UK Telecommunications Management of Interest Rates

UK Telecommunications Management of Interest Rates INTRODUCTION In business world today many companies are faced with the increase in volatility of financial markets which has lead to increase in financial price risk. Many companies are faced with exposure to financial risk which are caused by unanticipated exchange rate and interest rate movements. These unanticipated movement in exchange rate which is caused by international competition can results into large gain or loss if the risk is not managed properly. Exchange rate movement generate business risks which can vary the current foreign assets and liabilities and interest rate movement can have indirect impact on companys value on its future cash flows. Domestic and multinational companies who are faced with these kind of risks must assure that they control these risks otherwise if they are unmanaged then this can result into total failure of business. Financial Institutions have introduced different products to help companies in risk management. These products are Forward contracts on exchange rate, Futures contracts, Interest rate swaps and Options. Forward contract being the oldest product to be introduced to manage both foreign exchange and interest rate risks. 1.1 Problem statement Changes in business environment and increase in movement of interest rate and exchange rate has resulted into rise in financial risk exposure. These movements can affect not only companys profit but also companys survival in indirect way. Financial risks management has turn to be a significant area of pertain for UK corporations. Therefore this proposal attempt to find out how UK Telecommunications industry handle financial risks in an increasing business risk environment. Research aim and objectives Aim The main aim of the study is to determine how firms in UK Telecommunications industry manage interest rate and foreign exchange financial risks by looking into use of derivatives. 1.3 Research Objectives The primary objectives of the research will be; To determine how companies manage risk To determine whether derivatives are used or not To determine which derivatives are used and for what purpose Disclosure of financial instruments 1.4 Research Questions The following research questions will guide this research How companies manage risk? Are derivatives used or not used? Which derivatives are used and for what purpose? What are the disclosure of financial instruments? 2. LITERATURE REVIEW Derivatives are financial instruments whose values are deduced from some underlying assets or rate/price. Derivatives are now of paramount importance to the business world, with imaginary value of more than $200 trillion of these derivatives are being traded on coordinated and over the counter markets in 2004 (Bank for International Settlements, 2004). The financial products which are provided by FinanciaI Institution are options, futures contract, forward contract and interest rate swap. The common Interest rate derivative is Interest rate swaps and others are future contracts and interest rate options while for foreign exchange derivatives are forwards contracts, currency swaps, foreign exchange futures and options. Forward contract gives the owner the obligation to buy an asset at set price and maturity date as agreed in the contract. Future as like forward but in futures are public traded while forwards are private contracts. Unlike future and forward, options give the owner the right but not obligation to buy or sell an asset at a fixed price on or before specified date (Prevost et al, 2000). Derivatives are used to cut down cash flows and earnings volatility caused by changes in foreign currency exchange rates, commodity prices, interest rates and other risk factors (Barton J, 2000). Use of financial derivatives is widespread, especially among large publicly traded companies and is still increasing sharply. For example, in a study done by Guay and Kothari, (2003) based on annual reports information of 413 largest firms in the U.S revealed that 57% were using derivatives. In another study of 314 Fortune 500 firms showed that 72% were using derivatives (Barton J, 2001). Mallin et al. (2001) did survey analysis on the use of derivatives in risk management, he mailed questionnaire to 800 UK non financial firms listed on London stock exchange. Results showed that of 231 respondents 32% were applying at least one derivative instrument. Another researchers Bodnar et al (2003) studied derivative usage in managing risk to 167 non-financial Netherlands firms and revealed 84 usable responses which is 50.3%. In India a study was conducted to examine derivatives usage in managing foreign exchange risk to 640 companies which were faced with foreign exchange exposure and results showed that 70.4% of respondents used foreign exchange derivatives to manage risk (Anand and Kaushik 2007). Whilst many firms use derivatives in managing risk, misuse of it may result into major losses. This was proved by Karpinsky (1998) who revealed companies like Sumitomo Corporation lost $3,500 million in 1996 because of copper future. On the other hand El-Masry (2003) collected data from questionnaire mailed to 401 non financial companies listed on London stock exchange, 50% of respondents did not use derivatives because the risk exposure was not substational. Likewise suryey done by Bodnar et al (1995) revealed lower use of derivatives and the reason being low insignificant exposure. Regarding to mostly used derivatives to manage risk exposure, survey done by Marshall (1997) pointed that options, swaps and forwards were normally used to manage interest rate and foreign exchange risks. In El-Masry (2003) survey of UK non financial firms, results indicated that firms use options at 29.4%, forward/future at 23.7% and swaps 23.1%. 3.0. RESEARCH METHODOLOGY Research design This study will be conducted as a quantitative survey Sources of data The main source of data will be the annual reports of 10 companies in the UK telecommunications industry for the past three years. Documentary source Bell (1999) state documentary source involves the reading of relevant information from library source such as text books, journals, newspapers and internet. Secondary source will enable a researcher to conduct broad investigation and help confirm the reliability of the findings given that the findings may be subjective and this source will be used as well to cut down reliance on the annual reports as the main source of data used in the study. Sampling selection Selection of sample will be based on the public data information of the companies and the eligibility criteria will base on following factors; The company must be in the telecommunication services industry The company must be either a Domestic or a Multinational one which is exposed to financial risks as an outcome of international competition The company should be among of the listed London Stock Exchange companies Data analysis Data collected will be analysed using Statistical Package for Social Sciences (SPSS) and presented using frequency table. 4. CONCLUSION Measuring and managing financial risk exposure are crucial functions in cutting down companies vulnerabilities from major exchange and interest rate movements. Financial derivatives are very important in risk management of corporations 5. REFERENCE Anand m., Kaushik k. p., (2007).Management Motivations for Use of Foreign Currency Derivatives in India, IIML Working Paper Series. Bank for International Settlements. (2004). Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in 2004. http://www.bis.org/publ/rpfx05.htm. Barton, J. (2001). Does the Use of Financial Derivatives Affect Earnings Management Decisions? The Accounting Review, 76, 1-26. Bell, Judith. (1999). Doing your Research Project: A guide for first time researcher in Education: 3rd Edition Buckingham, Open University press.UK Bodnar g. m., de jong a., macrae v., (2003). The impact of Institutional Differences on Derivatives Usage: a Comparative Study of US and Dutch Firmsà ¢Ã¢â€š ¬?, European Financial Management vol. 9, No. 3, pp. 271-297. El-masry a.,(2003) A survey of derivatives use by UK non financial companies, Social science research network Manchester Business School pg.455. Grant, K. and Marshall, A. P. (1997), à ¢Ã¢â€š ¬Ã…“Large UK companies and derivativesà ¢Ã¢â€š ¬?, European Financial Management, vol. 3 no. 2, pp. 191-208. Guay W Kothari, S. P. (2003). How Much Do Firms Hedge with Derivatives? Journal of Financial Economics, 70, 423-461. Hentschel, L., Kothari, S. P. (2001). Are Corporations Reducing or Taking Risks with Derivatives. Journal of Financial and Quantitative Analysis, 36, 93-118. Mallin c.; Ow-yong k. and Reynolds m.,(2001) Derivatives usage in UK non-financial listed companies, The European Journal of Finance Vol. 7 (2001), pp. 63-91. Saunders, M., Lewis, P. Thornhill, A. (2007). Research Methods for Business Students. 4th Edition. Pearson Education Limited UK. Prevost, A. K., Rose, L. C., Miller, G. (2000). Derivatives Usage and Financial Risk Management in Large and Small Economies: A Comparative Analysis. Journal of Business Finance and Accounting, 27, 733-759.

Communications Persuasive Essay Essay

Specific purpose: I would like to persuade my audience that drug test screenings should be mandatory in order for welfare recipients to receive their money. Introduction Attention material: How many if you have jobs? How many if the people with jobs like to see a huge chunk of their check MIA due to state and federal taxes? And how many of you like knowing that that chuck of your check that’s missing could very well be going towards someone’s drug addiction? Thesis Statement: By enforcing a mandatory drug test to all welfare recipients, you ensure that hard working people’s tax dollars are being used the correct ways, and not being used to support a drug addiction, Preview: Today I will inform you on the pros of drug testing welfare recipients, how many states have already passed this law, how many states are trying to pass the law, the cons of the drug testing, and what we can do to out this plan into action. Body I. What benefits would drug testing welfare recipients have on our country? A. David Vitter of U.S. News Weekly states, by drug testing welfare recipients, it would ensure that all hardworking taxpayers’ money I’d going to get used in the correct and intended way. The nation is already in enough debt of more than $14 trillion, does it make much sense to be wasting tax money on illegal drugs and dishonest welfare recipients? That makes no sense at all! (Vitter, 2011) B. Enforcing drugs testing will also force drug users or addicts that are looking for financial assistance to get help before receiving money that would have been used to feed their ongoing addiction (Vitter, 2011) By coming up with a plan to make drug user go to rehabilitation centers and treating their addiction before they receive financial assistance from the government will cause people to either get better first, or not have the opportunity to take the tax money and waste it on illegal drugs anyway. ll. Where in the United States has this law been implemented? A. Many states have tried very hard to get the drug testing law put into place and used effectively but not all have succeeded. In fact only 7 of the 29 that have proposed the law have had it passed in their state. The states that have the law include Florida, Utah, Michigan, Tennessee, Arizona, Missouri, and Oklahoma. Many of the states that have Mercado 3 tried to get this law into effect include North Dakota, Arkansas, New Hampshire, Texas, Kansas, Maine, Wyoming, and Virginia (National, 2013) III. What are the possible cons to drug testing welfare recipients? A. Two Michigan mothers, both on welfare argue that the drug testing law in effect in their state is it if constitutional grounds. Tanya Marchwinski, one of these mothers states, â€Å"Just because we are lower income we are singled out. Makes me feel like I’m doing something wrong and I’m constantly being watched.† (Cannon, 1999) B. Many states that have tried passing the drug testing law have failed because it is deemed unconstitutional. Due to the simple fact that the state representatives cannot assume all welfare applicants or recipients are drug users or addicts. Being able to pass these laws would take the conditions being changed to drug testing only taking place if state representatives suspect drug use in a welfare applicant or recipient. IV. A proposal on welfare reform A. Domenick Basolo the president of Good for Society, proposes a structure somewhat like the â€Å"Three-Strikes Law† Strike 1- Failing the given drug test when applying for welfare follows in providing written documentation for agreeing to signing up for a rehabilitation program. Strike 2- Must submit random drug screening, and provide proof once a week to attending rehabilitation programs. Strike 3- YOU’RE OUT! The failure to adhere to the following conditions and opportunities given will result in loss of funds to recipient, and possible household search to rule in or out of potential child negligence (Basolo, 2013). Conclusion A. There are many opinions on the welfare reform and whether or not to require applicants and recipients for submit a drug test and pass the drug test to relieve funds. However not all ideas or opinions would be acceptable in this country, because most ideas are deemed unconstitutional. Nevertheless, it is very evident a reform in welfare is much needed. It’s just now about finding an acceptable way to reform it without creating controversy. Personally, as a hard working tax payer, I would like to know my tax dollars are going to the right things they’re intended for, not just to support a drug addict and at the same time neglect innocent children’s needs for daily life items.

Definition and Examples of Formal Prose Style

In composition, formal style is a broad term for speech or writing marked by an impersonal, objective, and precise use of language. A formal prose style is typically used in orations, scholarly books and articles, technical reports, research papers, and legal documents. Contrast with informal style  and colloquial style. In The Rhetorical Act (2015), Karlyn Kohrs Campbell et al. observe that formal prose is strictly  grammatical  and uses complex sentence structure and precise, often technical  vocabulary. Informal prose is  less strictly grammatical and uses short, simple sentences and ordinary, familiar words. Observations Whenever we speak or write, we make certain assumptions about what kind of language is appropriate to the situation at hand. Basically, this amounts to deciding how formal or informal to be. Rhetorical style ranges from the formality of a presidential address or scholarly article on the one hand to the informality of a radio or TV interview or a conversation—perhaps even a text or twitter message—with a friend on the other. Generally speaking, as style becomes more informal, it becomes more conversational or colloquial.(Karlyn Kohrs Campbell, Susan Schultz Huxman, and Thomas A. Burkholder, The Rhetorical Act: Thinking, Speaking and Writing Critically, 5th ed. Cengage, 2015)Formal and Informal StylesToday rhetoricians speak of formal and informal styles. The former is characterized by more advanced vocabulary, longer, more complex sentences, use of one instead of you, and is appropriate for more formal occasions such as lectures, scholarly papers, or ceremonial addresses . The informal style has feature such as contractions, the use of the first and second person pronouns I and you, simpler vocabulary, and shorter sentences. It is appropriate for informal essays and certain kinds of letters.(Winifred Bryan Horner, Rhetoric in the Classical Tradition. St. Martins, 1988)The tone is polite, but impersonal. The pronoun you isnt usually appropriate in formal writing.The language of formal writing doesnt include contractions, slang, or humor. It is often technical. In an attempt to avoid pronouns like I, you, and me, some writers overuse the passive voice, which makes their writing stuffy and indirect.Sentence structure includes lengthy sentences with complex subordination, long verb phrases, and the expletive pronouns it and there for subjects. Since the information content of formal, technical, or legal documents is high, both readers and writers expect the reading pace to be slower than in informal writing.Characteristics of a Formal Style- Formal styl e is characterized by long and complex sentences, a scholarly vocabulary, and a consistently serious tone. Grammatical rules are scrupulously observed, and the subject matter is substantial. The selection may include references to literary works or allusions to historical and classical figures. Absent are contractions, colloquial expressions, and an identified speaker, with impersonal one or the reader frequently used as the subject.(Fred Obrecht, Minimum Essentials of English, 2nd ed. Barrons, 1999)- These are some typical characteristics of formal style: Formal style is appropriate for official documents, computer documentation, scholarly articles and books, technical reports, or letters with a negative message.(Deborah Dumaine. Instant-Answer Guide to Business Writing. Writers Club Press, 2003)

Debris Clouds Visual Cues of a Tornado Touchdown

A  debris cloud forms when the wind speeds of a tornado pick up very heavy objects and swirl them around in a dense cloud around the base or the funnel cloud itself. One of the most dangerous parts of a  tornado  can be its debris cloud.   In fact, items such as trucks, tractors, cars, animals, and people can be swirled around in a debris cloud. Not all tornadoes produce heavy debris clouds and not all tornadoes have enough sustained winds to pull up large objects. Therefore, the primary component of most debris clouds is dust and small bits of debris. Debris Formation A tornados debris cloud actually starts to form even before the funnel descends from the thunderstorm cloud downward to the ground. As the funnel descends, dust and loose objects on the area directly underneath it at the Earths surface will begin rotating and may even lift several feet off of the ground and swing out hundreds of yards wide in response to the air movement above. After the funnel touches the ground and becomes a tornado,  the debris cloud travels along with the storm.   As the tornado travels along its path, its winds continue to carry nearby objects airborne. The size of the objects within  its debris cloud depend on the strength of the tornados winds. Usually, however, the debris cloud whirls around smaller objects and dirt particles while the funnel cloud carries larger debris pieces. This is why the debris cloud color is normally gray or black. It can take on other colors depending on what it picks up. Keeping Safe From Tornado Debris The majority of tornado injuries and deaths occur not because of storm winds, but because of debris. In fact, the three main tornado safety tips—get low and cover your head, wear a helmet, wear shoes—are all meant to reduce your risk of encountering debris. Take the duck and cover position: By getting as low to the ground as you can you reduce the chance of being struck by airborne objects and debris. Covering your head with your arms or a blanket provides an extra layer of defense.Wear  a helmet: Since 2011, many people have added a bike, motorcycle, or sports helmet to their tornado preparedness kit. As bizarre as it sounds, when you consider that the single largest cause of tornado deaths is head trauma it suddenly makes good sense.  Wear  shoes:  If a tornado strikes when youre at home, youll likely be barefoot or wearing socks, which means your feet will be defenseless as you navigate your way over litter and glass after the storm. This is why its a good idea to always include a pair of lightweight portable footwear in your safety kit. By observing the takeoff and landing points of storm debris, scientists are able to learn how the debris, and therefore, the storm, traveled.   Updated by Tiffany Means

The s Guitar Hero Series And King s Candy Crush Saga

Games, in one form or another, have existed for almost as long as the human race and despite the fact that they are often reduced to being something for children they are in fact quite complex. When analysing games one must look at why they are engaging – what keeps us playing – and how they foster participation in the average user. By comparing and contrasting the characteristics of Activision’s Guitar Hero series and King’s Candy Crush Saga, it will become apparent that the former is more engaging while the latter is more effective in fostering participation in players. Before one can begin to analyse games in terms of their engagement and participation qualities, a definition of what a game is and the characteristics that make them effective must be established. Koster defines games by saying they are, ‘iconic depictions of patterns in the world†¦games are puzzles to solve’ (2004, p. 34), indicating that games are simply non-threatening representations of reality designed to teach the player skills that they will first have to discover for themselves. According to Koster the skills games intend to teach are often, ‘things that we can absorb into the unconscious as opposed to things designed to be tackled by the conscious, logical mind’ (2004, P. 76) which is something that can be seen in both Guitar Hero and Candy Crush. On the surface, Guitar Hero is a game about being a rock star and playing music, but the way the game is played aims to improve hand-eye coordination

A child called “it” Free Essays

I don’t believe that anyone could read this book and not be disturbed it. It is a poignant and heart wrenching book of one child’s great misery at the hands of his extremely â€Å"ill† mother. The types of abuse that were inflicted upon him were horrific and terrifying to read about, let alone to have suffered through. We will write a custom essay sample on A child called â€Å"it† or any similar topic only for you Order Now I had to pause several times in the reading just to take a breath and try to absorb that anyone could have endured such horrors and survived it. It often brought me to tears and shock from the sheer sadness of it. David Pelzer’s writings were clear, concise, and held back no punches. At times, I felt myself filled with rage at the injustice and cruelty this man bore as a helpless child and the incredulity that it was permitted to go unchecked for so long. It seemed so inconceivable that no one interfered or made any attempt to stop it from family to public officials. This did not happen in the Dark Ages but in the 1970’s in California and in a country which was and is supposed to be a nation of freedom and enlightenment. How could the system have so totally and miserably failed this child? The â€Å"why† of that was still a mystery to me when I had reached the conclusion of the book? The only answer I could come up with was that no one could be bothered until it just finally became so evident that it could no longer be ignored. That, in itself, is almost as dire a tragedy as the misery and pain this child had to feel and live through. First question: A discussion of how this book impacted you emotionally and cognitively. The first real reaction I had was to the way the boy felt so unworthy in the beginning chapter of the book. This is a classic sign of child abuse, where it becomes the purpose of the abuser to demean and belittle the abused until they have no self confidence left or any sense of personal dignity. A human being that believes in themselves will fight back and refuse to be submissive. The mother’s constant spew of criticism was intended for just that purpose so that David would not try to oppose her and would suffer through her abuse without fighting her. It gave her a sense of power over him, ill regardless of the fact that she was an adult and he was a child where the physical odds were against him. As each stage of the abuse became more violent and degrading as well as life threatening, my shock grew the further I read into the book. At points, it was hard to believe that a mother could be so uncaring of her child. Her coldness and lack of guilt amazed me but David’s mental and emotional fight to preserve his sanity and survival awed me more. When she broke his arm was horrible but to make him suffer through the night just so she pass it off as a fall off a top bunk and therefore, in her mind, take away any risk that she might be held accountable for it, impressed upon me just what a callous coward she was. Yet that incident seemed to pale in the mockery of the stabbing where she simply bound his wounds and let him heal at home without any medical help. She knew if she took him to the hospital that there would questions and reactions and she would come under suspicion but in truth, the saddest and most despicable action came from his father when David turned to him for help and the man simply told him to go back and finish the dishes before the mother noticed. He let his child stand there and bleed on the carpet and did nothing. Why? Because he was afraid of his wife and her mouth! He put his comfort over the safety of his child and that is unbelievable that any loving parent would do that! I could better understand David’s siblings’ withdrawal out of fear of the mother but the father and the grandmother, both adults, failing to act in David’s defense was almost beyond comprehension. The malicious way that the mother taught her youngest son to view his older brother was feasible because a child, especially a very young one, reacts to the way they are taught. He was blameless in a way and more so than David’s older brothers. It brought forth the question to my mind as to why â€Å"just David† and not the other boys? Why were they allowed to eat and have privileges and David wasn’t? What was it about David that made his mother single him out as the one to be despised and abused? These were questions that the book never quite answered in my opinion. Of course, the book was written from the first person point of view, which of David and in only being a child, how would he know what caused his mother to turn on him and treat him so abominably? Second question: A discussion of the instances of where people could have stopped the maltreatment but did not. This question goes back to the instance of the father in particular. He was the only other adult in the house and it should have fallen on him to stop the abuse when it first began. Despite the fact that his wife hid the abuse from him in the beginning and made David never reveal it to his father, how could he have not noticed? With the mother denying the child food, the boy would have grown thinner and wan with an unusual lack of energy or vibrancy normal to a child David’s age. The father would have also had to see how the child clung to him when he was home. Then as time progressed and the father did openly admit to what was happening, why did he not stop it? If he had been a truly loving and caring parent, he would have taken immediate action to stop it, no matter how much he cared about his wife. He simply did not want to â€Å"rock the boat†, to use an old adage. He chose to ignore the situation and pretend that it was not happening. David was alone in a world that he was too small to be able to defend himself in. How to cite A child called â€Å"it†, Papers

Android Security VS Iphone Security

Question: Discuss about theAndroid Security VS Iphone Security. Answer: Introduction Recently, the world has seen the emergence of mobile computing whose sophistication has never been witnessed before. Most of the mobile phone makers have been making leaps and bounds in order to be ahead of their competitors in providing mobile phones and solutions geared towards fast adoption by customers. These mobile devices are highly technologically advanced that many of the functions performed on a computer can also be done on a mobile phone while still maintaining the same great user experience (Chittoria and Aggarwal, 2014:1). In the present market, the most renowned mobile devices are those running on Android operating system belonging to Google and those running on iOS belonging to Apple. Mobile applications have become integral and ubiquitous to our lives and therefore they have attracted the interest of unethical/criminal hackers who are interested in stealing information they come across in these mobile devices and their applications (Kaspersky Lab United States, 2016). Google and Apple have taken huge strides in creating various measures to ensure secure usage of mobile devices. This research report emphasizes on security of the mobile applications that run on the aforementioned operating systems. Security should always be considered in all phases of a mobile application life cycle which include stages such as development, publishing, installation and execution/usage of the application. It should start from the very first point of developing the application to the last stage which is execution. After execution, security must be checked at all times. Security Consideration Overview This report is subdivided into four parts which further elaborate on the security aspects in Android and iPhone. They are: Security at the time of developing the application. Security when publishing the application to the online stores of Android and iPhone. Security at the time of installation especially the features in both mobile operating systems. Security at the time of execution of the application on a users mobile phone Smart mobile devices are characterized by the capability to execute numerous and synchronized applications supporting diverse degrees of portability and modification and by supporting alternating distant service access and working according to limited resource constrictions (Susanto et al., 2016). This comes at a cost since security will have to be considered in the whole cycle of app execution, failure to which would see the application exposing its user to security attacks. Security at the Time of Developing the Application In an ideal world, it would be every application developers dream to create a bug free application with perfectly secure data storage and transmission (Das, Goswami and Bhunia, 2016: 1). Since there is nothing as a perfect application, bugs are bound to exist, with majority of them emerging at the time of application design and development due to a mistake or two, done by the software engineer or the individual responsible for developing an application. Consequences of these bugs include compromising of user data and sometimes injection of applications that execute illegal processes such as key logging. To achieve security in Android, the developer is responsible for isolating an application from other resources belonging to the system through a technique called sandboxing. A sandbox is firmly restricted environment where applications and programs can be executed. Sandboxes control what block or pieces of application code can do, thereby giving them as many permissions as they require without including extra permissions which could be misused (Howtogeek.com, 2016). Sandboxing in Android is usually controlled by each application. The application usually requires permission and approval in order for a continued access to resources the application needs. This improves and tightens security since each application has its own listing/directory and permissions per each active application (Holla and Katti, 2016:489). In iPhones iOS, sandboxing comprises of a set of fine-grained restrictions that bound the application access to the file system, network as well as the hardware of the device. It contains an extremely robust sandbox in which applications use the same sandbox with a higher protection and less access by other applications (Tabini, 2014). IPhone is more secure compared to android. This is because; iPhone permits access to the system file in the root and not phone settings. Android depends more on the user since the user usually is required to modify or set security for every application at the time of its installation. In android, storage can be built in or external which doesnt have permissions by default except for reading. Therefore, all applications are able to read data from the external storage automatically. An application may end up accessing unwanted code within the external storage thereby spreading viruses and malware. In iOS, the device doesnt have an external storage or memory and only contains fixed internal or built in storage. For an application to be accessed or manipulated, it must get permission from the data through the DPA (Data Protection APIs) that are inbuilt into the IOS core. This is then joined to a complex entry code that increases security of data in the operating system (Sheldon, 2013). Security when Publishing the Application to the Online Stores of Android and iPhone After the application have been completely developed and tested, it is now ready to be distributed to users. This is called publishing. This is popularly done through application stores hosted by Google for android or Apple for iOS with respect to which operating system an application have been built to run on. Application store for android is called Google Play and that for iOS, is called Apple store. To publish applications to the Google play store, the creator or developer is required to have access to the Googles Developer Console which is a set of tools which permit the developer in publishing and monitoring their applications (Play.google.com, 2016). However, Google play store is not the only place that one can place their application for download. A user can decide to install an application which has been emailed or downloaded from a website just by making modifications to a security setting that permits installation of android applications from unknown sources. This fails to provide security verification and in the process exposing a mobile phone to malware (Chittoria and Aggarwal, 2014:1). In iOS, the Xcode which is an integrated development environment (IDE) uses a signing identity mechanism in order to sign up an application when it is undergoing the build process. The signing identity usually has got a public and a private key paired together. The private key is used by cryptographic functions to fire up the signing of identity process while the public key helps to recognize the developer as the rightful owner of the both keys. Therefore, a developer can acquire developer certificates for purposes of public distribution and distribution certificates in order to submit to the Apple application store. This ensures that the operating system does not allow installation of applications from unauthorized sources. Security at the time of installation especially the features in both mobile operating systems The android operating system normally contains permissions for individual applications which are also the same for the iPhone operating system. In the android operating system, a list of permissions and resources required by the application in order to execute are displayed. During installation, the user usually selects a list of permissions he or she would like to be associated with a particular application. Permissions include read phone identity and state, internet access, automatically start or boot etc. however, a user only has two options; give all the permissions required by an application or simply not carry out the installation of the application. Again, it is up to the installers decision to consider the permissions while doing installation and allow them or deny them and abandon installation. Unfortunately, majority of users do not put into consideration these permissions and this is a form of security breach since some permissions may be harmful in the long run. IPhone has a different approach to application permissions during installation. No application permissions are asked during installation. Unlike in android where one has to give all permissions to be able to install or deny them and fail to install, iOS for iPhone only permits the most basic permissions to be authorized by the user. Therefore, at the time of installation, only the application is installed without any permissions having been granted. These permissions are authorized when a user is executing an application and it requires a certain resource to properly function. For example, after installing Google maps and not using it, there is zero permission associated with it. However, any attempt to use its mapping features throws a prompt to the user asking for permission to use the current location of the users device. This is more secure compared to android since one can deny this permission and then continue using the application in other manner with respect to its specificat ions. This shows that android is highly exposed to security breaches since one cannot make specific choices on permissions to allow or deny. Its either you allow all or deny all (Savvy Apps, 2016). Security at the Time of Execution of the Application on a users Mobile Phone It has been discussed above that iPhone requires app permissions during execution while android requires them during installation. For the iPhone, an application will execute only when permissions are authorized. This is because when an application execute, it requests for access to the necessary resources in order for it to give output to the user. The operating system prompts the user with the help of a dialog box whether they permit the application to use the resource it is demanding. IPhone also offers runtime security through a process referred to as code signing. This process prevents an unauthorized application from running on the mobile phone. In an android application, it is the responsibility of the developer to build and test the security of an application while it is executing. This is by following android best practices which include ensuring that the application is not performing insecure creation of files, listening to communications such as SMSes, improper storage of user and device data etc (developer.android.com, 2016). Root kits are more common in android than iPhone. These are malwares aimed at giving criminal hackers administrative access to a mobile phone (Schultz, 2008). Types of root kits include user mode root kits and kernel mode root kits. A hacker most coveted prize in the mobile sector is gaining root access to a mobile device. Root access is the process of having control of various android subsystems. If a mobile phone gets infected with a root kit, the owner of the root kit has all the permission to do what he wants in the mobile such as turning off safety features, install and deploy applications they want and even listening for communications and stealing data (Kassner, 2008). Conclusion In the table below, we provide a comparison of security for the applications in iPhone and Android based on the phase in which an application is currently in. Application phase Android IPhone During development Sandboxing in Android is usually controlled by each application. The application usually requires permission and approval in order for a continued access to resources the application needs. In iPhones iOS, sandboxing comprises of a set of fine-grained restrictions that bound the application access to the file system, network as well as the hardware of the device. This improves and tightens security since each application has its own listing/directory and permissions per each active application It contains an extremely robust sandbox in which applications use the same sandbox with a higher protection and less access by other applications During publishing The creator or developer is required to have access to the Googles Developer Console which is a set of tools which permit the developer in publishing and monitoring their applications. The Xcode which is an integrated development environment (IDE) uses a signing identity mechanism in order to sign up an application when it is undergoing the build process. The signing identity usually has got a public and a private key paired together. The private key is used by cryptographic functions to fire up the signing of identity process while the public key helps to recognize the developer as the rightful owner of the both keys. During installation List of permissions and resources required by the application in order to execute are displayed. During installation, the user usually selects a list of permissions he or she would like to be associated with a particular application. At the time of installation, only the application is installed without any permissions having been granted. These permissions are authorized when a user is executing an application and it requires a certain resource to properly function. During execution It is the responsibility of the developer to build and test the security of an application while it is executing. This is by following android best practices which include ensuring that the application is not performing insecure creation of files, listening to communications such as SMSes, improper storage of user and device data etc An application will execute only when permissions are authorized. This is because when an application execute, it requests for access to the necessary resources in order for it to give output to the user. The operating system prompts the user with the help of a dialog box whether they permit the application to use the resource it is demanding. It is every individuals responsibility, whether a user or a developer to ensure security of a device is maintained at all times failure to which both stand to lose. References Casteel, K., Derby, O. and Wilson, D. (2012). Exploiting common Intent vulnerabilities in Android applications. [online] Available at: https://css.csail.mit.edu/6.858/2012/projects/ocderby-dennisw-kcasteel.pdf [Accessed 22 Oct. 2016]. 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