

Question A:
SQL> select sum(sal)
2 from emp
3 where deptno = ’30’;

Question B:
SQL> select ename, sal from emp 2 where (select avg(sal) from emp) < deptno =”” ’30’;””>
BLAKE 2850

Question C:
SQL> select ename, job, sal from emp
2 where not job = ‘president’
3 order by job asc, sal desc, ename asc;
Question D:
Question E:
Question F:
SQL> select ename, sal,
2 case
3 when sal < ‘1000’ then ‘low earner’
4 when sal < ‘2000’ and sal > ‘1000’ then ‘average earner’
5 when sal > ‘2000’ then ‘high earner’
6 end
7 from emp;

SMITH 800 low earner ALLEN 1600 average earner WARD 1250 average earner JONES 2975 high earner MARTIN 1250 average earner BLAKE 2850 high earner CLARK 2450 high earner SCOTT 3000 high earner KING 5000 high earner TURNER 1500 average earner ADAMS 1100 average earner
JAMES 950 low earner FORD 3000 high earner MILLER 1300 average earner
Section 5

Question 1
Algorithm: User enters year and month.
Deduct 1/month/year from 24/1/2005 by:

Total days = 0.
Deducting the year column. If the result is not zero, add the result*365 to
total days.
Deducting the month column. If the result is not zero, add result*31 to total
Deducting the day column. If the result is not zero, add days to total days.


Increment given date by 1 day until given date = needed date.

When day exceeded days in month, increment months.
Total days is incremented with each increment to the day.

Total days mod 7 will give a number from 0 to 6. zero = Monday, one = Tuesday, two = Wednesday, three = Thursday, four = Friday, five = Saturday, six = Sunday.
Once the day of the 1st of the required month and year is known, a loop is used to plot the rest.
Write (“mon, tue, wed …)
Loop from 1 to (days in month)
Move required number of spaces.
Display day number.

End loop.
If month = feb then check for leap years:
select year, decode( mod(year, 4), 0, decode( mod(year, 400), 0, ‘Leap Year’, decode( mod(year, 100), 0, ‘Not a Leap Year’, ‘Leap Year’) ), ‘Not a Leap Year’
) as leap_year_indicator frommy_table /
Month number;
Year number;
Day number;
Total_day number:=0
Given_day number :=1;

Given_month number := 2;
Given_year number :=2005;
Start_from number:=0;
Weekdays string := “Mon Tue Wed Thu Fri Sat Sun”;
Space string:= “ “;
Displace number:=0;
Current_day number:=1;

Create Procedure Calender (month in number, year in number)
Begin Set serveroutput on Total_days:=total_days+ 365*(year-given_year); Total days:=total_days+31*(month-given_month); Total days:=total_days+(day-given_day); Start_from:= total_days mod 7; Displace:=start_from; Print weekdays; For loop in 1 .. 31 loop
For loop2 in 1 .. displace loop
Write space; End loop2; Write current_day; Current_day:= current_day+1; Displace:=displace+1; If displace mod 7 = 0 then displace:= 0;
End loop;

Question 2
— Part 5 no 2
create or replace FUNCTION fact (i IN number) RETURN number IS n number; BEGIN
n := i;
IF n = 1 THEN — termination
RETURN n * fact(n – 1); — recursion

END fact; /
select distinct fact(deptno) from emp EXECUTE DBMS_OUTPUT.PUT_LINE(TO_CHAR(fact(10)));
Question 3
— Part 5 no 3

DECLARE temp_name emp.ename%type; temp_job emp.job%type; temp_sal
emp.sal%type; temp_comm emp.comm%type;
temp_deptno emp.deptno%type;

— declare explicit cursor


— attributes are selected

SELECT emp.deptno, sum(emp.sal+nvl(emp.comm,0))
FROM emp, dept
WHERE emp.deptno = dept.deptno
GROUP BYE emp.deptno;

— Open cursor if not yet open

— get the first record in the active set and paste it into current

4GLs DBMS Data Dictionary


Support translation:

4GLs DBMS Data Dictionary
Data Dictionaries
Are an integral part of a DBMS, but because of its importance it deserves a study of its own!
Data dictionaries store information about the database structure, integrity constraints, user profiles,…
Data Dictionaries Usage (a)
Documentation of data and their
Standardisation of definitions;

Control of

Change – impact analysis, to investigate the
effect of proposed changes;
Synonyms – giving two or more names for
the same database item;
Redundancy – multiple copies of same data;
Data Dictionaries Usage (b)
Aid to analysis and design;
Generation of meta data for DBMS and 4GLs;
Provision for auditing information / assistance
Aid to all users For example DBA, System Analyst, Programmers, end users

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Appoġġ traduzzjoni:
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4GLs DBMS Data Dictionary
Dejta Dizzjunarji
Huma parti integrali ta ‘DBMS, iżda minħabba l-importanza tagħha hija jistħoqqilha studju tagħha stess!
dizzjunarji tad-dejta jaħżnu informazzjoni dwar l-istruttura tad-database, restrizzjonijiet integrità, profili utent, â € |
Dejta Dizzjunarji Usage (a)
Dokumentazzjoni ta ‘data u tagħhom
L-istandardizzazzjoni ta ‘definizzjonijiet;

Kontroll ta ‘

Bidla â € “”Analiżi tal-impatt, biex tinvestiga l-
effett tal-bidliet proposti;
Sinonimi â € “”li jagħtu tnejn jew aktar ismijiet għall
l-istess oġġett dejtabejż;
Redundancy â € “”kopji multipli ta ‘istess data;
Użu tad-Data Dizzjunarji (b)
Għajnuna għall-analiżi u d-disinn;
Ġenerazzjoni ta ‘metadata għall DBMS u 4GLs;
Dispożizzjoni għal verifika ta ‘informazzjoni / assistenza
Għajnuna lill-utenti kollha Per eżempju DBA, Analyst Sistema, programmaturi, l-utenti aħħarin

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Ondersteuning vertaling:
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4GL’s DBMS Data woordeboek
data Woordeboeke
Is ‘n integrale deel van ‘n DBBS, maar as gevolg van die belangrikheid daarvan wat dit verdien ‘n studie van sy eie!
Data woordeboeke winkel inligting oor die databasis struktuur, integriteit beperkings, gebruikers profiles, â € |
Data Woordeboeke Gebruik (a)
Dokumentasie van data en hul
Standaardisering van definisies;

beheer van

Verander â € “”impak analise, om die ondersoek
effek van die voorgestelde wysigings;
Sinonieme â € “”gee twee of meer name vir
dieselfde databasis item;
Ontslag â € “”veelvuldige kopieë van dieselfde data;
Data Woordeboeke Gebruik (b)
Steun aan analise en ontwerp;
Generasie van meta data vir DBBS en 4GL’s;
Voorsiening vir ouditering inligting / hulp
Hulp aan alle gebruikers Byvoorbeeld DBA, stelselanalis, programmeerders, eindgebruikers

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përkthim Support:
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4GLs DBMS Data Fjalor
Data Fjalorë
Janë një pjesë integrale e një DBMS, por për shkak të rëndësisë së saj ajo meriton një studim të vetin!
E të dhënave fjalorë ruajtur informacione në lidhje me strukturën e bazës së të dhënave, kufizimet integritetit, profilet e përdoruesve, â € |
Data Fjalorë Usage (a)
Dokumentimi i të dhënave dhe të tyre
Standardizimi i përkufizimeve;

Kontrolli i

Ndrysho â € “”analizën e ndikimit, të hetojë
Efekti i ndryshimeve të propozuara;
Sinonimet â € “”duke i dhënë dy ose më shumë emra për
njëjti artikull baza e të dhënave;
Tepricë â € “”kopje të shumta të njëjtën të dhënave;
Data Fjalorë Usage (b)
Ndihma për analiza dhe dizajn;
Gjenerimi i të dhënave të meta për DBMS dhe 4GLs;
Dispozitë për auditimit informacionit / asistencës
Ndihma për të gjithë përdoruesit për shembull DBA, Analist Sistemit, Programer, përdoruesit përfundimtarë

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ድጋፍ ትርጉም:
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4GLs DBMS ውሂብ መዝገበ
የውሂብ መዝገበ ቃላት
አንድ DBMS ዓይነተኛ ክፍል ናቸው, ነገር ግን ጠቀሜታ ምክንያቱም የራሱ የሆነ ጥናት ይገባዋል!
€ â ዳታቤዙ መዋቅር, የአቋም ዕጥረት, የተጠቃሚ መገለጫዎች, ውሂብ መዝገበ መደብር መረጃ |
የውሂብ መዝገበ ቃላት አጠቃቀም (ሀ)
ውሂብ እና ሰነድ ያላቸው
ብዙ ትርጉሞች Standardisation;


ወደ ለመመርመር አንድ ተፅዕኖ ትንተና “”€ ይቀይሩ
የታቀደው ለውጥ ውጤት;
ሁለት ወይም ከዚያ በላይ የሆኑ ስሞችን መስጠት € â ተመሳስሎ “”
ተመሳሳይ ጎታ ንጥል;
ተመሳሳይ ውሂብ € “”በርካታ ቅጂዎች â ያላገኘና;
የውሂብ መዝገበ ቃላት አጠቃቀም (ለ)
ትንተና እና ዲዛይን ለማድረግ ይርዱ;
DBMS እና 4GLs ለ ዲበ ውሂብ ትውልድ;
ለኦዲት መረጃ / E ገዛ ለማግኘት ዝግጅት
ለምሳሌ dBA, የስርዓት ተንታኝ, የኢንተርኔት ፕሮግራም, ዋና ተጠቃሚዎች ለሁሉም ተጠቃሚዎች እርዳታ

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ترجمة الدعم:
————————————————– ————————————————– ————————————————–

4GLs نظم إدارة قواعد البيانات قاموس البيانات
قواميس البيانات
هي جزء لا يتجزأ من نظم إدارة قواعد البيانات، ولكن نظرا لأهميته التي يستحقها دراسة من تلقاء نفسها!
قواميس البيانات وتخزين المعلومات حول بنية قاعدة البيانات، والقيود النزاهة والتشكيلات الجانبية للمستخدم، â € |
قواميس بيانات الاستخدام (أ)
توثيق البيانات والخاصة
التقييس التعاريف؛

تحكم ب

تغيير â € “”تحليل الأثر، للتحقيق في
تأثير التغييرات المقترحة؛
مرادفات â € “”إعطاء اثنين أو أكثر من أسماء ل
البند نفسه قاعدة البيانات؛
التكرار â € “”عدة نسخ من البيانات نفسها؛
قواميس بيانات الاستخدام (ب)
مساعدة في تحليل وتصميم.
جيل من بيانات التعريف لنظم إدارة قواعد البيانات و4GLs.
توفير الدعم اللازم للمراجعة المعلومات / المساعدة
المساعدات لجميع المستخدمين على سبيل المثال DBA، محلل نظم، المبرمجين والمستخدمين النهائيين

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Support թարգմանությունը:
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4GLs ՏԲԿՀ Data Բառարան
Data Բառարաններ
Անբաժանելի մասն են կազմում մի DBMS, բայց քանի որ դրա կարեւորության, այն արժանի է ուսումնասիրություն սեփական!
Data բառարաններ խանութ տեղեկություն տվյալների բազայի կառուցվածքը, ազնվության սղության, անձնագիրը պրոֆիլների, մի € |
Data Բառարաններ Օգտագործում (ա)
Փաստաթղթավորումը տվյալների եւ դրանց
Ստանդարտացում սահմանումների,


Փոխեք â € “”ազդեցության վերլուծության, հետաքննել այդ
ազդեցությունը առաջարկվող փոփոխությունների.
Հոմանիշներ â € “”տալով երկու կամ ավելի անուններ
նույնն է տվյալների բազա նյութը;
Redundancy â € “”բազմացրել Նույն տվյալների.
Data Բառարաններ Օգտագործում (բ)
Օգնություն է վերլուծության եւ նախագծման;
Սերունդ meta տվյալների DBMS եւ 4GLs.
Դրույթ աուդիտի տեղեկատվական / օժանդակության
Aid բոլոր օգտագործողների համար, օրինակ DBA, համակարգ վերլուծաբան, ծրագրավորողների, վերջնական օգտագործողների համար

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Support tərcümə:
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4GLs DBMS Data Dictionary
Data Lüğətlər
bir DBMS ayrılmaz hissəsidir, lakin onun əhəmiyyəti, çünki onun öz bir iş layiqdir!
€ â bazası strukturu, bütövlüyü məhdudiyyətlər, istifadəçi profilleri haqqında Data lüğətlər mağaza məlumat |
Data Lüğətlər istifadə (a)
məlumatların və Documentation onların
anlayışlar Standartlaşdırma;


araşdırmaq, bir təsir analizi “”€ Change
Təklif olunan dəyişikliklərin təsiri;
iki və ya daha çox adları verilməsi € â Sinonimlər “”
Eyni bazası maddə;
Eyni data € “”çox nüsxə â Redundancy;
Data Lüğətlər istifadə (b)
təhlili və dizayn yardım;
VBİS və 4GLs üçün meta data Generation;
audit məlumat / yardım üçün ehtiyat
misal DBA, System Analyst, proqramçılar, son istifadəçilər üçün bütün istifadəçilər üçün yardım

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Data Normalisation


Support translation:

Data Normalisation
Relational Databases: Normalisation
The obese is…in total delirium. For he is not only large, of a Size opposed to normal morphology: he is larger than large. He no Longer makes sense in some distinctive opposition, but in his Excess, his redundancy.
Jean Baudrillard (b.1929),
French semiologist (the science that deals with signs or sign language_.
Fatal Strategies, “Figures of the Transpolitical” (1983)

Normality highly values its normal man. It educates children to Lose themselves and to become absurd, and thus to be normal. Normal men have killed perhaps 100,000,000 of their fellow Normal men in the last fifty years.
R.D. Laing (1927-89),
British psychiatrist.
The Politics of Experience (1967)

Data Normalisation
A dictionary definition:
Is the process of restructuring An application’s data model by Reducing its relations to their Simplest form.
But – what is the simplest form …
Database Design Pitfalls: 1 – Semantics of Attributes
Each tuple instance represents a fact
Aside: tuples will have to represent the E-R Model’s Entities, weak entities and relationships.
The fact’s meaning (semantics) is, at least partially, Expressed through the instance’s attributes values.
The values that an instance can take must satisfy the Attribute’s domain declaration.
Also it is realistic to pretend that not any possible Combination of values is a possible instance.
Database Design Pitfalls: 1 – Semantics of Attributes (cont)
For example:
The Emp_Dept and Emp_Proj tables have the following Relation schemas:








Database Design Pitfalls: 1 – Semantics of Attributes (cont)
(Ename SSN Bdate Address Dnumber Dname Dmgrssn)
Conclusion 1
Do not overload a relation Schema with attributes from More than one entity or Relationship (a la ER Model).
This is not necessary a good Decomposition!? BUT…
Emp (Ename SSN Bdate Address)
(Dnumber Dname Dmgrssn)
(SSN Dnumber)
Database Design Pitfalls: 2 – Addressing Redundancy
Why do we need to reduce a table into its Simplest form?
To minimize space – two table instances always Take less space than their natural join!
To avoid transitional ambiguities and extent Inconsistency!
There are three main update anomalies:
Insertion Updating Deletion
2 – Minimize Insert Anomalies
Relation Schema Emp_Dept (Ename SSN Bdate Address Dnumber Dname Dmgrssn)
Insertion of tuples
We need to supplement the Department’s details for each new Employee.
This is laborious and prone to
If the Accounts department’s name String is ‘ACCOUNTS’ then ‘Acc.s’ pr ‘Book-keeping & accs’ will not do!?
We cannot introduce a new Department that has no employees Attached to it.
Because the p.k. of Emp_dept is SSN and therefore SSN cannot be Null.
2 – Minimize Update Anomalies
Relation Schema Emp_Dept
(Ename SSN Bdate Address Dnumber Dname Dmgrssn)
A change to a single entity instance triggers Changes to a number of tuples rather than to One tuple.
For example, assume we have a number of Employees working with our accounts Department (Dname = ‘ACCOUNTS’) and Were managed by Fantozzi (Dmgrssn = 17) Who has now been replaced by Bean (Dmgrssn = 13).
To reflect this change we must seek all Tuples that have a matching Dname and set The Dmgrssn attribute to the new value.
2 – Minimize Delete Anomalies
(Ename SSN Bdate Address Dnumber Dname Dmgrssn)
Purging the last employee associated to a Department would purge the department’s Details too.
For example, say we have a department Of fruit pickers that are employed on Seasonal basis. When all these tuples, that represent Fruit pickers, are purged so are, Effectively, details on the department That is still relevant – such as who Manages this department (albeit Temporally dormant!).
2 – Minimize Redundancy
Conclusion 2
Try to avoid relation Schemas with insert, Update and delete anomalies
(Ename SSN Bdate Address Dnumber Dname Dmgrssn
(SSN Dnumber)
(SSN Pnumber Hours Ename Pname Plocation)
(SSN Pnumber Hours )
Database Design Pitfalls: 3 – Careful handling of null
The problems with null as an attribute’s value include:
Might be a waste of space;
Obscures the attribute’s semantics;
If an attribute is participating in a logical join then one must Ascertain that the result is what is expected;
Find an example…
If an attribute is participating in an aggregate function then one Must take care for the inclusion, or exclusions, of the tuples with Null;
Find an example…
Semantics of null are overloaded
Conclusion 3
Avoid, as much as possible, introducing attributes in a relation Schema that can take a null value.
Functional Dependencies (i): Definitions
A functional dependency (fd) is a constraint on a
Relation schema R(A1, A2, …, AN) of the form X –
Y, where X and Y are subsets of {A1, A2, …,
AN}, which guarantees that for every instance r of
Relation R, a value of X uniquely determines a
Value of Y.

Fds are properties of the application domain
Schema and not of its instances.

One proper instance can disprove an fd.
Only the meaning of the application domain can Establish whether an apparent fd is really valid!
If X, in X -> Y for relation schema R, is a Candidate key, then Y is any subset of R.
A, B, C are a candidate key for R and Therefore A, B, C -> F.
Fds are generally non-commutative.
A -> F does not imply F -> A.
Functional Dependencies (ii): Inferring new FDs
Use the obvious fds to obtain The set of all fds (their closure).
(Ename SSN Bdate Address Dnumber Dname Dmgrssn)
Obvious fds are:
F = {
SSN ->
(Ename, Bdate, Add, Dnumber},

Dnumber ->
{ Dname, Dmgrssn} }

The other fds {by inference are:
SSN -> {Dname,
SSN -> {SSN},
Dnumber -> {Dname}.

A formal inference rule system (due to Armstrong) can compute the closure of a set of fds. What follows is a simplified Version applicable for elementary Fds (for X -> Y, Y is a singleton set And X does not include Y) – this Suffices for schema design.
Pseudo-transitivity inference rule:
If X -> Y and WY -> Z, Then WX -> Z.
Data Normalisation Rules
The Normalisation procedure was proposed by Codd to Qualify each relation schema.
Three such tests were introduced – called the first, second And third normal forms.
The third was reinforced by Boyce and Codd and later on other Normal forms were introduced. These were yet stronger than The augmented third.
A relation that is in the second normal form is in the first But the converse is false! And so on…
This normalisation procedure uses candidate keys and Functional dependencies.
Normalisation takes in a relation and during its process Creates simpler (smaller) relations that obey a stronger Normal forms than their progeny.
First Normal Form
First Normal Form (1NF)
A relation schema is in 1NF if the attribute’s values of all domains Are atomic.
Part (P Col-set) 1 {Metal} 2 {Blue, Red} 3 {Indigo}
Part-1nf (P Colour) 1 Metal 2 Blue 2 Red 3 Indigo
Second Normal Form (i)
A relation schema attribute is non prime when it
Does not participate in a key attribute set (primary
Or candidate).